Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 17, 2015 | Jun. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | STEEL DYNAMICS INC | ||
Entity Central Index Key | 1022671 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $3,596,627,230 | ||
Entity Common Stock, Shares Outstanding | 241,529,877 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and equivalents | $361,363 | $395,156 |
Accounts receivable, net of related allowances of $12,646 and $11,004 as of December 31, 2014 and 2013, respectively | 859,835 | 664,208 |
Accounts receivable related parties | 42,990 | 56,392 |
Inventories | 1,618,419 | 1,314,747 |
Deferred income taxes | 35,503 | 17,964 |
Other current assets | 55,655 | 25,167 |
Total current assets | 2,973,765 | 2,473,634 |
Property, plant and equipment, net | 3,123,906 | 2,226,134 |
Restricted cash | 19,312 | 23,827 |
Intangible assets, net of accumulated amortization of $241,731 and $215,341 as of December 31, 2014 and 2013, respectively | 370,669 | 386,159 |
Goodwill | 745,158 | 731,996 |
Other assets | 78,217 | 91,256 |
Total assets | 7,311,027 | 5,933,006 |
Current liabilities | ||
Accounts payable | 489,791 | 404,605 |
Accounts payable-related parties | 21,265 | 10,327 |
Income taxes payable | 6,086 | 4,023 |
Accrued payroll and benefits | 128,968 | 93,432 |
Accrued interest | 50,405 | 31,363 |
Accrued expenses | 107,607 | 89,884 |
Current maturities of long-term debt | 46,460 | 341,544 |
Total current liabilities | 850,582 | 975,178 |
Long-term debt | ||
Senior term loan | 237,500 | 220,000 |
Senior notes | 2,700,000 | 1,500,000 |
Other long-term debt | 40,206 | 46,045 |
Total long-term debt | 2,977,706 | 1,766,045 |
Deferred income taxes | 542,033 | 556,038 |
Other liabilities | 18,839 | 23,376 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 126,340 | 116,514 |
Equity | ||
Common stock voting, $.0025 par value; 900,000,000 shares authorized; 261,420,126 and 258,840,350 shares issued; and 241,449,423 and 222,867,408 shares outstanding, as of December 31, 2014 and 2013, respectively | 635 | 645 |
Treasury stock, at cost; 19,970,703 and 35,972,942 shares, as of December 31, 2014, and 2013, respectively | -398,898 | -718,529 |
Additional paid-in capital | 1,083,435 | 1,085,694 |
Retained earnings | 2,227,843 | 2,179,513 |
Total Steel Dynamics, Inc. equity | 2,913,015 | 2,547,323 |
Noncontrolling interests | -117,488 | -51,468 |
Total equity | 2,795,527 | 2,495,855 |
Total liabilities and equity | $7,311,027 | $5,933,006 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, related allowances (in dollars) | $12,646 | $11,004 |
Intangible assets, accumulated amortization (in dollars) | $241,731 | $215,341 |
Common stock voting, par value (in dollars per share) | $0.00 | $0.00 |
Common stock voting, shares authorized (in shares) | 900,000,000 | 900,000,000 |
Common stock voting, shares issued (in shares) | 261,420,126 | 258,840,350 |
Common stock voting, shares outstanding (in shares) | 241,449,423 | 222,867,408 |
Treasury stock, shares (in shares) | 19,970,703 | 35,972,942 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales | |||
Unrelated parties | $8,481,567 | $7,087,101 | $7,007,417 |
Related parties | 274,385 | 285,823 | 282,817 |
Total net sales | 8,755,952 | 7,372,924 | 7,290,234 |
Costs of goods sold | 7,789,741 | 6,653,780 | 6,570,336 |
Gross profit | 966,211 | 719,144 | 719,898 |
Selling, general and administrative expenses | 316,214 | 272,777 | 257,943 |
Profit sharing | 42,126 | 27,764 | 26,987 |
Amortization of intangible assets | 27,551 | 31,770 | 35,553 |
Impairment charges | 260,000 | 308 | 8,250 |
Operating income | 320,320 | 386,525 | 391,165 |
Interest expense, net of capitalized interest | 137,263 | 127,728 | 158,585 |
Other (income) expense, net | 18,254 | -4,033 | 28,514 |
Income before income taxes | 164,803 | 262,830 | 204,066 |
Income taxes | 73,153 | 99,314 | 61,785 |
Net income | 91,650 | 163,516 | 142,281 |
Net loss attributable to noncontrolling interests | 65,374 | 25,798 | 21,270 |
Net income attributable to Steel Dynamics, Inc. | $157,024 | $189,314 | $163,551 |
Basic earnings per share attributable to Steel Dynamics, Inc. stockholders (in dollars per share) | $0.68 | $0.86 | $0.75 |
Weighted average common shares outstanding (in shares) | 232,547 | 220,916 | 219,159 |
Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share) | $0.67 | $0.83 | $0.73 |
Weighted average common shares and share equivalents outstanding (in shares) | 242,078 | 238,996 | 236,624 |
Dividends declared per share (in dollars per share) | $0.46 | $0.44 | $0.40 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Noncontrolling Interest | Redeemable Noncontrolling Interest | Total |
In Thousands, except Share data, unless otherwise specified | |||||||
Balances at Dec. 31, 2011 | $636 | $1,026,157 | $2,011,801 | ($722,653) | ($16,041) | $70,694 | $2,299,900 |
Balances (in shares) at Dec. 31, 2011 | 36,179,000 | ||||||
Balances (in shares) at Dec. 31, 2011 | 218,874,000 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Proceeds from exercise of stock options, including related tax effect (in shares) | 445,000 | ||||||
Proceeds from exercise of stock options, including related tax effect | 1 | 3,661 | 3,662 | ||||
Dividends declared | -87,698 | -87,698 | |||||
Conversion of 5.125% convertible senior notes | -1 | 5 | 4 | ||||
Contributions from noncontrolling investors | 9,839 | 28,120 | 9,839 | ||||
Distributions to noncontrolling investors | -151 | -151 | |||||
Equity-based compensation | 7,870 | -34 | 2,169 | 10,005 | |||
Equity-based compensation (in shares) | 204,000 | -109,000 | |||||
Comprehensive income and net income (loss) | 163,551 | -21,270 | 142,281 | ||||
Balances at Dec. 31, 2012 | 637 | 1,037,687 | 2,087,620 | -720,479 | -27,623 | 98,814 | 2,377,842 |
Balances (in shares) at Dec. 31, 2012 | 36,070,000 | ||||||
Balances (in shares) at Dec. 31, 2012 | 219,523,000 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Proceeds from exercise of stock options, including related tax effect (in shares) | 3,132,000 | ||||||
Proceeds from exercise of stock options, including related tax effect | 8 | 37,660 | -160 | 37,508 | |||
Dividends declared | -97,375 | -97,375 | |||||
Conversion of 5.125% convertible senior notes | 4 | 4 | |||||
Acquisition of noncontrolling interest | -2,232 | 2,232 | |||||
Contributions from noncontrolling investors | 160 | 17,700 | 160 | ||||
Distributions to noncontrolling investors | -439 | -439 | |||||
Equity-based compensation | 12,579 | -46 | 2,106 | 14,639 | |||
Equity-based compensation (in shares) | 212,000 | -97,000 | |||||
Comprehensive income and net income (loss) | 189,314 | -25,798 | 163,516 | ||||
Balances at Dec. 31, 2013 | 645 | 1,085,694 | 2,179,513 | -718,529 | -51,468 | 116,514 | 2,495,855 |
Balances (in shares) at Dec. 31, 2013 | 35,973,000 | 35,972,942 | |||||
Balances (in shares) at Dec. 31, 2013 | 222,867,000 | 222,867,408 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Proceeds from exercise of stock options, including related tax effect (in shares) | 1,770,000 | 8,000 | |||||
Proceeds from exercise of stock options, including related tax effect | 5 | 32,466 | -164 | 32,307 | |||
Dividends declared | -108,630 | -108,630 | |||||
Conversion of 5.125% convertible senior notes | -45,650 | 317,451 | 271,801 | ||||
Conversion of 5.125% convertible senior notes (in shares) | 15,893,000 | -15,893,000 | |||||
Contributions from noncontrolling investors | 97 | 9,826 | 97 | ||||
Distributions to noncontrolling investors | -743 | -743 | |||||
Equity-based compensation | -15 | 10,925 | -64 | 2,344 | 13,190 | ||
Equity-based compensation (in shares) | 919,000 | -117,000 | |||||
Comprehensive income and net income (loss) | 157,024 | -65,374 | 91,650 | ||||
Balances at Dec. 31, 2014 | $635 | $1,083,435 | $2,227,843 | ($398,898) | ($117,488) | $126,340 | $2,795,527 |
Balances (in shares) at Dec. 31, 2014 | 19,971,000 | 19,970,703 | |||||
Balances (in shares) at Dec. 31, 2014 | 241,449,000 | 241,449,423 |
CONSOLIDATED_STATEMENTS_OF_EQU1
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (5.125% convertible senior notes) | Dec. 31, 2014 | Jun. 15, 2014 | Jun. 12, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
5.125% convertible senior notes | |||||
Stated interest rate (as a percent) | 5.13% | 5.13% | 5.13% | 5.13% | 5.13% |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net income | $91,650 | $163,516 | $142,281 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 263,325 | 230,928 | 225,216 |
Impairment charges | 260,000 | 308 | 8,250 |
Equity-based compensation | 14,016 | 15,504 | 12,481 |
Deferred income taxes | -25,042 | 30,737 | 54,528 |
Loss on disposal of property, plant and equipment | 5,561 | 1,082 | 509 |
Changes in certain assets and liabilities: | |||
Accounts receivable | -2,191 | -78,237 | 85,977 |
Inventories | 68,730 | -108,025 | 13,845 |
Other assets | 3,064 | 13,705 | -1,337 |
Accounts payable | -76,141 | 40,141 | -32,593 |
Income taxes receivable/payable | -22,086 | -12,494 | 21,644 |
Accrued expenses | 36,686 | 15,010 | -85,107 |
Net cash provided by operating activities | 617,572 | 312,175 | 445,694 |
Investing activities: | |||
Purchases of property, plant and equipment | -111,785 | -186,843 | -223,525 |
Proceeds from maturities of short-term commercial paper, net | 31,520 | 53,310 | |
Acquisition of business, net of cash acquired | -1,669,449 | ||
Other investing activities | 33,967 | 2,478 | -21,386 |
Net cash used in investing activities | -1,747,267 | -152,845 | -191,601 |
Financing activities: | |||
Issuance of current and long-term debt | 1,822,096 | 423,965 | 1,049,969 |
Repayments of current and long-term debt | -635,578 | -517,978 | -1,258,842 |
Proceeds from exercise of stock options, including related tax effect | 32,307 | 37,508 | 3,662 |
Contributions from noncontrolling investors | 5,418 | 17,860 | 37,959 |
Distributions to noncontrolling investors | -743 | -439 | -151 |
Dividends paid | -105,379 | -94,812 | -87,633 |
Debt issuance costs | -22,219 | -6,195 | -13,901 |
Net cash provided by (used in) financing activities | 1,095,902 | -140,091 | -268,937 |
Increase (decrease) in cash and equivalents | -33,793 | 19,239 | -14,844 |
Cash and equivalents at beginning of year | 395,156 | 375,917 | 390,761 |
Cash and equivalents at end of year | $361,363 | $395,156 | $375,917 |
Description_of_the_Business_an
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Description of the Business and Summary of Significant Accounting Policies | ||||||||||||||||||||
Description of the Business and Summary of Significant Accounting Policies | ||||||||||||||||||||
Note 1. Description of the Business and Summary of Significant Accounting Policies | ||||||||||||||||||||
Description of the Business | ||||||||||||||||||||
Steel Dynamics, Inc. (SDI), together with its subsidiaries (the company), is a domestic manufacturer of steel products and metals recycler. The company has three reporting segments: steel operations, metals recycling and ferrous resources operations, and steel fabrication operations. Approximately 9% of the company's workforce is represented by collective bargaining agreements, and one of these agreements affecting 35 employees at one location expires during 2015. | ||||||||||||||||||||
Steel Operations | ||||||||||||||||||||
Steel operations include the company's Butler Flat Roll Division, Columbus Flat Roll Division (acquired September 16, 2014), The Techs galvanizing lines, Structural and Rail Division, Engineered Bar Products Division, Roanoke Bar Division and Steel of West Virginia. These operations consist of electric arc furnace steel mills, producing steel from ferrous scrap, utilizing continuous casting, automated rolling mills, and eight downstream finishing facilities. Steel operations accounted for 63%, 61%, and 62% of the company's consolidated net sales during 2014, 2013, and 2012, respectively. | ||||||||||||||||||||
The Butler and Columbus Flat Roll Divisions sell a broad range of hot roll, cold roll and coated steel products, including a large variety of specialty products such as light gauge hot roll, galvanized, and painted products. The Techs operates three galvanizing lines specializing in the galvanizing of specific types of flat roll steels in non-automotive applications. The Structural and Rail Division sells structural steel beams, pilings and a variety of rail for the railroad industry. The Engineered Bar Products Division primarily sells special-bar-quality and merchant-bar-quality rounds, round-cornered squares, and smaller diameter engineered bars. The Roanoke Bar Division primarily sells merchant steel products, including angles, plain rounds, flats and channels. Steel of West Virginia primarily sells merchant beams, channels and specialty structural steel sections. The company's steel operations sell directly to end users and service centers. These products are used in numerous industry sectors, including the automotive, construction, commercial, transportation, industrial machinery, pipe and tube, and energy (including OCTG) markets. | ||||||||||||||||||||
Metals Recycling and Ferrous Resources Operations | ||||||||||||||||||||
Metals recycling and ferrous resources operations primarily include OmniSource Corporation (OmniSource), the company's metals recycling and processing locations, ferrous scrap procurement, and our two ironmaking initiatives: Iron Dynamics (IDI), a liquid pig iron production facility; and our Minnesota ironmaking operations, an iron nugget production facility and operations to supply the nugget facility with its primary raw material, iron concentrate. IDI primarily produces liquid pig iron, which is used as a scrap substitute raw material input exclusively at our Butler Flat Roll Division. Our Minnesota ironmaking operations consists of Mesabi Nugget, (owned 82% by us); our iron concentrating and potential future iron mining operations, Mesabi Mining; and our iron tailings operation, Mining Resources (owned 81% by us). See discussion of Minnesota ironmaking operations impairment later in Note 1 under "Impairment of Long-Lived Tangible and Finite-Lived Intangible Assets." Metals recycling ferrous resources operations accounted for 28%, 32%, and 32% of the company's consolidated net sales during 2014, 2013, and 2012, respectively. | ||||||||||||||||||||
Three years subsequent to Mesabi Nugget achieving certain performance measures (which as of December 31, 2014, had not been met), the noncontrolling investor may elect to require the company to purchase at par value all (but not less than all) of the units it owns at the time of such election. At any time after that same date, the company may elect to purchase at par value all of the units owned by the noncontrolling investor. The $111.2 million and $101.4 million par value owned by the noncontrolling investor at December 31, 2014, and 2013, respectively, has been reported as redeemable noncontrolling interest in the consolidated balance sheets. | ||||||||||||||||||||
On the fifth anniversary of the effective date of the formation of Mining Resources (2016), the noncontrolling investor has a non-transferable, non-assignable right to require the company to purchase at fair value all (but not less than all) of the units it owns at that time. The $15.1 million value owned by the noncontrolling investor at December 31, 2014, and 2013, has been reported as redeemable noncontrolling interest in the consolidated balance sheet. | ||||||||||||||||||||
Steel Fabrication Operations | ||||||||||||||||||||
Steel fabrication operations include the company's six New Millennium Building System's joist and deck plants located throughout the United States and Northern Mexico. Revenues from these plants are generated from the fabrication of trusses, girders, steel joists and steel decking used within the non-residential construction industry. Steel fabrication operations accounted for 7%, 6%, and 5% of the company's consolidated net sales during 2014, 2013, and 2012, respectively. | ||||||||||||||||||||
Summary of Significant Accounting Policies | ||||||||||||||||||||
Principles of Consolidation | ||||||||||||||||||||
The consolidated financial statements include the accounts of SDI, together with its wholly and majority-owned or controlled subsidiaries, after elimination of significant intercompany accounts and transactions. Noncontrolling interests represent the noncontrolling owner's proportionate share in the equity, income, or losses of the company's majority-owned or controlled consolidated subsidiaries. | ||||||||||||||||||||
Use of Estimates | ||||||||||||||||||||
These financial statements are prepared in conformity with accounting principles generally accepted in the United States, and accordingly, include amounts that require management to make estimates and assumptions that affect the amounts reported in the financial statements and in the notes thereto. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment, intangible assets and goodwill; valuation allowances for trade receivables, inventories and deferred income tax assets; unrecognized tax benefits; potential environmental liabilities; and litigation claims and settlements. Actual results may differ from these estimates and assumptions. | ||||||||||||||||||||
Revenue Recognition and Allowances for Doubtful Accounts | ||||||||||||||||||||
Except for the steel fabrication operations segment, the company recognizes revenues from sales and the allowance for estimated returns and claims from these sales at the time the title of the product transfers. Provision is made for estimated product returns and customer claims based on historical experience. If the historical data used in the estimates does not reflect future returns and claims trends, additional provision may be necessary. The company's steel fabrication operations segment recognizes revenues from construction contracts utilizing a percentage of completion methodology based on steel tons used on completed units to date as a percentage of estimated total steel tons required for each contract. The allowance for doubtful accounts for all operating segments is based on the company's best estimate of probable credit losses, along with historical experience. | ||||||||||||||||||||
Cash and Equivalents | ||||||||||||||||||||
Cash and equivalents include all highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash is primarily funds held in escrow as required by various insurance and government organizations. | ||||||||||||||||||||
Inventories | ||||||||||||||||||||
Inventories are stated at lower of cost or market. Cost is determined using a weighted average cost method for scrap, and on a first-in, first-out, basis for other inventory. Inventory consisted of the following at December 31 (in thousands): | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Raw materials | $ | 764,883 | $ | 660,384 | ||||||||||||||||
Supplies | 374,599 | 293,533 | ||||||||||||||||||
Work in progress | 128,882 | 84,710 | ||||||||||||||||||
Finished goods | 350,055 | 276,120 | ||||||||||||||||||
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$ | 1,618,419 | $ | 1,314,747 | |||||||||||||||||
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Investments | ||||||||||||||||||||
The company's investments in short-term commercial paper, of which there is none held at December 31, 2014 or 2013, are treated as trading securities. | ||||||||||||||||||||
The company has investments in certain joint ventures and closely-held companies in which ownership varies between 49% and 50%. For these investments where the company does not have effective control, the company accounts for the investment using the equity method of accounting. Investments in companies in which the company does not exercise control and its ownership is less than 20% are carried at cost. These investments are reflected in other long-term assets on the company's balance sheet in an amount of $18.4 million and $17.8 million at December 31, 2014, and 2013, respectively. | ||||||||||||||||||||
Property, Plant and Equipment | ||||||||||||||||||||
Property, plant and equipment are stated at cost, which includes capitalized interest on construction-in-progress amounts, and is reduced by proceeds received from certain state and local government grants and other capital cost reimbursements. The company assigns each fixed asset a useful life ranging from 3 to 20 years for plant, machinery and equipment and 10 to 40 years for buildings and improvements. Repairs and maintenance are expensed as incurred. Depreciation is provided utilizing the straight-line depreciation methodology, or the units-of-production depreciation methodology for certain production related assets, based on units produced, subject to a minimum and maximum level. Depreciation expense was $229.4 million, $192.4 million, and $179.9 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||||||||||
The company's property, plant and equipment at December 31 consisted of the following (in thousands): | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Land and improvements | $ | 334,583 | $ | 293,083 | ||||||||||||||||
Buildings and improvements | 713,837 | 550,226 | ||||||||||||||||||
Plant, machinery and equipment | 3,898,275 | 2,942,684 | ||||||||||||||||||
Construction in progress | 63,344 | 153,821 | ||||||||||||||||||
| | | | | | | | |||||||||||||
5,010,039 | 3,939,814 | |||||||||||||||||||
Less accumulated depreciation | 1,886,133 | 1,713,680 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Property, plant and equipment, net | $ | 3,123,906 | $ | 2,226,134 | ||||||||||||||||
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Intangible Assets | ||||||||||||||||||||
The company's intangible assets, at December 31, consisted of the following (in thousands): | ||||||||||||||||||||
2014 | 2013 | Useful Life | Weighted | |||||||||||||||||
Average | ||||||||||||||||||||
Amortization | ||||||||||||||||||||
Period | ||||||||||||||||||||
Customer and scrap generator relationships | $ | 419,400 | $ | 408,400 | 10 to 25 years | 19 years | ||||||||||||||
Trademarks | 189,800 | 189,800 | Indefinite | — | ||||||||||||||||
Trademarks | 3,200 | 3,200 | 12 years | 12 years | ||||||||||||||||
Other | — | 100 | 5 years | — | ||||||||||||||||
| | | | | | | | | | | ||||||||||
612,400 | 601,500 | 19 years | ||||||||||||||||||
Less accumulated amortization | 241,731 | 215,341 | ||||||||||||||||||
| | | | | | | | | | | ||||||||||
$ | 370,669 | $ | 386,159 | |||||||||||||||||
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The company utilizes an accelerated amortization methodology for customer and scrap generator relationships in order to follow the pattern in which the economic benefits of the amounts are anticipated to be consumed. Finite-lived trademarks are amortized using a straight line methodology. Amortization of intangible assets was $26.4 million, $30.5 million, and $34.3 million for the years ended December 31, 2014, 2013, and 2012, respectively. Estimated amortization expense, related to amortizable intangibles, for the years ending December 31 is as follows (in thousands): | ||||||||||||||||||||
2015 | $ | 24,180 | ||||||||||||||||||
2016 | 21,939 | |||||||||||||||||||
2017 | 19,157 | |||||||||||||||||||
2018 | 16,623 | |||||||||||||||||||
2019 | 15,084 | |||||||||||||||||||
Thereafter | 83,886 | |||||||||||||||||||
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Total | $ | 180,869 | ||||||||||||||||||
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Impairment of Long-Lived Tangible and Finite-Lived Intangible Assets | ||||||||||||||||||||
The company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be fully recoverable. Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amounts. The impairment loss is measured by comparing the fair value of the asset to its carrying amount. We consider various factors and determine whether an impairment test is necessary, including by way of examples, a significant and prolonged deterioration in operating results and/or projected cash flows, significant changes in the extent or manner in which an asset is used, technological advances with respect to assets which would potentially render them obsolete, our strategy and capital planning, and the economic climate in markets to be served. | ||||||||||||||||||||
During the fourth quarter of 2014, the company's Minnesota ironmaking operations reached a steady operating state, indicating a consistency in the operations' production capability, processes and cost structure, including the ability to utilize certain lower-cost raw materials. Given this, the company undertook an assessment of the recoverability of the carrying value of its Minnesota ironmaking operations' fixed assets. With the company's current outlook regarding future operating costs and product pricing, the company concluded that the carrying value of these fixed assets was no longer fully recoverable, and the fixed assets were in fact impaired. This assessment resulted in a $260.0 million impairment charge, including amounts attributable to noncontrolling interests of $46.5 million, recorded in the Metals Recycling and Ferrous Resources operating segment. The carrying values of the impaired assets were adjusted to their estimated fair values as determined primarily on the cost approach, as well as expected future discounted cash flows (an income approach), using Level 3 inputs as provided for under ASC 820. | ||||||||||||||||||||
In the third quarter of 2012, the company determined that it would terminate two small joint venture entities, which were not aligned with the company's long-term strategic focus. The decision to terminate these joint ventures triggered an assessment for impairment based on estimated realizable values, a market approach using Level 3 inputs under ASC 820, resulting in an impairment charge of $8.3 million being recorded in 2012, and further adjustments in 2013 of $308,000. As these joint ventures are not reported within any of the company's reportable segments, reported segment results were not affected. | ||||||||||||||||||||
Goodwill | ||||||||||||||||||||
The company's goodwill is allocated to the following reporting units at December 31, (in thousands): | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
OmniSource—Metals Recycling/Ferrous Resources Segment | $ | 456,727 | $ | 463,247 | ||||||||||||||||
The Techs—Steel Segment | 142,783 | 142,783 | ||||||||||||||||||
Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division—Metals Recycling/Ferrous Resources Segment | 95,000 | 95,000 | ||||||||||||||||||
Roanoke Bar Division—Steel Segment | 29,041 | 29,041 | ||||||||||||||||||
Columbus Flat Roll Division—Steel Segment | 19,682 | — | ||||||||||||||||||
New Millennium Building Systems—Steel Fabrication Segment | 1,925 | 1,925 | ||||||||||||||||||
| | | | | | | | |||||||||||||
$ | 745,158 | $ | 731,996 | |||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
OmniSource goodwill decreased $6.5 million from December 31, 2013, to December 31, 2014, in recognition of the 2014 tax benefit related to the amortization of the component of OmniSource tax-deductible goodwill in excess of book goodwill. | ||||||||||||||||||||
Impairment of Goodwill and Indefinite-Lived Intangible Assets | ||||||||||||||||||||
At least once annually or when indicators of impairment exist, the company performs an impairment test for goodwill and other indefinite-lived intangible assets. Goodwill is allocated to various reporting units, which are generally one level below the company's operating segments. The company utilizes a two-stepped approach to evaluate goodwill impairment. The first step of the test determines if there is potential goodwill impairment. In this step the company compares the fair value of the reporting unit to its carrying amount (which includes goodwill). The fair value of the reporting unit is determined by using an estimate of future cash flows utilizing a risk-adjusted discount rate to calculate the net present value of future cash flows (income approach), and by using a market approach based upon an analysis of valuation metrics of comparable peer companies. If the carrying amount exceeds the fair value, the company performs the second step of the test, which measures the amount of impairment loss to be recorded, if any. In the second step, the company compares the carrying amount of the goodwill to the implied fair value of the goodwill based on the net fair value of the recognized and unrecognized assets and liabilities of the reporting unit to which it is allocated. If the implied fair value is less than the carrying value, an impairment loss is recorded to the extent that the fair value of the goodwill is less than its carrying value. | ||||||||||||||||||||
The company tests indefinite-lived intangible assets for impairment through the comparison of the fair value of the specific intangible asset with its carrying amount. The fair value of the intangible asset is determined by using an estimate of future cash flows attributable to the asset and a risk-adjusted discount rate to compute a net present value of future cash flows. If the fair value is less than the carrying value, an impairment loss is recorded in an amount equal to the excess in carrying value. | ||||||||||||||||||||
Equity-Based Compensation | ||||||||||||||||||||
The company has several stock-based employee compensation plans which are more fully described in Note 6. Compensation expense for restricted stock units, deferred stock units, restricted stock, and performance awards is recorded over the vesting periods using the fair value as determined by the closing fair market value of the company's common stock on the grant date, and with respect to performance awards, an estimate of probability of award achievement during the performance period. Compensation expense for these stock-based employee compensation plans was $22.8 million, $15.2 million, and $9.9 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||||||||||
Income Taxes | ||||||||||||||||||||
The company accounts for income taxes and the related accounts under the liability method. Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted rates expected to be in effect during the year in which the basis differences reverse. | ||||||||||||||||||||
Earnings Per Share | ||||||||||||||||||||
Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company's basic earnings per share. Common share equivalents represent potentially dilutive stock options, restricted stock units, deferred stock units, and dilutive shares related to the company's convertible subordinated debt; and are excluded from the computation in periods in which they have an anti-dilutive effect. There were no anti-dilutive options at December 31, 2014, and 2013. | ||||||||||||||||||||
The following table presents a reconciliation of the numerators and the denominators of the company's basic and diluted earnings per share computations for the years ended December 31 (in thousands, except per share data): | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Net Income | Shares | Per Share | Net Income | Shares | Per Share | |||||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | |||||||||||||||
Basic earnings per share | $ | 157,024 | 232,547 | $ | 0.68 | $ | 189,314 | 220,916 | $ | 0.86 | ||||||||||
Dilutive stock options, deferred stock units, and restricted stock units | — | 1,828 | — | 1,392 | ||||||||||||||||
5.125% convertible senior notes | 4,327 | 7,703 | 9,432 | 16,688 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Diluted earnings per share | $ | 161,351 | 242,078 | $ | 0.67 | $ | 198,746 | 238,996 | $ | 0.83 | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
2012 | ||||||||||||||||||||
Net Loss | Shares | Per Share | ||||||||||||||||||
(Numerator) | (Denominator) | Amount | ||||||||||||||||||
Basic earnings per share | $ | 163,551 | 219,159 | $ | 0.75 | |||||||||||||||
Dilutive stock options and deferred stock units | — | 916 | ||||||||||||||||||
5.125% convertible senior notes | 9,432 | 16,549 | ||||||||||||||||||
| | | | | | | | | | | ||||||||||
Diluted earnings per share | $ | 172,983 | 236,624 | $ | 0.73 | |||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Concentration of Credit Risk | ||||||||||||||||||||
Financial instruments that potentially subject the company to significant concentrations of credit risk principally consist of temporary cash investments, short-term commercial paper, and accounts receivable. The company places its temporary cash and short-term commercial paper investments with high credit quality financial institutions and companies, and limits the amount of credit exposure from any one entity. The company is exposed to credit risk in the event of nonpayment by customers. The company mitigates its exposure to credit risk, which it generally extends initially on an unsecured basis, by performing ongoing credit evaluations and taking further action if necessary, such as requiring letters of credit or other security interests to support the customer receivable. Management's estimation of the allowance for doubtful accounts is based upon known credit risks, historical loss experience and current economic conditions affecting the company's customers. Customer accounts receivable are charged off when all collection efforts have been exhausted and the amounts are deemed uncollectible. Heidtman Steel Products (Heidtman), a related party, accounted for 4% of the company's net accounts receivable at December 31, 2014, and 7% at December 31, 2013. | ||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||
