Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
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 | 210,332,119 | |
Entity Central Index Key | 0001022671 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and equivalents | $ 1,235,478 | $ 1,381,460 |
Short-term investments | 219,193 | 262,174 |
Accounts receivable, net | 995,324 | 841,378 |
Accounts receivable-related parties | 3,084 | 2,958 |
Inventories | 1,644,538 | 1,689,043 |
Other current assets | 45,351 | 76,012 |
Total current assets | 4,142,968 | 4,253,025 |
Property, plant and equipment, net | 3,327,605 | 3,135,886 |
Intangible assets, net | 320,711 | 327,901 |
Goodwill | 452,068 | 452,915 |
Other assets | 101,571 | 106,038 |
Total assets | 8,344,923 | 8,275,765 |
Current liabilities | ||
Accounts payable | 602,875 | 509,687 |
Accounts payable-related parties | 9,285 | 3,657 |
Income taxes payable | 17,806 | 2,014 |
Accrued payroll and benefits | 124,181 | 208,287 |
Accrued interest | 39,749 | 18,292 |
Accrued expenses | 167,718 | 175,405 |
Current maturities of long-term debt | 70,106 | 89,356 |
Total current liabilities | 1,031,720 | 1,006,698 |
Long-term debt | 2,646,012 | 2,644,988 |
Deferred income taxes | 489,248 | 484,169 |
Other liabilities | 72,004 | 75,055 |
Total liabilities | 4,238,984 | 4,210,910 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 151,014 | 143,614 |
Equity | ||
Common stock voting, $.0025 par value; 900,000,000 shares authorized; 266,079,627 and 266,072,787 shares issued; and 210,338,959 and 214,502,639 shares outstanding, as of March 31, 2020 and December 31, 2019, respectively | 646 | 646 |
Treasury stock, at cost; 55,740,668 and 51,570,148 shares, as of March 31, 2020 and December 31, 2019, respectively | (1,624,808) | (1,525,113) |
Additional paid-in capital | 1,183,776 | 1,181,012 |
Retained earnings | 4,553,882 | 4,419,296 |
Accumulated other comprehensive income (loss) | 30 | (7) |
Total Steel Dynamics, Inc. equity | 4,113,526 | 4,075,834 |
Noncontrolling interests | (158,601) | (154,593) |
Total equity | 3,954,925 | 3,921,241 |
Total liabilities and equity | $ 8,344,923 | $ 8,275,765 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
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) | 266,079,627 | 266,072,787 |
Common stock voting, shares outstanding (in shares) | 210,338,959 | 214,502,639 |
Treasury stock, shares (in shares) | 55,740,668 | 51,570,148 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net sales | ||
Unrelated parties | $ 2,571,544 | $ 2,814,486 |
Related parties | 3,556 | 2,949 |
Total net sales | 2,575,100 | 2,817,435 |
Costs of goods sold | 2,159,871 | 2,383,865 |
Gross profit | 415,229 | 433,570 |
Selling, general and administrative expenses | 112,898 | 111,038 |
Profit sharing | 21,454 | 23,677 |
Amortization of intangible assets | 7,191 | 7,013 |
Operating income | 273,686 | 291,842 |
Interest expense, net of capitalized interest | 28,019 | 31,122 |
Other income, net | (2,589) | (6,343) |
Income before income taxes | 248,256 | 267,063 |
Income tax expense | 57,420 | 62,236 |
Net income | 190,836 | 204,827 |
Net income attributable to noncontrolling interests | (3,496) | (499) |
Net income attributable to Steel Dynamics, Inc. | $ 187,340 | $ 204,328 |
Basic earnings per share attributable to Steel Dynamics, Inc. stockholders | $ 0.88 | $ 0.91 |
Weighted average common shares outstanding (in shares) | 213,254 | 224,058 |
Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share) | $ 0.88 | $ 0.91 |
Weighted average common shares and share equivalents outstanding (in shares) | 214,024 | 224,962 |
Dividends declared per share (in dollars per share) | $ 0.2500 | $ 0.2400 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 190,836 | $ 204,827 |
Other comprehensive income (loss) - net unrealized gain (loss) on cash flow hedging derivatives, net of income tax | 37 | (171) |
Comprehensive income | 190,873 | 204,656 |
Comprehensive income attributable to noncontrolling interests | (3,496) | (499) |
Comprehensive income attributable to Steel Dynamics, Inc. | $ 187,377 | $ 204,157 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities: | ||
Net income | $ 190,836 | $ 204,827 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 80,259 | 80,174 |
Equity-based compensation | 17,844 | 15,308 |
Deferred income taxes | 5,927 | 12,091 |
Other adjustments | (264) | 728 |
Changes in certain assets and liabilities: | ||
Accounts receivable | (154,072) | (61,062) |
Inventories | 44,505 | 39,469 |
Other assets | (1,541) | 301 |
Accounts payable | 51,596 | 3,206 |
Income taxes receivable/payable | 52,385 | 49,850 |
Accrued expenses | (76,194) | (163,339) |
Net cash provided by operating activities | 211,281 | 181,553 |
Investing activities: | ||
Purchases of property, plant and equipment | (217,535) | (54,436) |
Purchases of short-term investments | (149,359) | (49,677) |
Proceeds from maturities of short-term investments | 192,340 | 104,737 |
