Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 01, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | STEEL DYNAMICS INC | |
Entity Central Index Key | 1,022,671 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Common Stock, Shares Outstanding | 236,951,784 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and equivalents | $ 1,101,964 | $ 841,483 |
Accounts receivable, net | 897,838 | 703,565 |
Accounts receivable-related parties | 25,179 | 26,219 |
Inventories | 1,487,516 | 1,275,211 |
Other current assets | 59,648 | 83,197 |
Total current assets | 3,572,145 | 2,929,675 |
Property, plant and equipment, net | 2,708,777 | 2,787,215 |
Restricted cash | 17,092 | 18,060 |
Intangible assets, net | 263,357 | 283,977 |
Goodwill | 388,518 | 393,351 |
Other assets | 10,848 | 11,454 |
Total assets | 6,960,737 | 6,423,732 |
Current liabilities | ||
Accounts payable | 512,290 | 382,126 |
Accounts payable-related parties | 16,393 | 13,070 |
Income taxes payable | 5,596 | 5,593 |
Accrued payroll and benefits | 171,508 | 164,543 |
Accrued interest | 49,380 | 30,295 |
Accrued expenses | 128,701 | 113,556 |
Current maturities of long-term debt | 182,661 | 3,632 |
Total current liabilities | 1,066,529 | 712,815 |
Long-term debt | 2,351,483 | 2,353,194 |
Deferred income taxes | 461,399 | 448,375 |
Other liabilities | 20,305 | 20,649 |
Total liabilities | 3,899,716 | 3,535,033 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 111,240 | 111,240 |
Equity | ||
Common stock voting, $.0025 par value; 900,000,000 shares authorized; 264,161,359 and 264,130,544 shares issued; and 236,951,784 and 243,785,4 shares outstanding, as of September 30, 2017 and December 31, 2016, respectively | 641 | 641 |
Treasury stock, at cost; 27,209,575 and 20,345,059 shares, as of September 30, 2017 and December 31, 2016 respectively | (650,210) | (416,829) |
Additional paid-in capital | 1,147,463 | 1,132,749 |
Retained earnings | 2,606,831 | 2,210,459 |
Total Steel Dynamics, Inc. equity | 3,104,725 | 2,927,020 |
Noncontrolling interests | (154,944) | (149,561) |
Total equity | 2,949,781 | 2,777,459 |
Total liabilities and equity | $ 6,960,737 | $ 6,423,732 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
CONSOLIDATED BALANCE SHEETS | ||
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) | 264,161,359 | 264,130,544 |
Common stock voting, shares outstanding (in shares) | 236,951,784 | 243,785,485 |
Treasury stock, shares (in shares) | 27,209,575 | 20,345,059 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net sales | ||||
Unrelated parties | $ 2,399,116 | $ 2,060,596 | $ 7,066,083 | $ 5,737,584 |
Related parties | 44,266 | 40,714 | 136,235 | 128,929 |
Total net sales | 2,443,382 | 2,101,310 | 7,202,318 | 5,866,513 |
Costs of goods sold | 2,046,864 | 1,692,807 | 5,941,128 | 4,841,591 |
Gross profit | 396,518 | 408,503 | 1,261,190 | 1,024,922 |
Selling, general and administrative expenses | 97,056 | 95,185 | 298,422 | 279,899 |
Profit sharing | 21,175 | 22,255 | 69,714 | 51,722 |
Amortization of intangible assets | 7,272 | 7,208 | 22,120 | 21,359 |
Operating income | 271,015 | 283,855 | 870,934 | 671,942 |
Interest expense, net of capitalized interest | 34,177 | 36,199 | 102,019 | 109,888 |
Other expense (income), net | 2,526 | 4,351 | (4,968) | 741 |
Income before income taxes | 234,312 | 243,305 | 773,883 | 561,313 |
Income tax expense | 83,300 | 88,892 | 271,258 | 205,139 |
Net income | 151,012 | 154,413 | 502,625 | 356,174 |
Net loss attributable to noncontrolling interests | 2,246 | 2,984 | 5,383 | 5,929 |
Net income attributable to Steel Dynamics, Inc. | $ 153,258 | $ 157,397 | $ 508,008 | $ 362,103 |
Basic earnings per share attributable to Steel Dynamics, Inc. stockholders | $ 0.64 | $ 0.65 | $ 2.11 | $ 1.49 |
Weighted average common shares outstanding - basic (in shares) | 239,066 | 243,761 | 241,117 | 243,539 |
Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share) | $ 0.64 | $ 0.64 | $ 2.09 | $ 1.48 |
Weighted average common shares and share equivalents outstanding (in shares) | 240,880 | 245,682 | 242,816 | 245,227 |
Dividends declared per share (in dollars per share) | $ 0.155 | $ 0.140 | $ 0.465 | $ 0.420 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities: | ||||
Net income | $ 151,012 | $ 154,413 | $ 502,625 | $ 356,174 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 75,210 | 74,190 | 224,068 | 222,970 |
Equity-based compensation | 6,875 | 5,946 | 24,558 | 23,716 |
Deferred income taxes | 3,284 | 18,478 | 17,849 | 53,879 |
Other adjustments | 8,202 | 161 | 8,055 | 1,376 |
Changes in certain assets and liabilities: | ||||
Accounts receivable | (36,123) | 29,384 | (193,233) | (149,810) |
Inventories | (67,285) | (76,013) | (211,726) | (102,339) |
Other assets | (9,234) | 694 | (1,703) | 11,855 |
Accounts payable | 44,887 | (49,171) | 133,251 | 117,220 |
Income taxes receivable/payable | (12,929) | (7,421) | 5,803 | 40,960 |
Accrued expenses | 62,249 | 45,701 | 38,058 | 69,361 |
Net cash provided by operating activities | 226,148 | 196,362 | 547,605 | 645,362 |
Investing activities: | ||||
Purchases of property, plant and equipment | (42,795) | (59,774) | (127,746) | (123,168) |
Acquisition of business, net of cash acquired | (5,518) | (109,065) | (5,518) | (109,065) |
Other investing activities | 1,081 | 1,507 | 30,386 | 5,767 |
Net cash used in investing activities | (47,232) | (167,332) | (102,878) | (226,466) |
Financing activities: | ||||
Issuance of current and long-term debt | 450,215 | 12,911 | 501,448 | 97,018 |
Repayment of current and long-term debt | (294,913) | (9,999) | (331,339) | (95,253) |
Dividends paid | (37,180) | (34,124) | (108,837) | (101,639) |
Purchases of treasury stock | (99,085) | (237,154) | ||
Other financing activities | (4,832) | 1,005 | (8,364) | 5,435 |
Net cash provided by (used in) financing activities | 14,205 | (30,207) | (184,246) | (94,439) |
Increase (decrease) in cash and equivalents | 193,121 | (1,177) | 260,481 | 324,457 |
Cash and equivalents at beginning of period | 908,843 | 1,052,666 | 841,483 | 727,032 |
Cash and equivalents at end of period | 1,101,964 | 1,051,489 | 1,101,964 | 1,051,489 |
Supplemental disclosure information: | ||||
Cash paid for interest | 13,530 | 26,225 | 80,155 | 97,605 |
Cash paid for income taxes, net | $ 93,123 | $ 75,860 | $ 246,793 | $ 104,124 |
Description of the Business and
Description of the Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Description of the Business and Significant Accounting Policies | |
Description of the Business and Significant Accounting Policies | Note 1. Description of the Business and 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. The company has three reporting segments: steel operations, metals recycling operations, and steel fabrication operations. Steel Operations Segment. Steel operations include the company’s Butler Flat Roll Division, Columbus Flat Roll Division, The Techs galvanizing lines, Structural and Rail Division, Engineered Bar Products Division, Vulcan Threaded Products, Inc. – acquired August 1, 2016, Roanoke Bar Division, Steel of West Virginia, and Iron Dynamics, 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 numerous downstream coating and bar processing lines. Steel operations accounted for 73% and 74% of the company’s consolidated external net sales during the three months ended September 30, 2017 and 2016 , respectively, and 73% and 72% of the company’s consolidated external net sales during the nine months ended September 30, 2017 and 2016 , respectively. Metals Recycling Operations Segment. Metals recycling operations consists solely of OmniSource Corporation (OmniSource), and includes both ferrous and nonferrous processing, transportation, marketing, brokerage, and consulting services. Metals recycling operations accounted for 14% and 15% of the company’s consolidated external net sales during the three months ended September 30, 2017 and 2016 , respectively, and 15% of the company’s consolidated external net sales for the nine months ended September 30, 2017 and 2016. Steel Fabrication Operations Segment. Steel fabrication operations include the company’s New Millennium Building Systems’ joist and deck plants located throughout the United States, and in 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% and 8% of the company’s consolidated external net sales during the three months ended September 30, 2017 and 2016 , respectively, and 8% and 9% during the nine months ended September 30, 2017 and 2016, respectively . Other. Other operations consists of subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of our idled Minnesota ironmaking operations and other 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 . 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. In the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the interim period results. These financial statements and notes should be read in conjunction with the audited financial statements and notes thereto included in the company’s Annual Report on Form 10-K for the year ended December 31, 2016 . Note 1. Description of the Business and Significant Accounting Policies (Continued) Goodwill . The company’s goodwill is allocated to the following reporting units at September 30, 2017 , and December 31, 2016 , (in thousands): September 30, December 31, 2017 2016 Steel Operations Segment: Columbus Flat Roll Division $ 19,682 $ 19,682 The Techs 142,783 142,783 Vulcan Threaded Products 7,824 7,824 Roanoke Bar Division 29,041 29,041 Metals Recycling Operations Segment: Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division 95,000 95,000 OmniSource 92,263 97,096 Steel Fabrication Operations Segment 1,925 1,925 $ 388,518 $ 393,351 OmniSource goodwill decreased $ 4.8 million from December 31, 2016 to September 30, 2017 , in recognition of the 2017 tax benefit related to the normal amortization of the component of OmniSource tax-deductible goodwill in excess of book goodwill. Recently Adopted/Issued Accounting Standards In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (ASU 2015-11), 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. The company adopted ASU 2015-11 as required in the first quarter of 2017 on a prospective basis, and the adoption had no impact on its financial condition, results of operations, or cash flow. In May 2014, the FASB issued ASU 2014-09, which is codified in ASC 606, Revenue Recognition – Revenue from Contracts with Customers, which amends the guidance in former ASC 605, Revenue Recognition . FASB has since issued clarifying guidance in the form of ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Consideration (Reporting Revenue Gross versus Net) , ASU 2016-10, Revenue from Contract with Customers : Identifying Performance Obligations and Licensing , and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, collectively (ASC 606). 