The company recognizes all derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. Changes in the fair value of derivatives that are designated as hedges, depending on the nature of the hedge, are recognized as either an offset against the change in fair value of the hedged balance sheet item in the case of fair value hedges or as other comprehensive income in the case of cash flow hedges, until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value is immediately recognized in earnings. The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements. | ||||||||||||||||||||
In the normal course of business, the company may have involvement with derivative financial instruments related to managing fluctuations in interest rates, foreign exchange rates, and forward contracts in various commodities. At the time of acquiring these financial instruments, the company designates and assigns these instruments as hedges of specific assets, liabilities or anticipated transactions. When hedged assets or liabilities are sold or extinguished, or the anticipated transaction being hedged is no longer expected to occur, the company recognizes the gain or loss on the designated hedged financial instrument. | ||||||||||||||||||||
The company routinely enters into forward contracts in various commodities, primarily nonferrous metals (specifically aluminum, copper, nickel and silver) in our Metals Recycling and Ferrous Resources operations, to reduce exposure to commodity related price fluctuations. The company does not enter into these derivative financial instruments for speculative purposes. | ||||||||||||||||||||
Recently Issued Accounting Standards. | ||||||||||||||||||||
In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition—Revenue from Contracts with Customers, which amends the guidance in former ASC 605, Revenue Recognition. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Because the guidance in ASC 606 is principles-based, it can be applied to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. Additionally, ASC 606 requires additional disclosures to help users of financial statements better understand the nature, amount, timing, and potential uncertainty of revenue that is recognized. The company is currently evaluating the impact of the provisions of ASC 606. | ||||||||||||||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern), effective for annual and interim periods ending after December 15, 2016. ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. There are required disclosures if principal conditions or events are identified that raised substantial doubt about the entity's ability to continue as a going concern (before consideration of management's plans), as well as management's evaluation of the significance of those conditions or events in relation to the entity's ability to meet its obligations, and management's plans that alleviated substantial doubt about the entity's ability to continue as a going concern. This ASU is not expected to have any impact on our overall results of operations, financial position or cash flows. | ||||||||||||||||||||
Acquisition
Acquisition | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Acquisition | ||||||||
Acquisition | ||||||||
Note 2. Acquisition | ||||||||
On September 16, 2014, the company completed its acquisition of 100% of Severstal Columbus, LLC (Columbus), on a debt-free basis, for a purchase price of $1.625 billion, with additional working capital adjustments of $44.4 million. The Columbus acquisition was funded through the issuance of $1.2 billion in Senior Notes (see Note 3), borrowings under the company's senior secured credit facility, and available cash. The company purchased Columbus to significantly expand and diversify its steel operating base with the addition of 3.4 million tons of hot roll steel production capacity. The product offerings are diversified with respect to width, gauge, and strength when compared to the capabilities of our Butler Flat Roll Division. Located in northeast Mississippi, Columbus is one of the newest and most technologically advanced sheet steel electric arc furnace mills in North America, with access to non-energy related pipe and tube, OCTG and automotive markets. Additionally, Columbus is advantageously located to serve the growing markets in the southern U.S. and Mexico, providing the company with geographic diversification and growth opportunities. Columbus' operating results have been reflected in the company's financial statements since September 16, 2014, the effective date of the acquisition, in the steel operations reporting segment. Columbus reported revenues of $638.3 million and $29.8 million pretax income during the September 16, 2014, to December 31, 2014, period, which includes the effect of $26.4 million of purchase accounting related cost of goods sold expenses associated with the step-up in inventory, fixed assets, and intangible assets. In conjunction with the acquisition, the company recognized $25.2 million of acquisition and related costs that are included in other expenses in the consolidated income statement for the year ended December 31, 2014. | ||||||||
The aggregate purchase price was allocated to the opening balance sheet of Columbus at September 16, 2014, based on the fair value of the acquired assets, assumed liabilities, and identifiable intangible assets (in thousands): | ||||||||
Current assets, net of cash acquired | $ | 553,255 | ||||||
Property, plant & equipment | 1,279,714 | |||||||
Intangible assets | 15,000 | |||||||
Goodwill | 19,682 | |||||||
Other assets | 3,875 | |||||||
| | | | | ||||
Total assets acquired | 1,871,526 | |||||||
| | | | | ||||
Liabilities assumed | 202,077 | |||||||
| | | | | ||||
Net assets acquired | $ | 1,669,449 | ||||||
| | | | | ||||
| | | | | ||||
The fair values of inventory were determined on the cost (raw materials) and market (work-in-process and finished goods) approaches, real property on the market and cost approaches, personal property on the cost approach, and identifiable intangible assets on the multi-period excess earnings method (an income approach), in each case using Level 3 inputs as provided for under ASC 820. | ||||||||
Goodwill and intangible assets of $19.7 million and $15.0 million, respectively, were recorded as a result of the acquisition. Goodwill recognized from the acquisition primarily relates to the expected contributions of Columbus to the overall company strategy in addition to the acquired workforce, which are not separable from goodwill. The goodwill is deductible for tax purposes. The identifiable intangible assets related to the acquisition consisted of the following (in thousands): | ||||||||
Amount | Useful Life | |||||||
Customer relationships | $ | 11,000 | 15 years | |||||
Backlogs | 4,000 | 2 months | ||||||
| | | | | | |||
$ | 15,000 | |||||||
| | | | | | |||
| | | | | | |||
The company utilizes an accelerated amortization method so as to follow the pattern in which the economic benefits of the intangible assets are anticipated to be consumed. The related aggregate amortization expense recognized for the year ended December 31, 2014, was $4.4 million; $4.0 million recognized in cost of goods sold related to order backlog, and $400,000 of amortization expense related to the customer relationships. The estimated customer relationships intangible asset amortization expense for the next five years and thereafter follows (in thousands): | ||||||||
2015 | $ | 790 | ||||||
2016 | 1,038 | |||||||
2017 | 964 | |||||||
2018 | 859 | |||||||
2019 | 753 | |||||||
Thereafter | 6,196 | |||||||
| | | | | ||||
Total | $ | 10,600 | ||||||
| | | | | ||||
| | | | | ||||
Unaudited Pro Forma Results | ||||||||
Columbus' operating results have been reflected in the company's financial statements since the effective date of the acquisition, September 16, 2014. The following unaudited pro forma information is presented below as if the Columbus acquisition was completed as of January 1, 2013 (in thousands): | ||||||||
Years Ended December 31, | ||||||||
2014 | 2013 | |||||||
Net Sales | $ | 10,355,774 | $ | 9,193,344 | ||||
Net Income attributable to Steel Dynamics, Inc. | 264,779 | 155,357 | ||||||
The information presented is for information purposes only and is not necessarily indicative of the actual results that would have occurred had the acquisition been consummated at the beginning of the respective period, nor are they necessarily indicative of future operating results of the combined companies under the ownership and management of the company. The 2014 and 2013 pro forma results reflect Columbus operations for the years ended December 31, 2014, and 2013. As the unaudited pro forma information above is presented as if the acquisition had occurred on January 1, 2013, the gross margin reduction related to the step-up in inventory of $19.7 million and backlogs of $4.0 million, and acquisition and related costs of $25.2 million is reflected in 2013, but not in 2014. | ||||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Long-Term Debt | |||||||||||||
Long-Term Debt | |||||||||||||
Note 3. Long-Term Debt | |||||||||||||
The company's borrowings consisted of the following at December 31 (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Senior term loan | $ | 250,000 | $ | 247,500 | |||||||||
5.125% convertible senior notes due 2014 | — | 287,493 | |||||||||||
61/8% senior notes due 2019 | 400,000 | 400,000 | |||||||||||
75/8% senior notes due 2020 | 350,000 | 350,000 | |||||||||||
5.125% senior notes due 2021 | 700,000 | — | |||||||||||
63/8% senior notes due 2022 | 350,000 | 350,000 | |||||||||||
51/4% senior notes due 2023 | 400,000 | 400,000 | |||||||||||
5.500% senior notes due 2024 | 500,000 | — | |||||||||||
Other obligations | 74,166 | 72,596 | |||||||||||
| | | | | | | | ||||||
Total debt | 3,024,166 | 2,107,589 | |||||||||||
Less current maturities | 46,460 | 341,544 | |||||||||||
| | | | | | | | ||||||
Long-term debt | $ | 2,977,706 | $ | 1,766,045 | |||||||||
| | | | | | | | ||||||
| | | | | | | | ||||||
Financing Activity | |||||||||||||
On February 13, 2015, the company announced that it is calling all $350.0 million of its 75/8% senior notes due 2020, at a redemption price (expressed as a percentage of principal amount) of 103.813% on March 16, 2015. The redemption is expected to be funded with available cash, and if necessary, borrowings under the Revolver facility discussed below. As a result of this redemption, the company will record an estimated $16.7 million of expenses related to the call premium and write off of unamortized debt issuance costs in the first quarter of 2015. | |||||||||||||
In November 2014, the company amended, restated and expanded its senior secured credit facility (Facility), increasing the revolving credit facility (Revolver) from the prior $1.1 billion level to a renewed five year $1.2 billion level, and also entering into a new five year $250.0 million term loan facility (Term Loan), both of which mature on November 14, 2019. Subject to certain conditions, the Company also has the ability to increase the Facility size by a minimum of $750 million. The proceeds from the new Term Loan were used to refinance the Company's then existing $226.9 million term loan facility and for general corporate purposes. | |||||||||||||
In September 2014, the company issued $700.0 million of 5.125% Senior Notes due 2021 (2021 Senior Notes) and $500.0 million of 5.500% Senior Notes due 2024 (2024 Senior Notes), combined the Senior Notes. The proceeds from the issuance of the Senior Notes, along with cash on hand and borrowings under the company's then existing senior secured credit facility, were used to fund the September 16, 2014, acquisition of Columbus. | |||||||||||||
In June 2014, holders of $271.8 million principal amount of the company's 5.125% Convertible Senior Notes due June 15, 2014 (the "Notes"), exercised their option to convert the Notes into shares of common stock by the close of business on June 12, 2014, the conversion election deadline. The conversion rate provided under the terms of the Notes was 58.4731 shares of common stock per $1,000 principal amount of Notes, equivalent to a conversion price of approximately $17.10 per share of common stock, resulting in the company issuing a total of 15,893,457 shares of common stock from treasury shares upon conversion of the Notes. The remaining $15.7 million of the outstanding Notes was paid in cash on June 16, 2014. | |||||||||||||
In March 2013, the company issued $400.0 million of 51/4% senior notes due 2023 (2023 Senior Notes), the proceeds of which, along with available cash, was used to fund the March 2013 purchase of $301.7 million (plus accrued interest) of the company's 63/4% senior notes due 2015 (2015 Senior Notes) pursuant to a tender offer; and the April 2013 repayment of the remaining outstanding 2015 Senior Notes due in the principal amount of $198.3 million (plus accrued interest). As a result of the tender offer and repurchase of the 2015 Senior Notes, the company recorded expenses related to tender premiums, unamortized debt issuance costs write-off, and tender expenses of $2.6 million, which are reflected in other expenses in the consolidated statement of income for the year ended December 31, 2013. | |||||||||||||
In 2012, the company tendered, redeemed or extinguished all $700.0 million of its 2012 senior notes and $500.0 million of its 2016 senior notes, and issued new debt in the form of a $275.0 million term loan, $400.0 million 61/8% senior notes due 2019, and $350.0 million 63/8% senior notes due 2022. The refinancing activity during 2012 resulted in the company recording expenses of $40.3 million related to tender and call premiums, write off of unamortized debt issuance costs, loss on early extinguishment of debt, and tender expenses, which are reflected in other expenses in the consolidated statement of income for the year ended December 31, 2012. | |||||||||||||
Senior Secured Credit Facility, due 2019 | |||||||||||||
The company's senior secured credit Facility, which provides a $1.2 billion Revolver, matures November 2019. Subject to certain conditions, the company has the opportunity to increase the Revolver size by at least $750.0 million. The Facility is guaranteed by certain of the company's subsidiaries; and is secured by substantially all of the company's and its wholly-owned subsidiaries' receivables and inventories, and by pledges of all shares of the company's wholly-owned subsidiaries' capital stock. The Revolver is available to fund working capital, capital expenditures, and other general corporate purposes. The company also issued a $250.0 million Term Loan under the Facility which matures on November 14, 2019. Quarterly principal payments under the Term Loan are required to be made in the amount of 1.25% of the original principal amount, with the unpaid principal balance of approximately $190.6 million due on the maturity date. Interest on the Term Loan is based on the Facility's pricing grid (1.78% at December 31, 2014) and is payable quarterly. | |||||||||||||
The Facility pricing grid is adjusted quarterly, and is based on the company's leverage of net debt (as defined in the Facility) to last-twelve-month's (LTM) pro-forma EBITDA (earnings before interest, taxes, depreciation, amortization, and certain other non-cash transactions). The minimum pricing is LIBOR plus 1.00% or Prime, and the maximum pricing is LIBOR plus 2.00% or Prime plus 1.00%. In addition, the company is subject to an unused commitment fee of between 0.225% and 0.375% (based on leverage of net debt to LTM pro-forma EBITDA) which is applied to the unused portion of the Revolver each quarter. | |||||||||||||
The Facility contains financial covenants and other covenants pertaining to the company's ability (which may under certain circumstances be limited) to make capital expenditures; incur indebtedness; permit liens on property; enter into transactions with affiliates; make restricted payments or investments; enter into mergers, acquisitions or consolidations; conduct asset sales; pay dividends or distributions and enter into other specified transactions and activities. The company's ability to borrow funds within the terms of the Revolver is dependent upon its continued compliance with the financial and other covenants. At December 31, 2014, the company had $1.2 billion of availability on the Revolver, $14.5 million of outstanding letters of credit and other obligations which reduce availability, and there were no borrowings outstanding. | |||||||||||||
The financial covenants under the company's Facility state that it must maintain an interest coverage ratio of not less than 2.50:1.00. The company's interest coverage ratio is calculated by dividing its LTM pro-forma EBITDA by its LTM pro-forma gross interest expense less amortization of financing fees. In addition, a net debt (as defined in the Facility) to LTM pro-forma EBITDA (net debt leverage ratio) of not more than 5.00:1.00 must be maintained. If the net debt leverage ratio exceeds 3.50:1:00 at any time, the company's ability to make certain payments as defined in the Facility (which includes cash dividends to stockholders and share purchases, among other things), is limited. At December 31, 2014, the company's interest coverage ratio and net debt leverage ratio were 6.05:1.00 and 2.47:1.00, respectively. The company was therefore in compliance with these covenants at December 31, 2014, and anticipates remaining in compliance during the next twelve months. | |||||||||||||
Senior Unsecured Notes | |||||||||||||
We have six different tranches of senior unsecured notes (Notes) outstanding. These Notes are in equal right of payment with all existing and future senior unsecured indebtedness and are senior in right of payment to all subordinated indebtedness. These Notes contain provisions that allow the company to redeem the senior notes on or after the dates and at redemption prices (expressed as a percentage of principal amount) listed below. Additionally, these Notes generally allow the company to redeem some or all of the Notes by paying a "make-whole" premium any time prior to the dates listed below. The company may redeem up to 35% of each of the Notes at a redemption price and by the dates listed below using the proceeds from the sales of the company's common stock. See the key terms of each of the Notes outstanding below. | |||||||||||||
Issue | 2019 Notes | 2020 Notes | 2021 Notes | 2022 Notes | 2023 Notes | 2024 Notes | |||||||
Outstanding Balance | $400.0 million | $350.0 million | $700.0 million | $350.0 million | $400.0 million | $500.0 million | |||||||
Stated Interest Rate | 61/8% | 75/8% | 5.13% | 63/8% | 51/4% | 5.50% | |||||||
Semi-Annual Interest Payment Dates | February 15 and August 15 | March 15 and September 15 | April 1 and October 1 | February 15 and August 15 | April 15 and October 15 | April 1 and October 1 | |||||||
Equity Redemption Option Price & Date | 106.13% | Expired | 105.13% | 106.38% | 105.25% | 105.50% | |||||||
(8/15/15) | (10/1/17) | (8/15/15) | (4/15/16) | (10/1/17) | |||||||||
"Make-whole" Option Date | 8/15/16 | Not Applicable | 10/1/17 | 8/15/17 | 4/15/18 | 10/1/19 | |||||||
First Call Price & Date | 103.06% | 103.81% | 102.56% | 103.19% | 102.63% | 102.75% | |||||||
(8/15/16) | (3/15/15) | (10/1/17) | (8/15/17) | (4/15/18) | (10/1/19) | ||||||||
Second Call Price & Date | 101.53% | 102.54% | 101.28% | 102.13% | 101.75% | 101.83% | |||||||
(8/15/17) | (3/15/16) | (10/1/18) | (8/15/18) | (4/15/19) | (10/1/20) | ||||||||
Third Call Price & Date | 100.00% | 101.27% | 100.00% | 101.06% | 100.88% | 100.92% | |||||||
(8/15/18) | (3/15/17) | (10/1/19) | (8/15/19) | (4/15/20) | (10/1/21) | ||||||||
Fourth Call Price & Date | — | 100.00% | — | 100.00% | 100.00% | 100.00% | |||||||
(3/15/18) | (8/15/20) | (4/15/21) | (10/1/22) | ||||||||||
Maturity Date | August 15, 2019 | March 15, 2020 | October 1, 2021 | August 15, 2022 | April 15, 2023 | October 1, 2024 | |||||||
Other Secured Obligations | |||||||||||||
Minnesota Economic Development State Loans. Mesabi Nugget has loans from various Minnesota state agencies related to the construction and ultimate operation of the company's Mesabi Nugget project. These loans require monthly principal and interest payments, at a 3.5% interest rate until February 2017, and then changing to 5.0% through maturity in 2027. Amounts due under these loans were $25.7 million and $27.2 million at December 31, 2014, and 2013, respectively. | |||||||||||||
Other. The company has an unsecured electricity transmission facility loan which bears interest at 8.1%, with monthly principal and interest payments required through maturity in 2022. The company has an unused $3.0 million stand-by letter of credit in conjunction with this loan. The outstanding principal balance was $5.4 million and $6.0 million as of December 31, 2014, and 2013, respectively. One of the company's controlled subsidiaries entered into a secured credit agreement in 2012 which provides a revolving variable rate (3.375% at December 31, 2014) credit facility of up to $40.0 million, subject to a borrowing base determined from eligible accounts receivable and inventory. Interest is payable monthly. The outstanding principal balance was $27.8 million and $20.1 million as of December 31, 2014, and 2013, respectively. In 2013, one of the company's controlled subsidiaries entered into financing agreements for certain equipment which bear interest at 6.0%, with monthly principal and interest payments required through maturities in 2027 and 2028. The outstanding principal balance of these agreements was $10.7 and $11.2 million at December 31, 2014, and 2013, respectively. | |||||||||||||
Outstanding Debt Maturities | |||||||||||||
Maturities of outstanding debt as of December 31, 2014, are as follows (in thousands): | |||||||||||||
2015 | $ | 46,460 | |||||||||||
2016 | 16,364 | ||||||||||||
2017 | 15,675 | ||||||||||||
2018 | 15,601 | ||||||||||||
2019 | 603,291 | ||||||||||||
Thereafter | 2,326,775 | ||||||||||||
| | | | | |||||||||
$ | 3,024,166 | ||||||||||||
| | | | | |||||||||
| | | | | |||||||||
The company capitalizes interest on all qualifying construction-in-progress assets. For the years ended December 31, 2014, 2013, and 2012, total interest costs incurred were $139.7 million, $132.3 million, and $160.0 million, respectively, of which $2.5 million, $4.6 million and $1.4 million, respectively, were capitalized. Cash paid for interest was $114.3 million, $129.5 million, and $154.1 million for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Taxes | |||||||||||
Income Taxes | |||||||||||
Note 4. Income Taxes | |||||||||||
The company files a consolidated federal income tax return. Net cash paid for taxes was $120.5 million, $72.4 million and $46.9 million for the years ended December 31, 2014, 2013, and 2012, respectively. The current and deferred federal and state income tax expense (benefit) for the years ended December 31 is as follows (in thousands): | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current income tax expense | $ | 94,312 | $ | 72,599 | $ | 11,334 | |||||
Deferred income tax expense (benefit) | (21,159 | ) | 26,715 | 50,451 | |||||||
| | | | | | | | | | | |
Total income tax expense | $ | 73,153 | $ | 99,314 | $ | 61,785 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
A reconciliation of the statutory tax rates to the actual effective tax rates for the years ended December 31, are as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Statutory federal tax rate | 35 | % | 35 | % | 35 | % | |||||
State income taxes, net of federal benefit | 4.6 | 3.8 | 3.4 | ||||||||
Domestic manufacturing deduction | (4.8 | ) | (2.0 | ) | (2.3 | ) | |||||
Noncontrolling interests | 13.9 | 3.4 | 3.6 | ||||||||
Federal research and development tax credits | (1.5 | ) | (2.5 | ) | — | ||||||
Audit settlements | — | — | (9.6 | ) | |||||||
Other permanent differences | (2.8 | ) | 0.1 | 0.2 | |||||||
| | | | | | | | | | | |
Effective tax rate | 44.4 | % | 37.8 | % | 30.3 | % | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Significant components of the company's deferred tax assets and liabilities at December 31 are as follows (in thousands): | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets | |||||||||||
Accrued expenses and allowances | $ | 22,780 | $ | 23,497 | |||||||
Inventories | 20,546 | 3,621 | |||||||||
Net operating loss carryforwards | 33,347 | 18,690 | |||||||||
Other | 5,571 | 6,238 | |||||||||
| | | | | | | | ||||
Subtotal | 82,244 | 52,046 | |||||||||
Less: valuation allowance | (21,586 | ) | (10,641 | ) | |||||||
| | | | | | | | ||||
Total net deferred tax assets | 60,658 | 41,405 | |||||||||
| | | | | | | | ||||
Deferred tax liabilities | |||||||||||
Property, plant and equipment | (449,939 | ) | (474,088 | ) | |||||||
Intangible assets | (108,840 | ) | (94,936 | ) | |||||||
Other | (8,359 | ) | (10,426 | ) | |||||||
| | | | | | | | ||||
Total deferred tax liabilities | (567,138 | ) | (579,450 | ) | |||||||
| | | | | | | | ||||
Net deferred tax liability | $ | (506,480 | ) | $ | (538,045 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
Certain wholly-owned and controlled subsidiaries of the company file separate federal and state income tax returns. These subsidiaries have generated federal net operating loss carryforwards of $56.3 million which expire in 2032 to 2034, and state net operating loss carryforwards which principally expire in the years 2024 to 2034. Management has considered the scheduled reversal of the deferred tax liabilities, historical taxable losses, projected taxable income and tax planning strategies in determining that it is more likely than not that the some of the deferred tax assets relating to the tax loss carryforwards of the subsidiaries will not be realized. Based on these evaluations, valuation allowances of $21.6 million and $10.6 million have been recorded as of December 31, 2014, and 2013, respectively. | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | |||||||||||
2014 | 2013 | 2012 | |||||||||
Balance at January 1 | $ | 26,564 | $ | 22,245 | $ | 64,555 | |||||
Increases related to current year tax positions | 1,050 | 1,050 | — | ||||||||
Increases related to prior year tax positions | 653 | 3,760 | 741 | ||||||||
Decreases related to prior year tax positions | (2,298 | ) | (491 | ) | (40,741 | ) | |||||
Settlements with taxing authorities | (8,631 | ) | — | (2,310 | ) | ||||||
| | | | | | | | | | | |
Balance at December 31 | $ | 17,338 | $ | 26,564 | $ | 22,245 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Included in the balance of unrecognized tax benefits at December 31, 2014, are potential benefits of $12.5 million that, if recognized, would affect the effective tax rate. The company recognizes interest and penalties related to its tax contingencies on a net-of-tax basis in income tax expense. During the year ended December 31, 2014, the company recognized benefits from the reduction of interest expense of $1.1 million, net of tax. In addition to the unrecognized tax benefits in the table above, the company had $5.5 million accrued for the payment of interest and penalties at December 31, 2014. | |||||||||||
The company files income tax returns in the U.S. federal jurisdiction as well as income tax returns in various state jurisdictions. The Internal Revenue Service (IRS) has completed its examinations of the years 2004 through 2009 and has settled those years with the company. The IRS is currently examining the company's federal income tax returns for the years 2010 and 2011. At this time the company does not believe there will be any significant examination adjustments that would result in a material change to the company's financial position, results of operations or cash flows. It is reasonably possible that the amount of unrecognized tax benefits could change in the next twelve months as a result of these federal income tax audits, and state income tax audits. Based on the current audits in process, the payment of taxes as a result of audit settlements could be in an amount from zero to $8.1 million by the end of 2015. With the exception of the 2010 federal return which is currently under examination, the company is no longer subject to federal, state and local income tax examinations by tax authorities for years ended before 2011. | |||||||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Shareholders' Equity | |
Shareholders' Equity | |
Note 5. Shareholders' Equity | |
Cash Dividends | |
The company declared cash dividends of $108.6 million, or $0.46 per common share, during 2014; $97.4 million, or $0.44 per common share, during 2013; and $87.7 million, or $0.40 per common share, during 2012. The company paid cash dividends of $105.4 million, $94.8 million and $87.6 million during 2014, 2013, and 2012, respectively. | |
Treasury Stock | |
The company's board of directors has authorized the company to repurchase shares of the company's common stock through open market trades. The company did not repurchase any shares during the three-year period ended December 31, 2014. As of December 31, 2014, the company had remaining authorization to repurchase approximately 3.6 million additional shares. The repurchase program does not have an expiration date. | |
Equitybased_Incentive_Plans
Equity-based Incentive Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Equity-based Incentive Plans | ||||||||||||||
Equity-based Incentive Plans | ||||||||||||||
Note 6. Equity-based Incentive Plans | ||||||||||||||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | ||||||||||||||
The 2006 Plan was designed to attract, motivate and retain qualified persons that are able to make important contributions to the company's success. To accomplish these objectives, the 2006 Plan provides for awards of equity-based incentives through granting of stock options, restricted stock units (RSUs), deferred stock units (DSUs), restricted stock awards, unrestricted stock awards, stock appreciation rights, and performance awards. The company's stockholders approved the 2006 Plan in May 2012 and 15.5 additional shares of common stock were reserved for issuance upon exercise of options or other equity grants under the 2006 Plan through December 31, 2015. The 2006 Plan uses a fungible share concept under which any awards that are not a full-value award, such as stock options and stock appreciation rights, will be counted against the share limit as one share for each share of common stock, and awards that are full-value awards, such as RSUs, DSUs, restricted and unrestricted stock awards, and performance awards, will be counted against the share limit as 2.09 shares for each share of common stock. At December 31, 2014, there were 9.6 million shares in the fungible share reserve still available for issuance. | ||||||||||||||
In November 2012, the company began to grant substantially all of the company's employees restricted stock units, rather than stock options. The RSUs, which are granted annually in November at no cost to employees, vest 100% over the shorter of two years from grant date or upon the recipient reaching retirement eligible age (591/2 years), and are issued to employees upon vesting. Prior to 2012, substantially all of the company's employees were eligible for the stock option element of the 2006 Plan, pursuant to which the options vested 100% six months after the date of grant, with a maximum term of five years. Options were granted each May and November (through 2011) at an exercise price of 100% of the fair market value of the company's common stock on the date of grant. The company satisfies stock options and restricted stock units with newly issued shares, and satisfies restricted stock awards, deferred stock units, and performance awards with treasury shares. | ||||||||||||||
Pursuant to the 2006 Plan, the company's Board of Directors adopted the Long-term Incentive Compensation Program (LTIP), a performance-based program directed toward key senior executives of the company, as determined at the discretion of the Compensation Committee of the Board of Directors. Awards are in shares of the company's common stock. Once earned on the basis of performance, one-third of the shares vest immediately and the remaining shares vest equally over an additional two-year service-based vesting period requirement. The performance period is generally three years; however, certain transition awards may be issued with shorter performance periods. Performance is measured in terms of equal portions of revenue growth, operating margin, return on invested capital and return on equity of the company as compared to the same measures, similarly treated, of a pre-established group of steel sector competitors. Awards earned can range from zero to 100% of the specified compensation of the named company executives in the year of award. The Compensation Committee granted the following three-year performance period awards, and one- and two-year performance period transition awards, which have been earned and have or will be issued over the vesting period as follows: | ||||||||||||||
Maximum | Award Earned | Award | ||||||||||||
Shares That | Issued/Issuable | |||||||||||||
