Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 17, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | STEEL DYNAMICS INC | ||
Entity Central Index Key | 1,022,671 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 4,117,734,350 | ||
Entity Common Stock, Shares Outstanding | 243,186,659 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and equivalents | $ 727,032 | $ 361,363 |
Accounts receivable, net of related allowances of $9,765 and $12,646 as of December 31, 2015, and 2014, respectively | 579,333 | 859,835 |
Accounts receivable related parties | 34,272 | 42,990 |
Inventories | 1,149,390 | 1,618,419 |
Other current assets | 47,914 | 55,655 |
Total current assets | 2,537,941 | 2,938,262 |
Property, plant and equipment, net | 2,951,210 | 3,123,906 |
Restricted cash | 19,565 | 19,312 |
Intangible assets, net of accumulated amortization of $265,940 and $241,731 as of December 31, 2015, and 2014, respectively | 278,960 | 370,669 |
Goodwill | 397,470 | 745,158 |
Other assets | 16,936 | 35,852 |
Total assets | 6,202,082 | 7,233,159 |
Current liabilities | ||
Accounts payable | 276,725 | 489,791 |
Accounts payable-related parties | 6,630 | 21,265 |
Income taxes payable | 2,023 | 6,086 |
Accrued payroll and benefits | 94,906 | 128,968 |
Accrued interest | 38,502 | 50,405 |
Accrued expenses | 99,824 | 107,607 |
Current maturities of long-term debt | 16,680 | 46,460 |
Total current liabilities | 535,290 | 850,582 |
Long-term debt | 2,577,976 | 2,935,389 |
Deferred income taxes | 400,770 | 506,482 |
Other liabilities | $ 16,595 | $ 18,839 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | $ 126,340 | $ 126,340 |
Equity | ||
Common stock voting, $.0025 par value; 900,000,000 shares authorized; 262,937,139 and 261,420,126 shares issued; and 243,089,514 and 241,449,423 shares outstanding, as of December 31, 2015, and 2014, respectively | 638 | 635 |
Treasury stock, at cost; 19,847,625 and 19,970,703 shares, as of December 31, 2015, and 2014, respectively | (396,455) | (398,898) |
Additional paid-in capital | 1,110,253 | 1,083,435 |
Retained earnings | 1,965,291 | 2,227,843 |
Total Steel Dynamics, Inc. equity | 2,679,727 | 2,913,015 |
Noncontrolling interests | (134,616) | (117,488) |
Total equity | 2,545,111 | 2,795,527 |
Total liabilities and equity | $ 6,202,082 | $ 7,233,159 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, related allowances (in dollars) | $ 9,765 | $ 12,646 |
Intangible assets, accumulated amortization (in dollars) | $ 265,940 | $ 241,731 |
Common stock voting, par value (in dollars per share) | $ 0.0025 | $ 0.0025 |
Common stock voting, shares authorized (in shares) | 900,000,000 | 900,000,000 |
Common stock voting, shares issued (in shares) | 262,937,139 | 261,420,126 |
Common stock voting, shares outstanding (in shares) | 243,089,514 | 241,449,423 |
Treasury stock, shares (in shares) | 19,847,625 | 19,970,703 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales | |||
Unrelated parties | $ 7,407,233 | $ 8,481,567 | $ 7,087,101 |
Related parties | 187,178 | 274,385 | 285,823 |
Total net sales | 7,594,411 | 8,755,952 | 7,372,924 |
Costs of goods sold | 6,862,693 | 7,789,741 | 6,653,780 |
Gross profit | 731,718 | 966,211 | 719,144 |
Selling, general and administrative expenses | 327,626 | 316,214 | 272,777 |
Profit sharing | 23,064 | 42,126 | 27,764 |
Amortization of intangible assets | 25,312 | 27,551 | 31,770 |
Impairment charges | 428,500 | 260,000 | 308 |
Operating income (loss) | (72,784) | 320,320 | 386,525 |
Interest expense, net of capitalized interest | 153,950 | 137,263 | 127,728 |
Other (income) expense, net | 15,383 | 18,254 | (4,033) |
Income (loss) before income taxes | (242,117) | 164,803 | 262,830 |
Income tax expense (benefit) | (96,947) | 73,153 | 99,314 |
Net income (loss) | (145,170) | 91,650 | 163,516 |
Net loss attributable to noncontrolling interests | 14,859 | 65,374 | 25,798 |
Net income (loss) attributable to Steel Dynamics, Inc. | $ (130,311) | $ 157,024 | $ 189,314 |
Basic earnings (loss) per share attributable to Steel Dynamics, Inc. stockholders (in dollars per share) | $ (0.54) | $ 0.68 | $ 0.86 |
Weighted average common shares outstanding - basic (in shares) | 242,017 | 232,547 | 220,916 |
Diluted earnings (loss) per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share) | $ (0.54) | $ 0.67 | $ 0.83 |
Weighted average common shares and share equivalents outstanding (in shares) | 242,017 | 242,078 | 238,996 |
Dividends declared per share (in dollars per share) | $ 0.55 | $ 0.46 | $ 0.44 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Noncontrolling Interests | Redeemable Noncontrolling Interest | Total |
Balances at Dec. 31, 2012 | $ 637 | $ (720,479) | $ 1,037,687 | $ 2,087,620 | $ (27,623) | $ 98,814 | $ 2,377,842 |
Balances (in shares) at Dec. 31, 2012 | 219,523,000 | ||||||
Balances (in shares) at Dec. 31, 2012 | 36,070,000 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Proceeds from exercise of stock options, including related tax effect (in shares) | 3,132,000 | ||||||
Proceeds from exercise of stock options, including related tax effect | $ 8 | $ (160) | 37,660 | 37,508 | |||
Dividends declared | (97,375) | (97,375) | |||||
Conversion of 5.125% convertible senior notes | 4 | 4 | |||||
Acquisition of noncontrolling interest | (2,232) | 2,232 | |||||
Contributions from noncontrolling investors | 160 | 17,700 | 160 | ||||
Distributions to noncontrolling investors | (439) | (439) | |||||
Equity-based compensation | $ 2,106 | 12,579 | (46) | 14,639 | |||
Equity-based compensation (in shares) | 212,000 | (97,000) | |||||
Comprehensive income and net income (loss) | 189,314 | (25,798) | 163,516 | ||||
Balances at Dec. 31, 2013 | $ 645 | $ (718,529) | 1,085,694 | 2,179,513 | (51,468) | 116,514 | 2,495,855 |
Balances (in shares) at Dec. 31, 2013 | 222,867,000 | ||||||
Balances (in shares) at Dec. 31, 2013 | 35,973,000 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Proceeds from exercise of stock options, including related tax effect (in shares) | 1,770,000 | 8,000 | |||||
Proceeds from exercise of stock options, including related tax effect | $ 5 | $ (164) | 32,466 | 32,307 | |||
Dividends declared | (108,630) | (108,630) | |||||
Conversion of 5.125% convertible senior notes | $ 317,451 | (45,650) | 271,801 | ||||
Conversion of 5.125% convertible senior notes (in shares) | 15,893,000 | (15,893,000) | |||||
Contributions from noncontrolling investors | 97 | 9,826 | 97 | ||||
Distributions to noncontrolling investors | (743) | (743) | |||||
Equity-based compensation | $ (15) | $ 2,344 | 10,925 | (64) | 13,190 | ||
Equity-based compensation (in shares) | 919,000 | (117,000) | |||||
Comprehensive income and net income (loss) | 157,024 | (65,374) | 91,650 | ||||
Balances at Dec. 31, 2014 | $ 635 | $ (398,898) | 1,083,435 | 2,227,843 | (117,488) | 126,340 | $ 2,795,527 |
Balances (in shares) at Dec. 31, 2014 | 241,449,000 | 241,449,423 | |||||
Balances (in shares) at Dec. 31, 2014 | 19,971,000 | 19,970,703 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Proceeds from exercise of stock options, including related tax effect (in shares) | 737,000 | 10,000 | |||||
Proceeds from exercise of stock options, including related tax effect | $ 1 | $ (211) | 10,975 | $ 10,765 | |||
Dividends declared | (133,227) | (133,227) | |||||
Dissolution of noncontrolling interest | 1,082 | (1,082) | |||||
Distributions to noncontrolling investors | (1,187) | (1,187) | |||||
Equity-based compensation | $ 2 | $ 2,654 | 15,843 | (96) | 18,403 | ||
Equity-based compensation (in shares) | 904,000 | (133,000) | |||||
Comprehensive income and net income (loss) | (130,311) | (14,859) | (145,170) | ||||
Balances at Dec. 31, 2015 | $ 638 | $ (396,455) | $ 1,110,253 | $ 1,965,291 | $ (134,616) | $ 126,340 | $ 2,545,111 |
Balances (in shares) at Dec. 31, 2015 | 243,090,000 | 243,089,514 | |||||
Balances (in shares) at Dec. 31, 2015 | 19,848,000 | 19,847,625 |
CONSOLIDATED STATEMENTS OF EQU6
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 15, 2014 | Jun. 12, 2014 | Dec. 31, 2013 |
5.125% convertible senior notes | |||||
Stated interest rate (as a percent) | 5.125% | 5.125% | 5.125% | 5.125% | 5.125% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income (loss) | $ (145,170) | $ 91,650 | $ 163,516 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 294,595 | 263,325 | 230,928 |
Impairment charges | 428,500 | 260,000 | 308 |
Equity-based compensation | 22,604 | 14,016 | 15,504 |
Deferred income taxes | (99,323) | (25,042) | 30,737 |
Loss on disposal of assets | 9,763 | 5,561 | 1,082 |
Changes in certain assets and liabilities: | |||
Accounts receivable | 311,302 | (2,191) | (78,237) |
Inventories | 488,003 | 68,730 | (108,025) |
Other assets | 3,284 | 3,064 | 13,705 |
Accounts payable | (227,092) | (76,141) | 40,141 |
Income taxes receivable/payable | 12,706 | (22,086) | (12,494) |
Accrued expenses | (60,689) | 36,686 | 15,010 |
Net cash provided by operating activities | 1,038,483 | 617,572 | 312,175 |
Investing activities: | |||
Purchases of property, plant and equipment | (114,501) | (111,785) | (186,843) |
Proceeds from maturities of short-term commercial paper, net | 31,520 | ||
Acquisition of business, net of cash acquired | (45,000) | (1,669,449) | |
Other investing activities | 9,874 | 33,967 | 2,478 |
Net cash used in investing activities | (149,627) | (1,747,267) | (152,845) |
Financing activities: | |||
Issuance of current and long-term debt | 207,930 | 1,822,096 | 423,965 |
Repayments of current and long-term debt | (612,534) | (635,578) | (517,978) |
Proceeds from exercise of stock options, including related tax effect | 10,781 | 32,307 | 37,508 |
Contributions from noncontrolling investors | 5,418 | 17,860 | |
Distributions to noncontrolling investors | (1,187) | (743) | (439) |
Dividends paid | (127,569) | (105,379) | (94,812) |
Debt issuance costs | (608) | (22,219) | (6,195) |
Net cash provided by (used in) financing activities | (523,187) | 1,095,902 | (140,091) |
Increase (decrease) in cash and equivalents | 365,669 | (33,793) | 19,239 |
Cash and equivalents at beginning of year | 361,363 | 395,156 | 375,917 |
Cash and equivalents at end of year | $ 727,032 | $ 361,363 | $ 395,156 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Description of the Business and Significant Accounting Policies | |
Description of the Business and Significant Accounting Policies | Note 1. Description of the Business and Summary of Significant Accounting Policies Description of the Business Steel Dynamics, Inc. (SDI), together with its subsidiaries (the company), is a domestic manufacturer of steel products and metals recycler. In the third quarter 2015, the company changed its reportable segments, consistent with how it currently manages the business, representing three reporting segments: steel operations, metals recycling operations, and steel fabrication operations. Segment information provided within this Form 10-K, including that within Note 13: Segment Information, has been adjusted for all prior periods consistent with the current reportable segment presentation. Approximately 9% of the company's workforce is represented by collective bargaining agreements, and one of these agreements affecting 117 employees at one location expires during 2016. Steel Operations Segment Steel operations include the company's Butler Flat Roll Division, Columbus Flat Roll Division—acquired September 16, 2014, The Techs galvanizing lines, Structural and Rail Division, Engineered Bar Products Division, Roanoke Bar Division, Steel of West Virginia, and with the third quarter 2015 segment changes, Iron Dynamics (IDI), a liquid pig iron (scrap substitute) production facility that supplies solely the Butler Flat Roll Division. These operations include electric arc furnace steel mills, producing steel from ferrous scrap and scrap substitutes, utilizing continuous casting, automated rolling mills, and ten downstream coating lines. Steel operations accounted for 69%, 63%, and 61% of the company's consolidated net sales during 2015, 2014, and 2013, respectively. Butler and Columbus Flat Roll Divisions sell a broad range of sheet steel products, such as hot roll, cold roll and coated steel products, including a wide variety of specialty products, such as light gauge hot roll and galvanized. Butler Flat Roll Division sells other products such as Galvalume® and painted products, while Columbus Flat Roll Division sells other products used to produce non-energy line pipe, and is currently in the construction phase of a $100 million expansion to add painted and Galvalume® capacity. The Techs is comprised of three galvanizing lines which sell specialized galvanized sheet steels used in non-automotive applications. The Structural and Rail Division sells structural steel beams and pilings to the construction market, as well as standard-grade and premium rail to the railroad industry. The Engineered Bar Products Division primarily sells engineered, special-bar-quality and merchant-bar-quality rounds, round-cornered squares, and smaller-diameter round engineered bars. The Roanoke Bar primarily sells merchant steel products, including angles, merchant rounds, flats and channels, and reinforcing bar. Steel of West Virginia primarily sells beams, channels and specialty steel sections. The company's steel operations sell directly to end users and service centers. These products are used in numerous industry sectors, including the automotive, construction, manufacturing, transportation, heavy and agriculture equipment, and pipe and tube (including OCTG) markets. Metals Recycling Operations Segment Metals recycling operations consist solely of OmniSource Corporation (OmniSource), the company's metals recycling and processing locations, and ferrous scrap procurement operations. Metals recycling operations accounted for 19%, 25 and 31% of the company's consolidated net sales during 2015, 2014, and 2013, respectively. Steel Fabrication Operations Segment Steel fabrication operations include the company's eight New Millennium Building Systems' joist and deck plants located throughout the United States and Northern Mexico. Revenues from these plants are generated from the fabrication of trusses, girders, steel joists and steel deck used within the non-residential construction industry. Steel fabrication operations accounted for 9%, 7%, and 6% of the company's consolidated net sales during 2015, 2014, and 2013, respectively. Other The "Other" category consists of subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of our Minnesota ironmaking operations and several smaller joint ventures. Also included in "Other" are certain unallocated corporate accounts, such as the company's senior secured credit facility, senior notes, certain other investments and certain profit sharing expenses. Our Minnesota ironmaking operations consists of Mesabi Nugget, (owned 82% by us); our iron concentrating and potential future iron mining operations, Mesabi Mining; and our iron tailings operation, Mining Resources (owned 81% by us). See discussion of 2014 Minnesota ironmaking operations impairment later in Note 1 under "Impairment of Long-Lived Tangible and Definite-Lived Intangible Assets." The Minnesota ironmaking operations were indefinitely idled in May 2015. Three years subsequent to Mesabi Nugget achieving certain performance measures (which as of December 31, 2015, had not been met), the noncontrolling investor may elect to require the company to purchase at par value all (but not less than all) of the units it owns at the time of such election. At any time after that same date, the company may elect to purchase at par value all of the units owned by the noncontrolling investor. The $111.2 million par value owned by the noncontrolling investor at December 31, 2015, and 2014 has been reported as redeemable noncontrolling interest in the consolidated balance sheets. On the fifth anniversary of the effective date of the formation of Mining Resources (2016), the noncontrolling investor has a non-transferable, non-assignable right to require the company to purchase at fair value all (but not less than all) of the units it owns at that time. The $15.1 million value owned by the noncontrolling investor at December 31, 2015, and 2014, has been reported as redeemable noncontrolling interest in the consolidated balance sheet. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of SDI, together with its wholly and majority-owned or controlled subsidiaries, after elimination of significant intercompany accounts and transactions. Noncontrolling interests represent the noncontrolling owner's proportionate share in the equity, income, or losses of the company's majority-owned or controlled consolidated subsidiaries. Use of Estimates These financial statements are prepared in conformity with accounting principles generally accepted in the United States, and accordingly, include amounts that require management to make estimates and assumptions that affect the amounts reported in the financial statements and in the notes thereto. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment, intangible assets, and goodwill; valuation allowances for trade receivables, inventories and deferred income tax assets; unrecognized tax benefits; potential environmental liabilities; and litigation claims and settlements. Actual results may differ from these estimates and assumptions. Revenue Recognition and Allowances for Doubtful Accounts Except for the steel fabrication operations, the company recognizes revenues from sales and the allowance for estimated returns and claims from these sales at the time the title of the product transfers, upon shipment. Provision is made for estimated product returns and customer claims based on historical experience. If the historical data used in the estimates does not reflect future returns and claims trends, additional provision may be necessary. The company's steel fabrication operations recognizes revenues from construction contracts utilizing a percentage of completion methodology based on steel tons used on completed units to date as a percentage of estimated total steel tons required for each contract. The allowance for doubtful accounts for all operating segments is based on the company's best estimate of probable credit losses, along with historical experience. Cash and Equivalents Cash and equivalents include all highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash is primarily funds held in escrow as required by various insurance and government organizations. Inventories Inventories are stated at lower of cost or market. Cost is determined using a weighted average cost method for scrap, and on a first-in, first-out, basis for other inventory. Inventory consisted of the following at December 31 (in thousands): 2015 2014 Raw materials $ $ Supplies Work in progress Finished goods ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investments The company has investments in certain joint ventures and closely-held companies in which ownership varies between 49% and 50%. For these investments where the company does not have effective control, the company accounts for the investment using the equity method of accounting. Investments in companies in which the company does not exercise control and its ownership is less than 20% are carried at cost. These investments are reflected in other long-term assets on the company's balance sheet in an amount of $6.4 million and $18.4 million at December 31, 2015, and 2014, respectively. The company's equity in the income (losses) of investments accounted for using the equity method of accounting are recorded in other (income) expenses, net, in our consolidated statements of operations. Property, Plant and Equipment Property, plant and equipment are stated at cost, which includes capitalized interest on construction-in-progress amounts, and is reduced by proceeds received from certain state and local government grants and other capital cost reimbursements. The company assigns each fixed asset a useful life ranging from 3 to 20 years for plant, machinery and equipment and 10 to 40 years for buildings and improvements. Repairs and maintenance are expensed as incurred. Depreciation is provided utilizing the straight-line depreciation methodology, or the units-of-production depreciation methodology for certain production related assets, based on units produced, subject to a minimum and maximum level. Depreciation expense was $263.2 million, $229.4 million, and $192.4 million for the years ended December 31, 2015, 2014, and 2013, respectively. The company's property, plant and equipment at December 31 consisted of the following (in thousands): 2015 2014 Land and improvements $ $ Buildings and improvements Plant, machinery and equipment Construction in progress ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intangible Assets The company's intangible assets, at December 31, consisted of the following (in thousands): 2015 2014 Useful Life Weighted Average Amortization Period Customer and scrap generator relationships $ $ 10 to 25 years 19 years Trade names Indefinite — Trade name 12 years 12 years ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 19 years Less accumulated amortization ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Refer to "Impairment of Goodwill and Indefinite-Lived Intangible Assets" below in Note 1 for discussion regarding the 2015 impairment of OmniSource trade name. The company utilizes an accelerated amortization methodology for customer and scrap generator relationships in order to follow the pattern in which the economic benefits of the amounts are anticipated to be consumed. Definite-lived trade names are amortized using a straight line methodology. Amortization of intangible assets was $25.3 million, $26.4 million, and $30.5 million for the years ended December 31, 2015, 2014, and 2013, respectively. Estimated amortization expense, related to amortizable intangibles, for the years ending December 31 is as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Impairment of Long-Lived Tangible and Definite-Lived Intangible Assets The company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be fully recoverable. Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amounts. The impairment loss is measured by comparing the fair value of the asset to its carrying amount. We consider various factors and determine whether an impairment test is necessary, including by way of examples, a significant and prolonged deterioration in operating results and/or projected cash flows, significant changes in the extent or manner in which an asset is used, technological advances with respect to assets which would potentially render them obsolete, our strategy and capital planning, and the economic climate in markets to be served. A long-lived asset is classified as held for sale upon meeting specified criteria related to ability and intent to sell. An asset classified as held for sale is measured at the lower of its carrying amount or fair value less cost to sell. As of December 31, 2015, the company reported $8.6 million of assets held for sale within other current assets in our consolidated balance sheet. An impairment loss is recognized for any initial or subsequent write-down of the asset held for sale to its fair value less cost to sell. Upon the December 31, 2015, determination and classification of these assets as held for sale, the company recorded a $10.3 million asset impairment charge in the consolidated statement of operations for the year ended December 31, 2015. The company determined fair value using Level 3 inputs as provided for under ASC 820, consisting of information provided by brokers and other external sources along with management's own assumptions. During the fourth quarter of 2014, the company's Minnesota ironmaking operations reached a steady operating state, indicating a consistency in the operations' production capability, processes and cost structure, including the ability to utilize certain lower-cost raw materials. Given this, the company undertook an assessment of the recoverability of the carrying value of its Minnesota ironmaking operations' fixed assets. With the company's outlook at the time regarding future operating costs and product pricing, the company concluded that the carrying value of these fixed assets was no longer fully recoverable, and the fixed assets were in fact impaired. This assessment resulted in a $260.0 million pretax non-cash impairment charge, including amounts attributable to noncontrolling interests of $46.5 million, which is reflected in "Other" in Note 13, Segment Information. The carrying values of the impaired assets were adjusted to their estimated fair values as determined primarily on the cost approach, as well as expected future discounted cash flows (an income approach), using Level 3 inputs as provided for under ASC 820. The Minnesota ironmaking operations were indefinitely idled in May 2015. Goodwill The company's goodwill is allocated to the following reporting units at December 31, (in thousands): 2015 2014 OmniSource—Metals Recycling Operations Segment $ $ Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division—Metals Recycling Operations Segment The Techs—Steel Operations Segment Roanoke Bar Division—Steel Operations Segment Columbus Flat Roll Division—Steel Operation Segment New Millennium Building Systems—Steel Fabrication Operations Segment ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In 2015, a $341.3 million OmniSource goodwill impairment charge was recorded pursuant to the company's annual review for impairment of goodwill and indefinite-lived intangible assets, as discussed further under "Impairment of Goodwill and Indefinite-Lived Intangible Assets" below. Cumulative OmniSource goodwill impairment charges are $341.3 million at December 31, 2015. OmniSource goodwill decreased $6.4 million in 2015, in recognition of the 2015 tax benefit related to the normal amortization of the component of OmniSource tax-deductible goodwill in excess of book goodwill. Impairment of Goodwill and Indefinite-Lived Intangible Assets At least once annually (as of October 1) or when indicators of impairment exist, the company performs an impairment test for goodwill and other indefinite-lived intangible assets. Goodwill is allocated to various reporting units, which are generally one level below the company's operating segments. The company utilizes a two-stepped approach to evaluate goodwill impairment. The first step of the test determines if there is potential goodwill impairment. In this step the company compares the fair value of the reporting unit to its carrying amount (which includes goodwill). The fair value of the reporting unit is determined by using an estimate of future cash flows utilizing a risk-adjusted discount rate to calculate the net present value of future cash flows (income approach), and by using a market approach based upon an analysis of valuation metrics of comparable peer companies, Level 3 inputs as provided for under ASC 820. If the fair value exceeds the carrying value, there is no impairment. If the carrying amount exceeds the fair value, the company performs the second step of the test, which measures the amount of impairment loss to be recorded. In the second step, the company compares the carrying amount of the goodwill to the implied fair value of the goodwill based on the net fair value of the recognized and unrecognized assets and liabilities of the reporting unit to which it is allocated. If the implied fair value is less than the carrying value, an impairment loss is recorded to the extent that the fair value of the goodwill is less than its carrying value. At least once annually (as of October 1) or when indicators of impairment exist, the company tests indefinite-lived intangible assets for impairment through the comparison of the fair value of the specific intangible asset with its carrying amount. The fair value of the intangible asset is determined by using an estimate of future cash flows attributable to the asset and a risk-adjusted discount rate to compute a net present value of future cash flows (income approach). If the fair value is less than the carrying value, an impairment loss is recorded in an amount equal to the excess in carrying value. During the company's 2015 annual goodwill and indefinite-lived intangible asset impairment analysis, we determined that the fair value of OmniSource was less than its carrying value, and upon the completion of the second step of the impairment analysis, that the goodwill and trade name indefinite-lived intangible assets were impaired. The decrease in OmniSource fair value from prior impairment analysis was due primarily to the reduction in expected future cash flows based on management's view of the weak shorter and longer-term global scrap commodity outlook. The OmniSource goodwill and trade name indefinite-lived intangible assets were written down to their respective fair values, resulting in non-cash asset impairment charges of $341.3 million and $68.5 million, respectively, that are reflected in asset impairment charges in the consolidated statement of operations for the year ended December 31, 2015, within the metals recycling operations. Equity-Based Compensation The company has several stock-based employee compensation plans which are more fully described in Note 6. Compensation expense for restricted stock units, deferred stock units, restricted stock, and performance awards is recorded over the vesting periods using the fair value as determined by the closing fair market value of the company's common stock on the grant date, and with respect to performance awards, an estimate of probability of award achievement during the performance period. Compensation expense for these stock-based employee compensation plans was $27.1 million, $22.8 million, and $15.2 million for the years ended December 31, 2015, 2014, and 2013, respectively. Income Taxes The company accounts for income taxes and the related accounts under the liability method. Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted rates expected to be in effect during the year in which the basis differences reverse. Earnings Per Share Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company's basic earnings per share. Common share equivalents represent potentially dilutive stock options, restricted stock units, deferred stock units, and in 2014 and 2013, dilutive shares related to the company's convertible subordinated debt; and are excluded from the computation in periods in which they have an anti-dilutive effect. There were 1.5 million anti-dilutive common stock equivalents as of and for the year ended December 31, 2015. There were no anti-dilutive common share equivalents at or for the year ended December 31, 2014, and 2013. The following table presents a reconciliation of the numerators and the denominators of the company's basic and diluted earnings per share computations for the years ended December 31 (in thousands, except per share data): 2015 Net Loss (Numerator) Shares (Denominator) Per Share Amount Basic earnings per share $ ) $ ) Dilutive stock options, deferred stock units, and restricted stock units — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per share $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2014 2013 Net Income (Numerator) Shares (Denominator) Per Share Amount Net Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per share $ $ $ $ Dilutive stock options, deferred stock units, and restricted stock units — — 5.125% convertible senior notes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per share $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Concentration of Credit Risk Financial instruments that potentially subject the company to significant concentrations of credit risk principally consist of temporary cash investments and accounts receivable. The company places its temporary cash investments with high credit quality financial institutions and companies, and limits the amount of credit exposure from any one entity. The company is exposed to credit risk in the event of nonpayment by customers. The company mitigates its exposure to credit risk, which it generally extends initially on an unsecured basis, by performing ongoing credit evaluations and taking further action if necessary, such as requiring letters of credit or other security interests to support the customer receivable. Management's estimation of the allowance for doubtful accounts is based upon known credit risks, historical loss experience and current economic conditions affecting the company's customers. Customer accounts receivable are charged off when all collection efforts have been exhausted and the amounts are deemed uncollectible. Heidtman Steel Products (Heidtman), a related party, accounted for 5% of the company's net accounts receivable at December 31, 2015, and 4% at December 31, 2014. Derivative Financial Instruments The company recognizes all derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. Changes in the fair value of derivatives that are designated as hedges, depending on the nature of the hedge, are recognized as either an offset against the change in fair value of the hedged balance sheet item in the case of fair value hedges or as other comprehensive income in the case of cash flow hedges, until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value is immediately recognized in earnings. The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements. In the normal course of business, the company may have involvement with derivative financial instruments related to managing fluctuations in interest rates, foreign exchange rates, and forward contracts in various commodities. At the time of acquiring these financial instruments, the company designates and assigns these instruments as hedges of specific assets, liabilities or anticipated transactions. When hedged assets or liabilities are sold or extinguished, or the anticipated transaction being hedged is no longer expected to occur, the company recognizes the gain or loss on the designated hedged financial instrument. The company routinely enters into forward contracts in various commodities, primarily nonferrous metals (specifically aluminum, copper, nickel and silver) in our metals recycling operations, to reduce exposure to commodity related price fluctuations. The company does not enter into these derivative financial instruments for speculative purposes. Recently Issued Accounting Standards In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition—Revenue from Contracts with Customers, which amends the guidance in former ASC 605, Revenue Recognition. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Because the guidance in ASC 606 is principles-based, it can be applied to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. Additionally, ASC 606 requires additional disclosures to help users of financial statements better understand the nature, amount, timing, and potential uncertainty of revenue that is recognized. This guidance is effective for annual and interim periods beginning after December 15, 2017, but can be early adopted for annual and interim periods ending after December 15, 2016. The company is currently evaluating the impact of the provisions of ASC 606, including the timing of adoption. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern), effective for annual and interim periods ending after December 15, 2016. ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. There are required disclosures if principal conditions or events are identified that raised substantial doubt about the entity's ability to continue as a going concern (before consideration of management's plans), as well as management's evaluation of the significance of those conditions or events in relation to the entity's ability to meet its obligations, and management's plans that alleviated substantial doubt about the entity's ability to continue as a going concern. This ASU is not expected to have any impact on our overall results of operations, financial position or cash flows. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which requires an entity to measure inventory at the lower of cost and net realizable value, rather than at the lower of cost or market. This new guidance is effective for interim and annual periods beginning after December 15, 2016, but can be early adopted. The company is currently evaluating the impact of this ASU's adoption. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions | |
Acquisitions | Note 2. Acquisitions Consolidated Systems, Inc. (CSi) On September 14, 2015, the company purchased from CSi certain of its steel deck facilities (including associated assets) and net working capital of approximately $30.0 million, for a purchase price of $45.0 million in cash. Operating results of these facilities have been reflected in the company's financial statements under the steel fabrication operations since the September 14, 2015, purchase date. The purchased assets include two deck facilities located in Memphis, Tennessee, and Phoenix, Arizona. Producing both standard and premium specialty deck profiles, the new locations will allow for enhanced geographic reach into the southwestern and western markets, and further diversify New Millennium Building Systems' product offerings. Severstal Columbus, LLC (Columbus Flat Roll Division) The company completed its acquisition of 100% of Columbus Flat Roll Division on September 16, 2014, for a purchase price of $1.625 billion, with additional working capital adjustments of $44.4 million. The acquisition was funded through the issuance of $1.2 billion in Senior Notes, borrowings under the company's senior secured credit facility, and available cash. The company purchased Columbus Flat Roll Division to significantly expand and diversify its steel operating base with the addition of 3.4 million tons of hot roll steel production capacity. The product offerings are diversified with respect to width, gauge, and strength when compared to the capabilities of our Butler Flat Roll Division. Located in northeast Mississippi, Columbus Flat Roll Division is one of the newest and most technologically advanced sheet steel electric arc furnace mills in North America. Additionally, Columbus Flat Roll Division is advantageously located to serve the growing markets in the southern U.S. and Mexico, providing the company with geographic diversification and growth opportunities. Unaudited Pro forma Information. Columbus Flat Roll Division's operating results have been reflected in the company's financial statements since the effective date of the acquisition, September 16, 2014, in steel operations. The following unaudited pro forma information is presented below for comparison purposes as if the Columbus Flat Roll Division acquisition was completed as of January 1, 2013, (in thousands): Years Ended December 31, 2014 2013 Net Sales $ $ Net Income attributable to Steel Dynamics, Inc. The pro forma results reflect the pre-acquisition operations of Columbus Flat Roll Division for the years ended December 31, 2014, and 2013. The information presented is for information purposes only and is not necessarily indicative of the actual results that would have occurred had the acquisition been consummated at January 1, 2013, nor are they necessarily indicative of future operating results of the combined companies under the ownership and management of the company. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt | |
Long-Term Debt | Note 3. Long-Term Debt The company's borrowings consisted of the following at December 31 (in thousands): 2015 2014 Senior term loan $ $ 6 1 / 8 % senior notes due 2019 7 5 / 8 % senior notes due 2020 — 5.125% senior notes due 2021 6 3 / 8 % senior notes due 2022 5 1 / 4 % senior notes due 2023 5.500% senior notes due 2024 Other obligations ​ ​ ​ ​ ​ ​ ​ ​ Total debt Less debt issuance costs ​ ​ ​ ​ ​ ​ ​ ​ Total amounts outstanding Less current maturities ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30)—Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented as a deduction from the corresponding debt liability, rather than as a separate asset. The company adopted ASU 2015-03 on December 31, 2015, and applied the new guidance retrospectively to all prior periods presented in the financial statements. As a result of the adoption, $42.3 million of deferred debt issuance costs were reclassified from Other Assets to Long Term Debt in our December 31, 2014, consolidated balance sheet. Financing Activity On March 16, 2015, the company called and repaid all $350.0 million of its outstanding 7 5 / 8 % Senior Notes due 2020 (the "2020 Notes") at a redemption price of 103.813% of the principal amount of the 2020 Notes, plus accrued and unpaid interest to, but not including, the date of redemption. Associated premiums and the write off of deferred financing costs of approximately $16.7 million were recorded in other expense in conjunction with the redemption. In September 2014, the company issued $700.0 million of 5.125% Senior Notes due 2021 (the "2021 Senior Notes") and $500.0 million of 5.500% Senior Notes due 2024 (the "2024 Senior Notes"), combined the "Senior Notes". The proceeds from the issuance of the Senior Notes, along with cash on hand and borrowings under the company's then existing senior secured credit facility, were used to fund the September 16, 2014, acquisition of Columbus Flat Roll Division. In June 2014, holders of $271.8 million principal amount of the company's 5.125% Convertible Senior Notes due June 15, 2014 (the "Convertible Notes"), exercised their option to convert the Convertible Notes into shares of common stock by the close of business on June 12, 2014, the conversion election deadline. The conversion rate provided under the terms of the Convertible Notes was 58.4731 shares of common stock per $1,000 principal amount of Convertible Notes, equivalent to a conversion price of approximately $17.10 per share of common stock, resulting in the company issuing a total of 15,893,457 shares of common stock from treasury shares upon conversion of the Convertible Notes. The remaining $15.7 million of the outstanding Convertible Notes was paid in cash on June 16, 2014. In March 2013, the company issued $400.0 million of 5 1 / 4 % senior notes due 2023 (the "2023 Notes"), the proceeds of which, along with available cash, was used to fund the March 2013 purchase of $301.7 million, plus accrued and unpaid interest to, but not including, the date of repurchase, of the company's 6 3 / 4 % senior notes due 2015 (the "2015 Notes") pursuant to a tender offer; and the April 2013 repayment of the remaining outstanding 2015 Notes due in the principal amount of $198.3 million plus accrued and unpaid interest to, but not including, the date of repayment. As a result of the tender offer and repurchase of the 2015 Notes, the company recorded expenses related to tender premiums, unamortized debt issuance costs write-off, and tender expenses of $2.6 million, which are reflected in other expenses in the consolidated statement of operations for the year ended December 31, 2013. Senior Secured Credit Facility, due 2019 The company's November 2014 senior secured credit Facility, which provides a $1.2 billion Revolver, matures November 2019. Subject to certain conditions, the company has the opportunity to increase the Revolver size by at least $750.0 million. The Facility is guaranteed by certain of the company's subsidiaries; and is secured by substantially all of the company's and its wholly-owned subsidiaries' receivables and inventories, and by pledges of all shares of the company's wholly-owned subsidiaries' capital stock. The Revolver is available to fund working capital, capital expenditures, and other general corporate purposes. The company also issued a $250.0 million Term Loan under the Facility which matures on November 14, 2019. The proceeds from the new Term Loan were used to refinance the Company's then existing $226.9 million term loan facility and for general corporate purposes. Quarterly principal payments under the Term Loan are required to be made in the amount of 1.25% of the original principal amount, with the unpaid principal balance of approximately $190.6 million due on the maturity date. Interest on the Term Loan is based on the Facility's pricing grid (1.90% at December 31, 2015) and is payable quarterly. The Facility pricing grid is adjusted quarterly, and is based on the company's leverage of net debt (as defined in the Facility) to last-twelve-months (LTM) EBITDA (earnings before interest, taxes, depreciation, amortization, and certain other non-cash transactions). The minimum pricing is LIBOR plus 1.00% or Prime, and the maximum pricing is LIBOR plus 2.00% or Prime plus 1.00%. In addition, the company is subject to an unused commitment fee of between 0.225% and 0.375% (based on leverage of net debt to LTM EBITDA) which is applied to the unused portion of the Revolver each quarter. The Facility contains financial covenants and other covenants pertaining to the company's ability (which may under certain circumstances be limited) to make capital expenditures; incur indebtedness; permit liens on property; enter into transactions with affiliates; make restricted payments or investments; enter into mergers, acquisitions or consolidations; conduct asset sales; pay dividends or distributions and enter into other specified transactions and activities. The company's ability to borrow funds within the terms of the Revolver is dependent upon its continued compliance with the financial and other covenants. At December 31, 2015, the company had $1.2 billion of availability on the Revolver, $12.8 million of outstanding letters of credit and other obligations which reduce availability, and there were no borrowings outstanding. The financial covenants under the company's Facility state that it must maintain an interest coverage ratio of not less than 2.50:1.00. The company's interest coverage ratio is calculated by dividing its LTM EBITDA by its LTM gross interest expense less amortization of financing fees. In addition, a net debt (as defined in the Facility) to LTM EBITDA (net debt leverage ratio) of not more than 5.00:1.00 must be maintained. If the net debt leverage ratio exceeds 3.50:1:00 at any time, the company's ability to make certain payments as defined in the Facility (which includes cash dividends to stockholders and share purchases, among other things), is limited. At December 31, 2015, the company's interest coverage ratio and net debt leverage ratio were 4.76:1.00 and 2.99:1.00, respectively. The company was therefore in compliance with these covenants at December 31, 2015, and anticipates remaining in compliance during the next twelve months. Senior Unsecured Notes We have five different tranches of senior unsecured notes (Notes) outstanding. These Notes are in equal right of payment with all existing and future senior unsecured indebtedness and are senior in right of payment to all subordinated indebtedness. These Notes contain provisions that allow the company to redeem the senior notes on or after the dates and at redemption prices (expressed as a percentage of principal amount) listed below. Additionally, these Notes generally allow the company to redeem some or all of the Notes by paying a "make-whole" premium any time prior to the dates listed below. The company may redeem up to 35% of each of the Notes at a redemption price and by the dates listed below using the proceeds from the sales of the company's common stock. See the key terms of each of the Notes outstanding below. Issue 2019 Notes 2021 Notes 2022 Notes 2023 Notes 2024 Notes Outstanding Balance $400.0 million $700.0 million $350.0 million $400.0 million $500.0 million Stated Interest Rate 6 1 / 8 % 5.125% 6 3 / 8 % 5 1 / 4 % 5.500% Semi-Annual Interest Payment Dates February 15 and August 15 April 1 and October 1 February 15 and August 15 April 15 and October 15 April 1 and October 1 Equity Redemption Option Price & Date N/A—date passed 105.125% (10/1/17) N/A—date passed 105.250% (4/15/16) 105.500% (10/1/17) "Make-whole" Option Date 8/15/16 10/1/17 8/15/17 4/15/18 10/1/19 First Call Price & Date 103.063% (8/15/16) 102.563% (10/1/17) 103.188% (8/15/17) 102.625% (4/15/18) 102.750% (10/1/19) Second Call Price & Date 101.531% (8/15/17) 101.281% (10/1/18) 102.125% (8/15/18) 101.750% (4/15/19) 101.833% (10/1/20) Third Call Price & Date 100.000% (8/15/18) 100.000% (10/1/19) 101.063% (8/15/19) 100.875% (4/15/20) 100.917% (10/1/21) Fourth Call Price & Date — — 100.000% (8/15/20) 100.000% (4/15/21) 100.000% (10/1/22) Maturity Date August 15, 2019 October 1, 2021 August 15, 2022 April 15, 2023 October 1, 2024 Other Secured Obligations Minnesota Economic Development State Loans. Mesabi Nugget has loans from various Minnesota state agencies related to the construction and ultimate operation of Mesabi Nugget. These loans require monthly principal and interest payments, at a 3.5% interest rate until February 2017, and then changing to 5.0% through maturity in 2027. Amounts due under these loans were $24.0 million and $25.7 million at December 31, 2015, and 2014, respectively. Other. The company has an unsecured electricity transmission facility loan which bears interest at 8.1%, with monthly principal and interest payments required through maturity in 2022. The company has an unused $3.0 million stand-by letter of credit in conjunction with this loan. The outstanding principal balance was $4.9 million and $5.4 million as of December 31, 2015, and 2014, respectively. One of the company's controlled subsidiaries entered into a secured credit agreement in 2015 which provides a revolving variable rate credit facility of up to $40.0 million, subject to a borrowing base determined from eligible accounts receivable and inventory. Interest is payable monthly. There were no amounts outstanding under this credit facility as of December 31, 2015. One of the company's controlled subsidiaries entered into financing agreements for certain equipment which bear interest at 6.0%, with monthly principal and interest payments required through maturities in 2027 and 2028. The outstanding principal balance of these agreements was $10.1 and $10.7 million at December 31, 2015, and 2014, respectively. Outstanding Debt Maturities Maturities of outstanding debt as of December 31, 2015, are as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The company capitalizes interest on all qualifying construction-in-progress assets. For the years ended December 31, 2015, 2014, and 2013, total interest costs incurred were $154.4 million, $139.7 million, and $132.3 million, respectively, of which $457,000, $2.5 million and $4.6 million, respectively, were capitalized. Cash paid for interest was $160.2 million, $114.3 million, and $129.5 million for the years ended December 31, 2015, 2014, and 2013, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Income Taxes | Note 4. Income Taxes The company files a consolidated federal income tax return. Net cash paid (refunded) for taxes was $(9.9) million, $120.5 million and $72.4 million for the years ended December 31, 2015, 2014, and 2013, respectively. The current and deferred federal and state income tax expense (benefit) for the years ended December 31 is as follows (in thousands): 2015 2014 2013 Current income tax expense $ $ $ Deferred income tax expense (benefit) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total income tax expense (benefit) $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ A reconciliation of the statutory tax rates to the actual effective tax rates for the years ended December 31, are as follows: 2015 2014 2013 Statutory federal tax rate % % % State income taxes, net of federal benefit Domestic manufacturing deduction — ) ) Noncontrolling interests ) Federal research and development tax credits — ) ) Other permanent differences ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective tax rate % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Significant components of the company's deferred tax assets and liabilities at December 31 are as follows (in thousands): 2015 2014 Deferred tax assets Accrued expenses and allowances $ $ Inventories Net operating loss carryforwards Intangible Assets — Other ​ ​ ​ ​ ​ ​ ​ ​ Subtotal Less: valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total net deferred tax assets ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities Property, plant and equipment ) ) Intangible assets — ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax liability $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The change in intangible assets to a $28.6 million deferred tax asset at December 31, 2015, from a $108.8 million deferred tax liability at December 31, 2014, is due primarily to the $409.8 million impairment of OmniSource goodwill and trade name assets in 2015, which is not currently deductible. Certain wholly-owned and controlled subsidiaries of the company file separate federal and state income tax returns. These subsidiaries have generated federal net operating loss carryforwards of $69.7 million which expire in 2032 to 2035, and state net operating loss carryforwards which principally expire in the years 2024 to 2035. Management has considered the scheduled reversal of the deferred tax liabilities, historical taxable losses, projected taxable income and tax planning strategies in determining that it is more likely than not that some of the deferred tax assets relating to the tax loss carryforwards of the subsidiaries will not be realized. Based on these evaluations, valuation allowances of $26.8 million and $21.6 million have been recorded as of December 31, 2015, and 2014, respectively. The $5.2 million increase in valuation allowance in the year ended December 31, 2015, primarily relates to the realizability of certain state tax net operating loss carryforwards. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740), which requires an entity to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating into current and noncurrent amounts. The company adopted ASU 2015-17 on December 31, 2015, and applied the new guidance retrospectively to all prior periods presented in the financial statements. As a result of the adoption, $35.5 million was reclassified from current deferred income tax asset to noncurrent deferred income tax liability in our December 31, 2014, consolidated balance sheet. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2015 2014 2013 Balance at January 1 $ $ $ Increases related to current year tax positions — Increases related to prior year tax positions Decreases related to prior year tax positions ) ) ) Settlements with taxing authorities ) ) — Lapses in statute of limitations ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31 $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Included in the balance of unrecognized tax benefits at December 31, 2015, are potential benefits of $11.7 million that, if recognized, would affect the effective tax rate. The company recognizes interest and penalties related to its tax contingencies on a net-of-tax basis in income tax expense. During the year ended December 31, 2015, the company recognized benefits from the reduction of interest expense of $100,000, net of tax. In addition to the unrecognized tax benefits in the table above, the company had $5.2 million accrued for the payment of interest and penalties at December 31, 2015. The company files income tax returns in the U.S. federal jurisdiction as well as income tax returns in various state jurisdictions. The IRS is currently examining the company's federal income tax returns for the years 2010 and 2011. At this time the company does not believe there will be any significant examination adjustments that would result in a material change to the company's financial position, results of operations or cash flows. It is reasonably possible that the amount of unrecognized tax benefits could change in the next twelve months as a result of these federal income tax audits, and state income tax audits. Based on the current audits in process, the payment of taxes as a result of audit settlements could be in an amount from zero to $7.1 million by the end of 2016. With the exception of the 2010 federal return which is currently under examination, the company is no longer subject to federal, state and local income tax examinations by tax authorities for years ended before 2011. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Shareholders' Equity | |
