Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 28, 2019 | |
Document And Entity Information Abstract | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 0-21719 | |
Entity Registrant Name | Steel Dynamics, Inc | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-1929476 | |
Entity Address, Address Line One | 7575 West Jefferson Blvd | |
Entity Address, City or Town | Fort Wayne | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46804 | |
City Area Code | 260 | |
Local Phone Number | 969-3500 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | STLD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 215,452,169 | |
Entity Central Index Key | 0001022671 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and equivalents | $ 1,146,007 | $ 828,220 |
Short-term investments | 69,529 | 228,783 |
Accounts receivable, net | 983,515 | 1,040,220 |
Accounts receivable-related parties | 3,431 | 3,536 |
Inventories | 1,767,020 | 1,859,168 |
Other current assets | 50,818 | 72,730 |
Total current assets | 4,020,320 | 4,032,657 |
Property, plant and equipment, net | 3,031,731 | 2,945,767 |
Intangible assets, net | 249,598 | 270,328 |
Goodwill | 540,913 | 429,645 |
Other assets | 100,685 | 25,166 |
Total assets | 7,943,247 | 7,703,563 |
Current liabilities | ||
Accounts payable | 518,909 | 536,743 |
Accounts payable-related parties | 9,720 | 14,011 |
Income taxes payable | 2,074 | 7,468 |
Accrued payroll and benefits | 181,785 | 264,542 |
Accrued interest | 47,945 | 25,526 |
Accrued expenses | 162,692 | 146,613 |
Current maturities of long-term debt | 82,150 | 24,234 |
Total current liabilities | 1,005,275 | 1,019,137 |
Long-term debt | 2,355,243 | 2,352,489 |
Deferred income taxes | 468,248 | 435,838 |
Other liabilities | 70,126 | 8,870 |
Total liabilities | 3,898,892 | 3,816,334 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 143,614 | 111,240 |
Equity | ||
Common stock voting, $.0025 par value; 900,000,000 shares authorized; 265,553,499 and 265,822,402 shares issued; and 215,740,572 and 225,272,174 shares outstanding, as of September 30, 2019 and December 31, 2018, respectively | 645 | 645 |
Treasury stock, at cost; 49,812,927 and 40,550,228 shares, as of September 30, 2019 and December 31, 2018, respectively | (1,469,078) | (1,184,243) |
Additional paid-in capital | 1,175,512 | 1,160,048 |
Retained earnings | 4,349,523 | 3,958,320 |
Accumulated other comprehensive income | 39 | 301 |
Total Steel Dynamics, Inc. equity | 4,056,641 | 3,935,071 |
Noncontrolling interests | (155,900) | (159,082) |
Total equity | 3,900,741 | 3,775,989 |
Total liabilities and equity | $ 7,943,247 | $ 7,703,563 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
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) | 265,553,499 | 265,822,402 |
Common stock voting, shares outstanding (in shares) | 215,740,572 | 225,272,174 |
Treasury stock, shares (in shares) | 49,812,927 | 40,550,228 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales | ||||
Unrelated parties | $ 2,523,279 | $ 3,220,891 | $ 8,104,129 | $ 8,902,025 |
Related parties | 3,566 | 2,656 | 10,666 | 15,922 |
Total net sales | 2,526,845 | 3,223,547 | 8,114,795 | 8,917,947 |
Costs of goods sold | 2,167,006 | 2,537,466 | 6,900,220 | 7,116,368 |
Gross profit | 359,839 | 686,081 | 1,214,575 | 1,801,579 |
Selling, general and administrative expenses | 107,242 | 102,614 | 324,530 | 310,076 |
Profit sharing | 17,848 | 45,304 | 64,396 | 114,301 |
Amortization of intangible assets | 6,704 | 6,591 | 20,730 | 20,346 |
Operating income | 228,045 | 531,572 | 804,919 | 1,356,856 |
Interest expense, net of capitalized interest | 31,339 | 31,560 | 94,782 | 94,968 |
Other income, net | (4,545) | (7,103) | (15,137) | (16,601) |
Income before income taxes | 201,251 | 507,115 | 725,274 | 1,278,489 |
Income tax expense | 48,643 | 109,209 | 171,093 | 292,536 |
Net income | 152,608 | 397,906 | 554,181 | 985,953 |
Net (income) loss attributable to noncontrolling interests | (1,560) | 469 | (4,503) | 2,422 |
Net income attributable to Steel Dynamics, Inc. | $ 151,048 | $ 398,375 | $ 549,678 | $ 988,375 |
Basic earnings per share attributable to Steel Dynamics, Inc. stockholders | $ 0.69 | $ 1.70 | $ 2.49 | $ 4.20 |
Weighted average common shares outstanding (in shares) | 217,873 | 234,208 | 221,145 | 235,483 |
Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share) | $ 0.69 | $ 1.69 | $ 2.47 | $ 4.17 |
Weighted average common shares and share equivalents outstanding (in shares) | 219,109 | 235,649 | 222,197 | 236,772 |
Dividends declared per share (in dollars per share) | $ 0.2400 | $ 0.1875 | $ 0.7200 | $ 0.5625 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | $ 152,608 | $ 397,906 | $ 554,181 | $ 985,953 |
Other comprehensive income (loss) - net unrealized gain (loss) on cash flow hedging derivatives, net of income tax expense (benefit) | (39) | 63 | (262) | (42) |
Comprehensive income | 152,569 | 397,969 | 553,919 | 985,911 |
Comprehensive (income) loss attributable to noncontrolling interests | (1,560) | 469 | (4,503) | 2,422 |
Comprehensive income attributable to Steel Dynamics, Inc. | $ 151,009 | $ 398,438 | $ 549,416 | $ 988,333 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities: | ||||
Net income | $ 152,608 | $ 397,906 | $ 554,181 | $ 985,953 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 79,470 | 81,383 | 240,555 | 236,638 |
Equity-based compensation | 8,841 | 7,978 | 33,229 | 28,860 |
Deferred income taxes | 11,311 | 23,899 | 34,952 | 45,437 |
Other adjustments | (1,116) | 312 | (952) | 197 |
Changes in certain assets and liabilities: | ||||
Accounts receivable | 85,633 | (48,024) | 95,195 | (330,307) |
Inventories | 35,479 | (69,885) | 139,889 | (240,908) |
Other assets | 39 | (6,429) | 7,632 | (7,164) |
Accounts payable | 1,111 | (14,883) | (54,167) | 100,368 |
Income taxes receivable/payable | 6,293 | (31,127) | 19,715 | 55,414 |
Accrued expenses | 64,533 | 79,310 | (83,001) | 49,920 |
Net cash provided by operating activities | 444,202 | 420,440 | 987,228 | 924,408 |
Investing activities: | ||||
Purchases of property, plant and equipment | (154,131) | (70,668) | (293,687) | (176,477) |
Purchases of short-term investments | (34,884) | (35,000) | (134,026) | (125,000) |
Proceeds from maturities of short-term investments | 79,508 | 10,000 | 293,279 | 10,000 |
Acquisition of business, net of cash and restricted cash acquired | (3,694) | (37,589) | (97,106) | (433,998) |
Other investing activities | 2,746 | 576 | 4,023 | 1,462 |
Net cash used in investing activities | (110,455) | (132,681) | (227,517) | (724,013) |
Financing activities: | ||||
Issuance of current and long-term debt | 128,230 | 110,041 | 374,686 | 327,670 |
Repayment of current and long-term debt | (119,988) | (115,039) | (369,134) | (346,162) |
Dividends paid | (52,751) | (44,081) | (148,493) | (125,146) |
Purchases of treasury stock | (114,950) | (74,965) | (292,394) | (193,379) |
Other financing activities | (1,527) | (7,259) | (8,324) | |
Net cash used in financing activities | (160,986) | (124,044) | (442,594) | (345,341) |
Increase (decrease) in cash, cash equivalents, and restricted cash | 172,761 | 163,715 | 317,117 | (144,946) |
Cash, cash equivalents, and restricted cash at beginning of period | 978,779 | 726,424 | 834,423 | 1,035,085 |
Cash, cash equivalents, and restricted cash at end of period | 1,151,540 | 890,139 | 1,151,540 | 890,139 |
Supplemental disclosure information: | ||||
Cash paid for interest | 9,115 | 8,643 | 71,702 | 70,498 |
Cash paid for income taxes, net | $ 29,794 | $ 119,802 | $ 116,149 | $ 198,752 |
Description of the Business and
Description of the Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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 reportable segments: steel operations, metals recycling operations, and steel fabrication operations. Steel Operations Segment. Metals Recycling Operations Segment. 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 Other. Significant Accounting Policies Principles of Consolidation . Use of Estimates. In the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the interim period results. These consolidated 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, 2018. Note 1. Description of the Business and Significant Accounting Policies (Continued) Cash and Equivalents, and Restricted Cash Cash and equivalents include all highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash is primarily funds held in escrow as required by various insurance and government organizations. The balance of cash, cash equivalents and restricted cash in the consolidated statements of cash flows includes restricted cash of $5.5 million, $6.2 million, $6.2 million, $5.8 million, $6.0 million, and $6.4 million at September 30, 2019, June 30, 2019, December 31, 2018, September 30, 2018, June 30, 2018, and December 31, 2017, respectively, which are recorded in Other Assets (noncurrent) in the company’s consolidated balance sheets. Goodwill The company’s goodwill consisted of the following at September 30, 2019, and December 31, 2018, (in thousands): September 30, December 31, 2019 2018 Steel Operations Segment $ 359,283 $ 245,473 Metals Recycling Operations Segment 179,705 182,247 Steel Fabrication Operations Segment 1,925 1,925 $ 540,913 $ 429,645 The company acquired a 75% equity interest in United Steel Supply on March 1, 2019 (refer to Note 2 Acquisition – United Steel Supply, LLC Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, and it’s subsequent corresponding updates: which requires an entity to use a forward-looking expected loss model versus the current incurred loss model for most financial instruments, including accounts receivable. This new guidance is effective for annual and interim periods beginning after December 15, 2019, but can be early adopted. The company anticipates adopting ASU 2016-13 on January 1, 2020. The company is working through its adoption plan to evaluate policies, processes and systems to determine the impact ASU 2016-13 will have in its consolidated financial statements and related disclosure . |
Acquisition - United Steel Supp
Acquisition - United Steel Supply | 9 Months Ended |
Sep. 30, 2019 | |
Acquisition - United Steel Supply | |
Acquisition - United Steel Supply | Note 2. Acquisition – United Steel Supply, LLC On March 1, 2019, the company purchased 75% of the equity interest of United Steel Supply, LLC (USS) for cash consideration of $93.4 million, plus a customary working capital transaction purchase price adjustment of $3.7 million in September 2019. Additionally, the company has an option to purchase, and the sellers have the option to require the company to purchase, the remaining 25% equity interest of USS in the future. Headquartered in Austin, Texas, USS is a leading distributor of painted Galvalume ® Note 2. Acquisition – United Steel Supply, LLC (Continued) The aggregate purchase price was preliminarily allocated to the opening balance sheet of USS as of March 1, 2019, and updated in September 2019 upon the final working capital adjustment, as presented below. The following allocation of the purchase price (in thousands) is preliminary based on the information available to estimate the fair value of assets acquired and liabilities assumed. The accounting for the acquisition has not yet been completed because the company has not finalized the valuations of identifiable intangible assets, if any, and thus goodwill. The company anticipates finalizing the valuation of identifiable intangible assets by December 31, 2019. September 30, 2019 Allocation Adjustments Initial Allocation Current assets, net of cash acquired $ 86,236 $ (7,784) $ 94,020 Property, plant & equipment 7,388 - 7,388 Intangible assets and goodwill 113,810 11,892 101,918 Total assets acquired 207,434 4,108 203,326 Liabilities assumed 77,954 (3,270) 81,224 Redeemable noncontrolling interest 32,374 3,684 28,690 Net cash consideration $ 97,106 $ 3,694 $ 93,412 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Leases | Note 3. Leases In February 2016, the FASB issued ASU 2016-02, Leases (ASC 842) and its subsequent corresponding updates; which established 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. The company adopted ASC 842 effective January 1, 2019, using the optional transition method, thereby applying the new guidance at the effective date, without retrospective application to prior periods. The company elected practical expedients permitted under the transition guidance which allowed the company to not reassess under the new standard its prior conclusions regarding lease identification and classification. The company elected to use hindsight when determining the lease term. The company also elected the short-term lease exemption, and did not recognize right-of-use assets and lease liabilities for short-term leases, those with lease commencement date terms of 12 months or less. The