Could Be Issued | ||||||||||||||
2012 Award: | ||||||||||||||
One-year performance period transition award | 164,291 | 95,291 | 31,764 | Mar-13 | ||||||||||
31,764 | Mar-14 | |||||||||||||
31,763 | Mar-15 | |||||||||||||
2013 Award: | ||||||||||||||
One-year performance period transition award | 173,319 | 164,653 | 54,885 | Mar-14 | ||||||||||
54,884 | Mar-15 | |||||||||||||
54,884 | Mar-16 | |||||||||||||
Two-year performance period transition award | 173,319 | 159,454 | 53,152 | Mar-15 | ||||||||||
53,151 | Mar-16 | |||||||||||||
53,151 | Mar-17 | |||||||||||||
Three-year performance period award | 173,319 | |||||||||||||
* | * | |||||||||||||
2014 Award: | ||||||||||||||
Three-year performance period award | 269,351 | * | * | |||||||||||
* | Not yet earned as performance period not complete. | |||||||||||||
In addition to the RSUs and stock options granted during the three year period ended December 31, 2014, presented below, the company awarded 54,000, 53,000 and 79,000 DSUs in 2014, 2013 and 2012, respectively. | ||||||||||||||
Restricted Stock Units (RSU) | ||||||||||||||
A summary of the company's RSU activity and outstanding RSUs as of December 31, 2014, are presented below (dollars in thousands except grant date fair value): | ||||||||||||||
Number of | Weighted Average | Aggregate Intrinsic | Unrecognized | |||||||||||
RSUs | Grant | Value | Compensation | |||||||||||
Date Fair Value | ||||||||||||||
Outstanding RSUs as of January 1, 2012 | — | $ | — | |||||||||||
Granted | 1,422,448 | $ | 11.95 | |||||||||||
Vested | (143,666 | ) | $ | 12.65 | ||||||||||
Forfeited | (9,475 | ) | $ | 11.92 | ||||||||||
| | | | | | | | | | | | | | |
As of December 31, 2012 | 1,269,307 | $ | 11.87 | $ | 17,428 | $ | 12,318 | |||||||
Granted | 1,293,140 | $ | 18.16 | |||||||||||
Vested | (170,398 | ) | $ | 17.74 | ||||||||||
Forfeited | (112,406 | ) | $ | 12.48 | ||||||||||
| | | | | | | | | | | | | | |
As of December 31, 2013 | 2,279,643 | $ | 14.97 | $ | 44,544 | $ | 22,197 | |||||||
Granted | 1,121,416 | $ | 21.82 | |||||||||||
Vested | (1,245,489 | ) | $ | 13.2 | ||||||||||
Forfeited | (144,344 | ) | $ | 15.51 | ||||||||||
| | | | | | | | | | | | | | |
As of December 31, 2014 (nonvested) | 2,011,226 | $ | 19.85 | $ | 39,702 | $ | 25,171 | |||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
The weighted average remaining life before vesting of the outstanding RSUs as of December 31, 2014, is 1.4 years. The fair value of RSUs vesting during 2014, 2013, and 2012 was $24.6 million, $3.3 million, and $1.8 million, respectively, and was net-share settled such that the company withheld shares with value equivalent to the employees' minimum statutory obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. The total shares withheld in 2014, 2013, and 2012 were approximately 444,000, 63,000, and 49,000 shares, respectively, and were based on the value of the RSUs on their vesting dates as determined by the company's closing stock price. | ||||||||||||||
Stock Options | ||||||||||||||
A summary of the company's stock option activity and certain information concerning the company's outstanding options as of December 31, 2014, are presented below. There were no stock options granted in 2012, 2013, or 2014. | ||||||||||||||
Number of | Weighted Average | Weighted Average | ||||||||||||
Options | Exercise Price | Grant Date | ||||||||||||
Fair Value | ||||||||||||||
Outstanding options as of January 1, 2012 | 8,602,282 | $ | 15.06 | $ | 5.25 | |||||||||
Exercised | (451,135 | ) | $ | 6.7 | $ | 2.67 | ||||||||
Forfeited | (1,077,438 | ) | $ | 21.85 | $ | 6.04 | ||||||||
| | | | | | | | | | | ||||
As of December 31, 2012 | 7,073,709 | $ | 14.56 | $ | 5.3 | |||||||||
Exercised | (3,134,953 | ) | $ | 11.02 | $ | 4.19 | ||||||||
Forfeited | (681,586 | ) | $ | 29.52 | $ | 9.01 | ||||||||
| | | | | | | | | | | ||||
As of December 31, 2013 | 3,257,170 | $ | 14.84 | $ | 5.58 | |||||||||
Exercised | (1,773,872 | ) | $ | 15.01 | $ | 5.57 | ||||||||
Forfeited | (84,783 | ) | $ | 14.98 | $ | 5.45 | ||||||||
| | | | | | | | | | | ||||
As of December 31, 2014 | 1,398,515 | $ | 14.62 | $ | 5.61 | |||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Range of Exercise Price | Exercisable | Weighted Average | Weighted Average Exercise | |||||||||||
Outstanding | Remaining | Price of Exercisable | ||||||||||||
Options | Contractual Life | Outstanding | ||||||||||||
(Years) | Options | |||||||||||||
$10 to $15 | 731,256 | 1.29 | $ | 12.95 | ||||||||||
$15 to $20 | 667,259 | 1.15 | $ | 16.46 | ||||||||||
| | | | | | | | | | | ||||
1,398,515 | ||||||||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
The aggregate intrinsic value of options exercised was $9.3 million, $18.7 million, and $3.1 million for the years ended December 31, 2014, 2013, and 2012, respectively. The aggregate intrinsic value of options which were outstanding and exercisable as of December 31, 2014, was $7.2 million, and there is no unrecognized stock option compensation expense at December 31, 2014. | ||||||||||||||
2013 Executive Incentive Compensation Plan (Executive Plan) | ||||||||||||||
Pursuant to the company's existing Executive Plan, certain officers and other senior management members of the company are eligible to receive cash bonuses based on predetermined formulas. In the event the cash portion of the bonus exceeds the predetermined maximum cash payout, the excess bonus up to a fixed percentage of base salary is distributed as common stock of the company, of which one-third of the shares vest immediately and the remaining shares vest equally over an additional two-year service-based vesting period requirement. A total of 2.5 million shares have been reserved under this plan, which was amended, and approved by stockholders, during 2013. At December 31, 2014, 2.3 million shares under the Executive Plan remained available for issuance. Pursuant to the Executive Plan, 221,900 shares were awarded with a market value of approximately $3.8 million for the award year 2014, 9,500 shares were awarded with a market value of $157,000 for the award year 2013, and 8,900 shares were awarded with a market value of $135,000 for the award year 2012. | ||||||||||||||
2014 Employee Stock Purchase Plan | ||||||||||||||
The 2014 Employee Stock Purchase Plan allows eligible employees, at their election, to purchase shares of the company's stock on the open market at fair market value with a designated broker through payroll deductions. The maximum allowable payroll deduction for the plan, excluding company matching contributions, is $10,400 in any calendar year. The company provides matching contributions of 10% of employees' payroll deductions. The company's total expense for the plan was $376,000, $354,000, and $354,000 for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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 interest rate risk, foreign currency exchange rate risk, and commodity margin risk. The company routinely enters into forward exchange traded futures and option contracts to manage the price risk associated with nonferrous metals inventory as well as purchases and sales of nonferrous metals (specifically aluminum, copper, nickel and silver). The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements. The company began to designate certain of its nonferrous metals forward exchange futures contracts as fair value hedges of inventory and firm sales commitments in January 2013. | ||||||||||||||||
Commodity futures contracts. If the company is "long" on futures contracts, it means the company has more futures contracts purchased than futures contracts sold for the underlying commodity. If the company is "short" on a futures contract, it means the company has more futures contracts sold than futures contracts purchased for the underlying commodity. The following summarizes the company's commodity futures contract commitments as of December 31, 2014 (MT represents metric tons and Lbs represents pounds): | ||||||||||||||||
Commodity | Long/Short | Total | ||||||||||||||
Aluminum | Long | 3,700 | MT | |||||||||||||
Aluminum | Short | 5,025 | MT | |||||||||||||
Copper | Long | 3,611 | MT | |||||||||||||
Copper | Short | 15,733 | MT | |||||||||||||
Silver | Short | 343 | Lbs | |||||||||||||
The following summarizes the location and amounts of the fair values reported on the company's balance sheets and gains or losses related to derivatives included in the company's statements of income as of and for the years ended December 31 (in thousands): | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
Fair Value | Fair Value | |||||||||||||||
Balance sheet | December 31, | December 31, | December 31, | December 31, | ||||||||||||
location | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Derivative instruments designated as fair value hedges— | ||||||||||||||||
Commodity futures | Other current assets | $ | 3,180 | $ | 658 | $ | 913 | $ | 1,886 | |||||||
Derivative instruments not designated as hedges— | ||||||||||||||||
Commodity futures | Other current assets | $ | 2,132 | $ | 352 | $ | 626 | $ | 2,601 | |||||||
| | | | | | | | | | | | | | | | |
Total derivative instruments | $ | 5,312 | $ | 1,010 | $ | 1,539 | $ | 4,487 | ||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements, which total $7.6 million and $3.6 million at December 31, 2014, and 2013, respectively, are reflected in other current assets in the consolidated balance sheet. | ||||||||||||||||
Location of gain | Amount of | Hedged items in | Location of gain (loss) | Amount of | ||||||||||||
recognized in | gain | fair value hedge | recognized in income | gain (loss) | ||||||||||||
income on | recognized in | relationships | on related hedged item | recognized in | ||||||||||||
derivatives | income on | income on | ||||||||||||||
derivatives | related hedged | |||||||||||||||
for the year | items for the | |||||||||||||||
ended | year ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2014 | |||||||||||||||
Derivatives in fair value hedging relationships— | ||||||||||||||||
Commodity futures | Costs of goods sold | $ | 2,778 | Firm commitments | Costs of goods sold | $ | 1,488 | |||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Inventory | Costs of goods sold | (3,411 | ) | |||||||||||||
| | | | | | | | | | | | | | |||
$ | (1,923 | ) | ||||||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Derivatives not designated as hedging instruments— | ||||||||||||||||
Commodity futures | Costs of goods sold | $ | 14,988 | |||||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Location of gain | Amount of | Hedged items in | Location of gain (loss) | Amount of | ||||||||||||
recognized in | gain | fair value hedge | recognized in income | gain (loss) | ||||||||||||
income on | recognized in | relationships | on related hedged item | recognized in | ||||||||||||
derivatives | income on | income on | ||||||||||||||
derivatives | related hedged | |||||||||||||||
for the year | items for the | |||||||||||||||
ended | year ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2013 | |||||||||||||||
Derivatives in fair value hedging relationships— | ||||||||||||||||
Commodity futures | Costs of goods sold | $ | 7,509 | Firm commitments | Costs of goods sold | $ | 120 | |||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Inventory | Costs of goods sold | (7,437 | ) | |||||||||||||
| | | | | | | | | | | | | | |||
$ | (7,317 | ) | ||||||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Derivatives not designated as hedging instruments— | ||||||||||||||||
Commodity futures | Costs of goods sold | $ | 2,097 | |||||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Location of loss | Amount of loss | |||||||||||||||
recognized in income | recognized in income | |||||||||||||||
on derivatives | on derivatives for | |||||||||||||||
the years ended | ||||||||||||||||
December 31, 2012 | ||||||||||||||||
Derivatives not designated as hedging instruments— | ||||||||||||||||
Commodity futures | Costs of goods sold | $ | (892 | ) | ||||||||||||
| | | | | | | ||||||||||
| | | | | | | ||||||||||
Derivatives accounted for as fair value hedges had ineffectiveness resulting in a gain of $206,000 and a loss of $206,000 for the years ended December 31, 2014, and 2013, respectively; and gains excluded from hedge effectiveness testing of $649,000 and $398,000 that reduced costs of goods sold for the years ended December 31, 2014, and 2013, respectively. | ||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Fair Value Measurements | Note 8. Fair Value Measurements | |||||||||||||
FASB accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. Levels within the hierarchy are defined as follows: | ||||||||||||||
• | Level 1—Unadjusted quoted prices for identical assets and liabilities in active markets; | |||||||||||||
• | Level 2—Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable for the asset or liability, either directly or indirectly; and | |||||||||||||
• | Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||||||||||
The following table sets forth financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheet and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of December 31 (in thousands): | ||||||||||||||
Total | Quoted Prices | Significant | Significant | |||||||||||
in Active | Other | Unobservable | ||||||||||||
Markets for | Observable | Inputs | ||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
2014 | ||||||||||||||
Commodity futures—financial assets | $ | 5,312 | $ | — | $ | 5,312 | $ | — | ||||||
Commodity futures—financial liabilities | 1,539 | — | 1,539 | — | ||||||||||
2013 | ||||||||||||||
Commodity futures—financial assets | $ | 1,010 | $ | — | $ | 1,010 | $ | — | ||||||
Commodity futures—financial liabilities | 4,487 | — | 4,487 | — | ||||||||||
The carrying amounts of financial instruments including cash and equivalents approximate fair value. The fair values of short-term commercial paper and commodity futures contracts are estimated by the use of quoted market prices, estimates obtained from brokers, and other appropriate valuation techniques based on references available. The fair value of long-term debt, including current maturities, as determined by quoted market prices (Level 2), was approximately $3.1 billion and $2.3 billion (with a corresponding carrying amount in the consolidated balance sheet of $3.0 billion and $2.1 billion) at December 31, 2014, and 2013, respectively. | ||||||||||||||
Refer to Note 1 and Note 2, respectively, for discussion of the long-lived assets measured at fair value as a result of an impairment and assets recognized at fair value as a result of the business combination. | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies | |||||
Commitments and Contingencies | |||||
Note 9. Commitments and Contingencies | |||||
The company has entered into certain commitments with suppliers which are of a customary nature. Commitments have been entered into relating to future expected requirements for such commodities as electricity, natural gas and its transportation services, fuel, air products, and zinc. Certain commitments contain provisions which require that the company "take or pay" for specified quantities at fixed prices without regard to actual usage for periods of up to 30 months for physical commodity requirements, for up to 5 years for commodity transportation requirements, and for up to 14 years for air products. The company utilized such "take or pay" requirements during the past three years under these contracts. The company believes that production requirements will be such that consumption of the products or services purchased under these commitments will occur in the normal production process. | |||||
The company's commitments for these agreements with "take or pay" or other similar commitment provisions for the years ending December 31, as follows (in thousands): | |||||
2015 | $ | 174,711 | |||
2016 | 49,177 | ||||
2017 | 20,669 | ||||
2018 | 18,658 | ||||
2019 | 19,829 | ||||
Thereafter | 83,699 | ||||
| | | | | |
$ | 366,743 | ||||
| | | | | |
| | | | | |
The company purchases its electricity consumed at its Butler Flat Roll Division pursuant to a contract which extends through December 2015, and designates 160 hours annually as "interruptible service." The contract also establishes an agreed fixed-rate energy charge per Mill/kWh consumed for each year through the expiration of the agreement. | |||||
At December 31, 2014, the company has outstanding commitments of $24.4 million related to ongoing construction of property, plant, and equipment related primarily to steel operations. The company's commitments for operating leases are discussed in Note 12. | |||||
The company is involved 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. | |||||
The company is involved, along with other steel manufacturing companies, in several class action antitrust complaints filed in federal court in Chicago, Illinois, which allege a conspiracy to fix, raise, maintain and stabilize the price at which steel products were sold in the United States during a period between 2005 and 2007, by artificially restricting the supply of such steel products. One of the complaints were brought on behalf of a purported class consisting of all direct purchasers of steel products. A second complaint was brought on behalf of a purported class consisting of all indirect purchasers of steel products within the same time period. An additional complaint was brought in December 2010, on behalf of indirect purchasers of steel products in Tennessee and has been consolidated with the original complaints. All complaints seek treble damages and costs, including reasonable attorney fees, pre- and post-judgment interest and injunctive relief. Plaintiffs filed a Motion for Class Certification in May 2012, and on February 28, 2013, Defendants filed their Joint Memorandum in Opposition to Plaintiffs' Motion for Class Certification. A hearing on class certification was held on March 5-7 and April 11, 2014, and the matter remains under advisement. It's unclear when the court will issue its ruling. | |||||
Due to the uncertain nature of litigation, the company cannot presently determine the ultimate outcome of this litigation. However, we have determined, based on the information available at this time, that there is not presently a "reasonable possibility" (as that term is defined in ASC 450-20-20), that the outcome of these legal proceedings would have a material impact on our financial condition, results of operations, or liquidity. Although not presently necessary or appropriate to make a dollar estimate of exposure to loss, if any, in connection with the above matter, we may in the future determine that a loss accrual is necessary. Although we may make loss accruals, if and as warranted, any amounts that we may accrue from time to time could vary significantly from the amounts we actually pay, due to inherent uncertainties and the inherent shortcomings of the estimation process, the uncertainties involved in litigation and other factors. Additionally, an adverse result could have a material effect on our financial condition, results of operations and liquidity. | |||||
Transactions_with_Affiliated_C
Transactions with Affiliated Companies | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Transactions with Affiliated Companies | |||||||||||
Transactions with Affiliated Companies | |||||||||||
Note 10. Transactions with Affiliated Companies | |||||||||||
The company sells flat roll products and occasionally purchases ferrous materials from Heidtman. The president and chief executive officer of Heidtman is a member of the company's board of directors and a stockholder of the company. Transactions with Heidtman for the years ended December 31, are as follows (in thousands): | |||||||||||
2014 | 2013 | 2012 | |||||||||
Sales | $ | 234,608 | $ | 236,075 | $ | 244,531 | |||||
Percentage of consolidated net sales | 3 | % | 3 | % | 3 | % | |||||
Accounts receivable | 35,447 | 51,760 | 38,093 | ||||||||
Purchases | 7,639 | 5,562 | 11,372 | ||||||||
Accounts payable | 236 | 391 | 800 | ||||||||
On September 15, 2009, the company purchased from Heidtman a 32 acre tract of land adjacent to the company's Flat Roll Division, together with a 387,000 square foot building for a purchase price of $9.3 million. Contemporaneously the company purchased from Heidtman equipment located at this site for a purchase price of $18.6 million. Immediately following the acquisition of this property, the company leased the real estate and equipment back to Heidtman for a term of five years, which the company accounted for as a direct financing lease. Heidtman used the real estate and equipment in its steel processing operations, paying the company monthly rental of approximately $289,000. At any time during the lease term, Heidtman had the option to repurchase the real estate and equipment for $27.9 million, which they exercised in January 2014, satisfying the $27.9 million direct financing lease receivable, which was reflected in other non-current assets in the company's December 31, 2013, balance sheet. | |||||||||||
The company also purchases and sells recycled and scrap metal with other smaller affiliated companies. These transactions are as follows (in thousands): | |||||||||||
2014 | 2013 | 2012 | |||||||||
Sales | $ | 39,777 | $ | 49,748 | $ | 38,286 | |||||
Accounts receivable | 7,543 | 4,632 | 4,771 | ||||||||
Purchases | 279,177 | 111,048 | 238,114 | ||||||||
Accounts payable | 21,029 | 9,936 | 14,344 | ||||||||
Retirement_Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2014 | |
Retirement Plans | |
Retirement Plans | |
Note 11. Retirement Plans | |
The company sponsors several 401(k) retirement savings and profit sharing plans (Plans) for eligible employees, which are considered "qualified plans" for federal income tax purposes. The company's total expense for the Plans was $39.4 million, $25.2 million, and $22.9 million for the years ended December 31, 2014, 2013, and 2012, respectively. In 2014 and 2013, the company's profit sharing component is 8% of consolidated pretax income excluding noncontrolling interests and other items. Prior to 2013, the company's profit sharing component consisted of 2% of consolidated pretax earnings plus a unique percentage of each of the company's operating segments' pretax earnings after allocation of certain corporate expenses. The resulting company profit sharing component was $36.3 million, $23.1 million, and $20.5 million for the years ended December 31, 2014, 2013, and 2012, respectively; of which $29.0 million, $18.5 million, and $14.3 million, respectively, was directed by the company's board of directors to be contributed to the Plans, with the remaining amounts each year paid directly in cash to the Plans' participants. | |
Leases
Leases | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases | |||||
Leases | |||||
Note 12. Leases | |||||
The company has operating leases relating principally to transportation and other equipment and real estate. Certain leases include escalation clauses and/or purchase options. The company paid $16.0 million, $13.5 million, and $14.8 million for operating leases for the years ended December 31, 2014, 2013, and 2012, respectively. At December 31, 2014, future minimum payments for all non-cancelable operating leases with an initial or remaining term of one year or more are as follows (in thousands): | |||||
2015 | $ | 10,465 | |||
2016 | 7,824 | ||||
2017 | 5,059 | ||||
2018 | 4,743 | ||||
2019 | 4,204 | ||||
Thereafter | 8,294 | ||||
| | | | | |
$ | 40,589 | ||||
| | | | | |
| | | | | |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Information | ||||||||||||||||||||
Segment Information | ||||||||||||||||||||
Note 13. Segment Information | ||||||||||||||||||||
The company has three reportable segments: steel operations, metals recycling and ferrous resources operations, and steel fabrication operations. Columbus is reported in the steel operations reporting segment from its September 16, 2014, acquisition date. These operations are described in Note 1 to the financial statements. Revenues included in the category "Other" are from subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of further processing, slitting, and sale of certain steel products and the resale of certain secondary and excess steel products. In addition, "Other" also includes certain unallocated corporate accounts, such as the company's senior secured credit facility, senior notes, convertible senior notes, certain other investments and certain profit sharing expenses. | ||||||||||||||||||||
The company's operations are primarily organized and managed by operating segment. Operating segment performance and resource allocations are primarily based on operating results before income taxes. The accounting policies of the reportable segments are consistent with those described in Note 1 to the financial statements. Intra-segment sales and any related profits are eliminated in consolidation. | ||||||||||||||||||||
The company's segment results for the years ended December 31, are as follows (in thousands): | ||||||||||||||||||||
For the Year Ended December 31, 2014 | Steel | Metals | Steel | Other | Eliminations | Consolidated | ||||||||||||||
Operations | Recycling / | Fabrication | ||||||||||||||||||
Ferrous | Operations | |||||||||||||||||||
Resources | ||||||||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 5,300,762 | $ | 2,246,069 | $ | 631,750 | $ | 94,377 | $ | — | $ | 8,272,958 | ||||||||
External Non-U.S. | 240,981 | 240,900 | — | 1,113 | — | 482,994 | ||||||||||||||
Other segments | 279,835 | 1,282,272 | 58 | 27,496 | (1,589,661 | ) | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
5,821,578 | 3,769,241 | 631,808 | 122,986 | (1,589,661 | ) | 8,755,952 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | 671,607 | -308,730 | -7 | 51,894 | -98,879 | -1 | 4,428 | -2 | 320,320 | |||||||||||
Income (loss) before income taxes | 602,651 | -335,974 | -7 | 45,376 | -151,678 | -8 | 4,428 | 164,803 | ||||||||||||
Depreciation and amortization | 139,761 | 108,743 | 9,712 | 5,313 | (204 | ) | 263,325 | |||||||||||||
Capital expenditures | 61,426 | 46,374 | 3,027 | 958 | — | 111,785 | ||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
Assets | 4,406,402 | 2,169,902 | 301,316 | 639,844 | -3 | -206,437 | -4 | 7,311,027 | ||||||||||||
Liabilities | 768,047 | 574,850 | 42,234 | 3,200,497 | -5 | -196,468 | -6 | 4,389,160 | ||||||||||||
Footnotes related to the year ended December 31, 2014 segment results (in millions): | ||||||||||||||||||||
-1 | Corporate SG&A | $ | (42.0 | ) | -2 | Gross profit increase from intra-company sales | $ | 4.4 | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Company-wide equity-based compensation | (22.8 | ) | ||||||||||||||||||
Profit sharing | (36.3 | ) | ||||||||||||||||||
Other, net | 2.2 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | (98.9 | ) | ||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
267.8 | (60.3 | |||||||||||||||||||
-3 | Cash and equivalents | $ | -4 | Elimination of intra-company receivables | $ | ) | ||||||||||||||
Accounts receivable | 10 | Elimination of intra-company debt | (137.1 | ) | ||||||||||||||||
Inventories | 21 | Other | (9.0 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Deferred income taxes | 35.4 | $ | (206.4 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Property, plant and equipment, net | 68.9 | |||||||||||||||||||
Debt issuance costs | 42 | |||||||||||||||||||
Intra-company debt | 137.1 | |||||||||||||||||||
Other | 57.6 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 639.8 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
50.7 | (60.8 | |||||||||||||||||||
-5 | Accounts payable | $ | -6 | Elimination of intra-company payables | $ | ) | ||||||||||||||
Income taxes payable | 6.1 | Elimination of intra-company debt | (137.1 | ) | ||||||||||||||||
Accrued interest | 50.2 | Other | 1.4 | |||||||||||||||||
| | | | | | | | | | | | | | |||||||
Accrued profit sharing | 36.8 | $ | (196.5 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Debt | 2,953.30 | |||||||||||||||||||
Deferred income taxes | 71.4 | |||||||||||||||||||
Other | 32 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 3,200.50 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
-7 | Includes $260.0 million of impairment charges associated with the Minnesota ironmaking operations. | -8 | Includes $25.2 million of acquisition and bridge financing costs associated with the acquisition of Columbus. | |||||||||||||||||
For the Year Ended December 31, 2013 | Steel | Metals | Steel | Other | Eliminations | Consolidated | ||||||||||||||
Operations | Recycling / | Fabrication | ||||||||||||||||||
Ferrous | Operations | |||||||||||||||||||
Resources | ||||||||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 4,256,077 | $ | 2,173,863 | $ | 438,254 | $ | 87,532 | $ | — | $ | 6,955,726 | ||||||||
External Non-U.S. | 205,380 | 210,978 | — | 840 | — | 417,198 | ||||||||||||||
Other segments | 223,713 | 1,173,878 | 1,401 | 26,954 | (1,425,946 | ) | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
4,685,170 | 3,558,719 | 439,655 | 115,326 | (1,425,946 | ) | 7,372,924 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | 504,384 | (52,468 | ) | 7,003 | -71,446 | -1 | -948 | -2 | 386,525 | |||||||||||
Income (loss) before income taxes | 449,405 | (84,826 | ) | 827 | (101,628 | ) | (948 | ) | 262,830 | |||||||||||
Depreciation and amortization | 106,603 | 109,847 | 8,736 | 5,946 | (204 | ) | 230,928 | |||||||||||||
Capital expenditures | 121,835 | 60,678 | 2,166 | 2,164 | — | 186,843 | ||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Assets | 2,642,866 | 2,549,626 | 270,215 | 686,594 | -3 | -216,295 | -4 | 5,933,006 | ||||||||||||
Liabilities | 563,924 | 588,232 | 22,704 | 2,349,722 | -5 | -203,945 | -6 | 3,320,637 | ||||||||||||
Footnotes related to the twelve months ended December 31, 2013 segment results (in millions): | ||||||||||||||||||||
-1 | Corporate SG&A | $ | (37.3 | ) | -2 | Gross profit decrease from intra-company sales | $ | (0.9 | ) | |||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Company-wide equity-based compensation | (13.9 | ) | ||||||||||||||||||
Profit sharing | (23.1 | ) | ||||||||||||||||||
Other, net | 2.9 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | (71.4 | ) | ||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
325.7 | (43.5 | |||||||||||||||||||
-3 | Cash and equivalents | $ | -4 | Elimination of intra-company receivables | $ | ) | ||||||||||||||
Accounts receivable | 8.5 | Elimination of intra-company debt | (159.3 | ) | ||||||||||||||||
Inventories | 10.4 | Other | (13.5 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Deferred income taxes | 23.2 | $ | (216.3 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Property, plant and equipment, net | 72.5 | |||||||||||||||||||
Debt issuance costs | 26 | |||||||||||||||||||
Intra-company debt | 159.3 | |||||||||||||||||||
Other | 61 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 686.6 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
36.3 | (43.9 | |||||||||||||||||||
-5 | Accounts payable | $ | -6 | Elimination of intra-company payables | $ | ) | ||||||||||||||
Income taxes payable | 4 | Elimination of intra-company debt | (159.3 | ) | ||||||||||||||||
Accrued interest | 31.2 | Other | (0.8 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Accrued profit sharing | 23.4 | $ | (204.0 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Debt | 2,038.30 | |||||||||||||||||||
Deferred income taxes | 190.2 | |||||||||||||||||||
Other | 26.3 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 2,349.70 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
For the Year Ended December 31, 2012 | Steel | Metals | Steel | Other | Eliminations | Consolidated | ||||||||||||||
Operations | Recycling / | Fabrication | ||||||||||||||||||
Ferrous | Operations | |||||||||||||||||||
Resources | ||||||||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 4,294,437 | $ | 2,116,537 | $ | 371,084 | $ | 69,307 | $ | — | $ | 6,851,365 | ||||||||
External Non-U.S. | 212,351 | 226,061 | — | 457 | — | 438,869 | ||||||||||||||
Other segments | 194,320 | 1,269,198 | 322 | 17,698 | (1,481,538 | ) | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
4,701,108 | 3,611,796 | 371,406 | 87,462 | (1,481,538 | ) | 7,290,234 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | 495,640 | (36,508 | ) | 2,114 | -66,829 | -1 | -3,252 | -2 | 391,165 | |||||||||||
Income (loss) before income taxes | 425,509 | (70,433 | ) | (4,580 | ) | (143,178 | ) | (3,252 | ) | 204,066 | ||||||||||
Depreciation and amortization | 104,222 | 103,993 | 8,025 | 9,180 | (204 | ) | 225,216 | |||||||||||||
Capital expenditures | 55,786 | 159,768 | 5,735 | 2,236 | — | 223,525 | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||
Assets | 2,485,235 | 2,568,233 | 242,747 | 714,069 | -3 | -194,868 | -4 | 5,815,416 | ||||||||||||
Liabilities | 525,351 | 484,017 | 15,983 | 2,497,750 | -5 | -184,341 | -6 | 3,338,760 | ||||||||||||
Footnotes related to the twelve months ended December 31, 2012 segment results (in millions): | ||||||||||||||||||||
-1 | Corporate SG&A | $ | (32.3 | ) | -2 | Gross profit decrease from intra-company sales | $ | (3.3 | ) | |||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Company-wide equity-based compensation | (8.3 | ) | ||||||||||||||||||
