Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'STEEL DYNAMICS INC | ' |
Entity Central Index Key | '0001022671 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 240,040,043 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and equivalents | $357,490 | $395,156 |
Accounts receivable, net | 852,440 | 664,208 |
Accounts receivable-related parties | 58,356 | 56,392 |
Inventories | 1,320,871 | 1,314,747 |
Deferred income taxes | 17,813 | 17,964 |
Other current assets | 23,216 | 25,167 |
Total current assets | 2,630,186 | 2,473,634 |
Property, plant and equipment, net | 2,177,007 | 2,226,134 |
Restricted cash | 18,460 | 23,827 |
Intangible assets, net | 372,819 | 386,159 |
Goodwill | 728,751 | 731,996 |
Other assets | 57,979 | 91,256 |
Total assets | 5,985,202 | 5,933,006 |
Current liabilities | ' | ' |
Accounts payable | 422,761 | 404,605 |
Accounts payable-related parties | 17,930 | 10,327 |
Income taxes payable | 19,448 | 4,023 |
Accrued payroll and benefits | 74,155 | 93,432 |
Accrued interest | 30,682 | 31,363 |
Accrued expenses | 86,486 | 89,884 |
Current maturities of long-term debt | 61,761 | 341,544 |
Total current liabilities | 713,223 | 975,178 |
Long-term debt | ' | ' |
Senior term loan | 199,375 | 220,000 |
Senior notes | 1,500,000 | 1,500,000 |
Other long-term debt | 42,753 | 46,045 |
Total long-term debt | 1,742,128 | 1,766,045 |
Deferred income taxes | 548,285 | 556,038 |
Other liabilities | 22,356 | 23,376 |
Commitments and contingencies | ' | ' |
Redeemable noncontrolling interests | 124,180 | 116,514 |
Equity | ' | ' |
Common stock voting, $.0025 par value; 900,000,000 shares authorized; 259,588,037 and 258,840,350 shares issued; and 239,620,885 and 222,867,408 shares outstanding, as of June 30, 2014 and December 31, 2013, respectively | 647 | 645 |
Treasury stock, at cost; 19,967,152 and 35,972,942 shares, as of June 30, 2014 and December 31, 2013, respectively | -398,818 | -718,529 |
Additional paid-in capital | 1,058,921 | 1,085,694 |
Retained earnings | 2,237,147 | 2,179,513 |
Total Steel Dynamics, Inc. equity | 2,897,897 | 2,547,323 |
Noncontrolling interests | -62,867 | -51,468 |
Total equity | 2,835,030 | 2,495,855 |
Total liabilities and equity | $5,985,202 | $5,933,006 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
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) | 259,588,037 | 258,840,350 |
Common stock voting, shares outstanding (in shares) | 239,620,885 | 222,867,408 |
Treasury stock, shares (in shares) | 19,967,152 | 35,972,942 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net sales | ' | ' | ' | ' |
Unrelated parties | $1,987,635 | $1,735,420 | $3,753,516 | $3,463,821 |
Related parties | 82,126 | 65,920 | 146,327 | 133,215 |
Total net sales | 2,069,761 | 1,801,340 | 3,899,843 | 3,597,036 |
Costs of goods sold | 1,846,990 | 1,653,648 | 3,513,768 | 3,273,080 |
Gross profit | 222,771 | 147,692 | 386,075 | 323,956 |
Selling, general and administrative expenses | 73,463 | 65,356 | 143,505 | 130,618 |
Profit sharing | 10,469 | 4,779 | 15,864 | 11,422 |
Amortization of intangible assets | 6,934 | 8,051 | 13,869 | 16,178 |
Impairment charges | ' | 308 | ' | 308 |
Total selling, general and administrative expenses | 90,866 | 78,494 | 173,238 | 158,526 |
Operating income | 131,905 | 69,198 | 212,837 | 165,430 |
Interest expense, net of capitalized interest | 30,050 | 31,465 | 60,619 | 66,094 |
Other expense (income), net | -1,754 | -1,246 | -2,385 | -2,292 |
Income before income taxes | 103,609 | 38,979 | 154,603 | 101,628 |
Income taxes | 37,268 | 15,706 | 54,564 | 37,103 |
Net income | 66,341 | 23,273 | 100,039 | 64,525 |
Net loss attributable to noncontrolling interests | 5,962 | 5,685 | 10,843 | 12,648 |
Net income attributable to Steel Dynamics, Inc. | $72,303 | $28,958 | $110,882 | $77,173 |
Basic earnings per share attributable to Steel Dynamics, Inc. stockholders (in dollars per share) | $0.32 | $0.13 | $0.49 | $0.35 |
Weighted average common shares outstanding (in shares) | 226,220 | 220,471 | 224,615 | 220,233 |
Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share) | $0.31 | $0.13 | $0.48 | $0.34 |
Weighted average common shares and share equivalents outstanding (in shares) | 242,048 | 221,736 | 241,721 | 238,246 |
Dividends declared per share (in dollars per share) | $0.12 | $0.11 | $0.23 | $0.22 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities: | ' | ' | ' | ' |
Net income | $66,341 | $23,273 | $100,039 | $64,525 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' |
Depreciation and amortization | 58,441 | 56,826 | 116,009 | 113,887 |
Equity-based compensation | 4,700 | 2,344 | 10,468 | 7,097 |
Impairment charges | ' | 308 | ' | 308 |
Deferred income taxes | -280 | 10,812 | -4,371 | 21,747 |
(Gain) loss on disposal of property, plant and equipment | 3,456 | 588 | 6,097 | -795 |
Changes in certain assets and liabilities: | ' | ' | ' | ' |
Accounts receivable | -99,696 | -19,826 | -188,646 | -130,764 |
Inventories | 11,230 | 1,660 | -6,124 | 34,008 |
Other assets | 345 | 6,783 | 7,704 | 10,141 |
Accounts payable | 13,385 | -46,370 | 18,426 | -7,382 |
Income taxes receivable/payable | -4,964 | -23,304 | 14,429 | -26,326 |
Accrued expenses and liabilities | 23,056 | 19,621 | -25,264 | -24,021 |
Net cash provided by (used in) operating activities | 76,014 | 32,715 | 48,767 | 62,425 |
Investing activities: | ' | ' | ' | ' |
Purchases of property, plant and equipment | -33,534 | -49,236 | -58,375 | -94,582 |
Proceeds from maturities of short-term commercial paper | ' | ' | ' | 31,520 |
Other investing activities | 2,314 | 863 | 31,198 | 3,277 |
Net cash provided by used in investing activities | -31,220 | -48,373 | -27,177 | -59,785 |
Financing activities: | ' | ' | ' | ' |
Issuance of current and long-term debt | 63,945 | 32 | 107,398 | 409,293 |
Repayment of current and long-term debt | -76,412 | -202,312 | -132,658 | -508,003 |
Debt issuance costs | ' | -195 | ' | -6,192 |
Proceeds from exercise of stock options, including related tax effect | 8,516 | 2,977 | 11,421 | 10,591 |
Contributions from noncontrolling investors, net | -606 | 5,286 | 4,764 | 5,697 |
Dividends paid | -25,666 | -24,238 | -50,181 | -46,190 |