company recognized right-of-use assets and lease liabilities of $76.3 million, with no impact on retained earnings, in the consolidated balance sheet on January 1, 2019, and the standard did not have a significant impact on the company’s operating results or cash flows for the three and nine-month periods ended September 30, 2019. The company has operating leases relating principally to transportation and other equipment, and some real estate. The company determines if an arrangement contains a lease at inception, which generally occurs when the arrangement identifies a specific asset that the company has the right to direct the use of and obtain substantially all of the economic benefit from use of the identified asset. Certain of our lease agreements contain rent escalation clauses (including fixed and index-based escalations), and options to extend or terminate the lease. For purposes of calculating operating lease obligations under the standard, the company’s lease terms include options to extend the lease when it is reasonably certain that the company will exercise such option. The company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is the rate of interest the company could borrow on a collateralized basis over a similar term with similar payments. Operating lease expense is recognized on a straight-line basis over the lease term . Operating lease right-of-use assets and lease obligations included in the consolidated balance sheet at September 30, 2019, are as follows (in thousands): Right of use assets under operating leases: Other assets - noncurrent $ 74,843 Lease obligations under operating leases: Accrued liabilities $ 17,202 Other liabilities - noncurrent 57,946 $ 75,148 Note 3. Leases (Continued) The weighted average remaining lease term for our operating leases is six years and the weighted-average discount rate is 4.0% as of September 30, 2019. Future operating lease liabilities as of September 30, 2019, for the next five years and thereafter are as follows (in thousands): 2019 - for the remaining three months $ 19,954 2020 17,120 2021 13,719 2022 10,636 2023 7,506 Thereafter 17,095 Total undiscounted cash flows 86,030 Less imputed interest (10,882) Lease obligations under operating leases $ 75,148 Operating lease expense included in the consolidated statements of income was $5.2 million and $15.0 million for the three and nine months ended September 30, 2019, respectively. Cash paid related to operating lease obligations was $5.2 million and $15.1 million for the three and nine months ended September 30, 2019, respectively. Variable lease costs were not material for the three and nine months ended September 30, 2019. Short-term lease expense included in the consolidated statements of income was $5.0 million and $14.8 million for the three and nine months ended September 30, 2019, respectively. Right-of-use assets obtained in exchange for new operating lease liabilities during the three and nine months ended September 30, 2019 were $1.4 million and $11.3 million, respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share | |
Earnings Per Share | Note 4. 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, restricted stock, and performance 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 as of or for the three and nine-month periods ended September 30, 2019 and 2018. Three Months Ended September 30, 2019 2018 Weighted Weighted Average Average Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 151,048 217,873 $ 0.69 $ 398,375 234,208 $ 1.70 Dilutive common share equivalents - 1,236 - 1,441 Diluted earnings per share $ 151,048 219,109 $ 0.69 $ 398,375 235,649 $ 1.69 Note 4. Earnings Per Share (Continued) Nine Months Ended September 30, 2019 2018 Weighted Weighted Average Average Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 549,678 221,145 $ 2.49 $ 988,375 235,483 $ 4.20 Dilutive common share equivalents - 1,052 - 1,289 Diluted earnings per share $ 549,678 222,197 $ 2.47 $ 988,375 236,772 $ 4.17 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventories | |
Inventories | Note 5. 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, 2019 2018 Raw materials $ 758,677 $ 810,766 Supplies 492,604 436,828 Work in progress 156,443 195,224 Finished goods 359,296 416,350 Total inventories $ 1,767,020 $ 1,859,168 |
Changes in Equity
Changes in Equity | 9 Months Ended |
Sep. 30, 2019 | |
Changes in Equity | |
Changes in Equity | Note 6. Changes in Equity The following tables provide 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 noncontrolling interests (in thousands) for each quarterly period in the nine months ended September 30, 2019 and 2018: Stockholders of Steel Dynamics, Inc. Accumulated Additional Other Redeemable Common Treasury Paid-In Retained Comprehensive Noncontrolling Total Noncontrolling Stock Stock Capital Earnings Loss Interests Equity Interests Balances at December 31, 2018 $ 645 $ (1,184,243) $ 1,160,048 $ 3,958,320 $ 301 $ (159,082) $ 3,775,989 $ 111,240 Dividends declared - - - (53,504) - - (53,504) - Noncontrolling investors of USS - - - - - - - 28,690 Share repurchases - (84,308) - - - - (84,308) - Equity-based compensation - 6,714 91 (110) - - 6,695 - Net income - - - 204,328 - 499 204,827 - Other comprehensive loss, net of tax - - - - (171) - (171) - Balances at March 31, 2019 645 (1,261,837) 1,160,139 4,109,034 130 (158,583) 3,849,528 139,930 Dividends declared - - - (52,751) - - (52,751) - Share repurchases - (93,136) - - - - (93,136) - Equity-based compensation - 816 7,366 (166) - - 8,016 - Net income - - - 194,302 - 2,444 196,746 - Other comprehensive loss, net of tax - - - - (52) - (52) - Balances at June 30, 2019 645 (1,354,157) 1,167,505 4,250,419 78 (156,139) 3,908,351 139,930 Dividends declared - - - (51,778) - - (51,778) - Noncontrolling investors of USS - - - - - (1,321) (1,321) 3,684 Share repurchases - (114,950) - - - - (114,950) - Equity-based compensation - 29 8,007 (166) - - 7,870 - Net income - - - 151,048 - 1,560 152,608 - Other comprehensive loss, net of tax - - - - (39) - (39) - Balances at September 30, 2019 $ 645 $ (1,469,078) $ 1,175,512 $ 4,349,523 $ 39 $ (155,900) $ 3,900,741 $ 143,614 Note 6. Changes in Equity (Continued) Stockholders of Steel Dynamics, Inc. Accumulated Additional Other Redeemable Common Treasury Paid-In Retained Comprehensive Noncontrolling Total Noncontrolling Stock Stock Capital Earnings Loss Interests Equity Interests Balances at December 31, 2017 $ 644 $ (665,297) $ 1,141,534 $ 2,874,693 $ - $ (156,506) $ 3,195,068 $ 111,240 Dividends declared - - - (44,269) - - (44,269) - Share repurchases - (69,269) - - - - (69,269) - Equity-based compensation - 3,866 1,337 (71) - - 5,132 - Comprehensive and net income (loss) - - - 227,551 - (2,076) 225,475 - Balances at March 31, 2018 644 (730,700) 1,142,871 3,057,904 - (158,582) 3,312,137 111,240 Dividends declared - - - (44,080) - - (44,080) - Noncontrolling investors, net - - - - - (3) (3) - Share repurchases - (49,145) - - - - (49,145) - Equity-based compensation - 757 6,496 (110) - - 7,143 - Net income - - - 362,449 - 123 362,572 - Other comprehensive loss, net of tax - - - - (105) - (105) - Balances at June 30, 2018 644 (779,088) 1,149,367 3,376,163 (105) (158,462) 3,588,519 111,240 Dividends declared - - - (43,767) - - (43,767) - Noncontrolling investors, net - - - - - - - - Share repurchases - (74,965) - - - - (74,965) - Equity-based compensation - 1 7,189 (109) - - 7,081 - Net income - - - 398,375 - (469) 397,906 - Other comprehensive loss, net of tax - - - - 63 - 63 - Balances at September 30, 2018 $ 644 $ (854,052) $ 1,156,556 $ 3,730,662 $ (42) $ (158,931) $ 3,874,837 $ 111,240 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 7. Derivative Financial Instruments The company is exposed to certain risks relating to its ongoing business operations. The company utilizes derivative instruments to mitigate commodity margin risk, and occasionally to mitigate foreign currency exchange rate risk or interest rate fluctuation 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 and ferrous 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 Commodity Futures Long/Short Metric Tons Aluminum Long 575 Aluminum Short 4,100 Copper Long 10,036 Copper Short 21,704 Note 7. Derivative Financial Instruments (Continued) The following summarizes the location and amounts of the fair values reported on the company’s consolidated balance sheets as of September 30, 2019, and December 31, 2018, and gains and losses related to derivatives included in the company’s statement of income for the three and nine-month periods ended September 30, 2019 and 2018 (in thousands): Asset Derivatives Liability Derivatives Balance sheet Fair Value Fair Value location September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Derivative instruments designated as hedges Commodity futures Other current assets $ 1,063 $ 2,999 $ 805 $ 1,837 Derivative instruments not designated as hedges Commodity futures Other current assets 313 1,559 3,100 2,053 Total derivative instruments $ 1,376 $ 4,558 $ 3,905 $ 3,890 The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements totaled $4.3 million at September 30, 2019, and $4.9 million at December 31, 2018, and are reflected in other current assets in the consolidated balance sheets. Amount of gain (loss) Amount of gain (loss) recognized in income Location of gain recognized in income Location of gain on derivatives for the (loss) recognized on derivatives for the (loss) recognized three months ended Hedged items in in income on three months ended in income on September 30, fair value hedge related hedged September 30, derivatives 2019 2018 relationships items 2019 2018 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ 302 $ (8,943) Firm commitments Costs of goods sold $ (519) $ 5,111 Inventory Costs of goods sold (182) 1,753 Derivatives not designated $ (701) $ 6,864 as hedging instruments Commodity futures Costs of goods sold $ 4,536 $ 13,803 Amount of gain (loss) Amount of gain (loss) recognized in income Location of gain recognized in income Location of gain on derivatives for the (loss) recognized on derivatives for the (loss) recognized three months ended Hedged items in in income on three months ended in income on September 30, fair value hedge related hedged September 30, derivatives 2019 2018 relationships items 2019 2018 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ (560) $ 1,113 Firm commitments Costs of goods sold $ (603) $ 1,718 Inventory Costs of goods sold 245 (1,659) Derivatives not designated $ (358) $ 59 as hedging instruments Commodity futures Costs of goods sold $ 5,946 $ 19,523 Derivatives accounted for as fair value hedges had ineffectiveness resulting in gains of $69,000 and $5,000 during the three-month periods ended September 30, 2019, and 2018, respectively; and gains of $101,000 and losses of $10,500 during the nine-month periods ended September 30, 2019, and 2018, respectively. Losses excluded from hedge effectiveness testing of $399,000 and $2.1 million increased cost of goods sold during the three-month periods ended September 30, 2019, and 2018, respectively. Losses excluded from hedge effectiveness testing of $918,000 increased cost of goods sold during the nine-month period ended September 30, 2019 and gains of $1.2 million decreased the cost of goods sold during the nine-month period ended September 30, 2018. Note 7. Derivative Financial Instruments (Continued) Derivatives accounted for as cash flow hedges resulted in net losses of $8,000 and net gains of $82,000 recognized in other comprehensive income for the three-month periods ended September 30, 2019, and 2018, respectively; and net gains of $139,000 and net losses of $55,000 for the nine-month periods ended September 30, 2019 and 2018, respectively. Net gains of $43,000 and $483,000 were reclassified from accumulated other comprehensive income for the three and nine-month periods ended September 30, 2019. At September 30, 2019, the company expects to reclassify $51,000 of net gains on derivative instruments from accumulated other comprehensive income to earnings during the next 12 months due to the settlement of futures contracts. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements | |
Fair Value Measurements | Note 8. Fair Value Measurements FASB accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. Levels within the hierarchy are defined as follows: ● Level 1—Unadjusted quoted prices for identical assets and liabilities in active markets; ● Level 2—Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable for the asset or liability, either directly or indirectly; and ● Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The following table sets forth financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheet and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of September 30, 2019, and December 31, 2018 (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, 2019 Short-term investments $ 69,529 $ - $ 69,529 $ - Commodity futures – financial assets 1,376 - 1,376 - Commodity futures – financial liabilities 3,905 - 3,905 - December 31, 2018 Short-term investments $ 228,783 $ - $ 228,783 $ - Commodity futures – financial assets 4,558 - 4,558 - Commodity futures – financial liabilities 3,890 - 3,890 - The carrying amounts of financial instruments including cash and equivalents approximate fair value (Level 1). The fair values of short-term investments and the 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 (Level 2). The fair value of long-term debt, including current maturities, as determined by quoted market prices (Level 2), was approximately $2.5 billion and $2.4 billion at September 30, 2019 and December 31, 2018, respectively (with a corresponding carrying amount in the consolidated balance sheet of $2.5 billion at September 30, 2019 and $2.4 billion at December 31, 2018). |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 9. 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, 2019 | |
Segment Information | |
Segment Information | Note 10. 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 the consolidated 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 the consolidated 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 smaller joint ventures, and the idle Minnesota ironmaking operations. 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. The company’s segment results, including disaggregated revenue by segment to external, external non-United States, and other segment customers, are as follows (in thousands): Metals Steel For the three months ended Steel Recycling Fabrication September 30, 2019 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 1,838,682 $ 230,086 $ 245,914 $ 77,330 $ - $ 2,392,012 External Non-U.S. 83,845 50,823 165 - - 134,833 Other segments 85,678 293,999 637 100 (380,414) - 2,008,205 574,908 246,716 77,430 (380,414) 2,526,845 Operating income (loss) 234,683 (101) 35,280 (42,441) (1) 624 (2) 228,045 Income (loss) before income taxes 217,699 (1,159) 34,080 (49,780) 411 201,251 Depreciation and amortization 63,170 11,769 2,941 1,590 - 79,470 Capital expenditures 40,818 11,498 3,759 98,056 - 154,131 As of September 30, 2019 Assets $ 5,119,419 $ 972,493 $ 414,835 $ 1,513,798 (3) $ (77,298) (4) $ 7,943,247 Footnotes related to the three months ended September 30, 2019, segment results (in millions): (1) Corporate SG&A $ (15.4) (2) Gross profit increase from intra-company sales $ 0.4 Company-wide equity-based compensation (8.7) Profit sharing (17.0) Other, net (1.3) $ (42.4) (3) Cash and equivalents $ 1,072.5 (4) Elimination of intra-company receivables $ (61.2) Short-term investments 69.5 Elimination of intra-company debt (8.7) Accounts receivable 7.8 Other (7.4) Inventories 36.5 $ (77.3) Property, plant and equipment, net 271.8 Intra-company debt 8.7 Other 47.0 $ 1,513.8 Note 10. Segment Information (Continued) Metals Steel For the three months ended Steel Recycling Fabrication September 30, 2018 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 2,400,329 $ 323,611 $ 250,625 $ 110,659 $ - $ 3,085,224 External Non-U.S. 74,715 63,608 - - - 138,323 Other segments 111,582 412,795 120 1,294 (525,791) - 2,586,626 800,014 250,745 111,953 (525,791) 3,223,547 Operating income (loss) 573,848 14,674 13,104 (67,113) (1) (2,941) 531,572 Income (loss) before income taxes 557,870 13,488 11,801 (73,109) (2,935) (2) 507,115 Depreciation and amortization 64,088 11,491 2,941 2,863 - 81,383 Capital expenditures 57,074 11,603 1,395 596 - 70,668 Footnotes related to the three months ended September 30, 2018, segment results (in millions): (1) Corporate SG&A $ (13.8) (2) Gross profit decrease from intra-company sales $ (2.9) Company-wide equity-based compensation (7.8) Profit sharing (43.4) Other, net (2.1) $ (67.1) Metals Steel For the nine months ended Steel Recycling Fabrication September 30, 2019 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 5,918,189 $ 778,637 $ 714,782 $ 290,219 $ - $ 7,701,827 External Non-U.S. 235,259 176,508 1,201 - - 412,968 Other segments 243,107 1,013,574 826 469 (1,257,976) - 6,396,555 1,968,719 716,809 290,688 (1,257,976) 8,114,795 Operating income (loss) 835,172 24,480 86,567 (148,514) (1) 7,214 804,919 Income (loss) before income taxes 784,873 20,846 82,897 (169,914) 6,572 (2) 725,274 Depreciation and amortization 188,832 34,733 8,882 8,108 - 240,555 Capital expenditures 128,069 30,313 8,771 126,534 - 293,687 Footnotes related to the nine months ended September 30, 2019, segment results (in millions): (1) Corporate SG&A $ (56.0) (2) Gross profit increase from intra-company sales $ 6.6 Company-wide equity-based compensation (26.1) Profit sharing (61.3) Other, net (5.1) $ (148.5) Note 10. Segment Information (Continued) Metals Steel For the nine months ended Steel Recycling Fabrication September 30, 2018 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 6,360,177 $ 1,001,267 $ 669,500 $ 326,086 $ - $ 8,357,030 External Non-U.S. 362,083 198,778 56 - - 560,917 Other segments 281,828 1,236,830 788 1,565 (1,521,011) - 7,004,088 2,436,875 670,344 327,651 (1,521,011) 8,917,947 Operating income (loss) 1,441,904 62,027 47,039 (186,137) (1) (7,977) 1,356,856 Income (loss) before income taxes 1,390,074 57,458 42,898 (203,970) (7,971) (2) 1,278,489 Depreciation and amortization 184,998 34,602 8,785 8,253 - 236,638 Capital expenditures 137,484 27,496 5,526 5,971 - 176,477 Footnotes related to the nine months ended September 30, 2018, segment results (in millions): (1) Corporate SG&A $ (44.0) (2) Gross profit decrease from intra-company sales $ (8.0) Company-wide equity-based compensation (24.8) Profit sharing (109.6) Other, net (7.7) $ (186.1) |
Condensed Consolidating Informa
Condensed Consolidating Information | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Consolidating Information Disclosure Abstract | |
Condensed Consolidating Information | Note 11. Condensed Consolidating Information Certain 100% owned subsidiaries of SDI fully and unconditionally guaranteed jointly and severally all of the indebtedness relating to the issuance of the company’s senior unsecured notes due 2021, 2023, 2024, 2025 and 2026, at September 30, 2019. 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. In October 2019, the Company’s corporate credit rating was upgraded to an investment grade credit level by all three credit rating agencies, resulting in all the referenced guarantees being automatically released pursuant to the applicable Indentures. Note 11. Condensed Consolidating Information (Continued) Condensed Consolidating Balance Sheets (in thousands) Combined Consolidating Total As of September 30, 2019 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ 1,070,215 $ 64,398 $ 11,394 $ - $ 1,146,007 Short-term investments 69,529 - - - 69,529 Accounts receivable, net 303,259 1,675,521 63,962 (1,055,796) 986,946 Inventories 725,792 960,506 88,871 (8,149) 1,767,020 Other current assets 29,754 17,464 4,548 (948) 50,818 Total current assets 2,198,549 2,717,889 168,775 (1,064,893) 4,020,320 Property, plant and equipment, net 966,715 1,902,414 162,602 - 3,031,731 Intangible assets, net - 249,598 - - 249,598 Goodwill - 427,103 113,810 - 540,913 Other assets, including investments in subs 2,723,786 61,910 6,420 (2,691,431) 100,685 Total assets $ 5,889,050 $ 5,358,914 $ 451,607 $ (3,756,324) $ 7,943,247 Accounts payable $ 177,308 $ 332,299 $ 99,162 $ (80,140) $ 528,629 Accrued expenses 228,600 316,684 16,694 (167,482) 394,496 Current maturities of long-term debt 843 517 103,551 (22,761) 82,150 Total current liabilities 406,751 649,500 219,407 (270,383) 1,005,275 Long-term debt 2,330,968 - 147,310 (123,035) 2,355,243 Other liabilities (905,310) 1,087,758 34,290 321,636 538,374 Total liabilities 1,832,409 1,737,258 401,007 (71,782) 3,898,892 Redeemable noncontrolling interests - - 143,614 - 143,614 Common stock 645 1,727,859 15,016 (1,742,875) 645 Treasury stock (1,469,078) - - - (1,469,078) Additional paid-in-capital 1,175,512 683,048 804,625 (1,487,673) 1,175,512 Retained earnings (deficit) 4,349,523 1,210,749 (756,755) (453,994) 4,349,523 Accumulated other comprehensive loss 39 - - - 39 Total Steel Dynamics, Inc. equity 4,056,641 3,621,656 62,886 (3,684,542) 4,056,641 Noncontrolling interests - - (155,900) - (155,900) Total equity 4,056,641 3,621,656 (93,014) (3,684,542) 3,900,741 Total liabilities and equity $ 5,889,050 $ 5,358,914 $ 451,607 $ (3,756,324) $ 7,943,247 Note 11. Condensed Consolidating Information (Continued) Combined Consolidating Total As of December 31, 2018 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ 809,763 $ 13,491 $ 4,966 $ - $ 828,220 Short-term investments 198,783 30,000 - - 228,783 Accounts receivable, net 340,439 1,635,168 26,655 (958,506) 1,043,756 Inventories 793,174 1,038,702 39,214 (11,922) 1,859,168 Other current assets 56,578 18,627 3,994 (6,469) 72,730 Total current assets 2,198,737 2,735,988 74,829 (976,897) 4,032,657 Property, plant and equipment, net 871,482 1,918,198 156,087 - 2,945,767 Intangible assets, net - 270,328 - - 270,328 Goodwill - 429,645 - - 429,645 Other assets, including investments in subs 2,862,556 5,593 5,557 (2,848,540) 25,166 Total assets $ 5,932,775 $ 5,359,752 $ 236,473 $ (3,825,437) $ 7,703,563 Accounts payable $ 209,156 $ 330,156 $ 74,353 $ (62,911) $ 550,754 Accrued expenses 296,528 295,668 11,171 (159,218) 444,149 Current maturities of long-term debt 793 1,355 51,079 (28,993) 24,234 Total current liabilities 506,477 627,179 136,603 (251,122) 1,019,137 Long-term debt 2,327,798 381 166,226 (141,916) 2,352,489 Other liabilities (836,571) 1,447,464 31,791 (197,976) 444,708 Total liabilities 1,997,704 2,075,024 334,620 (591,014) 3,816,334 Redeemable noncontrolling interests - - 111,240 - 111,240 Common stock 645 1,727,859 15,016 (1,742,875) 645 Treasury stock (1,184,243) - - - (1,184,243) Additional paid-in-capital 1,160,048 683,048 695,502 (1,378,550) 1,160,048 Retained earnings (deficit) 3,958,320 873,821 (760,823) (112,998) 3,958,320 Accumulated other comprehensive income 301 - - - 301 Total Steel Dynamics, Inc. equity 3,935,071 3,284,728 (50,305) (3,234,423) 3,935,071 Noncontrolling interests - - (159,082) - (159,082) Total equity 3,935,071 3,284,728 (209,387) (3,234,423) 3,775,989 Total liabilities and equity $ 5,932,775 $ 5,359,752 $ 236,473 $ (3,825,437) $ 7,703,563 Condensed Consolidating Statements of Operations (in thousands) For the three months ended, Combined Consolidating Total September 30, 2019 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 976,470 $ 2,710,767 $ 205,617 $ (1,366,009) $ 2,526,845 Costs of goods sold 814,622 2,502,257 188,967 (1,338,840) 2,167,006 Gross profit 161,848 208,510 16,650 (27,169) 359,839 Selling, general and administrative 55,613 74,433 7,827 (6,079) 131,794 Operating income 106,235 134,077 8,823 (21,090) 228,045 Interest expense, net of capitalized interest 18,716 11,536 3,490 (2,403) 31,339 Other income, net (5,394) (1,574) (196) 2,619 (4,545) Income before income taxes and equity in net income of subsidiaries 92,913 124,115 5,529 (21,306) 201,251 Income taxes 23,625 29,965 128 (5,075) 48,643 69,288 94,150 5,401 (16,231) 152,608 Equity in net income of subsidiaries 81,760 - - (81,760) - Net income attributable to noncontrolling interests - - (1,560) - (1,560) Net income attributable to Steel Dynamics, Inc. $ 151,048 $ 94,150 $ 3,841 $ (97,991) $ 151,048 Note 11. Condensed Consolidating Information (Continued) For the three months ended, Combined Consolidating Total September 30, 2018 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 1,304,801 $ 3,540,381 $ 144,145 $ (1,765,780) $ 3,223,547 Costs of goods sold 956,735 3,163,110 142,005 (1,724,384) 2,537,466 Gross profit 348,066 377,271 2,140 (41,396) 686,081 Selling, general and administrative 78,824 78,694 2,974 (5,983) 154,509 Operating income (loss) 269,242 298,577 (834) (35,413) 531,572 Interest expense, net of capitalized interest 18,559 12,489 3,134 (2,622) 31,560 Other income, net (7,121) (2,292) (306) 2,616 (7,103) Income (loss) before income taxes and equity in net income of subsidiaries 257,804 288,380 (3,662) (35,407) 507,115 Income taxes 45,599 71,466 420 (8,276) 109,209 212,205 216,914 (4,082) (27,131) 397,906 Equity in net income of subsidiaries 186,170 - - (186,170) - Net loss attributable to noncontrolling interests - - 469 - 469 Net income (loss) attributable to Steel Dynamics, Inc. $ 398,375 $ 216,914 $ (3,613) $ (213,301) $ 398,375 For the nine months ended, Combined Consolidating Total September 30, 2019 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 3,198,215 $ 8,837,385 $ 611,407 $ (4,532,212) $ 8,114,795 Costs of goods sold 2,628,849 8,141,120 568,914 (4,438,663) 6,900,220 Gross profit 569,366 696,265 42,493 (93,549) 1,214,575 Selling, general and administrative 