Profit sharing | (20.5 | ) | ||||||||||||||||||
Other, net | (5.7 | ) | ||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | (66.8 | ) | ||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
327.1 | (41.4 | |||||||||||||||||||
-3 | Cash and equivalents | $ | -4 | Elimination of intra-company receivables | $ | ) | ||||||||||||||
Investments in short-term commercial paper | 31.5 | Elimination of intra-company debt | (141.1 | ) | ||||||||||||||||
Accounts receivable | 8.7 | Other | (12.4 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Inventories | 11.5 | $ | (194.9 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Deferred income taxes | 23.4 | |||||||||||||||||||
Property, plant and equipment, net | 75.5 | |||||||||||||||||||
Debt issuance costs | 27.9 | |||||||||||||||||||
Intra-company debt | 141.1 | |||||||||||||||||||
Other | 67.4 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 714.1 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
32.2 | (41.7 | |||||||||||||||||||
-5 | Accounts payable | $ | -6 | Elimination of intra-company payables | $ | ) | ||||||||||||||
Income taxes payable | 17.1 | Elimination of intra-company debt | (141.1 | ) | ||||||||||||||||
Accrued interest | 35.1 | Other | (1.5 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Accrued profit sharing | 20.7 | $ | (184.3 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Debt | 2,152.20 | |||||||||||||||||||
Deferred income taxes | 218.2 | |||||||||||||||||||
Other | 22.3 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 2,497.80 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Condensed_Consolidating_Inform
Condensed Consolidating Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Condensed Consolidating Information | |||||||||||||||||
Condensed Consolidating Information | |||||||||||||||||
Note 14. Condensed Consolidating Information | |||||||||||||||||
Certain 100%-owned subsidiaries of SDI have fully and unconditionally guaranteed all of the indebtedness relating to the issuance of the company's senior unsecured notes due 2019, 2020, 2021, 2022, 2023 and 2024. Following are the company's condensed consolidating financial statements, including the guarantors, which present the financial position, results of operations and cash flows of (i) SDI (in each case, reflecting investments in its consolidated subsidiaries under the equity method of accounting), (ii) the guarantor subsidiaries of SDI, which includes Columbus since its acquisition on September 16, 2014, (iii) the non-guarantor subsidiaries of SDI, and (iv) the eliminations necessary to arrive at the information on a consolidated basis. The following statements should be read in conjunction with the accompanying consolidated financial statements, and notes thereto. | |||||||||||||||||
Condensed Consolidating Balance Sheets (in thousands) | |||||||||||||||||
As of December 31, 2014 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Cash and equivalents | $ | 265,313 | $ | 81,690 | $ | 14,360 | $ | — | $ | 361,363 | |||||||
Accounts receivable, net | 321,493 | 1,176,849 | 44,696 | (640,213 | ) | 902,825 | |||||||||||
Inventories | 662,970 | 862,796 | 94,916 | (2,263 | ) | 1,618,419 | |||||||||||
Other current assets | 94,634 | 8,416 | 6,577 | (18,469 | ) | 91,158 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total current assets | 1,344,410 | 2,129,751 | 160,549 | (660,945 | ) | 2,973,765 | |||||||||||
Property, plant and equipment, net | 1,002,407 | 1,826,208 | 297,505 | (2,214 | ) | 3,123,906 | |||||||||||
Intangible assets, net | — | 370,669 | — | — | 370,669 | ||||||||||||
Goodwill | — | 745,158 | — | — | 745,158 | ||||||||||||
Other assets, including investments in subs | 3,900,691 | 24,810 | 6,635 | (3,834,607 | ) | 97,529 | |||||||||||
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Total assets | $ | 6,247,508 | $ | 5,096,596 | $ | 464,689 | $ | (4,497,766 | ) | $ | 7,311,027 | ||||||
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Accounts payable | 151,517 | 371,037 | 98,886 | (110,384 | 511,056 | ||||||||||||
$ | $ | $ | $ | ) | $ | ||||||||||||
Accrued expenses | 191,433 | 166,101 | 11,695 | (76,163 | ) | 293,066 | |||||||||||
Current maturities of long-term debt | 13,073 | 777 | 73,767 | (41,157 | ) | 46,460 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 356,023 | 537,915 | 184,348 | (227,704 | ) | 850,582 | |||||||||||
Long-term debt | 2,942,360 | 624 | 158,665 | (123,943 | ) | 2,977,706 | |||||||||||
Other liabilities | 36,110 | 1,807,989 | 28,719 | (1,311,946 | ) | 560,872 | |||||||||||
Redeemable noncontrolling interests | 126,340 | 126,340 | |||||||||||||||
— | — | — | |||||||||||||||
Common stock | 635 | 1,727,859 | 18,121 | (1,745,980 | 635 | ||||||||||||
) | |||||||||||||||||
Treasury stock | (398,898 | ) | — | — | — | (398,898 | ) | ||||||||||
Additional paid-in-capital | 1,083,435 | 117,737 | 635,156 | (752,893 | ) | 1,083,435 | |||||||||||
Retained earnings (deficit) | 2,227,843 | 904,472 | (569,172 | ) | (335,300 | ) | 2,227,843 | ||||||||||
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Total Steel Dynamics, Inc. equity | 2,913,015 | 2,750,068 | 84,105 | (2,834,173 | ) | 2,913,015 | |||||||||||
Noncontrolling interests | — | — | (117,488 | ) | — | (117,488 | ) | ||||||||||
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Total equity | 2,913,015 | 2,750,068 | (33,383 | ) | (2,834,173 | ) | 2,795,527 | ||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities and equity | $ | 6,247,508 | $ | 5,096,596 | $ | 464,689 | $ | (4,497,766 | ) | $ | 7,311,027 | ||||||
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As of December 31, 2013 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Cash and equivalents | $ | 320,866 | $ | 61,148 | $ | 13,142 | $ | — | $ | 395,156 | |||||||
Accounts receivable, net | 309,691 | 874,707 | 32,018 | (495,816 | ) | 720,600 | |||||||||||
Inventories | 673,763 | 557,640 | 91,199 | (7,855 | ) | 1,314,747 | |||||||||||
Other current assets | 50,228 | 8,399 | 3,259 | (18,755 | ) | 43,131 | |||||||||||
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Total current assets | 1,354,548 | 1,501,894 | 139,618 | (522,426 | ) | 2,473,634 | |||||||||||
Property, plant and equipment, net | 1,046,093 | 619,617 | 562,843 | (2,419 | ) | 2,226,134 | |||||||||||
Intangible assets, net | — | 386,159 | — | — | 386,159 | ||||||||||||
Goodwill | — | 731,996 | — | — | 731,996 | ||||||||||||
Other assets, including investments in subs | 2,630,411 | 21,789 | 8,092 | (2,545,209 | ) | 115,083 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total assets | $ | 5,031,052 | $ | 3,261,455 | $ | 710,553 | $ | (3,070,054 | ) | $ | 5,933,006 | ||||||
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Accounts payable | 160,255 | 258,406 | 60,987 | (64,716 | 414,932 | ||||||||||||
$ | $ | $ | $ | ) | $ | ||||||||||||
Accrued expenses | 142,055 | 115,182 | 10,694 | (49,229 | ) | 218,702 | |||||||||||
Current maturities of long-term debt | 315,521 | 300 | 52,163 | (26,440 | ) | 341,544 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 617,831 | 373,888 | 123,844 | (140,385 | ) | 975,178 | |||||||||||
Long-term debt | 1,725,433 | — | 204,385 | (163,773 | ) | 1,766,045 | |||||||||||
Other liabilities | 140,465 | 1,986,260 | 34,895 | (1,582,206 | ) | 579,414 | |||||||||||
Redeemable noncontrolling interest | 116,514 | 116,514 | |||||||||||||||
— | — | — | |||||||||||||||
Common stock | 645 | 33,896 | 18,121 | (52,017 | 645 | ||||||||||||
) | |||||||||||||||||
Treasury stock | (718,529 | ) | — | — | — | (718,529 | ) | ||||||||||
Additional paid-in-capital | 1,085,694 | 117,737 | 552,946 | (670,683 | ) | 1,085,694 | |||||||||||
Retained earnings (deficit) | 2,179,513 | 749,674 | (288,684 | ) | (460,990 | ) | 2,179,513 | ||||||||||
| | | | | | | | | | | | | | | | | |
Total Steel Dynamics, Inc. equity | 2,547,323 | 901,307 | 282,383 | (1,183,690 | ) | 2,547,323 | |||||||||||
Noncontrolling interests | — | — | (51,468 | ) | — | (51,468 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Total equity | 2,547,323 | 901,307 | 230,915 | (1,183,690 | ) | 2,495,855 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities and equity | $ | 5,031,052 | $ | 3,261,455 | $ | 710,553 | $ | (3,070,054 | ) | $ | 5,933,006 | ||||||
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Condensed Consolidating Statements of Operations (in thousands) | |||||||||||||||||
For the Year Ended, December 31, 2014 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Net sales | $ | 3,904,488 | $ | 9,761,236 | $ | 527,584 | $ | (5,437,356 | ) | $ | 8,755,952 | ||||||
Costs of goods sold | 3,305,269 | 9,212,977 | 598,428 | (5,326,933 | ) | 7,789,741 | |||||||||||
| | | | | | | | | | | | | | | | | |
Gross profit (loss) | 599,219 | 548,259 | (70,844 | ) | (110,423 | ) | 966,211 | ||||||||||
Selling, general and administrative | 149,374 | 241,163 | 273,503 | (18,149 | ) | 645,891 | |||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | 449,845 | 307,096 | (344,347 | ) | (92,274 | ) | 320,320 | ||||||||||
Interest expense, net of capitalized interest | 78,442 | 56,006 | 7,745 | (4,930 | ) | 137,263 | |||||||||||
Other (income) expense, net | 18,976 | (23 | ) | (5,629 | ) | 4,930 | 18,254 | ||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income taxes and equity in net loss of subsidiaries | 352,427 | 251,113 | (346,463 | ) | (92,274 | ) | 164,803 | ||||||||||
Income taxes (benefit) | 14,064 | 96,315 | (1,095 | ) | (36,131 | ) | 73,153 | ||||||||||
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338,363 | 154,798 | (345,368 | ) | (56,143 | ) | 91,650 | |||||||||||
Equity in net loss of subsidiaries | (181,339 | ) | — | — | 181,339 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 65,374 | — | 65,374 | ||||||||||||
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Net income (loss) attributable to Steel Dynamics, Inc. | $ | 157,024 | $ | 154,798 | $ | (279,994 | ) | $ | 125,196 | $ | 157,024 | ||||||
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For the Year Ended, December 31, 2013 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Net sales | $ | 3,466,691 | $ | 8,219,499 | $ | 347,288 | $ | (4,660,554 | ) | $ | 7,372,924 | ||||||
Costs of goods sold | 2,981,591 | 7,805,367 | 440,064 | (4,573,242 | ) | 6,653,780 | |||||||||||
| | | | | | | | | | | | | | | | | |
Gross profit (loss) | 485,100 | 414,132 | (92,776 | ) | (87,312 | ) | 719,144 | ||||||||||
Selling, general and administrative | 118,975 | 219,531 | 10,548 | (16,435 | ) | 332,619 | |||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | 366,125 | 194,601 | (103,324 | ) | (70,877 | ) | 386,525 | ||||||||||
Interest expense, net of capitalized interest | 81,361 | 43,879 | 7,259 | (4,771 | ) | 127,728 | |||||||||||
Other (income) expense, net | (7,358 | ) | 3,401 | (4,847 | ) | 4,771 | (4,033 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income taxes and equity in net income of subsidiaries | 292,122 | 147,321 | (105,736 | ) | (70,877 | ) | 262,830 | ||||||||||
Income taxes | 63,670 | 54,448 | 6,406 | (25,210 | ) | 99,314 | |||||||||||
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228,452 | 92,873 | (112,142 | ) | (45,667 | ) | 163,516 | |||||||||||
Equity in net loss of subsidiaries | (39,138 | ) | — | — | 39,138 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 25,798 | — | 25,798 | ||||||||||||
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Net income (loss) attributable to Steel Dynamics, Inc. | $ | 189,314 | $ | 92,873 | $ | (86,344 | ) | $ | (6,529 | ) | $ | 189,314 | |||||
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For the Year Ended, December 31, 2012 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Net sales | $ | 3,431,978 | $ | 8,322,995 | $ | 177,527 | $ | (4,642,266 | ) | $ | 7,290,234 | ||||||
Costs of goods sold | 2,977,756 | 7,906,392 | 257,604 | (4,571,416 | ) | 6,570,336 | |||||||||||
| | | | | | | | | | | | | | | | | |
Gross profit (loss) | 454,222 | 416,603 | (80,077 | ) | (70,850 | ) | 719,898 | ||||||||||
Selling, general and administrative | 102,142 | 218,515 | 24,081 | (16,005 | ) | 328,733 | |||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | 352,080 | 198,088 | (104,158 | ) | (54,845 | ) | 391,165 | ||||||||||
Interest expense, net of capitalized interest | 104,058 | 53,186 | 6,630 | (5,289 | ) | 158,585 | |||||||||||
Other (income) expense, net | 28,677 | (1,531 | ) | (3,921 | ) | 5,289 | 28,514 | ||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income taxes and equity in net income of subsidiaries | 219,345 | 146,433 | (106,867 | ) | (54,845 | ) | 204,066 | ||||||||||
Income taxes | 26,611 | 51,011 | 247 | (16,084 | ) | 61,785 | |||||||||||
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192,734 | 95,422 | (107,114 | ) | (38,761 | ) | 142,281 | |||||||||||
Equity in net income of subsidiaries | (29,183 | ) | — | — | 29,183 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 21,270 | — | 21,270 | ||||||||||||
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Net income (loss) attributable to Steel Dynamics, Inc. | $ | 163,551 | $ | 95,422 | $ | (85,844 | ) | $ | (9,578 | ) | $ | 163,551 | |||||
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Condensed Consolidating Statements of Cash Flows (in thousands) | |||||||||||||||||
For the Year Ended, December 31, 2014 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 400,204 | $ | 279,080 | $ | (38,666 | ) | $ | (23,046 | ) | $ | 617,572 | |||||
Net cash used in investing activities | (1,690,363 | ) | (8,883 | ) | (23,206 | ) | (24,815 | ) | (1,747,267 | ) | |||||||
Net cash provided by (used in) financing activities | 1,234,606 | (249,655 | ) | 63,090 | 47,861 | 1,095,902 | |||||||||||
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Increase (decrease) in cash and equivalents | (55,553 | ) | 20,542 | 1,218 | — | (33,793 | ) | ||||||||||
Cash and equivalents at beginning of period | 320,866 | 61,148 | 13,142 | — | 395,156 | ||||||||||||
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Cash and equivalents at end of period | $ | 265,313 | $ | 81,690 | $ | 14,360 | $ | — | $ | 361,363 | |||||||
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For the Year Ended, December 31, 2013 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 190,616 | $ | 190,885 | $ | (80,525 | ) | $ | 11,199 | $ | 312,175 | ||||||
Net cash used in investing activities | (170,561 | ) | (41,415 | ) | (23,086 | ) | 82,217 | (152,845 | ) | ||||||||
Net cash provided by (used in) financing activities | (21,896 | ) | (129,997 | ) | 105,218 | (93,416 | ) | (140,091 | ) | ||||||||
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Increase (decrease) in cash and equivalents | (1,841 | ) | 19,473 | 1,607 | — | 19,239 | |||||||||||
Cash and equivalents at beginning of period | 322,707 | 41,675 | 11,535 | — | 375,917 | ||||||||||||
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Cash and equivalents at end of period | $ | 320,866 | $ | 61,148 | $ | 13,142 | $ | — | $ | 395,156 | |||||||
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For the Year Ended, December 31, 2012 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 306,613 | $ | 209,579 | $ | (76,363 | ) | $ | 5,865 | $ | 445,694 | ||||||
Net cash used in investing activities | (104,242 | ) | (107,274 | ) | (95,314 | ) | 115,229 | (191,601 | ) | ||||||||
Net cash provided by (used in) financing activities | (180,737 | ) | (119,329 | ) | 152,223 | (121,094 | ) | (268,937 | ) | ||||||||
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Increase (decrease) in cash and equivalents | 21,634 | (17,024 | ) | (19,454 | ) | — | (14,844 | ) | |||||||||
Cash and equivalents at beginning of period | 301,073 | 58,699 | 30,989 | — | 390,761 | ||||||||||||
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Cash and equivalents at end of period | $ | 322,707 | $ | 41,675 | $ | 11,535 | $ | — | $ | 375,917 | |||||||
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Quarterly_Financial_Informatio
Quarterly Financial Information (unaudited, in thousands, except per share data) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Quarterly Financial Information (unaudited, in thousands, except per share data) | ||||||||||||||
Quarterly Financial Information (unaudited, in thousands, except per share data) | ||||||||||||||
Note 15. Quarterly Financial Information (unaudited, in thousands, except per share data) | ||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||
2014:00:00 | ||||||||||||||
Net sales | $ | 1,830,082 | $ | 2,069,761 | $ | 2,339,016 | $ | 2,517,093 | ||||||
Gross profit | 163,304 | 222,771 | 288,512 | 291,624 | ||||||||||
Operating income (loss) | 80,932 | 131,905 | 188,643 | (81,160 | ) | |||||||||
Net income (loss) | 33,698 | 66,341 | 87,657 | (96,046 | ) | |||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | 38,579 | 72,303 | 91,173 | (45,031 | ) | |||||||||
Earnings (loss) per share: | ||||||||||||||
Basic | 0.17 | 0.32 | 0.38 | (.19 | ) | |||||||||
Diluted | 0.17 | 0.31 | 0.38 | (.19 | ) | |||||||||
2013:00:00 | ||||||||||||||
Net sales | $ | 1,795,696 | $ | 1,801,340 | $ | 1,911,738 | $ | 1,864,150 | ||||||
Gross profit | 176,264 | 147,692 | 197,192 | 197,996 | ||||||||||
Operating income | 96,232 | 69,198 | 113,273 | 107,822 | ||||||||||
Net income | 41,252 | 23,273 | 51,090 | 47,901 | ||||||||||
Net income attributable to Steel Dynamics, Inc. | 48,215 | 28,958 | 57,486 | 54,655 | ||||||||||
Earnings per share: | ||||||||||||||
Basic | 0.22 | 0.13 | 0.26 | 0.25 | ||||||||||
Diluted | 0.21 | 0.13 | 0.25 | 0.24 | ||||||||||
The third quarter of 2014 reflects other non-operating expenses of $25.0 million associated with acquisition and bridge financing costs related to the acquisition of Columbus, as discussed in Note 2—Acquisition. | ||||||||||||||
The fourth quarter of 2014 reflects impairment charges associated with the company's Minnesota ironmaking operations, which reduced operating income by $260.0 million, net income by $179.1 million, and net income attributable to Steel Dynamics, Inc. by $132.6 million. | ||||||||||||||
Earnings per share are computed independently for each of the quarters presented. Therefore, the sum of the quarterly earnings per share may not equal the total for the year. | ||||||||||||||
Description_of_the_Business_an1
Description of the Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Description of the Business and Summary of Significant Accounting Policies | ||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation | |||||||||||||||||||
The consolidated financial statements include the accounts of SDI, together with its wholly and majority-owned or controlled subsidiaries, after elimination of significant intercompany accounts and transactions. Noncontrolling interests represent the noncontrolling owner's proportionate share in the equity, income, or losses of the company's majority-owned or controlled consolidated subsidiaries. | ||||||||||||||||||||
Use of Estimates | Use of Estimates | |||||||||||||||||||
These financial statements are prepared in conformity with accounting principles generally accepted in the United States, and accordingly, include amounts that require management to make estimates and assumptions that affect the amounts reported in the financial statements and in the notes thereto. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment, intangible assets and goodwill; valuation allowances for trade receivables, inventories and deferred income tax assets; unrecognized tax benefits; potential environmental liabilities; and litigation claims and settlements. Actual results may differ from these estimates and assumptions. | ||||||||||||||||||||
Revenue Recognition and Allowances for Doubtful Accounts | Revenue Recognition and Allowances for Doubtful Accounts | |||||||||||||||||||
Except for the steel fabrication operations segment, the company recognizes revenues from sales and the allowance for estimated returns and claims from these sales at the time the title of the product transfers. Provision is made for estimated product returns and customer claims based on historical experience. If the historical data used in the estimates does not reflect future returns and claims trends, additional provision may be necessary. The company's steel fabrication operations segment recognizes revenues from construction contracts utilizing a percentage of completion methodology based on steel tons used on completed units to date as a percentage of estimated total steel tons required for each contract. The allowance for doubtful accounts for all operating segments is based on the company's best estimate of probable credit losses, along with historical experience. | ||||||||||||||||||||
Cash and Equivalents | Cash and Equivalents | |||||||||||||||||||
Cash and equivalents include all highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash is primarily funds held in escrow as required by various insurance and government organizations. | ||||||||||||||||||||
Inventories | Inventories | |||||||||||||||||||
Inventories are stated at lower of cost or market. Cost is determined using a weighted average cost method for scrap, and on a first-in, first-out, basis for other inventory. Inventory consisted of the following at December 31 (in thousands): | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Raw materials | $ | 764,883 | $ | 660,384 | ||||||||||||||||
Supplies | 374,599 | 293,533 | ||||||||||||||||||
Work in progress | 128,882 | 84,710 | ||||||||||||||||||
Finished goods | 350,055 | 276,120 | ||||||||||||||||||
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$ | 1,618,419 | $ | 1,314,747 | |||||||||||||||||
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Investments | Investments | |||||||||||||||||||
The company's investments in short-term commercial paper, of which there is none held at December 31, 2014 or 2013, are treated as trading securities. | ||||||||||||||||||||
The company has investments in certain joint ventures and closely-held companies in which ownership varies between 49% and 50%. For these investments where the company does not have effective control, the company accounts for the investment using the equity method of accounting. Investments in companies in which the company does not exercise control and its ownership is less than 20% are carried at cost. These investments are reflected in other long-term assets on the company's balance sheet in an amount of $18.4 million and $17.8 million at December 31, 2014, and 2013, respectively. | ||||||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment | |||||||||||||||||||
Property, plant and equipment are stated at cost, which includes capitalized interest on construction-in-progress amounts, and is reduced by proceeds received from certain state and local government grants and other capital cost reimbursements. The company assigns each fixed asset a useful life ranging from 3 to 20 years for plant, machinery and equipment and 10 to 40 years for buildings and improvements. Repairs and maintenance are expensed as incurred. Depreciation is provided utilizing the straight-line depreciation methodology, or the units-of-production depreciation methodology for certain production related assets, based on units produced, subject to a minimum and maximum level. Depreciation expense was $229.4 million, $192.4 million, and $179.9 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||||||||||
The company's property, plant and equipment at December 31 consisted of the following (in thousands): | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Land and improvements | $ | 334,583 | $ | 293,083 | ||||||||||||||||
Buildings and improvements | 713,837 | 550,226 | ||||||||||||||||||
Plant, machinery and equipment | 3,898,275 | 2,942,684 | ||||||||||||||||||
Construction in progress | 63,344 | 153,821 | ||||||||||||||||||
| | | | | | | | |||||||||||||
5,010,039 | 3,939,814 | |||||||||||||||||||
Less accumulated depreciation | 1,886,133 | 1,713,680 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Property, plant and equipment, net | $ | 3,123,906 | $ | 2,226,134 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Intangible Assets | Intangible Assets | |||||||||||||||||||
The company's intangible assets, at December 31, consisted of the following (in thousands): | ||||||||||||||||||||
2014 | 2013 | Useful Life | Weighted | |||||||||||||||||
Average | ||||||||||||||||||||
Amortization | ||||||||||||||||||||
Period | ||||||||||||||||||||
Customer and scrap generator relationships | $ | 419,400 | $ | 408,400 | 10 to 25 years | 19 years | ||||||||||||||
Trademarks | 189,800 | 189,800 | Indefinite | — | ||||||||||||||||
Trademarks | 3,200 | 3,200 | 12 years | 12 years | ||||||||||||||||
Other | — | 100 | 5 years | — | ||||||||||||||||
| | | | | | | | | | | ||||||||||
612,400 | 601,500 | 19 years | ||||||||||||||||||
Less accumulated amortization | 241,731 | 215,341 | ||||||||||||||||||
| | | | | | | | | | | ||||||||||
$ | 370,669 | $ | 386,159 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
The company utilizes an accelerated amortization methodology for customer and scrap generator relationships in order to follow the pattern in which the economic benefits of the amounts are anticipated to be consumed. Finite-lived trademarks are amortized using a straight line methodology. Amortization of intangible assets was $26.4 million, $30.5 million, and $34.3 million for the years ended December 31, 2014, 2013, and 2012, respectively. Estimated amortization expense, related to amortizable intangibles, for the years ending December 31 is as follows (in thousands): | ||||||||||||||||||||
2015 | $ | 24,180 | ||||||||||||||||||
2016 | 21,939 | |||||||||||||||||||
2017 | 19,157 | |||||||||||||||||||
2018 | 16,623 | |||||||||||||||||||
2019 | 15,084 | |||||||||||||||||||
Thereafter | 83,886 | |||||||||||||||||||
| | | | | ||||||||||||||||
Total | $ | 180,869 | ||||||||||||||||||
| | | | | ||||||||||||||||
| | | | | ||||||||||||||||
Impairment of Long-Lived Tangible and Finite-Lived Intangible Assets | ||||||||||||||||||||
Impairment of Long-Lived Tangible and Finite-Lived Intangible Assets | ||||||||||||||||||||
The company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be fully recoverable. Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amounts. The impairment loss is measured by comparing the fair value of the asset to its carrying amount. We consider various factors and determine whether an impairment test is necessary, including by way of examples, a significant and prolonged deterioration in operating results and/or projected cash flows, significant changes in the extent or manner in which an asset is used, technological advances with respect to assets which would potentially render them obsolete, our strategy and capital planning, and the economic climate in markets to be served. | ||||||||||||||||||||
During the fourth quarter of 2014, the company's Minnesota ironmaking operations reached a steady operating state, indicating a consistency in the operations' production capability, processes and cost structure, including the ability to utilize certain lower-cost raw materials. Given this, the company undertook an assessment of the recoverability of the carrying value of its Minnesota ironmaking operations' fixed assets. With the company's current outlook regarding future operating costs and product pricing, the company concluded that the carrying value of these fixed assets was no longer fully recoverable, and the fixed assets were in fact impaired. This assessment resulted in a $260.0 million impairment charge, including amounts attributable to noncontrolling interests of $46.5 million, recorded in the Metals Recycling and Ferrous Resources operating segment. The carrying values of the impaired assets were adjusted to their estimated fair values as determined primarily on the cost approach, as well as expected future discounted cash flows (an income approach), using Level 3 inputs as provided for under ASC 820. | ||||||||||||||||||||
In the third quarter of 2012, the company determined that it would terminate two small joint venture entities, which were not aligned with the company's long-term strategic focus. The decision to terminate these joint ventures triggered an assessment for impairment based on estimated realizable values, a market approach using Level 3 inputs under ASC 820, resulting in an impairment charge of $8.3 million being recorded in 2012, and further adjustments in 2013 of $308,000. As these joint ventures are not reported within any of the company's reportable segments, reported segment results were not affected. | ||||||||||||||||||||
Goodwill | Goodwill | |||||||||||||||||||
The company's goodwill is allocated to the following reporting units at December 31, (in thousands): | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
OmniSource—Metals Recycling/Ferrous Resources Segment | $ | 456,727 | $ | 463,247 | ||||||||||||||||
The Techs—Steel Segment | 142,783 | 142,783 | ||||||||||||||||||
Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division—Metals Recycling/Ferrous Resources Segment | 95,000 | 95,000 | ||||||||||||||||||
Roanoke Bar Division—Steel Segment | 29,041 | 29,041 | ||||||||||||||||||
Columbus Flat Roll Division—Steel Segment | 19,682 | — | ||||||||||||||||||
New Millennium Building Systems—Steel Fabrication Segment | 1,925 | 1,925 | ||||||||||||||||||
| | | | | | | | |||||||||||||
$ | 745,158 | $ | 731,996 | |||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
OmniSource goodwill decreased $6.5 million from December 31, 2013, to December 31, 2014, in recognition of the 2014 tax benefit related to the amortization of the component of OmniSource tax-deductible goodwill in excess of book goodwill. | ||||||||||||||||||||
Impairment of Goodwill and Indefinite-Lived Intangible Assets | Impairment of Goodwill and Indefinite-Lived Intangible Assets | |||||||||||||||||||
At least once annually or when indicators of impairment exist, the company performs an impairment test for goodwill and other indefinite-lived intangible assets. Goodwill is allocated to various reporting units, which are generally one level below the company's operating segments. The company utilizes a two-stepped approach to evaluate goodwill impairment. The first step of the test determines if there is potential goodwill impairment. In this step the company compares the fair value of the reporting unit to its carrying amount (which includes goodwill). The fair value of the reporting unit is determined by using an estimate of future cash flows utilizing a risk-adjusted discount rate to calculate the net present value of future cash flows (income approach), and by using a market approach based upon an analysis of valuation metrics of comparable peer companies. If the carrying amount exceeds the fair value, the company performs the second step of the test, which measures the amount of impairment loss to be recorded, if any. In the second step, the company compares the carrying amount of the goodwill to the implied fair value of the goodwill based on the net fair value of the recognized and unrecognized assets and liabilities of the reporting unit to which it is allocated. If the implied fair value is less than the carrying value, an impairment loss is recorded to the extent that the fair value of the goodwill is less than its carrying value. | ||||||||||||||||||||
The company tests indefinite-lived intangible assets for impairment through the comparison of the fair value of the specific intangible asset with its carrying amount. The fair value of the intangible asset is determined by using an estimate of future cash flows attributable to the asset and a risk-adjusted discount rate to compute a net present value of future cash flows. If the fair value is less than the carrying value, an impairment loss is recorded in an amount equal to the excess in carrying value. | ||||||||||||||||||||
Equity-Based Compensation | Equity-Based Compensation | |||||||||||||||||||
The company has several stock-based employee compensation plans which are more fully described in Note 6. Compensation expense for restricted stock units, deferred stock units, restricted stock, and performance awards is recorded over the vesting periods using the fair value as determined by the closing fair market value of the company's common stock on the grant date, and with respect to performance awards, an estimate of probability of award achievement during the performance period. Compensation expense for these stock-based employee compensation plans was $22.8 million, $15.2 million, and $9.9 million for the years ended December 31, 2014, 2013, and 2012, respectively. | ||||||||||||||||||||
Income Taxes | Income Taxes | |||||||||||||||||||
The company accounts for income taxes and the related accounts under the liability method. Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted rates expected to be in effect during the year in which the basis differences reverse. | ||||||||||||||||||||
Earnings Per Share | ||||||||||||||||||||
Earnings Per Share | ||||||||||||||||||||
Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company's basic earnings per share. Common share equivalents represent potentially dilutive stock options, restricted stock units, deferred stock units, and dilutive shares related to the company's convertible subordinated debt; and are excluded from the computation in periods in which they have an anti-dilutive effect. There were no anti-dilutive options at December 31, 2014, and 2013. | ||||||||||||||||||||