Shareholders' Equity | Note 5. Shareholders' Equity Cash Dividends The company declared cash dividends of $133.2 million, or $0.55 per common share, during 2015; $108.6 million, or $0.46 per common share, during 2014; and $97.4 million, or $0.44 per common share, during 2013. The company paid cash dividends of $127.6 million, $105.4 million and $94.8 million during 2015, 2014, and 2013, respectively. Treasury Stock The company's board of directors has authorized the company to repurchase shares of the company's common stock through open market trades. The company did not repurchase any shares during the three-year period ended December 31, 2015. As of December 31, 2015, the company had remaining authorization to repurchase approximately 3.6 million additional shares. The repurchase program does not have an expiration date. |
Equity-based Incentive Plans
Equity-based Incentive Plans | 12 Months Ended |
Dec. 31, 2015 | |
Equity-based Incentive Plans | |
Equity-based Incentive Plans | Note 6. Equity-based Incentive Plans 2015 Equity Incentive Plan (2015 Plan) The 2015 Plan was designed to attract, motivate and retain qualified persons that are able to make important contributions to the company's success. To accomplish these objectives, the 2015 Plan provides for awards of equity-based incentives through granting of stock options, restricted stock units (RSUs), deferred stock units (DSUs), restricted stock awards, unrestricted stock awards, stock appreciation rights, and performance awards, such as long-term incentive compensation program (LTIP). The company's stockholders approved the 2015 Plan in May 2015, and 12.5 million shares of common stock were reserved for issuance upon exercise of options or other equity grants through December 31, 2025. The 2015 Plan replaced the 2006 Amended and Restated Equity Incentive Plan (Expired 2006 Plan) which was set to expire on December 31, 2015. The 2015 Plan remains substantially the same as the Expired 2006 Plan. No further awards can be made under the Expired 2006 Plan and any shares that do not vest or are forfeited will simply be canceled. The 2015 Plan uses a fungible share concept under which any awards that are not a full-value award, such as stock options and stock appreciation rights, will be counted against the share limit as one share for each share of common stock, and awards that are full-value awards, such as RSUs, DSUs, restricted and unrestricted stock awards, and performance awards, will be counted against the share limit as 2.09 shares for each share of common stock. At December 31, 2015, there were 9.1 million shares in the fungible share reserve still available for issuance. Substantially all of the company's employees receive RSUs, which are granted annually in November at no cost to employees, vest 100% over the shorter of two years from grant date or upon the recipient reaching retirement eligible age (59 1 / 2 years), and are issued to employees upon vesting. Prior to 2012, substantially all of the company's employees were granted stock options at an exercise price of 100% of the fair market value of the company's common stock on the date of grant, which vested 100% six months after the date of grant, with a maximum term of five years. The company satisfies RSUs and stock options with newly issued shares, and satisfies restricted stock awards, deferred stock units, and performance awards with treasury shares. In addition to the RSUs, stock options and LTIP awards granted during the three year period ended December 31, 2015, presented below, the company awarded 51,000, 54,000 and 53,000 DSUs in 2015, 2014 and 2013, respectively. Restricted Stock Units A summary of the company's RSU activity and outstanding RSUs as of December 31, 2015, are presented below (dollars in thousands except grant date fair value): Number of RSUs Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Unrecognized Compensation Outstanding RSUs as of January 1, 2013 $ $ $ Granted $ Vested ) $ Forfeited ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2013 $ $ $ Granted $ Vested ) $ Forfeited ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2014 $ $ $ Granted $ Vested ) $ Forfeited ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2015 (nonvested) $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The weighted average remaining life before vesting of the outstanding RSUs as of December 31, 2015, is 1.5 years. The fair value of RSUs vesting during 2015, 2014, and 2013 was $21.4 million, $24.6 million, and $3.3 million, respectively, and was net-share settled such that the company withheld shares with value equivalent to the employees' minimum statutory obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. The total shares withheld in 2015, 2014, and 2013 were approximately 427,000, 444,000, and 63,000 shares, respectively, and were based on the value of the RSUs on their vesting dates as determined by the company's closing stock price. Stock Options A summary of the company's stock option activity and certain information concerning the company's outstanding options as of December 31, 2015, are presented below. There were no stock options granted in 2013, 2014, or 2015. Number of Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Outstanding options as of January 1, 2013 $ $ Exercised ) $ $ Forfeited ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2013 $ $ Exercised ) $ $ Forfeited ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2014 $ $ Exercised ) $ $ Forfeited ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Range of Exercise Price Exercisable Outstanding Options Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price of Exercisable Outstanding Options $10 to $15 $ $15 to $20 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The aggregate intrinsic value of options exercised was $4.0 million, $9.3 million, and $18.7 million for the years ended December 31, 2015, 2014, and 2013, respectively. The aggregate intrinsic value of options which were outstanding and exercisable as of December 31, 2015, was $2.0 million, and there is no unrecognized stock option compensation expense at December 31, 2015. Long-Term Incentive Compensation Program (LTIP) The company maintains an LTIP performance-based program directed toward key senior executives of the company, as determined at the discretion of the Compensation Committee of the Board of Directors. Awards are in shares of the company's common stock using the stock price on the first day of the performance period to convert each key senior executive's pre-determined multiple of annual base salary. The performance period is generally three years; however, certain transition awards were issued with shorter performance periods. Performance is measured in terms of equal portions of revenue growth, operating margin, return on invested capital and return on equity of the company as compared to the same measures, similarly treated, of a pre-established group of steel sector competitors. Awards earned can range from zero to 100% of the shares awarded. Once earned on the basis of performance, one-third of the shares vest immediately, and the remaining shares vest equally over an additional two-year service-based vesting period requirement. The Compensation Committee granted the following three-year performance period awards, and one- and two-year performance period transition awards, which have been earned and have or will be issued over the vesting period as follows: Maximum Shares That Could Be Issued Award Earned Award Issued/Issuable 2013 LTIP Award: One-year performance period transition award March 2014 March 2015 March 2016 Two-year performance period transition award March 2015 March 2016 March 2017 Three-year performance period award March 2016 March 2017 March 2018 2014 LTIP Award: Three-year performance period award * * 2015 LTIP Award: Three-year performance period award * * * Not yet earned as performance period not complete. 2013 Executive Incentive Compensation Plan (Executive Plan) Pursuant to the company's existing Executive Plan, certain officers and other senior management members of the company are eligible to receive cash bonuses based on predetermined formulas. In the event the cash portion of the bonus exceeds the predetermined maximum cash payout, the excess bonus up to a fixed percentage of base salary is distributed as common stock of the company, of which one-third of the shares vest immediately and the remaining shares vest equally over an additional two-year service-based vesting period requirement. The company's stockholders approved the Executive Plan in May 2013, and 2.5 million shares of company stock were reserved for issuance through February 28, 2018. At December 31, 2015, 2.3 million shares under the Executive Plan remained available for issuance. Pursuant to the Executive Plan, no shares were awarded for the award year 2015, 221,900 shares were awarded with a market value of $3.8 million for the award year 2014, and 9,500 shares were awarded with a market value of $157,000 for the award year 2013. 2014 Employee Stock Purchase Plan The 2014 Employee Stock Purchase Plan allows eligible employees, at their election, to purchase shares of the company's stock on the open market at fair market value with a designated broker through payroll deductions. The maximum allowable payroll deduction for the plan, excluding company matching contributions, is $10,400 in any calendar year. The company provides matching contributions of 10% of employees' payroll deductions. The company's total expense for the plan was $468,000, $376,000, and $354,000 for the years ended December 31, 2015, 2014, and 2013, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 7. Derivative Financial Instruments The company is exposed to certain risks relating to its ongoing business operations. The company may utilize derivative instruments to mitigate interest rate and foreign currency exchange rate risk, and routinely enters into forward exchange traded futures and option contracts to manage the price risk associated with nonferrous metals inventory as well as purchases and sales of nonferrous metals (specifically aluminum, copper, nickel and silver). The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements. The company designates certain of its nonferrous metals forward exchange futures contracts as fair value hedges of inventory and firm sales commitments. Commodity futures contracts. If the company is "long" on futures contracts, it means the company has more futures contracts purchased than futures contracts sold for the underlying commodity. If the company is "short" on a futures contract, it means the company has more futures contracts sold than futures contracts purchased for the underlying commodity. The following summarizes the company's commodity futures contract commitments as of December 31, 2015 (MT represents metric tons and Lbs represents pounds): Commodity Long/Short Total Aluminum Long MT Aluminum Short MT Copper Long MT Copper Short MT Silver Short Lbs The following summarizes the location and amounts of the fair values reported on the company's balance sheets and gains or losses related to derivatives included in the company's consolidated statements of operations as of and for the years ended December 31 (in thousands): Asset Derivatives Liability Derivatives Fair Value Fair Value Balance sheet location December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Derivative instruments designated as fair value hedges— Commodity futures Other current assets $ $ $ $ Derivative instruments not designated as hedges— Commodity futures Other current assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total derivative instruments $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements, which total $3.4 million and $7.6 million at December 31, 2015, and 2014, respectively, are reflected in other current assets in the consolidated balance sheet. Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized in income on derivatives for the year ended December 31, 2015 Hedged items in fair value hedge relationships Location of gain recognized in income on related hedged item Amount of gain recognized in income on related hedged items for the year ended December 31, 2015 Derivatives in fair value hedging relationships— Commodity futures Costs of goods sold $ ) Firm commitments Costs of goods sold $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inventory Costs of goods sold ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives not designated as hedging instruments— Commodity futures Costs of goods sold $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of gain recognized in income on derivatives Amount of gain recognized in income on derivatives for the year ended December 31, 2014 Hedged items in fair value hedge relationships Location of gain (loss) recognized in income on related hedged item Amount of gain (loss) recognized in income on related hedged items for the year ended December 31, 2014 Derivatives in fair value hedging relationships— Commodity futures Costs of goods sold $ Firm commitments Costs of goods sold $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inventory Costs of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives not designated as hedging instruments— Commodity futures Costs of goods sold $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of gain recognized in income on derivatives Amount of gain recognized in income on derivatives for the year ended December 31, 2013 Hedged items in fair value hedge relationships Location of gain (loss) recognized in income on related hedged item Amount of gain (loss) recognized in income on related hedged items for the year ended December 31, 2013 Derivatives in fair value hedging relationships— Commodity futures Costs of goods sold $ Firm commitments Costs of goods sold $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inventory Costs of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives not designated as hedging instruments— Commodity futures Costs of goods sold $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives accounted for as fair value hedges had ineffectiveness resulting in gains of $90,000 and $206,000, and a loss of $206,000 for the years ended December 31, 2015, 2014, and 2013, respectively. A loss excluded from hedge effectiveness testing of $991,000 increased costs of goods sold, and gains excluded from hedge effectiveness testing of $649,000 and $398,000 reduced costs of goods sold for the years ended December 31, 2015, 2014, and 2013, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements | |
Fair Value Measurements | Note 8. Fair Value Measurements FASB accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. Levels within the hierarchy are defined as follows: · Level 1—Unadjusted quoted prices for identical assets and liabilities in active markets; · Level 2—Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable for the asset or liability, either directly or indirectly; and · Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The following table sets forth financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheet and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of December 31 (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 2015 Commodity futures—financial assets $ $ — $ $ — Commodity futures—financial liabilities — — 2014 Commodity futures—financial assets $ $ — $ $ — Commodity futures—financial liabilities — — The carrying amounts of financial instruments including cash and equivalents approximate fair value. The fair values of commodity futures contracts are estimated by the use of quoted market prices, estimates obtained from brokers, and other appropriate valuation techniques based on references available. The fair value of long-term debt, including current maturities, as determined by quoted market prices (Level 2), was approximately $2.7 billion and $3.1 billion (with a corresponding carrying amount in the consolidated balance sheet of $2.6 billion and $3.0 billion) at December 31, 2015, and 2014, respectively. Refer to Note 1 for discussions regarding goodwill, indefinite-lived intangible assets, long-lived assets, and investments accounted for under the equity method, which as a result of impairments, were measured at fair value in 2015. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 9. Commitments and Contingencies The company has entered into certain commitments with suppliers which are of a customary nature. Commitments have been entered into relating to future expected requirements for such commodities as electricity, natural gas and its transportation services, fuel, air products, and zinc. Certain commitments contain provisions which require that the company "take or pay" for specified quantities at fixed prices without regard to actual usage for periods of up to 24 months for physical commodity requirements, for up to 4 years for commodity transportation requirements, and for up to 13 years for air products. The company utilized such "take or pay" requirements during the past three years under these contracts, except for certain air products at our Minnesota ironmaking operations which were idled in May 2015. The company believes that production requirements will be such that consumption of the products or services purchased under these commitments will occur in the normal production process, other than certain air products related to Minnesota ironmaking operations during the idle period. The company's commitments for these agreements with "take or pay" or other similar commitment provisions for the years ending December 31, as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At December 31, 2015, the company has outstanding commitments of $69.6 million related to ongoing construction of property, plant, and equipment related primarily to steel operations. The company's commitments for operating leases are discussed in Note 12. The company is involved, along with two other remaining steel manufacturing company defendants, in a class action antitrust suit in federal court in Chicago, Illinois, originally against eight companies. The Complaint alleges a conspiracy on the part of the original defendants to fix, raise, maintain and stabilize the price at which steel products were sold in the United States during a specified period between 2005 and 2007, by artificially restricting the supply of such steel products. All but one of the Complaints were brought on behalf of a purported class consisting of all direct purchasers of steel products. The other Complaint was brought on behalf of a purported class consisting of all indirect purchasers of steel products within the same time period. In addition, another similar complaint was filed in December 2010 purporting to be on behalf of indirect purchasers of steel products in Tennessee. All Complaints have been consolidated in the Chicago action and seek treble damages and costs, including reasonable attorney fees, pre- and post-judgment interest and injunctive relief. Following an extensive period of discovery and related motions concerning class certification matters, the Court, on September 9, 2015, certified a class, limited, however, to the issue of the alleged conspiracy alone, and denied class certification on the issue of antitrust impact and damages. As a result, some additional discovery is ongoing. The company has also filed a motion for summary judgment, as has co-defendant SSAB, and this matter is currently pending. Due, however, to the uncertain nature of litigation, the company cannot presently determine the ultimate outcome of this litigation. Based on the information available at this time, the company has determined that there is not presently a "reasonable possibility" (as that term is defined in ASC 450-20-20), that the outcome of these legal proceedings would have a material impact on the Company's financial condition, results of operations, or liquidity. Although not presently necessary or appropriate to make a dollar estimate of exposure to loss, if any, in connection with the above matter, the company may in the future determine that a loss accrual is necessary. Although the company may make loss accruals, if and as warranted, any amounts that it may accrue from time to time could vary significantly from the amounts it actually pays, due to inherent uncertainties and the inherent shortcomings of the estimation process, the uncertainties involved in litigation and other factors. Additionally, an adverse result could have a material effect on the company's financial condition, results of operations and liquidity. The company is also involved in various routine litigation matters, including administrative proceedings, regulatory proceedings, governmental investigations, environmental matters, and commercial and construction contract disputes, none of which are expected to have a material impact on the company's financial condition, results of operations, or liquidity. |
Transactions with Affiliated Co
Transactions with Affiliated Companies | 12 Months Ended |
Dec. 31, 2015 | |
Transactions with Affiliated Companies | |
Transactions with Affiliated Companies | Note 10. Transactions with Affiliated Companies The company sells flat roll products to and occasionally purchases ferrous materials from Heidtman. The president and chief executive officer of Heidtman is a member of the company's board of directors and a stockholder of the company. Transactions with Heidtman for the years ended December 31, are as follows (in thousands): 2015 2014 2013 Sales $ $ $ Percentage of consolidated net sales % % % Accounts receivable Purchases Accounts payable The company also purchases and sells recycled and scrap metal with other smaller affiliated companies. These transactions are as follows (in thousands): 2015 2014 2013 Sales $ $ $ Accounts receivable Purchases Accounts payable |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
Retirement Plans | |
Retirement Plans | Note 11. Retirement Plans The company sponsors several 401(k) retirement savings and profit sharing plans (Plans) for eligible employees, which are considered "qualified plans" for federal income tax purposes. The company's total expense for the Plans was $21.0 million, $39.4 million, and $25.2 million for the years ended December 31, 2015, 2014, and 2013, respectively. The company's profit sharing component is 8% of consolidated pretax income excluding noncontrolling interests and other items. The resulting company profit sharing component was $17.7 million, $36.3 million, and $23.1 million for the years ended December 31, 2015, 2014, and 2013, respectively; of which $14.1 million, $29.0 million, and $18.5 million, respectively, was directed by the company's board of directors to be contributed to the Plans, with the remaining amounts each year paid directly in cash to the Plans' participants. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases | |
Leases | Note 12. Leases The company has operating leases relating principally to transportation and other equipment and real estate. Certain leases include escalation clauses and/or purchase options. The company paid $15.1 million, $16.0 million, and $13.5 million for operating leases for the years ended December 31, 2015, 2014, and 2013, respectively. At December 31, 2015, future minimum payments for all non-cancelable operating leases with an initial or remaining term of one year or more are as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information | |
