Note 6 - Goodwill:

6 Months Ended

Jun. 30, 2012

(6) Goodwill:

The carrying amount of goodwill, by reportable segment, is as follows:

	June 30, 2012		December 31, 2011
(in thousands)
Flat products	$	7,083	$	7,083
Tubular and pipe products		40,287		40,171
Total	$	47,370	$	47,254

The goodwill of $47.4 million is not deductible for income tax purposes. The goodwill represents the excess of cost over the fair value of net tangible and intangible assets acquired. The Company paid for goodwill in conjunction with the acquisitions, as they enhance the Company’s commercial opportunities by adding new product offerings to an expanded customer base and by increasing the Company’s distribution footprint.

In accordance with the Accounting Standards Codification, on an annual basis, an impairment test of goodwill is performed in the fourth quarter, or more frequently if changes in circumstances or the occurrence of events indicate potential impairment. Events or changes in circumstances that could trigger an impairment review include significant nonperformance relative to the expected historical or projected future operating results, significant changes in the manner of the use of the acquired assets or the strategy for the overall business or significant negative industry or economic trends.

Due to the Company’s book value exceeding the Company’s market capitalization a triggering event review of potential goodwill impairment was performed in the second quarter as of June 1, 2012. For the goodwill related to the tubular and pipe products segment a qualitative assessment was performed. For the Company’s reportable units within the flat products segment, a discounted cash flow analysis was performed, which contains significant unobservable inputs, based upon average earnings before interest, taxes, depreciation and amortization and cash flow multiples. In all cases, the fair values of the entities were substantially in excess of the carrying values of the entities and there were no indications of impairment.