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. ASC 606 also requires additional disclosures to help users of financial statements better understand the nature, amount, timing, and potential uncertainty of revenue that is recognized. ASC 606 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, using a full retrospective or modified retrospective approach. The company is finalizing its adoption plan in which it has identified current revenue streams and analyzed those revenue streams pursuant to the new accounting requirements. The company will complete the adoption plan during the fourth quarter of 2017, including assessment of new required disclosures. Based on our analysis within the adoption plan completed to date, the company does not believe there will be significant change in the amount or timing of revenue recognized under the new standard, or significant changes required to the company’s functions, processes or systems. The company intends to adopt ASU 2014-09 effective January 1, 2018, using the modified retrospective approach. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): which establishes a new lease accounting model that requires lessees to recognize a right of use asset and related lease liability for most leases having lease terms of more than 12 months (ASU 2016-02). Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. This new guidance is effective for annual and interim periods beginning after December 15, 2018, but can be early adopted. The company is currently evaluating the impact of the provisions of ASU 2016-02, including the timing of adoption. Reclassifications The company early adopted, effective December 31, 2016, Improvement to Employee Share-based Payment Accounting (ASU 2016-09). Cash paid to tax authorities from shares withheld to satisfy the company’s statutory income tax withholding obligation of $2. 2 million were reclassified to financing activities from operating activities in the nine-month period ended September 30, 2016, statement of cash flows. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share | |
Earnings Per Share | Note 2. 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 restricted stock units, deferred stock units, stock options and other equity-based awards; and are excluded from the computation in periods in which they have an anti-dilutive effect. There were no anti-dilutive common share equivalents at or for the three and nine months ended September 30, 2017 and 2016 . The following tables present a reconciliation of the numerators and the denominators of the company’s basic and diluted earnings per share computations for the three and nine months ended September 30, 2017 and 2016 (in thousands, except per share data): Three Months Ended September 30, 2017 2016 Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 153,258 239,066 $ 0.64 $ 157,397 243,761 $ 0.65 Dilutive common share equivalents - 1,814 - 1,921 Diluted earnings per share $ 153,258 240,880 $ 0.64 $ 157,397 245,682 $ 0.64 Nine Months Ended September 30, 2017 2016 Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 508,008 241,117 $ 2.11 $ 362,103 243,539 $ 1.49 Dilutive common share equivalents - 1,699 - 1,688 Diluted earnings per share $ 508,008 242,816 $ 2.09 $ 362,103 245,227 $ 1.48 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventories | |
Inventories | Note 3. Inventories Inventories are stated at lower of cost or net realizable value. Cost is determined using a weighted average cost method for raw materials and supplies, and on a first-in, first-out, basis for other inventory. Inventory consisted of the following (in thousands): September 30, December 31, 2017 2016 Raw materials $ 677,187 $ 515,924 Supplies 376,984 383,134 Work in progress 119,735 103,606 Finished goods 313,610 272,547 Total inventories $ 1,487,516 $ 1,275,211 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt | |
Debt | Note 4. Debt In September 2017, the company issued $350.0 million of 4.125% senior notes due 2025 (the "2025 Notes"), the proceeds of which, along with available cash, were used to fund the September 2017 tender to purchase at a redemption price of 103.563%, $182.9 million principal amount, plus accrued and unpaid interest to, but not including, the date of repurchase, of the company's 6.375% senior notes due 2022 (the "2022 Notes"), and the October 2017 call and repayment at a redemption price of 103.188% of the $167.1 million remaining outstanding principal amount of the 2022 Notes, plus accrued and unpaid interest to, but not including, the date of repayment. The $167.1 remaining outstanding principal amount is included in current maturities of long-term debt in the company’s September 30, 2017, balance sheet. The company recorded expenses related to tender premiums, write off of unamortized debt issuance costs, and other expenses of $8.0 million, which are reflected in other expenses in the consolidated statements of income for the three- and nine-months ended September 30, 2017. Additional call premiums of $6.6 million related to the October 2017 call and repayment will be recorded as other expenses in the consolidated statements of income for the three months and year ended December 31, 2017. |
Changes in Equity
Changes in Equity | 9 Months Ended |
Sep. 30, 2017 | |
Changes in Equity | |
Changes in Equity | Note 5. Changes in Equity The following table provides a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to stockholders of Steel Dynamics, Inc. and equity and redeemable amounts attributable to the noncontrolling interests (in thousands): Stockholders of Steel Dynamics, Inc. Additional Redeemable Common Treasury Paid-In Retained Noncontrolling Total Noncontrolling Stock Stock Capital Earnings Interests Equity Interests Balances at December 31, 2016 $ 641 $ (416,829) $ 1,132,749 $ 2,210,459 $ (149,561) $ 2,777,459 $ 111,240 Dividends declared - - - (111,435) - (111,435) - Share repurchases - (237,154) - - - (237,154) - Equity-based compensation - 3,773 14,714 (201) - 18,286 - Comprehensive and net income (loss) - - - 508,008 (5,383) 502,625 - Balances at September 30, 2017 $ 641 $ (650,210) $ 1,147,463 $ 2,606,831 $ (154,944) $ 2,949,781 $ 111,240 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 6. Derivative Financial Instruments The company is exposed to certain risks relating to its ongoing business operations. The company utilizes derivative instruments to mitigate commodity margin risk, interest rate risk and foreign currency exchange rate risk. The company 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 (primarily aluminum and copper). The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements. 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 futures contract commitments as of September 30, 2017 : Commodity Futures Long/Short Metric Tons Aluminum Long 1,275 Aluminum Short 2,250 Copper Long 4,251 Copper Short 21,727 The following summarizes the location and amounts of the fair values reported on the company’s balance sheets as of September 30, 2017 , and December 31, 2016 , and gains and losses related to derivatives included in the company’s statement of income for the three and nine months ended September 30, 2017 and 2016 (in thousands): Note 6. Derivative Financial Instruments (Continued) Asset Derivatives Liability Derivatives Balance sheet Fair Value Fair Value location September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 Derivative instruments designated as fair value hedges Commodity futures Other current assets $ 2,576 $ 2,910 $ 396 $ 1,300 Derivative instruments not designated as hedges Commodity futures Other current assets 1,573 1,150 497 783 Total derivative instruments $ 4,149 $ 4,060 $ 893 $ 2,083 The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements totaled $6.0 million at September 30, 2017 , and $3.2 million at December 31, 2016 , are reflected in other current assets in the consolidated balance sheets. Amount of gain (loss) recognized Location of gain Amount of gain (loss) recognized Location of gain in income on derivatives (loss) recognized in income on related hedged items (loss) recognized for the three months ended Hedged items in in income on for the three months ended in income on September 30, September 30, fair value hedge related hedged September 30, September 30, derivatives 2017 2016 relationships items 2017 2016 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ 4,122 $ 826 Firm commitments Costs of goods sold $ (1,711) $ (793) Inventory Costs of goods sold (1,330) (177) Derivatives not designated $ (3,041) $ (970) as hedging instruments Commodity futures Costs of goods sold $ (10,566) $ (638) Amount of gain (loss) recognized Location of gain Amount of gain (loss) recognized Location of gain in income on derivatives (loss) recognized in income on related hedged items (loss) recognized for the nine months ended Hedged items in in income on for the nine months ended in income on September 30, September 30, fair value hedge on related September 30, September 30, derivatives 2017 2016 relationships hedged items 2017 2016 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ 571 $ 1,281 Firm commitments Costs of goods sold $ 995 $ (2,223) Inventory Costs of goods sold 179 642 Derivatives not designated $ 1,174 $ (1,581) as hedging instruments Commodity futures Costs of goods sold $ (12,528) $ (394) Derivatives accounted for as fair value hedges had ineffectiveness resulting in losses of $35,000 and $84,000 during the three-month periods ended September 30, 2017 and 2016, respectively; and a gain of $62,000 and loss of $175,000 during the nine-month periods ended September 30, 2017 and 2016, respectively. Gains excluded from hedge effectiveness testing of $1.1 million decreased cost of goods sold during the three-month period ended September 30, 201 7, and losses excluded from hedge effectiveness testing of $60,000 increased costs of goods sold during the three-month period ended September 30, 2016. Gains of $1.7 million decreased costs of goods sold during the nine-month period ended September 30, 2017 , and losses of $125,000 increased costs of goods sold during the nine month period ended September 30, 2016 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurements | |
Fair Value Measurements | Note 7. 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 signi ficant 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 September 30, 2017 , and December 31, 2016 (in thousands): Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) September 30, 2017 Commodity futures – financial assets $ 4,149 $ - $ 4,149 $ - Commodity futures – financial liabilities 893 - 893 - December 31, 2016 Commodity futures – financial assets $ 4,060 $ - $ 4,060 $ - Commodity futures – financial liabilities 2,083 - 2,083 - 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 $2.6 billion and $2.5 billion at September 30, 2017 and December 31, 2016, respectively (with a corresponding carrying amount in the consolidated balance sheet of $2.5 and $2.4 billion at September 30, 2017 , and December 31, 2016 , respectively). |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 8. Commitments and Contingencies The company is 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 our financial condition, results of operations, or liquidity . |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Information | |
