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Segment Reporting
 9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting
The Company distributes and performs processing on both metals and plastics. Although the distribution processes are similar, the customer markets, supplier bases and types of products are different. Additionally, the Company’s Chief Executive Officer, the chief operating decision-maker, reviews and manages these two businesses separately. As such, these businesses are considered reportable segments and are reported accordingly.
In its Metals segment, the Company’s marketing strategy focuses on distributing highly engineered specialty grades and alloys of metals as well as providing specialized processing services designed to meet very precise specifications. Core products include alloy, aluminum, stainless, nickel, titanium and carbon. Inventories of these products assume many forms such as plate, sheet, extrusions, round bar, hexagon bar, square and flat bar, tubing and coil. Depending on the size of the facility and the nature of the markets it serves, service centers are equipped as needed with bar saws, plate saws, oxygen and plasma arc flame cutting machinery, trepanning machinery, boring machinery, honing equipment, water-jet cutting, stress relieving and annealing furnaces, surface grinding equipment and sheet shearing equipment. This segment also performs various specialized fabrications for its customers through pre-qualified subcontractors that thermally process, turn, polish and straighten alloy and carbon bar.
The Company’s Plastics segment consists exclusively of a wholly-owned subsidiary that operates as Total Plastics, Inc. (“TPI”) headquartered in Kalamazoo, Michigan, and its wholly-owned subsidiaries. The Plastics segment stocks and distributes a wide variety of plastics in forms that include plate, rod, tube, clear sheet, tape, gaskets and fittings. Processing activities within this segment include cut-to-length, cut-to-shape, bending and forming according to customer specifications. The Plastics segment’s diverse customer base consists of companies in the retail (point-of-purchase), automotive, marine, office furniture and fixtures, safety products, life sciences applications, and general manufacturing industries. TPI has locations throughout the upper Northeast and Midwest regions of the U.S. and one facility in Florida from which it services a wide variety of users of industrial plastics.
The accounting policies of all segments are the same as described in Note 1, “Basis of Presentation and Significant Accounting Policies” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Management evaluates the performance of its business segments based on operating income (loss).
Segment information for the three months ended September 30, 2015 and 2014 is as follows:
 
Net
Sales
 
Operating
(Loss) Income
 
Capital
Expenditures
 
Depreciation &
Amortization
2015
 
 
 
 
 
 
 
Metals segment
$
150,571

 
$
(11,972
)
 
$
1,976

 
$
5,666

Plastics segment
34,105

 
1,934

 
122

 
328

Other (a)
—

 
(2,043
)
 
—

 
—

Consolidated
$
184,676

 
$
(12,081
)
 
$
2,098

 
$
5,994

2014
 
 
 
 
 
 
 
Metals segment
$
210,682

 
$
319

 
$
4,220

 
$
5,988

Plastics segment
34,787

 
1,667

 
206

 
411

Other (a)
—

 
(1,811
)
 
—

 
—

Consolidated
$
245,469

 
$
175

 
$
4,426

 
$
6,399

(a) “Other” – Operating loss includes the costs of executive, legal and elements of the finance departments which are shared by both the Metals and Plastics segments.
Segment information for the nine months ended September 30, 2015 and 2014 is as follows:
 
Net
Sales
 
Operating
(Loss) Income
 
Capital
Expenditures
 
Depreciation &
Amortization
2015
 
 
 
 
 
 
 
Metals segment
$
505,439

 
$
(64,972
)
 
$
4,526

 
$
17,447

Plastics segment
101,168

 
4,912

 
867

 
1,214

Other (a)
—

 
(8,885
)
 
—

 
—

Consolidated
$
606,607

 
$
(68,945
)
 
$
5,393

 
$
18,661

2014
 
 
 
 
 
 
 
Metals segment
$
643,840

 
$
(76,068
)
 
$
7,957

 
$
18,147

Plastics segment
104,531

 
4,841

 
768

 
1,242

Other (a)
—

 
(7,811
)
 
—

 
—

Consolidated
$
748,371

 
$
(79,038
)
 
$
8,725

 
$
19,389


(a) “Other” – Operating loss includes the costs of executive, legal and elements of the finance departments which are shared by both the Metals and Plastics segments.
Below are reconciliations of segment data to consolidated loss before income taxes for the three and nine months ended September 30, 2015 and 2014:
 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2015
 
2014
 
2015
 
2014
Operating income (loss)
$
(12,081
)
 
$
175

 
$
(68,945
)
 
$
(79,038
)
Interest expense, net
(10,506
)
 
(10,148
)
 
(31,426
)
 
(29,988
)
Other expense, net
(2,270
)
 
(2,335
)
 
(4,532
)
 
(1,427
)
Loss before income taxes and equity in earnings (losses) of joint venture
(24,857
)
 
(12,308
)
 
(104,903
)
 
(110,453
)
Equity in earnings (losses) of joint venture
(1,460
)
 
2,213

 
(134
)
 
5,914

Consolidated loss before income taxes
$
(26,317
)
 
$
(10,095
)
 
$
(105,037
)
 
$
(104,539
)

Segment information for total assets is as follows:
 
September 30,
2015
 
December 31,
2014
Metals segment
$
420,714

 
$
489,563

Plastics segment
59,253

 
60,970

Other (a)
36,995

 
37,443

Consolidated
$
516,962

 
$
587,976

(a) “Other” — Total assets consist of the Company's investment in joint venture.