Segments

6 Months Ended

Aug. 31, 2013

Segments

(13) Segments. MSC operates in one segment based on how the Chief Operating Decision Maker views its business for evaluating performance and making operating decisions. The Company provides material-based solutions for acoustical and coated applications. The acoustical material-based solutions include multilayer composites consisting of metals, polymers, rubber and other coated materials used to manage noise and vibration. The coated metal material-based solutions include painted, electrogalvanized (“EG”), rubber and film coatings that provide protective, decorative and functional performance. The coatings are applied to coiled metal of various widths and thicknesses. MSC’s material-based solutions are designed to meet specific customer requirements for the transportation, appliance, building products, lighting and electronics markets. Some customers purchase products from several different product categories.

We use a significant level of shared assets, and share resources for sales, general and administrative expense, and management across each of our product categories. Capital projects—whether for cost savings or generating incremental revenue—are evaluated individually based on estimated economic returns (e.g., net present value, return on investment), not based on related product line or geographic location. We use a centralized functional management structure, and share administration and production resources, to deliver individual products that, together, provide solutions to our customers.

	Three Months Ended August 31,										Six Months Ended August 31,
	2013					2012					2013					2012
($ in thousands)	$		%			$		%			$		%			$		%
Acoustical		17,942		65			19,360		65			36,363		65			39,283		61
Coated		9,611		35			10,567		35			19,910		35			25,478		39
Total Net Sales	$	27,553		100	%	$	29,927		100	%	$	56,273		100	%	$	64,761		100	%

Net sales of our domestic and foreign units are presented in the table below. No one foreign country comprised greater than 10% of consolidated net sales for any period presented.

($ in thousands)	Three Months Ended August 31,				Six Months Ended August 31,
	2013		2012		2013		2012
Domestic Net Sales	$	23,073	$	26,228	$	47,107	$	56,752
Foreign Net Sales		4,480		3,699		9,166		8,009
Total Net Sales	$	27,553	$	29,927	$	56,273	$	64,761