Segment Information | Note 9. Segment Information The company’s operations are primarily organized and managed by reportable operating segments, which are steel operations, metals recycling operations, and steel fabrication operations. The segment operations are more fully described in Note 1 to these financial statements. 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 these financial statements. Intra ‑segment sales and any related profits are eliminated in consolidation. Amounts included in the category “Other” are from subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of our Minnesota ironmaking operations and several small 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. Note 9. Segment Information (Continued) The company’s segment results are as follows (in thousands): Metals Steel For the three months ended Steel Recycling Fabrication September 30, 2017 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 1,700,707 $ 301,422 $ 211,271 $ 101,057 $ - $ 2,314,457 External Non-U.S. 82,098 46,793 34 - - 128,925 Other segments 65,321 360,982 89 116 (426,508) - 1,848,126 709,197 211,394 101,173 (426,508) 2,443,382 Operating income (loss) 276,547 17,624 21,862 (44,326) (1) (692) 271,015 Income (loss) before income taxes 255,539 16,020 20,199 (56,754) (692) 234,312 Depreciation and amortization 57,644 12,020 2,866 2,680 - 75,210 Capital expenditures 31,654 8,589 1,524 1,028 - 42,795 As of September 30, 2017 Assets $ 4,353,904 $ 1,032,018 $ 381,931 $ 1,346,968 (2) $ (154,084) (3) $ 6,960,737 Footnotes related to the three months ended September 30, 2017, segment results (in millions): (1) Corporate SG&A $ (12.1) (3) Elimination of intra-company receivables $ (130.4) Company-wide equity-based compensation (6.8) Elimination of intra-company debt (10.7) Profit sharing (20.2) Other (13.0) Other, net (5.2) $ (154.1) $ (44.3) (2) Cash and equivalents $ 1,065.9 Accounts receivable 14.0 Inventories 42.8 Property, plant and equipment, net 162.4 Intra-company debt 10.7 Other 51.2 $ 1,347.0 Note 9. Segment Information (Continued) Metals Steel For the three months ended Steel Recycling Fabrication September 30, 2016 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 1,502,726 $ 260,518 $ 177,341 $ 60,282 $ - $ 2,000,867 External Non-U.S. 54,776 45,574 88 5 - 100,443 Other segments 70,384 259,171 1,211 1,108 (331,874) - 1,627,886 565,263 178,640 61,395 (331,874) 2,101,310 Operating income (loss) 307,553 6,154 17,744 (47,687) (1) 91 283,855 Income (loss) before income taxes 285,131 2,437 15,645 (59,999) 91 243,305 Depreciation and amortization 53,456 13,836 2,848 4,101 (51) 74,190 Capital expenditures 49,200 9,506 747 321 - 59,774 Footnotes related to the three months ended September 30, 2016, segment results (in millions): (1) Corporate SG&A $ (12.6) Company-wide equity-based compensation (6.1) Profit sharing (21.0) Other, net (8.0) $ (47.7) Metals Steel For the nine months ended Steel Recycling Fabrication September 30, 2017 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 5,025,310 $ 910,830 $ 603,140 $ 281,091 $ - $ 6,820,371 External Non-U.S. 237,070 144,750 127 - - 381,947 Other segments 183,374 1,067,770 244 1,065 (1,252,453) - 5,445,754 2,123,350 603,511 282,156 (1,252,453) 7,202,318 Operating income (loss) 895,008 51,968 65,735 (141,406) (1) (371) 870,934 Income (loss) before income taxes 830,865 46,674 61,171 (164,456) (371) 773,883 Depreciation and amortization 170,125 37,048 8,743 8,152 - 224,068 Capital expenditures 101,939 18,539 5,748 1,520 - 127,746 Footnotes related to the nine months ended September 30, 2017, segment results (in millions): (1) Corporate SG&A $ (37.9) Company-wide equity-based compensation (23.5) Profit sharing (66.8) Other, net (13.2) $ (141.4) Note 9. Segment Information (Continued) Metals Steel For the nine months ended Steel Recycling Fabrication September 30, 2016 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 4,068,688 $ 769,260 $ 527,859 $ 210,358 $ - $ 5,576,165 External Non-U.S. 172,694 117,299 167 188 - 290,348 Other segments 178,190 756,613 2,415 3,603 (940,821) - 4,419,572 1,643,172 530,441 214,149 (940,821) 5,866,513 Operating income (loss) 712,939 20,014 73,230 (125,186) (1) (9,055) (2) 671,942 Income (loss) before income taxes 645,189 10,300 67,175 (152,296) (9,055) 561,313 Depreciation and amortization 159,614 42,666 8,431 12,413 (154) 222,970 Capital expenditures 103,202 17,068 1,918 980 - 123,168 Footnotes related to the nine months ended September 30, 2016, segment results (in millions): (1) Corporate SG&A $ (38.5) (2) Gross profit decrease from intra-company sales $ (9.1) Company-wide equity-based compensation (20.4) Profit sharing (47.7) Other, net (18.6) $ (125.2) |
Condensed Consolidating Informa
Condensed Consolidating Information | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Consolidating Information | |
Condensed Consolidating Information | Note 10. 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 2021, 2023, 2024, 2025 and 2026. 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, (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 the company’s Annual Report on Form 10-K for the year ended December 31, 2016 . Condensed Consolidating Balance Sheets (in thousands) Combined Consolidating Total As of September 30, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ 1,064,499 $ 32,968 $ 4,497 $ - $ 1,101,964 Accounts receivable, net 294,753 1,450,968 48,082 (870,786) 923,017 Inventories 669,076 754,526 72,990 (9,076) 1,487,516 Other current assets 36,828 21,404 5,124 (3,708) 59,648 Total current assets 2,065,156 2,259,866 130,693 (883,570) 3,572,145 Property, plant and equipment, net 873,015 1,634,215 201,547 - 2,708,777 Intangible assets, net - 231,838 31,519 - 263,357 Goodwill - 380,695 7,823 - 388,518 Other assets, including investments in subs 2,611,965 7,060 5,578 (2,596,663) 27,940 Total assets $ 5,550,136 $ 4,513,674 $ 377,160 $ (3,480,233) $ 6,960,737 Accounts payable $ 196,177 $ 348,347 $ 106,208 $ (122,049) $ 528,683 Accrued expenses 224,156 251,694 9,437 (130,102) 355,185 Current maturities of long-term debt 167,840 - 40,482 (25,661) 182,661 Total current liabilities 588,173 600,041 156,127 (277,812) 1,066,529 Long-term debt 2,324,240 - 172,243 (145,000) 2,351,483 Other liabilities (467,002) 983,737 27,238 (62,269) 481,704 Total liabilities 2,445,411 1,583,778 355,608 (485,081) 3,899,716 Redeemable noncontrolling interests - - 111,240 - 111,240 Common stock 641 1,727,859 14,908 (1,742,767) 641 Treasury stock (650,210) - - - (650,210) Additional paid-in-capital 1,147,463 128,076 791,196 (919,272) 1,147,463 Retained earnings (deficit) 2,606,831 1,073,961 (740,848) (333,113) 2,606,831 Total Steel Dynamics, Inc. equity 3,104,725 2,929,896 65,256 (2,995,152) 3,104,725 Noncontrolling interests - - (154,944) - (154,944) Total equity 3,104,725 2,929,896 (89,688) (2,995,152) 2,949,781 Total liabilities and equity $ 5,550,136 $ 4,513,674 $ 377,160 $ (3,480,233) $ 6,960,737 Note 10. Condensed Consolidating Information (Continued) Combined Consolidating Total As of December 31, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ 766,685 $ 54,677 $ 20,121 $ - $ 841,483 Accounts receivable, net 229,148 1,257,245 23,689 (780,298) 729,784 Inventories 587,319 639,148 58,696 (9,952) 1,275,211 Other current assets 45,049 36,062 4,447 (2,361) 83,197 Total current assets 1,628,201 1,987,132 106,953 (792,611) 2,929,675 Property, plant and equipment, net 899,370 1,679,751 208,094 - 2,787,215 Intangible assets, net - 251,919 32,058 - 283,977 Goodwill - 385,527 7,824 - 393,351 Other assets, including investments in subs 2,769,884 7,335 5,832 (2,753,537) 29,514 Total assets $ 5,297,455 $ 4,311,664 $ 360,761 $ (3,546,148) $ 6,423,732 Accounts payable $ 141,089 $ 265,764 $ 89,659 $ (101,316) $ 395,196 Accrued expenses 198,085 220,917 8,793 (113,808) 313,987 Current maturities of long-term debt 674 700 29,347 (27,089) 3,632 Total current liabilities 339,848 487,381 127,799 (242,213) 712,815 Long-term debt 2,324,298 - 168,566 (139,670) 2,353,194 Other liabilities (293,711) 1,219,444 42,482 (499,191) 469,024 Total liabilities 2,370,435 1,706,825 338,847 (881,074) 3,535,033 Redeemable noncontrolling interests - - 111,240 - 111,240 Common stock 641 1,727,859 14,908 (1,742,767) 641 Treasury stock (416,829) - - - (416,829) Additional paid-in-capital 1,132,749 128,076 779,678 (907,754) 1,132,749 Retained earnings (deficit) 2,210,459 748,904 (734,351) (14,553) 2,210,459 Total Steel Dynamics, Inc. equity 2,927,020 2,604,839 60,235 (2,665,074) 2,927,020 Noncontrolling interests - - (149,561) - (149,561) Total equity 2,927,020 2,604,839 (89,326) (2,665,074) 2,777,459 Total liabilities and equity $ 5,297,455 $ 4,311,664 $ 360,761 $ (3,546,148) $ 6,423,732 Note 10. Condensed Consolidating Information (Continued) Condensed Consolidating Statements of Operations (in thousands) For the three months ended, Combined Consolidating Total September 30, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 946,136 $ 2,641,067 $ 161,556 $ (1,305,377) $ 2,443,382 Costs of goods sold 763,310 2,402,670 157,564 (1,276,680) 2,046,864 Gross profit 182,826 238,397 3,992 (28,697) 396,518 Selling, general and administrative 51,464 74,151 4,896 (5,008) 125,503 Operating income (loss) 131,362 164,246 (904) (23,689) 271,015 Interest expense, net of capitalized interest 18,831 14,481 3,181 (2,316) 34,177 Other (income) expense, net 2,660 (2,492) 42 2,316 2,526 Income (loss) before income taxes and equity in net income of subsidiaries 109,871 152,257 (4,127) (23,689) 234,312 Income taxes 35,309 55,183 1,169 (8,361) 83,300 74,562 97,074 (5,296) (15,328) 151,012 Equity in net income of subsidiaries 78,696 - - (78,696) - Net loss attributable to noncontrolling interests - - 2,246 - 2,246 Net income (loss) attributable to Steel Dynamics, Inc. $ 153,258 $ 97,074 $ (3,050) $ (94,024) $ 153,258 For the three months ended, Combined Consolidating Total September 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 845,585 $ 2,258,466 $ 96,409 $ (1,099,150) $ 2,101,310 Costs of goods sold 647,983 2,016,874 100,470 (1,072,520) 1,692,807 Gross profit (loss) 197,602 241,592 (4,061) (26,630) 408,503 Selling, general and administrative 52,995 72,605 4,134 (5,086) 124,648 Operating income (loss) 144,607 168,987 (8,195) (21,544) 283,855 Interest expense, net of capitalized interest 17,818 17,741 2,847 (2,207) 36,199 Other (income) expense, net 2,342 3,937 (4,135) 2,207 4,351 Income (loss) before income taxes and equity in net income of subsidiaries 124,447 147,309 (6,907) (21,544) 243,305 Income taxes 40,242 55,684 797 (7,831) 88,892 84,205 91,625 (7,704) (13,713) 154,413 Equity in net income of subsidiaries 73,192 - - (73,192) - Net loss attributable to noncontrolling interests - - 2,984 - 2,984 Net income (loss) attributable to Steel Dynamics, Inc. $ 157,397 $ 91,625 $ (4,720) $ (86,905) $ 157,397 Note 10. Condensed Consolidating Information (Continued) For the nine months ended, Combined Consolidating Total September 30, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 2,797,557 $ 7,827,981 $ 449,902 $ (3,873,122) $ 