Segment Information | Note 13. Segment Information The company's operations are primarily organized and managed by operating segment. Operating segment performance and resource allocations are primarily based on operating results before income taxes. The accounting policies of the reportable segments are consistent with those described in Note 1 to the financial statements. Intra-segment sales and any related profits are eliminated in consolidation. In the third quarter 2015, the company changed its reportable segments, consistent with how it currently manages the business, in three reporting segments: steel operations (includes Columbus Flat Roll Division since its September 16, 2014 acquisition), metals recycling operations, and steel fabrication operations. The segment operations are described in Note 1 to the financial statements. Amounts included in the category "Other" are from subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consists of our Minnesota ironmaking operations and several smaller joint ventures. In addition, "Other" also includes certain unallocated corporate accounts, such as the company's senior secured credit facility, senior notes, certain other investments, and certain profit sharing expenses. Segment information presented below has been adjusted for all prior periods consistent with the current reportable segment presentation. The company's segment results for the years ended December 31, are as follows (in thousands): For the Year Ended December 31, 2015 Steel Operations Metals Recycling Operations Steel Fabrication Operations Other Eliminations Consolidated Net Sales External $ $ $ $ $ — $ External Non-U.S. — Other segments ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) (7) (1) (2) ) Income (loss) before income taxes (7) ) ) Depreciation and amortization ) Capital expenditures — As of December 31, 2015 Assets $ $ $ $ (3) $ (4) $ Liabilities (5) (6) Footnotes related to the year ended December 31, 2015 segment results (in millions): (1) Corporate SG&A $ ) (2) Gross profit increase from intra-company sales $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Company-wide equity-based compensation ) Profit sharing ) Minnesota ironmaking operations ) Other, net ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (3) Cash and equivalents $ (4) Elimination of intra-company receivables $ ) Accounts receivable Elimination of intra-company debt ) Inventories Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment, net $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intra-company debt Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (5) Accounts payable $ (6) Elimination of intra-company payables $ ) Income taxes payable Elimination of intra-company debt ) Accrued interest Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrued profit sharing $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt Deferred income taxes ) Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (7) Includes $428.5 million of pretax non-cash asset impairment charges. For the Year Ended December 31, 2014 Steel Operations Metals Recycling Operations Steel Fabrication Operations Other Eliminations Consolidated Net Sales External $ $ $ $ $ — $ External Non-U.S. — — Other segments ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) (1) (2) Income (loss) before income taxes (7) Depreciation and amortization ) Capital expenditures — As of December 31, 2014 Assets $ $ $ $ (3) $ (4) $ Liabilities (5) (6) Footnotes related to the year ended December 31, 2014 segment results (in millions): (1) Corporate SG&A $ ) (2) Gross profit increase from intra-company sales $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Company-wide equity-based compensation ) Profit sharing ) Minnesota ironmaking operations ) Minnesota ironmaking operations non-cash asset impairment charges ) Other, net ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (3) Cash and equivalents $ (4) Elimination of intra-company receivables $ ) Accounts receivable Elimination of intra-company debt ) Inventories Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment, net $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intra-company debt Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (5) Accounts payable $ (6) Elimination of intra-company payables $ ) Income taxes payable Elimination of intra-company debt ) Accrued interest Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrued profit sharing $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt Deferred income taxes Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (7) Includes $25.2 million of acquisition and bridge financing costs associated with the acquisition of Columbus. For the Year Ended December 31, 2013 Steel Operations Metals Recycling Operations Steel Fabrication Operations Other Eliminations Consolidated Net Sales External $ $ $ $ $ — $ External Non-U.S. — — Other segments ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) (1) (2) Income (loss) before income taxes ) ) Depreciation and amortization ) Capital expenditures — As of December 31, 2013 Assets $ $ $ $ (3) $ (4) $ Liabilities (5) (6) Footnotes related to the year ended December 31, 2013 segment results (in millions): (1) Corporate SG&A $ ) (2) Gross profit increase from intra-company sales $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Company-wide equity-based compensation ) Profit sharing ) Minnesota ironmaking operations ) Other, net ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (3) Cash and equivalents $ (4) Elimination of intra-company receivables $ ) Accounts receivable Elimination of intra-company debt ) Inventories Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment, net $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intra-company debt Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (5) Accounts payable $ (6) Elimination of intra-company payables $ ) Income taxes payable Elimination of intra-company debt ) Accrued interest Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrued profit sharing $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt Deferred income taxes Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Condensed Consolidating Informa
Condensed Consolidating Information | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Consolidating Information | |
Condensed Consolidating Information | Note 14. Condensed Consolidating Information Certain 100%-owned subsidiaries of SDI have fully and unconditionally guaranteed all of the indebtedness relating to the issuance of the company's senior unsecured notes due 2019, 2021, 2022, 2023 and 2024. Following are the company's condensed consolidating financial statements, including the guarantors, which present the financial position, results of operations, and cash flows of (i) SDI (in each case, reflecting investments in its consolidated subsidiaries under the equity method of accounting), (ii) the guarantor subsidiaries of SDI, which includes Columbus Flat Roll Division since acquired on September 16, 2014, (iii) the non-guarantor subsidiaries of SDI, and (iv) the eliminations necessary to arrive at the information on a consolidated basis. The following statements should be read in conjunction with the accompanying consolidated financial statements, and notes thereto. Condensed Consolidating Balance Sheets (in thousands) As of December 31, 2015 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Cash and equivalents $ $ $ $ — $ Accounts receivable, net ) Inventories Other current assets ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property, plant and equipment, net ) Intangible assets, net — — — Goodwill — — — Other assets, including investments in subs ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable $ $ $ $ ) $ Accrued expenses ) Current maturities of long-term debt ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) Long-term debt ) Other liabilities ) ) Redeemable noncontrolling interests — — — Common stock ) Treasury stock ) — — — ) Additional paid-in-capital ) Retained earnings (deficit) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Steel Dynamics, Inc. equity ) Noncontrolling interests — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2014 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Cash and equivalents $ $ $ $ — $ Accounts receivable, net ) Inventories ) Other current assets ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property, plant and equipment, net ) Intangible assets, net — — — Goodwill — — — Other assets, including investments in subs ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable $ $ $ $ ) $ Accrued expenses ) Current maturities of long-term debt ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) Long-term debt ) Other liabilities ) Redeemable noncontrolling interests — — — Common stock ) Treasury stock ) — — — ) Additional paid-in-capital ) Retained earnings (deficit) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Steel Dynamics, Inc. equity ) Noncontrolling interests — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statements of Operations (in thousands) For the Year Ended, December 31, 2015 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Net sales $ $ $ $ ) $ Costs of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit (loss) ) ) Selling, general and administrative ) Asset impairment charges — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) ) ) Interest expense, net of capitalized interest ) Other (income) expense, net ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes and equity in net loss of subsidiaries ) ) ) ) Income taxes (benefit) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ) ) ) Equity in net loss of subsidiaries ) — — — Net loss attributable to noncontrolling interests — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to Steel Dynamics, Inc. $ ) $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended, December 31, 2014 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Net sales $ $ $ $ ) $ Costs of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit (loss) ) ) Selling, general and administrative ) Asset impairment charges — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) Interest expense, net of capitalized interest ) Other (income) expense, net ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes and equity in net loss of subsidiaries ) ) Income taxes (benefit) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ) Equity in net loss of subsidiaries ) — — — Net loss attributable to noncontrolling interests — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to Steel Dynamics, Inc. $ $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended, December 31, 2013 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Net sales $ $ $ $ ) $ Costs of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit (loss) ) ) Selling, general and administrative ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) Interest expense, net of capitalized interest ) Other (income) expense, net ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes and equity in net income of subsidiaries ) ) Income taxes ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ) Equity in net loss of subsidiaries ) — — — Net loss attributable to noncontrolling interests — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to Steel Dynamics, Inc. $ $ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Condensed Consolidating Statements of Cash Flows (in thousands) For the Year Ended, December 31, 2015 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Net cash provided by operating activities $ $ $ $ $ Net cash used in investing activities ) ) ) ) Net cash provided by (used in) financing activities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Increase (decrease) in cash and equivalents ) — Cash and equivalents at beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and equivalents at end of period $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended, December 31, 2014 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Net cash provided by (used in) operating activities $ $ $ ) $ ) $ Net cash used in investing activities ) ) ) ) ) Net cash provided by (used in) financing activities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Increase (decrease) in cash and equivalents ) — ) Cash and equivalents at beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and equivalents at end of period $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended, December 31, 2013 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Net cash provided by (used in) operating activities $ $ $ ) $ $ Net cash used in investing activities ) ) ) ) Net cash provided by (used in) financing activities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Increase (decrease) in cash and equivalents ) — Cash and equivalents at beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and equivalents at end of period $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Quarterly Financial Information
Quarterly Financial Information (unaudited, in thousands, except per share data) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information (unaudited, in thousands, except per share data) | |
Quarterly Financial Information (unaudited, in thousands, except per share data) | Note 15. Quarterly Financial Information (unaudited, in thousands, except per share data) 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 2015: Net sales $ $ $ $ Gross profit Operating income (loss) ) Net income (loss) ) Net income (loss) attributable to Steel Dynamics, Inc. ) Earnings (loss) per share: Basic .13 .13 .25 ) Diluted .13 .13 .25 ) 2014: Net sales $ $ $ $ Gross profit Operating income (loss) ) Net income (loss) ) Net income (loss) attributable to Steel Dynamics, Inc. ) Earnings (loss) per share: Basic .17 .32 .38 (.19 ) Diluted .17 .31 .38 (.19 ) The first quarter of 2015 reflects other non-operating expenses of $16.7 million associated with call premiums and write off of deferred financing costs related to the call and repayment of all $350.0 million of outstanding 7 5 / 8 % Senior Notes due 2020. The second quarter of 2015 reflects inventory lower-of-cost or market charges of $21.0 million (inclusive of noncontrolling interests of $3.6 million), in cost of goods sold, related to the May 2015 decision to idle the Minnesota ironmaking operations and to monetize existing raw material inventory. The fourth quarter of 2015 reflects pretax non-cash asset impairment charges related to goodwill, indefinite-lived intangibles and certain other assets associated with the company's metal recycling operations, which reduced operating income by $428.5 million, and net income and net income attributable to Steel Dynamics, Inc. by $268.7 million. The third quarter of 2014 reflects other non-operating expenses of $25.2 million associated with acquisition and bridge financing costs related to the acquisition of Columbus Flat Roll Division. The fourth quarter of 2014 reflects pretax non-cash asset impairment charges associated with the company's Minnesota ironmaking operations, which reduced operating income by $260.0 million, net income by $179.1 million, and net income attributable to Steel Dynamics, Inc. by $132.6 million. Earnings per share are computed independently for each of the quarters presented. Therefore, the sum of the quarterly earnings per share may not equal the total for the year. |
Description of the Business a23
Description of the Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Description of the Business and Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of SDI, together with its wholly and majority-owned or controlled subsidiaries, after elimination of significant intercompany accounts and transactions. Noncontrolling interests represent the noncontrolling owner's proportionate share in the equity, income, or losses of the company's majority-owned or controlled consolidated subsidiaries. |
Use of Estimates | Use of Estimates These financial statements are prepared in conformity with accounting principles generally accepted in the United States, and accordingly, include amounts that require management to make estimates and assumptions that affect the amounts reported in the financial statements and in the notes thereto. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment, intangible assets, and goodwill; valuation allowances for trade receivables, inventories and deferred income tax assets; unrecognized tax benefits; potential environmental liabilities; and litigation claims and settlements. Actual results may differ from these estimates and assumptions. |
Revenue Recognition and Allowances for Doubtful Accounts | Revenue Recognition and Allowances for Doubtful Accounts Except for the steel fabrication operations, the company recognizes revenues from sales and the allowance for estimated returns and claims from these sales at the time the title of the product transfers, upon shipment. Provision is made for estimated product returns and customer claims based on historical experience. If the historical data used in the estimates does not reflect future returns and claims trends, additional provision may be necessary. The company's steel fabrication operations recognizes revenues from construction contracts utilizing a percentage of completion methodology based on steel tons used on completed units to date as a percentage of estimated total steel tons required for each contract. The allowance for doubtful accounts for all operating segments is based on the company's best estimate of probable credit losses, along with historical experience. |
Cash and Equivalents | Cash and Equivalents Cash and equivalents include all highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash is primarily funds held in escrow as required by various insurance and government organizations. |
Inventories | Inventories Inventories are stated at lower of cost or market. Cost is determined using a weighted average cost method for scrap, and on a first-in, first-out, basis for other inventory. Inventory consisted of the following at December 31 (in thousands): 2015 2014 Raw materials $ $ Supplies Work in progress Finished goods ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Investments | Investments The company has investments in certain joint ventures and closely-held companies in which ownership varies between 49% and 50%. For these investments where the company does not have effective control, the company accounts for the investment using the equity method of accounting. Investments in companies in which the company does not exercise control and its ownership is less than 20% are carried at cost. These investments are reflected in other long-term assets on the company's balance sheet in an amount of $6.4 million and $18.4 million at December 31, 2015, and 2014, respectively. The company's equity in the income (losses) of investments accounted for using the equity method of accounting are recorded in other (income) expenses, net, in our consolidated statements of operations. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, which includes capitalized interest on construction-in-progress amounts, and is reduced by proceeds received from certain state and local government grants and other capital cost reimbursements. The company assigns each fixed asset a useful life ranging from 3 to 20 years for plant, machinery and equipment and 10 to 40 years for buildings and improvements. Repairs and maintenance are expensed as incurred. Depreciation is provided utilizing the straight-line depreciation methodology, or the units-of-production depreciation methodology for certain production related assets, based on units produced, subject to a minimum and maximum level. Depreciation expense was $263.2 million, $229.4 million, and $192.4 million for the years ended December 31, 2015, 2014, and 2013, respectively. The company's property, plant and equipment at December 31 consisted of the following (in thousands): 2015 2014 Land and improvements $ $ Buildings and improvements Plant, machinery and equipment Construction in progress ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Intangible Assets | Intangible Assets The company's intangible assets, at December 31, consisted of the following (in thousands): 2015 2014 Useful Life Weighted Average Amortization Period Customer and scrap generator relationships $ $ 10 to 25 years 19 years Trade names Indefinite — Trade name 12 years 12 years ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 19 years Less accumulated amortization ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Refer to "Impairment of Goodwill and Indefinite-Lived Intangible Assets" below in Note 1 for discussion regarding the 2015 impairment of OmniSource trade name. The company utilizes an accelerated amortization methodology for customer and scrap generator relationships in order to follow the pattern in which the economic benefits of the amounts are anticipated to be consumed. Definite-lived trade names are amortized using a straight line methodology. Amortization of intangible assets was $25.3 million, $26.4 million, and $30.5 million for the years ended December 31, 2015, 2014, and 2013, respectively. Estimated amortization expense, related to amortizable intangibles, for the years ending December 31 is as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Impairment of Long-Lived Tangible and Definite-Lived Intangible Assets | Impairment of Long-Lived Tangible and Definite-Lived Intangible Assets The company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be fully recoverable. Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amounts. The impairment loss is measured by comparing the fair value of the asset to its carrying amount. We consider various factors and determine whether an impairment test is necessary, including by way of examples, a significant and prolonged deterioration in operating results and/or projected cash flows, significant changes in the extent or manner in which an asset is used, technological advances with respect to assets which would potentially render them obsolete, our strategy and capital planning, and the economic climate in markets to be served. A long-lived asset is classified as held for sale upon meeting specified criteria related to ability and intent to sell. An asset classified as held for sale is measured at the lower of its carrying amount or fair value less cost to sell. As of December 31, 2015, the company reported $8.6 million of assets held for sale within other current assets in our consolidated balance sheet. An impairment loss is recognized for any initial or subsequent write-down of the asset held for sale to its fair value less cost to sell. Upon the December 31, 2015, determination and classification of these assets as held for sale, the company recorded a $10.3 million asset impairment charge in the consolidated statement of operations for the year ended December 31, 2015. The company determined fair value using Level 3 inputs as provided for under ASC 820, consisting of information provided by brokers and other external sources along with management's own assumptions. During the fourth quarter of 2014, the company's Minnesota ironmaking operations reached a steady operating state, indicating a consistency in the operations' production capability, processes and cost structure, including the ability to utilize certain lower-cost raw materials. Given this, the company undertook an assessment of the recoverability of the carrying value of its Minnesota ironmaking operations' fixed assets. With the company's outlook at the time regarding future operating costs and product pricing, the company concluded that the carrying value of these fixed assets was no longer fully recoverable, and the fixed assets were in fact impaired. This assessment resulted in a $260.0 million pretax non-cash impairment charge, including amounts attributable to noncontrolling interests of $46.5 million, which is reflected in "Other" in Note 13, Segment Information. The carrying values of the impaired assets were adjusted to their estimated fair values as determined primarily on the cost approach, as well as expected future discounted cash flows (an income approach), using Level 3 inputs as provided for under ASC 820. The Minnesota ironmaking operations were indefinitely idled in May 2015. |
Goodwill | Goodwill The company's goodwill is allocated to the following reporting units at December 31, (in thousands): 2015 2014 OmniSource—Metals Recycling Operations Segment $ $ Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division—Metals Recycling Operations Segment The Techs—Steel Operations Segment Roanoke Bar Division—Steel Operations Segment Columbus Flat Roll Division—Steel Operation Segment New Millennium Building Systems—Steel Fabrication Operations Segment ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ In 2015, a $341.3 million OmniSource goodwill impairment charge was recorded pursuant to the company's annual review for impairment of goodwill and indefinite-lived intangible assets, as discussed further under "Impairment of Goodwill and Indefinite-Lived Intangible Assets" below. Cumulative OmniSource goodwill impairment charges are $341.3 million at December 31, 2015. OmniSource goodwill decreased $6.4 million in 2015, in recognition of the 2015 tax benefit related to the normal amortization of the component of OmniSource tax-deductible goodwill in excess of book goodwill. |
Impairment of Goodwill and Indefinite-Lived Intangible Assets | Impairment of Goodwill and Indefinite-Lived Intangible Assets At least once annually (as of October 1) or when indicators of impairment exist, the company performs an impairment test for goodwill and other indefinite-lived intangible assets. Goodwill is allocated to various reporting units, which are generally one level below the company's operating segments. The company utilizes a two-stepped approach to evaluate goodwill impairment. The first step of the test determines if there is potential goodwill impairment. In this step the company compares the fair value of the reporting unit to its carrying amount (which includes goodwill). The fair value of the reporting unit is determined by using an estimate of future cash flows utilizing a risk-adjusted discount rate to calculate the net present value of future cash flows (income approach), and by using a market approach based upon an analysis of valuation metrics of comparable peer companies, Level 3 inputs as provided for under ASC 820. If the fair value exceeds the carrying value, there is no impairment. If the carrying amount exceeds the fair value, the company performs the second step of the test, which measures the amount of impairment loss to be recorded. In the second step, the company compares the carrying amount of the goodwill to the implied fair value of the goodwill based on the net fair value of the recognized and unrecognized assets and liabilities of the reporting unit to which it is allocated. If the implied fair value is less than the carrying value, an impairment loss is recorded to the extent that the fair value of the goodwill is less than its carrying value. At least once annually (as of October 1) or when indicators of impairment exist, the company tests indefinite-lived intangible assets for impairment through the comparison of the fair value of the specific intangible asset with its carrying amount. The fair value of the intangible asset is determined by using an estimate of future cash flows attributable to the asset and a risk-adjusted discount rate to compute a net present value of future cash flows (income approach). If the fair value is less than the carrying value, an impairment loss is recorded in an amount equal to the excess in carrying value. During the company's 2015 annual goodwill and indefinite-lived intangible asset impairment analysis, we determined that the fair value of OmniSource was less than its carrying value, and upon the completion of the second step of the impairment analysis, that the goodwill and trade name indefinite-lived intangible assets were impaired. The decrease in OmniSource fair value from prior impairment analysis was due primarily to the reduction in expected future cash flows based on management's view of the weak shorter and longer-term global scrap commodity outlook. The OmniSource goodwill and trade name indefinite-lived intangible assets were written down to their respective fair values, resulting in non-cash asset impairment charges of $341.3 million and $68.5 million, respectively, that are reflected in asset impairment charges in the consolidated statement of operations for the year ended December 31, 2015, within the metals recycling operations. |
Equity-Based Compensation | Equity-Based Compensation The company has several stock-based employee compensation plans which are more fully described in Note 6. Compensation expense for restricted stock units, deferred stock units, restricted stock, and performance awards is recorded over the vesting periods using the fair value as determined by the closing fair market value of the company's common stock on the grant date, and with respect to performance awards, an estimate of probability of award achievement during the performance period. Compensation expense for these stock-based employee compensation plans was $27.1 million, $22.8 million, and $15.2 million for the years ended December 31, 2015, 2014, and 2013, respectively. |
Income Taxes | Income Taxes The company accounts for income taxes and the related accounts under the liability method. Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted rates expected to be in effect during the year in which the basis differences reverse. |