The following table presents a reconciliation of the numerators and the denominators of the company's basic and diluted earnings per share computations for the years ended December 31 (in thousands, except per share data): | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Net Income | Shares | Per Share | Net Income | Shares | Per Share | |||||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | |||||||||||||||
Basic earnings per share | $ | 157,024 | 232,547 | $ | 0.68 | $ | 189,314 | 220,916 | $ | 0.86 | ||||||||||
Dilutive stock options, deferred stock units, and restricted stock units | — | 1,828 | — | 1,392 | ||||||||||||||||
5.125% convertible senior notes | 4,327 | 7,703 | 9,432 | 16,688 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Diluted earnings per share | $ | 161,351 | 242,078 | $ | 0.67 | $ | 198,746 | 238,996 | $ | 0.83 | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
2012 | ||||||||||||||||||||
Net Loss | Shares | Per Share | ||||||||||||||||||
(Numerator) | (Denominator) | Amount | ||||||||||||||||||
Basic earnings per share | $ | 163,551 | 219,159 | $ | 0.75 | |||||||||||||||
Dilutive stock options and deferred stock units | — | 916 | ||||||||||||||||||
5.125% convertible senior notes | 9,432 | 16,549 | ||||||||||||||||||
| | | | | | | | | | | ||||||||||
Diluted earnings per share | $ | 172,983 | 236,624 | $ | 0.73 | |||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Concentration of Credit Risk | Concentration of Credit Risk | |||||||||||||||||||
Financial instruments that potentially subject the company to significant concentrations of credit risk principally consist of temporary cash investments, short-term commercial paper, and accounts receivable. The company places its temporary cash and short-term commercial paper investments with high credit quality financial institutions and companies, and limits the amount of credit exposure from any one entity. The company is exposed to credit risk in the event of nonpayment by customers. The company mitigates its exposure to credit risk, which it generally extends initially on an unsecured basis, by performing ongoing credit evaluations and taking further action if necessary, such as requiring letters of credit or other security interests to support the customer receivable. Management's estimation of the allowance for doubtful accounts is based upon known credit risks, historical loss experience and current economic conditions affecting the company's customers. Customer accounts receivable are charged off when all collection efforts have been exhausted and the amounts are deemed uncollectible. Heidtman Steel Products (Heidtman), a related party, accounted for 4% of the company's net accounts receivable at December 31, 2014, and 7% at December 31, 2013. | ||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | |||||||||||||||||||
The company recognizes all derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. Changes in the fair value of derivatives that are designated as hedges, depending on the nature of the hedge, are recognized as either an offset against the change in fair value of the hedged balance sheet item in the case of fair value hedges or as other comprehensive income in the case of cash flow hedges, until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value is immediately recognized in earnings. The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements. | ||||||||||||||||||||
In the normal course of business, the company may have involvement with derivative financial instruments related to managing fluctuations in interest rates, foreign exchange rates, and forward contracts in various commodities. At the time of acquiring these financial instruments, the company designates and assigns these instruments as hedges of specific assets, liabilities or anticipated transactions. When hedged assets or liabilities are sold or extinguished, or the anticipated transaction being hedged is no longer expected to occur, the company recognizes the gain or loss on the designated hedged financial instrument. | ||||||||||||||||||||
The company routinely enters into forward contracts in various commodities, primarily nonferrous metals (specifically aluminum, copper, nickel and silver) in our Metals Recycling and Ferrous Resources operations, to reduce exposure to commodity related price fluctuations. The company does not enter into these derivative financial instruments for speculative purposes. | ||||||||||||||||||||
Recently Issued Accounting Standards | Recently Issued Accounting Standards. | |||||||||||||||||||
In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition—Revenue from Contracts with Customers, which amends the guidance in former ASC 605, Revenue Recognition. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Because the guidance in ASC 606 is principles-based, it can be applied to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. Additionally, ASC 606 requires additional disclosures to help users of financial statements better understand the nature, amount, timing, and potential uncertainty of revenue that is recognized. The company is currently evaluating the impact of the provisions of ASC 606. | ||||||||||||||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40: Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern), effective for annual and interim periods ending after December 15, 2016. ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. There are required disclosures if principal conditions or events are identified that raised substantial doubt about the entity's ability to continue as a going concern (before consideration of management's plans), as well as management's evaluation of the significance of those conditions or events in relation to the entity's ability to meet its obligations, and management's plans that alleviated substantial doubt about the entity's ability to continue as a going concern. This ASU is not expected to have any impact on our overall results of operations, financial position or cash flows. | ||||||||||||||||||||
Description_of_the_Business_an2
Description of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Description of the Business and Summary of Significant Accounting Policies | ||||||||||||||||||||
Schedule of inventories | Inventories | |||||||||||||||||||
Inventories are stated at lower of cost or market. Cost is determined using a weighted average cost method for scrap, and on a first-in, first-out, basis for other inventory. Inventory consisted of the following at December 31 (in thousands): | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Raw materials | $ | 764,883 | $ | 660,384 | ||||||||||||||||
Supplies | 374,599 | 293,533 | ||||||||||||||||||
Work in progress | 128,882 | 84,710 | ||||||||||||||||||
Finished goods | 350,055 | 276,120 | ||||||||||||||||||
| | | | | | | | |||||||||||||
$ | 1,618,419 | $ | 1,314,747 | |||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Schedule of property, plant and equipment | The company's property, plant and equipment at December 31 consisted of the following (in thousands): | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Land and improvements | $ | 334,583 | $ | 293,083 | ||||||||||||||||
Buildings and improvements | 713,837 | 550,226 | ||||||||||||||||||
Plant, machinery and equipment | 3,898,275 | 2,942,684 | ||||||||||||||||||
Construction in progress | 63,344 | 153,821 | ||||||||||||||||||
| | | | | | | | |||||||||||||
5,010,039 | 3,939,814 | |||||||||||||||||||
Less accumulated depreciation | 1,886,133 | 1,713,680 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Property, plant and equipment, net | $ | 3,123,906 | $ | 2,226,134 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Schedule of intangible assets | The company's intangible assets, at December 31, consisted of the following (in thousands): | |||||||||||||||||||
2014 | 2013 | Useful Life | Weighted | |||||||||||||||||
Average | ||||||||||||||||||||
Amortization | ||||||||||||||||||||
Period | ||||||||||||||||||||
Customer and scrap generator relationships | $ | 419,400 | $ | 408,400 | 10 to 25 years | 19 years | ||||||||||||||
Trademarks | 189,800 | 189,800 | Indefinite | — | ||||||||||||||||
Trademarks | 3,200 | 3,200 | 12 years | 12 years | ||||||||||||||||
Other | — | 100 | 5 years | — | ||||||||||||||||
| | | | | | | | | | | ||||||||||
612,400 | 601,500 | 19 years | ||||||||||||||||||
Less accumulated amortization | 241,731 | 215,341 | ||||||||||||||||||
| | | | | | | | | | | ||||||||||
$ | 370,669 | $ | 386,159 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Schedule of estimated amortization expense, related to amortizable intangibles | ||||||||||||||||||||
Estimated amortization expense, related to amortizable intangibles, for the years ending December 31 is as follows (in thousands): | ||||||||||||||||||||
2015 | $ | 24,180 | ||||||||||||||||||
2016 | 21,939 | |||||||||||||||||||
2017 | 19,157 | |||||||||||||||||||
2018 | 16,623 | |||||||||||||||||||
2019 | 15,084 | |||||||||||||||||||
Thereafter | 83,886 | |||||||||||||||||||
| | | | | ||||||||||||||||
Total | $ | 180,869 | ||||||||||||||||||
| | | | | ||||||||||||||||
| | | | | ||||||||||||||||
Schedule of allocation of goodwill to reporting units | The company's goodwill is allocated to the following reporting units at December 31, (in thousands): | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
OmniSource—Metals Recycling/Ferrous Resources Segment | $ | 456,727 | $ | 463,247 | ||||||||||||||||
The Techs—Steel Segment | 142,783 | 142,783 | ||||||||||||||||||
Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division—Metals Recycling/Ferrous Resources Segment | 95,000 | 95,000 | ||||||||||||||||||
Roanoke Bar Division—Steel Segment | 29,041 | 29,041 | ||||||||||||||||||
Columbus Flat Roll Division—Steel Segment | 19,682 | — | ||||||||||||||||||
New Millennium Building Systems—Steel Fabrication Segment | 1,925 | 1,925 | ||||||||||||||||||
| | | | | | | | |||||||||||||
$ | 745,158 | $ | 731,996 | |||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Schedule of reconciliation of the numerators and denominators used in calculating basic and diluted earnings per share | ||||||||||||||||||||
The following table presents a reconciliation of the numerators and the denominators of the company's basic and diluted earnings per share computations for the years ended December 31 (in thousands, except per share data): | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Net Income | Shares | Per Share | Net Income | Shares | Per Share | |||||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | |||||||||||||||
Basic earnings per share | $ | 157,024 | 232,547 | $ | 0.68 | $ | 189,314 | 220,916 | $ | 0.86 | ||||||||||
Dilutive stock options, deferred stock units, and restricted stock units | — | 1,828 | — | 1,392 | ||||||||||||||||
5.125% convertible senior notes | 4,327 | 7,703 | 9,432 | 16,688 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Diluted earnings per share | $ | 161,351 | 242,078 | $ | 0.67 | $ | 198,746 | 238,996 | $ | 0.83 | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
2012 | ||||||||||||||||||||
Net Loss | Shares | Per Share | ||||||||||||||||||
(Numerator) | (Denominator) | Amount | ||||||||||||||||||
Basic earnings per share | $ | 163,551 | 219,159 | $ | 0.75 | |||||||||||||||
Dilutive stock options and deferred stock units | — | 916 | ||||||||||||||||||
5.125% convertible senior notes | 9,432 | 16,549 | ||||||||||||||||||
| | | | | | | | | | | ||||||||||
Diluted earnings per share | $ | 172,983 | 236,624 | $ | 0.73 | |||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Acquisition | ||||||||
Schedule of final purchase price allocation | The aggregate purchase price was allocated to the opening balance sheet of Columbus at September 16, 2014, based on the fair value of the acquired assets, assumed liabilities, and identifiable intangible assets (in thousands): | |||||||
Current assets, net of cash acquired | $ | 553,255 | ||||||
Property, plant & equipment | 1,279,714 | |||||||
Intangible assets | 15,000 | |||||||
Goodwill | 19,682 | |||||||
Other assets | 3,875 | |||||||
| | | | | ||||
Total assets acquired | 1,871,526 | |||||||
| | | | | ||||
Liabilities assumed | 202,077 | |||||||
| | | | | ||||
Net assets acquired | $ | 1,669,449 | ||||||
| | | | | ||||
| | | | | ||||
Schedule of identifiable intangible assets related to the acquisition | ||||||||
The identifiable intangible assets related to the acquisition consisted of the following (in thousands): | ||||||||
Amount | Useful Life | |||||||
Customer relationships | $ | 11,000 | 15 years | |||||
Backlogs | 4,000 | 2 months | ||||||
| | | | | | |||
$ | 15,000 | |||||||
| | | | | | |||
| | | | | | |||
Schedule of estimated intangible asset amortization expense | ||||||||
The estimated customer relationships intangible asset amortization expense for the next five years and thereafter follows (in thousands): | ||||||||
2015 | $ | 790 | ||||||
2016 | 1,038 | |||||||
2017 | 964 | |||||||
2018 | 859 | |||||||
2019 | 753 | |||||||
Thereafter | 6,196 | |||||||
| | | | | ||||
Total | $ | 10,600 | ||||||
| | | | | ||||
| | | | | ||||
Schedule of unaudited pro forma information | The following unaudited pro forma information is presented below as if the Columbus acquisition was completed as of January 1, 2013 (in thousands): | |||||||
Years Ended December 31, | ||||||||
2014 | 2013 | |||||||
Net Sales | $ | 10,355,774 | $ | 9,193,344 | ||||
Net Income attributable to Steel Dynamics, Inc. | 264,779 | 155,357 | ||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Long-Term Debt | |||||||||||||
Schedule of long-term debt | The company's borrowings consisted of the following at December 31 (in thousands): | ||||||||||||
2014 | 2013 | ||||||||||||
Senior term loan | $ | 250,000 | $ | 247,500 | |||||||||
5.125% convertible senior notes due 2014 | — | 287,493 | |||||||||||
61/8% senior notes due 2019 | 400,000 | 400,000 | |||||||||||
75/8% senior notes due 2020 | 350,000 | 350,000 | |||||||||||
5.125% senior notes due 2021 | 700,000 | — | |||||||||||
63/8% senior notes due 2022 | 350,000 | 350,000 | |||||||||||
51/4% senior notes due 2023 | 400,000 | 400,000 | |||||||||||
5.500% senior notes due 2024 | 500,000 | — | |||||||||||
Other obligations | 74,166 | 72,596 | |||||||||||
| | | | | | | | ||||||
Total debt | 3,024,166 | 2,107,589 | |||||||||||
Less current maturities | 46,460 | 341,544 | |||||||||||
| | | | | | | | ||||||
Long-term debt | $ | 2,977,706 | $ | 1,766,045 | |||||||||
| | | | | | | | ||||||
| | | | | | | | ||||||
Schedule of senior unsecured notes outstanding terms | |||||||||||||
Issue | 2019 Notes | 2020 Notes | 2021 Notes | 2022 Notes | 2023 Notes | 2024 Notes | |||||||
Outstanding Balance | $400.0 million | $350.0 million | $700.0 million | $350.0 million | $400.0 million | $500.0 million | |||||||
Stated Interest Rate | 61/8% | 75/8% | 5.13% | 63/8% | 51/4% | 5.50% | |||||||
Semi-Annual Interest Payment Dates | February 15 and August 15 | March 15 and September 15 | April 1 and October 1 | February 15 and August 15 | April 15 and October 15 | April 1 and October 1 | |||||||
Equity Redemption Option Price & Date | 106.13% | Expired | 105.13% | 106.38% | 105.25% | 105.50% | |||||||
(8/15/15) | (10/1/17) | (8/15/15) | (4/15/16) | (10/1/17) | |||||||||
"Make-whole" Option Date | 8/15/16 | Not Applicable | 10/1/17 | 8/15/17 | 4/15/18 | 10/1/19 | |||||||
First Call Price & Date | 103.06% | 103.81% | 102.56% | 103.19% | 102.63% | 102.75% | |||||||
(8/15/16) | (3/15/15) | (10/1/17) | (8/15/17) | (4/15/18) | (10/1/19) | ||||||||
Second Call Price & Date | 101.53% | 102.54% | 101.28% | 102.13% | 101.75% | 101.83% | |||||||
(8/15/17) | (3/15/16) | (10/1/18) | (8/15/18) | (4/15/19) | (10/1/20) | ||||||||
Third Call Price & Date | 100.00% | 101.27% | 100.00% | 101.06% | 100.88% | 100.92% | |||||||
(8/15/18) | (3/15/17) | (10/1/19) | (8/15/19) | (4/15/20) | (10/1/21) | ||||||||
Fourth Call Price & Date | — | 100.00% | — | 100.00% | 100.00% | 100.00% | |||||||
(3/15/18) | (8/15/20) | (4/15/21) | (10/1/22) | ||||||||||
Maturity Date | August 15, 2019 | March 15, 2020 | October 1, 2021 | August 15, 2022 | April 15, 2023 | October 1, 2024 | |||||||
Schedule of outstanding debt maturities | Maturities of outstanding debt as of December 31, 2014, are as follows (in thousands): | ||||||||||||
2015 | $ | 46,460 | |||||||||||
2016 | 16,364 | ||||||||||||
2017 | 15,675 | ||||||||||||
2018 | 15,601 | ||||||||||||
2019 | 603,291 | ||||||||||||
Thereafter | 2,326,775 | ||||||||||||
| | | | | |||||||||
$ | 3,024,166 | ||||||||||||
| | | | | |||||||||
| | | | | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Taxes | |||||||||||
Schedule of current and deferred federal and state income tax expense (benefit) | |||||||||||
The current and deferred federal and state income tax expense (benefit) for the years ended December 31 is as follows (in thousands): | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current income tax expense | $ | 94,312 | $ | 72,599 | $ | 11,334 | |||||
Deferred income tax expense (benefit) | (21,159 | ) | 26,715 | 50,451 | |||||||
| | | | | | | | | | | |
Total income tax expense | $ | 73,153 | $ | 99,314 | $ | 61,785 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of reconciliation of statutory tax rates to actual effective tax rates | |||||||||||
2014 | 2013 | 2012 | |||||||||
Statutory federal tax rate | 35 | % | 35 | % | 35 | % | |||||
State income taxes, net of federal benefit | 4.6 | 3.8 | 3.4 | ||||||||
Domestic manufacturing deduction | (4.8 | ) | (2.0 | ) | (2.3 | ) | |||||
Noncontrolling interests | 13.9 | 3.4 | 3.6 | ||||||||
Federal research and development tax credits | (1.5 | ) | (2.5 | ) | — | ||||||
Audit settlements | — | — | (9.6 | ) | |||||||
Other permanent differences | (2.8 | ) | 0.1 | 0.2 | |||||||
| | | | | | | | | | | |
Effective tax rate | 44.4 | % | 37.8 | % | 30.3 | % | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of components of deferred tax assets and liabilities | |||||||||||
Significant components of the company's deferred tax assets and liabilities at December 31 are as follows (in thousands): | |||||||||||
2014 | 2013 | ||||||||||
Deferred tax assets | |||||||||||
Accrued expenses and allowances | $ | 22,780 | $ | 23,497 | |||||||
Inventories | 20,546 | 3,621 | |||||||||
Net operating loss carryforwards | 33,347 | 18,690 | |||||||||
Other | 5,571 | 6,238 | |||||||||
| | | | | | | | ||||
Subtotal | 82,244 | 52,046 | |||||||||
Less: valuation allowance | (21,586 | ) | (10,641 | ) | |||||||
| | | | | | | | ||||
Total net deferred tax assets | 60,658 | 41,405 | |||||||||
| | | | | | | | ||||
Deferred tax liabilities | |||||||||||
Property, plant and equipment | (449,939 | ) | (474,088 | ) | |||||||
Intangible assets | (108,840 | ) | (94,936 | ) | |||||||
Other | (8,359 | ) | (10,426 | ) | |||||||
| | | | | | | | ||||
Total deferred tax liabilities | (567,138 | ) | (579,450 | ) | |||||||
| | | | | | | | ||||
Net deferred tax liability | $ | (506,480 | ) | $ | (538,045 | ) | |||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | |||||||||||
2014 | 2013 | 2012 | |||||||||
Balance at January 1 | $ | 26,564 | $ | 22,245 | $ | 64,555 | |||||
Increases related to current year tax positions | 1,050 | 1,050 | — | ||||||||
Increases related to prior year tax positions | 653 | 3,760 | 741 | ||||||||
Decreases related to prior year tax positions | (2,298 | ) | (491 | ) | (40,741 | ) | |||||
Settlements with taxing authorities | (8,631 | ) | — | (2,310 | ) | ||||||
| | | | | | | | | | | |
Balance at December 31 | $ | 17,338 | $ | 26,564 | $ | 22,245 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Equitybased_Incentive_Plans_Ta
Equity-based Incentive Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Equity-based Incentive Plans | ||||||||||||||
Schedule of performance period transition awards | ||||||||||||||
Maximum | Award Earned | Award | ||||||||||||
Shares That | Issued/Issuable | |||||||||||||
Could Be Issued | ||||||||||||||
2012 Award: | ||||||||||||||
One-year performance period transition award | 164,291 | 95,291 | 31,764 | Mar-13 | ||||||||||
31,764 | Mar-14 | |||||||||||||
31,763 | Mar-15 | |||||||||||||
2013 Award: | ||||||||||||||
One-year performance period transition award | 173,319 | 164,653 | 54,885 | Mar-14 | ||||||||||
54,884 | Mar-15 | |||||||||||||
54,884 | Mar-16 | |||||||||||||
Two-year performance period transition award | 173,319 | 159,454 | 53,152 | Mar-15 | ||||||||||
53,151 | Mar-16 | |||||||||||||
53,151 | Mar-17 | |||||||||||||
Three-year performance period award | 173,319 | |||||||||||||
* | * | |||||||||||||
2014 Award: | ||||||||||||||
Three-year performance period award | 269,351 | * | * | |||||||||||
* | Not yet earned as performance period not complete. | |||||||||||||
Summary of the company's RSU activity and outstanding RSU's | ||||||||||||||
A summary of the company's RSU activity and outstanding RSUs as of December 31, 2014, are presented below (dollars in thousands except grant date fair value): | ||||||||||||||
Number of | Weighted Average | Aggregate Intrinsic | Unrecognized | |||||||||||
RSUs | Grant | Value | Compensation | |||||||||||
Date Fair Value | ||||||||||||||
Outstanding RSUs as of January 1, 2012 | — | $ | — | |||||||||||
Granted | 1,422,448 | $ | 11.95 | |||||||||||
Vested | (143,666 | ) | $ | 12.65 | ||||||||||
Forfeited | (9,475 | ) | $ | 11.92 | ||||||||||
| | | | | | | | | | | | | | |
As of December 31, 2012 | 1,269,307 | $ | 11.87 | $ | 17,428 | $ | 12,318 | |||||||
Granted | 1,293,140 | $ | 18.16 | |||||||||||
Vested | (170,398 | ) | $ | 17.74 | ||||||||||
Forfeited | (112,406 | ) | $ | 12.48 | ||||||||||
| | | | | | | | | | | | | | |
As of December 31, 2013 | 2,279,643 | $ | 14.97 | $ | 44,544 | $ | 22,197 | |||||||
Granted | 1,121,416 | $ | 21.82 | |||||||||||
Vested | (1,245,489 | ) | $ | 13.2 | ||||||||||
Forfeited | (144,344 | ) | $ | 15.51 | ||||||||||
| | | | | | | | | | | | | | |
As of December 31, 2014 (nonvested) | 2,011,226 | $ | 19.85 | $ | 39,702 | $ | 25,171 | |||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Schedule of stock option activity for all plans | ||||||||||||||
Number of | Weighted Average | Weighted Average | ||||||||||||
Options | Exercise Price | Grant Date | ||||||||||||
Fair Value | ||||||||||||||
Outstanding options as of January 1, 2012 | 8,602,282 | $ | 15.06 | $ | 5.25 | |||||||||
Exercised | (451,135 | ) | $ | 6.7 | $ | 2.67 | ||||||||
Forfeited | (1,077,438 | ) | $ | 21.85 | $ | 6.04 | ||||||||
| | | | | | | | | | | ||||
As of December 31, 2012 | 7,073,709 | $ | 14.56 | $ | 5.3 | |||||||||
Exercised | (3,134,953 | ) | $ | 11.02 | $ | 4.19 | ||||||||
Forfeited | (681,586 | ) | $ | 29.52 | $ | 9.01 | ||||||||
| | | | | | | | | | | ||||
As of December 31, 2013 | 3,257,170 | $ | 14.84 | $ | 5.58 | |||||||||
Exercised | (1,773,872 | ) | $ | 15.01 | $ | 5.57 | ||||||||
Forfeited | (84,783 | ) | $ | 14.98 | $ | 5.45 | ||||||||
| | | | | | | | | | | ||||
As of December 31, 2014 | 1,398,515 | $ | 14.62 | $ | 5.61 | |||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Schedule of information concerning outstanding options, by range of exercise price | ||||||||||||||
Range of Exercise Price | Exercisable | Weighted Average | Weighted Average Exercise | |||||||||||
Outstanding | Remaining | Price of Exercisable | ||||||||||||
Options | Contractual Life | Outstanding | ||||||||||||
(Years) | Options | |||||||||||||
$10 to $15 | 731,256 | 1.29 | $ | 12.95 | ||||||||||
$15 to $20 | 667,259 | 1.15 | $ | 16.46 | ||||||||||
| | | | | | | | | | | ||||
1,398,515 | ||||||||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||
Commodity option and futures contract commitments for non monetary notional amount | The following summarizes the company's commodity futures contract commitments as of December 31, 2014 (MT represents metric tons and Lbs represents pounds): | |||||||||||||||
Commodity | Long/Short | Total | ||||||||||||||
Aluminum | Long | 3,700 | MT | |||||||||||||
Aluminum | Short | 5,025 | MT | |||||||||||||
Copper | Long | 3,611 | MT | |||||||||||||
Copper | Short | 15,733 | MT | |||||||||||||
Silver | Short | 343 | Lbs | |||||||||||||
Summary of the location and amounts of the fair values and gains or losses related to derivatives included in the entity's financial statements | ||||||||||||||||
The following summarizes the location and amounts of the fair values reported on the company's balance sheets and gains or losses related to derivatives included in the company's statements of income as of and for the years ended December 31 (in thousands): | ||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||
Fair Value | Fair Value | |||||||||||||||
Balance sheet | December 31, | December 31, | December 31, | December 31, | ||||||||||||
location | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Derivative instruments designated as fair value hedges— | ||||||||||||||||
Commodity futures | Other current assets | $ | 3,180 | $ | 658 | $ | 913 | $ | 1,886 | |||||||
Derivative instruments not designated as hedges— | ||||||||||||||||
Commodity futures | Other current assets | $ | 2,132 | $ | 352 | $ | 626 | $ | 2,601 | |||||||
| | | | | | | | | | | | | | | | |
Total derivative instruments | $ | 5,312 | $ | 1,010 | $ | 1,539 | $ | 4,487 | ||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Location of gain | Amount of | Hedged items in | Location of gain (loss) | Amount of | ||||||||||||
recognized in | gain | fair value hedge | recognized in income | gain (loss) | ||||||||||||
income on | recognized in | relationships | on related hedged item | recognized in | ||||||||||||
derivatives | income on | income on | ||||||||||||||
derivatives | related hedged | |||||||||||||||
for the year | items for the | |||||||||||||||
ended | year ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2014 | |||||||||||||||
Derivatives in fair value hedging relationships— | ||||||||||||||||
Commodity futures | Costs of goods sold | $ | 2,778 | Firm commitments | Costs of goods sold | $ | 1,488 | |||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Inventory | Costs of goods sold | (3,411 | ) | |||||||||||||
| | | | | | | | | | | | | | |||
$ | (1,923 | ) | ||||||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Derivatives not designated as hedging instruments— | ||||||||||||||||
Commodity futures | Costs of goods sold | $ | 14,988 | |||||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Location of gain | Amount of | Hedged items in | Location of gain (loss) | Amount of | ||||||||||||
recognized in | gain | fair value hedge | recognized in income | gain (loss) | ||||||||||||
income on | recognized in | relationships | on related hedged item | recognized in | ||||||||||||
derivatives | income on | income on | ||||||||||||||
derivatives | related hedged | |||||||||||||||
for the year | items for the | |||||||||||||||
ended | year ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2013 | |||||||||||||||
Derivatives in fair value hedging relationships— | ||||||||||||||||
Commodity futures | Costs of goods sold | $ | 7,509 | Firm commitments | Costs of goods sold | $ | 120 | |||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Inventory | Costs of goods sold | (7,437 | ) | |||||||||||||
| | | | | | | | | | | | | | |||
$ | (7,317 | ) | ||||||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Derivatives not designated as hedging instruments— | ||||||||||||||||
Commodity futures | Costs of goods sold | $ | 2,097 | |||||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Location of loss | Amount of loss | |||||||||||||||
recognized in income | recognized in income | |||||||||||||||
on derivatives | on derivatives for | |||||||||||||||
the years ended | ||||||||||||||||
December 31, 2012 | ||||||||||||||||
Derivatives not designated as hedging instruments— | ||||||||||||||||
Commodity futures | Costs of goods sold | $ | (892 | ) | ||||||||||||
| | | | | | | ||||||||||
| | | | | | | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | ||||||||||||||
The following table sets forth financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheet and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of December 31 (in thousands): | ||||||||||||||
Total | Quoted Prices | Significant | Significant | |||||||||||
in Active | Other | Unobservable | ||||||||||||
Markets for | Observable | Inputs | ||||||||||||
Identical Assets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
2014 | ||||||||||||||
Commodity futures—financial assets | $ | 5,312 | $ | — | $ | 5,312 | $ | — | ||||||
Commodity futures—financial liabilities | 1,539 | — | 1,539 | — | ||||||||||
2013 | ||||||||||||||
Commodity futures—financial assets | $ | 1,010 | $ | — | $ | 1,010 | $ | — | ||||||
Commodity futures—financial liabilities | 4,487 | — | 4,487 | — | ||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies | |||||
Schedule of commitments for agreements with "take or pay" or other similar commitment provisions | |||||
The company's commitments for these agreements with "take or pay" or other similar commitment provisions for the years ending December 31, as follows (in thousands): | |||||
2015 | $ | 174,711 | |||
2016 | 49,177 | ||||
2017 | 20,669 | ||||
2018 | 18,658 | ||||
2019 | 19,829 | ||||
Thereafter | 83,699 | ||||
| | | | | |
$ | 366,743 | ||||
| | | | | |
| | | | | |
Transactions_with_Affiliated_C1
Transactions with Affiliated Companies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Heidtman Steel Products (Heidtman) | |||||||||||
Transactions with affiliated companies | |||||||||||
Schedule of transactions with affiliated companies | |||||||||||
Transactions with Heidtman for the years ended December 31, are as follows (in thousands): | |||||||||||
2014 | 2013 | 2012 | |||||||||
Sales | $ | 234,608 | $ | 236,075 | $ | 244,531 | |||||
Percentage of consolidated net sales | 3 | % | 3 | % | 3 | % | |||||
Accounts receivable | 35,447 | 51,760 | 38,093 | ||||||||
Purchases | 7,639 | 5,562 | 11,372 | ||||||||
Accounts payable | 236 | 391 | 800 | ||||||||
Other smaller affiliated companies | |||||||||||
Transactions with affiliated companies | |||||||||||
Schedule of transactions with affiliated companies | These transactions are as follows (in thousands): | ||||||||||
2014 | 2013 | 2012 | |||||||||
Sales | $ | 39,777 | $ | 49,748 | $ | 38,286 | |||||
Accounts receivable | 7,543 | 4,632 | 4,771 | ||||||||
Purchases | 279,177 | 111,048 | 238,114 | ||||||||
Accounts payable | 21,029 | 9,936 | 14,344 | ||||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases | |||||
Schedule of future minimum payments of non-cancelable operating leases | |||||
At December 31, 2014, future minimum payments for all non-cancelable operating leases with an initial or remaining term of one year or more are as follows (in thousands): | |||||
2015 | $ | 10,465 | |||
2016 | 7,824 | ||||
2017 | 5,059 | ||||
2018 | 4,743 | ||||
2019 | 4,204 | ||||
Thereafter | 8,294 | ||||
| | | | | |
$ | 40,589 | ||||
| | | | | |
| | | | | |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Information | ||||||||||||||||||||
Schedule of operating segment results | ||||||||||||||||||||
The company's segment results for the years ended December 31, are as follows (in thousands): | ||||||||||||||||||||
For the Year Ended December 31, 2014 | Steel | Metals | Steel | Other | Eliminations | Consolidated | ||||||||||||||
Operations | Recycling / | Fabrication | ||||||||||||||||||
Ferrous | Operations | |||||||||||||||||||
Resources | ||||||||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 5,300,762 | $ | 2,246,069 | $ | 631,750 | $ | 94,377 | $ | — | $ | 8,272,958 | ||||||||
External Non-U.S. | 240,981 | 240,900 | — | 1,113 | — | 482,994 | ||||||||||||||
Other segments | 279,835 | 1,282,272 | 58 | 27,496 | (1,589,661 | ) | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
5,821,578 | 3,769,241 | 631,808 | 122,986 | (1,589,661 | ) | 8,755,952 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | 671,607 | -308,730 | -7 | 51,894 | -98,879 | -1 | 4,428 | -2 | 320,320 | |||||||||||
Income (loss) before income taxes | 602,651 | -335,974 | -7 | 45,376 | -151,678 | -8 | 4,428 | 164,803 | ||||||||||||
Depreciation and amortization | 139,761 | 108,743 | 9,712 | 5,313 | (204 | ) | 263,325 | |||||||||||||
Capital expenditures | 61,426 | 46,374 | 3,027 | 958 | — | 111,785 | ||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
Assets | 4,406,402 | 2,169,902 | 301,316 | 639,844 | -3 | -206,437 | -4 | 7,311,027 | ||||||||||||
Liabilities | 768,047 | 574,850 | 42,234 | 3,200,497 | -5 | -196,468 | -6 | 4,389,160 | ||||||||||||
Footnotes related to the year ended December 31, 2014 segment results (in millions): | ||||||||||||||||||||
-1 | Corporate SG&A | $ | (42.0 | ) | -2 | Gross profit increase from intra-company sales | $ | 4.4 | ||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Company-wide equity-based compensation | (22.8 | ) | ||||||||||||||||||
Profit sharing | (36.3 | ) | ||||||||||||||||||
Other, net | 2.2 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | (98.9 | ) | ||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
267.8 | (60.3 | |||||||||||||||||||
-3 | Cash and equivalents | $ | -4 | Elimination of intra-company receivables | $ | ) | ||||||||||||||
Accounts receivable | 10 | Elimination of intra-company debt | (137.1 | ) | ||||||||||||||||