7,202,318 Costs of goods sold 2,241,936 7,054,938 432,657 (3,788,403) 5,941,128 Gross profit (loss) 555,621 773,043 17,245 (84,719) 1,261,190 Selling, general and administrative 164,061 226,153 15,253 (15,211) 390,256 Operating income (loss) 391,560 546,890 1,992 (69,508) 870,934 Interest expense, net of capitalized interest 55,353 44,245 9,494 (7,073) 102,019 Other (income) expense, net (4,463) (7,305) (273) 7,073 (4,968) Income (loss) before income taxes and equity in net income of subsidiaries 340,670 509,950 (7,229) (69,508) 773,883 Income taxes 106,036 184,891 4,651 (24,320) 271,258 234,634 325,059 (11,880) (45,188) 502,625 Equity in net income of subsidiaries 273,374 - - (273,374) - Net loss attributable to noncontrolling interests - - 5,383 - 5,383 Net income (loss) attributable to Steel Dynamics, Inc. $ 508,008 $ 325,059 $ (6,497) $ (318,562) $ 508,008 For the nine months ended, Combined Consolidating Total September 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 2,297,389 $ 6,322,158 $ 271,694 $ (3,024,728) $ 5,866,513 Costs of goods sold 1,823,408 5,676,265 286,486 (2,944,568) 4,841,591 Gross profit (loss) 473,981 645,893 (14,792) (80,160) 1,024,922 Selling, general and administrative 145,596 212,613 9,352 (14,581) 352,980 Operating income (loss) 328,385 433,280 (24,144) (65,579) 671,942 Interest expense, net of capitalized interest 53,842 54,493 7,558 (6,005) 109,888 Other (income) expense, net (2,137) 8,012 (11,139) 6,005 741 Income (loss) before income taxes and equity in net income of subsidiaries 276,680 370,775 (20,563) (65,579) 561,313 Income taxes (benefit) 89,210 139,958 (63) (23,966) 205,139 187,470 230,817 (20,500) (41,613) 356,174 Equity in net income of subsidiaries 174,633 - - (174,633) - Net loss attributable to noncontrolling interests 5,929 5,929 Net income (loss) attributable to Steel Dynamics, Inc. $ 362,103 $ 230,817 $ (14,571) $ (216,246) $ 362,103 Note 10. Condensed Consolidating Information (Continued) Condensed Consolidating Statements of Cash Flows (in thousands) For the nine months ended, Combined Consolidating Total September 30, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Net cash provided (used in) by operating activities $ 126,267 $ 434,450 $ (17,762) $ 4,650 $ 547,605 Net cash used in investing activities (48,799) (50,975) (7,006) 3,902 (102,878) Net cash provided by (used in) financing activities 220,346 (405,184) 9,144 (8,552) (184,246) Increase (decrease) in cash and equivalents 297,814 (21,709) (15,624) - 260,481 Cash and equivalents at beginning of period 766,685 54,677 20,121 - 841,483 Cash and equivalents at end of period $ 1,064,499 $ 32,968 $ 4,497 $ - $ 1,101,964 For the nine months ended, Combined Consolidating Total September 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net cash provided by operating activities $ 282,918 $ 358,657 $ 52 $ 3,735 $ 645,362 Net cash used in investing activities (143,427) (81,983) (3,935) 2,879 (226,466) Net cash provided by (used in) financing activities 196,242 (297,596) 13,529 (6,614) (94,439) Increase (decrease) in cash and equivalents 335,733 (20,922) 9,646 - 324,457 Cash and equivalents at beginning of period 636,877 81,976 8,179 - 727,032 Cash and equivalents at end of period $ 972,610 $ 61,054 $ 17,825 $ - $ 1,051,489 |
Description of the Business a16
Description of the Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
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. In the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the interim period results. These financial statements and notes should be read in conjunction with the audited financial statements and notes thereto included in the company’s Annual Report on Form 10-K for the year ended December 31, 2016 . |
Goodwill | Goodwill . The company’s goodwill is allocated to the following reporting units at September 30, 2017 , and December 31, 2016 , (in thousands): September 30, December 31, 2017 2016 Steel Operations Segment: Columbus Flat Roll Division $ 19,682 $ 19,682 The Techs 142,783 142,783 Vulcan Threaded Products 7,824 7,824 Roanoke Bar Division 29,041 29,041 Metals Recycling Operations Segment: Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division 95,000 95,000 OmniSource 92,263 97,096 Steel Fabrication Operations Segment 1,925 1,925 $ 388,518 $ 393,351 OmniSource goodwill decreased $ 4.8 million from December 31, 2016 to September 30, 2017 , in recognition of the 2017 tax benefit related to the normal amortization of the component of OmniSource tax-deductible goodwill in excess of book goodwill. |
Recently Issued Accounting Standards | Recently Adopted/Issued Accounting Standards In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (ASU 2015-11), 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. The company adopted ASU 2015-11 as required in the first quarter of 2017 on a prospective basis, and the adoption had no impact on its financial condition, results of operations, or cash flow. In May 2014, the FASB issued ASU 2014-09, which is codified in ASC 606, Revenue Recognition – Revenue from Contracts with Customers, which amends the guidance in former ASC 605, Revenue Recognition . FASB has since issued clarifying guidance in the form of ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Consideration (Reporting Revenue Gross versus Net) , ASU 2016-10, Revenue from Contract with Customers : Identifying Performance Obligations and Licensing , and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, collectively (ASC 606). 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. ASC 606 also requires additional disclosures to help users of financial statements better understand the nature, amount, timing, and potential uncertainty of revenue that is recognized. ASC 606 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, using a full retrospective or modified retrospective approach. The company is finalizing its adoption plan in which it has identified current revenue streams and analyzed those revenue streams pursuant to the new accounting requirements. The company will complete the adoption plan during the fourth quarter of 2017, including assessment of new required disclosures. Based on our analysis within the adoption plan completed to date, the company does not believe there will be significant change in the amount or timing of revenue recognized under the new standard, or significant changes required to the company’s functions, processes or systems. The company intends to adopt ASU 2014-09 effective January 1, 2018, using the modified retrospective approach. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): which establishes a new lease accounting model that requires lessees to recognize a right of use asset and related lease liability for most leases having lease terms of more than 12 months (ASU 2016-02). Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. This new guidance is effective for annual and interim periods beginning after December 15, 2018, but can be early adopted. The company is currently evaluating the impact of the provisions of ASU 2016-02, including the timing of adoption. |
Description of the Business a17
Description of the Business and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Description of the Business and Significant Accounting Policies | |
Schedule of Goodwill | The company’s goodwill is allocated to the following reporting units at September 30, 2017 , and December 31, 2016 , (in thousands): September 30, December 31, 2017 2016 Steel Operations Segment: Columbus Flat Roll Division $ 19,682 $ 19,682 The Techs 142,783 142,783 Vulcan Threaded Products 7,824 7,824 Roanoke Bar Division 29,041 29,041 Metals Recycling Operations Segment: Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division 95,000 95,000 OmniSource 92,263 97,096 Steel Fabrication Operations Segment 1,925 1,925 $ 388,518 $ 393,351 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share | |
Reconciliation of Basic and Diluted Earnings Per Share | The following tables present a reconciliation of the numerators and the denominators of the company’s basic and diluted earnings per share computations for the three and nine months ended September 30, 2017 and 2016 (in thousands, except per share data): Three Months Ended September 30, 2017 2016 Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 153,258 239,066 $ 0.64 $ 157,397 243,761 $ 0.65 Dilutive common share equivalents - 1,814 - 1,921 Diluted earnings per share $ 153,258 240,880 $ 0.64 $ 157,397 245,682 $ 0.64 Nine Months Ended September 30, 2017 2016 Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 508,008 241,117 $ 2.11 $ 362,103 243,539 $ 1.49 Dilutive common share equivalents - 1,699 - 1,688 Diluted earnings per share $ 508,008 242,816 $ 2.09 $ 362,103 245,227 $ 1.48 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventories | |
Schedule of Inventories | Inventories are stated at lower of cost or net realizable value. Cost is determined using a weighted average cost method for raw materials and supplies, and on a first-in, first-out, basis for other inventory. Inventory consisted of the following (in thousands): September 30, December 31, 2017 2016 Raw materials $ 677,187 $ 515,924 Supplies 376,984 383,134 Work in progress 119,735 103,606 Finished goods 313,610 272,547 Total inventories $ 1,487,516 $ 1,275,211 |
Changes in Equity (Tables)
Changes in Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Changes in Equity | |
Schedule of stockholders' equity | The following table provides a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to stockholders of Steel Dynamics, Inc. and equity and redeemable amounts attributable to the noncontrolling interests (in thousands): Stockholders of Steel Dynamics, Inc. Additional Redeemable Common Treasury Paid-In Retained Noncontrolling Total Noncontrolling Stock Stock Capital Earnings Interests Equity Interests Balances at December 31, 2016 $ 641 $ (416,829) $ 1,132,749 $ 2,210,459 $ (149,561) $ 2,777,459 $ 111,240 Dividends declared - - - (111,435) - (111,435) - Share repurchases - (237,154) - - - (237,154) - Equity-based compensation - 3,773 14,714 (201) - 18,286 - Comprehensive and net income (loss) - - - 508,008 (5,383) 502,625 - Balances at September 30, 2017 $ 641 $ (650,210) $ 1,147,463 $ 2,606,831 $ (154,944) $ 2,949,781 $ 111,240 |
Derivative Financial Instrume21
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Financial Instruments | |
Schedule of Notional Amounts of Outstanding Derivative Positions | . The following summarizes the company’s futures contract commitments as of September 30, 2017 : Commodity Futures Long/Short Metric Tons Aluminum Long 1,275 Aluminum Short 2,250 Copper Long 4,251 Copper Short 21,727 |
