Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information

Segment Information

Note 12. Segment Information

        The company has three reportable segments: steel operations, metals recycling and ferrous resources operations, and steel fabrication operations. These operations are described in Note 1 to the financial statements. Revenues included in the category "Other" are from subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of further processing, slitting, and sale of certain steel products and the resale of certain secondary and excess steel products. In addition, "Other" also includes certain unallocated corporate accounts, such as the company's senior secured credit facility, senior notes, convertible senior notes, certain other investments and certain profit sharing expenses.

        The company's operations are primarily organized and managed by operating segment. Operating segment performance and resource allocations are primarily based on operating results before income taxes. The accounting policies of the reportable segments are consistent with those described in Note 1 to the financial statements. Intra-segment sales and any related profits are eliminated in consolidation.

        The company's segment results for the years ended December 31, are as follows (in thousands):

For the Year Ended December 31, 2011	Steel Operations		Metals Recycling / Ferrous Resources			Steel Fabrication Operations			Other			Eliminations			Consolidated
Net Sales
External	$	4,676,898	$	2,473,511		$	275,783		$	92,856		$	—		$	7,519,048
External Non-U.S.		182,319		295,552			—			581			—			478,452
Other segments		211,089		1,383,505			625			11,711			(1,606,930	)		—
		5,070,306		4,152,568			276,408			105,148			(1,606,930	)		7,997,500
Operating income (loss)		658,120		26,597			(6,584	)		(95,141)	(1)		1,828	(2)		584,820
Income (loss) before income taxes		574,108		(16,706	)		(13,573	)		(121,233	)		1,723			424,319
Depreciation and amortization		108,477		101,893			6,751			5,690			(204	)		222,607
Capital expenditures		43,998		103,142			2,205			17,662			—			167,007
As of December 31, 2011
Assets		2,598,767		2,561,722			227,663			789,322	(3)		(198,248)	(4)		5,979,226
Liabilities		495,425		528,629			13,768			2,759,894	(5)		(189,084)	(6)		3,608,632

Footnotes related to the twelve months ended December 31, 2011 segment results (in millions):

(1)	Corporate SG&A	$	(46.7	)	(2)	Gross profit increase from intra-company sales	$	1.8
	Company-wide stock option expense		(14.8	)
	Profit sharing		(35.1	)
	Other, net		1.5
		$	(95.1	)
(3)	Cash and equivalents	$	314.9		(4)	Elimination of intra-company receivables	$	(36.1	)
	Investments in short-term commercial paper		84.8			Elimination of intra-company debt		(152.8	)
	Income taxes receivable		16.7			Other		(9.3	)
	Deferred income taxes		25.3				$	(198.2	)
	Property, plant and equipment, net		85.7
	Debt issuance costs		23.9
	Intra-company debt		152.8
	Other		85.2
		$	789.3
(5)	Accounts payable	$	28.7		(6)	Elimination of intra-company payables	$	(36.1	)
	Income taxes payable		11.1			Elimination of intra-company debt		(152.8	)
	Accrued interest		33.7			Other		(0.2	)
	Accrued profit sharing		35.8				$	(189.1	)
	Debt		2,341.9
	Deferred income taxes		217.6
	Other		91.1
		$	2,759.9

For the Year Ended December 31, 2010	Steel Operations		Metals Recycling / Ferrous Resources			Steel Fabrication Operations			Other			Eliminations			Consolidated
Net Sales
External	$	3,726,869	$	1,966,518		$	177,055		$	77,742		$	—		$	5,948,184
External Non-U.S.		103,061		248,870			—			772			—			352,703
Other segments		169,709		963,644			323			9,841			(1,143,517	)		—
		3,999,639		3,179,032			177,378			88,355			(1,143,517	)		6,300,887
Operating income (loss)		439,795		19,686			(25,056	)		(66,189	)(1)		(3,483	)(2)		364,753
Income (loss) before income taxes		363,352		(26,988	)		(30,539	)		(88,007	)		(4,359	)		213,459
Depreciation and amortization		112,471		102,027			5,894			4,493			(187	)		224,698
Capital expenditures		51,695		55,982			492			28,857			(3,632	)		133,394
As of December 31, 2010
Assets(7)		2,551,885		2,464,835			206,810			562,961	(3)		(196,557	)(4)		5,589,934
Liabilities(7)		422,764		444,170			18,361			2,746,798	(5)		(173,289	)(6)		3,458,804