Earnings Per Share | Earnings Per Share Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company's basic earnings per share. Common share equivalents represent potentially dilutive stock options, restricted stock units, deferred stock units, and in 2014 and 2013, dilutive shares related to the company's convertible subordinated debt; and are excluded from the computation in periods in which they have an anti-dilutive effect. There were 1.5 million anti-dilutive common stock equivalents as of and for the year ended December 31, 2015. There were no anti-dilutive common share equivalents at or for the year ended December 31, 2014, and 2013. The following table presents a reconciliation of the numerators and the denominators of the company's basic and diluted earnings per share computations for the years ended December 31 (in thousands, except per share data): 2015 Net Loss (Numerator) Shares (Denominator) Per Share Amount Basic earnings per share $ ) $ ) Dilutive stock options, deferred stock units, and restricted stock units — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per share $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2014 2013 Net Income (Numerator) Shares (Denominator) Per Share Amount Net Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per share $ $ $ $ Dilutive stock options, deferred stock units, and restricted stock units — — 5.125% convertible senior notes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per share $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the company to significant concentrations of credit risk principally consist of temporary cash investments and accounts receivable. The company places its temporary cash investments with high credit quality financial institutions and companies, and limits the amount of credit exposure from any one entity. The company is exposed to credit risk in the event of nonpayment by customers. The company mitigates its exposure to credit risk, which it generally extends initially on an unsecured basis, by performing ongoing credit evaluations and taking further action if necessary, such as requiring letters of credit or other security interests to support the customer receivable. Management's estimation of the allowance for doubtful accounts is based upon known credit risks, historical loss experience and current economic conditions affecting the company's customers. Customer accounts receivable are charged off when all collection efforts have been exhausted and the amounts are deemed uncollectible. Heidtman Steel Products (Heidtman), a related party, accounted for 5% of the company's net accounts receivable at December 31, 2015, and 4% at December 31, 2014. |
Derivative Financial Instruments | Derivative Financial Instruments The company recognizes all derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. Changes in the fair value of derivatives that are designated as hedges, depending on the nature of the hedge, are recognized as either an offset against the change in fair value of the hedged balance sheet item in the case of fair value hedges or as other comprehensive income in the case of cash flow hedges, until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value is immediately recognized in earnings. The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements. In the normal course of business, the company may have involvement with derivative financial instruments related to managing fluctuations in interest rates, foreign exchange rates, and forward contracts in various commodities. At the time of acquiring these financial instruments, the company designates and assigns these instruments as hedges of specific assets, liabilities or anticipated transactions. When hedged assets or liabilities are sold or extinguished, or the anticipated transaction being hedged is no longer expected to occur, the company recognizes the gain or loss on the designated hedged financial instrument. The company routinely enters into forward contracts in various commodities, primarily nonferrous metals (specifically aluminum, copper, nickel and silver) in our metals recycling operations, to reduce exposure to commodity related price fluctuations. The company does not enter into these derivative financial instruments for speculative purposes. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition—Revenue from Contracts with Customers, which amends the guidance in former ASC 605, Revenue Recognition. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Because the guidance in ASC 606 is principles-based, it can be applied to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. Additionally, ASC 606 requires additional disclosures to help users of financial statements better understand the nature, amount, timing, and potential uncertainty of revenue that is recognized. This guidance is effective for annual and interim periods beginning after December 15, 2017, but can be early adopted for annual and interim periods ending after December 15, 2016. The company is currently evaluating the impact of the provisions of ASC 606, including the timing of adoption. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern), effective for annual and interim periods ending after December 15, 2016. ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. There are required disclosures if principal conditions or events are identified that raised substantial doubt about the entity's ability to continue as a going concern (before consideration of management's plans), as well as management's evaluation of the significance of those conditions or events in relation to the entity's ability to meet its obligations, and management's plans that alleviated substantial doubt about the entity's ability to continue as a going concern. This ASU is not expected to have any impact on our overall results of operations, financial position or cash flows. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which requires an entity to measure inventory at the lower of cost and net realizable value, rather than at the lower of cost or market. This new guidance is effective for interim and annual periods beginning after December 15, 2016, but can be early adopted. The company is currently evaluating the impact of this ASU's adoption. |
Description of the Business a24
Description of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Description of the Business and Significant Accounting Policies | |
Schedule of inventories | Inventories Inventories are stated at lower of cost or market. Cost is determined using a weighted average cost method for scrap, and on a first-in, first-out, basis for other inventory. Inventory consisted of the following at December 31 (in thousands): 2015 2014 Raw materials $ $ Supplies Work in progress Finished goods ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of property, plant and equipment | The company's property, plant and equipment at December 31 consisted of the following (in thousands): 2015 2014 Land and improvements $ $ Buildings and improvements Plant, machinery and equipment Construction in progress ​ ​ ​ ​ ​ ​ ​ ​ Less accumulated depreciation ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment, net $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of intangible assets | The company's intangible assets, at December 31, consisted of the following (in thousands): 2015 2014 Useful Life Weighted Average Amortization Period Customer and scrap generator relationships $ $ 10 to 25 years 19 years Trade names Indefinite — Trade name 12 years 12 years ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 19 years Less accumulated amortization ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of estimated amortization expense, related to amortizable intangibles | Estimated amortization expense, related to amortizable intangibles, for the years ending December 31 is as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ Total $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of allocation of goodwill to reporting units | The company's goodwill is allocated to the following reporting units at December 31, (in thousands): 2015 2014 OmniSource—Metals Recycling Operations Segment $ $ Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division—Metals Recycling Operations Segment The Techs—Steel Operations Segment Roanoke Bar Division—Steel Operations Segment Columbus Flat Roll Division—Steel Operation Segment New Millennium Building Systems—Steel Fabrication Operations Segment ​ ​ ​ ​ ​ ​ ​ ​ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share | The following table presents a reconciliation of the numerators and the denominators of the company's basic and diluted earnings per share computations for the years ended December 31 (in thousands, except per share data): 2015 Net Loss (Numerator) Shares (Denominator) Per Share Amount Basic earnings per share $ ) $ ) Dilutive stock options, deferred stock units, and restricted stock units — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per share $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2014 2013 Net Income (Numerator) Shares (Denominator) Per Share Amount Net Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per share $ $ $ $ Dilutive stock options, deferred stock units, and restricted stock units — — 5.125% convertible senior notes ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted earnings per share $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions | |
Schedule of unaudited pro forma information | The following unaudited pro forma information is presented below for comparison purposes as if the Columbus Flat Roll Division acquisition was completed as of January 1, 2013, (in thousands): Years Ended December 31, 2014 2013 Net Sales $ $ Net Income attributable to Steel Dynamics, Inc. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-Term Debt | |
Schedule of long-term debt | The company's borrowings consisted of the following at December 31 (in thousands): 2015 2014 Senior term loan $ $ 6 1 / 8 % senior notes due 2019 7 5 / 8 % senior notes due 2020 — 5.125% senior notes due 2021 6 3 / 8 % senior notes due 2022 5 1 / 4 % senior notes due 2023 5.500% senior notes due 2024 Other obligations ​ ​ ​ ​ ​ ​ ​ ​ Total debt Less debt issuance costs ​ ​ ​ ​ ​ ​ ​ ​ Total amounts outstanding Less current maturities ​ ​ ​ ​ ​ ​ ​ ​ Long-term debt $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of senior unsecured notes outstanding terms | Issue 2019 Notes 2021 Notes 2022 Notes 2023 Notes 2024 Notes Outstanding Balance $400.0 million $700.0 million $350.0 million $400.0 million $500.0 million Stated Interest Rate 6 1 / 8 % 5.125% 6 3 / 8 % 5 1 / 4 % 5.500% Semi-Annual Interest Payment Dates February 15 and August 15 April 1 and October 1 February 15 and August 15 April 15 and October 15 April 1 and October 1 Equity Redemption Option Price & Date N/A—date passed 105.125% (10/1/17) N/A—date passed 105.250% (4/15/16) 105.500% (10/1/17) "Make-whole" Option Date 8/15/16 10/1/17 8/15/17 4/15/18 10/1/19 First Call Price & Date 103.063% (8/15/16) 102.563% (10/1/17) 103.188% (8/15/17) 102.625% (4/15/18) 102.750% (10/1/19) Second Call Price & Date 101.531% (8/15/17) 101.281% (10/1/18) 102.125% (8/15/18) 101.750% (4/15/19) 101.833% (10/1/20) Third Call Price & Date 100.000% (8/15/18) 100.000% (10/1/19) 101.063% (8/15/19) 100.875% (4/15/20) 100.917% (10/1/21) Fourth Call Price & Date — — 100.000% (8/15/20) 100.000% (4/15/21) 100.000% (10/1/22) Maturity Date August 15, 2019 October 1, 2021 August 15, 2022 April 15, 2023 October 1, 2024 |
Schedule of outstanding debt maturities | Maturities of outstanding debt as of December 31, 2015, are as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Schedule of current and deferred federal and state income tax expense (benefit) | The current and deferred federal and state income tax expense (benefit) for the years ended December 31 is as follows (in thousands): 2015 2014 2013 Current income tax expense $ $ $ Deferred income tax expense (benefit) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total income tax expense (benefit) $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of reconciliation of statutory tax rates to actual effective tax rates | 2015 2014 2013 Statutory federal tax rate % % % State income taxes, net of federal benefit Domestic manufacturing deduction — ) ) Noncontrolling interests ) Federal research and development tax credits — ) ) Other permanent differences ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective tax rate % % % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of components of deferred tax assets and liabilities | Significant components of the company's deferred tax assets and liabilities at December 31 are as follows (in thousands): 2015 2014 Deferred tax assets Accrued expenses and allowances $ $ Inventories Net operating loss carryforwards Intangible Assets — Other ​ ​ ​ ​ ​ ​ ​ ​ Subtotal Less: valuation allowance ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total net deferred tax assets ​ ​ ​ ​ ​ ​ ​ ​ Deferred tax liabilities Property, plant and equipment ) ) Intangible assets — ) Other ) ) ​ ​ ​ ​ ​ ​ ​ ​ Total deferred tax liabilities ) ) ​ ​ ​ ​ ​ ​ ​ ​ Net deferred tax liability $ ) $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2015 2014 2013 Balance at January 1 $ $ $ Increases related to current year tax positions — Increases related to prior year tax positions Decreases related to prior year tax positions ) ) ) Settlements with taxing authorities ) ) — Lapses in statute of limitations ) — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance at December 31 $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Equity-based Incentive Plans (T
Equity-based Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity-based Incentive Plans | |
Summary of the company's RSU activity and outstanding RSU's | A summary of the company's RSU activity and outstanding RSUs as of December 31, 2015, are presented below (dollars in thousands except grant date fair value): Number of RSUs Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Unrecognized Compensation Outstanding RSUs as of January 1, 2013 $ $ $ Granted $ Vested ) $ Forfeited ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2013 $ $ $ Granted $ Vested ) $ Forfeited ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2014 $ $ $ Granted $ Vested ) $ Forfeited ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2015 (nonvested) $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of stock option activity for all plans | Number of Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Outstanding options as of January 1, 2013 $ $ Exercised ) $ $ Forfeited ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2013 $ $ Exercised ) $ $ Forfeited ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2014 $ $ Exercised ) $ $ Forfeited ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2015 $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of information concerning outstanding options, by range of exercise price | Range of Exercise Price Exercisable Outstanding Options Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price of Exercisable Outstanding Options $10 to $15 $ $15 to $20 $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of performance period transition awards | Maximum Shares That Could Be Issued Award Earned Award Issued/Issuable 2013 LTIP Award: One-year performance period transition award March 2014 March 2015 March 2016 Two-year performance period transition award March 2015 March 2016 March 2017 Three-year performance period award March 2016 March 2017 March 2018 2014 LTIP Award: Three-year performance period award * * 2015 LTIP Award: Three-year performance period award * * * Not yet earned as performance period not complete. |
Derivative Financial Instrume29
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Financial Instruments | |
Commodity futures contract commitments for non monetary notional amount | The following summarizes the company's commodity futures contract commitments as of December 31, 2015 (MT represents metric tons and Lbs represents pounds): Commodity Long/Short Total Aluminum Long MT Aluminum Short MT Copper Long MT Copper Short MT Silver Short Lbs |
Summary of the location and amounts of the fair values and gains or losses related to derivatives included in the entity's financial statements | The following summarizes the location and amounts of the fair values reported on the company's balance sheets and gains or losses related to derivatives included in the company's consolidated statements of operations as of and for the years ended December 31 (in thousands): Asset Derivatives Liability Derivatives Fair Value Fair Value Balance sheet location December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Derivative instruments designated as fair value hedges— Commodity futures Other current assets $ $ $ $ Derivative instruments not designated as hedges— Commodity futures Other current assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total derivative instruments $ $ $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of gain (loss) recognized in income on derivatives Amount of gain (loss) recognized in income on derivatives for the year ended December 31, 2015 Hedged items in fair value hedge relationships Location of gain recognized in income on related hedged item Amount of gain recognized in income on related hedged items for the year ended December 31, 2015 Derivatives in fair value hedging relationships— Commodity futures Costs of goods sold $ ) Firm commitments Costs of goods sold $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inventory Costs of goods sold ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives not designated as hedging instruments— Commodity futures Costs of goods sold $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of gain recognized in income on derivatives Amount of gain recognized in income on derivatives for the year ended December 31, 2014 Hedged items in fair value hedge relationships Location of gain (loss) recognized in income on related hedged item Amount of gain (loss) recognized in income on related hedged items for the year ended December 31, 2014 Derivatives in fair value hedging relationships— Commodity futures Costs of goods sold $ Firm commitments Costs of goods sold $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inventory Costs of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives not designated as hedging instruments— Commodity futures Costs of goods sold $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Location of gain recognized in income on derivatives Amount of gain recognized in income on derivatives for the year ended December 31, 2013 Hedged items in fair value hedge relationships Location of gain (loss) recognized in income on related hedged item Amount of gain (loss) recognized in income on related hedged items for the year ended December 31, 2013 Derivatives in fair value hedging relationships— Commodity futures Costs of goods sold $ Firm commitments Costs of goods sold $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Inventory Costs of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Derivatives not designated as hedging instruments— Commodity futures Costs of goods sold $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements | |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table sets forth financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheet and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of December 31 (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) 2015 Commodity futures—financial assets $ $ — $ $ — Commodity futures—financial liabilities — — 2014 Commodity futures—financial assets $ $ — $ $ — Commodity futures—financial liabilities — — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies | |
Schedule of commitments for agreements with "take or pay" or other similar commitment provisions | The company's commitments for these agreements with "take or pay" or other similar commitment provisions for the years ending December 31, as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Transactions with Affiliated 32
Transactions with Affiliated Companies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Heidtman Steel Products (Heidtman) | |
Transactions with affiliated companies | |
Schedule of transactions with affiliated companies | Transactions with Heidtman for the years ended December 31, are as follows (in thousands): 2015 2014 2013 Sales $ $ $ Percentage of consolidated net sales % % % Accounts receivable Purchases Accounts payable |
Other smaller affiliated companies | |
Transactions with affiliated companies | |
Schedule of transactions with affiliated companies | These transactions are as follows (in thousands): 2015 2014 2013 Sales $ $ $ Accounts receivable Purchases Accounts payable |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases | |
Schedule of future minimum payments of non-cancelable operating leases | At December 31, 2015, future minimum payments for all non-cancelable operating leases with an initial or remaining term of one year or more are as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information | |
Schedule of operating segment results | The company's segment results for the years ended December 31, are as follows (in thousands): For the Year Ended December 31, 2015 Steel Operations Metals Recycling Operations Steel Fabrication Operations Other Eliminations Consolidated Net Sales External $ $ $ $ $ — $ External Non-U.S. — Other segments ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) (7) (1) (2) ) Income (loss) before income taxes (7) ) ) Depreciation and amortization ) Capital expenditures — As of December 31, 2015 Assets $ $ $ $ (3) $ (4) $ Liabilities (5) (6) Footnotes related to the year ended December 31, 2015 segment results (in millions): (1) Corporate SG&A $ ) (2) Gross profit increase from intra-company sales $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Company-wide equity-based compensation ) Profit sharing ) Minnesota ironmaking operations ) Other, net ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (3) Cash and equivalents $ (4) Elimination of intra-company receivables $ ) Accounts receivable Elimination of intra-company debt ) Inventories Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment, net $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intra-company debt Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (5) Accounts payable $ (6) Elimination of intra-company payables $ ) Income taxes payable Elimination of intra-company debt ) Accrued interest Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrued profit sharing $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt Deferred income taxes ) Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (7) Includes $428.5 million of pretax non-cash asset impairment charges. For the Year Ended December 31, 2014 Steel Operations Metals Recycling Operations Steel Fabrication Operations Other Eliminations Consolidated Net Sales External $ $ $ $ $ — $ External Non-U.S. — — Other segments ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) (1) (2) Income (loss) before income taxes (7) Depreciation and amortization ) Capital expenditures — As of December 31, 2014 Assets $ $ $ $ (3) $ (4) $ Liabilities (5) (6) Footnotes related to the year ended December 31, 2014 segment results (in millions): (1) Corporate SG&A $ ) (2) Gross profit increase from intra-company sales $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Company-wide equity-based compensation ) Profit sharing ) Minnesota ironmaking operations ) Minnesota ironmaking operations non-cash asset impairment charges ) Other, net ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (3) Cash and equivalents $ (4) Elimination of intra-company receivables $ ) Accounts receivable Elimination of intra-company debt ) Inventories Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment, net $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intra-company debt Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (5) Accounts payable $ (6) Elimination of intra-company payables $ ) Income taxes payable Elimination of intra-company debt ) Accrued interest Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrued profit sharing $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt Deferred income taxes Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (7) Includes $25.2 million of acquisition and bridge financing costs associated with the acquisition of Columbus. For the Year Ended December 31, 2013 Steel Operations Metals Recycling Operations Steel Fabrication Operations Other Eliminations Consolidated Net Sales External $ $ $ $ $ — $ External Non-U.S. — — Other segments ) — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) (1) (2) Income (loss) before income taxes ) ) Depreciation and amortization ) Capital expenditures — As of December 31, 2013 Assets $ $ $ $ (3) $ (4) $ Liabilities (5) (6) Footnotes related to the year ended December 31, 2013 segment results (in millions): (1) Corporate SG&A $ ) (2) Gross profit increase from intra-company sales $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Company-wide equity-based compensation ) Profit sharing ) Minnesota ironmaking operations ) Other, net ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (3) Cash and equivalents $ (4) Elimination of intra-company receivables $ ) Accounts receivable Elimination of intra-company debt ) Inventories Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Property, plant and equipment, net $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Intra-company debt Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (5) Accounts payable $ (6) Elimination of intra-company payables $ ) Income taxes payable Elimination of intra-company debt ) Accrued interest Other ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrued profit sharing $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt Deferred income taxes Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Condensed Consolidating Infor35
Condensed Consolidating Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Consolidating Information | |