185,647 221,592 19,891 (17,474) 409,656 Operating income 383,719 474,673 22,602 (76,075) 804,919 Interest expense, net of capitalized interest 56,818 35,107 10,327 (7,470) 94,782 Other income, net (17,752) (4,746) (753) 8,114 (15,137) Income before income taxes and equity in net income of subsidiaries 344,653 444,312 13,028 (76,719) 725,274 Income taxes 81,422 107,384 495 (18,208) 171,093 263,231 336,928 12,533 (58,511) 554,181 Equity in net income of subsidiaries 286,447 - - (286,447) - Net income attributable to noncontrolling interests - - (4,503) - (4,503) Net income attributable to Steel Dynamics, Inc. $ 549,678 $ 336,928 $ 8,030 $ (344,958) $ 549,678 For the nine months ended, Combined Consolidating Total September 30, 2018 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 3,635,571 $ 9,804,316 $ 417,450 $ (4,939,390) $ 8,917,947 Costs of goods sold 2,746,516 8,783,145 413,607 (4,826,900) 7,116,368 Gross profit 889,055 1,021,171 3,843 (112,490) 1,801,579 Selling, general and administrative 218,839 233,989 8,550 (16,655) 444,723 Operating income (loss) 670,216 787,182 (4,707) (95,835) 1,356,856 Interest expense, net of capitalized interest 56,568 36,793 9,489 (7,882) 94,968 Other income, net (18,299) (5,612) (565) 7,875 (16,601) Income (loss) before income taxes and equity in net income of subsidiaries 631,947 756,001 (13,631) (95,828) 1,278,489 Income taxes 127,083 187,794 530 (22,871) 292,536 504,864 568,207 (14,161) (72,957) 985,953 Equity in net income of subsidiaries 483,511 - - (483,511) - Net loss attributable to noncontrolling interests - - 2,422 - 2,422 Net income (loss) attributable to Steel Dynamics, Inc. $ 988,375 $ 568,207 $ (11,739) $ (556,468) $ 988,375 Note 11. Condensed Consolidating Information (Continued) Condensed Consolidating Statements of Cash Flows (in thousands) For the nine months ended, Combined Consolidating Total September 30, 2019 Parent Guarantors Non-Guarantors Adjustments Consolidated Net cash provided by operating activities $ 368,148 $ 624,223 $ 18,893 $ (24,036) $ 987,228 Net cash used in investing activities (116,470) (78,193) (7,740) (25,114) (227,517) Net cash provided by (used in) financing activities 8,774 (495,488) (5,030) 49,150 (442,594) Increase in cash, cash equivalents and restricted cash 260,452 50,542 6,123 - 317,117 Cash, cash equivalents, and restricted cash at beginning of period 809,763 14,368 10,292 - 834,423 Cash, cash equivalents, and restricted cash at end of period $ 1,070,215 $ 64,910 $ 16,415 $ - $ 1,151,540 For the nine months ended, Combined Consolidating Total September 30, 2018 Parent Guarantors Non-Guarantors Adjustments Consolidated Net cash provided by operating activities $ 401,680 $ 505,175 $ 2,101 $ 15,452 $ 924,408 Net cash used in investing activities (617,158) (106,230) (4,920) 4,295 (724,013) Net cash provided by (used in) financing activities 77,165 (405,499) 2,740 (19,747) (345,341) Decrease in cash, cash equivalents and (138,313) (6,554) (79) - (144,946) restricted cash Cash, cash equivalents, and restricted cash 1,002,230 20,748 12,107 - 1,035,085 at beginning of period Cash, cash equivalents, and restricted cash at end of period $ 863,917 $ 14,194 $ 12,028 $ - $ 890,139 |
Description of the Business a_2
Description of the Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Description of the Business and Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation . |
Use of Estimates | Use of Estimates. In the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the interim period results. These consolidated 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, 2018. |
Cash and Equivalents And Restricted Cash | Cash and Equivalents, and Restricted Cash Cash and equivalents include all highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash is primarily funds held in escrow as required by various insurance and government organizations. The balance of cash, cash equivalents and restricted cash in the consolidated statements of cash flows includes restricted cash of $5.5 million, $6.2 million, $6.2 million, $5.8 million, $6.0 million, and $6.4 million at September 30, 2019, June 30, 2019, December 31, 2018, September 30, 2018, June 30, 2018, and December 31, 2017, respectively, which are recorded in Other Assets (noncurrent) in the company’s consolidated balance sheets. |
Goodwill | Goodwill The company’s goodwill consisted of the following at September 30, 2019, and December 31, 2018, (in thousands): September 30, December 31, 2019 2018 Steel Operations Segment $ 359,283 $ 245,473 Metals Recycling Operations Segment 179,705 182,247 Steel Fabrication Operations Segment 1,925 1,925 $ 540,913 $ 429,645 The company acquired a 75% equity interest in United Steel Supply on March 1, 2019 (refer to Note 2 Acquisition – United Steel Supply, LLC |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, and it’s subsequent corresponding updates: which requires an entity to use a forward-looking expected loss model versus the current incurred loss model for most financial instruments, including accounts receivable. This new guidance is effective for annual and interim periods beginning after December 15, 2019, but can be early adopted. The company anticipates adopting ASU 2016-13 on January 1, 2020. The company is working through its adoption plan to evaluate policies, processes and systems to determine the impact ASU 2016-13 will have in its consolidated financial statements and related disclosure . |
Description of the Business a_3
Description of the Business and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Description of the Business and Significant Accounting Policies | |
Schedule of Goodwill | The company’s goodwill consisted of the following at September 30, 2019, and December 31, 2018, (in thousands): September 30, December 31, 2019 2018 Steel Operations Segment $ 359,283 $ 245,473 Metals Recycling Operations Segment 179,705 182,247 Steel Fabrication Operations Segment 1,925 1,925 $ 540,913 $ 429,645 |
Acquisition - United Steel Su_2
Acquisition - United Steel Supply (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Acquisition - United Steel Supply | |
Schedule of Assets Acquired and Liabilities Assumed | The aggregate purchase price was preliminarily allocated to the opening balance sheet of USS as of March 1, 2019, and updated in September 2019 upon the final working capital adjustment, as presented below. The following allocation of the purchase price (in thousands) is preliminary based on the information available to estimate the fair value of assets acquired and liabilities assumed. The accounting for the acquisition has not yet been completed because the company has not finalized the valuations of identifiable intangible assets, if any, and thus goodwill. The company anticipates finalizing the valuation of identifiable intangible assets by December 31, 2019. September 30, 2019 Allocation Adjustments Initial Allocation Current assets, net of cash acquired $ 86,236 $ (7,784) $ 94,020 Property, plant & equipment 7,388 - 7,388 Intangible assets and goodwill 113,810 11,892 101,918 Total assets acquired 207,434 4,108 203,326 Liabilities assumed 77,954 (3,270) 81,224 Redeemable noncontrolling interest 32,374 3,684 28,690 Net cash consideration $ 97,106 $ 3,694 $ 93,412 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Schedule of operating lease right-of-use assets and lease obligations | Operating lease right-of-use assets and lease obligations included in the consolidated balance sheet at September 30, 2019, are as follows (in thousands): Right of use assets under operating leases: Other assets - noncurrent $ 74,843 Lease obligations under operating leases: Accrued liabilities $ 17,202 Other liabilities - noncurrent 57,946 $ 75,148 |
Schedule of future operating lease liabilities | 2019 - for the remaining three months $ 19,954 2020 17,120 2021 13,719 2022 10,636 2023 7,506 Thereafter 17,095 Total undiscounted cash flows 86,030 Less imputed interest (10,882) Lease obligations under operating leases $ 75,148 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share | |
Reconciliation of Basic and Diluted Earnings Per Share | Three Months Ended September 30, 2019 2018 Weighted Weighted Average Average Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 151,048 217,873 $ 0.69 $ 398,375 234,208 $ 1.70 Dilutive common share equivalents - 1,236 - 1,441 Diluted earnings per share $ 151,048 219,109 $ 0.69 $ 398,375 235,649 $ 1.69 Note 4. Earnings Per Share (Continued) Nine Months Ended September 30, 2019 2018 Weighted Weighted Average Average Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 549,678 221,145 $ 2.49 $ 988,375 235,483 $ 4.20 Dilutive common share equivalents - 1,052 - 1,289 Diluted earnings per share $ 549,678 222,197 $ 2.47 $ 988,375 236,772 $ 4.17 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 2018 Raw materials $ 758,677 $ 810,766 Supplies 492,604 436,828 Work in progress 156,443 195,224 Finished goods 359,296 416,350 Total inventories $ 1,767,020 $ 1,859,168 |
Changes in Equity (Tables)
Changes in Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Changes in Equity | |
Schedule of stockholders' equity | The following tables provide 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 noncontrolling interests (in thousands) for each quarterly period in the nine months ended September 30, 2019 and 2018: Stockholders of Steel Dynamics, Inc. Accumulated Additional Other Redeemable Common Treasury Paid-In Retained Comprehensive Noncontrolling Total Noncontrolling Stock Stock Capital Earnings Loss Interests Equity Interests Balances at December 31, 2018 $ 645 $ (1,184,243) $ 1,160,048 $ 3,958,320 $ 301 $ (159,082) $ 3,775,989 $ 111,240 Dividends declared - - - (53,504) - - (53,504) - Noncontrolling investors of USS - - - - - - - 28,690 Share repurchases - (84,308) - - - - (84,308) - Equity-based compensation - 6,714 91 (110) - - 6,695 - Net income - - - 204,328 - 499 204,827 - Other comprehensive loss, net of tax - - - - (171) - (171) - Balances at March 31, 2019 645 (1,261,837) 1,160,139 4,109,034 130 (158,583) 3,849,528 139,930 Dividends declared - - - (52,751) - - (52,751) - Share repurchases - (93,136) - - - - (93,136) - Equity-based compensation - 816 7,366 (166) - - 8,016 - Net income - - - 194,302 - 2,444 196,746 - Other comprehensive loss, net of tax - - - - (52) - (52) - Balances at June 30, 2019 645 (1,354,157) 1,167,505 4,250,419 78 (156,139) 3,908,351 139,930 Dividends declared - - - (51,778) - - (51,778) - Noncontrolling investors of USS - - - - - (1,321) (1,321) 3,684 Share repurchases - (114,950) - - - - (114,950) - Equity-based compensation - 29 8,007 (166) - - 7,870 - Net income - - - 151,048 - 1,560 152,608 - Other comprehensive loss, net of tax - - - - (39) - (39) - Balances at September 30, 2019 $ 645 $ (1,469,078) $ 1,175,512 $ 4,349,523 $ 39 $ (155,900) $ 3,900,741 $ 143,614 Note 6. Changes in Equity (Continued) Stockholders of Steel Dynamics, Inc. Accumulated Additional Other Redeemable Common Treasury Paid-In Retained Comprehensive Noncontrolling Total Noncontrolling Stock Stock Capital Earnings Loss Interests Equity Interests Balances at December 31, 2017 $ 644 $ (665,297) $ 1,141,534 $ 2,874,693 $ - $ (156,506) $ 3,195,068 $ 111,240 Dividends declared - - - (44,269) - - (44,269) - Share repurchases - (69,269) - - - - (69,269) - Equity-based compensation - 3,866 1,337 (71) - - 5,132 - Comprehensive and net income (loss) - - - 227,551 - (2,076) 225,475 - Balances at March 31, 2018 644 (730,700) 1,142,871 3,057,904 - (158,582) 3,312,137 111,240 Dividends declared - - - (44,080) - - (44,080) - Noncontrolling investors, net - - - - - (3) (3) - Share repurchases - (49,145) - - - - (49,145) - Equity-based compensation - 757 6,496 (110) - - 7,143 - Net income - - - 362,449 - 123 362,572 - Other comprehensive loss, net of tax - - - - (105) - (105) - Balances at June 30, 2018 644 (779,088) 1,149,367 3,376,163 (105) (158,462) 3,588,519 111,240 Dividends declared - - - (43,767) - - (43,767) - Noncontrolling investors, net - - - - - - - - Share repurchases - (74,965) - - - - (74,965) - Equity-based compensation - 1 7,189 (109) - - 7,081 - Net income - - - 398,375 - (469) 397,906 - Other comprehensive loss, net of tax - - - - 63 - 63 - Balances at September 30, 2018 $ 644 $ (854,052) $ 1,156,556 $ 3,730,662 $ (42) $ (158,931) $ 3,874,837 $ 111,240 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Financial Instruments | |
Schedule of Notional Amounts of Outstanding Derivative Positions | Commodity Futures Long/Short Metric Tons Aluminum Long 575 Aluminum Short 4,100 Copper Long 10,036 Copper Short 21,704 |