Inventories | 21 | Other | (9.0 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Deferred income taxes | 35.4 | $ | (206.4 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Property, plant and equipment, net | 68.9 | |||||||||||||||||||
Debt issuance costs | 42 | |||||||||||||||||||
Intra-company debt | 137.1 | |||||||||||||||||||
Other | 57.6 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 639.8 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
50.7 | (60.8 | |||||||||||||||||||
-5 | Accounts payable | $ | -6 | Elimination of intra-company payables | $ | ) | ||||||||||||||
Income taxes payable | 6.1 | Elimination of intra-company debt | (137.1 | ) | ||||||||||||||||
Accrued interest | 50.2 | Other | 1.4 | |||||||||||||||||
| | | | | | | | | | | | | | |||||||
Accrued profit sharing | 36.8 | $ | (196.5 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Debt | 2,953.30 | |||||||||||||||||||
Deferred income taxes | 71.4 | |||||||||||||||||||
Other | 32 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 3,200.50 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
-7 | Includes $260.0 million of impairment charges associated with the Minnesota ironmaking operations. | -8 | Includes $25.2 million of acquisition and bridge financing costs associated with the acquisition of Columbus. | |||||||||||||||||
For the Year Ended December 31, 2013 | Steel | Metals | Steel | Other | Eliminations | Consolidated | ||||||||||||||
Operations | Recycling / | Fabrication | ||||||||||||||||||
Ferrous | Operations | |||||||||||||||||||
Resources | ||||||||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 4,256,077 | $ | 2,173,863 | $ | 438,254 | $ | 87,532 | $ | — | $ | 6,955,726 | ||||||||
External Non-U.S. | 205,380 | 210,978 | — | 840 | — | 417,198 | ||||||||||||||
Other segments | 223,713 | 1,173,878 | 1,401 | 26,954 | (1,425,946 | ) | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
4,685,170 | 3,558,719 | 439,655 | 115,326 | (1,425,946 | ) | 7,372,924 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | 504,384 | (52,468 | ) | 7,003 | -71,446 | -1 | -948 | -2 | 386,525 | |||||||||||
Income (loss) before income taxes | 449,405 | (84,826 | ) | 827 | (101,628 | ) | (948 | ) | 262,830 | |||||||||||
Depreciation and amortization | 106,603 | 109,847 | 8,736 | 5,946 | (204 | ) | 230,928 | |||||||||||||
Capital expenditures | 121,835 | 60,678 | 2,166 | 2,164 | — | 186,843 | ||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Assets | 2,642,866 | 2,549,626 | 270,215 | 686,594 | -3 | -216,295 | -4 | 5,933,006 | ||||||||||||
Liabilities | 563,924 | 588,232 | 22,704 | 2,349,722 | -5 | -203,945 | -6 | 3,320,637 | ||||||||||||
Footnotes related to the twelve months ended December 31, 2013 segment results (in millions): | ||||||||||||||||||||
-1 | Corporate SG&A | $ | (37.3 | ) | -2 | Gross profit decrease from intra-company sales | $ | (0.9 | ) | |||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Company-wide equity-based compensation | (13.9 | ) | ||||||||||||||||||
Profit sharing | (23.1 | ) | ||||||||||||||||||
Other, net | 2.9 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | (71.4 | ) | ||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
325.7 | (43.5 | |||||||||||||||||||
-3 | Cash and equivalents | $ | -4 | Elimination of intra-company receivables | $ | ) | ||||||||||||||
Accounts receivable | 8.5 | Elimination of intra-company debt | (159.3 | ) | ||||||||||||||||
Inventories | 10.4 | Other | (13.5 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Deferred income taxes | 23.2 | $ | (216.3 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Property, plant and equipment, net | 72.5 | |||||||||||||||||||
Debt issuance costs | 26 | |||||||||||||||||||
Intra-company debt | 159.3 | |||||||||||||||||||
Other | 61 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 686.6 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
36.3 | (43.9 | |||||||||||||||||||
-5 | Accounts payable | $ | -6 | Elimination of intra-company payables | $ | ) | ||||||||||||||
Income taxes payable | 4 | Elimination of intra-company debt | (159.3 | ) | ||||||||||||||||
Accrued interest | 31.2 | Other | (0.8 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Accrued profit sharing | 23.4 | $ | (204.0 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Debt | 2,038.30 | |||||||||||||||||||
Deferred income taxes | 190.2 | |||||||||||||||||||
Other | 26.3 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 2,349.70 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
For the Year Ended December 31, 2012 | Steel | Metals | Steel | Other | Eliminations | Consolidated | ||||||||||||||
Operations | Recycling / | Fabrication | ||||||||||||||||||
Ferrous | Operations | |||||||||||||||||||
Resources | ||||||||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 4,294,437 | $ | 2,116,537 | $ | 371,084 | $ | 69,307 | $ | — | $ | 6,851,365 | ||||||||
External Non-U.S. | 212,351 | 226,061 | — | 457 | — | 438,869 | ||||||||||||||
Other segments | 194,320 | 1,269,198 | 322 | 17,698 | (1,481,538 | ) | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
4,701,108 | 3,611,796 | 371,406 | 87,462 | (1,481,538 | ) | 7,290,234 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Operating income (loss) | 495,640 | (36,508 | ) | 2,114 | -66,829 | -1 | -3,252 | -2 | 391,165 | |||||||||||
Income (loss) before income taxes | 425,509 | (70,433 | ) | (4,580 | ) | (143,178 | ) | (3,252 | ) | 204,066 | ||||||||||
Depreciation and amortization | 104,222 | 103,993 | 8,025 | 9,180 | (204 | ) | 225,216 | |||||||||||||
Capital expenditures | 55,786 | 159,768 | 5,735 | 2,236 | — | 223,525 | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||
Assets | 2,485,235 | 2,568,233 | 242,747 | 714,069 | -3 | -194,868 | -4 | 5,815,416 | ||||||||||||
Liabilities | 525,351 | 484,017 | 15,983 | 2,497,750 | -5 | -184,341 | -6 | 3,338,760 | ||||||||||||
Footnotes related to the twelve months ended December 31, 2012 segment results (in millions): | ||||||||||||||||||||
-1 | Corporate SG&A | $ | (32.3 | ) | -2 | Gross profit decrease from intra-company sales | $ | (3.3 | ) | |||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Company-wide equity-based compensation | (8.3 | ) | ||||||||||||||||||
Profit sharing | (20.5 | ) | ||||||||||||||||||
Other, net | (5.7 | ) | ||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | (66.8 | ) | ||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
327.1 | (41.4 | |||||||||||||||||||
-3 | Cash and equivalents | $ | -4 | Elimination of intra-company receivables | $ | ) | ||||||||||||||
Investments in short-term commercial paper | 31.5 | Elimination of intra-company debt | (141.1 | ) | ||||||||||||||||
Accounts receivable | 8.7 | Other | (12.4 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Inventories | 11.5 | $ | (194.9 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Deferred income taxes | 23.4 | |||||||||||||||||||
Property, plant and equipment, net | 75.5 | |||||||||||||||||||
Debt issuance costs | 27.9 | |||||||||||||||||||
Intra-company debt | 141.1 | |||||||||||||||||||
Other | 67.4 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 714.1 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
32.2 | (41.7 | |||||||||||||||||||
-5 | Accounts payable | $ | -6 | Elimination of intra-company payables | $ | ) | ||||||||||||||
Income taxes payable | 17.1 | Elimination of intra-company debt | (141.1 | ) | ||||||||||||||||
Accrued interest | 35.1 | Other | (1.5 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
Accrued profit sharing | 20.7 | $ | (184.3 | ) | ||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Debt | 2,152.20 | |||||||||||||||||||
Deferred income taxes | 218.2 | |||||||||||||||||||
Other | 22.3 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
$ | 2,497.80 | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | |||||||
Condensed_Consolidating_Inform1
Condensed Consolidating Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Condensed Consolidating Information | |||||||||||||||||
Schedule of Condensed Consolidating Balance Sheets | |||||||||||||||||
Condensed Consolidating Balance Sheets (in thousands) | |||||||||||||||||
As of December 31, 2014 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Cash and equivalents | $ | 265,313 | $ | 81,690 | $ | 14,360 | $ | — | $ | 361,363 | |||||||
Accounts receivable, net | 321,493 | 1,176,849 | 44,696 | (640,213 | ) | 902,825 | |||||||||||
Inventories | 662,970 | 862,796 | 94,916 | (2,263 | ) | 1,618,419 | |||||||||||
Other current assets | 94,634 | 8,416 | 6,577 | (18,469 | ) | 91,158 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total current assets | 1,344,410 | 2,129,751 | 160,549 | (660,945 | ) | 2,973,765 | |||||||||||
Property, plant and equipment, net | 1,002,407 | 1,826,208 | 297,505 | (2,214 | ) | 3,123,906 | |||||||||||
Intangible assets, net | — | 370,669 | — | — | 370,669 | ||||||||||||
Goodwill | — | 745,158 | — | — | 745,158 | ||||||||||||
Other assets, including investments in subs | 3,900,691 | 24,810 | 6,635 | (3,834,607 | ) | 97,529 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total assets | $ | 6,247,508 | $ | 5,096,596 | $ | 464,689 | $ | (4,497,766 | ) | $ | 7,311,027 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Accounts payable | 151,517 | 371,037 | 98,886 | (110,384 | 511,056 | ||||||||||||
$ | $ | $ | $ | ) | $ | ||||||||||||
Accrued expenses | 191,433 | 166,101 | 11,695 | (76,163 | ) | 293,066 | |||||||||||
Current maturities of long-term debt | 13,073 | 777 | 73,767 | (41,157 | ) | 46,460 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 356,023 | 537,915 | 184,348 | (227,704 | ) | 850,582 | |||||||||||
Long-term debt | 2,942,360 | 624 | 158,665 | (123,943 | ) | 2,977,706 | |||||||||||
Other liabilities | 36,110 | 1,807,989 | 28,719 | (1,311,946 | ) | 560,872 | |||||||||||
Redeemable noncontrolling interests | 126,340 | 126,340 | |||||||||||||||
— | — | — | |||||||||||||||
Common stock | 635 | 1,727,859 | 18,121 | (1,745,980 | 635 | ||||||||||||
) | |||||||||||||||||
Treasury stock | (398,898 | ) | — | — | — | (398,898 | ) | ||||||||||
Additional paid-in-capital | 1,083,435 | 117,737 | 635,156 | (752,893 | ) | 1,083,435 | |||||||||||
Retained earnings (deficit) | 2,227,843 | 904,472 | (569,172 | ) | (335,300 | ) | 2,227,843 | ||||||||||
| | | | | | | | | | | | | | | | | |
Total Steel Dynamics, Inc. equity | 2,913,015 | 2,750,068 | 84,105 | (2,834,173 | ) | 2,913,015 | |||||||||||
Noncontrolling interests | — | — | (117,488 | ) | — | (117,488 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Total equity | 2,913,015 | 2,750,068 | (33,383 | ) | (2,834,173 | ) | 2,795,527 | ||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities and equity | $ | 6,247,508 | $ | 5,096,596 | $ | 464,689 | $ | (4,497,766 | ) | $ | 7,311,027 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
As of December 31, 2013 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Cash and equivalents | $ | 320,866 | $ | 61,148 | $ | 13,142 | $ | — | $ | 395,156 | |||||||
Accounts receivable, net | 309,691 | 874,707 | 32,018 | (495,816 | ) | 720,600 | |||||||||||
Inventories | 673,763 | 557,640 | 91,199 | (7,855 | ) | 1,314,747 | |||||||||||
Other current assets | 50,228 | 8,399 | 3,259 | (18,755 | ) | 43,131 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total current assets | 1,354,548 | 1,501,894 | 139,618 | (522,426 | ) | 2,473,634 | |||||||||||
Property, plant and equipment, net | 1,046,093 | 619,617 | 562,843 | (2,419 | ) | 2,226,134 | |||||||||||
Intangible assets, net | — | 386,159 | — | — | 386,159 | ||||||||||||
Goodwill | — | 731,996 | — | — | 731,996 | ||||||||||||
Other assets, including investments in subs | 2,630,411 | 21,789 | 8,092 | (2,545,209 | ) | 115,083 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total assets | $ | 5,031,052 | $ | 3,261,455 | $ | 710,553 | $ | (3,070,054 | ) | $ | 5,933,006 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Accounts payable | 160,255 | 258,406 | 60,987 | (64,716 | 414,932 | ||||||||||||
$ | $ | $ | $ | ) | $ | ||||||||||||
Accrued expenses | 142,055 | 115,182 | 10,694 | (49,229 | ) | 218,702 | |||||||||||
Current maturities of long-term debt | 315,521 | 300 | 52,163 | (26,440 | ) | 341,544 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 617,831 | 373,888 | 123,844 | (140,385 | ) | 975,178 | |||||||||||
Long-term debt | 1,725,433 | — | 204,385 | (163,773 | ) | 1,766,045 | |||||||||||
Other liabilities | 140,465 | 1,986,260 | 34,895 | (1,582,206 | ) | 579,414 | |||||||||||
Redeemable noncontrolling interest | 116,514 | 116,514 | |||||||||||||||
— | — | — | |||||||||||||||
Common stock | 645 | 33,896 | 18,121 | (52,017 | 645 | ||||||||||||
) | |||||||||||||||||
Treasury stock | (718,529 | ) | — | — | — | (718,529 | ) | ||||||||||
Additional paid-in-capital | 1,085,694 | 117,737 | 552,946 | (670,683 | ) | 1,085,694 | |||||||||||
Retained earnings (deficit) | 2,179,513 | 749,674 | (288,684 | ) | (460,990 | ) | 2,179,513 | ||||||||||
| | | | | | | | | | | | | | | | | |
Total Steel Dynamics, Inc. equity | 2,547,323 | 901,307 | 282,383 | (1,183,690 | ) | 2,547,323 | |||||||||||
Noncontrolling interests | — | — | (51,468 | ) | — | (51,468 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Total equity | 2,547,323 | 901,307 | 230,915 | (1,183,690 | ) | 2,495,855 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities and equity | $ | 5,031,052 | $ | 3,261,455 | $ | 710,553 | $ | (3,070,054 | ) | $ | 5,933,006 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Schedule of Condensed Consolidating Statements of Operations | |||||||||||||||||
Condensed Consolidating Statements of Operations (in thousands) | |||||||||||||||||
For the Year Ended, December 31, 2014 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Net sales | $ | 3,904,488 | $ | 9,761,236 | $ | 527,584 | $ | (5,437,356 | ) | $ | 8,755,952 | ||||||
Costs of goods sold | 3,305,269 | 9,212,977 | 598,428 | (5,326,933 | ) | 7,789,741 | |||||||||||
| | | | | | | | | | | | | | | | | |
Gross profit (loss) | 599,219 | 548,259 | (70,844 | ) | (110,423 | ) | 966,211 | ||||||||||
Selling, general and administrative | 149,374 | 241,163 | 273,503 | (18,149 | ) | 645,891 | |||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | 449,845 | 307,096 | (344,347 | ) | (92,274 | ) | 320,320 | ||||||||||
Interest expense, net of capitalized interest | 78,442 | 56,006 | 7,745 | (4,930 | ) | 137,263 | |||||||||||
Other (income) expense, net | 18,976 | (23 | ) | (5,629 | ) | 4,930 | 18,254 | ||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income taxes and equity in net loss of subsidiaries | 352,427 | 251,113 | (346,463 | ) | (92,274 | ) | 164,803 | ||||||||||
Income taxes (benefit) | 14,064 | 96,315 | (1,095 | ) | (36,131 | ) | 73,153 | ||||||||||
| | | | | | | | | | | | | | | | | |
338,363 | 154,798 | (345,368 | ) | (56,143 | ) | 91,650 | |||||||||||
Equity in net loss of subsidiaries | (181,339 | ) | — | — | 181,339 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 65,374 | — | 65,374 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Net income (loss) attributable to Steel Dynamics, Inc. | $ | 157,024 | $ | 154,798 | $ | (279,994 | ) | $ | 125,196 | $ | 157,024 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
For the Year Ended, December 31, 2013 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Net sales | $ | 3,466,691 | $ | 8,219,499 | $ | 347,288 | $ | (4,660,554 | ) | $ | 7,372,924 | ||||||
Costs of goods sold | 2,981,591 | 7,805,367 | 440,064 | (4,573,242 | ) | 6,653,780 | |||||||||||
| | | | | | | | | | | | | | | | | |
Gross profit (loss) | 485,100 | 414,132 | (92,776 | ) | (87,312 | ) | 719,144 | ||||||||||
Selling, general and administrative | 118,975 | 219,531 | 10,548 | (16,435 | ) | 332,619 | |||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | 366,125 | 194,601 | (103,324 | ) | (70,877 | ) | 386,525 | ||||||||||
Interest expense, net of capitalized interest | 81,361 | 43,879 | 7,259 | (4,771 | ) | 127,728 | |||||||||||
Other (income) expense, net | (7,358 | ) | 3,401 | (4,847 | ) | 4,771 | (4,033 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income taxes and equity in net income of subsidiaries | 292,122 | 147,321 | (105,736 | ) | (70,877 | ) | 262,830 | ||||||||||
Income taxes | 63,670 | 54,448 | 6,406 | (25,210 | ) | 99,314 | |||||||||||
| | | | | | | | | | | | | | | | | |
228,452 | 92,873 | (112,142 | ) | (45,667 | ) | 163,516 | |||||||||||
Equity in net loss of subsidiaries | (39,138 | ) | — | — | 39,138 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 25,798 | — | 25,798 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Net income (loss) attributable to Steel Dynamics, Inc. | $ | 189,314 | $ | 92,873 | $ | (86,344 | ) | $ | (6,529 | ) | $ | 189,314 | |||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
For the Year Ended, December 31, 2012 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Net sales | $ | 3,431,978 | $ | 8,322,995 | $ | 177,527 | $ | (4,642,266 | ) | $ | 7,290,234 | ||||||
Costs of goods sold | 2,977,756 | 7,906,392 | 257,604 | (4,571,416 | ) | 6,570,336 | |||||||||||
| | | | | | | | | | | | | | | | | |
Gross profit (loss) | 454,222 | 416,603 | (80,077 | ) | (70,850 | ) | 719,898 | ||||||||||
Selling, general and administrative | 102,142 | 218,515 | 24,081 | (16,005 | ) | 328,733 | |||||||||||
| | | | | | | | | | | | | | | | | |
Operating income (loss) | 352,080 | 198,088 | (104,158 | ) | (54,845 | ) | 391,165 | ||||||||||
Interest expense, net of capitalized interest | 104,058 | 53,186 | 6,630 | (5,289 | ) | 158,585 | |||||||||||
Other (income) expense, net | 28,677 | (1,531 | ) | (3,921 | ) | 5,289 | 28,514 | ||||||||||
| | | | | | | | | | | | | | | | | |
Income (loss) before income taxes and equity in net income of subsidiaries | 219,345 | 146,433 | (106,867 | ) | (54,845 | ) | 204,066 | ||||||||||
Income taxes | 26,611 | 51,011 | 247 | (16,084 | ) | 61,785 | |||||||||||
| | | | | | | | | | | | | | | | | |
192,734 | 95,422 | (107,114 | ) | (38,761 | ) | 142,281 | |||||||||||
Equity in net income of subsidiaries | (29,183 | ) | — | — | 29,183 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 21,270 | — | 21,270 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Net income (loss) attributable to Steel Dynamics, Inc. | $ | 163,551 | $ | 95,422 | $ | (85,844 | ) | $ | (9,578 | ) | $ | 163,551 | |||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Schedule of Condensed Consolidating Statements of Cash Flows | |||||||||||||||||
Condensed Consolidating Statements of Cash Flows (in thousands) | |||||||||||||||||
For the Year Ended, December 31, 2014 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 400,204 | $ | 279,080 | $ | (38,666 | ) | $ | (23,046 | ) | $ | 617,572 | |||||
Net cash used in investing activities | (1,690,363 | ) | (8,883 | ) | (23,206 | ) | (24,815 | ) | (1,747,267 | ) | |||||||
Net cash provided by (used in) financing activities | 1,234,606 | (249,655 | ) | 63,090 | 47,861 | 1,095,902 | |||||||||||
| | | | | | | | | | | | | | | | | |
Increase (decrease) in cash and equivalents | (55,553 | ) | 20,542 | 1,218 | — | (33,793 | ) | ||||||||||
Cash and equivalents at beginning of period | 320,866 | 61,148 | 13,142 | — | 395,156 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and equivalents at end of period | $ | 265,313 | $ | 81,690 | $ | 14,360 | $ | — | $ | 361,363 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
For the Year Ended, December 31, 2013 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 190,616 | $ | 190,885 | $ | (80,525 | ) | $ | 11,199 | $ | 312,175 | ||||||
Net cash used in investing activities | (170,561 | ) | (41,415 | ) | (23,086 | ) | 82,217 | (152,845 | ) | ||||||||
Net cash provided by (used in) financing activities | (21,896 | ) | (129,997 | ) | 105,218 | (93,416 | ) | (140,091 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Increase (decrease) in cash and equivalents | (1,841 | ) | 19,473 | 1,607 | — | 19,239 | |||||||||||
Cash and equivalents at beginning of period | 322,707 | 41,675 | 11,535 | — | 375,917 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and equivalents at end of period | $ | 320,866 | $ | 61,148 | $ | 13,142 | $ | — | $ | 395,156 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
For the Year Ended, December 31, 2012 | Parent | Guarantors | Combined | Consolidating | Total | ||||||||||||
Non-Guarantors | Adjustments | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 306,613 | $ | 209,579 | $ | (76,363 | ) | $ | 5,865 | $ | 445,694 | ||||||
Net cash used in investing activities | (104,242 | ) | (107,274 | ) | (95,314 | ) | 115,229 | (191,601 | ) | ||||||||
Net cash provided by (used in) financing activities | (180,737 | ) | (119,329 | ) | 152,223 | (121,094 | ) | (268,937 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Increase (decrease) in cash and equivalents | 21,634 | (17,024 | ) | (19,454 | ) | — | (14,844 | ) | |||||||||
Cash and equivalents at beginning of period | 301,073 | 58,699 | 30,989 | — | 390,761 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and equivalents at end of period | $ | 322,707 | $ | 41,675 | $ | 11,535 | $ | — | $ | 375,917 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Quarterly_Financial_Informatio1
Quarterly Financial Information (unaudited, in thousands, except per share data) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Quarterly Financial Information (unaudited, in thousands, except per share data) | ||||||||||||||
Schedule of quarterly financial information | Quarterly Financial Information (unaudited, in thousands, except per share data) | |||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||||||||
2014:00:00 | ||||||||||||||
Net sales | $ | 1,830,082 | $ | 2,069,761 | $ | 2,339,016 | $ | 2,517,093 | ||||||
Gross profit | 163,304 | 222,771 | 288,512 | 291,624 | ||||||||||
Operating income (loss) | 80,932 | 131,905 | 188,643 | (81,160 | ) | |||||||||
Net income (loss) | 33,698 | 66,341 | 87,657 | (96,046 | ) | |||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | 38,579 | 72,303 | 91,173 | (45,031 | ) | |||||||||
Earnings (loss) per share: | ||||||||||||||
Basic | 0.17 | 0.32 | 0.38 | (.19 | ) | |||||||||
Diluted | 0.17 | 0.31 | 0.38 | (.19 | ) | |||||||||
2013:00:00 | ||||||||||||||
Net sales | $ | 1,795,696 | $ | 1,801,340 | $ | 1,911,738 | $ | 1,864,150 | ||||||
Gross profit | 176,264 | 147,692 | 197,192 | 197,996 | ||||||||||
Operating income | 96,232 | 69,198 | 113,273 | 107,822 | ||||||||||
Net income | 41,252 | 23,273 | 51,090 | 47,901 | ||||||||||
Net income attributable to Steel Dynamics, Inc. | 48,215 | 28,958 | 57,486 | 54,655 | ||||||||||
Earnings per share: | ||||||||||||||
Basic | 0.22 | 0.13 | 0.26 | 0.25 | ||||||||||
Diluted | 0.21 | 0.13 | 0.25 | 0.24 | ||||||||||
Description_of_the_Business_an3
Description of the Business and Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segment | |||||||||||
agreement | |||||||||||
location | |||||||||||
employee | |||||||||||
Description of the Business and Summary of Significant Accounting Policies | |||||||||||
Number of reporting segments | 3 | ||||||||||
Workforce represented by collective bargaining agreements (as a percent) | 9.00% | ||||||||||
Number of collective bargaining agreements that expire | 1 | ||||||||||
Number of employees under a collective bargaining agreement that expire | 35 | ||||||||||
Number of locations subject to collective bargaining agreements that expire | 1 | ||||||||||
Segment Reporting Information | |||||||||||
Net income | ($96,046) | $87,657 | $66,341 | $33,698 | $47,901 | $51,090 | $23,273 | $41,252 | $91,650 | $163,516 | $142,281 |
Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share) | ($0.19) | $0.38 | $0.31 | $0.17 | $0.24 | $0.25 | $0.13 | $0.21 | $0.67 | $0.83 | $0.73 |
Redeemable noncontrolling interests | 126,340 | 116,514 | 126,340 | 116,514 | |||||||
Minnesota Ironmaking Operations | |||||||||||
Segment Reporting Information | |||||||||||
Net income | -179,100 | ||||||||||
Subsidiaries | Mesabi Nugget | |||||||||||
Segment Reporting Information | |||||||||||
Number of years subsequent to achievement of performance measures | 3 years | ||||||||||
Steel Operations | |||||||||||
Segment Reporting Information | |||||||||||
Number of downstream finishing facilities | 8 | ||||||||||
Percentage of external net sales | 63.00% | 61.00% | 62.00% | ||||||||
Steel Operations | The Techs Operations | |||||||||||
Segment Reporting Information | |||||||||||
Number of galvanizing lines | 3 | ||||||||||
Metals Recycling/Ferrous Resources | |||||||||||
Segment Reporting Information | |||||||||||
Percentage of external net sales | 28.00% | 32.00% | 32.00% | ||||||||
Number of ironmaking initiatives | 2 | ||||||||||
Metals Recycling/Ferrous Resources | Mesabi Nugget | |||||||||||
Segment Reporting Information | |||||||||||
Percentage of ownership interest in facility | 82.00% | ||||||||||
Redeemable noncontrolling interests | 111,200 | 101,400 | 111,200 | 101,400 | |||||||
Metals Recycling/Ferrous Resources | Mining Resources | |||||||||||
Segment Reporting Information | |||||||||||
Percentage of ownership interest in facility | 81.00% | ||||||||||
Redeemable noncontrolling interests | $15,100 | $15,100 | $15,100 | $15,100 | |||||||
Steel Fabrication Operations | |||||||||||
Segment Reporting Information | |||||||||||
Percentage of external net sales | 7.00% | 6.00% | 5.00% | ||||||||
Number of plants | 6 |
Description_of_the_Business_an4
Description of the Business and Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Inventories | |||
Raw materials | $764,883,000 | $660,384,000 | |
Supplies | 374,599,000 | 293,533,000 | |
Work in progress | 128,882,000 | 84,710,000 | |
Finished goods | 350,055,000 | 276,120,000 | |
Total inventories | 1,618,419,000 | 1,314,747,000 | |
Property, plant and equipment | |||
Depreciation expense | 229,400,000 | 192,400,000 | 179,900,000 |
Property, plant and equipment | 5,010,039,000 | 3,939,814,000 | |
Less accumulated depreciation | 1,886,133,000 | 1,713,680,000 | |
Property, plant and equipment, net | 3,123,906,000 | 2,226,134,000 | |
Investments | |||
Investments in short-term commercial paper treated as trading securities | 0 | 0 | |
Investments | 18,400,000 | 17,800,000 | |
Minimum | |||
Investments | |||
Ownership percentage of equity method investment | 49.00% | ||
Maximum | |||
Investments | |||
Ownership percentage of equity method investment | 50.00% | ||
Land and improvements | |||
Property, plant and equipment | |||
Property, plant and equipment | 334,583,000 | 293,083,000 | |
Buildings and improvements | |||
Property, plant and equipment | |||
Property, plant and equipment | 713,837,000 | 550,226,000 | |
Buildings and improvements | Minimum | |||
Property, plant and equipment | |||
Property, plant and equipment useful life | 10 years | ||
Buildings and improvements | Maximum | |||
Property, plant and equipment | |||
Property, plant and equipment useful life | 40 years | ||
Plant, machinery and equipment | |||
Property, plant and equipment | |||
Property, plant and equipment | 3,898,275,000 | 2,942,684,000 | |
Plant, machinery and equipment | Minimum | |||
Property, plant and equipment | |||
Property, plant and equipment useful life | 3 years | ||
Plant, machinery and equipment | Maximum | |||
Property, plant and equipment | |||
Property, plant and equipment useful life | 20 years | ||
Construction in progress | |||
Property, plant and equipment | |||
Property, plant and equipment | $63,344,000 | $153,821,000 |
Description_of_the_Business_an5
Description of the Business and Summary of Significant Accounting Policies (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Sep. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | |||||
Intangible Assets | |||||
Gross assets | $612,400,000 | $612,400,000 | $601,500,000 | ||
Less accumulated amortization | 241,731,000 | 241,731,000 | 215,341,000 | ||
Net assets | 370,669,000 | 370,669,000 | 386,159,000 | ||
Amortization expense | 26,400,000 | 30,500,000 | 34,300,000 | ||
Estimated amortization expense | |||||
2015 | 24,180,000 | 24,180,000 | |||
2016 | 21,939,000 | 21,939,000 | |||
2017 | 19,157,000 | 19,157,000 | |||
2018 | 16,623,000 | 16,623,000 | |||
2019 | 15,084,000 | 15,084,000 | |||
Thereafter | 83,886,000 | 83,886,000 | |||
Total | 180,869,000 | 180,869,000 | |||
Impairment of Long-Lived Tangible and Finite-Lived Intangible Assets | |||||
Number of small joint ventures terminated | 2 | ||||
Asset impairment charges | 260,000,000 | 260,000,000 | 308,000 | 8,250,000 | |
Metals Recycling/Ferrous Resources | |||||
Impairment of Long-Lived Tangible and Finite-Lived Intangible Assets | |||||
Asset impairment charges | 46,500,000 | ||||
Weighted average | |||||
Intangible Assets | |||||
Amortization Period | 20 years | ||||
Trademarks | |||||
Intangible Assets | |||||
Gross assets | 189,800,000 | 189,800,000 | 189,800,000 | ||
Customer and scrap generator relationships | |||||
Intangible Assets | |||||
Gross assets | 419,400,000 | 419,400,000 | 408,400,000 | ||
Customer and scrap generator relationships | Minimum | |||||
Intangible Assets | |||||
Amortization Period | 10 years | ||||
Customer and scrap generator relationships | Maximum | |||||
Intangible Assets | |||||
Amortization Period | 25 years | ||||
Customer and scrap generator relationships | Weighted average | |||||
Intangible Assets | |||||
Amortization Period | 20 years | ||||
Trademarks | |||||
Intangible Assets | |||||
Gross assets | 3,200,000 | 3,200,000 | 3,200,000 | ||
Amortization Period | 12 years | ||||
Trademarks | Weighted average | |||||
Intangible Assets | |||||
Amortization Period | 12 years | ||||
Other | |||||
Intangible Assets | |||||
Gross assets | $100,000 | ||||
Amortization Period | 5 years |
Description_of_the_Business_an6
Description of the Business and Summary of Significant Accounting Policies (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill | |||
Goodwill | $745,158,000 | $731,996,000 | |
Equity-Based Compensation | |||
Compensation expense for stock options | 22,800,000 | 15,200,000 | 9,900,000 |
Omni Source - Metals Recycling/Ferrous Resources Segment | |||
Goodwill | |||
Goodwill | 456,727,000 | 463,247,000 | |
Goodwill decrease due to tax benefit related to the amortization of the component | 6,500,000 | ||
The Techs - Steel Segment | |||
Goodwill | |||
Goodwill | 142,783,000 | 142,783,000 | |
Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division - Metals Recycling/Ferrous Resources Segment | |||
Goodwill | |||
Goodwill | 95,000,000 | 95,000,000 | |
Roanoke Bar Division - Steel Segment | |||
Goodwill | |||
Goodwill | 29,041,000 | 29,041,000 | |
Columbus Flat Roll Division | |||
Goodwill | |||
Goodwill | 19,682,000 | ||
New Millennium Building Systems - Steel Fabrication Segment | |||
Goodwill | |||
Goodwill | $1,925,000 | $1,925,000 |
Description_of_the_Business_an7
Description of the Business and Summary of Significant Accounting Policies (Details 5) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 15, 2014 | Jun. 12, 2014 |
Net Income (Numerator) | |||||||||||||
Basic earnings - net income (loss) (in dollars) | ($45,031) | $91,173 | $72,303 | $38,579 | $54,655 | $57,486 | $28,958 | $48,215 | $157,024 | $189,314 | $163,551 | ||
5.125% convertible senior notes, net of tax (in dollars) | 4,327 | 9,432 | 9,432 | ||||||||||
Diluted earnings - net income (loss) (in dollars) | $161,351 | $198,746 | $172,983 | ||||||||||
Weighted average common shares outstanding (in shares) | 232,547,000 | 220,916,000 | 219,159,000 | ||||||||||
Dilutive stock options, deferred stock units, and restricted stock units (in shares) | 1,828,000 | 1,392,000 | 916,000 | ||||||||||
5.125% convertible senior notes, net of tax (in shares) | 7,703,000 | 16,688,000 | 16,549,000 | ||||||||||
Weighted average common shares outstanding - diluted (in shares) | 242,078,000 | 238,996,000 | 236,624,000 | ||||||||||
Per Share Amount | |||||||||||||
Basic earnings per share attributable to Steel Dynamics, Inc. stockholders (in dollars per share) | ($0.19) | $0.38 | $0.32 | $0.17 | $0.25 | $0.26 | $0.13 | $0.22 | $0.68 | $0.86 | $0.75 | ||
Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share) | ($0.19) | $0.38 | $0.31 | $0.17 | $0.24 | $0.25 | $0.13 | $0.21 | $0.67 | $0.83 | $0.73 | ||
5.125% convertible senior notes | |||||||||||||
Antidilutive securities excluded from computation of earnings per share amount | |||||||||||||
Stated interest rate (as a percent) | 5.13% | 5.13% | 5.13% | 5.13% | 5.13% | 5.13% | 5.13% | ||||||
Options | |||||||||||||
Antidilutive securities excluded from computation of earnings per share amount | |||||||||||||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 0 | 0 |
Description_of_the_Business_an8
Description of the Business and Summary of Significant Accounting Policies (Details 6) (Credit risk) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration of credit risk | ||
Number of institutions exposed to credit risk | 1 | |
Accounts receivable | ||
Concentration of credit risk | ||
Percentage of consolidated net accounts receivable from related party | 4.00% | 7.00% |
Acquisition_Details
Acquisition (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 16, 2014 | Dec. 31, 2014 | |
MT | ||||||
Business Acquisition Information | ||||||
Acquisition and related costs | $25,000,000 | |||||
Net assets acquired | ||||||
Goodwill | 745,158,000 | 731,996,000 | 745,158,000 | |||
Amortization of intangible assets | ||||||
Amortization of intangible assets | 27,551,000 | 31,770,000 | 35,553,000 | |||