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets (in thousands) As of December 31, 2015 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Cash and equivalents $ $ $ $ — $ Accounts receivable, net ) Inventories Other current assets ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property, plant and equipment, net ) Intangible assets, net — — — Goodwill — — — Other assets, including investments in subs ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable $ $ $ $ ) $ Accrued expenses ) Current maturities of long-term debt ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) Long-term debt ) Other liabilities ) ) Redeemable noncontrolling interests — — — Common stock ) Treasury stock ) — — — ) Additional paid-in-capital ) Retained earnings (deficit) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Steel Dynamics, Inc. equity ) Noncontrolling interests — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2014 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Cash and equivalents $ $ $ $ — $ Accounts receivable, net ) Inventories ) Other current assets ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current assets ) Property, plant and equipment, net ) Intangible assets, net — — — Goodwill — — — Other assets, including investments in subs ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total assets $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable $ $ $ $ ) $ Accrued expenses ) Current maturities of long-term debt ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total current liabilities ) Long-term debt ) Other liabilities ) Redeemable noncontrolling interests — — — Common stock ) Treasury stock ) — — — ) Additional paid-in-capital ) Retained earnings (deficit) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Steel Dynamics, Inc. equity ) Noncontrolling interests — — ) — ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total equity ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total liabilities and equity $ $ $ $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations (in thousands) For the Year Ended, December 31, 2015 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Net sales $ $ $ $ ) $ Costs of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit (loss) ) ) Selling, general and administrative ) Asset impairment charges — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) ) ) Interest expense, net of capitalized interest ) Other (income) expense, net ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes and equity in net loss of subsidiaries ) ) ) ) Income taxes (benefit) ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ) ) ) Equity in net loss of subsidiaries ) — — — Net loss attributable to noncontrolling interests — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to Steel Dynamics, Inc. $ ) $ ) $ ) $ $ ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended, December 31, 2014 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Net sales $ $ $ $ ) $ Costs of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit (loss) ) ) Selling, general and administrative ) Asset impairment charges — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) Interest expense, net of capitalized interest ) Other (income) expense, net ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes and equity in net loss of subsidiaries ) ) Income taxes (benefit) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ) Equity in net loss of subsidiaries ) — — — Net loss attributable to noncontrolling interests — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to Steel Dynamics, Inc. $ $ $ ) $ $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended, December 31, 2013 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Net sales $ $ $ $ ) $ Costs of goods sold ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gross profit (loss) ) ) Selling, general and administrative ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating income (loss) ) ) Interest expense, net of capitalized interest ) Other (income) expense, net ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income (loss) before income taxes and equity in net income of subsidiaries ) ) Income taxes ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ) ) Equity in net loss of subsidiaries ) — — — Net loss attributable to noncontrolling interests — — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) attributable to Steel Dynamics, Inc. $ $ $ ) $ ) $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Schedule of Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows (in thousands) For the Year Ended, December 31, 2015 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Net cash provided by operating activities $ $ $ $ $ Net cash used in investing activities ) ) ) ) Net cash provided by (used in) financing activities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Increase (decrease) in cash and equivalents ) — Cash and equivalents at beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and equivalents at end of period $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended, December 31, 2014 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Net cash provided by (used in) operating activities $ $ $ ) $ ) $ Net cash used in investing activities ) ) ) ) ) Net cash provided by (used in) financing activities ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Increase (decrease) in cash and equivalents ) — ) Cash and equivalents at beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and equivalents at end of period $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended, December 31, 2013 Parent Guarantors Combined Non-Guarantors Consolidating Adjustments Total Consolidated Net cash provided by (used in) operating activities $ $ $ ) $ $ Net cash used in investing activities ) ) ) ) Net cash provided by (used in) financing activities ) ) ) ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Increase (decrease) in cash and equivalents ) — Cash and equivalents at beginning of period — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and equivalents at end of period $ $ $ $ — $ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ |
Quarterly Financial Informati36
Quarterly Financial Information (unaudited, in thousands, except per share data) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information (unaudited, in thousands, except per share data) | |
Schedule of quarterly financial information | Quarterly Financial Information (unaudited, in thousands, except per share data) 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 2015: Net sales $ $ $ $ Gross profit Operating income (loss) ) Net income (loss) ) Net income (loss) attributable to Steel Dynamics, Inc. ) Earnings (loss) per share: Basic .13 .13 .25 ) Diluted .13 .13 .25 ) 2014: Net sales $ $ $ $ Gross profit Operating income (loss) ) Net income (loss) ) Net income (loss) attributable to Steel Dynamics, Inc. ) Earnings (loss) per share: Basic .17 .32 .38 (.19 ) Diluted .17 .31 .38 (.19 ) |
Description of the Business a37
Description of the Business and Summary of Significant Accounting Policies - Segments (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Sep. 30, 2014USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | Mar. 31, 2014USD ($)$ / shares | Dec. 31, 2015USD ($)segmentlocationemployeePlantfacilityitemagreement$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares | |
Segment Reporting Information | |||||||||||
Number of reporting segments | segment | 3 | ||||||||||
Workforce represented by collective bargaining agreements (as a percent) | 9.00% | ||||||||||
Number of collective bargaining agreements that expire | agreement | 1 | ||||||||||
Number of employees under a collective bargaining agreement that expire | employee | 117 | ||||||||||
Number of locations subject to collective bargaining agreements that expire | location | 1 | ||||||||||
Net income (loss) | $ (256,316) | $ 58,867 | $ 25,325 | $ 26,954 | $ (96,046) | $ 87,657 | $ 66,341 | $ 33,698 | $ (145,170) | $ 91,650 | $ 163,516 |
Diluted earnings (loss) per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share) | $ / shares | $ (1.04) | $ 0.25 | $ 0.13 | $ 0.13 | $ (0.19) | $ 0.38 | $ 0.31 | $ 0.17 | $ (0.54) | $ 0.67 | $ 0.83 |
Other | |||||||||||
Redeemable noncontrolling interests | $ 126,340 | $ 126,340 | $ 126,340 | $ 126,340 | |||||||
Minnesota Ironmaking Operations | |||||||||||
Segment Reporting Information | |||||||||||
Net income (loss) | (179,100) | ||||||||||
Subsidiaries | Mesabi Nugget | |||||||||||
Other | |||||||||||
Percentage of ownership interest in facility | 82.00% | ||||||||||
Number of years subsequent to achievement of performance measures | 3 years | ||||||||||
Subsidiaries | Mesabi Nugget | Redeemable Noncontrolling Interest | |||||||||||
Other | |||||||||||
Redeemable noncontrolling interests | 111,200 | 111,200 | $ 111,200 | 111,200 | |||||||
Subsidiaries | Mining Resources | |||||||||||
Other | |||||||||||
Percentage of ownership interest in facility | 81.00% | ||||||||||
Subsidiaries | Mining Resources | Redeemable Noncontrolling Interest | |||||||||||
Other | |||||||||||
Redeemable noncontrolling interests | 15,100 | $ 15,100 | $ 15,100 | $ 15,100 | |||||||
Steel Operations | |||||||||||
Segment Reporting Information | |||||||||||
Number of downstream coating lines | facility | 10 | ||||||||||
Percentage of external net sales | 69.00% | 63.00% | 61.00% | ||||||||
Steel Operations | Columbus Flat Roll Division | |||||||||||
Segment Reporting Information | |||||||||||
Amount for expansion project | $ 100,000 | $ 100,000 | |||||||||
Steel Operations | The Techs | |||||||||||
Segment Reporting Information | |||||||||||
Number of galvanizing lines | item | 3 | ||||||||||
Metals Recycling Operations | |||||||||||
Segment Reporting Information | |||||||||||
Percentage of external net sales | 19.00% | 25.00% | 31.00% | ||||||||
Steel Fabrication Operations | |||||||||||
Segment Reporting Information | |||||||||||
Percentage of external net sales | 9.00% | 7.00% | 6.00% | ||||||||
Number of plants | Plant | 8 |
Description of the Business a38
Description of the Business and Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, plant and equipment | |||
Depreciation expense | $ 263,200 | $ 229,400 | $ 192,400 |
Property, plant and equipment | 5,077,702 | 5,010,039 | |
Less accumulated depreciation | 2,126,492 | 1,886,133 | |
Property, plant and equipment, net | 2,951,210 | 3,123,906 | |
Inventories | |||
Raw materials | 419,608 | 764,883 | |
Supplies | 396,349 | 374,599 | |
Work in progress | 90,486 | 128,882 | |
Finished goods | 242,947 | 350,055 | |
Total inventories | $ 1,149,390 | 1,618,419 | |
Minimum | |||
Investments | |||
Ownership interest (as a percent) | 49.00% | ||
Maximum | |||
Investments | |||
Ownership interest (as a percent) | 50.00% | ||
Land and improvements | |||
Property, plant and equipment | |||
Property, plant and equipment | $ 328,739 | 334,583 | |
Buildings and improvements | |||
Property, plant and equipment | |||
Property, plant and equipment | $ 706,708 | 713,837 | |
Buildings and improvements | Minimum | |||
Property, plant and equipment | |||
Property, plant and equipment useful life | 10 years | ||
Buildings and improvements | Maximum | |||
Property, plant and equipment | |||
Property, plant and equipment useful life | 40 years | ||
Plant, machinery and equipment | |||
Property, plant and equipment | |||
Property, plant and equipment | $ 3,966,181 | 3,898,275 | |
Plant, machinery and equipment | Minimum | |||
Property, plant and equipment | |||
Property, plant and equipment useful life | 3 years | ||
Plant, machinery and equipment | Maximum | |||
Property, plant and equipment | |||
Property, plant and equipment useful life | 20 years | ||
Construction in progress | |||
Property, plant and equipment | |||
Property, plant and equipment | $ 76,074 | 63,344 | |
Other long-term assets | |||
Investments | |||
Investments | $ 6,400 | $ 18,400 |
Description of the Business a39
Description of the Business and Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Assets | ||||
Gross assets | $ 612,400 | $ 544,900 | $ 612,400 | |
Less accumulated amortization | 241,731 | 265,940 | 241,731 | |
Net assets | 370,669 | 278,960 | 370,669 | |
Amortization expense | 25,300 | 26,400 | $ 30,500 | |
Estimated amortization expense | ||||
2,016 | 22,039 | |||
2,017 | 19,257 | |||
2,018 | 16,723 | |||
2,019 | 15,184 | |||
2,020 | 13,365 | |||
Thereafter | 71,092 | |||
Total | 157,660 | |||
Impairment of Long-Lived Tangible and Definite-Lived Intangible Assets | ||||
Impairment charges | $ 428,500 | 260,000 | $ 308 | |
Weighted average | ||||
Intangible Assets | ||||
Amortization Period | 19 years | |||
Minnesota Ironmaking Operations | Other | ||||
Impairment of Long-Lived Tangible and Definite-Lived Intangible Assets | ||||
Impairment charges | 260,000 | |||
Minnesota Ironmaking Operations | Noncontrolling Interests | Other | ||||
Impairment of Long-Lived Tangible and Definite-Lived Intangible Assets | ||||
Impairment charges | 46,500 | |||
Trade names | ||||
Intangible Assets | ||||
Gross assets | 189,800 | $ 121,300 | 189,800 | |
Customer and scrap generator relationships | ||||
Intangible Assets | ||||
Gross assets | 419,400 | $ 420,400 | 419,400 | |
Customer and scrap generator relationships | Minimum | ||||
Intangible Assets | ||||
Amortization Period | 10 years | |||
Customer and scrap generator relationships | Maximum | ||||
Intangible Assets | ||||
Amortization Period | 25 years | |||
Customer and scrap generator relationships | Weighted average | ||||
Intangible Assets | ||||
Amortization Period | 19 years | |||
Trade names | ||||
Intangible Assets | ||||
Gross assets | $ 3,200 | $ 3,200 | $ 3,200 | |
Amortization Period | 12 years | |||
Trade names | Weighted average | ||||
Intangible Assets | ||||
Amortization Period | 12 years | |||
Other current assets | ||||
Impairment of Long-Lived Tangible and Definite-Lived Intangible Assets | ||||
Assets held for sale | $ 8,600 | |||
Asset impairment charges | ||||
Impairment of Long-Lived Tangible and Definite-Lived Intangible Assets | ||||
Assets held for sale, asset impairment charge | $ 10,300 |
Description of the Business a40
Description of the Business and Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill | |||
Goodwill | $ 397,470 | $ 745,158 | |
Equity-Based Compensation | |||
Compensation expense for stock options | 27,100 | 22,800 | $ 15,200 |
OmniSource | |||
Goodwill | |||
Cumulative goodwill impairment charges | 341,300 | ||
Goodwill decrease due to tax benefit related to the normal amortization of the component | 6,400 | ||
Metals Recycling Operations | OmniSource | |||
Goodwill | |||
Goodwill | 109,039 | 456,727 | |
Metals Recycling Operations | Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division | |||
Goodwill | |||
Goodwill | 95,000 | 95,000 | |
Metals Recycling Operations | Asset impairment charges | OmniSource | |||
Impairment of Goodwill and Indefinite Lived Intangible Assets | |||
Goodwill impairment charge | 341,300 | ||
Metals Recycling Operations | Asset impairment charges | Trade names | |||
Impairment of Goodwill and Indefinite Lived Intangible Assets | |||
Indefinite-lived intangible assets impairment charge | 68,500 | ||
Steel Operations | The Techs | |||
Goodwill | |||
Goodwill | 142,783 | 142,783 | |
Steel Operations | Roanoke Bar Division | |||
Goodwill | |||
Goodwill | 29,041 | 29,041 | |
Steel Operations | Columbus Flat Roll Division | |||
Goodwill | |||
Goodwill | 19,682 | 19,682 | |
Steel Fabrication Operations | New Millennium Building Systems | |||
Goodwill | |||
Goodwill | $ 1,925 | $ 1,925 |
Description of the Business a41
Description of the Business and Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 15, 2014 | Jun. 12, 2014 | |
Antidilutive securities excluded from computation of earnings per share amount | |||||||||||||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 1,500 | 0 | 0 | ||||||||||
Net Income (Loss) (Numerator) | |||||||||||||
Basic earnings per share - net income (in dollars) | $ (253,239) | $ 60,617 | $ 31,550 | $ 30,761 | $ (45,031) | $ 91,173 | $ 72,303 | $ 38,579 | $ (130,311) | $ 157,024 | $ 189,314 | ||
5.125% convertible senior notes, net of tax (in dollars) | 4,327 | 9,432 | |||||||||||
Diluted earnings per share - net income (in dollars) | $ (130,311) | $ 161,351 | $ 198,746 | ||||||||||
Shares (Denominator) | |||||||||||||
Weighted average common shares outstanding - basic (in shares) | 242,017 | 232,547 | 220,916 | ||||||||||
Dilutive stock options, deferred stock units, and restricted stock units (in shares) | 1,828 | 1,392 | |||||||||||
5.125% convertible senior notes, net of tax (in shares) | 7,703 | 16,688 | |||||||||||
Weighted average common shares outstanding - diluted (in shares) | 242,017 | 242,078 | 238,996 | ||||||||||
Per Share Amount | |||||||||||||
Basic earnings (loss) per share attributable to Steel Dynamics, Inc. stockholders (in dollars per share) | $ (1.04) | $ 0.25 | $ 0.13 | $ 0.13 | $ (0.19) | $ 0.38 | $ 0.32 | $ 0.17 | $ (0.54) | $ 0.68 | $ 0.86 | ||
Diluted earnings (loss) per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share) | $ (1.04) | $ 0.25 | $ 0.13 | $ 0.13 | $ (0.19) | $ 0.38 | $ 0.31 | $ 0.17 | $ (0.54) | $ 0.67 | $ 0.83 | ||
5.125% convertible senior notes | |||||||||||||
Per Share Amount | |||||||||||||
Stated interest rate (as a percent) | 5.125% | 5.125% | 5.125% | 5.125% | 5.125% | 5.125% | 5.125% |
Description of the Business a42
Description of the Business and Summary of Significant Accounting Policies - Credit Risk (Details) - Credit risk - entity | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration of credit risk | ||
Number of institutions exposed to credit risk | 1 | |
Accounts receivable | ||
Concentration of credit risk | ||
Percentage of consolidated net accounts receivable from related party | 5.00% | 4.00% |
Acquisitions (Details)
Acquisitions (Details) | Sep. 14, 2015USD ($) | Sep. 16, 2014USD ($)MT | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Steel Deck Facilities Asset Purchase | ||||
Business Acquisition Information | ||||
Net working capital purchased | $ 30,000,000 | |||
Number of deck facilities purchased | 2 | |||
Purchase price | $ 45,000,000 | |||
Severstal Columbus LLC | ||||
Business Acquisition Information | ||||
Business acquisition percentage | 100.00% | |||
Purchase price | $ 1,625,000,000 | |||
Working capital adjustments | $ 44,400,000 | |||
Additional production capacity due to acquisition (in million tons) | MT | 3.4 | |||
Unaudited pro forma results | ||||
Net sales | $ 10,355,774,000 | $ 9,193,344,000 | ||
Net Income attributable to Steel Dynamics, Inc. | $ 264,779,000 | $ 155,357,000 | ||
Senior Notes | Severstal Columbus LLC | ||||
Business Acquisition Information | ||||
Issuance of Senior Notes | $ 1,200,000,000 |
Long-Term Debt - By Issue (Deta
Long-Term Debt - By Issue (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Mar. 31, 2013 |
Long Term Debt | |||||
Total debt | $ 2,628,134 | $ 3,024,166 | |||
Less debt issuance costs | 33,478 | 42,317 | |||
Total amounts outstanding | 2,594,656 | 2,981,849 | |||
Less current maturities | 16,680 | 46,460 | |||
Long-term debt | 2,577,976 | 2,935,389 | |||
Accounting pronouncements reclassifications | |||||
Other assets | 16,936 | 35,852 | |||
Long-term debt | 2,577,976 | 2,935,389 | |||
Accounting Standards Update ("ASU") 2015-03 - Simplifying the Presentation of Debt Issuance Costs | Early adoption reclassification amounts | |||||
Long Term Debt | |||||
Long-term debt | (42,300) | ||||
Accounting pronouncements reclassifications | |||||
Other assets | (42,300) | ||||
Long-term debt | (42,300) | ||||
Senior term loan | |||||
Long Term Debt | |||||
Total debt | 237,500 | 250,000 | |||
6 1/8% senior notes, due 2019 | |||||
Long Term Debt | |||||
Total debt | 400,000 | $ 400,000 | |||
Total amounts outstanding | $ 400,000 | ||||
Stated interest rate (as a percent) | 6.125% | 6.125% | |||
7 5/8% senior notes, due 2020 | |||||
Long Term Debt | |||||
Total debt | $ 350,000 | ||||
Stated interest rate (as a percent) | 7.625% | 7.625% | 7.625% | ||
5.125% senior notes due 2021 | |||||
Long Term Debt | |||||
Total debt | $ 700,000 | $ 700,000 | |||
Total amounts outstanding | $ 700,000 | ||||
Stated interest rate (as a percent) | 5.125% | 5.125% | 5.125% | ||
6 3/8% Senior Notes, due 2022 | |||||
Long Term Debt | |||||
Total debt | $ 350,000 | $ 350,000 | |||
Total amounts outstanding | $ 350,000 | ||||
Stated interest rate (as a percent) | 6.375% | 6.375% | |||
5 1/4% Senior Notes due 2023 | |||||
Long Term Debt | |||||
Total debt | $ 400,000 | $ 400,000 | |||
Total amounts outstanding | $ 400,000 | ||||
Stated interest rate (as a percent) | 5.25% | 5.25% | 5.25% | ||
5.500% senior notes due 2024 | |||||
Long Term Debt | |||||
Total debt | $ 500,000 | $ 500,000 | |||
Total amounts outstanding | $ 500,000 | ||||
Stated interest rate (as a percent) | 5.50% | 5.50% | 5.50% | ||
Other obligations | |||||
Long Term Debt | |||||
Total debt | $ 40,634 | $ 74,166 |
Long-Term Debt - Financing Acti
Long-Term Debt - Financing Activity (Details) $ / shares in Units, $ in Thousands | Mar. 16, 2015USD ($) | Jun. 16, 2014USD ($) | Jun. 12, 2014USD ($)$ / sharesshares | Apr. 30, 2013USD ($) | Mar. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Mar. 31, 2015 | Sep. 30, 2014USD ($) | Jun. 15, 2014 |
Long Term Debt | |||||||||||
Repayments of debt | $ 612,534 | $ 635,578 | $ 517,978 | ||||||||
6 3/4% senior notes, due 2015 | |||||||||||
Long Term Debt | |||||||||||
Expenses recorded related to tender offer and early payoff of Senior Notes related to tender premiums, unamortized debt issuance cost write-off, and tender expenses | $ 2,600 | ||||||||||
Repayments of debt | $ 198,300 | $ 301,700 | |||||||||
Stated interest rate (as a percent) | 6.75% | ||||||||||
6 1/8% senior notes, due 2019 | |||||||||||
Long Term Debt | |||||||||||
Stated interest rate (as a percent) | 6.125% | 6.125% | |||||||||
7 5/8% senior notes, due 2020 | |||||||||||
Long Term Debt | |||||||||||
Associated premiums and related expenses recorded | $ 16,700 | ||||||||||
Redemption price of debt instrument (as a percent) | 103.813% | ||||||||||
Repayments of debt | $ 350,000 | ||||||||||
Stated interest rate (as a percent) | 7.625% | 7.625% | 7.625% | ||||||||
5.125% senior notes due 2021 | |||||||||||
Long Term Debt | |||||||||||
Debt issued | $ 700,000 | ||||||||||
Stated interest rate (as a percent) | 5.125% | 5.125% | 5.125% | ||||||||
6 3/8% Senior Notes, due 2022 | |||||||||||
Long Term Debt | |||||||||||
Stated interest rate (as a percent) | 6.375% | 6.375% | |||||||||
5 1/4% Senior Notes due 2023 | |||||||||||
Long Term Debt | |||||||||||
Debt issued | $ 400,000 | ||||||||||
Stated interest rate (as a percent) | 5.25% | 5.25% | 5.25% | ||||||||
5.500% senior notes due 2024 | |||||||||||
Long Term Debt | |||||||||||
Debt issued | $ 500,000 | ||||||||||
Stated interest rate (as a percent) | 5.50% | 5.50% | 5.50% | ||||||||
5.125% convertible senior notes | |||||||||||
Long Term Debt | |||||||||||
Repayments of debt | $ 15,700 | ||||||||||
Stated interest rate (as a percent) | 5.125% | 5.125% | 5.125% | 5.125% | 5.125% | ||||||
Principal amount of debt converted | $ 271,800 | ||||||||||
Convertible debt rate, basis for conversion | 0.5847310 | ||||||||||
Conversion price per share (in dollars per share) | $ / shares | $ 17.10 | ||||||||||
Shares issued upon conversion | shares | 15,893,457 |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facility (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Long Term Debt | |||
Repayments of debt | $ 612,534 | $ 635,578 | $ 517,978 |
Unpaid principal balance payment | 603,291 | ||
Senior secured revolving credit facility | |||
Long Term Debt | |||
Maximum borrowing capacity of credit facility | 1,200,000 | ||
Additional amount by which facility size can be increased | 750,000 | ||
Availability on the senior secured revolver | 1,200,000 | ||
Outstanding letters of credit and other obligations which reduce availability | 12,800 | ||
Borrowings outstanding | $ 0 | ||
Consolidated interest coverage ratio | item | 4.76 | ||
Leverage ratio | item | 2.99 | ||
Number of months expected to be in compliance with debt covenants | item | 12 | ||
Senior secured revolving credit facility | Minimum | |||
Long Term Debt | |||
Unused commitment fee (as a percent) | 0.225% | ||
Consolidated interest coverage ratio | item | 2.50 | ||
Leverage ratio | item | 3.50 | ||
Senior secured revolving credit facility | Minimum | LIBOR | |||
Long Term Debt | |||
Interest rate added to the base rate (as a percent) | 1.00% | ||
Senior secured revolving credit facility | Maximum | |||
Long Term Debt | |||
Unused commitment fee (as a percent) | 0.375% | ||
Leverage ratio | item | 5 | ||
Senior secured revolving credit facility | Maximum | LIBOR | |||
Long Term Debt | |||
Interest rate added to the base rate (as a percent) | 2.00% | ||
Senior secured revolving credit facility | Maximum | Prime | |||
Long Term Debt | |||
Interest rate added to the base rate (as a percent) | 1.00% | ||
Senior term loan | |||
Long Term Debt | |||
Debt issued | $ 250,000 | ||
Repayments of debt | 226,900 | ||
Unpaid principal balance payment | $ 190,600 | ||
Interest rate on debt instrument | 1.90% | ||
Senior term loan | Minimum | |||
Long Term Debt | |||
Required quarterly principal payments as a percentage of original principal amount | 1.25% |
Long-Term Debt - Senior Unsecur
Long-Term Debt - Senior Unsecured Notes (Details) $ in Thousands | Mar. 16, 2015 | Dec. 31, 2015USD ($)tranche | Mar. 31, 2015 | Dec. 31, 2014USD ($) | Sep. 30, 2014 | Mar. 31, 2013 |
Long Term Debt | ||||||
Outstanding Balance | $ 2,594,656 | $ 2,981,849 | ||||
Senior Notes | ||||||
Long Term Debt | ||||||
Number of tranches of senior unsecured notes outstanding | tranche | 5 | |||||
Senior Notes | Maximum | ||||||
Long Term Debt | ||||||
Maximum redemption of debt instrument (as a percent) | 35.00% | |||||
6 1/8% senior notes, due 2019 | ||||||
Long Term Debt | ||||||
Outstanding Balance | $ 400,000 | |||||
Stated interest rate (as a percent) | 6.125% | 6.125% | ||||
6 1/8% senior notes, due 2019 | Debt redemption August 15, 2016 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 103.063% | |||||
6 1/8% senior notes, due 2019 | Debt redemption August 15, 2017 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 101.531% | |||||
6 1/8% senior notes, due 2019 | Debt redemption August 15, 2018 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 100.00% | |||||
7 5/8% senior notes, due 2020 | ||||||
Long Term Debt | ||||||
Stated interest rate (as a percent) | 7.625% | 7.625% | 7.625% | |||
Redemption price of debt instrument (as a percent) | 103.813% | |||||
5.125% senior notes due 2021 | ||||||
Long Term Debt | ||||||
Outstanding Balance | $ 700,000 | |||||
Stated interest rate (as a percent) | 5.125% | 5.125% | 5.125% | |||
5.125% senior notes due 2021 | Debt Redemption before October 1, 2017 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 105.125% | |||||
5.125% senior notes due 2021 | Debt Redemption October 1, 2017 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 102.563% | |||||
5.125% senior notes due 2021 | Debt Redemption October 1, 2018 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 101.281% | |||||
5.125% senior notes due 2021 | Debt Redemption October 1, 2019 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 100.00% | |||||
6 3/8% Senior Notes, due 2022 | ||||||
Long Term Debt | ||||||
Outstanding Balance | $ 350,000 | |||||
Stated interest rate (as a percent) | 6.375% | 6.375% | ||||
6 3/8% Senior Notes, due 2022 | Debt redemption August 15, 2017 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 103.188% | |||||
6 3/8% Senior Notes, due 2022 | Debt redemption August 15, 2018 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 102.125% | |||||
6 3/8% Senior Notes, due 2022 | Debt redemption August 15, 2019 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 101.063% | |||||
6 3/8% Senior Notes, due 2022 | Debt redemption August 15, 2020 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 100.00% | |||||
5 1/4% Senior Notes due 2023 | ||||||
Long Term Debt | ||||||
Outstanding Balance | $ 400,000 | |||||
Stated interest rate (as a percent) | 5.25% | 5.25% | 5.25% | |||
5 1/4% Senior Notes due 2023 | Debt redemption before April 15, 2016 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 105.25% | |||||
5 1/4% Senior Notes due 2023 | Debt redemption April 15, 2018 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 102.625% | |||||
5 1/4% Senior Notes due 2023 | Debt redemption April 15, 2019 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 101.75% | |||||
