Transactions with Affiliated Companies

12 Months Ended

Dec. 31, 2011

Transactions with Affiliated Companies

Transactions with Affiliated Companies

Note 9. Transactions with Affiliated Companies

        The company sells flat rolled products and occasionally purchases ferrous materials from Heidtman. The president and chief executive officer of Heidtman is a member of the company's board of directors and a stockholder of the company. Transactions with Heidtman for the years ended December 31, are as follows (in thousands):

	2011			2010			2009
Sales	$	242,300		$	202,897		$	132,272
Percentage of consolidated net sales		3	%		3	%		3	%
Accounts receivable		35,646			31,544			26,983
Purchases		18,998			18,275			11,864
Accounts payable		882			969			468

        On September 15, 2009, the company purchased from Heidtman a 32 acre tract of land adjacent to the company's Flat Roll Division in Butler, Indiana, together with a 387,000 square foot building for a purchase price of $9.3 million. Contemporaneously the company purchased from Heidtman equipment located at this site for a purchase price of $18.6 million. Immediately following the acquisition of this property, the company leased the real estate and equipment to Heidtman for a term of five years commencing on September 15, 2009, and terminating on August 31, 2014. Heidtman pays the company a monthly rental for the real estate and for the equipment. The real estate and equipment have been used, and will continue to be used, by Heidtman in its steel processing operations.

        The company also purchases and sells recycled and scrap metal with other smaller affiliated companies. These transactions are as follows (in thousands):

	2011		2010		2009
Sales	$	36,486	$	37,057	$	16,156
Accounts receivable		7,247		6,577		3,573
Purchases		239,395		177,166		81,926
Accounts payable		5,702		12,601		6,297