Acquisition of business, net of cash and restricted cash acquired | (93,412) | |
Other investing activities | 518 | 364 |
Net cash used in investing activities | (174,036) | (92,424) |
Financing activities: | ||
Issuance of current and long-term debt | 216,261 | 121,234 |
Repayment of current and long-term debt | (235,757) | (115,271) |
Dividends paid | (51,481) | (42,239) |
Purchases of treasury stock | (106,529) | (84,308) |
Other financing activities | (6,152) | (5,720) |
Net cash used in financing activities | (183,658) | (126,304) |
Decrease in cash, cash equivalents, and restricted cash | (146,413) | (37,175) |
Cash, cash equivalents, and restricted cash at beginning of period | 1,387,397 | 834,423 |
Cash, cash equivalents, and restricted cash at end of period | 1,240,984 | 797,248 |
Supplemental disclosure information: | ||
Cash paid for interest | 8,785 | 8,606 |
Cash paid for income taxes, net | $ 518 | $ 1,839 |
Description of the Business and
Description of the Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019. 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 and equivalents 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, $5.9 million, $5.8 million, and $6.2 million at March 31, 2020, December 31, 2019, March 31, 2019, and December 31, 2018, respectively, which are recorded in Other Assets (noncurrent) in the company’s consolidated balance sheets. Note 1. Description of the Business and Significant Accounting Policies (Continued) Goodwill The company’s goodwill consisted of the following at March 31, 2020, and December 31, 2019, (in thousands): March 31, December 31, 2020 2019 Steel Operations Segment $ 272,133 $ 272,133 Metals Recycling Operations Segment 178,010 178,857 Steel Fabrication Operations Segment 1,925 1,925 $ 452,068 $ 452,915 Metals Recycling Operations Segment goodwill decreased $847,000 from December 31, 2019 to March 31, 2020, in recognition of the 2020 tax benefit related to the normal amortization of the component of OmniSource tax-deductible goodwill in excess of book goodwill. Credit Losses ASU 2016-13, Financial Instruments - Credit Losses and its subsequent corresponding updates (ASC 326), requires an entity to use a forward-looking expected loss model versus the incurred loss model for most financial instruments, including accounts receivable. The company adopted ASC 326 effective January 1, 2020, using the modified retrospective transition method, with no impact on the company’s financial position, results of operations or cash flows. The company is exposed to credit risk in the event of nonpayment of accounts receivable by customers. The company mitigates its exposure to credit risk, which it generally extends on an unsecured basis, by performing ongoing credit evaluations and taking further action if necessary, such as requiring letters of credit or other security interests to support the customer receivable. The allowance for credit losses for accounts receivable is based on the company’s reasonable estimate of known credit risks and historical experience, adjusted for current and anticipated economic and other pertinent factors affecting the company’s customers, that may differ from historical experience. Customer accounts receivable are written off when all collection efforts have been exhausted and the amounts are deemed uncollectible. At March 31, 2020, we reported $998.4 million of accounts receivable, net of allowances for credit losses of $6.9 million. Changes in the allowance were not material for the three-month period ended March 31, 2020. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share | |
Earnings Per Share | Note 2. Earnings Per Share Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company’s basic earnings per share. Common share equivalents represent potentially dilutive restricted stock units, deferred stock units, 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-month periods ended March 31, 2020 and 2019. Three Months Ended March 31, 2020 2019 Weighted Weighted Average Average Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 187,340 213,254 $ 0.88 $ 204,328 224,058 $ 0.91 Dilutive common share equivalents - 770 - 904 Diluted earnings per share $ 187,340 214,024 $ 0.88 $ 204,328 224,962 $ 0.91 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventories | |
Inventories | Note 3. Inventories Inventories are stated at lower of cost or net realizable value. Cost is determined using a weighted average cost method for raw materials and supplies, and on a first-in, first-out basis for other inventory. Inventory consisted of the following (in thousands): March 31, December 31, 2020 2019 Raw materials $ 650,140 $ 686,831 Supplies 490,401 498,298 Work in progress 160,831 154,669 Finished goods 343,166 349,245 Total inventories $ 1,644,538 $ 1,689,043 |
Changes in Equity
Changes in Equity | 3 Months Ended |
Mar. 31, 2020 | |
Changes in Equity | |