5 1/4% Senior Notes due 2023 | Debt redemption April 15, 2020 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 100.875% | |||||
5 1/4% Senior Notes due 2023 | Debt redemption April 15, 2021 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 100.00% | |||||
5.500% senior notes due 2024 | ||||||
Long Term Debt | ||||||
Outstanding Balance | $ 500,000 | |||||
Stated interest rate (as a percent) | 5.50% | 5.50% | 5.50% | |||
5.500% senior notes due 2024 | Debt Redemption before October 1, 2017 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 105.50% | |||||
5.500% senior notes due 2024 | Debt Redemption October 1, 2019 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 102.75% | |||||
5.500% senior notes due 2024 | Debt Redemption October 1, 2020 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 101.833% | |||||
5.500% senior notes due 2024 | Debt Redemption October 1, 2021 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 100.917% | |||||
5.500% senior notes due 2024 | Debt Redemption October 1, 2022 | ||||||
Long Term Debt | ||||||
Redemption price of debt instrument (as a percent) | 100.00% |
Long-Term Debt - Other Secured
Long-Term Debt - Other Secured Obligations (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)subsidiary | Dec. 31, 2014USD ($) | |
Long Term Debt | ||
Outstanding principal balance | $ 2,628,134 | $ 3,024,166 |
Minnesota Economic Development State Loans | ||
Long Term Debt | ||
Stated interest rate (as a percent) | 3.50% | |
Interest rate percent after February 2017 | 5.00% | |
Outstanding principal balance | $ 24,000 | 25,700 |
Electric Utility Development Loans | ||
Long Term Debt | ||
Stated interest rate (as a percent) | 8.10% | |
Outstanding principal balance | $ 4,900 | 5,400 |
Senior secured revolving credit facility | ||
Long Term Debt | ||
Unused stand-by letter of credit | 1,200,000 | |
Maximum borrowing capacity of credit facility | 1,200,000 | |
Standby letters of credit | Electric Utility Development Loans | ||
Long Term Debt | ||
Unused stand-by letter of credit | $ 3,000 | |
Revolving credit facility entered into by a controlled subsidiary | ||
Long Term Debt | ||
Number of controlled subsidiaries entering into financing agreement | subsidiary | 1 | |
Revolving credit facility entered into by a controlled subsidiary | Subsidiaries | ||
Long Term Debt | ||
Outstanding principal balance | $ 0 | |
Maximum borrowing capacity of credit facility | $ 40,000 | |
Financing agreements entered into by a controlled subsidiary | ||
Long Term Debt | ||
Number of controlled subsidiaries entering into financing agreement | subsidiary | 1 | |
Financing agreements entered into by a controlled subsidiary | Subsidiaries | ||
Long Term Debt | ||
Interest rate percent after February 2017 | 6.00% | |
Outstanding principal balance | $ 10,100 | $ 10,700 |
Long-Term Debt - Outstanding De
Long-Term Debt - Outstanding Debt Maturities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Maturities of outstanding debt | |||
2,016 | $ 16,680,000 | ||
2,017 | 15,796,000 | ||
2,018 | 15,601,000 | ||
2,019 | 603,291,000 | ||
2,020 | 3,491,000 | ||
Thereafter | 1,973,275,000 | ||
Total debt | 2,628,134,000 | $ 3,024,166,000 | |
Interest costs | |||
Interest costs incurred | 154,400,000 | 139,700,000 | $ 132,300,000 |
Interest costs incurred capitalized | 457,000 | 2,500,000 | 4,600,000 |
Cash paid for interest | $ 160,200,000 | $ 114,300,000 | $ 129,500,000 |
Income Taxes - Summary (Details
Income Taxes - Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating loss carryforwards | |||
Increase in valuation allowance relates to realizability of certain state tax net operating loss carryforwards | $ 5,200 | ||
Income taxes paid | |||
Net cash paid (refunded) for taxes | (9,900) | $ 120,500 | $ 72,400 |
Income tax expense (benefit) | |||
Current income tax expense | 6,391 | 94,312 | 72,599 |
Deferred income tax expense (benefit) | (103,338) | (21,159) | 26,715 |
Total income tax expense | $ (96,947) | $ 73,153 | $ 99,314 |
Effective tax rate | |||
Statutory federal tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit (as a percent) | 6.30% | 4.60% | 3.80% |
Domestic manufacturing deduction (as a percent) | (4.80%) | (2.00%) | |
Noncontrolling interests (as a percent) | (2.10%) | 13.90% | 3.40% |
Federal research and development tax credits (as a percent) | (1.50%) | (2.50%) | |
Other permanent differences (as a percent) | 0.80% | (2.80%) | 0.10% |
Effective tax rate (as a percent) | 40.00% | 44.40% | 37.80% |
Deferred tax assets | |||
Accrued expenses and allowances | $ 21,205 | $ 22,780 | |
Inventories | 21,559 | 20,546 | |
Net operating loss carryforwards | 61,148 | 33,347 | |
Intangible Assets | 28,553 | ||
Other | 8,684 | 5,571 | |
Subtotal | 141,149 | 82,244 | |
Less: valuation allowance | (26,835) | (21,586) | |
Total net deferred tax assets | 114,314 | 60,658 | |
Deferred tax liabilities | |||
Property, plant and equipment | (511,596) | (449,939) | |
Intangible assets | (108,840) | ||
Other | (3,488) | (8,361) | |
Total deferred tax liabilities | (515,084) | (567,140) | |
Net deferred tax liability | (400,770) | (506,482) | |
Accounting pronouncements reclassifications | |||
Noncurrent deferred income tax liability | 400,770 | 506,482 | |
Accounting Standards Update ("ASU") 2015-17 - Income Taxes: Balance Sheet Classification of Deferred Taxes | Early adoption reclassification amounts | |||
Accounting pronouncements reclassifications | |||
Current deferred income tax assets | (35,500) | ||
Noncurrent deferred income tax liability | $ (35,500) | ||
OmniSource | Trade names | Goodwill | |||
Deferred tax liabilities | |||
Goodwill and Intangible Asset Impairment, Total | 409,800 | ||
Federal | |||
Operating loss carryforwards | |||
Net operating loss carryforwards | $ 69,700 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of beginning and ending balance of unrecognized tax benefits | |||
Balance at the beginning of the period | $ 17,338,000 | $ 26,564,000 | $ 22,245,000 |
Increases related to current year tax positions | 1,050,000 | 1,050,000 | |
Increases related to prior year tax positions | 81,000 | 653,000 | 3,760,000 |
Decreases related to prior year tax positions | (719,000) | (2,298,000) | (491,000) |
Settlements with taxing authorities | (70,000) | (8,631,000) | |
Lapses in statute of limitations | (639,000) | ||
Balance at the end of the period | 15,991,000 | $ 17,338,000 | $ 26,564,000 |
Unrecognized tax benefits that, if recognized, would impact effective tax rate | 11,700,000 | ||
Unrecognized tax benefits from the reduction of interest expense | 100,000 | ||
Accrued interest and penalties | 5,200,000 | ||
Minimum | |||
Reconciliation of beginning and ending balance of unrecognized tax benefits | |||
Expected payment of taxes as a result of audit settlement | 0 | ||
Maximum | |||
Reconciliation of beginning and ending balance of unrecognized tax benefits | |||
Expected payment of taxes as a result of audit settlement | $ 7,100,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shareholders' Equity | |||
Cash dividend declared | $ 133,227 | $ 108,630 | $ 97,375 |
Dividends declared per share (in dollars per share) | $ 0.55 | $ 0.46 | $ 0.44 |
Cash dividend paid | $ 127,569 | $ 105,379 | $ 94,812 |
Treasury Stock | |||
Remaining authorization to repurchase treasury stock (in shares) | 3.6 |
Equity-based Incentive Plans -
Equity-based Incentive Plans - Summary (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
May. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred Stock Units | |||||
Long term incentive compensation program | |||||
Granted (in shares) | 51,000 | 54,000 | 53,000 | ||
Number of RSU's | |||||
Granted (in shares) | 51,000 | 54,000 | 53,000 | ||
2006 Amended and Restated Equity Incentive Plan (Expired 2006 Plan) | |||||
Equity-based Incentive Plans | |||||
Additional number of shares authorized for issuance | 0 | ||||
2015 Equity Incentive Plan (2015 Plan) | |||||
Equity-based Incentive Plans | |||||
Additional number of shares authorized for issuance | 12,500,000 | ||||
Factor used for granting of stock options and stock appreciation rights against the share limit of the awards that are not full value awards (in shares) | 1 | ||||
Factor used for granting of RSUs, DSUs, restricted and unrestricted stock awards and performance awards against the share limit of the awards that are full value awards (in shares) | 2.09 | ||||
Shares available for issuance | 9,100,000 | ||||
2015 Equity Incentive Plan (2015 Plan) | Restricted Stock Units (RSUs) | |||||
Equity-based Incentive Plans | |||||
Vesting percentage | 100.00% | ||||
Eligible age for retirement | 59 years 6 months | ||||
Long term incentive compensation program | |||||
Granted (in shares) | 1,589,309 | 1,121,416 | 1,293,140 | ||
Number of RSU's | |||||
Outstanding at the beginning of the period (in shares) | 2,011,226 | 2,279,643 | 1,269,307 | ||
Granted (in shares) | 1,589,309 | 1,121,416 | 1,293,140 | ||
Vested (in shares) | (1,197,403) | (1,245,489) | (170,398) | ||
Forfeited (in shares) | (124,428) | (144,344) | (112,406) | ||
Outstanding at the end of the period (in dollars per share) | 2,278,704 | 2,011,226 | 2,279,643 | ||
Weighted Average Grant Date Fair Value | |||||
Outstanding, at the beginning of the period (in dollars per share) | $ 19.85 | $ 14.97 | $ 11.87 | ||
Granted (in dollars per share) | 16.70 | 21.82 | 18.16 | ||
Vested (in dollars per share) | 18.13 | 13.20 | 17.74 | ||
Forfeited (in dollars per share) | 19.89 | 15.51 | 12.48 | ||
Outstanding, at the end of the period (in dollars per share) | $ 18.55 | $ 19.85 | $ 14.97 | ||
Aggregate Intrinsic Value | |||||
Aggregate Intrinsic Value | $ 40,720 | $ 39,702 | $ 44,544 | $ 17,428 | |
Unrecognized Compensation | |||||
Unrecognized Compensation | $ 27,615 | 25,171 | 22,197 | $ 12,318 | |
Weighted average remaining life before vesting of the outstanding RSU's | 1 year 6 months | ||||
Fair value of vesting during the period | $ 21,400 | $ 24,600 | $ 3,300 | ||
Number of withheld shares | 427,000 | 444,000 | 63,000 | ||
2015 Equity Incentive Plan (2015 Plan) | Restricted Stock Units (RSUs) | Maximum | |||||
Equity-based Incentive Plans | |||||
Vesting period | 2 years | ||||
2015 Equity Incentive Plan (2015 Plan) | Employee Stock Option | |||||
Equity-based Incentive Plans | |||||
Vesting percentage | 100.00% | ||||
Vesting period | 6 months | ||||
Options exercise price as a percentage of fair value of common stock | 100.00% | ||||
2015 Equity Incentive Plan (2015 Plan) | Employee Stock Option | Maximum | |||||
Equity-based Incentive Plans | |||||
Term of award | 5 years | ||||
2015 Equity Incentive Plan (2015 Plan) | Performance Shares | Senior Executive Officers | |||||
Equity-based Incentive Plans | |||||
Performance period | 3 years | ||||
2015 Equity Incentive Plan (2015 Plan) | Performance Shares | Senior Executive Officers | Minimum | |||||
Equity-based Incentive Plans | |||||
Awards earned as percentage of specified compensation | 0.00% | ||||
2015 Equity Incentive Plan (2015 Plan) | Performance Shares | Senior Executive Officers | Maximum | |||||
Equity-based Incentive Plans | |||||
Awards earned as percentage of specified compensation | 100.00% | ||||
2015 Equity Incentive Plan (2015 Plan) | Performance Shares | Vesting Based On Performance | Senior Executive Officers | |||||
Equity-based Incentive Plans | |||||
Percentage of shares that vest immediately when performance earned | 33.30% | ||||
Performance period one | 1 year | ||||
2015 Equity Incentive Plan (2015 Plan) | Performance Shares | Vesting Based On Service | Senior Executive Officers | |||||
Equity-based Incentive Plans | |||||
Vesting period | 2 years | ||||
Performance period two | 2 years | ||||
2015 Equity Incentive Plan (2015 Plan) | One-year performance period transition award | 2013 Award | Senior Executive Officers | |||||
Long term incentive compensation program | |||||
Maximum Shares That Could Be Issued | 173,319 | ||||
Award Earned | 164,653 | ||||
2015 Equity Incentive Plan (2015 Plan) | One-year performance period transition award | 2013 Award | Performance/Service period one | Senior Executive Officers | |||||
Long term incentive compensation program | |||||
Awards Issued/Issuable | 54,885 | ||||
2015 Equity Incentive Plan (2015 Plan) | One-year performance period transition award | 2013 Award | Performance/Service period two | Senior Executive Officers | |||||
Long term incentive compensation program | |||||
Awards Issued/Issuable | 54,884 | ||||
2015 Equity Incentive Plan (2015 Plan) | One-year performance period transition award | 2013 Award | Performance/Service period three | Senior Executive Officers | |||||
Long term incentive compensation program | |||||
Awards Issued/Issuable | 54,884 | ||||
2015 Equity Incentive Plan (2015 Plan) | Two-year performance period transition award | 2013 Award | Senior Executive Officers | |||||
Long term incentive compensation program | |||||
Maximum Shares That Could Be Issued | 173,319 | ||||
Award Earned | 159,454 | ||||
2015 Equity Incentive Plan (2015 Plan) | Two-year performance period transition award | 2013 Award | Performance/Service period one | Senior Executive Officers | |||||
Long term incentive compensation program | |||||
Awards Issued/Issuable | 53,152 | ||||
2015 Equity Incentive Plan (2015 Plan) | Two-year performance period transition award | 2013 Award | Performance/Service period two | Senior Executive Officers | |||||
Long term incentive compensation program | |||||
Awards Issued/Issuable | 53,151 | ||||
2015 Equity Incentive Plan (2015 Plan) | Two-year performance period transition award | 2013 Award | Performance/Service period three | Senior Executive Officers | |||||
Long term incentive compensation program | |||||
Awards Issued/Issuable | 53,151 | ||||
2015 Equity Incentive Plan (2015 Plan) | Three-year performance period award | 2013 Award | Senior Executive Officers | |||||
Long term incentive compensation program | |||||
Maximum Shares That Could Be Issued | 173,319 | ||||
Award Earned | 149,056 | ||||
2015 Equity Incentive Plan (2015 Plan) | Three-year performance period award | 2013 Award | Performance/Service period one | Senior Executive Officers | |||||
Long term incentive compensation program | |||||
Awards Issued/Issuable | 49,686 | ||||
2015 Equity Incentive Plan (2015 Plan) | Three-year performance period award | 2013 Award | Performance/Service period two | Senior Executive Officers | |||||
Long term incentive compensation program | |||||
Awards Issued/Issuable | 49,686 | ||||
2015 Equity Incentive Plan (2015 Plan) | Three-year performance period award | 2013 Award | Performance/Service period three | Senior Executive Officers | |||||
Long term incentive compensation program | |||||
Awards Issued/Issuable | 49,684 | ||||
2015 Equity Incentive Plan (2015 Plan) | Three-year performance period award | 2014 Award | Senior Executive Officers | |||||
Long term incentive compensation program | |||||
Maximum Shares That Could Be Issued | 269,531 | ||||
2015 Equity Incentive Plan (2015 Plan) | Three-year performance period award | 2015 Award | Senior Executive Officers | |||||
Long term incentive compensation program | |||||
Maximum Shares That Could Be Issued | 301,759 |
Equity-based Incentive Plans 54
Equity-based Incentive Plans - Stock Option Activity (Details) - Employee Stock Option - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity-Based Incentive Plans | |||
Granted (in shares) | 0 | 0 | 0 |
Options | |||
Balance at the beginning of the period (in shares) | 1,398,515 | 3,257,170 | 7,073,709 |
Exercised (in shares) | (753,159) | (1,773,872) | (3,134,953) |
Forfeited (in shares) | (49,411) | (84,783) | (681,586) |
Balance at the end of the period (in shares) | 595,945 | 1,398,515 | 3,257,170 |
Weighted Average Exercise Price | |||
Balance at the beginning of the period (in dollars per share) | $ 14.62 | $ 14.84 | $ 14.56 |
Exercised (in dollars per share) | 14.75 | 15.01 | 11.02 |
Forfeited (in dollars per share) | 15.02 | 14.98 | 29.52 |
Balance at the end of the period (in dollars per share) | 14.43 | 14.62 | 14.84 |
Weighted Average Fair Value | |||
Balance at the beginning of the period (in dollars per share) | 5.61 | 5.58 | 5.30 |
Exercised (in dollars per share) | 5.75 | 5.57 | 4.19 |
Forfeited (in dollars per share) | 5.87 | 5.45 | 9.01 |
Balance at the end of the period (in dollars per share) | $ 5.41 | $ 5.61 | $ 5.58 |
Equity-based Incentive Plans 55
Equity-based Incentive Plans - Stock Options Outstanding (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Range of Exercise Price $10 to $15 | |
Stock options outstanding and exercisable by exercise price range | |
Exercise price per share, low end of the range (in dollars per share) | $ 10 |
Exercise price per share, high end of the range (in dollars per share) | $ 15 |
Exercisable Options (in shares) | shares | 333,954 |
Weighted Average Remaining Contractual Life | 10 months 21 days |
Weighted Average Exercise Price of Exercisable Outstanding Options (in dollars per share) | $ 12.54 |
Range of Exercise Price $15 to $20 | |
Stock options outstanding and exercisable by exercise price range | |
Exercise price per share, low end of the range (in dollars per share) | 15 |
Exercise price per share, high end of the range (in dollars per share) | $ 20 |
Exercisable Options (in shares) | shares | 261,991 |
Weighted Average Remaining Contractual Life | 4 months 21 days |
Weighted Average Exercise Price of Exercisable Outstanding Options (in dollars per share) | $ 16.85 |
Equity-based Incentive Plans 56
Equity-based Incentive Plans - Plan Descriptions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Share-based Compensation Disclosures | |||
Total expenses for the plan | $ 27,100,000 | $ 22,800,000 | $ 15,200,000 |
Employee Stock Option | |||
Equity-Based Incentive Plans | |||
Aggregate intrinsic value of options exercised (in dollars) | 4,000,000 | $ 9,300,000 | $ 18,700,000 |
Aggregate intrinsic value of options that are currently outstanding and that are expected to be exercised (in dollars) | 2,000,000 | ||
Unrecognized stock option compensation expense | $ 0 | ||
Other Share-based Compensation Disclosures | |||
Granted (in shares) | 0 | 0 | 0 |
2013 Executive Incentive Compensation Plan | |||
Equity-Based Incentive Plans | |||
Original number of shares authorized for issuance | 2,500,000 | ||
Remaining number of shares available for issuance | 2,300,000 | ||
2013 Executive Incentive Compensation Plan | 2015 Award | |||
Other Share-based Compensation Disclosures | |||
Granted (in shares) | 0 | ||
2013 Executive Incentive Compensation Plan | 2014 Award | |||
Other Share-based Compensation Disclosures | |||
Granted (in shares) | 221,900 | ||
Market value of award | $ 3,800,000 | ||
2013 Executive Incentive Compensation Plan | 2013 Award | |||
Other Share-based Compensation Disclosures | |||
Granted (in shares) | 9,500 | ||
Market value of award | $ 157,000 | ||
2013 Executive Incentive Compensation Plan | Vesting Based On Performance | |||
Equity-Based Incentive Plans | |||
Percentage Vested Immediately Based On Performance Earned | 33.30% | ||
2013 Executive Incentive Compensation Plan | Vesting Based On Service | |||
Equity-Based Incentive Plans | |||
Vesting period | 2 years | ||
Employee Stock Purchase Plan 2014 | |||
Other Share-based Compensation Disclosures | |||
Maximum annual allowable payroll deduction per employee | $ 10,400 | ||
Employer's matching contribution of employees' payroll deductions (as a percent) | 10.00% | ||
Total expenses for the plan | $ 468,000 | $ 376,000 | $ 354,000 |
Derivative Financial Instrume57
Derivative Financial Instruments (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)lbMT | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Designated as hedging instrument | |||
Gains or losses on derivative instruments, statement of income | |||
Amount of gain (loss) recognized in income on related hedged items | $ 3,353,000 | $ (1,923,000) | $ (7,317,000) |
Commodity contract | Futures | |||
Fair values of derivative instruments, balance sheet | |||
Commodity futures, asset derivatives (in dollars) | 1,765,000 | 5,312,000 | |
Commodity futures, liability derivatives (in dollars) | 3,925,000 | 1,539,000 | |
Commodity contract | Futures | Other current assets | |||
Fair values of derivative instruments, balance sheet | |||
Fair value of derivatives including required margin deposits | 3,400,000 | 7,600,000 | |
Commodity contract | Futures | Designated as hedging instrument | |||
Gains or losses on derivative instruments, statement of income | |||
Ineffectiveness - amount of gain (loss) recognized in income on related hedged items | 90,000 | 206,000 | (206,000) |
Gain (loss) excluded from hedge effectiveness testing | (991,000) | 649,000 | 398,000 |
Commodity contract | Futures | Designated as hedging instrument | Cost of goods sold | |||
Gains or losses on derivative instruments, statement of income | |||
Amount of gain (loss) recognized in income on derivatives | (4,254,000) | 2,778,000 | 7,509,000 |
Commodity contract | Futures | Designated as hedging instrument | Other current assets | |||
Fair values of derivative instruments, balance sheet | |||
Commodity futures, asset derivatives (in dollars) | 857,000 | 3,180,000 | |
Commodity futures, liability derivatives (in dollars) | 2,860,000 | 913,000 | |
Commodity contract | Futures | Not designated as hedging instrument | Cost of goods sold | |||
Gains or losses on derivative instruments, statement of income | |||
Amount of gain (loss) recognized in income on derivatives | 16,261,000 | 14,988,000 | 2,097,000 |
Commodity contract | Futures | Not designated as hedging instrument | Other current assets | |||
Fair values of derivative instruments, balance sheet | |||
Commodity futures, asset derivatives (in dollars) | 908,000 | 2,132,000 | |
Commodity futures, liability derivatives (in dollars) | $ 1,065,000 | 626,000 | |
Commodity contract | Futures | Aluminum | Long | |||
Commodity contract commitments | |||
Commodity contract (in MT/Lbs) | MT | 2,475 | ||
Commodity contract | Futures | Aluminum | Short | |||
Commodity contract commitments | |||
Commodity contract (in MT/Lbs) | MT | 2,825 | ||
Commodity contract | Futures | Copper | Long | |||
Commodity contract commitments | |||
Commodity contract (in MT/Lbs) | MT | 8,985 | ||
Commodity contract | Futures | Copper | Short | |||
Commodity contract commitments | |||
Commodity contract (in MT/Lbs) | MT | 14,144 | ||
Commodity contract | Futures | Silver | Short | |||
Commodity contract commitments | |||
Commodity contract (in MT/Lbs) | lb | 343 | ||
Firm commitments | Designated as hedging instrument | Cost of goods sold | |||
Gains or losses on derivative instruments, statement of income | |||
Amount of gain (loss) recognized in income on related hedged items | $ 2,084,000 | 1,488,000 | 120,000 |
Inventory | Designated as hedging instrument | Cost of goods sold | |||
Gains or losses on derivative instruments, statement of income | |||
Amount of gain (loss) recognized in income on related hedged items | $ 1,269,000 | $ (3,411,000) | $ (7,437,000) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets and liabilities subject to fair value measurements | ||
Outstanding Balance | $ 2,594,656 | $ 2,981,849 |
Commodity contract | Futures | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 1,765 | 5,312 |
Commodity futures - financial liabilities | 3,925 | 1,539 |
Recurring | Level 2 | ||
Assets and liabilities subject to fair value measurements | ||
Fair value of long-term debt, including current maturities | 2,700,000 | 3,100,000 |
Recurring | Level 2 | Commodity contract | Futures | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 1,765 | 5,312 |
Commodity futures - financial liabilities | 3,925 | 1,539 |
Recurring | Total | Commodity contract | Futures | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 1,765 | 5,312 |
Commodity futures - financial liabilities | $ 3,925 | $ 1,539 |
Commitments and Contingencies59
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)company | |
Commitment and contingencies | |
Number of other remaining steel manufacturing company defendants served with a class action antitrust complaint | company | 2 |
Number of original steel manufacturing company defendants served with a class action antitrust complaint | company | 8 |
Company's commitments for agreements with take or pay or other similar commitment provisions | |
Outstanding construction-related commitments | $ 69,600 |
Commitments with suppliers "take or pay" | |
Company's commitments for agreements with take or pay or other similar commitment provisions | |
2,016 | 224,850 |
2,017 | 32,120 |
2,018 | 18,636 |
2,019 | 20,059 |
2,020 | 17,099 |
Thereafter | 66,600 |
Total | $ 379,364 |
Physical commodity requirements utilization period | 3 years |
Commitments with suppliers "take or pay" | Maximum | |
Commitment and contingencies | |
Commodity actual usage period | 24 months |
Commodity transportation requirements period | 4 years |
Commodity transportation requirements period for air products | 13 years |
Transactions with Affiliated 60
Transactions with Affiliated Companies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Transactions with affiliated companies | |||
Sales | $ 187,178 | $ 274,385 | $ 285,823 |
Accounts receivable related parties | 34,272 | 42,990 | |
Capital expenditures | 114,501 | 111,785 | 186,843 |
Heidtman Steel Products (Heidtman) | |||
Transactions with affiliated companies | |||
Sales | $ 162,742 | $ 234,608 | $ 236,075 |
Percentage of consolidated net sales | 2.00% | 3.00% | 3.00% |
Accounts receivable related parties | $ 30,627 | $ 35,447 | $ 51,760 |
Purchases | 11,429 | 7,639 | 5,562 |
Accounts payable | 431 | 236 | 391 |
Other smaller affiliated companies | |||
Transactions with affiliated companies | |||
Sales | 24,436 | 39,777 | 49,748 |
Accounts receivable related parties | 3,645 | 7,543 | 4,632 |
Purchases | 178,102 | 279,177 | 111,048 |
Accounts payable | $ 6,199 | $ 21,029 | $ 9,936 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Retirement Plans | |||
Total expenses recognized under 401 (k) Plan | $ 21 | $ 39.4 | $ 25.2 |
Percentage of employer's profit sharing contribution | 8.00% | 8.00% | 8.00% |
Profit sharing component | $ 17.7 | $ 36.3 | $ 23.1 |
Employer's contribution to profit sharing plans for eligible employees | $ 14.1 | $ 29 | $ 18.5 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases | |||
Payment for operating leases | $ 15,100 | $ 16,000 | $ 13,500 |
Future minimum payments | |||
2,016 | 14,699 | ||
2,017 | 9,614 | ||
2,018 | 7,429 | ||
2,019 | 6,609 | ||
2,020 | 4,623 | ||
Thereafter | 6,686 | ||
Total | $ 49,660 |
Segment Information - Results (
Segment Information - Results (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information | |||||||||||
Number of reporting segments | segment | 3 | ||||||||||
Total net sales | $ 1,591,046 | $ 1,950,923 | $ 2,005,007 | $ 2,047,435 | $ 2,517,093 | $ 2,339,016 | $ 2,069,761 | $ 1,830,082 | $ 7,594,411 | $ 8,755,952 | $ 7,372,924 |
Operating income (loss) | (381,143) | $ 131,029 | $ 77,559 | $ 99,771 | (81,160) | $ 188,643 | $ 131,905 | $ 80,932 | (72,784) | 320,320 | 386,525 |
Income (loss) before income taxes | (242,117) | 164,803 | 262,830 | ||||||||
Depreciation and amortization | 294,595 | 263,325 | 230,928 | ||||||||
Capital expenditures | 114,501 | 111,785 | 186,843 | ||||||||
Assets | 6,202,082 | 7,233,159 | 6,202,082 | 7,233,159 | 5,888,534 | ||||||