Net cash used in financing activities | -30,223 | -218,450 | -59,256 | -134,804 |
Increase (decrease) in cash and equivalents | 14,571 | -234,108 | -37,666 | -132,164 |
Cash and equivalents at beginning of period | 342,919 | 477,861 | 395,156 | 375,917 |
Cash and equivalents at end of period | 357,490 | 243,753 | 357,490 | 243,753 |
Supplemental disclosure information: | ' | ' | ' | ' |
Cash paid for interest | 20,838 | 17,583 | 60,501 | 67,315 |
Cash paid for federal and state income taxes, net | $43,008 | $27,360 | $45,151 | $38,525 |
Description_of_the_Business_an
Description of the Business and Significant Accounting Policies | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Description of the Business and Significant Accounting Policies | ' | |||||||
Description of the Business and Significant Accounting Policies | ' | |||||||
Note 1. Description of the Business and Significant Accounting Policies | ||||||||
Description of the Business | ||||||||
Steel Dynamics, Inc. (SDI), together with its subsidiaries (the company), is a domestic manufacturer of steel products and metals recycler. The company has three reporting segments: steel operations, metals recycling and ferrous resources operations, and steel fabrication operations. | ||||||||
Steel Operations. Steel operations include the company’s Flat Roll Division, Structural and Rail Division, Engineered Bar Products Division, Roanoke Bar Division, Steel of West Virginia and The Techs operations. These operations consist of mini-mills, producing steel from steel scrap, using electric arc furnaces, continuous casting, automated rolling mills, and downstream finishing facilities. Steel operations accounted for 61% of the company’s external net sales during each of the three-month periods ended June 30, 2014 and 2013, and 61% and 60% of the company’s external net sales during the six-month periods ended June 30, 2014 and 2013, respectively. | ||||||||
Metals Recycling and Ferrous Resources Operations. Metals recycling and ferrous resources operations primarily include OmniSource Corporation, the company’s metals recycling, steel scrap procurement, and processing locations, and our two ironmaking initiatives: Iron Dynamics, a liquid pig iron production facility; and our Minnesota iron operations, an iron nugget production facility and operations to supply the nugget facility with its primary raw material, iron concentrate. Metals recycling and ferrous resources operations accounted for 31% and 33% of the company’s external net sales during the three-month periods ended June 30, 2014 and 2013, respectively, and 31% and 34% of the company’s external net sales during the six-month periods ended June 30, 2014 and 2013, respectively. | ||||||||
Steel Fabrication Operations. Steel fabrication operations include the company’s six New Millennium Building Systems joist and deck plants located throughout the United States and Northern Mexico. Revenues from these plants are generated from the fabrication of trusses, girders, steel joists and steel decking used within the non-residential construction industry. Steel fabrication operations accounted for approximately 7% and 6% of the company’s external net sales during the three-month periods ended June 30, 2014 and 2013, respectively, and 6% of the company’s external net sales for each of the six-month periods ended June 30, 2014 and 2013. | ||||||||
Significant Accounting Policies | ||||||||
Principles of Consolidation. The consolidated financial statements include the accounts of SDI, together with its wholly and majority-owned or controlled subsidiaries, after elimination of significant intercompany accounts and transactions. Noncontrolling interests represent the noncontrolling owner’s proportionate share in the equity, income, or losses of the company’s majority-owned or controlled consolidated subsidiaries. | ||||||||
Use of Estimates. These financial statements are prepared in conformity with accounting principles generally accepted in the United States and, accordingly, include amounts that require management to make estimates and assumptions that affect the amounts reported in the financial statements and in the notes thereto. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment, intangible assets and goodwill; valuation allowances for trade receivables, inventories and deferred income tax assets; unrecognized tax benefits; potential environmental liabilities; and litigation claims and settlements. Actual results may differ from these estimates and assumptions. | ||||||||
In the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the interim period results. These financial statements and notes should be read in conjunction with the audited financial statements and notes thereto included in the company’s Annual Report on Form 10-K for the year ended December 31, 2013. | ||||||||
Goodwill. The company’s goodwill is allocated to the following reporting units at June 30, 2014, and December 31, 2013, (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
OmniSource – Metals Recycling/Ferrous Resources Segment | $ | 555,002 | $ | 558,247 | ||||
The Techs – Steel Segment | 142,783 | 142,783 | ||||||
Roanoke Bar Division – Steel Segment | 29,041 | 29,041 | ||||||
New Millennium Building Systems – Fabrication Segment | 1,925 | 1,925 | ||||||
$ | 728,751 | $ | 731,996 | |||||
OmniSource goodwill decreased $3.2 million from December 31, 2013 to June 30, 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. | ||||||||
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 company is currently evaluating the impact of the provisions of ASC 606. | ||||||||
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||
Note 2. Earnings Per Share | ||||||||||||||||||
Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company’s basic earnings per share. Common share equivalents represent potentially dilutive stock options, restricted stock units, deferred stock units, and dilutive shares related to the company’s 5.125% convertible senior notes, which matured on June 15, 2014 and were dilutive through then; and are excluded from the computation in periods in which they have an anti-dilutive effect. No options to purchase shares were anti-dilutive at June 30, 2014, while options to purchase 2.5 million shares were anti-dilutive at June 30, 2013. The computation of diluted earnings per share for the three month period ended June 30, 2013 did not include the after-tax equivalent of interest of $2.4 million for the company’s 5.125% senior convertible notes due June 2014, and the related weighted average equivalent of 16.7 million shares, as the result would have been anti-dilutive. | ||||||||||||||||||
The following table presents a reconciliation of the numerators and the denominators of the company’s basic and diluted earnings per share computations for net income attributable to Steel Dynamics, Inc. (in thousands, except per share data): | ||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Net Income | Shares | Per Share | Net Income | Shares | Per Share | |||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | |||||||||||||
Basic earnings per share | $ | 72,303 | 226,220 | $ | 0.32 | $ | 28,958 | 220,471 | $ | 0.13 | ||||||||
Dilutive common share equivalents | — | 1,789 | — | 1,265 | ||||||||||||||
5.125% convertible senior notes, net of tax | 1,969 | 14,039 | — | — | ||||||||||||||
Diluted earnings per share | $ | 74,272 | 242,048 | $ | 0.31 | $ | 28,958 | 221,736 | $ | 0.13 | ||||||||
Six Months Ended June 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Net Income | Shares | Per Share | Net Income | Shares | Per Share | |||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | |||||||||||||
Basic earnings per share | $ | 110,882 | 224,615 | $ | 0.49 | $ | 77,173 | 220,233 | $ | 0.35 | ||||||||
Dilutive common share equivalents | — | 1,699 | — | 1,363 | ||||||||||||||
5.125% convertible senior notes, net of tax | 4,327 | 15,407 | 4,716 | 16,650 | ||||||||||||||
Diluted earnings per share | $ | 115,209 | 241,721 | $ | 0.48 | $ | 81,889 | 238,246 | $ | 0.34 | ||||||||
Inventories
Inventories | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
Note 3. 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 (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 614,098 | $ | 660,384 | ||||
Supplies | 288,631 | 293,533 | ||||||
Work in progress | 130,908 | 84,710 | ||||||
Finished goods | 287,234 | 276,120 | ||||||
Total inventories | $ | 1,320,871 | $ | 1,314,747 | ||||
Debt
Debt | 6 Months Ended |
Jun. 30, 2014 | |
Debt | ' |
Debt | ' |
Note 4. Debt | |
Holders of $271.8 million principal amount of the company’s 5.125% Convertible 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. | |
Changes_in_Equity
Changes in Equity | 6 Months Ended | ||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||
Changes in Equity | ' | ||||||||||||||||||||||
Changes in Equity | ' | ||||||||||||||||||||||
Note 5. Changes in Equity | |||||||||||||||||||||||
The following table provides a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to stockholders of Steel Dynamics, Inc. and equity and redeemable amounts attributable to the noncontrolling interests (in thousands): | |||||||||||||||||||||||
Stockholders of Steel Dynamics, Inc. | |||||||||||||||||||||||
Common | Additional | Retained | Treasury | Noncontrolling | Total | Redeemable | |||||||||||||||||
Paid-In | Noncontrolling | ||||||||||||||||||||||
Stock | Capital | Earnings | Stock | Interests | Equity | Interests | |||||||||||||||||
Balances at January 1, 2014 | $ | 645 | $ | 1,085,694 | $ | 2,179,513 | $ | (718,529 | ) | $ | (51,468 | ) | $ | 2,495,855 | $ | 116,514 | |||||||
Proceeds from the exercise of stock options, including related tax effect | 2 | 11,501 | — | — | — | 11,503 | — | ||||||||||||||||
Dividends declared | — | — | (53,221 | ) | — | — | (53,221 | ) | — | ||||||||||||||
Conversion of 5.125% convertible senior notes | — | (45,650 | ) | — | 317,451 | — | 271,801 | — | |||||||||||||||
Equity-based compensation and issuance of restricted stock | — | 7,376 | (27 | ) | 2,260 | — | 9,609 | — | |||||||||||||||
Contributions from noncontrolling investors | — | — | — | — | 97 | 97 | 7,666 | ||||||||||||||||
Distributions to noncontrolling investors | — | — | — | — | (653 | ) | (653 | ) | — | ||||||||||||||
Net income (loss) | — | — | 110,882 | — | (10,843 | ) | 100,039 | — | |||||||||||||||
Balances at June 30, 2014 | $ | 647 | $ | 1,058,921 | $ | 2,237,147 | $ | (398,818 | ) | $ | (62,867 | ) | $ | 2,835,030 | $ | 124,180 | |||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
Note 6. Derivative Financial Instruments | ||||||||||||||||||||
The company is exposed to certain risks relating to its ongoing business operations. The company utilizes derivative instruments to mitigate interest rate risk, foreign currency exchange rate risk, and commodity margin risk. Interest rate swaps may be entered into to manage interest rate risk associated with the company’s fixed and floating-rate borrowings. Forward exchange contracts on various foreign currencies may be entered into to manage foreign currency exchange rate risk as necessary. No interest rate swaps or forward exchange contracts on foreign currency existed for the periods presented. 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 designates certain of its nonferrous metals, forward exchange futures contracts as fair value hedges of inventory and firm sales commitments. | ||||||||||||||||||||
Commodity Futures Contracts. If the company is “long” on a futures contract, it means the company has more futures contracts purchased than futures contracts sold for the underlying commodity. If the company is “short” on a futures contract, it means the company has more futures contracts sold than futures contracts purchased for the underlying commodity. The following summarizes the company’s futures contract commitments as of June 30, 2014 (MT represents metric tons and Lbs represents pounds): | ||||||||||||||||||||
Commodity Futures | Long/Short | Total | ||||||||||||||||||
Aluminum | Long | 3,550 | MT | |||||||||||||||||
Aluminum | Short | 3,575 | MT | |||||||||||||||||
Copper | Long | 7,129 | MT | |||||||||||||||||
Copper | Short | 21,636 | MT | |||||||||||||||||
Silver | Short | 343 | Lbs | |||||||||||||||||