Changes in Equity | Note 4. 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 ended March 31, 2020 and 2019: 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, 2019 $ 646 $ (1,525,113) $ 1,181,012 $ 4,419,296 $ (7) $ (154,593) $ 3,921,241 $ 143,614 Dividends declared - - - (52,585) - - (52,585) - Noncontrolling investors of USS - - - - - (7,504) (7,504) 7,400 Share repurchases - (106,529) - - - - (106,529) - Equity-based compensation - 6,834 2,764 (169) - - 9,429 - Net income - - - 187,340 - 3,496 190,836 - Other comprehensive loss, net of tax - - - - 37 - 37 - Balances at March 31, 2020 $ 646 $ (1,624,808) $ 1,183,776 $ 4,553,882 $ 30 $ (158,601) $ 3,954,925 $ 151,014 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 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 5. 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, and have in the past to mitigate 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 . If the company is “long” on futures contracts, it means the company has more futures contracts purchased than futures contracts sold for the underlying commodity. If the company is “short” on a futures contract, it means the company has more futures contracts sold than futures contracts purchased for the underlying commodity. The following summarizes the company’s significant futures contract commitments as of March 31, 2020: Commodity Futures Long/Short Metric Tons Aluminum Long 1,425 Aluminum Short 4,475 Copper Long 8,766 Copper Short 13,562 The following summarizes the location and amounts of the fair values reported on the company’s consolidated balance sheets as of March 31, 2020, and December 31, 2019, and gains and losses related to derivatives included in the company’s statement of income for the three-month periods ended March 31, 2020, and 2019 (in thousands): Asset Derivatives Liability Derivatives Balance sheet Fair Value Fair Value location March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 Derivative instruments designated as hedges Commodity futures Other current assets $ 3,283 $ 966 $ 2,441 $ 1,011 Derivative instruments not designated as hedges Commodity futures Other current assets 2,111 310 2,598 721 Total derivative instruments $ 5,394 $ 1,276 $ 5,039 $ 1,732 The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements totaled $2.6 million at March 31, 2020, and $3.7 million at December 31, 2019, 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 March 31, fair value hedge related hedged March 31, derivatives 2020 2019 relationships items 2020 2019 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ 838 $ (1,453) Firm commitments Costs of goods sold $ 1,739 $ (1,499) Inventory Costs of goods sold (1,239) 721 Derivatives not designated $ 500 $ (778) as hedging instruments Commodity futures Costs of goods sold $ 10,939 $ (4,077) Derivatives accounted for as fair value hedges had ineffectiveness resulting in losses of $61,000 and $1.1 million during the three-month periods ended March 31, 2020, and 2019, respectively. Gains excluded from hedge effectiveness testing of $1.4 million decreased cost of goods sold during the three-month period ended March 31, 2020. Losses excluded from hedge effectiveness testing of $2.2 million increased cost of goods sold during the three-month period ended March 31, 2019. Note 5. Derivative Financial Instruments (Continued) Derivatives accounted for as cash flow hedges resulted in net gains of $11,000 and $58,000 recognized in other comprehensive income for the three-month periods ended March 31, 2020, and 2019, respectively. Net losses of $37,000 and net gains of $283,000 were reclassified from accumulated other comprehensive income for the three-month periods ended March 31, 2020, and 2019, respectively. At March 31, 2020, the company expects to reclassify all $39,000 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 | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | Note 6. Fair Value Measurements 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 March 31, 2020, and December 31, 2019 (in thousands): Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) March 31, 2020 Short-term investments $ 219,193 $ - $ 219,193 $ - Commodity futures – financial assets 5,394 - 5,394 - Commodity futures – financial liabilities 5,039 - 5,039 - December 31, 2019 Short-term investments $ 262,174 $ - $ 262,174 $ - Commodity futures – financial assets 1,276 - 1,276 - Commodity futures – financial liabilities 1,732 - 1,732 - 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 $2.6 billion and $2.8 billion at March 31, 2020 and December 31, 2019, respectively (with a corresponding carrying amount in the consolidated balance sheet of $2.7 billion at March 31, 2020 and $2.8 billion at December 31, 2019). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 7. 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 | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information | |