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 consolidated balance sheets as of September 30, 2019, and December 31, 2018, and gains and losses related to derivatives included in the company’s statement of income for the three and nine-month periods ended September 30, 2019 and 2018 (in thousands): Asset Derivatives Liability Derivatives Balance sheet Fair Value Fair Value location September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Derivative instruments designated as hedges Commodity futures Other current assets $ 1,063 $ 2,999 $ 805 $ 1,837 Derivative instruments not designated as hedges Commodity futures Other current assets 313 1,559 3,100 2,053 Total derivative instruments $ 1,376 $ 4,558 $ 3,905 $ 3,890 The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements totaled $4.3 million at September 30, 2019, and $4.9 million at December 31, 2018, and are reflected in other current assets in the consolidated balance sheets. Amount of gain (loss) Amount of gain (loss) recognized in income Location of gain recognized in income Location of gain on derivatives for the (loss) recognized on derivatives for the (loss) recognized three months ended Hedged items in in income on three months ended in income on September 30, fair value hedge related hedged September 30, derivatives 2019 2018 relationships items 2019 2018 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ 302 $ (8,943) Firm commitments Costs of goods sold $ (519) $ 5,111 Inventory Costs of goods sold (182) 1,753 Derivatives not designated $ (701) $ 6,864 as hedging instruments Commodity futures Costs of goods sold $ 4,536 $ 13,803 Amount of gain (loss) Amount of gain (loss) recognized in income Location of gain recognized in income Location of gain on derivatives for the (loss) recognized on derivatives for the (loss) recognized three months ended Hedged items in in income on three months ended in income on September 30, fair value hedge related hedged September 30, derivatives 2019 2018 relationships items 2019 2018 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ (560) $ 1,113 Firm commitments Costs of goods sold $ (603) $ 1,718 Inventory Costs of goods sold 245 (1,659) Derivatives not designated $ (358) $ 59 as hedging instruments Commodity futures Costs of goods sold $ 5,946 $ 19,523 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019, and December 31, 2018 (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, 2019 Short-term investments $ 69,529 $ - $ 69,529 $ - Commodity futures – financial assets 1,376 - 1,376 - Commodity futures – financial liabilities 3,905 - 3,905 - December 31, 2018 Short-term investments $ 228,783 $ - $ 228,783 $ - Commodity futures – financial assets 4,558 - 4,558 - Commodity futures – financial liabilities 3,890 - 3,890 - |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Information | |
Schedule of operating segment results | The company’s segment results, including disaggregated revenue by segment to external, external non-United States, and other segment customers, are as follows (in thousands): Metals Steel For the three months ended Steel Recycling Fabrication September 30, 2019 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 1,838,682 $ 230,086 $ 245,914 $ 77,330 $ - $ 2,392,012 External Non-U.S. 83,845 50,823 165 - - 134,833 Other segments 85,678 293,999 637 100 (380,414) - 2,008,205 574,908 246,716 77,430 (380,414) 2,526,845 Operating income (loss) 234,683 (101) 35,280 (42,441) (1) 624 (2) 228,045 Income (loss) before income taxes 217,699 (1,159) 34,080 (49,780) 411 201,251 Depreciation and amortization 63,170 11,769 2,941 1,590 - 79,470 Capital expenditures 40,818 11,498 3,759 98,056 - 154,131 As of September 30, 2019 Assets $ 5,119,419 $ 972,493 $ 414,835 $ 1,513,798 (3) $ (77,298) (4) $ 7,943,247 Footnotes related to the three months ended September 30, 2019, segment results (in millions): (1) Corporate SG&A $ (15.4) (2) Gross profit increase from intra-company sales $ 0.4 Company-wide equity-based compensation (8.7) Profit sharing (17.0) Other, net (1.3) $ (42.4) (3) Cash and equivalents $ 1,072.5 (4) Elimination of intra-company receivables $ (61.2) Short-term investments 69.5 Elimination of intra-company debt (8.7) Accounts receivable 7.8 Other (7.4) Inventories 36.5 $ (77.3) Property, plant and equipment, net 271.8 Intra-company debt 8.7 Other 47.0 $ 1,513.8 Note 10. Segment Information (Continued) Metals Steel For the three months ended Steel Recycling Fabrication September 30, 2018 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 2,400,329 $ 323,611 $ 250,625 $ 110,659 $ - $ 3,085,224 External Non-U.S. 74,715 63,608 - - - 138,323 Other segments 111,582 412,795 120 1,294 (525,791) - 2,586,626 800,014 250,745 111,953 (525,791) 3,223,547 Operating income (loss) 573,848 14,674 13,104 (67,113) (1) (2,941) 531,572 Income (loss) before income taxes 557,870 13,488 11,801 (73,109) (2,935) (2) 507,115 Depreciation and amortization 64,088 11,491 2,941 2,863 - 81,383 Capital expenditures 57,074 11,603 1,395 596 - 70,668 Footnotes related to the three months ended September 30, 2018, segment results (in millions): (1) Corporate SG&A $ (13.8) (2) Gross profit decrease from intra-company sales $ (2.9) Company-wide equity-based compensation (7.8) Profit sharing (43.4) Other, net (2.1) $ (67.1) Metals Steel For the nine months ended Steel Recycling Fabrication September 30, 2019 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 5,918,189 $ 778,637 $ 714,782 $ 290,219 $ - $ 7,701,827 External Non-U.S. 235,259 176,508 1,201 - - 412,968 Other segments 243,107 1,013,574 826 469 (1,257,976) - 6,396,555 1,968,719 716,809 290,688 (1,257,976) 8,114,795 Operating income (loss) 835,172 24,480 86,567 (148,514) (1) 7,214 804,919 Income (loss) before income taxes 784,873 20,846 82,897 (169,914) 6,572 (2) 725,274 Depreciation and amortization 188,832 34,733 8,882 8,108 - 240,555 Capital expenditures 128,069 30,313 8,771 126,534 - 293,687 Footnotes related to the nine months ended September 30, 2019, segment results (in millions): (1) Corporate SG&A $ (56.0) (2) Gross profit increase from intra-company sales $ 6.6 Company-wide equity-based compensation (26.1) Profit sharing (61.3) Other, net (5.1) $ (148.5) Note 10. Segment Information (Continued) Metals Steel For the nine months ended Steel Recycling Fabrication September 30, 2018 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 6,360,177 $ 1,001,267 $ 669,500 $ 326,086 $ - $ 8,357,030 External Non-U.S. 362,083 198,778 56 - - 560,917 Other segments 281,828 1,236,830 788 1,565 (1,521,011) - 7,004,088 2,436,875 670,344 327,651 (1,521,011) 8,917,947 Operating income (loss) 1,441,904 62,027 47,039 (186,137) (1) (7,977) 1,356,856 Income (loss) before income taxes 1,390,074 57,458 42,898 (203,970) (7,971) (2) 1,278,489 Depreciation and amortization 184,998 34,602 8,785 8,253 - 236,638 Capital expenditures 137,484 27,496 5,526 5,971 - 176,477 Footnotes related to the nine months ended September 30, 2018, segment results (in millions): (1) Corporate SG&A $ (44.0) (2) Gross profit decrease from intra-company sales $ (8.0) Company-wide equity-based compensation (24.8) Profit sharing (109.6) Other, net (7.7) $ (186.1) |
Condensed Consolidating Infor_2
Condensed Consolidating Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Consolidating Information Disclosure Abstract | |
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets (in thousands) Combined Consolidating Total As of September 30, 2019 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ 1,070,215 $ 64,398 $ 11,394 $ - $ 1,146,007 Short-term investments 69,529 - - - 69,529 Accounts receivable, net 303,259 1,675,521 63,962 (1,055,796) 986,946 Inventories 725,792 960,506 88,871 (8,149) 1,767,020 Other current assets 29,754 17,464 4,548 (948) 50,818 Total current assets 2,198,549 2,717,889 168,775 (1,064,893) 4,020,320 Property, plant and equipment, net 966,715 1,902,414 162,602 - 3,031,731 Intangible assets, net - 249,598 - - 249,598 Goodwill - 427,103 113,810 - 540,913 Other assets, including investments in subs 2,723,786 61,910 6,420 (2,691,431) 100,685 Total assets $ 5,889,050 $ 5,358,914 $ 451,607 $ (3,756,324) $ 7,943,247 Accounts payable $ 177,308 $ 332,299 $ 99,162 $ (80,140) $ 528,629 Accrued expenses 228,600 316,684 16,694 (167,482) 394,496 Current maturities of long-term debt 843 517 103,551 (22,761) 82,150 Total current liabilities 406,751 649,500 219,407 (270,383) 1,005,275 Long-term debt 2,330,968 - 147,310 (123,035) 2,355,243 Other liabilities (905,310) 1,087,758 34,290 321,636 538,374 Total liabilities 1,832,409 1,737,258 401,007 (71,782) 3,898,892 Redeemable noncontrolling interests - - 143,614 - 143,614 Common stock 645 1,727,859 15,016 (1,742,875) 645 Treasury stock (1,469,078) - - - (1,469,078) Additional paid-in-capital 1,175,512 683,048 804,625 (1,487,673) 1,175,512 Retained earnings (deficit) 4,349,523 1,210,749 (756,755) (453,994) 4,349,523 Accumulated other comprehensive loss 39 - - - 39 Total Steel Dynamics, Inc. equity 4,056,641 3,621,656 62,886 (3,684,542) 4,056,641 Noncontrolling interests - - (155,900) - (155,900) Total equity 4,056,641 3,621,656 (93,014) (3,684,542) 3,900,741 Total liabilities and equity $ 5,889,050 $ 5,358,914 $ 451,607 $ (3,756,324) $ 7,943,247 Note 11. Condensed Consolidating Information (Continued) Combined Consolidating Total As of December 31, 2018 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ 809,763 $ 13,491 $ 4,966 $ - $ 828,220 Short-term investments 198,783 30,000 - - 228,783 Accounts receivable, net 340,439 1,635,168 26,655 (958,506) 1,043,756 Inventories 793,174 1,038,702 39,214 (11,922) 1,859,168 Other current assets 56,578 18,627 3,994 (6,469) 72,730 Total current assets 2,198,737 2,735,988 74,829 (976,897) 4,032,657 Property, plant and equipment, net 871,482 1,918,198 156,087 - 2,945,767 Intangible assets, net - 270,328 - - 270,328 Goodwill - 429,645 - - 429,645 Other assets, including investments in subs 2,862,556 5,593 5,557 (2,848,540) 25,166 Total assets $ 5,932,775 $ 5,359,752 $ 236,473 $ (3,825,437) $ 7,703,563 Accounts payable $ 209,156 $ 330,156 $ 74,353 $ (62,911) $ 550,754 Accrued expenses 296,528 295,668 11,171 (159,218) 444,149 Current maturities of long-term debt 793 1,355 51,079 (28,993) 24,234 Total current liabilities 506,477 627,179 136,603 (251,122) 1,019,137 Long-term debt 2,327,798 381 166,226 (141,916) 2,352,489 Other liabilities (836,571) 1,447,464 31,791 (197,976) 444,708 Total liabilities 1,997,704 2,075,024 334,620 (591,014) 3,816,334 Redeemable noncontrolling interests - - 111,240 - 111,240 Common stock 645 1,727,859 15,016 (1,742,875) 645 Treasury stock (1,184,243) - - - (1,184,243) Additional paid-in-capital 1,160,048 683,048 695,502 (1,378,550) 1,160,048 Retained earnings (deficit) 3,958,320 873,821 (760,823) (112,998) 3,958,320 Accumulated other comprehensive income 301 - - - 301 Total Steel Dynamics, Inc. equity 3,935,071 3,284,728 (50,305) (3,234,423) 3,935,071 Noncontrolling interests - - (159,082) - (159,082) Total equity 3,935,071 3,284,728 (209,387) (3,234,423) 3,775,989 Total liabilities and equity $ 5,932,775 $ 5,359,752 $ 236,473 $ (3,825,437) $ 7,703,563 |
Schedule of Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations (in thousands) For the three months ended, Combined Consolidating Total September 30, 2019 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 976,470 $ 2,710,767 $ 205,617 $ (1,366,009) $ 2,526,845 Costs of goods sold 814,622 2,502,257 188,967 (1,338,840) 2,167,006 Gross profit 161,848 208,510 16,650 (27,169) 359,839 Selling, general and administrative 55,613 74,433 7,827 (6,079) 131,794 Operating income 106,235 134,077 8,823 (21,090) 228,045 Interest expense, net of capitalized interest 18,716 11,536 3,490 (2,403) 31,339 Other income, net (5,394) (1,574) (196) 2,619 (4,545) Income before income taxes and equity in net income of subsidiaries 92,913 124,115 5,529 (21,306) 201,251 Income taxes 23,625 29,965 128 (5,075) 48,643 69,288 94,150 5,401 (16,231) 152,608 Equity in net income of subsidiaries 81,760 - - (81,760) - Net income attributable to noncontrolling interests - - (1,560) - (1,560) Net income attributable to Steel Dynamics, Inc. $ 151,048 $ 94,150 $ 3,841 $ (97,991) $ 151,048 Note 11. Condensed Consolidating Information (Continued) For the three months ended, Combined Consolidating Total September 30, 2018 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 1,304,801 $ 3,540,381 $ 144,145 $ (1,765,780) $ 3,223,547 Costs of goods sold 956,735 3,163,110 142,005 (1,724,384) 2,537,466 Gross profit 348,066 377,271 2,140 (41,396) 686,081 Selling, general and administrative 78,824 78,694 2,974 (5,983) 154,509 Operating income (loss) 269,242 298,577 (834) (35,413) 531,572 Interest expense, net of capitalized interest 18,559 12,489 3,134 (2,622) 31,560 Other income, net (7,121) (2,292) (306) 2,616 (7,103) Income (loss) before income taxes and equity in net income of subsidiaries 257,804 288,380 (3,662) (35,407) 507,115 Income taxes 45,599 71,466 420 (8,276) 109,209 212,205 216,914 (4,082) (27,131) 397,906 Equity in net income of subsidiaries 186,170 - - (186,170) - Net loss attributable to noncontrolling