Segment Information

3 Months Ended

Mar. 31, 2013

Segment Information

Segment Information

Note 9.  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 facilities, senior notes and 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 and intra-company sales and any related profits are eliminated in consolidation. Refer to the company’s Annual Report on Form 10-K for the year ended December 31, 2012, for more information related to the company’s segment reporting. The company’s segment results for the three-month periods ended March 31, 2013 and 2012 are as follows (in thousands):

For the three months ended			Metals Recycling /			Steel Fabrication
March 31, 2013	Steel Operations		Ferrous Resources			Operations			Other			Eliminations		Consolidated
Net Sales
External	$	1,011,195	$	557,611		$	93,797		$	19,371				$	1,681,974
External Non-U.S.	50,117		63,517			—			88					113,722
Other segments	61,048		276,364			578			5,395			(343,385	)	—
	1,122,360		897,492			94,375			24,854			(343,385	)	1,795,696
Operating income (loss)	119,301		(9,824		)	1,530			(16,439		)(1)	1,664	(2)	96,232
Income (loss) before income taxes	105,007		(17,854		)	(76		)	(26,092		)	1,664		62,649
Depreciation and amortization	26,387		27,136			2,057			1,532			(51	)	57,061
Capital expenditures	24,726		19,069			881			670			—		45,346
As of March 31, 2013
Assets	2,566,642		2,529,951			254,176			822,064		(3)	(216,259	)(4)	5,956,574
Liabilities	557,404		526,457			15,646			2,556,590		(5)	(205,527	)(6)	3,450,570

Footnotes related to the three months ended March 31, 2013 segment results (in millions):

(1) Corporate SG&A	$	(8.0	)	(2) Gross profit increase from intra-company sales	$	1.7
Company-wide equity-based compensation	(3.2		)
Profit sharing	(5.9		)
Other, net	0.7
Total	$	(16.4	)
(3) Cash and equivalents	$	445.8		(4) Elimination of intra-company receivables	$	(49.4	)
Deferred income taxes	23.5			Elimination of intra-company debt	(156.0		)
Property, plant and equipment, net	74.8			Other	(10.9		)
Debt issuance costs, net	31.3			Total	$	(216.3	)
Intra-company debt	156.0
Other	90.7
Total	$	822.1
(5) Accounts payable	$	38.8		(6) Elimination of intra-company payables	$	(49.7	)
Income taxes payable	13.4			Elimination of intra-company debt	(156.0		)
Accrued interest	19.1			Other	0.2
Debt	2,247.1			Total	$	(205.5	)
Deferred income taxes	213.8
Other	24.4
Total	$	2,556.6

For the three months ended March 31, 2012	Steel Operations		Metals Recycling / Ferrous Resources			Steel Fabrication Operations			Other			Eliminations			Consolidated
Net Sales
External	$	1,135,912	$	634,134		$	74,892		$	20,732		$	—		$	1,865,670
External Non-U.S.	50,808		65,466			—			96			—			116,370
Other segments	47,759		411,520			4			3,262			(462,545		)	—
	1,234,479		1,111,120			74,896			24,090			(462,545		)	1,982,040
Operating income (loss)	137,308		4,163			(2,668		)	(16,862		)(1)	(2,125		)(2)	119,816
Income (loss) before income taxes	119,078		(4,273		)	(4,184		)	(40,040		)	(2,125		)	68,456
Depreciation and amortization	26,084		26,074			1,848			1,617			(51		)	55,572
Capital expenditures	5,948		37,906			1,168			533			—			45,555
As of March 31, 2012
Assets	2,677,623		2,610,476			231,284			712,673		(3)	(188,429		)(4)	6,043,627
Liabilities	494,177		574,598			14,542			2,732,432		(5)	(178,607		)(6)	3,637,142

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

(1) Corporate SG&A	$	(7.6	)	(2) Gross profit reduction from intra-company sales	$	(2.1	)
Company-wide equity-based compensation\	(3.7		)
Profit sharing	(6.5		)
Other, net	0.9
	$	(16.9	)
(3) Cash and equivalents	$	278.2		(4) Elimination of intra-company receivables	$	(27.9	)
Investments in short-term commercial paper	65.0			Elimination of intra-company debt	(149.6		)
Deferred income taxes	26.1			Other	(10.9		)
Property, plant and equipment, net	84.6				$	(188.4	)
Debt issuance costs, net	24.0
Intra-company debt	149.6
Other	85.2
	$	712.7
(5) Accounts payable	$	29.2		(6) Elimination of intra-company payables	$	(27.9	)
Income taxes payable	14.6			Elimination of intra-company debt	(149.6		)
Accrued interest	54.5			Other	(1.1		)
Debt	2,333.6				$	(178.6	)
Deferred income taxes	213.1
Other	87.4
	$	2,732.4