Segment Information | Note 8. 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 unsecured 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 March 31, 2020 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 1,860,585 $ 234,833 $ 220,935 $ 120,342 $ - $ 2,436,695 External Non-U.S. 81,121 57,024 - 260 - 138,405 Other segments 74,446 336,882 506 88 (411,922) - 2,016,152 628,739 221,441 120,690 (411,922) 2,575,100 Operating income (loss) 288,394 5,528 29,163 (46,355) (1) (3,044) 273,686 Income (loss) before income taxes 273,555 4,305 27,918 (54,240) (3,282) (2) 248,256 Depreciation and amortization 62,427 11,972 2,748 3,112 - 80,259 Capital expenditures 193,273 18,223 4,089 1,950 - 217,535 As of March 31, 2020 Assets $ 5,458,553 $ 918,403 $ 405,860 $ 1,619,924 (3) $ (57,817) (4) $ 8,344,923 Footnotes related to the three months ended March 31, 2020, segment results (in millions): (1) Corporate SG&A $ (17.2) (2) Gross profit decrease from intra-company sales $ (3.3) Company-wide equity-based compensation (8.2) Profit sharing (21.3) Other, net 0.3 $ (46.4) (3) Cash and equivalents $ 1,169.6 (4) Elimination of intra-company receivables $ (38.6) Short-term investments 219.2 Elimination of intra-company debt (8.1) Accounts receivable 8.6 Other (11.1) Inventories 21.1 $ (57.8) Property, plant and equipment, net 148.8 Intra-company debt 8.1 Other 44.5 $ 1,619.9 Note 8. Segment Information (Continued) Metals Steel For the three months ended Steel Recycling Fabrication March 31, 2019 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 2,044,491 $ 285,725 $ 228,429 $ 113,248 $ - $ 2,671,893 External Non-U.S. 80,079 65,412 51 - - 145,542 Other segments 75,595 385,908 189 248 (461,940) - 2,200,165 737,045 228,669 113,496 (461,940) 2,817,435 Operating income (loss) 309,078 16,962 20,623 (56,920) (1) 2,099 (2) 291,842 Income (loss) before income taxes 293,019 15,505 19,351 (62,696) 1,884 267,063 Depreciation and amortization 62,512 11,439 2,967 3,256 - 80,174 Capital expenditures 43,676 6,642 1,993 2,125 - 54,436 Footnotes related to the three months ended March 31, 2019, segment results (in millions): (1) Corporate SG&A $ (22.6) (2) Gross profit decrease from intra-company sales $ (2.1) Company-wide equity-based compensation (9.0) Profit sharing (23.0) Other, net (2.3) $ (56.9) |
Description of the Business a_2
Description of the Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2019. |
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 and equivalents 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, $5.9 million, $5.8 million, and $6.2 million at March 31, 2020, December 31, 2019, March 31, 2019, and December 31, 2018, 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 March 31, 2020, and December 31, 2019, (in thousands): March 31, December 31, 2020 2019 Steel Operations Segment $ 272,133 $ 272,133 Metals Recycling Operations Segment 178,010 178,857 Steel Fabrication Operations Segment 1,925 1,925 $ 452,068 $ 452,915 Metals Recycling Operations Segment goodwill decreased $847,000 from December 31, 2019 to March 31, 2020, in recognition of the 2020 tax benefit related to the normal amortization of the component of OmniSource tax-deductible goodwill in excess of book goodwill. |
Credit Losses | Credit Losses ASU 2016-13, Financial Instruments - Credit Losses and its subsequent corresponding updates (ASC 326), requires an entity to use a forward-looking expected loss model versus the incurred loss model for most financial instruments, including accounts receivable. The company adopted ASC 326 effective January 1, 2020, using the modified retrospective transition method, with no impact on the company’s financial position, results of operations or cash flows. The company is exposed to credit risk in the event of nonpayment of accounts receivable by customers. The company mitigates its exposure to credit risk, which it generally extends on an unsecured basis, by performing ongoing credit evaluations and taking further action if necessary, such as requiring letters of credit or other security interests to support the customer receivable. The allowance for credit losses for accounts receivable is based on the company’s reasonable estimate of known credit risks and historical experience, adjusted for current and anticipated economic and other pertinent factors affecting the company’s customers, that may differ from historical experience. Customer accounts receivable are written off when all collection efforts have been exhausted and the amounts are deemed uncollectible. At March 31, 2020, we reported $998.4 million of accounts receivable, net of allowances for credit losses of $6.9 million. Changes in the allowance were not material for the three-month period ended March 31, 2020. |
Description of the Business a_3
Description of the Business and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Description of the Business and Significant Accounting Policies | |
