SEGMENT REPORTING

9 Months Ended

Sep. 30, 2012

SEGMENT REPORTING

Note 13—SEGMENT REPORTING:

The Company has three reportable segments: the Titanium Group, the Fabrication Group, and the Distribution Group. Both the Fabrication Group and the Distribution Group utilize the Titanium Group as their primary source of titanium mill products. Intersegment sales are accounted for at prices that are generally established by reference to similar transactions with unaffiliated customers. Reportable segments are measured based on segment operating income after an allocation of certain corporate items such as general corporate overhead and expenses. Assets of general corporate activities include unallocated cash and deferred taxes.

A summary of financial information by reportable segment is as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Net sales:
Titanium Group	$	42,806		$	45,028		$	120,034		$	116,983
Intersegment sales		42,968			42,709			141,340			114,677
Total Titanium Group sales		85,774			87,737			261,374			231,660
Fabrication Group		87,931			40,220			234,002			110,474
Intersegment sales		20,144			13,916			62,539			42,470
Total Fabrication Group sales		108,075			54,136			296,541			152,944
Distribution Group		58,338			58,423			188,166			160,277
Intersegment sales		972			255			2,704			1,056
Total Distribution Group sales		59,310			58,678			190,870			161,333
Eliminations		64,084			56,880			206,583			158,203
Total consolidated net sales	$	189,075		$	143,671		$	542,202		$	387,734
Operating income (loss):
Titanium Group before corporate allocations	$	4,632		$	7,366		$	25,057		$	30,475
Corporate allocations		(2,669	)		(2,428	)		(9,111	)		(7,616	)
Total Titanium Group operating income		1,963			4,938			15,946			22,859
Fabrication Group before corporate allocations		9,696			1,647			18,988			1,841
Corporate allocations		(3,619	)		(3,146	)		(10,543	)		(9,870	)
Total Fabrication Group operating income (loss)		6,077			(1,499	)		8,445			(8,029	)
Distribution Group before corporate allocations		6,645			6,139			19,441			14,273
Corporate allocations		(1,801	)		(1,885	)		(5,996	)		(5,913	)
Total Distribution Group operating income		4,844			4,254			13,445			8,360
Total consolidated operating income	$	12,884		$	7,693		$	37,836		$	23,190

	September 30, 2012		December 31, 2011
Total assets:
Titanium Group	$	380,761	$	356,391
Fabrication Group		570,294		290,935
Distribution Group		182,021		170,584
General corporate assets		71,392		309,365
Total consolidated assets	$	1,204,468	$	1,127,275