Schedule of Derivative Instruments Statements of Financial Performance and Financial Position | The following summarizes the location and amounts of the fair values reported on the company’s balance sheets as of September 30, 2017 , and December 31, 2016 , and gains and losses related to derivatives included in the company’s statement of income for the three and nine months ended September 30, 2017 and 2016 (in thousands): Note 6. Derivative Financial Instruments (Continued) Asset Derivatives Liability Derivatives Balance sheet Fair Value Fair Value location September 30, 2017 December 31, 2016 September 30, 2017 December 31, 2016 Derivative instruments designated as fair value hedges Commodity futures Other current assets $ 2,576 $ 2,910 $ 396 $ 1,300 Derivative instruments not designated as hedges Commodity futures Other current assets 1,573 1,150 497 783 Total derivative instruments $ 4,149 $ 4,060 $ 893 $ 2,083 The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements totaled $6.0 million at September 30, 2017 , and $3.2 million at December 31, 2016 , are reflected in other current assets in the consolidated balance sheets. Amount of gain (loss) recognized Location of gain Amount of gain (loss) recognized Location of gain in income on derivatives (loss) recognized in income on related hedged items (loss) recognized for the three months ended Hedged items in in income on for the three months ended in income on September 30, September 30, fair value hedge related hedged September 30, September 30, derivatives 2017 2016 relationships items 2017 2016 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ 4,122 $ 826 Firm commitments Costs of goods sold $ (1,711) $ (793) Inventory Costs of goods sold (1,330) (177) Derivatives not designated $ (3,041) $ (970) as hedging instruments Commodity futures Costs of goods sold $ (10,566) $ (638) Amount of gain (loss) recognized Location of gain Amount of gain (loss) recognized Location of gain in income on derivatives (loss) recognized in income on related hedged items (loss) recognized for the nine months ended Hedged items in in income on for the nine months ended in income on September 30, September 30, fair value hedge on related September 30, September 30, derivatives 2017 2016 relationships hedged items 2017 2016 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ 571 $ 1,281 Firm commitments Costs of goods sold $ 995 $ (2,223) Inventory Costs of goods sold 179 642 Derivatives not designated $ 1,174 $ (1,581) as hedging instruments Commodity futures Costs of goods sold $ (12,528) $ (394) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 , and December 31, 2016 (in thousands): Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) September 30, 2017 Commodity futures – financial assets $ 4,149 $ - $ 4,149 $ - Commodity futures – financial liabilities 893 - 893 - December 31, 2016 Commodity futures – financial assets $ 4,060 $ - $ 4,060 $ - Commodity futures – financial liabilities 2,083 - 2,083 - |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Information | |
Schedule of operating segment results | Note 9. Segment Information (Continued) The company’s segment results are as follows (in thousands): Metals Steel For the three months ended Steel Recycling Fabrication September 30, 2017 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 1,700,707 $ 301,422 $ 211,271 $ 101,057 $ - $ 2,314,457 External Non-U.S. 82,098 46,793 34 - - 128,925 Other segments 65,321 360,982 89 116 (426,508) - 1,848,126 709,197 211,394 101,173 (426,508) 2,443,382 Operating income (loss) 276,547 17,624 21,862 (44,326) (1) (692) 271,015 Income (loss) before income taxes 255,539 16,020 20,199 (56,754) (692) 234,312 Depreciation and amortization 57,644 12,020 2,866 2,680 - 75,210 Capital expenditures 31,654 8,589 1,524 1,028 - 42,795 As of September 30, 2017 Assets $ 4,353,904 $ 1,032,018 $ 381,931 $ 1,346,968 (2) $ (154,084) (3) $ 6,960,737 Footnotes related to the three months ended September 30, 2017, segment results (in millions): (1) Corporate SG&A $ (12.1) (3) Elimination of intra-company receivables $ (130.4) Company-wide equity-based compensation (6.8) Elimination of intra-company debt (10.7) Profit sharing (20.2) Other (13.0) Other, net (5.2) $ (154.1) $ (44.3) (2) Cash and equivalents $ 1,065.9 Accounts receivable 14.0 Inventories 42.8 Property, plant and equipment, net 162.4 Intra-company debt 10.7 Other 51.2 $ 1,347.0 Note 9. Segment Information (Continued) Metals Steel For the three months ended Steel Recycling Fabrication September 30, 2016 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 1,502,726 $ 260,518 $ 177,341 $ 60,282 $ - $ 2,000,867 External Non-U.S. 54,776 45,574 88 5 - 100,443 Other segments 70,384 259,171 1,211 1,108 (331,874) - 1,627,886 565,263 178,640 61,395 (331,874) 2,101,310 Operating income (loss) 307,553 6,154 17,744 (47,687) (1) 91 283,855 Income (loss) before income taxes 285,131 2,437 15,645 (59,999) 91 243,305 Depreciation and amortization 53,456 13,836 2,848 4,101 (51) 74,190 Capital expenditures 49,200 9,506 747 321 - 59,774 Footnotes related to the three months ended September 30, 2016, segment results (in millions): (1) Corporate SG&A $ (12.6) Company-wide equity-based compensation (6.1) Profit sharing (21.0) Other, net (8.0) $ (47.7) Metals Steel For the nine months ended Steel Recycling Fabrication September 30, 2017 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 5,025,310 $ 910,830 $ 603,140 $ 281,091 $ - $ 6,820,371 External Non-U.S. 237,070 144,750 127 - - 381,947 Other segments 183,374 1,067,770 244 1,065 (1,252,453) - 5,445,754 2,123,350 603,511 282,156 (1,252,453) 7,202,318 Operating income (loss) 895,008 51,968 65,735 (141,406) (1) (371) 870,934 Income (loss) before income taxes 830,865 46,674 61,171 (164,456) (371) 773,883 Depreciation and amortization 170,125 37,048 8,743 8,152 - 224,068 Capital expenditures 101,939 18,539 5,748 1,520 - 127,746 Footnotes related to the nine months ended September 30, 2017, segment results (in millions): (1) Corporate SG&A $ (37.9) Company-wide equity-based compensation (23.5) Profit sharing (66.8) Other, net (13.2) $ (141.4) Note 9. Segment Information (Continued) Metals Steel For the nine months ended Steel Recycling Fabrication September 30, 2016 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 4,068,688 $ 769,260 $ 527,859 $ 210,358 $ - $ 5,576,165 External Non-U.S. 172,694 117,299 167 188 - 290,348 Other segments 178,190 756,613 2,415 3,603 (940,821) - 4,419,572 1,643,172 530,441 214,149 (940,821) 5,866,513 Operating income (loss) 712,939 20,014 73,230 (125,186) (1) (9,055) (2) 671,942 Income (loss) before income taxes 645,189 10,300 67,175 (152,296) (9,055) 561,313 Depreciation and amortization 159,614 42,666 8,431 12,413 (154) 222,970 Capital expenditures 103,202 17,068 1,918 980 - 123,168 Footnotes related to the nine months ended September 30, 2016, segment results (in millions): (1) Corporate SG&A $ (38.5) (2) Gross profit decrease from intra-company sales $ (9.1) Company-wide equity-based compensation (20.4) Profit sharing (47.7) Other, net (18.6) $ (125.2) |
Condensed Consolidating Infor24
Condensed Consolidating Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Condensed Consolidating Information | |
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets (in thousands) Combined Consolidating Total As of September 30, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ 1,064,499 $ 32,968 $ 4,497 $ - $ 1,101,964 Accounts receivable, net 294,753 1,450,968 48,082 (870,786) 923,017 Inventories 669,076 754,526 72,990 (9,076) 1,487,516 Other current assets 36,828 21,404 5,124 (3,708) 59,648 Total current assets 2,065,156 2,259,866 130,693 (883,570) 3,572,145 Property, plant and equipment, net 873,015 1,634,215 201,547 - 2,708,777 Intangible assets, net - 231,838 31,519 - 263,357 Goodwill - 380,695 7,823 - 388,518 Other assets, including investments in subs 2,611,965 7,060 5,578 (2,596,663) 27,940 Total assets $ 5,550,136 $ 4,513,674 $ 377,160 $ (3,480,233) $ 6,960,737 Accounts payable $ 196,177 $ 348,347 $ 106,208 $ (122,049) $ 528,683 Accrued expenses 224,156 251,694 9,437 (130,102) 355,185 Current maturities of long-term debt 167,840 - 40,482 (25,661) 182,661 Total current liabilities 588,173 600,041 156,127 (277,812) 1,066,529 Long-term debt 2,324,240 - 172,243 (145,000) 2,351,483 Other liabilities (467,002) 983,737 27,238 (62,269) 481,704 Total liabilities 2,445,411 1,583,778 355,608 (485,081) 3,899,716 Redeemable noncontrolling interests - - 111,240 - 111,240 Common stock 641 1,727,859 14,908 (1,742,767) 641 Treasury stock (650,210) - - - (650,210) Additional paid-in-capital 1,147,463 128,076 791,196 (919,272) 1,147,463 Retained earnings (deficit) 2,606,831 1,073,961 (740,848) (333,113) 2,606,831 Total Steel Dynamics, Inc. equity 3,104,725 2,929,896 65,256 (2,995,152) 3,104,725 Noncontrolling interests - - (154,944) - (154,944) Total equity 3,104,725 2,929,896 (89,688) (2,995,152) 2,949,781 Total liabilities and equity $ 5,550,136 $ 4,513,674 $ 377,160 $ (3,480,233) $ 6,960,737 Note 10. Condensed Consolidating Information (Continued) Combined Consolidating Total As of December 31, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ 766,685 $ 54,677 $ 20,121 $ - $ 841,483 Accounts receivable, net 229,148 1,257,245 23,689 (780,298) 729,784 Inventories 587,319 639,148 58,696 (9,952) 1,275,211 Other current assets 45,049 36,062 4,447 (2,361) 83,197 Total current assets 1,628,201 1,987,132 106,953 (792,611) 2,929,675 Property, plant and equipment, net 899,370 1,679,751 208,094 - 2,787,215 Intangible assets, net - 251,919 32,058 - 283,977 Goodwill - 385,527 7,824 - 393,351 Other assets, including investments in subs 2,769,884 7,335 5,832 (2,753,537) 29,514 Total assets $ 5,297,455 $ 4,311,664 $ 360,761 $ (3,546,148) $ 6,423,732 Accounts payable $ 141,089 $ 265,764 $ 89,659 $ (101,316) $ 395,196 Accrued expenses 198,085 220,917 8,793 (113,808) 313,987 Current maturities of long-term debt 674 700 29,347 (27,089) 3,632 Total current liabilities 339,848 487,381 127,799 (242,213) 712,815 Long-term debt 2,324,298 - 168,566 (139,670) 2,353,194 Other liabilities (293,711) 1,219,444 42,482 (499,191) 469,024 Total liabilities 2,370,435 1,706,825 338,847 (881,074) 3,535,033 Redeemable noncontrolling interests - - 111,240 - 111,240 Common stock 641 1,727,859 14,908 (1,742,767) 641 Treasury stock (416,829) - - - (416,829) Additional paid-in-capital 1,132,749 128,076 779,678 (907,754) 1,132,749 Retained earnings (deficit) 2,210,459 748,904 (734,351) (14,553) 2,210,459 Total Steel Dynamics, Inc. equity 2,927,020 2,604,839 60,235 (2,665,074) 2,927,020 Noncontrolling interests - - (149,561) - (149,561) Total equity 2,927,020 2,604,839 (89,326) (2,665,074) 2,777,459 Total liabilities and equity $ 5,297,455 $ 4,311,664 $ 360,761 $ (3,546,148) $ 6,423,732 |