Schedule of Goodwill | The company’s goodwill consisted of the following at March 31, 2020, and December 31, 2019, (in thousands): March 31, December 31, 2020 2019 Steel Operations Segment $ 272,133 $ 272,133 Metals Recycling Operations Segment 178,010 178,857 Steel Fabrication Operations Segment 1,925 1,925 $ 452,068 $ 452,915 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share | |
Reconciliation of Basic and Diluted Earnings Per Share | Three Months Ended March 31, 2020 2019 Weighted Weighted Average Average Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 187,340 213,254 $ 0.88 $ 204,328 224,058 $ 0.91 Dilutive common share equivalents - 770 - 904 Diluted earnings per share $ 187,340 214,024 $ 0.88 $ 204,328 224,962 $ 0.91 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventories | |
Schedule of Inventories | Inventory consisted of the following (in thousands): March 31, December 31, 2020 2019 Raw materials $ 650,140 $ 686,831 Supplies 490,401 498,298 Work in progress 160,831 154,669 Finished goods 343,166 349,245 Total inventories $ 1,644,538 $ 1,689,043 |
Changes in Equity (Tables)
Changes in Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 ended March 31, 2020 and 2019: 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, 2019 $ 646 $ (1,525,113) $ 1,181,012 $ 4,419,296 $ (7) $ (154,593) $ 3,921,241 $ 143,614 Dividends declared - - - (52,585) - - (52,585) - Noncontrolling investors of USS - - - - - (7,504) (7,504) 7,400 Share repurchases - (106,529) - - - - (106,529) - Equity-based compensation - 6,834 2,764 (169) - - 9,429 - Net income - - - 187,340 - 3,496 190,836 - Other comprehensive loss, net of tax - - - - 37 - 37 - Balances at March 31, 2020 $ 646 $ (1,624,808) $ 1,183,776 $ 4,553,882 $ 30 $ (158,601) $ 3,954,925 $ 151,014 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 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Financial Instruments | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following summarizes the company’s significant futures contract commitments as of March 31, 2020: Commodity Futures Long/Short Metric Tons Aluminum Long 1,425 Aluminum Short 4,475 Copper Long 8,766 Copper Short 13,562 |
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 March 31, 2020, and December 31, 2019, and gains and losses related to derivatives included in the company’s statement of income for the three-month periods ended March 31, 2020, and 2019 (in thousands): Asset Derivatives Liability Derivatives Balance sheet Fair Value Fair Value location March 31, 2020 December 31, 2019 March 31, 2020 December 31, 2019 Derivative instruments designated as hedges Commodity futures Other current assets $ 3,283 $ 966 $ 2,441 $ 1,011 Derivative instruments not designated as hedges Commodity futures Other current assets 2,111 310 2,598 721 Total derivative instruments $ 5,394 $ 1,276 $ 5,039 $ 1,732 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 March 31, fair value hedge related hedged March 31, derivatives 2020 2019 relationships items 2020 2019 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ 838 $ (1,453) Firm commitments Costs of goods sold $ 1,739 $ (1,499) Inventory Costs of goods sold (1,239) 721 Derivatives not designated $ 500 $ (778) as hedging instruments Commodity futures Costs of goods sold $ 10,939 $ (4,077) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020, and December 31, 2019 (in thousands): Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) March 31, 2020 Short-term investments $ 219,193 $ - $ 219,193 $ - Commodity futures – financial assets 5,394 - 5,394 - Commodity futures – financial liabilities 5,039 - 5,039 - December 31, 2019 Short-term investments $ 262,174 $ - $ 262,174 $ - Commodity futures – financial assets 1,276 - 1,276 - Commodity futures – financial liabilities 1,732 - 1,732 - |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 1,860,585 $ 234,833 $ 220,935 $ 120,342 $ - $ 2,436,695 External Non-U.S. 81,121 57,024 - 260 - 138,405 Other segments 74,446 336,882 506 88 (411,922) - 2,016,152 628,739 221,441 120,690 (411,922) 2,575,100 Operating income (loss) 288,394 5,528 29,163 (46,355) (1) (3,044) 273,686 Income (loss) before income taxes 273,555 4,305 27,918 (54,240) (3,282) (2) 248,256 Depreciation and amortization 62,427 11,972 2,748 3,112 - 80,259 Capital expenditures 193,273 18,223 4,089 1,950 - 217,535 As of March 31, 2020 Assets $ 5,458,553 $ 918,403 $ 405,860 $ 1,619,924 (3) $ (57,817) (4) $ 8,344,923 Footnotes related to the three months ended March 31, 2020, segment results (in millions): (1) Corporate SG&A $ (17.2) (2) Gross profit decrease from intra-company sales $ (3.3) Company-wide equity-based compensation (8.2) Profit sharing (21.3) Other, net 0.3 $ (46.4) (3) Cash and equivalents $ 1,169.6 (4) Elimination of intra-company receivables $ (38.6) Short-term investments 219.2 Elimination of intra-company debt (8.1) Accounts receivable 8.6 Other (11.1) Inventories 21.1 $ (57.8) Property, plant and equipment, net 148.8 Intra-company debt 8.1 Other 44.5 $ 1,619.9 Metals Steel For the three months ended Steel Recycling Fabrication March 31, 2019 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 2,044,491 $ 285,725 $ 228,429 $ 113,248 $ - $ 2,671,893 External Non-U.S. 80,079 65,412 51 - - 145,542 Other segments 75,595 385,908 189 248 (461,940) - 2,200,165 737,045 228,669 113,496 (461,940) 2,817,435 Operating income (loss) 309,078 16,962 20,623 (56,920) (1) 2,099 (2) 291,842 Income (loss) before income taxes 293,019 15,505 19,351 (62,696) 1,884 267,063 Depreciation and amortization 62,512 11,439 2,967 3,256 - 80,174 Capital expenditures 43,676 6,642 1,993 2,125 - 54,436 Footnotes related to the three months ended March 31, 2019, segment results (in millions): (1) Corporate SG&A $ (22.6) (2) Gross profit decrease from intra-company sales $ (2.1) Company-wide equity-based compensation (9.0) Profit sharing (23.0) Other, net (2.3) $ (56.9) |
Description of the Business a_4
Description of the Business and Significant Accounting Policies (Segments) (Details) - segment | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information | ||
Number of reporting segments | 3 | |
Steel Operations | ||
Segment Reporting Information | ||
Percentage of external net sales | 75.00% | 75.00% |
Metals Recycling Operations | ||
Segment Reporting Information | ||
Percentage of external net sales | 11.00% | 13.00% |
Steel Fabrication Operations | ||
Segment Reporting Information | ||
Percentage of external net sales | 9.00% | 8.00% |
Description of the Business a_5
Description of the Business and Significant Accounting Policies (Cash and Equivalents, and Restricted Cash and Equivalents) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Description of the Business and Significant Accounting Policies | ||||
Restricted Cash and Cash Equivalents | $ 5.5 | $ 5.9 | $ 5.8 | $ 6.2 |
Restricted Cash and Cash Equivalents, Asset, Statement of Financial Position [Extensible List] | 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 | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Goodwill | ||
Goodwill | $ 452,068 | $ 452,915 |
Steel Operations | ||
Goodwill | ||
Goodwill | 272,133 | 272,133 |
Metals Recycling Operations | ||
Goodwill | ||
Goodwill | 178,010 | 178,857 |
Metals Recycling Operations | OmniSource | ||
Goodwill | ||
Goodwill decrease due to tax benefit related to the normal amortization of the component | 847 | |
Steel Fabrication Operations | ||
Goodwill | ||
Goodwill | $ 1,925 | $ 1,925 |
Description of the Business a_7
Description of the Business and Significant Accounting Policies (Credit Losses) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Description of the Business and Significant Accounting Policies | |
Accounts Receivable, Net | $ 998.4 |
Accounts Receivable, Allowance for Credit Loss | $ 6.9 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share | ||
Antidilutive common share equivalents excluded from computation of earnings per share amount (in shares) | 0 | 0 |
Net Income (Numerator) | ||
Basic earnings per share (in dollars) | $ 187,340 | $ 204,328 |
Diluted earnings per share (in dollars) | $ 187,340 | $ 204,328 |
Weighted Average Shares (Denominator) | ||
Basic earnings per share (in shares) | 213,254,000 | 224,058,000 |
Dilutive common share equivalents (in shares) | 770,000 | 904,000 |
Diluted earnings per share (in shares) | 214,024,000 | 224,962,000 |
Per Share Amount | ||
Basic (in dollars per share) | $ 0.88 | $ 0.91 |
Diluted (in dollars per share) | $ 0.88 | $ 0.91 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Inventories | ||
Raw materials | $ 650,140 | $ 686,831 |
Supplies | 490,401 | 498,298 |
Work in progress | 160,831 | 154,669 |
Finished goods | 343,166 | 349,245 |
Total inventories | $ 1,644,538 | $ 1,689,043 |
Changes in Equity (Rollforward)
Changes in Equity (Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Balances | $ 3,921,241 | $ 3,775,989 |
Dividends declared | (52,585) | (53,504) |
Noncontrolling investors of USS | (7,504) | |
Share repurchases | (106,529) | (84,308) |
Equity-based compensation | 9,429 | 6,695 |
Net income | 190,836 | 204,827 |
Other comprehensive loss, net of tax | 37 | (171) |
Balances | 3,954,925 | 3,849,528 |
Common Stock | ||
Balances | 646 | 645 |
Balances | 646 | 645 |
Treasury Stock | ||
Balances | (1,525,113) | (1,184,243) |
Share repurchases | (106,529) | (84,308) |
Equity-based compensation | 6,834 | 6,714 |
Balances | (1,624,808) | (1,261,837) |
Additional Paid-In Capital | ||
Balances | 1,181,012 | 1,160,048 |
Equity-based compensation | 2,764 | 91 |
Balances | 1,183,776 | 1,160,139 |
Retained Earnings | ||
Balances | 4,419,296 | 3,958,320 |
Dividends declared | (52,585) | (53,504) |
Equity-based compensation | (169) | (110) |
Net income | 187,340 | 204,328 |
Balances | 4,553,882 | 4,109,034 |