interests - - 469 - 469 Net income (loss) attributable to Steel Dynamics, Inc. $ 398,375 $ 216,914 $ (3,613) $ (213,301) $ 398,375 For the nine months ended, Combined Consolidating Total September 30, 2019 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 3,198,215 $ 8,837,385 $ 611,407 $ (4,532,212) $ 8,114,795 Costs of goods sold 2,628,849 8,141,120 568,914 (4,438,663) 6,900,220 Gross profit 569,366 696,265 42,493 (93,549) 1,214,575 Selling, general and administrative 185,647 221,592 19,891 (17,474) 409,656 Operating income 383,719 474,673 22,602 (76,075) 804,919 Interest expense, net of capitalized interest 56,818 35,107 10,327 (7,470) 94,782 Other income, net (17,752) (4,746) (753) 8,114 (15,137) Income before income taxes and equity in net income of subsidiaries 344,653 444,312 13,028 (76,719) 725,274 Income taxes 81,422 107,384 495 (18,208) 171,093 263,231 336,928 12,533 (58,511) 554,181 Equity in net income of subsidiaries 286,447 - - (286,447) - Net income attributable to noncontrolling interests - - (4,503) - (4,503) Net income attributable to Steel Dynamics, Inc. $ 549,678 $ 336,928 $ 8,030 $ (344,958) $ 549,678 For the nine months ended, Combined Consolidating Total September 30, 2018 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 3,635,571 $ 9,804,316 $ 417,450 $ (4,939,390) $ 8,917,947 Costs of goods sold 2,746,516 8,783,145 413,607 (4,826,900) 7,116,368 Gross profit 889,055 1,021,171 3,843 (112,490) 1,801,579 Selling, general and administrative 218,839 233,989 8,550 (16,655) 444,723 Operating income (loss) 670,216 787,182 (4,707) (95,835) 1,356,856 Interest expense, net of capitalized interest 56,568 36,793 9,489 (7,882) 94,968 Other income, net (18,299) (5,612) (565) 7,875 (16,601) Income (loss) before income taxes and equity in net income of subsidiaries 631,947 756,001 (13,631) (95,828) 1,278,489 Income taxes 127,083 187,794 530 (22,871) 292,536 504,864 568,207 (14,161) (72,957) 985,953 Equity in net income of subsidiaries 483,511 - - (483,511) - Net loss attributable to noncontrolling interests - - 2,422 - 2,422 Net income (loss) attributable to Steel Dynamics, Inc. $ 988,375 $ 568,207 $ (11,739) $ (556,468) $ 988,375 |
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, 2019 Parent Guarantors Non-Guarantors Adjustments Consolidated Net cash provided by operating activities $ 368,148 $ 624,223 $ 18,893 $ (24,036) $ 987,228 Net cash used in investing activities (116,470) (78,193) (7,740) (25,114) (227,517) Net cash provided by (used in) financing activities 8,774 (495,488) (5,030) 49,150 (442,594) Increase in cash, cash equivalents and restricted cash 260,452 50,542 6,123 - 317,117 Cash, cash equivalents, and restricted cash at beginning of period 809,763 14,368 10,292 - 834,423 Cash, cash equivalents, and restricted cash at end of period $ 1,070,215 $ 64,910 $ 16,415 $ - $ 1,151,540 For the nine months ended, Combined Consolidating Total September 30, 2018 Parent Guarantors Non-Guarantors Adjustments Consolidated Net cash provided by operating activities $ 401,680 $ 505,175 $ 2,101 $ 15,452 $ 924,408 Net cash used in investing activities (617,158) (106,230) (4,920) 4,295 (724,013) Net cash provided by (used in) financing activities 77,165 (405,499) 2,740 (19,747) (345,341) Decrease in cash, cash equivalents and (138,313) (6,554) (79) - (144,946) restricted cash Cash, cash equivalents, and restricted cash 1,002,230 20,748 12,107 - 1,035,085 at beginning of period Cash, cash equivalents, and restricted cash at end of period $ 863,917 $ 14,194 $ 12,028 $ - $ 890,139 |
Description of the Business a_4
Description of the Business and Significant Accounting Policies (Segments) (Details) - segment | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Mar. 01, 2019 | |
Segment Reporting Information | |||||
Number of reporting segments | 3 | ||||
Steel Operations | |||||
Segment Reporting Information | |||||
Percentage of external net sales | 76.00% | 77.00% | 76.00% | 75.00% | |
Metals Recycling Operations | |||||
Segment Reporting Information | |||||
Percentage of external net sales | 11.00% | 12.00% | 12.00% | 14.00% | |
Steel Fabrication Operations | |||||
Segment Reporting Information | |||||
Percentage of external net sales | 10.00% | 8.00% | 9.00% | 8.00% | |
United Steel Supply, LLC | |||||
Segment Reporting Information | |||||
Acquisition of interest (as a percent) | 75.00% |
Description of the Business a_5
Description of the Business and Significant Accounting Policies (Cash and Equivalents And Restricted Cash) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Abstract] | ||||||
Restricted Cash and Cash Equivalents | $ 5.5 | $ 6.2 | $ 6.2 | $ 5.8 | $ 6 | $ 6.4 |
Restricted Cash and Cash Equivalents, Asset, Statement of Financial Position [Extensible List] | Other Assets, Noncurrent | Other Assets, Noncurrent | Other Assets, Noncurrent | Other Assets, Noncurrent | Other Assets, Noncurrent | Other Assets, Noncurrent |
Description of the Business a_6
Description of the Business and Significant Accounting Policies (Goodwill) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Mar. 01, 2019 | Dec. 31, 2018 | |
Goodwill | |||
Goodwill | $ 540,913 | $ 429,645 | |
OmniSource | |||
Goodwill | |||
Goodwill decrease due to tax benefit related to the normal amortization of the component | 2,500 | ||
Steel Operations | |||
Goodwill | |||
Goodwill | 359,283 | 245,473 | |
Steel Operations | United Steel Supply, LLC | |||
Goodwill | |||
Goodwill | $ 113,800 | ||
Metals Recycling Operations | |||
Goodwill | |||
Goodwill | 179,705 | 182,247 | |
Steel Fabrication Operations | |||
Goodwill | |||
Goodwill | $ 1,925 | $ 1,925 |
Acquisition - United Steel Su_3
Acquisition - United Steel Supply (Narrative) (Details) - USD ($) $ in Thousands | Mar. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Acquisition | ||||||
Purchase price paid in cash | $ 3,694 | $ 37,589 | $ 97,106 | $ 433,998 | ||
United Steel Supply, LLC | ||||||
Acquisition | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 75.00% | |||||
Purchase price paid in cash | $ 93,400 | |||||
Business Acquisition, Percentage of Voting Interests Available to be Acquired | 25.00% | |||||
Cash consideration | $ 93,412 | |||||
Customary working capital transaction purchase price adjustment | $ 3,700 |
Acquisition - United Steel Su_4
Acquisition - United Steel Supply (Schedule of Assets Acquired and Liabilities Assumed) (Details) - United Steel Supply, LLC - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 01, 2019 |
Acquisition | ||
Current assets, net of cash acquired | $ 94,020 | |
Property, plant & equipment | 7,388 | |
Intangible assets and goodwill | 101,918 | |
Total assets acquired | 203,326 | |
Liabilities assumed | 81,224 | |
Redeemable noncontrolling interest | 28,690 | |
Net cash consideration | $ 93,412 | |
Scenario Previously Reported [Member] | ||
Acquisition | ||
Current assets, net of cash acquired | $ 86,236 | |
Property, plant & equipment | 7,388 | |
Intangible assets and goodwill | 113,810 | |
Total assets acquired | 207,434 | |
Liabilities assumed | 77,954 | |
Redeemable noncontrolling interest | 32,374 | |
Net cash consideration | 97,106 | |
Restatement Adjustment [Member] | ||
Acquisition | ||
Current assets, net of cash acquired | (7,784) | |
Intangible assets and goodwill | 11,892 | |
Total assets acquired | 4,108 | |
Liabilities assumed | (3,270) | |
Redeemable noncontrolling interest | 3,684 | |
Net cash consideration | $ 3,694 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | |
Right of use asset | $ 74,843 | $ 74,843 | |
Lease liability | $ 75,148 | $ 75,148 | |
Option to extend operating lease | true | ||
Option to terminate operating lease | true | ||
Weighted average remaining lease term | 6 years | 6 years | |
Weighted average discount rate | 4.00% | 4.00% | |
Operating lease expenses | $ 5,200 | $ 15,000 | |
Short term lease expenses | 5,000 | 14,800 | |
Cash paid related to operating lease obligations | 5,200 | 15,100 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 1,400 | $ 11,300 | |
Accounting Standards Update 2016-02 [Member] | Restatement Adjustment [Member] | |||
Right of use asset | $ 76,300 | ||
Lease liability | $ 76,300 |
Leases (Schedule of Operating l
Leases (Schedule of Operating lease right-of-use assets and lease obligations) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases | |
Right of use asset | $ 74,843 |
Right of use asset included in balance sheet | us-gaap:OtherAssetsNoncurrent |
Current lease liability | $ 17,202 |
Current lease liability included in balance sheet | us-gaap:AccruedLiabilitiesCurrent |
Non current lease liability | $ 57,946 |
Non current lease liability included in balance sheet | us-gaap:OtherLiabilitiesNoncurrent |
Lease liability | $ 75,148 |
Leases (Future operating lease
Leases (Future operating lease liabilities) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Future operating lease liabilities | |
2019 - for the remaining three months | $ 19,954 |
2020 | 17,120 |
2021 | 13,719 |
2022 | 10,636 |
2023 | 7,506 |
Thereafter | 17,095 |
Total undiscounted cash flows | 86,030 |
Less imputed interest | (10,882) |
Lease obligations under operating leases | $ 75,148 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share | ||||
Antidilutive common share equivalents excluded from computation of earnings per share amount (in shares) | 0 | 0 | 0 | 0 |
Net Income (Numerator) | ||||
Basic earnings per share (in dollars) | $ 151,048 | $ 398,375 | $ 549,678 | $ 988,375 |
Diluted earnings per share (in dollars) | $ 151,048 | $ 398,375 | $ 549,678 | $ 988,375 |
Weighted Average Shares (Denominator) | ||||
Basic earnings per share (in shares) | 217,873,000 | 234,208,000 | 221,145,000 | 235,483,000 |
Dilutive common share equivalents (in shares) | 1,236,000 | 1,441,000 | 1,052,000 | 1,289,000 |
Diluted earnings per share (in shares) | 219,109,000 | 235,649,000 | 222,197,000 | 236,772,000 |
Per Share Amount | ||||
Basic (in dollars per share) | $ 0.69 | $ 1.70 | $ 2.49 | $ 4.20 |
Diluted (in dollars per share) | $ 0.69 | $ 1.69 | $ 2.47 | $ 4.17 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventories | ||
Raw materials | $ 758,677 | $ 810,766 |
Supplies | 492,604 | 436,828 |
Work in progress | 156,443 | 195,224 |
Finished goods | 359,296 | 416,350 |
Total inventories | $ 1,767,020 | $ 1,859,168 |
Changes in Equity (Rollforward)
Changes in Equity (Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Balances | $ 3,908,351 | $ 3,849,528 | $ 3,775,989 | $ 3,588,519 | $ 3,312,137 | $ 3,195,068 | $ 3,775,989 | $ 3,195,068 |
Dividends declared | (51,778) | (52,751) | (53,504) | (43,767) | (44,080) | (44,269) | ||
Noncontrolling investors, net | (1,321) | (3) | ||||||
Share repurchases | (114,950) | (93,136) | (84,308) | (74,965) | (49,145) | (69,269) | ||
Equity-based compensation | 7,870 | 8,016 | 6,695 | 7,081 | 7,143 | 5,132 | ||
Net income | 152,608 | 196,746 | 204,827 | 397,906 | 362,572 | 554,181 | 985,953 | |
Other comprehensive loss, net of tax | (39) | (52) | (171) | 63 | (105) | (262) | (42) | |
Comprehensive and net income (loss) | 152,569 | 397,969 | 225,475 | 553,919 | 985,911 | |||
Balances | 3,900,741 | 3,908,351 | 3,849,528 | 3,874,837 | 3,588,519 | 3,312,137 | 3,900,741 | 3,874,837 |
Common Stock | ||||||||
Balances | 645 | 645 | 645 | 644 | 644 | 644 | 645 | 644 |
Balances | 645 | 645 | 645 | 644 | 644 | 644 | 645 | 644 |
Treasury Stock | ||||||||
Balances | (1,354,157) | (1,261,837) | (1,184,243) | (779,088) | (730,700) | (665,297) | (1,184,243) | (665,297) |
Share repurchases | (114,950) | (93,136) | (84,308) | (74,965) | (49,145) | (69,269) | ||
Equity-based compensation | 29 | 816 | 6,714 | 1 | 757 | 3,866 | ||
Balances | (1,469,078) | (1,354,157) | (1,261,837) | (854,052) | (779,088) | (730,700) | (1,469,078) | (854,052) |
Additional Paid-In Capital | ||||||||
Balances | 1,167,505 | 1,160,139 | 1,160,048 | 1,149,367 | 1,142,871 | 1,141,534 | 1,160,048 | 1,141,534 |
Equity-based compensation | 8,007 | 7,366 | 91 | 7,189 | 6,496 | 1,337 | ||
Balances | 1,175,512 | 1,167,505 | 1,160,139 | 1,156,556 | 1,149,367 | 1,142,871 | 1,175,512 | 1,156,556 |
Retained Earnings | ||||||||
Balances | 4,250,419 | 4,109,034 | 3,958,320 | 3,376,163 | 3,057,904 | 2,874,693 | 3,958,320 | 2,874,693 |
Dividends declared | (51,778) | (52,751) | (53,504) | (43,767) | (44,080) | (44,269) | ||
Equity-based compensation | (166) | (166) | (110) | (109) | (110) | (71) | ||
Net income | 151,048 | 194,302 | 204,328 | 398,375 | 362,449 | |||
Comprehensive and net income (loss) | 227,551 | |||||||
Balances | 4,349,523 | 4,250,419 | 4,109,034 | 3,730,662 | 3,376,163 | 3,057,904 | 4,349,523 | 3,730,662 |
AOCI Attributable to Parent [Member] | ||||||||
Balances | 78 | 130 | 301 | (105) | 301 | |||
Other comprehensive loss, net of tax | (39) | (52) | (171) | 63 | (105) | |||
Balances | 39 | 78 | 130 | (42) | (105) | 39 | (42) | |
Noncontrolling Interests | ||||||||