The following summarizes the location and amounts of the fair values reported on the company’s balance sheets as of June 30, 2014, and December 31, 2013, and gains and losses related to derivatives included in the company’s statement of income for the three and six-month periods ended June 30, 2014 and 2013 (in thousands): | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
Balance sheet location | June 30, 2014 | 2013 | June 30, 2014 | 2013 | ||||||||||||||||
Derivative instruments designated as fair value hedges - | ||||||||||||||||||||
Commodity futures | Other current assets | $ | 274 | $ | 658 | $ | (1,800 | ) | $ | 1,886 | ||||||||||
Derivative instruments not designated as hedges - | ||||||||||||||||||||
Commodity futures | Other current assets | $ | 708 | $ | 352 | $ | (1,781 | ) | 2,601 | |||||||||||
Total derivative instruments | $ | 982 | $ | 1,010 | $ | (3,581 | ) | $ | 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 totaled $5.1 million at June 30, 2014 and $3.6 million at December 31, 2013, are reflected in other current assets in the consolidated balance sheet. | ||||||||||||||||||||
Amount of gain (loss) | Amount of gain (loss) | |||||||||||||||||||
recognized in income on | recognized in income on | |||||||||||||||||||
derivatives for the three | related hedged items for the | |||||||||||||||||||
Location of gain (loss) | months ended | Hedged items | Location of gain (loss) | three months ended | ||||||||||||||||
recognized in income | June 30, | June 30, | in fair value hedge | recognized in income | June 30, | June 30, | ||||||||||||||
on derivatives | 2014 | 2013 | relationships | on related hedged item | 2014 | 2013 | ||||||||||||||
Derivatives in fair value hedging relationships - | ||||||||||||||||||||
Commodity futures | Costs of goods sold | $ | (2,632 | ) | $ | (654 | ) | Firm commitments | Costs of goods sold | $ | (653 | ) | $ | 1,297 | ||||||
Inventory | Costs of goods sold | 2,846 | (2,014 | ) | ||||||||||||||||
$ | 2,193 | $ | (717 | ) | ||||||||||||||||
Derivatives not designated as hedging instruments - | ||||||||||||||||||||
Commodity futures | Costs of goods sold | $ | (2,030 | ) | $ | 6,621 | ||||||||||||||
Amount of gain (loss) | Amount of gain (loss) | |||||||||||||||||||
recognized in income on | recognized in income on | |||||||||||||||||||
derivatives for the six months | related hedged items for the | |||||||||||||||||||
Location of gain (loss) | ended | Hedged items | Location of gain (loss) | six months ended | ||||||||||||||||
recognized in income | June 30, | June 30, | in fair value hedge | recognized in income | June 30, | June 30, | ||||||||||||||
on derivatives | 2014 | 2013 | relationships | on related hedged item | 2014 | 2013 | ||||||||||||||
Derivatives in fair value hedging relationships - | ||||||||||||||||||||
Commodity futures | Costs of goods sold | $ | (1,015 | ) | $ | 7,392 | Firm commitments | Costs of goods sold | $ | 331 | $ | 2,613 | ||||||||
Inventory | Costs of goods sold | 358 | (8,822 | ) | ||||||||||||||||
$ | 689 | $ | (6,209 | ) | ||||||||||||||||
Derivatives not designated as hedging instruments - | ||||||||||||||||||||
Commodity futures | Costs of goods sold | $ | 5,926 | $ | 6,629 | |||||||||||||||
Derivatives accounted for as fair value hedges had ineffectiveness resulting in a gain of $160,000 and in a loss of $108,000 during the three-month periods ended June 30, 2014 and 2013, respectively; and gains of $456,000 and $113,000 during the six-month periods ended June 30, 2014 and 2013, respectively. Losses excluded from hedge effectiveness testing of $599,000 and $1.2 million increased costs of goods sold during the three-month periods ended June 30, 2014 and 2013, respectively. A loss excluded from hedge effectiveness testing of $782,000 increased costs of goods sold and a gain excluded from hedge effectiveness testing of $1.1 million reduced cost of goods sold during the six-month periods ended June 30, 2014 and 2013, respectively. | ||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
Note 7. Fair Value Measurements | ||||||||||||||
FASB accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. Levels within the hierarchy are defined as follows: | ||||||||||||||
· | Level 1—Unadjusted quoted prices for identical assets and liabilities in active markets; | |||||||||||||
· | Level 2—Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable for the asset or liability, either directly or indirectly; and | |||||||||||||
· | Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||||||||||
The following table sets forth financial assets and liabilities measured at fair value in the consolidated balance sheets and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of June 30, 2014, and December 31, 2013 (in thousands): | ||||||||||||||
Total | Quoted Prices in | Significant | Significant | |||||||||||
Active Markets | Other | Unobservable | ||||||||||||
for Identical | Observable | Inputs | ||||||||||||
Assets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
June 30, 2014 | ||||||||||||||
Commodity futures – financial assets | $ | 982 | $ | — | $ | 982 | $ | — | ||||||
Commodity futures – financial liabilities | (3,581 | ) | — | (3,581 | ) | — | ||||||||
December 31, 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 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 $1.9 billion and $2.3 billion (with a corresponding carrying amount in the consolidated balance sheets of $1.8 billion and $2.1 billion) at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
Note 8. Commitments and Contingencies | |
The company is involved in various routine litigation matters, including administrative proceedings, regulatory proceedings, governmental investigations, environmental matters, and commercial and construction contract disputes, none of which are expected to have a material impact on our financial condition, results of operations, or liquidity. | |
