Income Taxes

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The interim income tax provision is determined by estimating the effective income tax rate expected to be applicable for the full year. The effective income tax rate is dependent upon several factors, such as tax rates in state and foreign jurisdictions, the relative amount of income earned in such jurisdictions and the expected change in valuation allowance on deferred tax assets. In determining the full year estimate, the Company has estimated the full-year effect of the change in valuation allowances required based on the current year income (loss) projection and the change in value of the identified tax-planning strategy, which is determined based on the full-year estimate of LIFO income or expense. Included in income tax provision (benefit) is a non-cash charge of $1.1 for the three months ended March 31, 2013, for the change in the valuation allowance on the Company’s deferred tax assets.

In the first quarter of 2013, SunCoke Energy, Inc. (“SunCoke”) completed an initial public offering of an affiliate, SunCoke Energy Partners, L.P., a master limited partnership. As a result of a change in the legal structure of the SunCoke entities that own Middletown Coke Company, LLC (“SunCoke Middletown”) made in connection with the offering, income taxes are no longer allocated to net income attributable to SunCoke Middletown beginning in the first quarter of 2013. Thus, effective January 1, 2013 the Company’s income tax provision (benefit) no longer includes the effect of that allocation. However, for the three months ended March 31, 2012, the consolidated income tax provision (benefit) included $3.0 associated with SunCoke Middletown. Neither the former tax allocation nor the January 1, 2013 change eliminating that allocation had any effect on the net income (loss) attributable to AK Steel Holding Corporation in any period.