AOCI Attributable to Parent [Member] | ||
Balances | (7) | 301 |
Other comprehensive loss, net of tax | 37 | (171) |
Balances | 30 | 130 |
Noncontrolling Interests | ||
Balances | (154,593) | (159,082) |
Noncontrolling investors of USS | (7,504) | |
Net income | 3,496 | 499 |
Balances | (158,601) | (158,583) |
Redeemable Noncontrolling Interest | ||
Balances | 143,614 | 111,240 |
Noncontrolling investors of USS | 28,690 | |
Noncontrolling investors of USS | 7,400 | |
Balances | $ 151,014 | $ 139,930 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Gains or losses on derivative instruments, statement of income | |||
Ineffectiveness - amount of gain (loss) recognized in income on related hedged items | $ (61,000) | $ (1,100,000) | |
Gain (loss) excluded from hedge effectiveness testing | 1,400,000 | (2,200,000) | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 11,000 | 58,000 | |
Net gains (loss) reclassified | (37,000) | $ 283,000 | |
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | $ 39,000 | ||
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 | $ 2,600,000 | $ 3,700,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Notional Amounts of Outstanding Derivative Positions) (Details) - Futures | 3 Months Ended |
Mar. 31, 2020T | |
Aluminum | Long | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 1,425 |
Aluminum | Short | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 4,475 |
Copper | Long | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 8,766 |
Copper | Short | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 13,562 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Commodity futures, asset derivatives | $ 5,394 | $ 1,276 |
Commodity futures, liability derivatives | 5,039 | 1,732 |
Designated as hedging instrument | Commodity contract | Futures | Other current assets | ||
Commodity futures, asset derivatives | 3,283 | 966 |
Commodity futures, liability derivatives | 2,441 | 1,011 |
Not designated as hedging instrument | Commodity contract | Futures | Other current assets | ||
Commodity futures, asset derivatives | 2,111 | 310 |
Commodity futures, liability derivatives | $ 2,598 | $ 721 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Designated as hedging instrument | ||
Amount of gain (loss) recognized in income on derivatives | $ 838 | $ (1,453) |
Amount of gain (loss) recognized in income on related hedged items | 500 | (778) |
Designated as hedging instrument | Firm commitments | ||
Amount of gain (loss) recognized in income on related hedged items | 1,739 | (1,499) |
Designated as hedging instrument | Inventory | ||
Amount of gain (loss) recognized in income on related hedged items | (1,239) | 721 |
Not designated as hedging instrument | ||
Amount of gain (loss) recognized in income on derivatives | $ 10,939 | $ (4,077) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | $ 5,394 | $ 1,276 |
Commodity futures - financial liabilities | 5,039 | 1,732 |
Outstanding Balance | 2,700,000 | 2,800,000 |
Level 2 | ||
Assets and liabilities subject to fair value measurements | ||
Fair value of long-term debt, including current maturities | 2,600,000 | 2,800,000 |
Recurring | ||
Assets and liabilities subject to fair value measurements | ||
Short-term Investments | 219,193 | 262,174 |
Recurring | Level 1 | ||
Assets and liabilities subject to fair value measurements | ||
Short-term Investments | ||
Recurring | Level 2 | ||
Assets and liabilities subject to fair value measurements | ||
Short-term Investments | 219,193 | 262,174 |
Recurring | Level 3 | ||
Assets and liabilities subject to fair value measurements | ||
Short-term Investments | ||
Futures | Recurring | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 5,394 | 1,276 |
Commodity futures - financial liabilities | 5,039 | 1,732 |
Futures | Recurring | Level 1 | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | ||
Commodity futures - financial liabilities | ||
Futures | Recurring | Level 2 | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 5,394 | 1,276 |
Commodity futures - financial liabilities | 5,039 | 1,732 |
Futures | Recurring | Level 3 | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | ||
Commodity futures - financial liabilities |
Segment Information - Results (
Segment Information - Results (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information | |||
Net sales | $ 2,575,100 | $ 2,817,435 | |
Operating income (loss) | 273,686 | 291,842 | |
Income (loss) before income taxes | 248,256 | 267,063 | |
Depreciation and amortization | 80,259 | 80,174 | |
Capital expenditures | 217,535 | 54,436 | |
Assets | 8,344,923 | $ 8,275,765 | |
U.S. | |||
Segment Reporting Information | |||
Net sales | 2,671,893 | ||
Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 145,542 | ||
Operating Segment | Other segments | |||
Segment Reporting Information | |||
Net sales | (411,922) | ||
Operating Segment | U.S. | |||