The company is involved, along with other steel manufacturing companies, in a class action antitrust complaint filed in federal court in Chicago, Illinois in September 2008, which alleges 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. All but one of the complaints were brought on behalf of a purported class consisting of all direct purchasers of steel products. The other complaint was brought on behalf of a purported class consisting of all indirect purchasers of steel products within the same time period. A ninth complaint, in December 2010, was brought 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. Following a period of discovery relating to class certification matters, plaintiffs’ motion for class action certification filed in 2012, and briefing by both sides, the court, on March 5 — 7 and April 11, 2014, held a class certification hearing. At the conclusion of the hearing, the court took the class certification issue 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. | |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||
Segment Information | ' | |||||||||||||||||||
Note 9. Segment Information | ||||||||||||||||||||
The company has three reportable segments: steel operations, metals recycling and ferrous resources operations, and steel fabrication operations. 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 (which matured in June 2014), 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 and intra-company sales and any related profits are eliminated in consolidation. Refer to the company’s Annual Report on Form 10-K for the year ended December 31, 2013, for more information related to the company’s segment reporting. The company’s segment results for the three and six-month periods ended June 30, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||||||
For the three months ended | Metals Recycling / | Steel Fabrication | ||||||||||||||||||
June 30, 2014 | Steel Operations | Ferrous Resources | Operations | Other | Eliminations | Consolidated | ||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 1,214,247 | $ | 587,385 | $ | 134,852 | $ | 24,181 | $ | — | $ | 1,960,665 | ||||||||
External Non-U.S. | 50,857 | 57,831 | — | 408 | — | 109,096 | ||||||||||||||
Other segments | 69,802 | 303,617 | — | 7,309 | (380,728 | ) | — | |||||||||||||
1,334,906 | 948,833 | 134,852 | 31,898 | (380,728 | ) | 2,069,761 | ||||||||||||||
Operating income (loss) | 155,949 | (6,053 | ) | 7,590 | (24,159 | )(1) | (1,422 | )(2) | 131,905 | |||||||||||
Income (loss) before income taxes | 142,594 | (12,634 | ) | 6,099 | (31,028 | ) | (1,422 | ) | 103,609 | |||||||||||
Depreciation and amortization | 28,869 | 25,870 | 2,401 | 1,352 | (51 | ) | 58,441 | |||||||||||||
Capital expenditures | 16,332 | 16,384 | 536 | 282 | — | 33,534 | ||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||
Assets | 2,732,388 | 2,551,899 | 297,149 | 624,518 | -3 | (220,752 | )(4) | 5,985,202 | ||||||||||||
Liabilities | 578,124 | 640,459 | 20,879 | 1,996,306 | -5 | (209,776 | )(6) | 3,025,992 | ||||||||||||
Footnotes related to the three months ended June 30, 2014 segment results (in millions): | ||||||||||||||||||||
-1 | Corporate SG&A | $ | (11.0 | ) | ||||||||||||||||
Company-wide equity-based compensation | (4.7 | ) | ||||||||||||||||||
Profit sharing | (8.9 | ) | ||||||||||||||||||
Other, net | 0.4 | |||||||||||||||||||
$ | (24.2 | ) | ||||||||||||||||||
-2 | Gross profit decrease from intra-company sales | $ | (1.4 | ) | ||||||||||||||||
-3 | Cash and equivalents | $ | 299.9 | |||||||||||||||||
Accounts receivable | 14.4 | |||||||||||||||||||
Inventories | 12.4 | |||||||||||||||||||
Deferred income taxes | 17.7 | |||||||||||||||||||
Property, plant and equipment, net | 70.9 | |||||||||||||||||||
Debt issuance costs | 22.9 | |||||||||||||||||||
Intra-company debt | 158.1 | |||||||||||||||||||
Other | 28.2 | |||||||||||||||||||
$ | 624.5 | |||||||||||||||||||
-4 | Elimination of intra-company receivables | $ | (52.0 | ) | ||||||||||||||||
Elimination of intra-company debt | (158.1 | ) | ||||||||||||||||||
Other | (10.7 | ) | ||||||||||||||||||
$ | (220.8 | ) | ||||||||||||||||||
-5 | Accounts payable | $ | 46.0 | |||||||||||||||||
Income taxes payable | 19.4 | |||||||||||||||||||
Accrued interest | 30.5 | |||||||||||||||||||
Accrued profit sharing | 13.6 | |||||||||||||||||||
Debt | 1,737.0 | |||||||||||||||||||
Deferred income taxes | 120.5 | |||||||||||||||||||
Other | 29.3 | |||||||||||||||||||
$ | 1,996.3 | |||||||||||||||||||
-6 | Elimination of intra-company payables | $ | (52.4 | ) | ||||||||||||||||
Elimination of intra-company debt | (158.1 | ) | ||||||||||||||||||
Other | 0.7 | |||||||||||||||||||
$ | (209.8 | ) | ||||||||||||||||||
For the three months ended | Metals Recycling / | Steel Fabrication | ||||||||||||||||||
June 30, 2013 | Steel Operations | Ferrous Resources | Operations | Other | Eliminations | Consolidated | ||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 1,038,868 | $ | 538,599 | $ | 103,595 | $ | 20,828 | $ | — | $ | 1,701,890 | ||||||||
External Non-U.S. | 52,148 | 46,893 | — | 409 | — | 99,450 | ||||||||||||||
Other segments | 52,897 | 275,666 | 564 | 6,885 | (336,012 | ) | — | |||||||||||||
1,143,913 | 861,158 | 104,159 | 28,122 | (336,012 | ) | 1,801,340 | ||||||||||||||
Operating income (loss) | 85,545 | (7,251 | ) | 2,330 | (14,434 | )(1) | 3,008 | -2 | 69,198 | |||||||||||
Income (loss) before income taxes | 71,732 | (14,439 | ) | 800 | (22,122 | ) | 3,008 | 38,979 | ||||||||||||
Depreciation and amortization | 26,496 | 26,704 | 2,179 | 1,498 | (51 | ) | 56,826 | |||||||||||||
Capital expenditures | 34,533 | 13,545 | 822 | 336 | — | 49,236 | ||||||||||||||
As of June 30, 2013 | ||||||||||||||||||||
Assets | 2,582,168 | 2,490,215 | 261,556 | 604,195 | -3 | (202,224 | )(4) | 5,735,910 | ||||||||||||
Liabilities | 512,634 | 522,306 | 16,136 | 2,362,721 | -5 | (193,358 | )(6) | 3,220,439 | ||||||||||||
Footnotes related to the three months ended June 30, 2013 segment results (in millions): | ||||||||||||||||||||
-1 | Corporate SG&A | $ | (9.1 | ) | ||||||||||||||||
Company-wide equity-based compensation | (2.0 | ) | ||||||||||||||||||
Profit sharing | (3.2 | ) | ||||||||||||||||||
Other, net | (0.1 | ) | ||||||||||||||||||
Total | $ | (14.4 | ) | |||||||||||||||||
-2 | Gross profit increase from intra-company sales | $ | 3.0 | |||||||||||||||||
-3 | Cash and equivalents | $ | 218.2 | |||||||||||||||||