Footnotes related to the twelve months ended December 31, 2010 segment results (in millions):

(1)	Corporate SG&A	$	(31.6	)	(2)	Gross profit reduction from intra-company sales	$	(3.5	)
	Company-wide stock option expense		(12.5	)
	Profit sharing		(21.1	)
	Other, net		(1.0	)
		$	(66.2	)
(3)	Cash and equivalents	$	175.3		(4)	Elimination of intra-company receivables	$	(36.0	)
	Income taxes receivable		37.3			Elimination of intra-company debt		(134.8	)
	Deferred income taxes		20.7			Other		(25.8	)
	Property, plant and equipment, net		70.7				$	(196.6	)
	Debt issuance costs		23.3
	Intra-company debt		134.8
	Other		100.9
		$	563.0
(5)	Accounts payable	$	32.5		(6)	Elimination of intra-company payables	$	(36.0	)
	Income taxes payable		5.2			Elimination of intra-company debt		(134.8	)
	Accrued interest		33.7			Other		(2.5	)
	Accrued profit sharing		21.5				$	(173.3	)
	Debt		2,341.0
	Deferred income taxes		242.7
	Other		70.2
		$	2,746.8

(7)

Certain segment deferred tax asset and liability accounts have been reclassified at December 31, 2010, to conform to the December 31, 2011 presentation. These reclassifications had no impact to the previously reported segment income statement information or consolidated income statements as previously reported, nor did they impact previously reported consolidated total assets or liabilities.

For the Year Ended December 31, 2009	Steel Operations		Metals Recycling / Ferrous Resources			Steel Fabrication Operations			Other			Eliminations			Consolidated
Net Sales
External	$	2,443,709	$	1,121,803		$	156,499		$	50,937		$	—		$	3,772,948
External Non-U.S.		67,394		118,351			—			113			—			185,858
Other segments		95,866		441,979			1,509			5,796			(545,150	)		—
		2,606,969		1,682,133			158,008			56,846			(545,150	)		3,958,806
Operating income (loss)		196,225		(4,709	)		(6,356	)		(45,356	)(1)		(20,273	)(2)		119,531
Income (loss) before income taxes		127,701		(42,360	)		(11,861	)		(68,793	)		(22,924	)		(18,237	)
Depreciation and amortization		104,184		105,627			6,060			5,555			—			221,426
Capital expenditures		68,968		251,695			(473	)		12,443			(2,581	)		330,052
As of December 31, 2009
Assets(7)		2,373,700		2,318,827			169,416			469,389	(3)		(201,460	)(4)		5,129,872
Liabilities(7)		330,949		453,225			25,208			2,514,423	(5)		(197,198	)(6)		3,126,607

Footnotes related to the twelve months ended December 31, 2009 segment results (in millions):

(1)	Corporate SG&A	$	(26.5	)	(2)	Gross profit reduction from intra-company sales	$	(20.3	)
	Company-wide stock option expense		(13.2	)
	Profit Sharing		(2.2	)
	Other, net		(3.5	)
		$	(45.4	)
(3)	Income taxes receivable	$	137.0		(4)	Elimination of intra-company receivables	$	(27.0	)
	Deferred income taxes		21.5			Elimination of intra-company debt		(174.9	)
	Property, plant and equipments, net		44.5			Other		0.4
	Debt issuance costs		24.0				$	(201.5	)
	Intra-company debt receivable		174.9
	Other		67.5
		$	469.4
(5)	Accounts payable	$	37.8		(6)	Elimination of intra-company payables	$	(27.0	)
	Income taxes payable		5.7			Elimination of intra-company debt		(174.9	)
	Accrued interest		27.3			Other		4.7
	Accrued profit sharing		2.3				$	(197.2	)
	Debt		2,158.2
	Deferred income taxes		220.9
	Other		62.2
		$	2,514.4

(7)

Certain segment deferred tax asset and liability accounts have been reclassified at December 31, 2009, to conform to the December 31, 2011 presentation. These reclassifications had no impact to the previously reported segment income statement information or consolidated income statements as previously reported, nor did they impact previously reported consolidated total assets or liabilities.