Balances | (156,139) | (158,583) | (159,082) | (158,462) | (158,582) | (156,506) | (159,082) | (156,506) |
Noncontrolling investors, net | (1,321) | (3) | ||||||
Net income | 1,560 | 2,444 | 499 | (469) | 123 | |||
Comprehensive and net income (loss) | (2,076) | |||||||
Balances | (155,900) | (156,139) | (158,583) | (158,931) | (158,462) | (158,582) | (155,900) | (158,931) |
Redeemable Noncontrolling Interest | ||||||||
Balances | 139,930 | 139,930 | 111,240 | 111,240 | 111,240 | 111,240 | 111,240 | 111,240 |
Noncontrolling investors of USS | 3,684 | 28,690 | ||||||
Balances | $ 143,614 | $ 139,930 | $ 139,930 | $ 111,240 | $ 111,240 | $ 111,240 | $ 143,614 | $ 111,240 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Gains or losses on derivative instruments, statement of income | |||||
Ineffectiveness - amount of gain (loss) recognized in income on related hedged items | $ 69,000 | $ 5,000 | $ 101,000 | $ (10,500) | |
Gain (loss) excluded from hedge effectiveness testing | (399,000) | (2,100,000) | (918,000) | 1,200,000 | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (8,000) | $ 82,000 | 139,000 | $ (55,000) | |
Net gains reclassified | (43,000) | (483,000) | |||
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | 51,000 | $ 51,000 | |||
Period Within Which The Company Expects To Reclassify Net Gains On Derivative Instruments From A O C I to Earnings | 12 months | ||||
Futures | Commodity contract | Other current assets | |||||
Commodity contract commitments | |||||
Fair value of derivatives including required margin deposits | $ 4,300,000 | $ 4,300,000 | $ 4,900,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Notional Amounts of Outstanding Derivative Positions) (Details) - Futures | 9 Months Ended |
Sep. 30, 2019T | |
Aluminum | Long | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 575 |
Aluminum | Short | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 4,100 |
Copper | Long | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 10,036 |
Copper | Short | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 21,704 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Commodity futures, asset derivatives | $ 1,376 | $ 4,558 |
Commodity futures, liability derivatives | 3,905 | 3,890 |
Designated as hedging instrument | Commodity contract | Futures | Other current assets | ||
Commodity futures, asset derivatives | 1,063 | 2,999 |
Commodity futures, liability derivatives | 805 | 1,837 |
Not designated as hedging instrument | Commodity contract | Futures | Other current assets | ||
Commodity futures, asset derivatives | 313 | 1,559 |
Commodity futures, liability derivatives | $ 3,100 | $ 2,053 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Schedule of Derivatives Instruments Statements of Financial Position) (Details) - Commodity contract - Futures - Cost of goods sold - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Designated as hedging instrument | ||||
Amount of gain (loss) recognized in income on derivatives | $ 302 | $ (8,943) | $ (560) | $ 1,113 |
Amount of gain (loss) recognized in income on related hedged items | (701) | 6,864 | (358) | 59 |
Designated as hedging instrument | Firm commitments | ||||
Amount of gain (loss) recognized in income on related hedged items | (519) | 5,111 | (603) | 1,718 |
Designated as hedging instrument | Inventory | ||||
Amount of gain (loss) recognized in income on related hedged items | (182) | 1,753 | 245 | (1,659) |
Not designated as hedging instrument | ||||
Amount of gain (loss) recognized in income on derivatives | $ 4,536 | $ 13,803 | $ 5,946 | $ 19,523 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets and liabilities subject to fair value measurements | ||
Short-term Investments | $ 69,529 | $ 228,783 |
Commodity futures - financial assets | 1,376 | 4,558 |
Commodity futures - financial liabilities | 3,905 | 3,890 |
Outstanding Balance | 2,500,000 | 2,400,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets and liabilities subject to fair value measurements | ||
Short-term Investments | 69,529 | 228,783 |
Fair value of long-term debt, including current maturities | 2,500,000 | 2,400,000 |
Futures | Recurring | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 1,376 | 4,558 |
Commodity futures - financial liabilities | 3,905 | 3,890 |
Futures | Recurring | Fair Value, Inputs, Level 2 [Member] | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 1,376 | 4,558 |
Commodity futures - financial liabilities | $ 3,905 | $ 3,890 |
Segment Information - Results (
Segment Information - Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information | |||||
Net sales | $ 2,526,845 | $ 3,223,547 | $ 8,114,795 | $ 8,917,947 | |
Operating income (loss) | 228,045 | 531,572 | 804,919 | 1,356,856 | |
Income (loss) before income taxes | 201,251 | 507,115 | 725,274 | 1,278,489 | |
Depreciation and amortization | 79,470 | 81,383 | 240,555 | 236,638 | |
Capital expenditures | 154,131 | 70,668 | 293,687 | 176,477 | |
Assets | 7,943,247 | 7,943,247 | $ 7,703,563 | ||
U.S. | |||||
Segment Reporting Information | |||||
Net sales | 3,085,224 | 7,701,827 | 8,357,030 | ||
Non-U.S. | |||||
Segment Reporting Information | |||||
Net sales | 138,323 | 412,968 | 560,917 | ||
Operating Segment | Other segments | |||||
Segment Reporting Information | |||||
Net sales | (380,414) | ||||
Operating Segment | U.S. | |||||
Segment Reporting Information | |||||
Net sales | 2,392,012 | ||||
Operating Segment | Non-U.S. | |||||
Segment Reporting Information | |||||
Net sales | 134,833 | ||||
Operating Segment | Steel Operations | |||||
Segment Reporting Information | |||||
Net sales | 2,008,205 | 2,586,626 | 6,396,555 | 7,004,088 | |
Operating income (loss) | 234,683 | 573,848 | 835,172 | 1,441,904 | |
Income (loss) before income taxes | 217,699 | 557,870 | 784,873 | 1,390,074 | |
Depreciation and amortization | 63,170 | 64,088 | 188,832 | 184,998 | |
Capital expenditures | 40,818 | 57,074 | 128,069 | 137,484 | |
Assets | 5,119,419 | 5,119,419 | |||
Operating Segment | Steel Operations | Other segments | |||||
Segment Reporting Information | |||||
Net sales | 85,678 | 111,582 | 243,107 | 281,828 | |
Operating Segment | Steel Operations | U.S. | |||||
Segment Reporting Information | |||||
Net sales | 1,838,682 | 2,400,329 | 5,918,189 | 6,360,177 | |
Operating Segment | Steel Operations | Non-U.S. | |||||
Segment Reporting Information | |||||
Net sales | 83,845 | 74,715 | 235,259 | 362,083 | |
Operating Segment | Metals Recycling Operations | |||||
Segment Reporting Information | |||||
Net sales | 574,908 | 800,014 | 1,968,719 | 2,436,875 | |
Operating income (loss) | (101) | 14,674 | 24,480 | 62,027 | |
Income (loss) before income taxes | (1,159) | 13,488 | 20,846 | 57,458 | |
Depreciation and amortization | 11,769 | 11,491 | 34,733 | 34,602 | |
Capital expenditures | 11,498 | 11,603 | 30,313 | 27,496 | |
Assets | 972,493 | 972,493 | |||
Operating Segment | Metals Recycling Operations | Other segments | |||||
Segment Reporting Information | |||||
Net sales | 293,999 | 412,795 | 1,013,574 | 1,236,830 | |
Operating Segment | Metals Recycling Operations | U.S. | |||||
Segment Reporting Information | |||||
Net sales | 230,086 | 323,611 | 778,637 | 1,001,267 | |
Operating Segment | Metals Recycling Operations | Non-U.S. | |||||
Segment Reporting Information | |||||
Net sales | 50,823 | 63,608 | 176,508 | 198,778 | |
Operating Segment | Steel Fabrication Operations | |||||
Segment Reporting Information | |||||
Net sales | 246,716 | 250,745 | 716,809 | 670,344 | |
Operating income (loss) | 35,280 | 13,104 | 86,567 | 47,039 | |
Income (loss) before income taxes | 34,080 | 11,801 | 82,897 | 42,898 | |
Depreciation and amortization | 2,941 | 2,941 | 8,882 | 8,785 | |
Capital expenditures | 3,759 | 1,395 | 8,771 | 5,526 | |
Assets | 414,835 | 414,835 | |||
Operating Segment | Steel Fabrication Operations | Other segments | |||||
Segment Reporting Information | |||||
Net sales | 637 | 120 | 826 | 788 | |
Operating Segment | Steel Fabrication Operations | U.S. | |||||
Segment Reporting Information | |||||
Net sales | 245,914 | 250,625 | 714,782 | 669,500 | |
Operating Segment | Steel Fabrication Operations | Non-U.S. | |||||
Segment Reporting Information | |||||
Net sales | 165 | 1,201 | 56 | ||
Operating Segment | Other | |||||
Segment Reporting Information | |||||
Net sales | 77,430 | 111,953 | 290,688 | 327,651 | |
Operating income (loss) | (42,441) | (67,113) | (148,514) | (186,137) | |
Income (loss) before income taxes | (49,780) | (73,109) | (169,914) | (203,970) | |
Depreciation and amortization | 1,590 | 2,863 | 8,108 | 8,253 | |
Capital expenditures | 98,056 | 596 | 126,534 | 5,971 | |
Assets | 1,513,798 | 1,513,798 | |||
Operating Segment | Other | Other segments | |||||
Segment Reporting Information | |||||
Net sales | 100 | 1,294 | 469 | 1,565 | |
Operating Segment | Other | U.S. | |||||
Segment Reporting Information | |||||
Net sales | 77,330 | 110,659 | 290,219 | 326,086 | |
Eliminations | |||||
Segment Reporting Information | |||||
Net sales | (380,414) | (525,791) | (1,257,976) | (1,521,011) | |
Operating income (loss) | 624 | (2,941) | 7,214 | (7,977) | |
Income (loss) before income taxes | 411 | (2,935) | 6,572 | (7,971) | |
Assets | $ (77,298) | (77,298) | |||
Eliminations | Other segments | |||||
Segment Reporting Information | |||||
Net sales | $ (525,791) | $ (1,257,976) | $ (1,521,011) |
Segment Information - Results F
Segment Information - Results Footnote (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Operating income (loss) | |||||
Corporate SG & A | $ (107,242) | $ (102,614) | $ (324,530) | $ (310,076) | |
Profit sharing | (17,848) | (45,304) | (64,396) | (114,301) | |
Operating income (loss) | 228,045 | 531,572 | 804,919 | 1,356,856 | |
Gross profit | 359,839 | 686,081 | 1,214,575 | 1,801,579 | |
Assets | |||||
Accounts receivable | 986,946 | 986,946 | $ 1,043,756 | ||
Cash and equivalents | 1,146,007 | 1,146,007 | 828,220 | ||
Short-term Investments | 69,529 | 69,529 | 228,783 | ||
Inventories | 1,767,020 | 1,767,020 | 1,859,168 | ||
Property, plant and equipment, net | 3,031,731 | 3,031,731 | 2,945,767 | ||
Other assets | 100,685 | 100,685 | 25,166 | ||
Total assets | 7,943,247 | 7,943,247 | $ 7,703,563 | ||
Operating Segment | Other | |||||
Operating income (loss) | |||||
Corporate SG & A | (15,400) | (13,800) | (56,000) | (44,000) | |
Company-wide equity-based compensation | (8,700) | (7,800) | (26,100) | (24,800) | |
Profit sharing | (17,000) | (43,400) | (61,300) | (109,600) | |
Other, net | (1,300) | (2,100) | (5,100) | (7,700) | |
Operating income (loss) | (42,441) | (67,113) | (148,514) | (186,137) | |
Assets | |||||
Cash and equivalents | 1,072,500 | 1,072,500 | |||
Short-term Investments | 69,500 | 69,500 | |||
Accounts receivable | 7,800 | 7,800 | |||
Inventories | 36,500 | 36,500 | |||
Property, plant and equipment, net | 271,800 | 271,800 | |||
Intra-company debt | 8,700 | 8,700 | |||
Other assets | 47,000 | 47,000 | |||
Total assets | 1,513,798 | 1,513,798 | |||
Operating Segment | Metals Recycling Operations | |||||
Operating income (loss) | |||||
Operating income (loss) | (101) | 14,674 | 24,480 | 62,027 | |
Assets | |||||
Total assets | 972,493 | 972,493 | |||
Eliminations | |||||
Operating income (loss) | |||||
Operating income (loss) | 624 | (2,941) | 7,214 | (7,977) | |
Gross profit | 400 | $ (2,900) | 6,600 | $ (8,000) | |
Assets | |||||
Accounts receivable | (61,200) | (61,200) | |||
Intra-company debt | (8,700) | (8,700) | |||
Other assets | (7,400) | (7,400) | |||
Total assets | $ (77,298) | $ (77,298) |
Condensed Consolidating Infor_3
Condensed Consolidating Information - Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Condensed Consolidating Balance Sheets | ||||||||
Cash and equivalents | $ 1,146,007 | $ 828,220 | ||||||
Short-term Investments | 69,529 | 228,783 | ||||||
Accounts receivable, net | 986,946 | 1,043,756 | ||||||
Inventories | 1,767,020 | 1,859,168 | ||||||
Other current assets | 50,818 | 72,730 | ||||||
Total current assets | 4,020,320 | 4,032,657 | ||||||
Property, plant and equipment, net | 3,031,731 | 2,945,767 | ||||||
Intangible assets, net | 249,598 | 270,328 | ||||||
Goodwill | 540,913 | 429,645 | ||||||
Other assets, including investments in subs | 100,685 | 25,166 | ||||||
Total assets | 7,943,247 | 7,703,563 | ||||||
Accounts payable | 528,629 | 550,754 | ||||||
Accrued expenses | 394,496 | 444,149 | ||||||
Current maturities of long-term debt | 82,150 | 24,234 | ||||||
Total current liabilities | 1,005,275 | 1,019,137 | ||||||
Long-term debt | 2,355,243 | 2,352,489 | ||||||
Other liabilities | 538,374 | 444,708 | ||||||
Total liabilities | 3,898,892 | 3,816,334 | ||||||
Redeemable noncontrolling interests | 143,614 | 111,240 | ||||||
Common stock | 645 | 645 | ||||||
Treasury stock | (1,469,078) | (1,184,243) | ||||||
Additional paid-in capital | 1,175,512 | 1,160,048 | ||||||