Accounts receivable | 13.6 | |||||||||||||||||||
Inventories | 15.5 | |||||||||||||||||||
Deferred income taxes | 23.6 | |||||||||||||||||||
Property, plant and equipment, net | 73.7 | |||||||||||||||||||
Debt issuance costs, net | 29.3 | |||||||||||||||||||
Intra-company debt | 154.2 | |||||||||||||||||||
Other | 76.1 | |||||||||||||||||||
Total | $ | 604.2 | ||||||||||||||||||
-4 | Elimination of intra-company receivables | $ | (40.2 | ) | ||||||||||||||||
Elimination of intra-company debt | (154.2 | ) | ||||||||||||||||||
Other | (7.8 | ) | ||||||||||||||||||
Total | $ | (202.2 | ) | |||||||||||||||||
-5 | Accounts payable | $ | 43.5 | |||||||||||||||||
Income taxes payable | 2.9 | |||||||||||||||||||
Accrued interest | 32.3 | |||||||||||||||||||
Accrued profit sharing | 9.2 | |||||||||||||||||||
Debt | 2,045.3 | |||||||||||||||||||
Deferred income taxes | 205.1 | |||||||||||||||||||
Other | 24.4 | |||||||||||||||||||
Total | $ | 2,362.7 | ||||||||||||||||||
-6 | Elimination of intra-company payables | $ | (40.5 | ) | ||||||||||||||||
Elimination of intra-company debt | (154.2 | ) | ||||||||||||||||||
Other | 1.3 | |||||||||||||||||||
Total | $ | (193.4 | ) | |||||||||||||||||
For the six months ended | Metals Recycling / | Steel Fabrication | ||||||||||||||||||
June 30, 2014 | Steel Operations | Ferrous Resources | Operations | Other | Eliminations | Consolidated | ||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 2,275,326 | $ | 1,105,342 | $ | 250,713 | $ | 44,802 | $ | — | $ | 3,676,183 | ||||||||
External Non-U.S. | 107,376 | 115,648 | — | 636 | — | 223,660 | ||||||||||||||
Other segments | 113,534 | 647,545 | — | 13,982 | (775,061 | ) | — | |||||||||||||
2,496,236 | 1,868,535 | 250,713 | 59,420 | (775,061 | ) | 3,899,843 | ||||||||||||||
Operating income (loss) | 261,592 | (21,572 | ) | 10,716 | (40,704 | )(1) | 2,805 | -2 | 212,837 | |||||||||||
Income (loss) before income taxes | 234,592 | (35,330 | ) | 7,751 | (55,215 | ) | 2,805 | 154,603 | ||||||||||||
Depreciation and amortization | 56,246 | 52,491 | 4,623 | 2,751 | (102 | ) | 116,009 | |||||||||||||
Capital expenditures | 34,938 | 22,163 | 847 | 427 | — | 58,375 | ||||||||||||||
Footnotes related to the six months ended June 30, 2014 segment results (in millions): | ||||||||||||||||||||
-1 | Corporate SG&A | $ | (19.3 | ) | ||||||||||||||||
Company-wide equity-based compensation | (9.3 | ) | ||||||||||||||||||
Profit sharing | (13.6 | ) | ||||||||||||||||||
Other, net | 1.5 | |||||||||||||||||||
Total | $ | (40.7 | ) | |||||||||||||||||
-2 | Gross profit increase from intra-company sales | $ | 2.8 | |||||||||||||||||
For the six months ended | Metals Recycling / | Steel Fabrication | ||||||||||||||||||
June 30, 2013 | Steel Operations | Ferrous Resources | Operations | Other | Eliminations | Consolidated | ||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 2,050,063 | $ | 1,096,210 | $ | 197,392 | $ | 40,199 | $ | — | $ | 3,383,864 | ||||||||
External Non-U.S. | 102,265 | 110,410 | — | 497 | — | 213,172 | ||||||||||||||
Other segments | 113,945 | 552,030 | 1,142 | 12,280 | (679,397 | ) | — | |||||||||||||
2,266,273 | 1,758,650 | 198,534 | 52,976 | (679,397 | ) | 3,597,036 | ||||||||||||||
Operating income (loss) | 204,846 | (17,075 | ) | 3,860 | (30,873 | )(1) | 4,672 | -2 | 165,430 | |||||||||||
Income (loss) before income taxes | 176,739 | (32,293 | ) | 724 | (48,214 | ) | 4,672 | 101,628 | ||||||||||||
Depreciation and amortization | 52,883 | 53,840 | 4,236 | 3,030 | (102 | ) | 113,887 | |||||||||||||
Capital expenditures | 59,259 | 32,614 | 1,703 | 1,006 | — | 94,582 | ||||||||||||||
Footnotes related to the six months ended June 30, 2013 segment results (in millions): | ||||||||||||||||||||
-1 | Corporate SG&A | $ | (17.1 | ) | ||||||||||||||||
Company-wide equity-based compensation | (5.2 | ) | ||||||||||||||||||
Profit sharing | (9.1 | ) | ||||||||||||||||||
Other, net | 0.5 | |||||||||||||||||||
Total | $ | (30.9 | ) | |||||||||||||||||
-2 | Gross profit increase from intra-company sales | $ | 4.7 | |||||||||||||||||
Condensed_Consolidating_Inform
Condensed Consolidating Information | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Condensed Consolidating Information | ' | ||||||||||||||||
Condensed Consolidating Information | ' | ||||||||||||||||
Note 10. Condensed Consolidating Information | |||||||||||||||||
Certain 100%-owned subsidiaries of SDI have fully and unconditionally guaranteed all of the indebtedness relating to the issuance of the company’s senior notes due 2019, 2020, 2022 and 2023. Following are the company’s condensed consolidating financial statements, including the guarantors, which present the financial position, results of operations and cash flows of (i) SDI (in each case, reflecting investments in its consolidated subsidiaries under the equity method of accounting), (ii) the guarantor subsidiaries of SDI, (iii) the non-guarantor subsidiaries of SDI, and (iv) the eliminations necessary to arrive at the information on a consolidated basis. The following statements should be read in conjunction with the accompanying consolidated financial statements and the company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |||||||||||||||||
Condensed Consolidating Balance Sheets (in thousands) | |||||||||||||||||
Combined | Consolidating | Total | |||||||||||||||
As of June 30, 2014 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Cash and equivalents | $ | 297,225 | $ | 50,461 | $ | 9,804 | $ | — | $ | 357,490 | |||||||
Accounts receivable, net | 367,627 | 1,077,153 | 49,880 | (583,864 | ) | 910,796 | |||||||||||
Inventories | 684,841 | 543,977 | 97,561 | (5,508 | ) | 1,320,871 | |||||||||||
Other current assets | 47,442 | 7,719 | 4,310 | (18,442 | ) | 41,029 | |||||||||||
Total current assets | 1,397,135 | 1,679,310 | 161,555 | (607,814 | ) | 2,630,186 | |||||||||||
Property, plant and equipment, net | 1,033,622 | 584,587 | 561,115 | (2,317 | ) | 2,177,007 | |||||||||||
Intangible assets, net | — | 372,819 | — | — | 372,819 | ||||||||||||
Goodwill | — | 728,751 | — | — | 728,751 | ||||||||||||
Other assets, including investments in subs | 2,615,185 | 21,781 | 7,109 | (2,567,636 | ) | 76,439 | |||||||||||
