Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2011

5. Goodwill and Intangible Assets

The changes in the carrying amounts of goodwill by segment for the years ended December 31, 2011 and 2010 are as follows:


	As of December 31, 2010			Acquisitions/ Purchase Accounting Adjustments		Realization of Tax Benefits/Other			As of December 31, 2011
Plates and Shapes
Gross Goodwill and Carrying Amount of Goodwill	$	14.9		$	—	$	(0.4	)	$	14.5

Flat Rolled and Non-Ferrous
Gross Goodwill and Carrying Amount of Goodwill		24.4			8.3		—			32.7

Building Products
Gross Goodwill and Carrying Amount of Goodwill		2.2			—		—			2.2

Corporate
Gross Goodwill		10.0			—		(2.4	)		7.6
Impairments		(4.2	)		—		—			(4.2	)

Carrying Amount of Goodwill		5.8			—		(2.4	)		3.4

Consolidated Total
Gross Goodwill		51.5			8.3		(2.8	)		57.0
Impairments		(4.2	)		—		—			(4.2	)

Carrying Amount of Goodwill	$	47.3		$	8.3	$	(2.8	)	$	52.8


	As of December 31, 2009			Acquisitions/ Purchase Accounting Adjustments		Realization of Tax Benefits/Other			As of December 31, 2010
Plates and Shapes
Gross Goodwill and Carrying Amount of Goodwill	$	15.2		$	—	$	(0.3	)	$	14.9

Flat Rolled and Non-Ferrous
Gross Goodwill and Carrying Amount of Goodwill		20.5			3.9		—			24.4

Building Products
Gross Goodwill and Carrying Amount of Goodwill		2.1			—		0.1			2.2

Corporate
Gross Goodwill		12.0			—		(2.0	)		10.0
Impairments		(4.2	)		—		—			(4.2	)

Carrying Amount of Goodwill		7.8			—		(2.0	)		5.8

Consolidated Total
Gross Goodwill		49.8			3.9		(2.2	)		51.5
Impairments		(4.2	)		—		—			(4.2	)

Carrying Amount of Goodwill	$	45.6		$	3.9	$	(2.2	)	$	47.3

Additions to goodwill recorded at the Flat Rolled and Non-Ferrous segment for the year ended December 31, 2011 are attributable to the Trident acquisition, which closed on March 11, 2011, discussed in Note 2. Other changes in goodwill for the year ended December 31, 2011, are primarily attributable to accounting for tax benefits associated with tax-deductible goodwill recognized in connection with the Merger and the acquisition of Port City Metals Services (“Port City”), which were taxable business combinations.

Changes in goodwill for the year ended December 31, 2010 are primarily related to our acquisitions of J. Rubin and ORMS, which added $3.5 and $0.4 of goodwill, respectively, to our Flat Rolled and Non-Ferrous segment (see Note 2). Other changes in goodwill for the year ended December 31, 2010, are primarily attributable to accounting for tax benefits associated with tax-deductible goodwill recognized in connection with the Merger and the acquisition of Port City, which were taxable business combinations. Changes in goodwill allocated to the Building Products Group are attributable to the effect of foreign currency.

We test for goodwill impairment annually at the reporting unit level using a fair value approach. No impairments were recognized for the years ended December 31, 2011, 2010 or 2009.

The carrying amounts of the Company’s intangible assets are as follows:


	December 31,
	2011			2010
Customer lists	$	61.7		$	42.7
Effect of foreign currency		—			0.1
Less: Accumulated amortization		(41.4	)		(38.8	)

	$	20.3		$	4.0

Trade names	$	6.6		$	3.3
Less: Accumulated amortization		(1.1	)		(0.7	)

	$	5.5		$	2.6

Fulfillment contract	$	0.8		$	0.8
Less: Accumulated amortization		—			—

	$	0.8		$	0.8

During the year ended December 31, 2011, we acquired $19.0 of customer list intangible assets and $3.3 of trade name intangible assets as a result of the Trident acquisition discussed in Note 2.

During the year ended December 31, 2010, we acquired $2.0 of customer list intangible assets as a result of the J. Rubin acquisition discussed in Note 2. We became a party to a fulfillment contract in connection with our acquisition of ORMS on December 31, 2010 (also discussed in Note 2), the value of which was estimated at $0.8.

No significant residual value is estimated for our intangible assets. Aggregate amortization of intangible assets for the years ended December 31, 2011, 2010 and 2009 was $3.0, $3.8 and $5.2, respectively.

Remaining aggregate amortization of our intangible assets is as follows:


For the Year Ending December 31,	Estimated Amortization Expense
2012	$	3.6
2013	$	3.5
2014	$	3.3
2015	$	3.0
2016	$	2.6
Thereafter	$	10.6

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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