Estimated amortization expense | ||||||
2015 | 24,180,000 | 24,180,000 | ||||
2016 | 21,939,000 | 21,939,000 | ||||
2017 | 19,157,000 | 19,157,000 | ||||
2018 | 16,623,000 | 16,623,000 | ||||
2019 | 15,084,000 | 15,084,000 | ||||
Thereafter | 83,886,000 | 83,886,000 | ||||
Total | 180,869,000 | 180,869,000 | ||||
Severstal Columbus LLC | ||||||
Business Acquisition Information | ||||||
Business acquisition percentage | 100.00% | |||||
Purchase price | 1,625,000,000 | |||||
Working capital adjustments | 44,400,000 | |||||
Additional production capacity due to acquisition (in million tons) | 3.4 | |||||
Revenue since acquisition | 638,300,000 | |||||
Pre-tax income since acquisition | 29,800,000 | |||||
Purchase accounting related expenses | 26,400,000 | |||||
Acquisition and related costs | 25,200,000 | |||||
Net assets acquired | ||||||
Current assets, net of cash acquired | 553,255,000 | |||||
Property, plant & equipment | 1,279,714,000 | |||||
Intangible assets | 15,000,000 | |||||
Goodwill | 19,682,000 | |||||
Other assets | 3,875,000 | |||||
Total assets acquired | 1,871,526,000 | |||||
Liabilities assumed | 202,077,000 | |||||
Net assets acquired | 1,669,449,000 | |||||
Amortization of intangible assets | ||||||
Intangible assets | 15,000,000 | |||||
Amortization of intangible assets | 4,400,000 | |||||
Estimated amortization expense | ||||||
2015 | 790,000 | 790,000 | ||||
2016 | 1,038,000 | 1,038,000 | ||||
2017 | 964,000 | 964,000 | ||||
2018 | 859,000 | 859,000 | ||||
2019 | 753,000 | 753,000 | ||||
Thereafter | 6,196,000 | 6,196,000 | ||||
Total | 10,600,000 | 10,600,000 | ||||
Unaudited pro forma results | ||||||
Net sales | 10,355,774,000 | 9,193,344,000 | ||||
Net Income attributable to Steel Dynamics, Inc. | 264,779,000 | 155,357,000 | ||||
Pro forma step-up inventory expense | 19,700,000 | |||||
Pro-forma backlogs | 4,000,000 | |||||
Pro forma acquisition costs | 25,200,000 | |||||
Severstal Columbus LLC | Customer and scrap generator relationships | ||||||
Amortization of intangible assets | ||||||
Intangible assets | 11,000,000 | |||||
Expected life | 15 years | |||||
Amortization of intangible assets | 400,000 | |||||
Severstal Columbus LLC | Backlogs | ||||||
Amortization of intangible assets | ||||||
Intangible assets | 4,000,000 | |||||
Expected life | 2 months | |||||
Amortization of intangible assets | 4,000,000 | |||||
Senior Notes | Severstal Columbus LLC | ||||||
Business Acquisition Information | ||||||
Issuance of Senior Notes | $1,200,000,000 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2012 | Mar. 16, 2015 | Mar. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | Nov. 30, 2014 | Jun. 15, 2014 | Jun. 12, 2014 | Feb. 13, 2015 | Sep. 30, 2014 | Mar. 31, 2013 | Apr. 30, 2013 | |
Long Term Debt | ||||||||||||
Total debt | $2,107,589,000 | $3,024,166,000 | ||||||||||
Less current maturities | 341,544,000 | 46,460,000 | ||||||||||
Long-term debt | 1,766,045,000 | 2,977,706,000 | ||||||||||
Expenses recorded related to tender offer and early payoff of Senior Notes related to tender premiums, unamortized debt issuance cost write-off, and tender expenses | 40,300,000 | |||||||||||
Senior term loan | ||||||||||||
Long Term Debt | ||||||||||||
Total debt | 247,500,000 | 250,000,000 | ||||||||||
Debt issued | 250,000,000 | 250,000,000 | ||||||||||
Senior notes due 2012 | ||||||||||||
Long Term Debt | ||||||||||||
Debt extinguished | 700,000,000 | |||||||||||
Senior notes due 2016 | ||||||||||||
Long Term Debt | ||||||||||||
Debt extinguished | 500,000,000 | |||||||||||
Term Loan maturing in 2016 | ||||||||||||
Long Term Debt | ||||||||||||
Debt issued | 275,000,000 | |||||||||||
5.125% convertible senior notes | ||||||||||||
Long Term Debt | ||||||||||||
Total debt | 287,493,000 | |||||||||||
Stated interest rate (as a percent) | 5.13% | 5.13% | 5.13% | 5.13% | 5.13% | |||||||
6 1/8% senior notes, due 2019 | ||||||||||||
Long Term Debt | ||||||||||||
Total debt | 400,000,000 | 400,000,000 | ||||||||||
Stated interest rate (as a percent) | 6.13% | 6.13% | 6.13% | |||||||||
Debt issued | 400,000,000 | |||||||||||
7 5/8% senior notes, due 2020 | ||||||||||||
Long Term Debt | ||||||||||||
Total debt | 350,000,000 | 350,000,000 | ||||||||||
Stated interest rate (as a percent) | 7.63% | 7.63% | ||||||||||
7 5/8% senior notes, due 2020 | Subsequent Event | ||||||||||||
Long Term Debt | ||||||||||||
Debt repurchased | 350,000,000 | |||||||||||
7 5/8% senior notes, due 2020 | Subsequent Event | Forecast | ||||||||||||
Long Term Debt | ||||||||||||
Redemption price of principal amount (as a percent) | 103.83% | |||||||||||
Expenses recorded related to tender offer and early payoff of Senior Notes related to tender premiums, unamortized debt issuance cost write-off, and tender expenses | 16,700,000 | |||||||||||
5.125% senior notes due 2021 | ||||||||||||
Long Term Debt | ||||||||||||
Total debt | 700,000,000 | |||||||||||
Stated interest rate (as a percent) | 5.13% | 5.13% | ||||||||||
Debt issued | 700,000,000 | |||||||||||
6 3/8% Senior Notes, due 2022 | ||||||||||||
Long Term Debt | ||||||||||||
Total debt | 350,000,000 | 350,000,000 | ||||||||||
Stated interest rate (as a percent) | 6.38% | 6.38% | ||||||||||
Debt issued | 350,000,000 | |||||||||||
5 1/4% Senior Notes due 2023 | ||||||||||||
Long Term Debt | ||||||||||||
Total debt | 400,000,000 | 400,000,000 | ||||||||||
Stated interest rate (as a percent) | 5.25% | 5.25% | 5.25% | |||||||||
Debt issued | 400,000,000 | |||||||||||
5.500% senior notes due 2024 | ||||||||||||
Long Term Debt | ||||||||||||
Total debt | 500,000,000 | |||||||||||
Stated interest rate (as a percent) | 5.50% | 5.50% | ||||||||||
Debt issued | 500,000,000 | |||||||||||
6 3/4% senior notes, due 2015 | ||||||||||||
Long Term Debt | ||||||||||||
Stated interest rate (as a percent) | 6.75% | |||||||||||
Debt repurchased | 301,700,000 | 198,300,000 | ||||||||||
Expenses recorded related to tender offer and early payoff of Senior Notes related to tender premiums, unamortized debt issuance cost write-off, and tender expenses | 2,600,000 | |||||||||||
Other obligations | ||||||||||||
Long Term Debt | ||||||||||||
Total debt | $72,596,000 | $74,166,000 |
LongTerm_Debt_Details_2
Long-Term Debt (Details 2) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2014 | Jun. 16, 2014 | Jun. 12, 2014 | Oct. 31, 2014 | Sep. 30, 2014 | Jun. 15, 2014 | |
Long Term Debt | |||||||||
Additional amount by which facility size can be increased | $750,000,000 | ||||||||
Repayments of debt | 635,578,000 | 517,978,000 | 1,258,842,000 | ||||||
Senior secured revolving credit facility | |||||||||
Long Term Debt | |||||||||
Maximum borrowing capacity of credit facility | 1,200,000,000 | 1,200,000,000 | 1,100,000,000 | ||||||
Debt instrument term | 5 years | ||||||||
Additional amount by which facility size can be increased | 750,000,000 | ||||||||
Senior term loan | |||||||||
Long Term Debt | |||||||||
Debt instrument term | 5 years | ||||||||
Debt issued | 250,000,000 | 250,000,000 | |||||||
Repayments of debt | 226,900,000 | ||||||||
5.125% senior notes due 2021 | |||||||||
Long Term Debt | |||||||||
Debt issued | 700,000,000 | ||||||||
Stated interest rate (as a percent) | 5.13% | 5.13% | |||||||
5.500% senior notes due 2024 | |||||||||
Long Term Debt | |||||||||
Debt issued | 500,000,000 | ||||||||
Stated interest rate (as a percent) | 5.50% | 5.50% | |||||||
5.125% convertible senior notes | |||||||||
Long Term Debt | |||||||||
Repayments of debt | 15,700,000 | ||||||||
Stated interest rate (as a percent) | 5.13% | 5.13% | 5.13% | 5.13% | 5.13% | ||||
Principal amount of debt converted | $271,800,000 | ||||||||
Convertible debt rate, basis for conversion | 0.584731 | ||||||||
Conversion price per share (in dollars per share) | $17.10 | ||||||||
Shares issued upon conversion | 15,893,457 |
LongTerm_Debt_Details_3
Long-Term Debt (Details 3) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Nov. 30, 2014 | Oct. 31, 2014 | Dec. 31, 2013 | |
item | ||||
Long Term Debt | ||||
Additional amount by which facility size can be increased | $750,000,000 | |||
Unpaid principal balance payment | 603,291,000 | |||
Senior secured revolving credit facility | ||||
Long Term Debt | ||||
Maximum borrowing capacity of credit facility | 1,200,000,000 | 1,200,000,000 | 1,100,000,000 | |
Additional amount by which facility size can be increased | 750,000,000 | |||
Availability on the senior secured revolver | 1,200,000,000 | |||
Outstanding letters of credit and other obligations which reduce availability | 14,500,000 | |||
Borrowings outstanding | 0 | |||
Consolidated interest coverage ratio | 6.05 | |||
Leverage ratio | 2.47 | |||
Number of months expected to be in compliance with debt covenants | 12 | |||
Senior secured revolving credit facility | Minimum | ||||
Long Term Debt | ||||
Unused commitment fee (as a percent) | 0.23% | |||
Consolidated interest coverage ratio | 2.5 | |||
Leverage ratio | 3.5 | |||
Senior secured revolving credit facility | Minimum | LIBOR | ||||
Long Term Debt | ||||
Interest rate added to the base rate (as a percent) | 1.00% | |||
Senior secured revolving credit facility | Maximum | ||||
Long Term Debt | ||||
Unused commitment fee (as a percent) | 0.38% | |||
Leverage ratio | 5 | |||
Senior secured revolving credit facility | Maximum | LIBOR | ||||
Long Term Debt | ||||
Interest rate added to the base rate (as a percent) | 2.00% | |||
Senior secured revolving credit facility | Maximum | Prime | ||||
Long Term Debt | ||||
Interest rate added to the base rate (as a percent) | 1.00% | |||
Senior term loan | ||||
Long Term Debt | ||||
Debt issued | 250,000,000 | 250,000,000 | ||
Unpaid principal balance payment | $190,600,000 | |||
Interest rate on debt instrument | 1.78% | |||
Senior term loan | Minimum | ||||
Long Term Debt | ||||
Required quarterly principal payments as a percentage of original principal amount | 1.25% |
LongTerm_Debt_Details_4
Long-Term Debt (Details 4) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Mar. 31, 2013 |
tranche | |||||
Long Term Debt | |||||
Outstanding Balance | 3,024,166 | $2,107,589 | |||
Senior Notes | |||||
Long Term Debt | |||||
Number of tranches of senior unsecured notes outstanding | 6 | ||||
Senior Notes | Maximum | |||||
Long Term Debt | |||||
Maximum redemption of debt instrument (as a percent) | 35.00% | ||||
6 1/8% senior notes, due 2019 | |||||
Long Term Debt | |||||
Outstanding Balance | 400,000 | 400,000 | |||
Stated interest rate (as a percent) | 6.13% | 6.13% | 6.13% | ||
6 1/8% senior notes, due 2019 | Debt redemption before August 15, 2015 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 106.13% | ||||
6 1/8% senior notes, due 2019 | Debt redemption August 15, 2016 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 103.06% | ||||
6 1/8% senior notes, due 2019 | Debt redemption August 15, 2017 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 101.53% | ||||
6 1/8% senior notes, due 2019 | Debt redemption August 15, 2018 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 100.00% | ||||
7 5/8% senior notes, due 2020 | |||||
Long Term Debt | |||||
Outstanding Balance | 350,000 | 350,000 | |||
Stated interest rate (as a percent) | 7.63% | 7.63% | |||
7 5/8% senior notes, due 2020 | Debt redemption March 15, 2015 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 103.81% | ||||
7 5/8% senior notes, due 2020 | Debt redemption March 15, 2016 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 102.54% | ||||
7 5/8% senior notes, due 2020 | Debt redemption March 15, 2017 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 101.27% | ||||
7 5/8% senior notes, due 2020 | Debt redemption March 15, 2018 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 100.00% | ||||
5.125% senior notes due 2021 | |||||
Long Term Debt | |||||
Outstanding Balance | 700,000 | ||||
Stated interest rate (as a percent) | 5.13% | 5.13% | |||
5.125% senior notes due 2021 | Debt Redemption before October 1, 2017 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 105.13% | ||||
5.125% senior notes due 2021 | Debt Redemption October 1, 2017 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 102.56% | ||||
5.125% senior notes due 2021 | Debt Redemption October 1, 2018 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 101.28% | ||||
5.125% senior notes due 2021 | Debt Redemption October 1, 2019 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 100.00% | ||||
6 3/8% Senior Notes, due 2022 | |||||
Long Term Debt | |||||
Outstanding Balance | 350,000 | 350,000 | |||
Stated interest rate (as a percent) | 6.38% | 6.38% | |||
6 3/8% Senior Notes, due 2022 | Debt redemption before August 15, 2015 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 106.38% | ||||
6 3/8% Senior Notes, due 2022 | Debt redemption August 15, 2017 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 103.19% | ||||
6 3/8% Senior Notes, due 2022 | Debt redemption August 15, 2018 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 102.13% | ||||
6 3/8% Senior Notes, due 2022 | Debt redemption August 15, 2019 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 101.06% | ||||
6 3/8% Senior Notes, due 2022 | Debt redemption August 15, 2020 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 100.00% | ||||
5 1/4% Senior Notes due 2023 | |||||
Long Term Debt | |||||
Outstanding Balance | 400,000 | 400,000 | |||
Stated interest rate (as a percent) | 5.25% | 5.25% | 5.25% | ||
5 1/4% Senior Notes due 2023 | Debt redemption before April 15, 2016 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 105.25% | ||||
5 1/4% Senior Notes due 2023 | Debt redemption April 15, 2018 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 102.63% | ||||
5 1/4% Senior Notes due 2023 | Debt redemption April 15, 2019 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 101.75% | ||||
5 1/4% Senior Notes due 2023 | Debt redemption April 15, 2020 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 100.88% | ||||
5 1/4% Senior Notes due 2023 | Debt redemption April 15, 2021 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 100.00% | ||||
5.500% senior notes due 2024 | |||||
Long Term Debt | |||||
Outstanding Balance | 500,000 | ||||
Stated interest rate (as a percent) | 5.50% | 5.50% | |||
5.500% senior notes due 2024 | Debt Redemption before October 1, 2017 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 105.50% | ||||
5.500% senior notes due 2024 | Debt Redemption October 1, 2019 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 102.75% | ||||
5.500% senior notes due 2024 | Debt Redemption October 1, 2020 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 101.83% | ||||
5.500% senior notes due 2024 | Debt Redemption October 1, 2021 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 100.92% | ||||
5.500% senior notes due 2024 | Debt Redemption October 1, 2022 | |||||
Long Term Debt | |||||
Redemption price of debt instrument (as a percent) | 100.00% |
LongTerm_Debt_Details_5
Long-Term Debt (Details 5) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2013 | Nov. 30, 2014 | Oct. 31, 2014 |
subsidiary | subsidiary | ||||
Minnesota Economic Development State Loans | |||||
Long Term Debt | |||||
Stated interest rate (as a percent) | 3.50% | ||||
Interest rate percent after February 2017 | 5.00% | ||||
Outstanding principal balance | $25.70 | 27.2 | |||
Electric Utility Development Loans | |||||
Long Term Debt | |||||
Stated interest rate (as a percent) | 8.10% | ||||
Outstanding principal balance | 5.4 | 6 | |||
Senior secured revolving credit facility | |||||
Long Term Debt | |||||
Unused stand-by letter of credit | 1,200 | ||||
Maximum borrowing capacity of credit facility | 1,200 | 1,200 | 1,100 | ||
Standby letters of credit | Electric Utility Development Loans | |||||
Long Term Debt | |||||
Unused stand-by letter of credit | 3 | ||||
Revolving credit facility entered into by a controlled subsidiary | |||||
Long Term Debt | |||||
Number of controlled subsidiaries entering into financing agreement | 1 | ||||
Revolving credit facility entered into by a controlled subsidiary | Subsidiaries | |||||
Long Term Debt | |||||
Outstanding principal balance | 27.8 | 20.1 | |||
Interest rate on debt instrument | 3.38% | ||||
Maximum borrowing capacity of credit facility | 40 | ||||
Financing agreements entered into by a controlled subsidiary | |||||
Long Term Debt | |||||
Number of controlled subsidiaries entering into financing agreement | 1 | ||||
Financing agreements entered into by a controlled subsidiary | Subsidiaries | |||||
Long Term Debt | |||||
Interest rate percent after February 2017 | 6.00% | ||||
Outstanding principal balance | $10.70 | 11.2 |
LongTerm_Debt_Details_6
Long-Term Debt (Details 6) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Maturities of outstanding debt | |||
2015 | $46,460,000 | ||
2016 | 16,364,000 | ||
2017 | 15,675,000 | ||
2018 | 15,601,000 | ||
2019 | 603,291,000 | ||
Thereafter | 2,326,775,000 | ||
Total debt | 3,024,166,000 | 2,107,589,000 | |
Interest costs | |||
Interest costs incurred | 139,700,000 | 132,300,000 | 160,000,000 |
Interest costs incurred capitalized | 2,500,000 | 4,600,000 | 1,400,000 |
Cash paid for interest | $114,300,000 | $129,500,000 | $154,100,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes | |||
Net cash paid for taxes | $120,500,000 | $72,400,000 | $46,900,000 |
Income tax expense (benefit) | |||
Current income tax expense | 94,312,000 | 72,599,000 | 11,334,000 |
Deferred income tax expense (benefit) | -21,159,000 | 26,715,000 | 50,451,000 |
Total income tax expense | 73,153,000 | 99,314,000 | 61,785,000 |
Effective tax rate | |||
Statutory federal tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit (as a percent) | 4.60% | 3.80% | 3.40% |
Domestic manufacturing deduction (as a percent) | -4.80% | -2.00% | -2.30% |
Noncontrolling interests (as a percent) | 13.90% | 3.40% | 3.60% |
Federal research and development tax credits (as a percent) | -1.50% | -2.50% | |
Audit settlements (as a percent) | -9.60% | ||
Other permanent differences (as a percent) | -2.80% | 0.10% | 0.20% |
Effective tax rate (as a percent) | 44.40% | 37.80% | 30.30% |
Deferred tax assets | |||
Accrued expenses and allowances | 22,780,000 | 23,497,000 | |
Inventories | 20,546,000 | 3,621,000 | |
Net operating loss carryforwards | 33,347,000 | 18,690,000 | |
Other | 5,571,000 | 6,238,000 | |
Subtotal | 82,244,000 | 52,046,000 | |
Less: valuation allowance | -21,586,000 | -10,641,000 | |
Total net deferred tax assets | 60,658,000 | 41,405,000 | |
Deferred tax liabilities | |||
Property, plant and equipment | -449,939,000 | -474,088,000 | |
Intangible assets | -108,840,000 | -94,936,000 | |
Other | -8,359,000 | -10,426,000 | |
Total deferred tax liabilities | -567,138,000 | -579,450,000 | |
Net deferred tax liability | -506,480,000 | -538,045,000 | |
Federal | |||
Operating loss carryforwards | |||
Net operating loss carryforwards | $56,300,000 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of beginning and ending balance of unrecognized tax benefits | |||
Balance at the beginning of the period | $26,564,000 | $22,245,000 | $64,555,000 |
Increases related to current year tax positions | 1,050,000 | 1,050,000 | |
Increases related to prior year tax positions | 653,000 | 3,760,000 | 741,000 |
Decreases related to prior year tax positions | -2,298,000 | -491,000 | -40,741,000 |
Settlements with taxing authorities | -8,631,000 | -2,310,000 | |
Balance at the end of the period | 17,338,000 | 26,564,000 | 22,245,000 |
Unrecognized tax benefits that, if recognized, would impact effective tax rate | 12,500,000 | ||
Unrecognized tax benefits from the reduction of interest expense | 1,100,000 | ||
Accrued interest and penalties | 5,500,000 | ||
Expected payment of taxes as a result of audit settlement, lower bound | 0 | ||
Expected payment of taxes as a result of audit settlement, upper bound | $8,100,000 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Shareholders' Equity | |||
Cash dividend declared | $108,630 | $97,375 | $87,698 |
Dividends declared per share (in dollars per share) | $0.46 | $0.44 | $0.40 |
Cash dividend paid | $105,379 | $94,812 | $87,633 |
Treasury Stock | |||
Remaining authorization to repurchase treasury stock (in shares) | 3.6 |
Equitybased_Incentive_Plans_De
Equity-based Incentive Plans (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 17-May-12 | |
Deferred Stock Units | ||||
Long term incentive compensation program | ||||
Granted (in shares) | 54,000 | 53,000 | 79,000 | |
Number of RSU's | ||||
Granted (in shares) | 54,000 | 53,000 | 79,000 | |
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | ||||
Equity-based Incentive Plans | ||||
Additional number of shares authorized for issuance | 15,500,000 | |||
Factor used for granting of stock options and stock appreciation rights against the share limit of the awards that are not full value awards (in shares) | 1 | |||
Factor used for granting of RSUs, DSUs, restricted and unrestricted stock awards and performance awards against the share limit of the awards that are full value awards (in shares) | 2.09 | |||
Shares available for issuance | 9,600,000 | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | Restricted Stock Units (RSUs) | ||||
Equity-based Incentive Plans | ||||
Vesting percentage | 100.00% | |||
Eligible age for retirement | 59 years 6 months | |||
Long term incentive compensation program | ||||
Granted (in shares) | 1,121,416 | 1,293,140 | 1,422,448 | |
Number of RSU's | ||||
Outstanding at the beginning of the period (in shares) | 2,279,643 | 1,269,307 | ||
Granted (in shares) | 1,121,416 | 1,293,140 | 1,422,448 | |
Vested (in shares) | -1,245,489 | -170,398 | -143,666 | |
Forfeited (in shares) | -144,344 | -112,406 | -9,475 | |
Outstanding at the end of the period (in dollars per share) | 2,011,226 | 2,279,643 | 1,269,307 | |
Weighted Average Grant Date Fair Value | ||||
Outstanding, at the beginning of the period (in dollars per share) | 14.97 | 11.87 | ||
Granted (in dollars per share) | 21.82 | 18.16 | 11.95 | |
Vested (in dollars per share) | 13.2 | 17.74 | 12.65 | |
Forfeited (in dollars per share) | 15.51 | 12.48 | 11.92 | |
Outstanding, at the end of the period (in dollars per share) | 19.85 | 14.97 | 11.87 | |
Aggregate Intrinsic Value | ||||
Aggregate Intrinsic Value | 39,702,000 | 44,544,000 | 17,428,000 | |
Unrecognized Compensation | ||||
Unrecognized Compensation | 25,171,000 | 22,197,000 | 12,318,000 | |
Weighted average remaining life before vesting of the outstanding RSU's | 1 year 4 months 24 days | |||
Fair value of vesting during the period | 24,600,000 | 3,300,000 | ||
Number of withheld shares | 444,000 | 63,000 | 49,000 | |
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | Employee Stock Option | ||||
Equity-based Incentive Plans | ||||
Vesting percentage | 100.00% | |||
Vesting period | 6 months | |||
Term of award | 5 years | |||
Options exercise price as a percentage of fair value of common stock | 100.00% | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | Performance Shares | Senior Executive Officers | ||||
Equity-based Incentive Plans | ||||
Performance period | 3 years | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | Performance Shares | Senior Executive Officers | Minimum | ||||
Equity-based Incentive Plans | ||||
Awards earned as percentage of specified compensation | 0.00% | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | Performance Shares | Senior Executive Officers | Maximum | ||||
Equity-based Incentive Plans | ||||
Awards earned as percentage of specified compensation | 100.00% | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | Performance Shares | Vesting Based On Performance | Senior Executive Officers | ||||
Equity-based Incentive Plans | ||||
Percentage of shares that vest immediately when performance earned | 33.30% | |||
Performance period one | 1 year | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | Performance Shares | Vesting Based On Service | Senior Executive Officers | ||||
Equity-based Incentive Plans | ||||
Vesting period | 2 years | |||
Performance period two | 2 years | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | One-year performance period transition award | 2012 Award | Senior Executive Officers | ||||
Long term incentive compensation program | ||||
Maximum Shares That Could Be Issued | 164,291 | |||
Award Earned | 95,291 | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | One-year performance period transition award | 2012 Award | Performance/Service period one | Senior Executive Officers | ||||
Long term incentive compensation program | ||||
Awards Issued/Issuable | 31,764 | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | One-year performance period transition award | 2012 Award | Performance/Service period two | Senior Executive Officers | ||||
Long term incentive compensation program | ||||
Awards Issued/Issuable | 31,764 | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | One-year performance period transition award | 2012 Award | Performance/Service period three | Senior Executive Officers | ||||
Long term incentive compensation program | ||||
Awards Issued/Issuable | 31,763 | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | One-year performance period transition award | 2013 Award | Senior Executive Officers | ||||
Long term incentive compensation program | ||||
Maximum Shares That Could Be Issued | 173,319 | |||
Award Earned | 164,653 | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | One-year performance period transition award | 2013 Award | Performance/Service period one | Senior Executive Officers | ||||
Long term incentive compensation program | ||||
Awards Issued/Issuable | 54,885 | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | One-year performance period transition award | 2013 Award | Performance/Service period two | Senior Executive Officers | ||||
Long term incentive compensation program | ||||
Awards Issued/Issuable | 54,884 | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | One-year performance period transition award | 2013 Award | Performance/Service period three | Senior Executive Officers | ||||
Long term incentive compensation program | ||||
Awards Issued/Issuable | 54,884 | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | Two-year performance period transition award | 2013 Award | Senior Executive Officers | ||||
Long term incentive compensation program | ||||
Maximum Shares That Could Be Issued | 173,319 | |||
Award Earned | 159,454 | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | Two-year performance period transition award | 2013 Award | Performance/Service period one | Senior Executive Officers | ||||
Long term incentive compensation program | ||||
Awards Issued/Issuable | 53,152 | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | Two-year performance period transition award | 2013 Award | Performance/Service period two | Senior Executive Officers | ||||
Long term incentive compensation program | ||||
Awards Issued/Issuable | 53,151 | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | Two-year performance period transition award | 2013 Award | Performance/Service period three | Senior Executive Officers | ||||
Long term incentive compensation program | ||||
Awards Issued/Issuable | 53,151 | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | Three-year performance period award | 2013 Award | Senior Executive Officers | ||||
Long term incentive compensation program | ||||
Maximum Shares That Could Be Issued | 173,319 | |||
2006 Amended and Restated Equity Incentive Plan (2006 Plan) | Three-year performance period award | 2014 Award | Senior Executive Officers | ||||
Long term incentive compensation program | ||||
Maximum Shares That Could Be Issued | 269,351 |
Equitybased_Incentive_Plans_De1
Equity-based Incentive Plans (Details 2) (Employee Stock Option, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Option | |||
Equity-Based Incentive Plans | |||
Granted (in shares) | 0 | 0 | 0 |
Options | |||
Balance at the beginning of the period (in shares) | 3,257,170 | 7,073,709 | 8,602,282 |
Exercised (in shares) | -1,773,872 | -3,134,953 | -451,135 |
Forfeited (in shares) | -84,783 | -681,586 | -1,077,438 |
Balance at the end of the period (in shares) | 1,398,515 | 3,257,170 | 7,073,709 |
Weighted Average Exercise Price | |||
Balance at the beginning of the period (in dollars per share) | $14.84 | $14.56 | $15.06 |
Exercised (in dollars per share) | $15.01 | $11.02 | $6.70 |
Forfeited (in dollars per share) | $14.98 | $29.52 | $21.85 |
Balance at the end of the period (in dollars per share) | $14.62 | $14.84 | $14.56 |
Weighted Average Fair Value | |||
Balance at the beginning of the period (in dollars per share) | $5.58 | $5.30 | $5.25 |
Exercised (in dollars per share) | $5.57 | $4.19 | $2.67 |
Forfeited (in dollars per share) | $5.45 | $9.01 | $6.04 |
Balance at the end of the period (in dollars per share) | $5.61 | $5.58 | $5.30 |
Equitybased_Incentive_Plans_De2
Equity-based Incentive Plans (Details 3) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Range of Exercise Price $10 to $15 | |
Stock options outstanding and exercisable by exercise price range | |
Exercise price per share, low end of the range (in dollars per share) | $10 |
Exercise price per share, high end of the range (in dollars per share) | $15 |
Exercisable Options (in shares) | 731,256 |
Weighted Average Remaining Contractual Life | 1 year 3 months 15 days |
Weighted Average Exercise Price Exercisable Options (in dollars per share) | $12.95 |
Range of Exercise Price $15 to $20 | |
Stock options outstanding and exercisable by exercise price range | |
Exercise price per share, low end of the range (in dollars per share) | $15 |
Exercise price per share, high end of the range (in dollars per share) | $20 |
Exercisable Options (in shares) | 667,259 |
Weighted Average Remaining Contractual Life | 1 year 1 month 24 days |
Weighted Average Exercise Price Exercisable Options (in dollars per share) | $16.46 |
Equitybased_Incentive_Plans_De3
Equity-based Incentive Plans (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Share-based Compensation Disclosures | |||
Total expenses for the plan | $22,800,000 | $15,200,000 | $9,900,000 |
Employee Stock Option | |||
Equity-Based Incentive Plans | |||
Aggregate intrinsic value of options exercised (in dollars) | 9,300,000 | 18,700,000 | 3,100,000 |
Aggregate intrinsic value of options that are currently outstanding and that are expected to be exercised (in dollars) | 7,200,000 | ||
Unrecognized stock option compensation expense | 0 | ||
Other Share-based Compensation Disclosures | |||
Granted (in shares) | 0 | 0 | 0 |
Executive Incentive Compensation Plan 2013 | |||
Equity-Based Incentive Plans | |||
Original number of shares authorized for issuance | 2,500,000 | ||
Remaining number of shares available for issuance | 2,300,000 | ||
Executive Incentive Compensation Plan 2013 | 2014 Award | |||
Other Share-based Compensation Disclosures | |||
Granted (in shares) | 221,900 | ||
Market value of award | 3,800,000 | ||
Executive Incentive Compensation Plan 2013 | 2013 Award | |||
Other Share-based Compensation Disclosures | |||
Granted (in shares) | 9,500 | ||
Market value of award | 157,000 | ||
Executive Incentive Compensation Plan 2013 | 2012 Award | |||
Other Share-based Compensation Disclosures | |||
Granted (in shares) | 8,900 | ||
Market value of award | 135,000 | ||
Executive Incentive Compensation Plan 2013 | Vesting Based On Performance | |||
Equity-Based Incentive Plans | |||
Percentage Vested Immediately Based On Performance Earned | 33.30% | ||
Executive Incentive Compensation Plan 2013 | Vesting Based On Service | |||
Equity-Based Incentive Plans | |||
Vesting period | 2 years | ||
Employee Stock Purchase Plan 2014 | |||
Other Share-based Compensation Disclosures | |||
Maximum annual allowable payroll deduction per employee | 10,400 | ||
Employer's matching contribution of employees' payroll deductions (as a percent) | 10.00% | ||
Total expenses for the plan | $376,000 | $354,000 | $354,000 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Gains or losses on derivative instruments, statement of income | |||
Ineffectiveness - amount of gain (loss) recognized in income on related hedged items | $206,000 | ($206,000) | |
Gain (loss) excluded from hedge effectiveness testing | 649,000 | 398,000 | |
Designated as hedging instrument | |||
Gains or losses on derivative instruments, statement of income | |||
Amount of gain (loss) recognized in income on related hedged items | -1,923,000 | -7,317,000 | |
Commodity contract | Futures | |||
Fair values of derivative instruments, balance sheet | |||
Commodity futures, asset derivatives (in dollars) | 5,312,000 | 1,010,000 | |
Commodity futures, liability derivatives (in dollars) | 1,539,000 | 4,487,000 | |
Commodity contract | Futures | Other current assets | |||
Fair values of derivative instruments, balance sheet | |||
Fair value of derivatives including required margin deposits | 7,600,000 | 3,600,000 | |
Commodity contract | Futures | Designated as hedging instrument | Cost of goods sold | |||
Gains or losses on derivative instruments, statement of income | |||
Amount of gain recognized in income on derivatives | 2,778,000 | 7,509,000 | |
Commodity contract | Futures | Designated as hedging instrument | Other current assets | |||
Fair values of derivative instruments, balance sheet | |||