Segment Reporting Information | |||
Net sales | 2,436,695 | ||
Operating Segment | Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 138,405 | ||
Operating Segment | Steel Operations | |||
Segment Reporting Information | |||
Net sales | 2,016,152 | 2,200,165 | |
Operating income (loss) | 288,394 | 309,078 | |
Income (loss) before income taxes | 273,555 | 293,019 | |
Depreciation and amortization | 62,427 | 62,512 | |
Capital expenditures | 193,273 | 43,676 | |
Assets | 5,458,553 | ||
Operating Segment | Steel Operations | Other segments | |||
Segment Reporting Information | |||
Net sales | 74,446 | 75,595 | |
Operating Segment | Steel Operations | U.S. | |||
Segment Reporting Information | |||
Net sales | 1,860,585 | 2,044,491 | |
Operating Segment | Steel Operations | Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 81,121 | 80,079 | |
Operating Segment | Metals Recycling Operations | |||
Segment Reporting Information | |||
Net sales | 628,739 | 737,045 | |
Operating income (loss) | 5,528 | 16,962 | |
Income (loss) before income taxes | 4,305 | 15,505 | |
Depreciation and amortization | 11,972 | 11,439 | |
Capital expenditures | 18,223 | 6,642 | |
Assets | 918,403 | ||
Operating Segment | Metals Recycling Operations | Other segments | |||
Segment Reporting Information | |||
Net sales | 336,882 | 385,908 | |
Operating Segment | Metals Recycling Operations | U.S. | |||
Segment Reporting Information | |||
Net sales | 234,833 | 285,725 | |
Operating Segment | Metals Recycling Operations | Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 57,024 | 65,412 | |
Operating Segment | Steel Fabrication Operations | |||
Segment Reporting Information | |||
Net sales | 221,441 | 228,669 | |
Operating income (loss) | 29,163 | 20,623 | |
Income (loss) before income taxes | 27,918 | 19,351 | |
Depreciation and amortization | 2,748 | 2,967 | |
Capital expenditures | 4,089 | 1,993 | |
Assets | 405,860 | ||
Operating Segment | Steel Fabrication Operations | Other segments | |||
Segment Reporting Information | |||
Net sales | 506 | 189 | |
Operating Segment | Steel Fabrication Operations | U.S. | |||
Segment Reporting Information | |||
Net sales | 220,935 | 228,429 | |
Operating Segment | Steel Fabrication Operations | Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 51 | ||
Operating Segment | Other | |||
Segment Reporting Information | |||
Net sales | 120,690 | 113,496 | |
Operating income (loss) | (46,355) | (56,920) | |
Income (loss) before income taxes | (54,240) | (62,696) | |
Depreciation and amortization | 3,112 | 3,256 | |
Capital expenditures | 1,950 | 2,125 | |
Assets | 1,619,924 | ||
Operating Segment | Other | Other segments | |||
Segment Reporting Information | |||
Net sales | 88 | 248 | |
Operating Segment | Other | U.S. | |||
Segment Reporting Information | |||
Net sales | 120,342 | 113,248 | |
Operating Segment | Other | Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 260 | ||
Eliminations | |||
Segment Reporting Information | |||
Net sales | (411,922) | (461,940) | |
Operating income (loss) | (3,044) | 2,099 | |
Income (loss) before income taxes | (3,282) | 1,884 | |
Assets | $ (57,817) | ||
Eliminations | Other segments | |||
Segment Reporting Information | |||
Net sales | $ (461,940) |
Segment Information - Results F
Segment Information - Results Footnote (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Operating income (loss) | |||
Corporate SG & A | $ (112,898) | $ (111,038) | |
Profit sharing | (21,454) | (23,677) | |
Operating income (loss) | 273,686 | 291,842 | |
Gross profit | 415,229 | 433,570 | |
Assets | |||
Cash and equivalents | 1,235,478 | $ 1,381,460 | |
Short-term Investments | 219,193 | 262,174 | |
Accounts receivable | 998,400 | ||
Inventories | 1,644,538 | 1,689,043 | |
Property, plant and equipment, net | 3,327,605 | 3,135,886 | |
Other assets | 101,571 | 106,038 | |
Total assets | 8,344,923 | $ 8,275,765 | |
Operating Segment | Other | |||
Operating income (loss) | |||
Corporate SG & A | (17,200) | (22,600) | |
Company-wide equity-based compensation | (8,200) | (9,000) | |
Profit sharing | (21,300) | (23,000) | |
Other, net | 300 | (2,300) | |
Operating income (loss) | (46,355) | (56,920) | |
Assets | |||
Cash and equivalents | 1,169,600 | ||
Short-term Investments | 219,200 | ||
Accounts receivable | 8,600 | ||
Inventories | 21,100 | ||
Property, plant and equipment, net | 148,800 | ||
Intra-company debt | 8,100 | ||
Other assets | 44,500 | ||
Total assets | 1,619,924 | ||
Operating Segment | Metals Recycling Operations | |||
Operating income (loss) | |||
Operating income (loss) | 5,528 | 16,962 | |
Assets | |||
Total assets | 918,403 | ||
Eliminations | |||
Operating income (loss) | |||
Operating income (loss) | (3,044) | 2,099 | |
Gross profit | (3,300) | $ (2,100) | |
Assets | |||
Accounts receivable | (38,600) | ||
Intra-company debt | (8,100) | ||
Other assets | (11,100) | ||
Total assets | $ (57,817) |