Liabilities | 3,530,631 | 4,311,292 | 3,530,631 | 4,311,292 | 3,276,165 | ||||||
U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 7,139,898 | 8,272,958 | 6,955,726 | ||||||||
Non-U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 454,513 | 482,994 | 417,198 | ||||||||
Steel Operations | |||||||||||
Segment Reporting Information | |||||||||||
Capital expenditures | 71,752 | 62,807 | 126,772 | ||||||||
Metals Recycling Operations | |||||||||||
Segment Reporting Information | |||||||||||
Capital expenditures | 21,874 | 22,223 | 32,354 | ||||||||
Steel Fabrication Operations | |||||||||||
Segment Reporting Information | |||||||||||
Capital expenditures | 3,395 | 3,027 | 2,166 | ||||||||
Steel Fabrication Operations | Non-U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 2,051 | ||||||||||
Other | |||||||||||
Segment Reporting Information | |||||||||||
Capital expenditures | 17,480 | 23,728 | 25,551 | ||||||||
Operating Segment | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 7,594,411 | 8,755,952 | 7,372,924 | ||||||||
Operating Segment | Steel Operations | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 5,422,475 | 5,821,578 | 4,684,847 | ||||||||
Operating income (loss) | 403,216 | 683,609 | 516,125 | ||||||||
Income (loss) before income taxes | 312,402 | 614,653 | 461,151 | ||||||||
Depreciation and amortization | 205,827 | 149,064 | 116,533 | ||||||||
Assets | 3,827,108 | 4,511,436 | 3,827,108 | 4,511,436 | 2,760,752 | ||||||
Liabilities | 603,505 | 776,804 | 603,505 | 776,804 | 572,573 | ||||||
Operating Segment | Steel Operations | Other segments | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 218,963 | 279,835 | 223,390 | ||||||||
Operating Segment | Steel Operations | U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 4,935,549 | 5,300,762 | 4,256,077 | ||||||||
Operating Segment | Steel Operations | Non-U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 267,963 | 240,981 | 205,380 | ||||||||
Operating Segment | Metals Recycling Operations | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 2,337,716 | 3,539,206 | 3,274,866 | ||||||||
Operating income (loss) | (448,137) | 26,014 | 41,949 | ||||||||
Income (loss) before income taxes | (465,426) | 5,670 | 15,831 | ||||||||
Depreciation and amortization | 65,640 | 75,242 | 80,483 | ||||||||
Assets | 1,067,672 | 1,767,820 | 1,067,672 | 1,767,820 | 1,840,490 | ||||||
Liabilities | 250,719 | 352,271 | 250,719 | 352,271 | 364,231 | ||||||
Operating Segment | Metals Recycling Operations | Other segments | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 904,713 | 1,312,379 | 997,316 | ||||||||
Operating Segment | Metals Recycling Operations | U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 1,249,061 | 1,985,927 | 2,066,572 | ||||||||
Operating Segment | Metals Recycling Operations | Non-U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 183,942 | 240,900 | 210,978 | ||||||||
Operating Segment | Steel Fabrication Operations | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 673,399 | 631,808 | 439,655 | ||||||||
Operating income (loss) | 115,947 | 51,894 | 7,003 | ||||||||
Income (loss) before income taxes | 108,795 | 45,376 | 827 | ||||||||
Depreciation and amortization | 9,587 | 9,712 | 8,736 | ||||||||
Assets | 341,276 | 301,156 | 341,276 | 301,156 | 270,160 | ||||||
Liabilities | 88,439 | 42,074 | 88,439 | 42,074 | 22,648 | ||||||
Operating Segment | Steel Fabrication Operations | Other segments | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 25 | 58 | 1,401 | ||||||||
Operating Segment | Steel Fabrication Operations | U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 671,323 | 631,750 | 438,254 | ||||||||
Operating Segment | Other | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 314,847 | 468,505 | 299,079 | ||||||||
Operating income (loss) | (148,784) | (445,549) | (177,939) | ||||||||
Income (loss) before income taxes | (202,862) | (505,248) | (214,366) | ||||||||
Depreciation and amortization | 13,746 | 29,512 | 25,381 | ||||||||
Assets | 1,050,506 | 793,389 | 1,050,506 | 793,389 | 1,106,856 | ||||||
Liabilities | 2,667,189 | 3,270,878 | 2,667,189 | 3,270,878 | 2,394,072 | ||||||
Operating Segment | Other | Other segments | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 30,325 | 112,873 | 103,416 | ||||||||
Operating Segment | Other | U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 283,965 | 354,519 | 194,823 | ||||||||
Operating Segment | Other | Non-U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 557 | 1,113 | 840 | ||||||||
Eliminations | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | (1,154,026) | (1,705,145) | (1,325,523) | ||||||||
Operating income (loss) | 4,974 | 4,352 | (613) | ||||||||
Income (loss) before income taxes | 4,974 | 4,352 | (613) | ||||||||
Depreciation and amortization | (205) | (205) | (205) | ||||||||
Assets | (84,480) | (140,642) | (84,480) | (140,642) | (89,724) | ||||||
Liabilities | $ (79,221) | $ (130,735) | (79,221) | (130,735) | (77,359) | ||||||
Eliminations | Other segments | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | $ (1,154,026) | $ (1,705,145) | $ (1,325,523) |
Segment Information - Other Foo
Segment Information - Other Footnote (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating income (loss) | ||||||||||||
Corporate SG & A | $ (327,626) | $ (316,214) | $ (272,777) | |||||||||
Profit sharing | (23,064) | (42,126) | (27,764) | |||||||||
Operating income (loss) | $ (381,143) | $ 131,029 | $ 77,559 | $ 99,771 | $ (81,160) | $ 188,643 | $ 131,905 | $ 80,932 | (72,784) | 320,320 | 386,525 | |
Impairment charges | (428,500) | (260,000) | (308) | |||||||||
Assets | ||||||||||||
Cash and equivalents | 727,032 | 361,363 | 727,032 | 361,363 | 395,156 | $ 375,917 | ||||||
Accounts receivable | 613,605 | 902,825 | 613,605 | 902,825 | ||||||||
Inventories | 1,149,390 | 1,618,419 | 1,149,390 | 1,618,419 | ||||||||
Property, plant and equipment, net | 2,951,210 | 3,123,906 | 2,951,210 | 3,123,906 | ||||||||
Other | 36,501 | 55,164 | 36,501 | 55,164 | ||||||||
Total assets | 6,202,082 | 7,233,159 | 6,202,082 | 7,233,159 | 5,888,534 | |||||||
Liabilities | ||||||||||||
Accounts payable | 283,355 | 511,056 | 283,355 | 511,056 | ||||||||
Income taxes payable | 2,023 | 6,086 | 2,023 | 6,086 | ||||||||
Accrued interest | 38,502 | 50,405 | 38,502 | 50,405 | ||||||||
Long-term debt | 2,594,656 | 2,981,849 | 2,594,656 | 2,981,849 | ||||||||
Deferred income taxes | 400,770 | 506,482 | 400,770 | 506,482 | ||||||||
Liabilities | 3,530,631 | 4,311,292 | 3,530,631 | 4,311,292 | 3,276,165 | |||||||
Minnesota Ironmaking Operations | ||||||||||||
Operating income (loss) | ||||||||||||
Operating income (loss) | (260,000) | |||||||||||
Other | Minnesota Ironmaking Operations | ||||||||||||
Operating income (loss) | ||||||||||||
Impairment charges | (260,000) | |||||||||||
Severstal Columbus LLC | ||||||||||||
Acquisitions | ||||||||||||
Acquisition and related costs | $ 25,200 | 25,200 | ||||||||||
Operating Segment | Other | ||||||||||||
Operating income (loss) | ||||||||||||
Corporate SG & A | (34,700) | (42,000) | (36,000) | |||||||||
Company-wide equity- based compensation | (27,400) | (22,800) | (15,200) | |||||||||
Profit sharing | (17,700) | (36,800) | (23,400) | |||||||||
Other, net | (13,300) | (14,100) | (10,000) | |||||||||
Operating income (loss) | (148,784) | (445,549) | (177,939) | |||||||||
Assets | ||||||||||||
Cash and equivalents | 641,900 | 272,300 | 641,900 | 272,300 | 328,300 | |||||||
Accounts receivable | 18,800 | 36,800 | 18,800 | 36,800 | 24,700 | |||||||
Inventories | 35,100 | 95,200 | 35,100 | 95,200 | 91,200 | |||||||
Property, plant and equipment, net | 306,000 | 313,600 | 306,000 | 313,600 | 579,900 | |||||||
Intra-company debt | 6,200 | 7,100 | 6,200 | 7,100 | 8,000 | |||||||
Other | 42,500 | 68,400 | 42,500 | 68,400 | 74,800 | |||||||
Total assets | 1,050,506 | 793,389 | 1,050,506 | 793,389 | 1,106,856 | |||||||
Liabilities | ||||||||||||
Accounts payable | 102,300 | 126,900 | 102,300 | 126,900 | 82,800 | |||||||
Income taxes payable | 2,200 | 6,100 | 2,200 | 6,100 | 4,000 | |||||||
Accrued interest | 38,300 | 50,200 | 38,300 | 50,200 | 31,200 | |||||||
Accrued profit sharing | 17,700 | 36,800 | 17,700 | 36,800 | 23,400 | |||||||
Long-term debt | 2,588,700 | 2,975,000 | 2,588,700 | 2,975,000 | 2,074,800 | |||||||
Deferred income taxes | (109,000) | (109,000) | ||||||||||
Deferred income taxes | 36,900 | 36,900 | 139,100 | |||||||||
Other | 27,000 | 39,000 | 27,000 | 39,000 | 38,800 | |||||||
Liabilities | 2,667,189 | 3,270,878 | 2,667,189 | 3,270,878 | 2,394,072 | |||||||
Operating Segment | Other | MINNESOTA | Minnesota Ironmaking Operations | ||||||||||||
Operating income (loss) | ||||||||||||
Operating income (loss) | (55,700) | (69,800) | (93,300) | |||||||||
Impairment charges | (260,000) | |||||||||||
Operating Segment | Metals Recycling Operations | ||||||||||||
Operating income (loss) | ||||||||||||
Operating income (loss) | (448,137) | 26,014 | 41,949 | |||||||||
Impairment charges | (428,500) | (428,500) | ||||||||||
Assets | ||||||||||||
Total assets | 1,067,672 | 1,767,820 | 1,067,672 | 1,767,820 | 1,840,490 | |||||||
Liabilities | ||||||||||||
Liabilities | $ 250,719 | $ 352,271 | $ 250,719 | $ 352,271 | $ 364,231 |
Segment Information - Eliminati
Segment Information - Eliminations Footnote (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating income (loss) | |||||||||||
Gross profit | $ 144,207 | $ 228,726 | $ 171,743 | $ 187,042 | $ 291,624 | $ 288,512 | $ 222,771 | $ 163,304 | $ 731,718 | $ 966,211 | $ 719,144 |
Assets elimination | |||||||||||
Accounts receivable | 613,605 | 902,825 | 613,605 | 902,825 | |||||||
Other | 36,501 | 55,164 | 36,501 | 55,164 | |||||||
Total assets | 6,202,082 | 7,233,159 | 6,202,082 | 7,233,159 | 5,888,534 | ||||||
Liabilities elimination | |||||||||||
Accounts payable | 283,355 | 511,056 | 283,355 | 511,056 | |||||||
Liabilities | 3,530,631 | 4,311,292 | 3,530,631 | 4,311,292 | 3,276,165 | ||||||
Eliminations | |||||||||||
Operating income (loss) | |||||||||||
Gross profit | 5,000 | 4,400 | (600) | ||||||||
Assets elimination | |||||||||||
Accounts receivable | (74,900) | (125,100) | (74,900) | (125,100) | (69,000) | ||||||
Elimination of intra-company debt | (6,200) | (7,100) | (6,200) | (7,100) | (8,000) | ||||||
Other | (3,400) | (8,400) | (3,400) | (8,400) | (12,700) | ||||||
Total assets | (84,480) | (140,642) | (84,480) | (140,642) | (89,724) | ||||||
Liabilities elimination | |||||||||||
Accounts payable | (74,900) | (125,200) | (74,900) | (125,200) | (69,000) | ||||||
Elimination of intra-company debt | (6,200) | (7,100) | (6,200) | (7,100) | (8,000) | ||||||
Other | 1,900 | 1,600 | 1,900 | 1,600 | (400) | ||||||
Liabilities | $ (79,221) | $ (130,735) | $ (79,221) | $ (130,735) | $ (77,359) |
Condensed Consolidating Infor66
Condensed Consolidating Information - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Consolidating Balance Sheets | ||||
Ownership interest in subsidiaries (as a percent) | 100.00% | |||
Cash and equivalents | $ 727,032 | $ 361,363 | $ 395,156 | $ 375,917 |
Accounts receivable, net | 613,605 | 902,825 | ||
Inventories | 1,149,390 | 1,618,419 | ||
Other current assets | 47,914 | 55,655 | ||
Total current assets | 2,537,941 | 2,938,262 | ||
Property, plant and equipment, net | 2,951,210 | 3,123,906 | ||
Intangible assets, net | 278,960 | 370,669 | ||
Goodwill | 397,470 | 745,158 | ||
Other assets, including investments in subs | 36,501 | 55,164 | ||
Total assets | 6,202,082 | 7,233,159 | 5,888,534 | |
Accounts payable | 283,355 | 511,056 | ||
Accrued expenses | 235,255 | 293,066 | ||
Current maturities of long-term debt | 16,680 | 46,460 | ||
Total current liabilities | 535,290 | 850,582 | ||
Long-term debt | 2,577,976 | 2,935,389 | ||
Other liabilities | 417,365 | 525,321 | ||
Redeemable noncontrolling interests | 126,340 | 126,340 | ||
Common stock | 638 | 635 | ||
Treasury stock | (396,455) | (398,898) | ||
Additional paid-in capital | 1,110,253 | 1,083,435 | ||
Retained earnings (deficit) | 1,965,291 | 2,227,843 | ||
Total Steel Dynamics, Inc. equity | 2,679,727 | 2,913,015 | ||
Noncontrolling interests | (134,616) | (117,488) | ||
Total equity | 2,545,111 | 2,795,527 | 2,495,855 | 2,377,842 |
Total liabilities and equity | 6,202,082 | 7,233,159 | ||
Reportable legal entity | Parent | ||||
Condensed Consolidating Balance Sheets | ||||
Cash and equivalents | 636,877 | 265,313 | 320,866 | 322,707 |
Accounts receivable, net | 200,094 | 321,493 | ||
Inventories | 539,963 | 662,970 | ||
Other current assets | 21,654 | 59,243 | ||
Total current assets | 1,398,588 | 1,309,019 | ||
Property, plant and equipment, net | 958,212 | 1,002,407 | ||
Other assets, including investments in subs | 2,941,710 | 3,858,706 | ||
Total assets | 5,298,510 | 6,170,132 | ||
Accounts payable | 100,751 | 151,517 | ||
Accrued expenses | 141,552 | 191,433 | ||
Current maturities of long-term debt | 13,122 | 13,073 | ||
Total current liabilities | 255,425 | 356,023 | ||
Long-term debt | 2,546,606 | 2,900,375 | ||
Other liabilities | (183,248) | 719 | ||
Common stock | 638 | 635 | ||
Treasury stock | (396,455) | (398,898) | ||
Additional paid-in capital | 1,110,253 | 1,083,435 | ||
Retained earnings (deficit) | 1,965,291 | 2,227,843 | ||
Total Steel Dynamics, Inc. equity | 2,679,727 | 2,913,015 | ||
Total equity | 2,679,727 | 2,913,015 | ||
Total liabilities and equity | 5,298,510 | 6,170,132 | ||
Reportable legal entity | Guarantors | ||||
Condensed Consolidating Balance Sheets | ||||
Cash and equivalents | 81,976 | 81,690 | 61,148 | 41,675 |
Accounts receivable, net | 1,056,285 | 1,176,849 | ||
Inventories | 573,924 | 862,796 | ||
Other current assets | 25,415 | 8,416 | ||
Total current assets | 1,737,600 | 2,129,751 | ||
Property, plant and equipment, net | 1,703,932 | 1,826,208 | ||
Intangible assets, net | 278,960 | 370,669 | ||
Goodwill | 397,470 | 745,158 | ||
Other assets, including investments in subs | 10,040 | 24,810 | ||
Total assets | 4,128,002 | 5,096,596 | ||
Accounts payable | 183,344 | 371,037 | ||
Accrued expenses | 185,873 | 166,101 | ||
Current maturities of long-term debt | 700 | 777 | ||
Total current liabilities | 369,917 | 537,915 | ||
Long-term debt | 361 | 624 | ||
Other liabilities | 1,342,541 | 1,807,989 | ||
Common stock | 1,727,859 | 1,727,859 | ||
Additional paid-in capital | 117,737 | 117,737 | ||
Retained earnings (deficit) | 569,587 | 904,472 | ||
Total Steel Dynamics, Inc. equity | 2,415,183 | 2,750,068 | ||
Total equity | 2,415,183 | 2,750,068 | ||
Total liabilities and equity | 4,128,002 | 5,096,596 | ||
Reportable legal entity | Combined Non-Guarantors | ||||
Condensed Consolidating Balance Sheets | ||||
Cash and equivalents | 8,179 | 14,360 | $ 13,142 | $ 11,535 |
Accounts receivable, net | 29,775 | 44,696 | ||
Inventories | 35,004 | 94,916 | ||
Other current assets | 1,676 | 6,465 | ||
Total current assets | 74,634 | 160,437 | ||
Property, plant and equipment, net | 291,077 | 297,505 | ||
Other assets, including investments in subs | 6,137 | 6,255 | ||
Total assets | 371,848 | 464,197 | ||
Accounts payable | 68,948 | 98,886 | ||
Accrued expenses | 4,779 | 11,695 | ||
Current maturities of long-term debt | 24,975 | 73,767 | ||
Total current liabilities | 98,702 | 184,348 | ||
Long-term debt | 177,897 | 158,333 | ||
Other liabilities | 63,020 | 28,559 | ||
Redeemable noncontrolling interests | 126,340 | 126,340 | ||
Common stock | 18,120 | 18,121 | ||
Additional paid-in capital | 646,787 | 635,156 | ||
Retained earnings (deficit) | (624,402) | (569,172) | ||
Total Steel Dynamics, Inc. equity | 40,505 | 84,105 | ||
Noncontrolling interests | (134,616) | (117,488) | ||
Total equity | (94,111) | (33,383) | ||
Total liabilities and equity | 371,848 | 464,197 | ||
Consolidating Adjustments | ||||
Condensed Consolidating Balance Sheets | ||||
Accounts receivable, net | (672,549) | (640,213) | ||
Inventories | 499 | (2,263) | ||
Other current assets | (831) | (18,469) | ||
Total current assets | (672,881) | (660,945) | ||
Property, plant and equipment, net | (2,011) | (2,214) | ||
Other assets, including investments in subs | (2,921,386) | (3,834,607) | ||
Total assets | (3,596,278) | (4,497,766) | ||
Accounts payable | (69,688) | (110,384) | ||
Accrued expenses | (96,949) | (76,163) | ||
Current maturities of long-term debt | (22,117) | (41,157) | ||
Total current liabilities | (188,754) | (227,704) | ||
Long-term debt | (146,888) | (123,943) | ||
Other liabilities | (804,948) | (1,311,946) | ||
Common stock | (1,745,979) | (1,745,980) | ||
Additional paid-in capital | (764,524) | (752,893) | ||
Retained earnings (deficit) | 54,815 | (335,300) | ||
Total Steel Dynamics, Inc. equity | (2,455,688) | (2,834,173) | ||
Total equity | (2,455,688) | (2,834,173) | ||
Total liabilities and equity | $ (3,596,278) | $ (4,497,766) |
Condensed Consolidating Infor67
Condensed Consolidating Information - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Consolidating Statements of Operations | |||||||||||
Net sales | $ 1,591,046 | $ 1,950,923 | $ 2,005,007 | $ 2,047,435 | $ 2,517,093 | $ 2,339,016 | $ 2,069,761 | $ 1,830,082 | $ 7,594,411 | $ 8,755,952 | $ 7,372,924 |
Costs of goods sold | 6,862,693 | 7,789,741 | 6,653,780 | ||||||||
Gross profit | 144,207 | 228,726 | 171,743 | 187,042 | 291,624 | 288,512 | 222,771 | 163,304 | 731,718 | 966,211 | 719,144 |
Selling, general and administrative | 376,002 | 385,891 | 332,619 | ||||||||
Asset impairment charges | 428,500 | 260,000 | 308 | ||||||||
Operating income (loss) | (381,143) | 131,029 | 77,559 | 99,771 | (81,160) | 188,643 | 131,905 | 80,932 | (72,784) | 320,320 | 386,525 |
Interest expense, net of capitalized interest | 153,950 | 137,263 | 127,728 | ||||||||
Other (income) expense, net | 15,383 | 18,254 | (4,033) | ||||||||
Income (loss) before income taxes | (242,117) | 164,803 | 262,830 | ||||||||
Income taxes (benefit) | (96,947) | 73,153 | 99,314 | ||||||||
Net income (loss) | (256,316) | 58,867 | 25,325 | 26,954 | (96,046) | 87,657 | 66,341 | 33,698 | (145,170) | 91,650 | 163,516 |
Net loss attributable to noncontrolling interests | 14,859 | 65,374 | 25,798 | ||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ (253,239) | $ 60,617 | $ 31,550 | $ 30,761 | $ (45,031) | $ 91,173 | $ 72,303 | $ 38,579 | (130,311) | 157,024 | 189,314 |
Reportable legal entity | Parent | |||||||||||
Condensed Consolidating Statements of Operations | |||||||||||
Net sales | 2,908,904 | 3,904,488 | 3,466,691 | ||||||||
Costs of goods sold | 2,515,621 | 3,305,269 | 2,981,591 | ||||||||
Gross profit | 393,283 | 599,219 | 485,100 | ||||||||
Selling, general and administrative | 128,929 | 149,374 | 118,975 | ||||||||
Operating income (loss) | 264,354 | 449,845 | 366,125 | ||||||||
Interest expense, net of capitalized interest | 75,457 | 78,442 | 81,361 | ||||||||
Other (income) expense, net | 13,970 | 18,976 | (7,358) | ||||||||
Income (loss) before income taxes | 174,927 | 352,427 | 292,122 | ||||||||
Income taxes (benefit) | (124,626) | 14,064 | 63,670 | ||||||||
Net income (loss) | 299,553 | 338,363 | 228,452 | ||||||||
Equity in net loss of subsidiaries | (429,864) | (181,339) | (39,138) | ||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | (130,311) | 157,024 | 189,314 | ||||||||
Reportable legal entity | Guarantors | |||||||||||
Condensed Consolidating Statements of Operations | |||||||||||
Net sales | 8,132,043 | 9,761,236 | 8,219,499 | ||||||||
Costs of goods sold | 7,646,411 | 9,212,977 | 7,805,367 | ||||||||
Gross profit | 485,632 | 548,259 | 414,132 | ||||||||
Selling, general and administrative | 254,106 | 241,163 | 219,531 | ||||||||
Asset impairment charges | 428,500 | ||||||||||
Operating income (loss) | (196,974) | 307,096 | 194,601 | ||||||||
Interest expense, net of capitalized interest | 76,009 | 56,006 | 43,879 | ||||||||
Other (income) expense, net | 332 | (23) | 3,401 | ||||||||
Income (loss) before income taxes | (273,315) | 251,113 | 147,321 | ||||||||
Income taxes (benefit) | 61,571 | 96,315 | 54,448 | ||||||||
Net income (loss) | (334,886) | 154,798 | 92,873 | ||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | (334,886) | 154,798 | 92,873 | ||||||||
Reportable legal entity | Combined Non-Guarantors | |||||||||||
Condensed Consolidating Statements of Operations | |||||||||||
Net sales | 361,944 | 527,584 | 347,288 | ||||||||
Costs of goods sold | 420,281 | 598,428 | 440,064 | ||||||||
Gross profit | (58,337) | (70,844) | (92,776) | ||||||||
Selling, general and administrative | 11,893 | 13,503 | 10,548 | ||||||||
Asset impairment charges | 260,000 | ||||||||||
Operating income (loss) | (70,230) | (344,347) | (103,324) | ||||||||
Interest expense, net of capitalized interest | 6,969 | 7,745 | 7,259 | ||||||||
Other (income) expense, net | (3,404) | (5,629) | (4,847) | ||||||||
Income (loss) before income taxes | (73,795) | (346,463) | (105,736) | ||||||||
Income taxes (benefit) | (4,627) | (1,095) | 6,406 | ||||||||
Net income (loss) | (69,168) | (345,368) | (112,142) | ||||||||
Net loss attributable to noncontrolling interests | 14,859 | 65,374 | 25,798 | ||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | (54,309) | (279,994) | (86,344) | ||||||||
Consolidating Adjustments | |||||||||||
Condensed Consolidating Statements of Operations | |||||||||||
Net sales | (3,808,480) | (5,437,356) | (4,660,554) | ||||||||
Costs of goods sold | (3,719,620) | (5,326,933) | (4,573,242) | ||||||||
Gross profit | (88,860) | (110,423) | (87,312) | ||||||||
Selling, general and administrative | (18,926) | (18,149) | (16,435) | ||||||||
Operating income (loss) | (69,934) | (92,274) | (70,877) | ||||||||
Interest expense, net of capitalized interest | (4,485) | (4,930) | (4,771) | ||||||||
Other (income) expense, net | 4,485 | 4,930 | 4,771 | ||||||||
Income (loss) before income taxes | (69,934) | (92,274) | (70,877) | ||||||||
Income taxes (benefit) | (29,265) | (36,131) | (25,210) | ||||||||
Net income (loss) | (40,669) | (56,143) | (45,667) | ||||||||
Equity in net loss of subsidiaries | 429,864 | 181,339 | 39,138 | ||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ 389,195 | $ 125,196 | $ (6,529) |
Condensed Consolidating Infor68
Condensed Consolidating Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Consolidating Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | $ 1,038,483 | $ 617,572 | $ 312,175 |
Net cash provided by (used in) investing activities | (149,627) | (1,747,267) | (152,845) |
Net cash provided by (used in) financing activities | (523,187) | 1,095,902 | (140,091) |
Increase (decrease) in cash and equivalents | 365,669 | (33,793) | 19,239 |
Cash and equivalents at beginning of year | 361,363 | 395,156 | 375,917 |
Cash and equivalents at end of year | 727,032 | 361,363 | 395,156 |
Reportable legal entity | Parent | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | 413,870 | 400,204 | 190,616 |
Net cash provided by (used in) investing activities | (64,457) | (1,690,363) | (170,561) |
Net cash provided by (used in) financing activities | 22,151 | 1,234,606 | (21,896) |
Increase (decrease) in cash and equivalents | 371,564 | (55,553) | (1,841) |
Cash and equivalents at beginning of year | 265,313 | 320,866 | 322,707 |
Cash and equivalents at end of year | 636,877 | 265,313 | 320,866 |
Reportable legal entity | Guarantors | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | 601,437 | 279,080 | 190,885 |
Net cash provided by (used in) investing activities | (89,751) | (8,883) | (41,415) |
Net cash provided by (used in) financing activities | (511,400) | (249,655) | (129,997) |
Increase (decrease) in cash and equivalents | 286 | 20,542 | 19,473 |
Cash and equivalents at beginning of year | 81,690 | 61,148 | 41,675 |
Cash and equivalents at end of year | 81,976 | 81,690 | 61,148 |
Reportable legal entity | Combined Non-Guarantors | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | 19,388 | (38,666) | (80,525) |
Net cash provided by (used in) investing activities | (15,703) | (23,206) | (23,086) |
Net cash provided by (used in) financing activities | (9,866) | 63,090 | 105,218 |
Increase (decrease) in cash and equivalents | (6,181) | 1,218 | 1,607 |
Cash and equivalents at beginning of year | 14,360 | 13,142 | 11,535 |
Cash and equivalents at end of year | 8,179 | 14,360 | 13,142 |
Consolidating Adjustments | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | 3,788 | (23,046) | 11,199 |
Net cash provided by (used in) investing activities | 20,284 | (24,815) | 82,217 |
Net cash provided by (used in) financing activities | $ (24,072) | $ 47,861 | $ (93,416) |
Quarterly Financial Informati69
Quarterly Financial Information (unaudited, in thousands, except per share data) (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 16, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Net sales | $ 1,591,046 | $ 1,950,923 | $ 2,005,007 | $ 2,047,435 | $ 2,517,093 | $ 2,339,016 | $ 2,069,761 | $ 1,830,082 | $ 7,594,411 | $ 8,755,952 | $ 7,372,924 | |
Gross profit | 144,207 | 228,726 | 171,743 | 187,042 | 291,624 | 288,512 | 222,771 | 163,304 | 731,718 | 966,211 | 719,144 | |
Operating income (loss) | (381,143) | 131,029 | 77,559 | 99,771 | (81,160) | 188,643 | 131,905 | 80,932 | (72,784) | 320,320 | 386,525 | |
Net income (loss) | (256,316) | 58,867 | 25,325 | 26,954 | (96,046) | 87,657 | 66,341 | 33,698 | (145,170) | 91,650 | 163,516 | |
Net income (loss) attributable to Steel Dynamics, Inc. | $ (253,239) | $ 60,617 | $ 31,550 | $ 30,761 | $ (45,031) | $ 91,173 | $ 72,303 | $ 38,579 | (130,311) | 157,024 | 189,314 | |
Asset impairment charges | $ 428,500 | $ 260,000 | $ 308 | |||||||||
Earnings (loss) per share: | ||||||||||||
Basic (in dollars per share) | $ (1.04) | $ 0.25 | $ 0.13 | $ 0.13 | $ (0.19) | $ 0.38 | $ 0.32 | $ 0.17 | $ (0.54) | $ 0.68 | $ 0.86 | |
Diluted (in dollars per share) | $ (1.04) | $ 0.25 | $ 0.13 | $ 0.13 | $ (0.19) | $ 0.38 | $ 0.31 | $ 0.17 | $ (0.54) | $ 0.67 | $ 0.83 | |
Long Term Debt | ||||||||||||
Call and repayment of debt | $ 612,534 | $ 635,578 | $ 517,978 | |||||||||
Severstal Columbus LLC | ||||||||||||
Other non-operating expenses | $ 25,200 | 25,200 | ||||||||||
Operating Segment | ||||||||||||
Net sales | 7,594,411 | 8,755,952 | 7,372,924 | |||||||||
Operating Segment | Metals Recycling Operations | ||||||||||||
Net sales | 2,337,716 | 3,539,206 | 3,274,866 | |||||||||
Operating income (loss) | (448,137) | $ 26,014 | $ 41,949 | |||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ 268,700 | |||||||||||
Asset impairment charges | $ 428,500 | $ 428,500 | ||||||||||
Senior Notes | ||||||||||||
Long Term Debt | ||||||||||||
Call premiums and write off of deferred financing costs | $ 16,700 | |||||||||||
Call and repayment of debt | $ 350,000 | |||||||||||
7 5/8% senior notes, due 2020 | ||||||||||||
Long Term Debt | ||||||||||||
Call premiums and write off of deferred financing costs | $ 16,700 | |||||||||||
Call and repayment of debt | $ 350,000 | |||||||||||
Stated interest rate (as a percent) | 7.625% | 7.625% | 7.625% | 7.625% | 7.625% | |||||||
Minnesota Ironmaking Operations | ||||||||||||
Operating income (loss) | $ (260,000) | |||||||||||
Net income (loss) | (179,100) | |||||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ (132,600) | |||||||||||
Cost of goods sold | Minnesota Ironmaking Operations | ||||||||||||
Inventory lower-of-cost or market charge | $ 21,000 | |||||||||||
Noncontrolling Interests | Cost of goods sold | Minnesota Ironmaking Operations | ||||||||||||
Inventory lower-of-cost or market charge | $ 3,600 |