Schedule of Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations (in thousands) For the three months ended, Combined Consolidating Total September 30, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 946,136 $ 2,641,067 $ 161,556 $ (1,305,377) $ 2,443,382 Costs of goods sold 763,310 2,402,670 157,564 (1,276,680) 2,046,864 Gross profit 182,826 238,397 3,992 (28,697) 396,518 Selling, general and administrative 51,464 74,151 4,896 (5,008) 125,503 Operating income (loss) 131,362 164,246 (904) (23,689) 271,015 Interest expense, net of capitalized interest 18,831 14,481 3,181 (2,316) 34,177 Other (income) expense, net 2,660 (2,492) 42 2,316 2,526 Income (loss) before income taxes and equity in net income of subsidiaries 109,871 152,257 (4,127) (23,689) 234,312 Income taxes 35,309 55,183 1,169 (8,361) 83,300 74,562 97,074 (5,296) (15,328) 151,012 Equity in net income of subsidiaries 78,696 - - (78,696) - Net loss attributable to noncontrolling interests - - 2,246 - 2,246 Net income (loss) attributable to Steel Dynamics, Inc. $ 153,258 $ 97,074 $ (3,050) $ (94,024) $ 153,258 For the three months ended, Combined Consolidating Total September 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 845,585 $ 2,258,466 $ 96,409 $ (1,099,150) $ 2,101,310 Costs of goods sold 647,983 2,016,874 100,470 (1,072,520) 1,692,807 Gross profit (loss) 197,602 241,592 (4,061) (26,630) 408,503 Selling, general and administrative 52,995 72,605 4,134 (5,086) 124,648 Operating income (loss) 144,607 168,987 (8,195) (21,544) 283,855 Interest expense, net of capitalized interest 17,818 17,741 2,847 (2,207) 36,199 Other (income) expense, net 2,342 3,937 (4,135) 2,207 4,351 Income (loss) before income taxes and equity in net income of subsidiaries 124,447 147,309 (6,907) (21,544) 243,305 Income taxes 40,242 55,684 797 (7,831) 88,892 84,205 91,625 (7,704) (13,713) 154,413 Equity in net income of subsidiaries 73,192 - - (73,192) - Net loss attributable to noncontrolling interests - - 2,984 - 2,984 Net income (loss) attributable to Steel Dynamics, Inc. $ 157,397 $ 91,625 $ (4,720) $ (86,905) $ 157,397 Note 10. Condensed Consolidating Information (Continued) For the nine months ended, Combined Consolidating Total September 30, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 2,797,557 $ 7,827,981 $ 449,902 $ (3,873,122) $ 7,202,318 Costs of goods sold 2,241,936 7,054,938 432,657 (3,788,403) 5,941,128 Gross profit (loss) 555,621 773,043 17,245 (84,719) 1,261,190 Selling, general and administrative 164,061 226,153 15,253 (15,211) 390,256 Operating income (loss) 391,560 546,890 1,992 (69,508) 870,934 Interest expense, net of capitalized interest 55,353 44,245 9,494 (7,073) 102,019 Other (income) expense, net (4,463) (7,305) (273) 7,073 (4,968) Income (loss) before income taxes and equity in net income of subsidiaries 340,670 509,950 (7,229) (69,508) 773,883 Income taxes 106,036 184,891 4,651 (24,320) 271,258 234,634 325,059 (11,880) (45,188) 502,625 Equity in net income of subsidiaries 273,374 - - (273,374) - Net loss attributable to noncontrolling interests - - 5,383 - 5,383 Net income (loss) attributable to Steel Dynamics, Inc. $ 508,008 $ 325,059 $ (6,497) $ (318,562) $ 508,008 For the nine months ended, Combined Consolidating Total September 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 2,297,389 $ 6,322,158 $ 271,694 $ (3,024,728) $ 5,866,513 Costs of goods sold 1,823,408 5,676,265 286,486 (2,944,568) 4,841,591 Gross profit (loss) 473,981 645,893 (14,792) (80,160) 1,024,922 Selling, general and administrative 145,596 212,613 9,352 (14,581) 352,980 Operating income (loss) 328,385 433,280 (24,144) (65,579) 671,942 Interest expense, net of capitalized interest 53,842 54,493 7,558 (6,005) 109,888 Other (income) expense, net (2,137) 8,012 (11,139) 6,005 741 Income (loss) before income taxes and equity in net income of subsidiaries 276,680 370,775 (20,563) (65,579) 561,313 Income taxes (benefit) 89,210 139,958 (63) (23,966) 205,139 187,470 230,817 (20,500) (41,613) 356,174 Equity in net income of subsidiaries 174,633 - - (174,633) - Net loss attributable to noncontrolling interests 5,929 5,929 Net income (loss) attributable to Steel Dynamics, Inc. $ 362,103 $ 230,817 $ (14,571) $ (216,246) $ 362,103 |
Schedule of Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows (in thousands) For the nine months ended, Combined Consolidating Total September 30, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Net cash provided (used in) by operating activities $ 126,267 $ 434,450 $ (17,762) $ 4,650 $ 547,605 Net cash used in investing activities (48,799) (50,975) (7,006) 3,902 (102,878) Net cash provided by (used in) financing activities 220,346 (405,184) 9,144 (8,552) (184,246) Increase (decrease) in cash and equivalents 297,814 (21,709) (15,624) - 260,481 Cash and equivalents at beginning of period 766,685 54,677 20,121 - 841,483 Cash and equivalents at end of period $ 1,064,499 $ 32,968 $ 4,497 $ - $ 1,101,964 For the nine months ended, Combined Consolidating Total September 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net cash provided by operating activities $ 282,918 $ 358,657 $ 52 $ 3,735 $ 645,362 Net cash used in investing activities (143,427) (81,983) (3,935) 2,879 (226,466) Net cash provided by (used in) financing activities 196,242 (297,596) 13,529 (6,614) (94,439) Increase (decrease) in cash and equivalents 335,733 (20,922) 9,646 - 324,457 Cash and equivalents at beginning of period 636,877 81,976 8,179 - 727,032 Cash and equivalents at end of period $ 972,610 $ 61,054 $ 17,825 $ - $ 1,051,489 |
Description of the Business a25
Description of the Business and Significant Accounting Policies (Segments) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Steel Operations | ||||
Segment Reporting Information | ||||
Percentage of external net sales | 73.00% | 74.00% | 73.00% | 72.00% |
Metals Recycling Operations | ||||
Segment Reporting Information | ||||
Percentage of external net sales | 14.00% | 15.00% | 15.00% | 15.00% |
Steel Fabrication Operations | ||||
Segment Reporting Information | ||||
Percentage of external net sales | 9.00% | 8.00% | 8.00% | 9.00% |
Description of the Business a26
Description of the Business and Significant Accounting Policies (Goodwill) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Goodwill | ||
Goodwill | $ 388,518 | $ 393,351 |
OmniSource | ||
Goodwill | ||
Goodwill decrease due to tax benefit related to the normal amortization of the component | 4,800 | |
Steel Operations | Columbus Flat Roll Division | ||
Goodwill | ||
Goodwill | 19,682 | 19,682 |
Steel Operations | The Techs | ||
Goodwill | ||
Goodwill | 142,783 | 142,783 |
Steel Operations | Vulcan Steel Products [Member] | ||
Goodwill | ||
Goodwill | 7,824 | 7,824 |
Steel Operations | Roanoke Bar Division | ||
Goodwill | ||
Goodwill | 29,041 | 29,041 |
Metals Recycling Operations | Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division | ||
Goodwill | ||
Goodwill | 95,000 | 95,000 |
Metals Recycling Operations | OmniSource | ||
Goodwill | ||
Goodwill | 92,263 | 97,096 |
Steel Fabrication Operations | New Millennium Building Systems | ||
Goodwill | ||
Goodwill | $ 1,925 | $ 1,925 |
Description of the Business a27
Description of the Business and Significant Accounting Policies (Recently Adopted/Issued Accounting Standards) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Accounting Standards Update 2016-09 [Member] | |
New Accounting Pronouncement, Early Adoption [Line Items] | |
Cash paid to tax authorities from shares withheld to satisfy statutory income tax withholding obligation | $ 2.2 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net Income (Numerator) | ||||
Basic earnings per share - net income (in dollars) | $ 153,258 | $ 157,397 | $ 508,008 | $ 362,103 |
Diluted earnings per share - net income (in dollars) | $ 153,258 | $ 157,397 | $ 508,008 | $ 362,103 |
Weighted average common shares outstanding (in shares) | ||||
Weighted average common shares outstanding - basic (in shares) | 239,066 | 243,761 | 241,117 | 243,539 |
Dilutive common share equivalents (in shares) | 1,814 | 1,921 | 1,699 | 1,688 |
Weighted average common shares outstanding - diluted (in shares) | 240,880 | 245,682 | 242,816 | 245,227 |
Per Share Amount | ||||
Basic (in dollars per share) | $ 0.64 | $ 0.65 | $ 2.11 | $ 1.49 |
Diluted (in dollars per share) | $ 0.64 | $ 0.64 | $ 2.09 | $ 1.48 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventories | ||
Raw materials | $ 677,187 | $ 515,924 |
Supplies | 376,984 | 383,134 |
Work in progress | 119,735 | 103,606 |
Finished goods | 313,610 | 272,547 |
Total inventories | $ 1,487,516 | $ 1,275,211 |
Debt (Details)
Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Oct. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | |
Long Term Debt | ||||
Write off of Deferred Debt Issuance Cost | $ 8,000,000 | |||
Subsequent Event [Member] | ||||
Long Term Debt | ||||
Write off of Deferred Debt Issuance Cost | $ 6,600,000 | |||
4.125 Senior Notes Due 2025 [Member] | Senior Notes | ||||
Long Term Debt | ||||
Debt Instrument, Face Amount | $ 350,000,000 | $ 350,000,000 | ||
Stated interest rate | 4.125% | 4.125% | ||
6 3/8% Senior Notes, due 2022 | Senior Notes | ||||
Long Term Debt | ||||
Stated interest rate | 6.375% | 6.375% | ||
6 3/8% Senior Notes, due 2022 | Senior Notes | Debt Instrument, Redemption, Period One [Member] | ||||
Long Term Debt | ||||
Redemption price of debt instrument (as a percent) | 103.563% | |||
Debt Instrument, Repurchased Face Amount | $ 182,900,000 | $ 182,900,000 | ||
6 3/8% Senior Notes, due 2022 | Senior Notes | Debt Instrument, Redemption, Period Two [Member] | ||||
Long Term Debt | ||||
Redemption price of debt instrument (as a percent) | 103.188% | |||
Debt Instrument, Repurchased Face Amount | $ 167,100,000 |
Changes in Equity (Rollforward)
Changes in Equity (Rollforward) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Balances | $ 2,777,459 |
Dividends declared | (111,435) |
Share repurchases | (237,154) |
Equity-based compensation | 18,286 |
Comprehensive and net income (loss) | 502,625 |
Balances | 2,949,781 |
Common Stock | |
Balances | 641 |
Balances | 641 |
Treasury Stock | |
Balances | (416,829) |
Share repurchases | (237,154) |
Equity-based compensation | 3,773 |
Balances | (650,210) |
Additional Paid-In Capital | |
Balances | 1,132,749 |
Equity-based compensation | 14,714 |
Balances | 1,147,463 |
Retained Earnings | |
Balances | 2,210,459 |
Dividends declared | (111,435) |
Equity-based compensation | (201) |
Comprehensive and net income (loss) | 508,008 |
Balances | 2,606,831 |
Noncontrolling Interests | |
Balances | (149,561) |
Comprehensive and net income (loss) | (5,383) |
Balances | (154,944) |
Redeemable Noncontrolling Interest | |
Balances | 111,240 |
Balances | $ 111,240 |
Derivative Financial Instrume32
Derivative Financial Instruments (Narrative) (Details) - Futures - Commodity contract - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Other current assets | |||||
Commodity contract commitments | |||||
Fair value of derivatives including required margin deposits | $ 6,000 | $ 6,000 | $ 3,200 | ||
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 | (35) | $ (84) | 62 | $ (175) | |
Gain (loss) excluded from hedge effectiveness testing | $ 1,100 | $ (60) | $ 1,700 | $ (125) |
Derivative Financial Instrume33
Derivative Financial Instruments (Schedule of Notional Amounts of Outstanding Derivative Positions) (Details) - Futures | 9 Months Ended |
Sep. 30, 2017T | |
Aluminum | Long | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 1,275 |
Aluminum | Short | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 2,250 |
Copper | Long | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 4,251 |
Copper | Short | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 21,727 |