Total assets | $ | 5,045,942 | $ | 3,387,248 | $ | 729,779 | $ | (3,177,767 | ) | $ | 5,985,202 | ||||||
Accounts payable | $ | 168,091 | $ | 284,773 | $ | 94,049 | $ | (106,222 | ) | $ | 440,691 | ||||||
Accrued expenses | 142,351 | 117,303 | 10,089 | (58,972 | ) | 210,771 | |||||||||||
Current maturities of long-term debt | 34,925 | 300 | 66,474 | (39,938 | ) | 61,761 | |||||||||||
Total current liabilities | 345,367 | 402,376 | 170,612 | (205,132 | ) | 713,223 | |||||||||||
Long-term debt | 1,704,528 | — | 184,554 | (146,954 | ) | 1,742,128 | |||||||||||
Other liabilities | 98,150 | 2,022,395 | 35,504 | (1,585,408 | ) | 570,641 | |||||||||||
Redeemable noncontrolling interests | — | — | 124,180 | — | 124,180 | ||||||||||||
Common stock | 647 | 33,896 | 18,121 | (52,017 | ) | 647 | |||||||||||
Treasury stock | (398,818 | ) | — | — | — | (398,818 | ) | ||||||||||
Additional paid-in-capital | 1,058,921 | 117,737 | 585,348 | (703,085 | ) | 1,058,921 | |||||||||||
Retained earnings (deficit) | 2,237,147 | 810,844 | (325,673 | ) | (485,171 | ) | 2,237,147 | ||||||||||
Total Steel Dynamics, Inc. equity | 2,897,897 | 962,477 | 277,796 | (1,240,273 | ) | 2,897,897 | |||||||||||
Noncontrolling interests | — | — | (62,867 | ) | — | (62,867 | ) | ||||||||||
Total equity | 2,897,897 | 962,477 | 214,929 | (1,240,273 | ) | 2,835,030 | |||||||||||
Total liabilities and equity | $ | 5,045,942 | $ | 3,387,248 | $ | 729,779 | $ | (3,177,767 | ) | $ | 5,985,202 | ||||||
Combined | Consolidating | Total | |||||||||||||||
As of December 31, 2013 | Parent | Guarantors | 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 | ||||||
Condensed Consolidating Statements of Operations (in thousands) | |||||||||||||||||
For the three months ended, | Combined | Consolidating | Total | ||||||||||||||
June 30, 2014 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net sales | $ | 1,007,569 | $ | 2,313,459 | $ | 121,239 | $ | (1,372,506 | ) | $ | 2,069,761 | ||||||
Costs of goods sold | 860,024 | 2,183,181 | 141,362 | (1,337,577 | ) | 1,846,990 | |||||||||||
Gross profit (loss) | 147,545 | 130,278 | (20,123 | ) | (34,929 | ) | 222,771 | ||||||||||
Selling, general and administrative | 35,419 | 56,411 | 3,406 | (4,370 | ) | 90,866 | |||||||||||
Operating income (loss) | 112,126 | 73,867 | (23,529 | ) | (30,559 | ) | 131,905 | ||||||||||
Interest expense, net of capitalized interest | 19,031 | 10,294 | 1,986 | (1,261 | ) | 30,050 | |||||||||||
Other (income) expense, net | (1,556 | ) | (46 | ) | (1,412 | ) | 1,260 | (1,754 | ) | ||||||||
Income (loss) before income taxes and equity in net income of subsidiaries | 94,651 | 63,619 | (24,103 | ) | (30,558 | ) | 103,609 | ||||||||||
Income taxes (benefit) | 23,950 | 23,076 | 814 | (10,572 | ) | 37,268 | |||||||||||
70,701 | 40,543 | (24,917 | ) | (19,986 | ) | 66,341 | |||||||||||
Equity in net loss of subsidiaries | 1,602 | — | — | (1,602 | ) | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 5,962 | — | 5,962 | ||||||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ | 72,303 | $ | 40,543 | $ | (18,955 | ) | $ | (21,588 | ) | $ | 72,303 | |||||
For the three months ended, | Combined | Consolidating | Total | ||||||||||||||
June 30, 2013 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net sales | $ | 836,805 | $ | 1,998,513 | $ | 88,039 | $ | (1,122,017 | ) | $ | 1,801,340 | ||||||
Costs of goods sold | 753,761 | 1,900,497 | 107,814 | (1,108,424 | ) | 1,653,648 | |||||||||||
Gross profit (loss) | 83,044 | 98,016 | (19,775 | ) | (13,593 | ) | 147,692 | ||||||||||
Selling, general and administrative | 24,916 | 54,764 | 2,673 | (3,859 | ) | 78,494 | |||||||||||
Operating income (loss) | 58,128 | 43,252 | (22,448 | ) | (9,734 | ) | 69,198 | ||||||||||
Interest expense, net of capitalized interest | 20,148 | 10,751 | 1,789 | (1,223 | ) | 31,465 | |||||||||||
Other (income) expense, net | (1,533 | ) | 214 | (1,149 | ) | 1,222 | (1,246 | ) | |||||||||
Income (loss) before income taxes and equity in net loss of subsidiaries | 39,513 | 32,287 | (23,088 | ) | (9,733 | ) | 38,979 | ||||||||||
Income taxes (benefit) | 5,621 | 12,214 | 1,382 | (3,511 | ) | 15,706 | |||||||||||
33,892 | 20,073 | (24,470 | ) | (6,222 | ) | 23,273 | |||||||||||
Equity in net loss of subsidiaries | (4,934 | ) | — | — | 4,934 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 5,685 | — | 5,685 | ||||||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ | 28,958 | $ | 20,073 | $ | (18,785 | ) | $ | (1,288 | ) | $ | 28,958 | |||||
For the six months ended, | Combined | Consolidating | Total | ||||||||||||||
June 30, 2014 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net sales | $ | 1,871,132 | $ | 4,425,848 | $ | 227,088 | $ | (2,624,225 | ) | $ | 3,899,843 | ||||||
Costs of goods sold | 1,621,419 | 4,198,757 | 264,935 | (2,571,343 | ) | 3,513,768 | |||||||||||
Gross profit (loss) | 249,713 | 227,091 | (37,847 | ) | (52,882 | ) | 386,075 | ||||||||||
Selling, general and administrative | 64,253 | 110,700 | 6,814 | (8,529 | ) | 173,238 | |||||||||||
Operating income (loss) | 185,460 | 116,391 | (44,661 | ) | (44,353 | ) | 212,837 | ||||||||||
Interest expense, net of capitalized interest | 38,392 | 20,855 | 3,866 | (2,494 | ) | 60,619 | |||||||||||
Other (income) expense, net | (2,532 | ) | 349 | (2,696 | ) | 2,494 | (2,385 | ) | |||||||||
Income (loss) before income taxes and equity in net loss of subsidiaries | 149,600 | 95,187 | (45,831 | ) | (44,353 | ) | 154,603 | ||||||||||
Income taxes (benefit) | 33,875 | 34,018 | 1,510 | (14,839 | ) | 54,564 | |||||||||||
115,725 | 61,169 | (47,341 | ) | (29,514 | ) | 100,039 | |||||||||||
Equity in net loss of subsidiaries | (4,843 | ) | — | — | 4,843 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 10,843 | — | 10,843 | ||||||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ | 110,882 | $ | 61,169 | $ | (36,498 | ) | $ | (24,671 | ) | $ | 110,882 | |||||
For the six months ended, | Combined | Consolidating | Total | ||||||||||||||
June 30, 2013 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net sales | $ | 1,664,006 | $ | 4,014,000 | $ | 154,409 | $ | (2,235,379 | ) | $ | 3,597,036 | ||||||