Retained earnings (deficit) | 4,349,523 | 3,958,320 | ||||||
Accumulated other comprehensive income (loss) | 39 | 301 | ||||||
Total Steel Dynamics, Inc. equity | 4,056,641 | 3,935,071 | ||||||
Noncontrolling interests | (155,900) | (159,082) | ||||||
Total equity | 3,900,741 | $ 3,908,351 | $ 3,849,528 | 3,775,989 | $ 3,874,837 | $ 3,588,519 | $ 3,312,137 | $ 3,195,068 |
Total liabilities and equity | 7,943,247 | 7,703,563 | ||||||
Parent | ||||||||
Condensed Consolidating Balance Sheets | ||||||||
Cash and equivalents | 1,070,215 | 809,763 | ||||||
Short-term Investments | 69,529 | 198,783 | ||||||
Accounts receivable, net | 303,259 | 340,439 | ||||||
Inventories | 725,792 | 793,174 | ||||||
Other current assets | 29,754 | 56,578 | ||||||
Total current assets | 2,198,549 | 2,198,737 | ||||||
Property, plant and equipment, net | 966,715 | 871,482 | ||||||
Other assets, including investments in subs | 2,723,786 | 2,862,556 | ||||||
Total assets | 5,889,050 | 5,932,775 | ||||||
Accounts payable | 177,308 | 209,156 | ||||||
Accrued expenses | 228,600 | 296,528 | ||||||
Current maturities of long-term debt | 843 | 793 | ||||||
Total current liabilities | 406,751 | 506,477 | ||||||
Long-term debt | 2,330,968 | 2,327,798 | ||||||
Other liabilities | (905,310) | (836,571) | ||||||
Total liabilities | 1,832,409 | 1,997,704 | ||||||
Common stock | 645 | 645 | ||||||
Treasury stock | (1,469,078) | (1,184,243) | ||||||
Additional paid-in capital | 1,175,512 | 1,160,048 | ||||||
Retained earnings (deficit) | 4,349,523 | 3,958,320 | ||||||
Accumulated other comprehensive income (loss) | 39 | 301 | ||||||
Total Steel Dynamics, Inc. equity | 4,056,641 | 3,935,071 | ||||||
Total equity | 4,056,641 | 3,935,071 | ||||||
Total liabilities and equity | 5,889,050 | 5,932,775 | ||||||
Guarantors | ||||||||
Condensed Consolidating Balance Sheets | ||||||||
Cash and equivalents | 64,398 | 13,491 | ||||||
Short-term Investments | 30,000 | |||||||
Accounts receivable, net | 1,675,521 | 1,635,168 | ||||||
Inventories | 960,506 | 1,038,702 | ||||||
Other current assets | 17,464 | 18,627 | ||||||
Total current assets | 2,717,889 | 2,735,988 | ||||||
Property, plant and equipment, net | 1,902,414 | 1,918,198 | ||||||
Intangible assets, net | 249,598 | 270,328 | ||||||
Goodwill | 427,103 | 429,645 | ||||||
Other assets, including investments in subs | 61,910 | 5,593 | ||||||
Total assets | 5,358,914 | 5,359,752 | ||||||
Accounts payable | 332,299 | 330,156 | ||||||
Accrued expenses | 316,684 | 295,668 | ||||||
Current maturities of long-term debt | 517 | 1,355 | ||||||
Total current liabilities | 649,500 | 627,179 | ||||||
Long-term debt | 381 | |||||||
Other liabilities | 1,087,758 | 1,447,464 | ||||||
Total liabilities | 1,737,258 | 2,075,024 | ||||||
Common stock | 1,727,859 | 1,727,859 | ||||||
Additional paid-in capital | 683,048 | 683,048 | ||||||
Retained earnings (deficit) | 1,210,749 | 873,821 | ||||||
Total Steel Dynamics, Inc. equity | 3,621,656 | 3,284,728 | ||||||
Total equity | 3,621,656 | 3,284,728 | ||||||
Total liabilities and equity | 5,358,914 | 5,359,752 | ||||||
Combined Non-Guarantors | ||||||||
Condensed Consolidating Balance Sheets | ||||||||
Cash and equivalents | 11,394 | 4,966 | ||||||
Accounts receivable, net | 63,962 | 26,655 | ||||||
Inventories | 88,871 | 39,214 | ||||||
Other current assets | 4,548 | 3,994 | ||||||
Total current assets | 168,775 | 74,829 | ||||||
Property, plant and equipment, net | 162,602 | 156,087 | ||||||
Goodwill | 113,810 | |||||||
Other assets, including investments in subs | 6,420 | 5,557 | ||||||
Total assets | 451,607 | 236,473 | ||||||
Accounts payable | 99,162 | 74,353 | ||||||
Accrued expenses | 16,694 | 11,171 | ||||||
Current maturities of long-term debt | 103,551 | 51,079 | ||||||
Total current liabilities | 219,407 | 136,603 | ||||||
Long-term debt | 147,310 | 166,226 | ||||||
Other liabilities | 34,290 | 31,791 | ||||||
Total liabilities | 401,007 | 334,620 | ||||||
Redeemable noncontrolling interests | 143,614 | 111,240 | ||||||
Common stock | 15,016 | 15,016 | ||||||
Additional paid-in capital | 804,625 | 695,502 | ||||||
Retained earnings (deficit) | (756,755) | (760,823) | ||||||
Total Steel Dynamics, Inc. equity | 62,886 | (50,305) | ||||||
Noncontrolling interests | (155,900) | (159,082) | ||||||
Total equity | (93,014) | (209,387) | ||||||
Total liabilities and equity | 451,607 | 236,473 | ||||||
Consolidating Adjustments | ||||||||
Condensed Consolidating Balance Sheets | ||||||||
Accounts receivable, net | (1,055,796) | (958,506) | ||||||
Inventories | (8,149) | (11,922) | ||||||
Other current assets | (948) | (6,469) | ||||||
Total current assets | (1,064,893) | (976,897) | ||||||
Other assets, including investments in subs | (2,691,431) | (2,848,540) | ||||||
Total assets | (3,756,324) | (3,825,437) | ||||||
Accounts payable | (80,140) | (62,911) | ||||||
Accrued expenses | (167,482) | (159,218) | ||||||
Current maturities of long-term debt | (22,761) | (28,993) | ||||||
Total current liabilities | (270,383) | (251,122) | ||||||
Long-term debt | (123,035) | (141,916) | ||||||
Other liabilities | 321,636 | (197,976) | ||||||
Total liabilities | (71,782) | (591,014) | ||||||
Common stock | (1,742,875) | (1,742,875) | ||||||
Additional paid-in capital | (1,487,673) | (1,378,550) | ||||||
Retained earnings (deficit) | (453,994) | (112,998) | ||||||
Total Steel Dynamics, Inc. equity | (3,684,542) | (3,234,423) | ||||||
Total equity | (3,684,542) | (3,234,423) | ||||||
Total liabilities and equity | $ (3,756,324) | $ (3,825,437) |
Condensed Consolidating Infor_4
Condensed Consolidating Information - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Consolidating Statements of Operations | |||||||
Net sales | $ 2,526,845 | $ 3,223,547 | $ 8,114,795 | $ 8,917,947 | |||
Costs of goods sold | 2,167,006 | 2,537,466 | 6,900,220 | 7,116,368 | |||
Gross profit | 359,839 | 686,081 | 1,214,575 | 1,801,579 | |||
Selling, general and administrative | 131,794 | 154,509 | 409,656 | 444,723 | |||
Operating income | 228,045 | 531,572 | 804,919 | 1,356,856 | |||
Interest expense, net of capitalized interest | 31,339 | 31,560 | 94,782 | 94,968 | |||
Other income, net | (4,545) | (7,103) | (15,137) | (16,601) | |||
Income before income taxes | 201,251 | 507,115 | 725,274 | 1,278,489 | |||
Income taxes | 48,643 | 109,209 | 171,093 | 292,536 | |||
Net income | 152,608 | $ 196,746 | $ 204,827 | 397,906 | $ 362,572 | 554,181 | 985,953 |
Net (income) loss attributable to noncontrolling interests | (1,560) | 469 | (4,503) | 2,422 | |||
Net income attributable to Steel Dynamics, Inc. | 151,048 | 398,375 | 549,678 | 988,375 | |||
Parent | |||||||
Condensed Consolidating Statements of Operations | |||||||
Net sales | 976,470 | 1,304,801 | 3,198,215 | 3,635,571 | |||
Costs of goods sold | 814,622 | 956,735 | 2,628,849 | 2,746,516 | |||
Gross profit | 161,848 | 348,066 | 569,366 | 889,055 | |||
Selling, general and administrative | 55,613 | 78,824 | 185,647 | 218,839 | |||
Operating income | 106,235 | 269,242 | 383,719 | 670,216 | |||
Interest expense, net of capitalized interest | 18,716 | 18,559 | 56,818 | 56,568 | |||
Other income, net | (5,394) | (7,121) | (17,752) | (18,299) | |||
Income before income taxes | 92,913 | 257,804 | 344,653 | 631,947 | |||
Income taxes | 23,625 | 45,599 | 81,422 | 127,083 | |||
Net income | 69,288 | 212,205 | 263,231 | 504,864 | |||
Equity in net income of subsidiaries | 81,760 | 186,170 | 286,447 | 483,511 | |||
Net income attributable to Steel Dynamics, Inc. | 151,048 | 398,375 | 549,678 | 988,375 | |||
Guarantors | |||||||
Condensed Consolidating Statements of Operations | |||||||
Net sales | 2,710,767 | 3,540,381 | 8,837,385 | 9,804,316 | |||
Costs of goods sold | 2,502,257 | 3,163,110 | 8,141,120 | 8,783,145 | |||
Gross profit | 208,510 | 377,271 | 696,265 | 1,021,171 | |||
Selling, general and administrative | 74,433 | 78,694 | 221,592 | 233,989 | |||
Operating income | 134,077 | 298,577 | 474,673 | 787,182 | |||
Interest expense, net of capitalized interest | 11,536 | 12,489 | 35,107 | 36,793 | |||
Other income, net | (1,574) | (2,292) | (4,746) | (5,612) | |||
Income before income taxes | 124,115 | 288,380 | 444,312 | 756,001 | |||
Income taxes | 29,965 | 71,466 | 107,384 | 187,794 | |||
Net income | 94,150 | 216,914 | 336,928 | 568,207 | |||
Net income attributable to Steel Dynamics, Inc. | 94,150 | 216,914 | 336,928 | 568,207 | |||
Combined Non-Guarantors | |||||||
Condensed Consolidating Statements of Operations | |||||||
Net sales | 205,617 | 144,145 | 611,407 | 417,450 | |||
Costs of goods sold | 188,967 | 142,005 | 568,914 | 413,607 | |||
Gross profit | 16,650 | 2,140 | 42,493 | 3,843 | |||
Selling, general and administrative | 7,827 | 2,974 | 19,891 | 8,550 | |||
Operating income | 8,823 | (834) | 22,602 | (4,707) | |||
Interest expense, net of capitalized interest | 3,490 | 3,134 | 10,327 | 9,489 | |||
Other income, net | (196) | (306) | (753) | (565) | |||
Income before income taxes | 5,529 | (3,662) | 13,028 | (13,631) | |||
Income taxes | 128 | 420 | 495 | 530 | |||
Net income | 5,401 | (4,082) | 12,533 | (14,161) | |||
Net (income) loss attributable to noncontrolling interests | (1,560) | 469 | (4,503) | 2,422 | |||
Net income attributable to Steel Dynamics, Inc. | 3,841 | (3,613) | 8,030 | (11,739) | |||
Consolidating Adjustments | |||||||
Condensed Consolidating Statements of Operations | |||||||
Net sales | (1,366,009) | (1,765,780) | (4,532,212) | (4,939,390) | |||
Costs of goods sold | (1,338,840) | (1,724,384) | (4,438,663) | (4,826,900) | |||
Gross profit | (27,169) | (41,396) | (93,549) | (112,490) | |||
Selling, general and administrative | (6,079) | (5,983) | (17,474) | (16,655) | |||
Operating income | (21,090) | (35,413) | (76,075) | (95,835) | |||
Interest expense, net of capitalized interest | (2,403) | (2,622) | (7,470) | (7,882) | |||
Other income, net | 2,619 | 2,616 | 8,114 | 7,875 | |||
Income before income taxes | (21,306) | (35,407) | (76,719) | (95,828) | |||
Income taxes | (5,075) | (8,276) | (18,208) | (22,871) | |||
Net income | (16,231) | (27,131) | (58,511) | (72,957) | |||
Equity in net income of subsidiaries | (81,760) | (186,170) | (286,447) | (483,511) | |||
Net income attributable to Steel Dynamics, Inc. | $ (97,991) | $ (213,301) | $ (344,958) | $ (556,468) |
Condensed Consolidating Infor_5
Condensed Consolidating Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by operating activities | $ 444,202 | $ 420,440 | $ 987,228 | $ 924,408 |
Net cash used in investing activities | (110,455) | (132,681) | (227,517) | (724,013) |
Net cash provided by (used in) financing activities | (160,986) | (124,044) | (442,594) | (345,341) |
Increase (decrease) in cash, cash equivalents, and restricted cash | 172,761 | 163,715 | 317,117 | (144,946) |
Cash, cash equivalents, and restricted cash at beginning of period | 978,779 | 726,424 | 834,423 | 1,035,085 |
Cash, cash equivalents, and restricted cash at end of period | 1,151,540 | 890,139 | 1,151,540 | 890,139 |
Parent | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by operating activities | 368,148 | 401,680 | ||
Net cash used in investing activities | (116,470) | (617,158) | ||
Net cash provided by (used in) financing activities | 8,774 | 77,165 | ||
Increase (decrease) in cash, cash equivalents, and restricted cash | 260,452 | (138,313) | ||
Cash, cash equivalents, and restricted cash at beginning of period | 809,763 | 1,002,230 | ||
Cash, cash equivalents, and restricted cash at end of period | 1,070,215 | 863,917 | 1,070,215 | 863,917 |
Guarantors | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by operating activities | 624,223 | 505,175 | ||
Net cash used in investing activities | (78,193) | (106,230) | ||
Net cash provided by (used in) financing activities | (495,488) | (405,499) | ||
Increase (decrease) in cash, cash equivalents, and restricted cash | 50,542 | (6,554) | ||
Cash, cash equivalents, and restricted cash at beginning of period | 14,368 | 20,748 | ||
Cash, cash equivalents, and restricted cash at end of period | 64,910 | 14,194 | 64,910 | 14,194 |
Combined Non-Guarantors | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by operating activities | 18,893 | 2,101 | ||
Net cash used in investing activities | (7,740) | (4,920) | ||
Net cash provided by (used in) financing activities | (5,030) | 2,740 | ||
Increase (decrease) in cash, cash equivalents, and restricted cash | 6,123 | (79) | ||
Cash, cash equivalents, and restricted cash at beginning of period | 10,292 | 12,107 | ||
Cash, cash equivalents, and restricted cash at end of period | $ 16,415 | $ 12,028 | 16,415 | 12,028 |
Consolidating Adjustments | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by operating activities | (24,036) | 15,452 | ||
Net cash used in investing activities | (25,114) | 4,295 | ||
Net cash provided by (used in) financing activities | $ 49,150 | $ (19,747) |