Derivative Financial Instrume34
Derivative Financial Instruments (Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Commodity futures, asset derivatives | $ 4,149 | $ 4,060 |
Commodity futures, liability derivatives | 893 | 2,083 |
Futures | Commodity contract | Designated as hedging instrument | Other current assets | ||
Commodity futures, asset derivatives | 2,576 | 2,910 |
Commodity futures, liability derivatives | 396 | 1,300 |
Futures | Commodity contract | Not designated as hedging instrument | Other current assets | ||
Commodity futures, asset derivatives | 1,573 | 1,150 |
Commodity futures, liability derivatives | $ 497 | $ 783 |
Derivative Financial Instrume35
Derivative Financial Instruments (Schedule of Derivatives Instruments Statements of Financial Position) (Details) - Cost of goods sold - Futures - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Designated as hedging instrument | ||||
Amount of gain (loss) recognized in income on derivatives | $ 4,122 | $ 826 | $ 571 | $ 1,281 |
Amount of gain (loss) recognized in income on related hedged items | (3,041) | (970) | 1,174 | (1,581) |
Designated as hedging instrument | Firm commitments | ||||
Amount of gain (loss) recognized in income on related hedged items | (1,711) | (793) | 995 | (2,223) |
Designated as hedging instrument | Inventory | ||||
Amount of gain (loss) recognized in income on related hedged items | (1,330) | (177) | 179 | 642 |
Not designated as hedging instrument | ||||
Amount of gain (loss) recognized in income on derivatives | $ (10,566) | $ (638) | $ (12,528) | $ (394) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | $ 4,149 | $ 4,060 |
Commodity futures - financial liabilities | 893 | 2,083 |
Fair value of long-term debt, including current maturities | 2,600,000 | 2,500,000 |
Outstanding Balance | 2,500,000 | 2,400,000 |
Futures | Recurring | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 4,149 | 4,060 |
Commodity futures - financial liabilities | 893 | 2,083 |
Futures | Recurring | Fair Value, Inputs, Level 2 [Member] | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 4,149 | 4,060 |
Commodity futures - financial liabilities | $ 893 | $ 2,083 |
Segment Information - Results (
Segment Information - Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information | |||||
Net sales | $ 2,443,382 | $ 2,101,310 | $ 7,202,318 | $ 5,866,513 | |
Operating income (loss) | 271,015 | 283,855 | 870,934 | 671,942 | |
Income (loss) before income taxes | 234,312 | 243,305 | 773,883 | 561,313 | |
Depreciation and amortization | 75,210 | 74,190 | 224,068 | 222,970 | |
Capital expenditures | 42,795 | 59,774 | 127,746 | 123,168 | |
Assets | 6,960,737 | 6,960,737 | $ 6,423,732 | ||
U.S. | |||||
Segment Reporting Information | |||||
Net sales | 2,314,457 | 2,000,867 | 6,820,371 | 5,576,165 | |
Non-U.S. | |||||
Segment Reporting Information | |||||
Net sales | 128,925 | 100,443 | 381,947 | 290,348 | |
Steel Operations | |||||
Segment Reporting Information | |||||
Net sales | 1,848,126 | 1,627,886 | 5,445,754 | 4,419,572 | |
Operating income (loss) | 276,547 | 307,553 | 895,008 | 712,939 | |
Income (loss) before income taxes | 255,539 | 285,131 | 830,865 | 645,189 | |
Depreciation and amortization | 57,644 | 53,456 | 170,125 | 159,614 | |
Capital expenditures | 31,654 | 49,200 | 101,939 | 103,202 | |
Assets | 4,353,904 | 4,353,904 | |||
Steel Operations | Other segments | |||||
Segment Reporting Information | |||||
Net sales | 65,321 | 70,384 | 183,374 | 178,190 | |
Steel Operations | U.S. | |||||
Segment Reporting Information | |||||
Net sales | 1,700,707 | 1,502,726 | 5,025,310 | 4,068,688 | |
Steel Operations | Non-U.S. | |||||
Segment Reporting Information | |||||
Net sales | 82,098 | 54,776 | 237,070 | 172,694 | |
Metals Recycling Operations | |||||
Segment Reporting Information | |||||
Net sales | 709,197 | 565,263 | 2,123,350 | 1,643,172 | |
Operating income (loss) | 17,624 | 6,154 | 51,968 | 20,014 | |
Income (loss) before income taxes | 16,020 | 2,437 | 46,674 | 10,300 | |
Depreciation and amortization | 12,020 | 13,836 | 37,048 | 42,666 | |
Capital expenditures | 8,589 | 9,506 | 18,539 | 17,068 | |
Assets | 1,032,018 | 1,032,018 | |||
Metals Recycling Operations | Other segments | |||||
Segment Reporting Information | |||||
Net sales | 360,982 | 259,171 | 1,067,770 | 756,613 | |
Metals Recycling Operations | U.S. | |||||
Segment Reporting Information | |||||
Net sales | 301,422 | 260,518 | 910,830 | 769,260 | |
Metals Recycling Operations | Non-U.S. | |||||
Segment Reporting Information | |||||
Net sales | 46,793 | 45,574 | 144,750 | 117,299 | |
Steel Fabrication Operations | |||||
Segment Reporting Information | |||||
Net sales | 211,394 | 178,640 | 603,511 | 530,441 | |
Operating income (loss) | 21,862 | 17,744 | 65,735 | 73,230 | |
Income (loss) before income taxes | 20,199 | 15,645 | 61,171 | 67,175 | |
Depreciation and amortization | 2,866 | 2,848 | 8,743 | 8,431 | |
Capital expenditures | 1,524 | 747 | 5,748 | 1,918 | |
Assets | 381,931 | 381,931 | |||
Steel Fabrication Operations | Other segments | |||||
Segment Reporting Information | |||||
Net sales | 89 | 1,211 | 244 | 2,415 | |
Steel Fabrication Operations | U.S. | |||||
Segment Reporting Information | |||||
Net sales | 211,271 | 177,341 | 603,140 | 527,859 | |
Steel Fabrication Operations | Non-U.S. | |||||
Segment Reporting Information | |||||
Net sales | 34 | 88 | 127 | 167 | |
Other | |||||
Segment Reporting Information | |||||
Net sales | 101,173 | 61,395 | 282,156 | 214,149 | |
Operating income (loss) | (44,326) | (47,687) | (141,406) | (125,186) | |
Income (loss) before income taxes | (56,754) | (59,999) | (164,456) | (152,296) | |
Depreciation and amortization | 2,680 | 4,101 | 8,152 | 12,413 | |
Capital expenditures | 1,028 | 321 | 1,520 | 980 | |
Assets | 1,346,968 | 1,346,968 | |||
Other | Other segments | |||||
Segment Reporting Information | |||||
Net sales | 116 | 1,108 | 1,065 | 3,603 | |
Other | U.S. | |||||
Segment Reporting Information | |||||
Net sales | 101,057 | 60,282 | 281,091 | 210,358 | |
Other | Non-U.S. | |||||
Segment Reporting Information | |||||
Net sales | 5 | 188 | |||
Eliminations | |||||
Segment Reporting Information | |||||
Net sales | (426,508) | (331,874) | (1,252,453) | (940,821) | |
Operating income (loss) | (692) | 91 | (371) | (9,055) | |
Income (loss) before income taxes | (692) | 91 | (371) | (9,055) | |
Depreciation and amortization | (51) | (154) | |||
Assets | (154,084) | (154,084) | |||
Eliminations | Other segments | |||||
Segment Reporting Information | |||||
Net sales | $ (426,508) | $ (331,874) | $ (1,252,453) | $ (940,821) |
Segment Information - Other Foo
Segment Information - Other Footnote (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Operating income (loss) | ||||||||
Corporate SG & A | $ (97,056) | $ (95,185) | $ (298,422) | $ (279,899) | ||||
Profit sharing | (21,175) | (22,255) | (69,714) | (51,722) | ||||
Operating income (loss) | 271,015 | 283,855 | 870,934 | 671,942 | ||||
Assets | ||||||||
Cash and equivalents | 1,101,964 | 1,051,489 | 1,101,964 | 1,051,489 | $ 908,843 | $ 841,483 | $ 1,052,666 | $ 727,032 |
Accounts receivable | 923,017 | 923,017 | 729,784 | |||||
Inventories | 1,487,516 | 1,487,516 | 1,275,211 | |||||
Property, plant and equipment, net | 2,708,777 | 2,708,777 | 2,787,215 | |||||
Other | 27,940 | 27,940 | 29,514 | |||||
Total assets | 6,960,737 | 6,960,737 | $ 6,423,732 | |||||
Other | ||||||||
Operating income (loss) | ||||||||
Corporate SG & A | (12,100) | (12,600) | (37,900) | (38,500) | ||||
Company-wide equity-based compensation | (6,800) | (6,100) | (23,500) | (20,400) | ||||
Profit sharing | (20,200) | (21,000) | (66,800) | (47,700) | ||||
Other, net | (5,200) | (8,000) | (13,200) | (18,600) | ||||
Operating income (loss) | (44,326) | (47,687) | (141,406) | (125,186) | ||||
Assets | ||||||||
Cash and equivalents | 1,065,900 | 1,065,900 | ||||||
Accounts receivable | 14,000 | 14,000 | ||||||
Inventories | 42,800 | 42,800 | ||||||
Property, plant and equipment, net | 162,400 | 162,400 | ||||||
Intra Company Debt | 10,700 | 10,700 | ||||||
Other | 51,200 | 51,200 | ||||||
Total assets | 1,346,968 | 1,346,968 | ||||||
Metals Recycling Operations | ||||||||
Operating income (loss) | ||||||||
Operating income (loss) | 17,624 | $ 6,154 | 51,968 | $ 20,014 | ||||
Assets | ||||||||
Total assets | $ 1,032,018 | $ 1,032,018 |
Segment Information - Eliminati
Segment Information - Eliminations Footnote (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Operating income (loss) | |||||
Operating income (loss) | $ 271,015 | $ 283,855 | $ 870,934 | $ 671,942 | |
Gross profit | 396,518 | 408,503 | 1,261,190 | 1,024,922 | |
Assets elimination | |||||
Accounts receivable | 923,017 | 923,017 | $ 729,784 | ||
Other | 27,940 | 27,940 | 29,514 | ||
Total assets | 6,960,737 | 6,960,737 | $ 6,423,732 | ||
Eliminations | |||||
Operating income (loss) | |||||
Operating income (loss) | (692) | $ 91 | (371) | $ (9,055) | |
Assets elimination | |||||
Accounts receivable | (130,400) | (130,400) | |||
Elimination of intra-company debt | (10,700) | (10,700) | |||
Other | (13,000) | (13,000) | |||
Total assets | $ (154,084) | $ (154,084) |
Condensed Consolidating Infor40
Condensed Consolidating Information - Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Condensed Consolidating Balance Sheets | ||||||
Cash and equivalents | $ 1,101,964 | $ 908,843 | $ 841,483 | $ 1,051,489 | $ 1,052,666 | $ 727,032 |
Accounts receivable, net | 923,017 | 729,784 | ||||
Inventories | 1,487,516 | 1,275,211 | ||||
Other current assets | 59,648 | 83,197 | ||||
Total current assets | 3,572,145 | 2,929,675 | ||||
Property, plant and equipment, net | 2,708,777 | 2,787,215 | ||||
Intangible assets, net | 263,357 | 283,977 | ||||
Goodwill | 388,518 | 393,351 | ||||
Other assets, including investments in subs | 27,940 | 29,514 | ||||
Total assets | 6,960,737 | 6,423,732 | ||||
Accounts payable | 528,683 | 395,196 | ||||
Accrued expenses | 355,185 | 313,987 | ||||
Current maturities of long-term debt | 182,661 | 3,632 | ||||
Total current liabilities | 1,066,529 | 712,815 | ||||
Long-term debt | 2,351,483 | 2,353,194 | ||||
Other liabilities | 481,704 | 469,024 | ||||
Total liabilities | 3,899,716 | 3,535,033 | ||||
Redeemable noncontrolling interests | 111,240 | 111,240 | ||||
Common stock | 641 | 641 | ||||
Treasury stock | (650,210) | (416,829) | ||||
Additional paid-in capital | 1,147,463 | 1,132,749 | ||||
Retained earnings (deficit) | 2,606,831 | 2,210,459 | ||||
Total Steel Dynamics, Inc. equity | 3,104,725 | 2,927,020 | ||||
Noncontrolling interests | (154,944) | (149,561) | ||||
Total equity | 2,949,781 | 2,777,459 | ||||
Total liabilities and equity | 6,960,737 | 6,423,732 | ||||
Parent | ||||||
Condensed Consolidating Balance Sheets | ||||||
Cash and equivalents | 1,064,499 | 766,685 | 972,610 | 636,877 | ||
Accounts receivable, net | 294,753 | 229,148 | ||||
Inventories | 669,076 | 587,319 | ||||
Other current assets | 36,828 | 45,049 | ||||
Total current assets | 2,065,156 | 1,628,201 | ||||
Property, plant and equipment, net | 873,015 | 899,370 | ||||
