Segment and Related Information

12 Months Ended

Dec. 31, 2011

13. Segment and Related Information

We follow the provisions of ASC Topic 280 “Segment Reporting,” which requires the utilization of a “management approach” to define and report the financial results of operating segments. The management approach defines operating segments along the lines used by the Company’s chief operating decision maker (“CODM”) to assess performance and make operating and resource allocation decisions. Our CODM evaluates performance and allocates resources based primarily on operating income (loss). The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in Note 1.

Our operating segments are based on internal management reporting, which disaggregates business units by product group and geographic region. Certain geographic regions and product groups with similar economic and other basic characteristics are aggregated for reporting purposes. Our operating segments are organized into three product group reportable segments. Each segment is described as follows:

•

Plates and Shapes consists of operating facilities that maintain an inventory focusing on carbon products such as structural plate, beams, bars and tubing. This segment provides processing services such as cutting, cambering/leveling, punching, bending, shearing, cut-to-length, blast and paint, and tee-splitting.

•

Flat Rolled and Non-Ferrous consists of operating facilities that maintain an inventory of cold rolled, coated, and hot rolled steel products and various non-ferrous flat rolled products including aluminum, stainless steel, copper and brass. This segment provides processing services such as slitting, precision blanking, leveling, cut-to-length, punching, and shearing.

•

Building Products consists of manufacturing plant locations and sales centers that produce and distribute aluminum and steel building products consisting of covered canopies and walkways, awnings, sunrooms, solariums and other products primarily for the commercial and residential building products industries.

The following tables summarize financial information regarding segments:


	Plates and Shapes			Flat Rolled and Non-Ferrous		Building Products			Corporate and Other			Total
Year Ended December 31, 2011:
Net sales	$	765.9		$	1,046.7	$	85.8		$	(12.5	)	$	1,885.9
Operating income (loss)		83.0			78.1		(0.7	)		(25.1	)		135.3
Capital expenditures		6.4			10.5		4.6			0.3			21.8
Depreciation and amortization(1)		9.6			10.9		2.2			0.6			23.3
Year Ended December 31, 2010:
Net sales	$	538.0		$	680.5	$	83.0		$	(9.4	)	$	1,292.1
Operating income (loss)		38.4			45.3		(0.6	)		(22.8	)		60.3
Capital expenditures		2.3			0.7		—			1.0			4.0
Depreciation and amortization(1)		9.2			7.0		2.4			1.2			19.8
Year Ended December 31, 2009:
Net sales	$	523.0		$	490.7	$	93.2		$	(8.2	)	$	1,098.7
Operating income (loss)		(14.8	)		16.5		(3.9	)		(19.9	)		(22.1	)
Capital expenditures		3.3			0.5		—			0.3			4.1
Depreciation and amortization(1)		9.8			6.9		2.8			1.7			21.2

(1)	Includes depreciation expense reflected in cost of goods sold for the Building Products Group.


	December 31,
	2011		2010
Total Assets:
Plates and Shapes	$	357.1	$	328.1
Flat Rolled and Non-Ferrous		550.5		329.8
Building Products		39.5		38.7
Corporate and Other		31.5		47.5

Consolidated	$	978.6	$	744.1

The amounts shown as an operating loss under the column heading “Corporate and Other” consist primarily of general and administrative costs that are not allocated to the segments. The reconciliation of operating income (loss) to income (loss) before income taxes is shown within the Consolidated Statements of Operations and therefore is not separately presented.

For the year ended December 31, 2011, J. Rubin, ORMS and Trident contributed a combined $194.7 and $13.1 of incremental net sales and operating income, respectively, versus the same period of 2010.

During the year ended December 31, 2011, our Building Products Segment recorded a gain of approximately $0.7 resulting from a settlement with the previous owners of the Dura-Loc (now Allmet) roofing business we acquired in 2006 to cover pre-acquisition warranty claims.

We were not required to recognize any inventory lower of cost or market adjustments during 2011 or 2010. We recorded write-downs of $43.9 and $9.5 in our Plates and Shapes Group and Flat Rolled and Non-ferrous Groups, respectively, for inventory lower of cost or market adjustments during 2009.

Our areas of operations are solely in the U.S. and Canada. No domestic or foreign geographic area is significant to the consolidated operations. Export sales were $15.3, $13.6, and $16.6 for the years ended December 31, 2011, 2010 and 2009, respectively.

We have a broad customer base within the U.S. with no single customer being significant to consolidated operations. For the years ended December 31, 2011, 2010, and 2009, sales to any one customer did not exceed 10% of consolidated net sales. The Company had no material long-lived assets in its Canadian operations at December 31, 2011 and 2010.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

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