Segment Information

12 Months Ended

Dec. 31, 2012

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, 2012	Steel Operations		Metals Recycling / Ferrous Resources			Steel Fabrication Operations			Other			Eliminations			Consolidated
Net Sales
External	$	4,294,437	$	2,116,537		$	371,084		$	69,307		$	—		$	6,851,365
External Non-U.S.		212,351		226,061			—			457			—			438,869
Other segments		194,320		1,269,198			322			17,698			(1,481,538	)		—
		4,701,108		3,611,796			371,406			87,462			(1,481,538	)		7,290,234
Operating income (loss)		495,640		(36,508	)		2,114			(66,829)	(1)		(3,252)	(2)		391,165
Income (loss) before income taxes		425,509		(70,433	)		(4,580	)		(143,178	)		(3,252	)		204,066
Depreciation and amortization		104,222		103,993			8,025			9,180			(204	)		225,216
Capital expenditures		55,786		159,768			5,735			2,236			—			223,525
As of December 31, 2012
Assets		2,485,235		2,568,233			242,747			714,069	(3)		(194,868)	(4)		5,815,416
Liabilities		525,351		484,017			15,983			2,497,750	(5)		(184,341)	(6)		3,338,760

Footnotes related to the twelve months ended December 31, 2012 segment results (in millions):

(1)	Corporate SG&A	$	(32.3	)	(2)	Gross profit decrease from intra-company sales	$	(3.3	)
	Company-wide equity- based compensation		(8.3	)
	Profit sharing		(20.5	)
	Other, net		(5.7	)
		$	(66.8	)
(3)	Cash and equivalents	$	327.1		(4)	Elimination of intra-company receivables	$	(41.4	)
	Investments in short-term commercial paper		31.5			Elimination of intra-company debt		(141.1	)
	Income taxes receivable		0.9			Other		(12.4	)
	Deferred income taxes		23.4				$	(194.9	)
	Property, plant and equipment, net		75.5
	Debt issuance costs		27.9
	Intra-company debt		141.1
	Other		86.7
		$	714.1
(5)	Accounts payable	$	32.2		(6)	Elimination of intra-company payables	$	(41.7	)
	Income taxes payable		17.1			Elimination of intra-company debt		(141.1	)
	Accrued interest		35.1			Other		(1.5	)
	Accrued profit sharing		20.7				$	(184.3	)
	Debt		2,152.2
	Deferred income taxes		218.2
	Other		22.3
		$	2,497.8

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		2,551,885		2,464,835			206,810			562,961	(3)		(196,557)	(4)		5,589,934
Liabilities		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