Segment And Related Information

12 Months Ended

Dec. 31, 2011

Segment And Related Information [Abstract]

Segment And Related Information

Note 14: Segment and Related Information

The Company is comprised of two reportable business segments. The Bridgeville, North Jackson and Titusville facilities have been aggregated into one reportable segment, Universal Stainless & Alloy Products ("USAP"). Dunkirk Specialty Steel represents the second reportable segment. The USAP manufacturing process involves melting, remelting, heat treating, forging and hot and cold rolling of semi-finished and finished specialty steels. Dunkirk Specialty Steel's manufacturing process involves hot rolling, heat treating and finishing of specialty steel bar, rod and wire products.

Management is currently evaluating the impact of the North Jackson Facility acquisition on the Company's externally reported segments in accordance with ASC Topic 280, "Segment Reporting". From the North Jackson acquisition date through December 31, 2011, the Company has included the results of North Jackson in the USAP segment. The North Jackson operating segment was included in the USAP reporting segment as a result of North Jackson having consistent characteristics as identified in ASC Topic 280 with the USAP segment. The USAP segment also includes acquisition related costs.

The accounting policies of both reportable segments are the same as those described in Note 1: Significant Accounting Policies. Sales between the segments are generally made at market-related prices.

The segment data is as follows:

For the years ended December 31,	2011			2010			2009
(dollars in thousands)
Net sales
Universal Stainless & Alloy Products	$	225,333		$	173,294		$	108,319
Dunkirk Specialty Steel		97,378			56,600			37,245
Intersegment		(70,115	)		(40,471	)		(20,657	)
Consolidated net sales	$	252,596		$	189,423		$	124,907
Operating income (loss)
Universal Stainless & Alloy Products	$	20,176		$	17,311		$	(2,396	)
Dunkirk Specialty Steel		10,277			4,296			(2,261	)
Intersegment		(766	)		(1,184	)		-
Consolidated operating income (loss)	$	29,687		$	20,423		$	(4,657	)
Interest expense and other financing costs
Universal Stainless & Alloy Products (A)	$	1,406		$	412		$	30
Dunkirk Specialty Steel		15			40			59
Consolidated interest expense and other financing costs	$	1,421		$	452		$	89
Other income, net
Universal Stainless & Alloy Products	$	68		$	40		$	62
Dunkirk Specialty Steel (B)		144			52			633
Consolidated other income, net	$	212		$	92		$	695
Depreciation and amortization (C)
Universal Stainless & Alloy Products	$	5,738		$	4,210		$	3,555
Dunkirk Specialty Steel		1,274			1,162			1,187
Corporate		106			97			93
Consolidated depreciation and amortization	$	7,118		$	5,469		$	4,835
Capital expenditures (D)
Universal Stainless & Alloy Products	$	22,455		$	6,831		$	11,496
Dunkirk Specialty Steel		1,829			425			874
Corporate		196			225			24
Consolidated capital expenditures	$	24,480		$	7,481		$	12,394

(A) Includes amortization of deferred financing costs of $153,000, $17,000, and $24,000 for the years ended December 31, 2011, 2010 and 2009, respectively.

(B) Includes net receipt of import duties of $115,000, $32,000 and $551,000 for the years ended December 31, 2011, 2010 and 2009, respectively.

(C) These amounts include depreciation on property, plant and equipment and amortization on the non-compete agreement.

(D) These amounts include capital expenditures included in current liabilities of $7.7 million, $578,000 and $1.0 million for the years ended December 31, 2011, 2010 and 2009, respectively.

The following table presents total assets by segment:

December 31,	2011			2010
(dollars in thousands)
Universal Stainless & Alloy Products (A)	$	271,107		$	128,174
Dunkirk Specialty Steel		55,820			42,199
Corporate (B), (C)		149,101			42,804
Intersegment eliminations (C)		(114,356	)		(2,576	)
Total assets	$	361,672		$	210,601

(A) December 31, 2011 includes $115.9 million of assets acquired as a result of the North Jackson Facility acquisition.

(B) Includes cash of $0.3 million and $34.4 million, respectively.

(C) Includes investments in consolidated subsidiaries of $112.5 million and $1.5 million, respectively.

The following table presents net sales by product line:

For the years ended December 31,	2011		2010		2009
(dollars in thousands)
Stainless steel	$	202,000	$	142,302	$	98,069
Tool steel		21,963		26,196		9,413
High-strength low alloy steel		17,532		10,310		9,235
High-temperature alloy steel		6,809		5,853		5,567
Conversion services		3,905		2,719		1,203
Other		387		2,043		1,420
Total net sales	$	252,596	$	189,423	$	124,907

The Company derived 4%, 5% and 10% of its net sales from markets outside of the United States for the years ended December 31, 2011, 2010 and 2009. The Company has no assets located outside the United States.