Commodity futures, asset derivatives (in dollars) | 3,180,000 | 658,000 | |
Commodity futures, liability derivatives (in dollars) | 913,000 | 1,886,000 | |
Commodity contract | Futures | Not designated as hedging instrument | Cost of goods sold | |||
Gains or losses on derivative instruments, statement of income | |||
Amount of gain (loss) recognized in income on derivatives | 14,988,000 | 2,097,000 | -892,000 |
Commodity contract | Futures | Not designated as hedging instrument | Other current assets | |||
Fair values of derivative instruments, balance sheet | |||
Commodity futures, asset derivatives (in dollars) | 2,132,000 | 352,000 | |
Commodity futures, liability derivatives (in dollars) | 626,000 | 2,601,000 | |
Commodity contract | Futures | Aluminum | Long | |||
Commodity contract commitments | |||
Commodity contract (in MT/Lbs) | 3,700 | ||
Commodity contract | Futures | Aluminum | Short | |||
Commodity contract commitments | |||
Commodity contract (in MT/Lbs) | 5,025 | ||
Commodity contract | Futures | Copper | Long | |||
Commodity contract commitments | |||
Commodity contract (in MT/Lbs) | 3,611 | ||
Commodity contract | Futures | Copper | Short | |||
Commodity contract commitments | |||
Commodity contract (in MT/Lbs) | 15,733 | ||
Commodity contract | Futures | Silver | Short | |||
Commodity contract commitments | |||
Commodity contract (in MT/Lbs) | 343 | ||
Firm commitments | Designated as hedging instrument | Cost of goods sold | |||
Gains or losses on derivative instruments, statement of income | |||
Amount of gain (loss) recognized in income on related hedged items | 1,488,000 | 120,000 | |
Inventory | Designated as hedging instrument | Cost of goods sold | |||
Gains or losses on derivative instruments, statement of income | |||
Amount of gain (loss) recognized in income on related hedged items | ($3,411,000) | ($7,437,000) |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Assets and liabilities subject to fair value measurements | ||
Outstanding Balance | $3,024,166,000 | $2,107,589,000 |
Commodity contract | Futures | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 5,312,000 | 1,010,000 |
Commodity futures - financial liabilities | 1,539,000 | 4,487,000 |
Recurring | Level 2 | ||
Assets and liabilities subject to fair value measurements | ||
Fair value of long-term debt, including current maturities | 3,100,000,000 | 2,300,000,000 |
Recurring | Level 2 | Commodity contract | Futures | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 5,312,000 | 1,010,000 |
Commodity futures - financial liabilities | 1,539,000 | 4,487,000 |
Recurring | Total | Commodity contract | Futures | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 5,312,000 | 1,010,000 |
Commodity futures - financial liabilities | $1,539,000 | $4,487,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
complaint | |
Commitment and contingencies | |
Number of complaints brought on by a class consisting of all direct purchasers of steel products | 1 |
Company's commitments for agreements with take or pay or other similar commitment provisions | |
Outstanding construction-related commitments | $24,400,000 |
Commitments with suppliers "take or pay" | |
Company's commitments for agreements with take or pay or other similar commitment provisions | |
2015 | 174,711,000 |
2016 | 49,177,000 |
2017 | 20,669,000 |
2018 | 18,658,000 |
2019 | 19,829,000 |
Thereafter | 83,699,000 |
Total | $366,743,000 |
Physical commodity requirements utilization period | 3 years |
Commitments with suppliers "take or pay" | Maximum | |
Commitment and contingencies | |
Commodity actual usage period | 30 months |
Commodity transportation requirements period | 5 years |
Commodity transportation requirements period for air products | 14 years |
Electricity purchase commitment | |
Company's commitments for agreements with take or pay or other similar commitment provisions | |
Annual "interruptible service" period at Flat Roll Division | 160 hours |
Transactions_with_Affiliated_C2
Transactions with Affiliated Companies (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||||
Sep. 15, 2009 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2014 | Sep. 15, 2009 | |
sqft | ||||||
acre | ||||||
Transactions with affiliated companies | ||||||
Sales | $274,385,000 | $285,823,000 | $282,817,000 | |||
Accounts receivable related parties | 42,990,000 | 56,392,000 | ||||
Capital expenditures | 111,785,000 | 186,843,000 | 223,525,000 | |||
Heidtman Steel Products (Heidtman) | ||||||
Transactions with affiliated companies | ||||||
Sales | 234,608,000 | 236,075,000 | 244,531,000 | |||
Percentage of consolidated net sales | 3.00% | 3.00% | 3.00% | |||
Accounts receivable related parties | 35,447,000 | 51,760,000 | 38,093,000 | |||
Purchases | 7,639,000 | 5,562,000 | 11,372,000 | |||
Accounts payable | 236,000 | 391,000 | 800,000 | |||
Area of land (in acres) | 32 | 32 | ||||
Area of building (in square foot) | 387,000 | 387,000 | ||||
Lease term | 5 years | |||||
Monthly rental expense for real estate and equipment | 289,000 | |||||
Repurchase option | 27,900,000 | |||||
Heidtman Steel Products (Heidtman) | Land and Building | ||||||
Transactions with affiliated companies | ||||||
Capital expenditures | 9,300,000 | |||||
Heidtman Steel Products (Heidtman) | Equipment | ||||||
Transactions with affiliated companies | ||||||
Capital expenditures | 18,600,000 | |||||
Other smaller affiliated companies | ||||||
Transactions with affiliated companies | ||||||
Sales | 39,777,000 | 49,748,000 | 38,286,000 | |||
Accounts receivable related parties | 7,543,000 | 4,632,000 | 4,771,000 | |||
Purchases | 279,177,000 | 111,048,000 | 238,114,000 | |||
Accounts payable | $21,029,000 | $9,936,000 | $14,344,000 |
Retirement_Plans_Details
Retirement Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Retirement Plans | |||
Total expenses recognized under 401 (k) Plan | $39.40 | $25.20 | $22.90 |
Percentage of employer's profit sharing contribution | 8.00% | 8.00% | 2.00% |
Profit sharing component | 36.3 | 23.1 | 20.5 |
Employer's contribution to profit sharing plans for eligible employees | $29 | $18.50 | $14.30 |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Leases | |||
Payment for operating leases | $16,000,000 | $13,500,000 | $14,800,000 |
Future minimum payments | |||
2015 | 10,465,000 | ||
2016 | 7,824,000 | ||
2017 | 5,059,000 | ||
2018 | 4,743,000 | ||
2019 | 4,204,000 | ||
Thereafter | 8,294,000 | ||
Total | $40,589,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segment | |||||||||||
Segment Information | |||||||||||
Number of reporting segments | 3 | ||||||||||
Segment Reporting Information | |||||||||||
Total net sales | $2,517,093 | $2,339,016 | $2,069,761 | $1,830,082 | $1,864,150 | $1,911,738 | $1,801,340 | $1,795,696 | $8,755,952 | $7,372,924 | $7,290,234 |
Operating income (loss) | -81,160 | 188,643 | 131,905 | 80,932 | 107,822 | 113,273 | 69,198 | 96,232 | 320,320 | 386,525 | 391,165 |
Income (loss) before income taxes | 164,803 | 262,830 | 204,066 | ||||||||
Depreciation and amortization | 263,325 | 230,928 | 225,216 | ||||||||
Capital expenditures | 111,785 | 186,843 | 223,525 | ||||||||
Assets | 7,311,027 | 5,933,006 | 7,311,027 | 5,933,006 | 5,815,416 | ||||||
Liabilities | 4,389,160 | 3,320,637 | 4,389,160 | 3,320,637 | 3,338,760 | ||||||
Impairment charges | 260,000 | 260,000 | 308 | 8,250 | |||||||
U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 8,272,958 | 6,955,726 | 6,851,365 | ||||||||
Non-U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 482,994 | 417,198 | 438,869 | ||||||||
Steel Operations | |||||||||||
Segment Reporting Information | |||||||||||
Capital expenditures | 61,426 | 121,835 | 55,786 | ||||||||
Metals Recycling/Ferrous Resources | |||||||||||
Segment Reporting Information | |||||||||||
Capital expenditures | 46,374 | 60,678 | 159,768 | ||||||||
Impairment charges | 46,500 | ||||||||||
Steel Fabrication Operations | |||||||||||
Segment Reporting Information | |||||||||||
Capital expenditures | 3,027 | 2,166 | 5,735 | ||||||||
Other. | |||||||||||
Segment Reporting Information | |||||||||||
Capital expenditures | 958 | 2,164 | 2,236 | ||||||||
Operating Segment | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 8,755,952 | 7,372,924 | 7,290,234 | ||||||||
Operating Segment | Steel Operations | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 5,821,578 | 4,685,170 | 4,701,108 | ||||||||
Operating income (loss) | 671,607 | 504,384 | 495,640 | ||||||||
Income (loss) before income taxes | 602,651 | 449,405 | 425,509 | ||||||||
Depreciation and amortization | 139,761 | 106,603 | 104,222 | ||||||||
Assets | 4,406,402 | 2,642,866 | 4,406,402 | 2,642,866 | 2,485,235 | ||||||
Liabilities | 768,047 | 563,924 | 768,047 | 563,924 | 525,351 | ||||||
Operating Segment | Steel Operations | Other segments | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 279,835 | 223,713 | 194,320 | ||||||||
Operating Segment | Steel Operations | U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 5,300,762 | 4,256,077 | 4,294,437 | ||||||||
Operating Segment | Steel Operations | Non-U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 240,981 | 205,380 | 212,351 | ||||||||
Operating Segment | Metals Recycling/Ferrous Resources | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 3,769,241 | 3,558,719 | 3,611,796 | ||||||||
Operating income (loss) | -308,730 | -52,468 | -36,508 | ||||||||
Income (loss) before income taxes | -335,974 | -84,826 | -70,433 | ||||||||
Depreciation and amortization | 108,743 | 109,847 | 103,993 | ||||||||
Assets | 2,169,902 | 2,549,626 | 2,169,902 | 2,549,626 | 2,568,233 | ||||||
Liabilities | 574,850 | 588,232 | 574,850 | 588,232 | 484,017 | ||||||
Impairment charges | 260,000 | ||||||||||
Operating Segment | Metals Recycling/Ferrous Resources | Other segments | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 1,282,272 | 1,173,878 | 1,269,198 | ||||||||
Operating Segment | Metals Recycling/Ferrous Resources | U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 2,246,069 | 2,173,863 | 2,116,537 | ||||||||
Operating Segment | Metals Recycling/Ferrous Resources | Non-U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 240,900 | 210,978 | 226,061 | ||||||||
Operating Segment | Steel Fabrication Operations | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 631,808 | 439,655 | 371,406 | ||||||||
Operating income (loss) | 51,894 | 7,003 | 2,114 | ||||||||
Income (loss) before income taxes | 45,376 | 827 | -4,580 | ||||||||
Depreciation and amortization | 9,712 | 8,736 | 8,025 | ||||||||
Assets | 301,316 | 270,215 | 301,316 | 270,215 | 242,747 | ||||||
Liabilities | 42,234 | 22,704 | 42,234 | 22,704 | 15,983 | ||||||
Operating Segment | Steel Fabrication Operations | Other segments | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 58 | 1,401 | 322 | ||||||||
Operating Segment | Steel Fabrication Operations | U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 631,750 | 438,254 | 371,084 | ||||||||
Operating Segment | Other. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 122,986 | 115,326 | 87,462 | ||||||||
Operating income (loss) | -98,879 | -71,446 | -66,829 | ||||||||
Income (loss) before income taxes | -151,678 | -101,628 | -143,178 | ||||||||
Depreciation and amortization | 5,313 | 5,946 | 9,180 | ||||||||
Assets | 639,844 | 686,594 | 639,844 | 686,594 | 714,069 | ||||||
Liabilities | 3,200,497 | 2,349,722 | 3,200,497 | 2,349,722 | 2,497,750 | ||||||
Operating Segment | Other. | Other segments | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 27,496 | 26,954 | 17,698 | ||||||||
Operating Segment | Other. | U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 94,377 | 87,532 | 69,307 | ||||||||
Operating Segment | Other. | Non-U.S. | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | 1,113 | 840 | 457 | ||||||||
Eliminations | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | -1,589,661 | -1,425,946 | -1,481,538 | ||||||||
Operating income (loss) | 4,428 | -948 | -3,252 | ||||||||
Income (loss) before income taxes | 4,428 | -948 | -3,252 | ||||||||
Depreciation and amortization | -204 | -204 | -204 | ||||||||
Assets | -206,437 | -216,295 | -206,437 | -216,295 | -194,868 | ||||||
Liabilities | -196,468 | -203,945 | -196,468 | -203,945 | -184,341 | ||||||
Eliminations | Other segments | |||||||||||
Segment Reporting Information | |||||||||||
Total net sales | ($1,589,661) | ($1,425,946) | ($1,481,538) |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating income (loss) | ||||||||||||
Corporate SG & A | ($316,214,000) | ($272,777,000) | ($257,943,000) | |||||||||
Profit sharing | -42,126,000 | -27,764,000 | -26,987,000 | |||||||||
Operating income | -81,160,000 | 188,643,000 | 131,905,000 | 80,932,000 | 107,822,000 | 113,273,000 | 69,198,000 | 96,232,000 | 320,320,000 | 386,525,000 | 391,165,000 | |
Acquisition and related costs | 25,000,000 | |||||||||||
Assets | ||||||||||||
Cash and equivalents | 361,363,000 | 395,156,000 | 361,363,000 | 395,156,000 | 375,917,000 | 390,761,000 | ||||||
Accounts receivable | 859,835,000 | 664,208,000 | 859,835,000 | 664,208,000 | ||||||||
Inventories | 1,618,419,000 | 1,314,747,000 | 1,618,419,000 | 1,314,747,000 | ||||||||
Deferred income taxes | 35,503,000 | 17,964,000 | 35,503,000 | 17,964,000 | ||||||||
Property, plant and equipment, net | 3,123,906,000 | 2,226,134,000 | 3,123,906,000 | 2,226,134,000 | ||||||||
Other | 97,529,000 | 115,083,000 | 97,529,000 | 115,083,000 | ||||||||
Total assets | 7,311,027,000 | 5,933,006,000 | 7,311,027,000 | 5,933,006,000 | 5,815,416,000 | |||||||
Liabilities | ||||||||||||
Accounts payable | 511,056,000 | 414,932,000 | 511,056,000 | 414,932,000 | ||||||||
Income taxes payable | 6,086,000 | 4,023,000 | 6,086,000 | 4,023,000 | ||||||||
Accrued interest | 50,405,000 | 31,363,000 | 50,405,000 | 31,363,000 | ||||||||
Debt | 3,024,166,000 | 2,107,589,000 | 3,024,166,000 | 2,107,589,000 | ||||||||
Deferred income taxes | 542,033,000 | 556,038,000 | 542,033,000 | 556,038,000 | ||||||||
Liabilities | 4,389,160,000 | 3,320,637,000 | 4,389,160,000 | 3,320,637,000 | 3,338,760,000 | |||||||
Severstal Columbus LLC | ||||||||||||
Operating income (loss) | ||||||||||||
Acquisition and related costs | 25,200,000 | |||||||||||
Operating Segment | Other. | ||||||||||||
Operating income (loss) | ||||||||||||
Corporate SG & A | -42,000,000 | -37,300,000 | -32,300,000 | |||||||||
Company-wide equity- based compensation | -22,800,000 | -13,900,000 | -8,300,000 | |||||||||
Profit sharing | -36,300,000 | -23,100,000 | -20,500,000 | |||||||||
Other, net | 2,200,000 | 2,900,000 | -5,700,000 | |||||||||
Operating income | -98,879,000 | -71,446,000 | -66,829,000 | |||||||||
Assets | ||||||||||||
Cash and equivalents | 267,800,000 | 325,700,000 | 267,800,000 | 325,700,000 | 327,100,000 | |||||||
Investments in short-term commercial paper | 31,500,000 | |||||||||||
Accounts receivable | 10,000,000 | 8,500,000 | 10,000,000 | 8,500,000 | 8,700,000 | |||||||
Inventories | 21,000,000 | 10,400,000 | 21,000,000 | 10,400,000 | 11,500,000 | |||||||
Deferred income taxes | 35,400,000 | 23,200,000 | 35,400,000 | 23,200,000 | 23,400,000 | |||||||
Property, plant and equipment, net | 68,900,000 | 72,500,000 | 68,900,000 | 72,500,000 | 75,500,000 | |||||||
Debt issuance costs, net | 42,000,000 | 26,000,000 | 42,000,000 | 26,000,000 | 27,900,000 | |||||||
Intra-company debt | 137,100,000 | 159,300,000 | 137,100,000 | 159,300,000 | 141,100,000 | |||||||
Other | 57,600,000 | 61,000,000 | 57,600,000 | 61,000,000 | 67,400,000 | |||||||
Total assets | 639,844,000 | 686,594,000 | 639,844,000 | 686,594,000 | 714,069,000 | |||||||
Liabilities | ||||||||||||
Accounts payable | 50,700,000 | 36,300,000 | 50,700,000 | 36,300,000 | 32,200,000 | |||||||
Income taxes payable | 6,100,000 | 4,000,000 | 6,100,000 | 4,000,000 | 17,100,000 | |||||||
Accrued interest | 50,200,000 | 31,200,000 | 50,200,000 | 31,200,000 | 35,100,000 | |||||||
Accrued profit sharing | 36,800,000 | 23,400,000 | 36,800,000 | 23,400,000 | 20,700,000 | |||||||
Debt | 2,953,300,000 | 2,038,300,000 | 2,953,300,000 | 2,038,300,000 | 2,152,200,000 | |||||||
Deferred income taxes | 71,400,000 | 190,200,000 | 71,400,000 | 190,200,000 | 218,200,000 | |||||||
Other | 32,000,000 | 26,300,000 | 32,000,000 | 26,300,000 | 22,300,000 | |||||||
Liabilities | 3,200,497,000 | 2,349,722,000 | 3,200,497,000 | 2,349,722,000 | 2,497,750,000 | |||||||
Operating Segment | Other. | Severstal Columbus LLC | ||||||||||||
Operating income (loss) | ||||||||||||
Acquisition and related costs | $25,200,000 |
Segment_Information_Details_3
Segment Information (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating income (loss) | |||||||||||
Gross profit decrease from intra-company sales | $291,624,000 | $288,512,000 | $222,771,000 | $163,304,000 | $197,996,000 | $197,192,000 | $147,692,000 | $176,264,000 | $966,211,000 | $719,144,000 | $719,898,000 |
Assets elimination | |||||||||||
Elimination of intra-company receivables | 902,825,000 | 720,600,000 | 902,825,000 | 720,600,000 | |||||||
Other | 97,529,000 | 115,083,000 | 97,529,000 | 115,083,000 | |||||||
Total assets | 7,311,027,000 | 5,933,006,000 | 7,311,027,000 | 5,933,006,000 | 5,815,416,000 | ||||||
Liabilities elimination | |||||||||||
Elimination of intra-company payables | 511,056,000 | 414,932,000 | 511,056,000 | 414,932,000 | |||||||
Liabilities | 4,389,160,000 | 3,320,637,000 | 4,389,160,000 | 3,320,637,000 | 3,338,760,000 | ||||||
Acquisition | |||||||||||
Acquisition and related costs | 25,000,000 | ||||||||||
Eliminations | |||||||||||
Operating income (loss) | |||||||||||
Gross profit decrease from intra-company sales | 4,400,000 | -900,000 | -3,300,000 | ||||||||
Assets elimination | |||||||||||
Elimination of intra-company receivables | -60,300,000 | -43,500,000 | -60,300,000 | -43,500,000 | -41,400,000 | ||||||
Elimination of intra-company debt | -137,100,000 | -159,300,000 | -137,100,000 | -159,300,000 | -141,100,000 | ||||||
Other | -9,000,000 | -13,500,000 | -9,000,000 | -13,500,000 | -12,400,000 | ||||||
Total assets | -206,437,000 | -216,295,000 | -206,437,000 | -216,295,000 | -194,868,000 | ||||||
Liabilities elimination | |||||||||||
Elimination of intra-company payables | -60,800,000 | -43,900,000 | -60,800,000 | -43,900,000 | -41,700,000 | ||||||
Elimination of intra-company debt | -137,100,000 | -159,300,000 | -137,100,000 | -159,300,000 | -141,100,000 | ||||||
Other | 1,400,000 | -800,000 | 1,400,000 | -800,000 | -1,500,000 | ||||||
Liabilities | ($196,468,000) | ($203,945,000) | ($196,468,000) | ($203,945,000) | ($184,341,000) |
Condensed_Consolidating_Inform2
Condensed Consolidating Information (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Condensed Consolidating Balance Sheets | ||||
Ownership interest in subsidiaries (as a percent) | 100.00% | |||
Cash and equivalents | $361,363 | $395,156 | $375,917 | $390,761 |
Accounts receivable, net | 902,825 | 720,600 | ||
Inventories | 1,618,419 | 1,314,747 | ||
Other current assets | 91,158 | 43,131 | ||
Total current assets | 2,973,765 | 2,473,634 | ||
Property, plant and equipment, net | 3,123,906 | 2,226,134 | ||
Intangible assets, net | 370,669 | 386,159 | ||
Goodwill | 745,158 | 731,996 | ||
Other assets, including investments in subs | 97,529 | 115,083 | ||
Total assets | 7,311,027 | 5,933,006 | 5,815,416 | |
Accounts payable | 511,056 | 414,932 | ||
Accrued expenses | 293,066 | 218,702 | ||
Current maturities of long-term debt | 46,460 | 341,544 | ||
Total current liabilities | 850,582 | 975,178 | ||
Long-term debt | 2,977,706 | 1,766,045 | ||
Other liabilities | 560,872 | 579,414 | ||
Redeemable noncontrolling interests | 126,340 | 116,514 | ||
Common stock | 635 | 645 | ||
Treasury stock | -398,898 | -718,529 | ||
Additional paid-in capital | 1,083,435 | 1,085,694 | ||
Retained earnings (deficit) | 2,227,843 | 2,179,513 | ||
Total Steel Dynamics, Inc. equity | 2,913,015 | 2,547,323 | ||
Noncontrolling interests | -117,488 | -51,468 | ||
Total equity | 2,795,527 | 2,495,855 | 2,377,842 | 2,299,900 |
Total liabilities and equity | 7,311,027 | 5,933,006 | ||
Reportable legal entity | Parent | ||||
Condensed Consolidating Balance Sheets | ||||
Cash and equivalents | 265,313 | 320,866 | 322,707 | 301,073 |
Accounts receivable, net | 321,493 | 309,691 | ||
Inventories | 662,970 | 673,763 | ||
Other current assets | 94,634 | 50,228 | ||
Total current assets | 1,344,410 | 1,354,548 | ||
Property, plant and equipment, net | 1,002,407 | 1,046,093 | ||
Other assets, including investments in subs | 3,900,691 | 2,630,411 | ||
Total assets | 6,247,508 | 5,031,052 | ||
Accounts payable | 151,517 | 160,255 | ||
Accrued expenses | 191,433 | 142,055 | ||
Current maturities of long-term debt | 13,073 | 315,521 | ||
Total current liabilities | 356,023 | 617,831 | ||
Long-term debt | 2,942,360 | 1,725,433 | ||
Other liabilities | 36,110 | 140,465 | ||
Common stock | 635 | 645 | ||
Treasury stock | -398,898 | -718,529 | ||
Additional paid-in capital | 1,083,435 | 1,085,694 | ||
Retained earnings (deficit) | 2,227,843 | 2,179,513 | ||
Total Steel Dynamics, Inc. equity | 2,913,015 | 2,547,323 | ||
Total equity | 2,913,015 | 2,547,323 | ||
Total liabilities and equity | 6,247,508 | 5,031,052 | ||
Reportable legal entity | Guarantors | ||||
Condensed Consolidating Balance Sheets | ||||
Cash and equivalents | 81,690 | 61,148 | 41,675 | 58,699 |
Accounts receivable, net | 1,176,849 | 874,707 | ||
Inventories | 862,796 | 557,640 | ||
Other current assets | 8,416 | 8,399 | ||
Total current assets | 2,129,751 | 1,501,894 | ||
Property, plant and equipment, net | 1,826,208 | 619,617 | ||
Intangible assets, net | 370,669 | 386,159 | ||
Goodwill | 745,158 | 731,996 | ||
Other assets, including investments in subs | 24,810 | 21,789 | ||
Total assets | 5,096,596 | 3,261,455 | ||
Accounts payable | 371,037 | 258,406 | ||
Accrued expenses | 166,101 | 115,182 | ||
Current maturities of long-term debt | 777 | 300 | ||
Total current liabilities | 537,915 | 373,888 | ||
Long-term debt | 624 | |||
Other liabilities | 1,807,989 | 1,986,260 | ||
Common stock | 1,727,859 | 33,896 | ||
Additional paid-in capital | 117,737 | 117,737 | ||
Retained earnings (deficit) | 904,472 | 749,674 | ||
Total Steel Dynamics, Inc. equity | 2,750,068 | 901,307 | ||
Total equity | 2,750,068 | 901,307 | ||
Total liabilities and equity | 5,096,596 | 3,261,455 | ||
Reportable legal entity | Combined Non-Guarantors | ||||
Condensed Consolidating Balance Sheets | ||||
Cash and equivalents | 14,360 | 13,142 | 11,535 | 30,989 |
Accounts receivable, net | 44,696 | 32,018 | ||
Inventories | 94,916 | 91,199 | ||
Other current assets | 6,577 | 3,259 | ||
Total current assets | 160,549 | 139,618 | ||
Property, plant and equipment, net | 297,505 | 562,843 | ||
Other assets, including investments in subs | 6,635 | 8,092 | ||
Total assets | 464,689 | 710,553 | ||
Accounts payable | 98,886 | 60,987 | ||
Accrued expenses | 11,695 | 10,694 | ||
Current maturities of long-term debt | 73,767 | 52,163 | ||
Total current liabilities | 184,348 | 123,844 | ||
Long-term debt | 158,665 | 204,385 | ||
Other liabilities | 28,719 | 34,895 | ||
Redeemable noncontrolling interests | 126,340 | 116,514 | ||
Common stock | 18,121 | 18,121 | ||
Additional paid-in capital | 635,156 | 552,946 | ||
Retained earnings (deficit) | -569,172 | -288,684 | ||
Total Steel Dynamics, Inc. equity | 84,105 | 282,383 | ||
Noncontrolling interests | -117,488 | -51,468 | ||
Total equity | -33,383 | 230,915 | ||
Total liabilities and equity | 464,689 | 710,553 | ||
Consolidating Adjustments | ||||
Condensed Consolidating Balance Sheets | ||||
Accounts receivable, net | -640,213 | -495,816 | ||
Inventories | -2,263 | -7,855 | ||
Other current assets | -18,469 | -18,755 | ||
Total current assets | -660,945 | -522,426 | ||
Property, plant and equipment, net | -2,214 | -2,419 | ||
Other assets, including investments in subs | -3,834,607 | -2,545,209 | ||
Total assets | -4,497,766 | -3,070,054 | ||
Accounts payable | -110,384 | -64,716 | ||
Accrued expenses | -76,163 | -49,229 | ||
Current maturities of long-term debt | -41,157 | -26,440 | ||
Total current liabilities | -227,704 | -140,385 | ||
Long-term debt | -123,943 | -163,773 | ||
Other liabilities | -1,311,946 | -1,582,206 | ||
Common stock | -1,745,980 | -52,017 | ||
Additional paid-in capital | -752,893 | -670,683 | ||
Retained earnings (deficit) | -335,300 | -460,990 | ||
Total Steel Dynamics, Inc. equity | -2,834,173 | -1,183,690 | ||
Total equity | -2,834,173 | -1,183,690 | ||
Total liabilities and equity | ($4,497,766) | ($3,070,054) |
Condensed_Consolidating_Inform3
Condensed Consolidating Information (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Consolidating Statements of Operations | |||||||||||
Net sales | $2,517,093 | $2,339,016 | $2,069,761 | $1,830,082 | $1,864,150 | $1,911,738 | $1,801,340 | $1,795,696 | $8,755,952 | $7,372,924 | $7,290,234 |
Costs of goods sold | 7,789,741 | 6,653,780 | 6,570,336 | ||||||||
Gross profit | 291,624 | 288,512 | 222,771 | 163,304 | 197,996 | 197,192 | 147,692 | 176,264 | 966,211 | 719,144 | 719,898 |
Selling, general and administrative | 645,891 | 332,619 | 328,733 | ||||||||
Operating income | -81,160 | 188,643 | 131,905 | 80,932 | 107,822 | 113,273 | 69,198 | 96,232 | 320,320 | 386,525 | 391,165 |
Interest expense, net of capitalized interest | 137,263 | 127,728 | 158,585 | ||||||||
Other (income) expense, net | 18,254 | -4,033 | 28,514 | ||||||||
Income before income taxes | 164,803 | 262,830 | 204,066 | ||||||||
Income taxes (benefit) | 73,153 | 99,314 | 61,785 | ||||||||
Net income | -96,046 | 87,657 | 66,341 | 33,698 | 47,901 | 51,090 | 23,273 | 41,252 | 91,650 | 163,516 | 142,281 |
Net loss attributable to noncontrolling interests | 65,374 | 25,798 | 21,270 | ||||||||
Net income attributable to Steel Dynamics, Inc. | -45,031 | 91,173 | 72,303 | 38,579 | 54,655 | 57,486 | 28,958 | 48,215 | 157,024 | 189,314 | 163,551 |
Reportable legal entity | Parent | |||||||||||
Condensed Consolidating Statements of Operations | |||||||||||
Net sales | 3,904,488 | 3,466,691 | 3,431,978 | ||||||||
Costs of goods sold | 3,305,269 | 2,981,591 | 2,977,756 | ||||||||
Gross profit | 599,219 | 485,100 | 454,222 | ||||||||
Selling, general and administrative | 149,374 | 118,975 | 102,142 | ||||||||
Operating income | 449,845 | 366,125 | 352,080 | ||||||||
Interest expense, net of capitalized interest | 78,442 | 81,361 | 104,058 | ||||||||
Other (income) expense, net | 18,976 | -7,358 | 28,677 | ||||||||
Income before income taxes | 352,427 | 292,122 | 219,345 | ||||||||
Income taxes (benefit) | 14,064 | 63,670 | 26,611 | ||||||||
Net income | 338,363 | 228,452 | 192,734 | ||||||||
Equity in net loss of subsidiaries | -181,339 | -39,138 | -29,183 | ||||||||
Net income attributable to Steel Dynamics, Inc. | 157,024 | 189,314 | 163,551 | ||||||||
Reportable legal entity | Guarantors | |||||||||||
Condensed Consolidating Statements of Operations | |||||||||||
Net sales | 9,761,236 | 8,219,499 | 8,322,995 | ||||||||
Costs of goods sold | 9,212,977 | 7,805,367 | 7,906,392 | ||||||||
Gross profit | 548,259 | 414,132 | 416,603 | ||||||||
Selling, general and administrative | 241,163 | 219,531 | 218,515 | ||||||||
Operating income | 307,096 | 194,601 | 198,088 | ||||||||
Interest expense, net of capitalized interest | 56,006 | 43,879 | 53,186 | ||||||||
Other (income) expense, net | -23 | 3,401 | -1,531 | ||||||||
Income before income taxes | 251,113 | 147,321 | 146,433 | ||||||||
Income taxes (benefit) | 96,315 | 54,448 | 51,011 | ||||||||
Net income | 154,798 | 92,873 | 95,422 | ||||||||
Net income attributable to Steel Dynamics, Inc. | 154,798 | 92,873 | 95,422 | ||||||||
Reportable legal entity | Combined Non-Guarantors | |||||||||||
Condensed Consolidating Statements of Operations | |||||||||||
Net sales | 527,584 | 347,288 | 177,527 | ||||||||
Costs of goods sold | 598,428 | 440,064 | 257,604 | ||||||||
Gross profit | -70,844 | -92,776 | -80,077 | ||||||||
Selling, general and administrative | 273,503 | 10,548 | 24,081 | ||||||||
Operating income | -344,347 | -103,324 | -104,158 | ||||||||
Interest expense, net of capitalized interest | 7,745 | 7,259 | 6,630 | ||||||||
Other (income) expense, net | -5,629 | -4,847 | -3,921 | ||||||||
Income before income taxes | -346,463 | -105,736 | -106,867 | ||||||||
Income taxes (benefit) | -1,095 | 6,406 | 247 | ||||||||
Net income | -345,368 | -112,142 | -107,114 | ||||||||
Net loss attributable to noncontrolling interests | 65,374 | 25,798 | 21,270 | ||||||||
Net income attributable to Steel Dynamics, Inc. | -279,994 | -86,344 | -85,844 | ||||||||
Consolidating Adjustments | |||||||||||
Condensed Consolidating Statements of Operations | |||||||||||
Net sales | -5,437,356 | -4,660,554 | -4,642,266 | ||||||||
Costs of goods sold | -5,326,933 | -4,573,242 | -4,571,416 | ||||||||
Gross profit | -110,423 | -87,312 | -70,850 | ||||||||
Selling, general and administrative | -18,149 | -16,435 | -16,005 | ||||||||
Operating income | -92,274 | -70,877 | -54,845 | ||||||||
Interest expense, net of capitalized interest | -4,930 | -4,771 | -5,289 | ||||||||
Other (income) expense, net | 4,930 | 4,771 | 5,289 | ||||||||
Income before income taxes | -92,274 | -70,877 | -54,845 | ||||||||
Income taxes (benefit) | -36,131 | -25,210 | -16,084 | ||||||||
Net income | -56,143 | -45,667 | -38,761 | ||||||||
Equity in net loss of subsidiaries | 181,339 | 39,138 | 29,183 | ||||||||
Net income attributable to Steel Dynamics, Inc. | $125,196 | ($6,529) | ($9,578) |
Condensed_Consolidating_Inform4
Condensed Consolidating Information (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Consolidating Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | $617,572 | $312,175 | $445,694 |
Net cash used in investing activities | -1,747,267 | -152,845 | -191,601 |
Net cash provided by (used in) financing activities | 1,095,902 | -140,091 | -268,937 |
Increase (decrease) in cash and equivalents | -33,793 | 19,239 | -14,844 |
Cash and equivalents at beginning of year | 395,156 | 375,917 | 390,761 |
Cash and equivalents at end of year | 361,363 | 395,156 | 375,917 |
Reportable legal entity | Parent | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | 400,204 | 190,616 | 306,613 |
Net cash used in investing activities | -1,690,363 | -170,561 | -104,242 |
Net cash provided by (used in) financing activities | 1,234,606 | -21,896 | -180,737 |
Increase (decrease) in cash and equivalents | -55,553 | -1,841 | 21,634 |
Cash and equivalents at beginning of year | 320,866 | 322,707 | 301,073 |
Cash and equivalents at end of year | 265,313 | 320,866 | 322,707 |
Reportable legal entity | Guarantors | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | 279,080 | 190,885 | 209,579 |
Net cash used in investing activities | -8,883 | -41,415 | -107,274 |
Net cash provided by (used in) financing activities | -249,655 | -129,997 | -119,329 |
Increase (decrease) in cash and equivalents | 20,542 | 19,473 | -17,024 |
Cash and equivalents at beginning of year | 61,148 | 41,675 | 58,699 |
Cash and equivalents at end of year | 81,690 | 61,148 | 41,675 |
Reportable legal entity | Combined Non-Guarantors | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | -38,666 | -80,525 | -76,363 |
Net cash used in investing activities | -23,206 | -23,086 | -95,314 |
Net cash provided by (used in) financing activities | 63,090 | 105,218 | 152,223 |
Increase (decrease) in cash and equivalents | 1,218 | 1,607 | -19,454 |
Cash and equivalents at beginning of year | 13,142 | 11,535 | 30,989 |
Cash and equivalents at end of year | 14,360 | 13,142 | 11,535 |
Consolidating Adjustments | |||
Condensed Consolidating Statements of Cash Flows | |||
Net cash provided by (used in) operating activities | -23,046 | 11,199 | 5,865 |
Net cash used in investing activities | -24,815 | 82,217 | 115,229 |
Net cash provided by (used in) financing activities | $47,861 | ($93,416) | ($121,094) |
Quarterly_Financial_Informatio2
Quarterly Financial Information (unaudited, in thousands, except per share data) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenue, Net | $2,517,093,000 | $2,339,016,000 | $2,069,761,000 | $1,830,082,000 | $1,864,150,000 | $1,911,738,000 | $1,801,340,000 | $1,795,696,000 | $8,755,952,000 | $7,372,924,000 | $7,290,234,000 |
Gross Profit | 291,624,000 | 288,512,000 | 222,771,000 | 163,304,000 | 197,996,000 | 197,192,000 | 147,692,000 | 176,264,000 | 966,211,000 | 719,144,000 | 719,898,000 |
Operating income (loss) | -81,160,000 | 188,643,000 | 131,905,000 | 80,932,000 | 107,822,000 | 113,273,000 | 69,198,000 | 96,232,000 | 320,320,000 | 386,525,000 | 391,165,000 |
Net income (loss) | -96,046,000 | 87,657,000 | 66,341,000 | 33,698,000 | 47,901,000 | 51,090,000 | 23,273,000 | 41,252,000 | 91,650,000 | 163,516,000 | 142,281,000 |
Net income (loss) attributable to Steel Dynamics, Inc. | -45,031,000 | 91,173,000 | 72,303,000 | 38,579,000 | 54,655,000 | 57,486,000 | 28,958,000 | 48,215,000 | 157,024,000 | 189,314,000 | 163,551,000 |
Basic (in dollars per share) | ($0.19) | $0.38 | $0.32 | $0.17 | $0.25 | $0.26 | $0.13 | $0.22 | $0.68 | $0.86 | $0.75 |
Diluted (in dollars per share) | ($0.19) | $0.38 | $0.31 | $0.17 | $0.24 | $0.25 | $0.13 | $0.21 | $0.67 | $0.83 | $0.73 |
Other non-operating expenses | 25,000,000 | ||||||||||
Minnesota Ironmaking Operations | |||||||||||
Operating income (loss) | -260,000,000 | ||||||||||
Net income (loss) | -179,100,000 | ||||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | ($132,600,000) |