Other assets, including investments in subs | 2,611,965 | 2,769,884 | ||||
Total assets | 5,550,136 | 5,297,455 | ||||
Accounts payable | 196,177 | 141,089 | ||||
Accrued expenses | 224,156 | 198,085 | ||||
Current maturities of long-term debt | 167,840 | 674 | ||||
Total current liabilities | 588,173 | 339,848 | ||||
Long-term debt | 2,324,240 | 2,324,298 | ||||
Other liabilities | (467,002) | (293,711) | ||||
Total liabilities | 2,445,411 | 2,370,435 | ||||
Common stock | 641 | 641 | ||||
Treasury stock | (650,210) | (416,829) | ||||
Additional paid-in capital | 1,147,463 | 1,132,749 | ||||
Retained earnings (deficit) | 2,606,831 | 2,210,459 | ||||
Total Steel Dynamics, Inc. equity | 3,104,725 | 2,927,020 | ||||
Total equity | 3,104,725 | 2,927,020 | ||||
Total liabilities and equity | 5,550,136 | 5,297,455 | ||||
Guarantors | ||||||
Condensed Consolidating Balance Sheets | ||||||
Cash and equivalents | 32,968 | 54,677 | 61,054 | 81,976 | ||
Accounts receivable, net | 1,450,968 | 1,257,245 | ||||
Inventories | 754,526 | 639,148 | ||||
Other current assets | 21,404 | 36,062 | ||||
Total current assets | 2,259,866 | 1,987,132 | ||||
Property, plant and equipment, net | 1,634,215 | 1,679,751 | ||||
Intangible assets, net | 231,838 | 251,919 | ||||
Goodwill | 380,695 | 385,527 | ||||
Other assets, including investments in subs | 7,060 | 7,335 | ||||
Total assets | 4,513,674 | 4,311,664 | ||||
Accounts payable | 348,347 | 265,764 | ||||
Accrued expenses | 251,694 | 220,917 | ||||
Current maturities of long-term debt | 700 | |||||
Total current liabilities | 600,041 | 487,381 | ||||
Other liabilities | 983,737 | 1,219,444 | ||||
Total liabilities | 1,583,778 | 1,706,825 | ||||
Common stock | 1,727,859 | 1,727,859 | ||||
Additional paid-in capital | 128,076 | 128,076 | ||||
Retained earnings (deficit) | 1,073,961 | 748,904 | ||||
Total Steel Dynamics, Inc. equity | 2,929,896 | 2,604,839 | ||||
Total equity | 2,929,896 | 2,604,839 | ||||
Total liabilities and equity | 4,513,674 | 4,311,664 | ||||
Combined Non-Guarantors | ||||||
Condensed Consolidating Balance Sheets | ||||||
Cash and equivalents | 4,497 | 20,121 | $ 17,825 | $ 8,179 | ||
Accounts receivable, net | 48,082 | 23,689 | ||||
Inventories | 72,990 | 58,696 | ||||
Other current assets | 5,124 | 4,447 | ||||
Total current assets | 130,693 | 106,953 | ||||
Property, plant and equipment, net | 201,547 | 208,094 | ||||
Intangible assets, net | 31,519 | 32,058 | ||||
Goodwill | 7,823 | 7,824 | ||||
Other assets, including investments in subs | 5,578 | 5,832 | ||||
Total assets | 377,160 | 360,761 | ||||
Accounts payable | 106,208 | 89,659 | ||||
Accrued expenses | 9,437 | 8,793 | ||||
Current maturities of long-term debt | 40,482 | 29,347 | ||||
Total current liabilities | 156,127 | 127,799 | ||||
Long-term debt | 172,243 | 168,566 | ||||
Other liabilities | 27,238 | 42,482 | ||||
Total liabilities | 355,608 | 338,847 | ||||
Redeemable noncontrolling interests | 111,240 | 111,240 | ||||
Common stock | 14,908 | 14,908 | ||||
Additional paid-in capital | 791,196 | 779,678 | ||||
Retained earnings (deficit) | (740,848) | (734,351) | ||||
Total Steel Dynamics, Inc. equity | 65,256 | 60,235 | ||||
Noncontrolling interests | (154,944) | (149,561) | ||||
Total equity | (89,688) | (89,326) | ||||
Total liabilities and equity | 377,160 | 360,761 | ||||
Consolidating Adjustments | ||||||
Condensed Consolidating Balance Sheets | ||||||
Accounts receivable, net | (870,786) | (780,298) | ||||
Inventories | (9,076) | (9,952) | ||||
Other current assets | (3,708) | (2,361) | ||||
Total current assets | (883,570) | (792,611) | ||||
Other assets, including investments in subs | (2,596,663) | (2,753,537) | ||||
Total assets | (3,480,233) | (3,546,148) | ||||
Accounts payable | (122,049) | (101,316) | ||||
Accrued expenses | (130,102) | (113,808) | ||||
Current maturities of long-term debt | (25,661) | (27,089) | ||||
Total current liabilities | (277,812) | (242,213) | ||||
Long-term debt | (145,000) | (139,670) | ||||
Other liabilities | (62,269) | (499,191) | ||||
Total liabilities | (485,081) | (881,074) | ||||
Common stock | (1,742,767) | (1,742,767) | ||||
Additional paid-in capital | (919,272) | (907,754) | ||||
Retained earnings (deficit) | (333,113) | (14,553) | ||||
Total Steel Dynamics, Inc. equity | (2,995,152) | (2,665,074) | ||||
Total equity | (2,995,152) | (2,665,074) | ||||
Total liabilities and equity | $ (3,480,233) | $ (3,546,148) |
Condensed Consolidating Infor41
Condensed Consolidating Information - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Consolidating Statements of Operations | ||||
Net sales | $ 2,443,382 | $ 2,101,310 | $ 7,202,318 | $ 5,866,513 |
Costs of goods sold | 2,046,864 | 1,692,807 | 5,941,128 | 4,841,591 |
Gross profit | 396,518 | 408,503 | 1,261,190 | 1,024,922 |
Selling, general and administrative | 125,503 | 124,648 | 390,256 | 352,980 |
Operating income | 271,015 | 283,855 | 870,934 | 671,942 |
Interest expense, net of capitalized interest | 34,177 | 36,199 | 102,019 | 109,888 |
Other (income) expense, net | 2,526 | 4,351 | (4,968) | 741 |
Income before income taxes | 234,312 | 243,305 | 773,883 | 561,313 |
Income taxes (benefit) | 83,300 | 88,892 | 271,258 | 205,139 |
Net income | 151,012 | 154,413 | 502,625 | 356,174 |
Net loss attributable to noncontrolling interests | 2,246 | 2,984 | 5,383 | 5,929 |
Net income attributable to Steel Dynamics, Inc. | 153,258 | 157,397 | 508,008 | 362,103 |
Parent | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | 946,136 | 845,585 | 2,797,557 | 2,297,389 |
Costs of goods sold | 763,310 | 647,983 | 2,241,936 | 1,823,408 |
Gross profit | 182,826 | 197,602 | 555,621 | 473,981 |
Selling, general and administrative | 51,464 | 52,995 | 164,061 | 145,596 |
Operating income | 131,362 | 144,607 | 391,560 | 328,385 |
Interest expense, net of capitalized interest | 18,831 | 17,818 | 55,353 | 53,842 |
Other (income) expense, net | 2,660 | 2,342 | (4,463) | (2,137) |
Income before income taxes | 109,871 | 124,447 | 340,670 | 276,680 |
Income taxes (benefit) | 35,309 | 40,242 | 106,036 | 89,210 |
Net income | 74,562 | 84,205 | 234,634 | 187,470 |
Equity in net income of subsidiaries | 78,696 | 73,192 | 273,374 | 174,633 |
Net income attributable to Steel Dynamics, Inc. | 153,258 | 157,397 | 508,008 | 362,103 |
Guarantors | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | 2,641,067 | 2,258,466 | 7,827,981 | 6,322,158 |
Costs of goods sold | 2,402,670 | 2,016,874 | 7,054,938 | 5,676,265 |
Gross profit | 238,397 | 241,592 | 773,043 | 645,893 |
Selling, general and administrative | 74,151 | 72,605 | 226,153 | 212,613 |
Operating income | 164,246 | 168,987 | 546,890 | 433,280 |
Interest expense, net of capitalized interest | 14,481 | 17,741 | 44,245 | 54,493 |
Other (income) expense, net | (2,492) | 3,937 | (7,305) | 8,012 |
Income before income taxes | 152,257 | 147,309 | 509,950 | 370,775 |
Income taxes (benefit) | 55,183 | 55,684 | 184,891 | 139,958 |
Net income | 97,074 | 91,625 | 325,059 | 230,817 |
Net income attributable to Steel Dynamics, Inc. | 97,074 | 91,625 | 325,059 | 230,817 |
Combined Non-Guarantors | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | 161,556 | 96,409 | 449,902 | 271,694 |
Costs of goods sold | 157,564 | 100,470 | 432,657 | 286,486 |
Gross profit | 3,992 | (4,061) | 17,245 | (14,792) |
Selling, general and administrative | 4,896 | 4,134 | 15,253 | 9,352 |
Operating income | (904) | (8,195) | 1,992 | (24,144) |
Interest expense, net of capitalized interest | 3,181 | 2,847 | 9,494 | 7,558 |
Other (income) expense, net | 42 | (4,135) | (273) | (11,139) |
Income before income taxes | (4,127) | (6,907) | (7,229) | (20,563) |
Income taxes (benefit) | 1,169 | 797 | 4,651 | (63) |
Net income | (5,296) | (7,704) | (11,880) | (20,500) |
Net loss attributable to noncontrolling interests | 2,246 | 2,984 | 5,383 | 5,929 |
Net income attributable to Steel Dynamics, Inc. | (3,050) | (4,720) | (6,497) | (14,571) |
Consolidating Adjustments | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | (1,305,377) | (1,099,150) | (3,873,122) | (3,024,728) |
Costs of goods sold | (1,276,680) | (1,072,520) | (3,788,403) | (2,944,568) |
Gross profit | (28,697) | (26,630) | (84,719) | (80,160) |
Selling, general and administrative | (5,008) | (5,086) | (15,211) | (14,581) |
Operating income | (23,689) | (21,544) | (69,508) | (65,579) |
Interest expense, net of capitalized interest | (2,316) | (2,207) | (7,073) | (6,005) |
Other (income) expense, net | 2,316 | 2,207 | 7,073 | 6,005 |
Income before income taxes | (23,689) | (21,544) | (69,508) | (65,579) |
Income taxes (benefit) | (8,361) | (7,831) | (24,320) | (23,966) |
Net income | (15,328) | (13,713) | (45,188) | (41,613) |
Equity in net income of subsidiaries | (78,696) | (73,192) | (273,374) | (174,633) |
Net income attributable to Steel Dynamics, Inc. | $ (94,024) | $ (86,905) | $ (318,562) | $ (216,246) |
Condensed Consolidating Infor42
Condensed Consolidating Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | $ 226,148 | $ 196,362 | $ 547,605 | $ 645,362 |
Net cash used in investing activities | (47,232) | (167,332) | (102,878) | (226,466) |
Net cash provided by (used in) financing activities | 14,205 | (30,207) | (184,246) | (94,439) |
Increase (decrease) in cash and equivalents | 193,121 | (1,177) | 260,481 | 324,457 |
Cash and equivalents at beginning of period | 908,843 | 1,052,666 | 841,483 | 727,032 |
Cash and equivalents at end of period | 1,101,964 | 1,051,489 | 1,101,964 | 1,051,489 |
Parent | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | 126,267 | 282,918 | ||
Net cash used in investing activities | (48,799) | (143,427) | ||
Net cash provided by (used in) financing activities | 220,346 | 196,242 | ||
Increase (decrease) in cash and equivalents | 297,814 | 335,733 | ||
Cash and equivalents at beginning of period | 766,685 | 636,877 | ||
Cash and equivalents at end of period | 1,064,499 | 972,610 | 1,064,499 | 972,610 |
Guarantors | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | 434,450 | 358,657 | ||
Net cash used in investing activities | (50,975) | (81,983) | ||
Net cash provided by (used in) financing activities | (405,184) | (297,596) | ||
Increase (decrease) in cash and equivalents | (21,709) | (20,922) | ||
Cash and equivalents at beginning of period | 54,677 | 81,976 | ||
Cash and equivalents at end of period | 32,968 | 61,054 | 32,968 | 61,054 |
Combined Non-Guarantors | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | (17,762) | 52 | ||
Net cash used in investing activities | (7,006) | (3,935) | ||
Net cash provided by (used in) financing activities | 9,144 | 13,529 | ||
Increase (decrease) in cash and equivalents | (15,624) | 9,646 | ||
Cash and equivalents at beginning of period | 20,121 | 8,179 | ||
Cash and equivalents at end of period | $ 4,497 | $ 17,825 | 4,497 | 17,825 |
Consolidating Adjustments | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | 4,650 | 3,735 | ||
Net cash used in investing activities | 3,902 | 2,879 | ||
Net cash provided by (used in) financing activities | $ (8,552) | $ (6,614) |