Costs of goods sold | 1,460,148 | 3,814,555 | 203,755 | (2,205,378 | ) | 3,273,080 | |||||||||||
Gross profit (loss) | 203,858 | 199,445 | (49,346 | ) | (30,001 | ) | 323,956 | ||||||||||
Selling, general and administrative | 53,602 | 108,756 | 4,811 | (8,643 | ) | 158,526 | |||||||||||
Operating income (loss) | 150,256 | 90,689 | (54,157 | ) | (21,358 | ) | 165,430 | ||||||||||
Interest expense, net of capitalized interest | 42,194 | 22,790 | 3,490 | (2,380 | ) | 66,094 | |||||||||||
Other (income) expense, net | (2,353 | ) | 14 | (2,332 | ) | 2,379 | (2,292 | ) | |||||||||
Income (loss) before income taxes and equity in net loss of subsidiaries | 110,415 | 67,885 | (55,315 | ) | (21,357 | ) | 101,628 | ||||||||||
Income taxes (benefit) | 17,015 | 25,133 | 2,081 | (7,126 | ) | 37,103 | |||||||||||
93,400 | 42,752 | (57,396 | ) | (14,231 | ) | 64,525 | |||||||||||
Equity in net loss of subsidiaries | (16,227 | ) | — | — | 16,227 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 12,648 | — | 12,648 | ||||||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ | 77,173 | $ | 42,752 | $ | (44,748 | ) | $ | 1,996 | $ | 77,173 | ||||||
Condensed Consolidating Statements of Cash Flows (in thousands) | |||||||||||||||||
For the six months ended, | Combined | Consolidating | Total | ||||||||||||||
June 30, 2014 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net cash provided by (used in) operating activities | $ | 94,219 | $ | (19,938 | ) | $ | (23,559 | ) | $ | (1,955 | ) | $ | 48,767 | ||||
Net cash used in investing activities | (34,747 | ) | (10,007 | ) | (13,076 | ) | 30,653 | (27,177 | ) | ||||||||
Net cash provided by (used in) financing activities | (83,113 | ) | 19,258 | 33,297 | (28,698 | ) | (59,256 | ) | |||||||||
Decrease in cash and equivalents | (23,641 | ) | (10,687 | ) | (3,338 | ) | — | (37,666 | ) | ||||||||
Cash and equivalents at beginning of period | 320,866 | 61,148 | 13,142 | — | 395,156 | ||||||||||||
Cash and equivalents at end of period | $ | 297,225 | $ | 50,461 | $ | 9,804 | $ | — | $ | 357,490 | |||||||
For the six months ended, | Combined | Consolidating | Total | ||||||||||||||
June 30, 2013 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net cash provided by (used in) operating activities | $ | (6,011 | ) | $ | 98,049 | $ | (39,730 | ) | $ | 10,117 | $ | 62,425 | |||||
Net cash used in investing activities | (62,083 | ) | (24,118 | ) | (9,484 | ) | 35,900 | (59,785 | ) | ||||||||
Net cash provided by (used in) financing activities | (40,896 | ) | (100,880 | ) | 52,989 | (46,017 | ) | (134,804 | ) | ||||||||
Increase (decrease) in cash and equivalents | (108,990 | ) | (26,949 | ) | 3,775 | — | (132,164 | ) | |||||||||
Cash and equivalents at beginning of period | 322,707 | 41,675 | 11,535 | — | 375,917 | ||||||||||||
Cash and equivalents at end of period | $ | 213,717 | $ | 14,726 | $ | 15,310 | $ | — | $ | 243,753 | |||||||
Subsequent_Event_Acquisition
Subsequent Event - Acquisition | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Event - Acquisition | ' |
Note 11. Subsequent Event — Acquisition of Severstal Columbus, LLC | |
On July 18, 2014, the company entered into a definitive membership interest purchase agreement to acquire Severstal Columbus, LLC (Columbus) for a purchase price of $1.625 billion, on a cash-free, debt-free basis, subject to certain working capital adjustments. Located in northeast Mississippi, Columbus is one of the newest and most technologically advanced mini-mills in North America. The transaction is planned to close prior to December 31, 2014, subject to customary closing conditions and regulatory approvals. The purchase agreement contains customary representations, warranties, covenants, indemnification provisions and termination provisions. The company intends to fund the acquisition with available cash and debt, with the debt comprised of a combination of borrowings under its currently existing and undrawn $1.1 billion revolving credit facility and in new indebtedness. To the extent it is needed, if at all, a consortium of banks has issued a commitment letter, subject to customary conditions, to provide the company with financing consisting of bridge loan facilities in the aggregate amount of $1.0 billion. | |
Description_of_the_Business_an1
Description of the Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Description of the Business and Significant Accounting Policies | ' | |||||||
Principles of Consolidation | ' | |||||||
Principles of Consolidation. The consolidated financial statements include the accounts of SDI, together with its wholly and majority-owned or controlled subsidiaries, after elimination of significant intercompany accounts and transactions. Noncontrolling interests represent the noncontrolling owner’s proportionate share in the equity, income, or losses of the company’s majority-owned or controlled consolidated subsidiaries. | ||||||||
Use of Estimates | ' | |||||||
Use of Estimates. These financial statements are prepared in conformity with accounting principles generally accepted in the United States and, accordingly, include amounts that require management to make estimates and assumptions that affect the amounts reported in the financial statements and in the notes thereto. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment, intangible assets and goodwill; valuation allowances for trade receivables, inventories and deferred income tax assets; unrecognized tax benefits; potential environmental liabilities; and litigation claims and settlements. Actual results may differ from these estimates and assumptions. | ||||||||
In the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the interim period results. These financial statements and notes should be read in conjunction with the audited financial statements and notes thereto included in the company’s Annual Report on Form 10-K for the year ended December 31, 2013. | ||||||||
Goodwill | ' | |||||||
Goodwill. The company’s goodwill is allocated to the following reporting units at June 30, 2014, and December 31, 2013, (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
OmniSource – Metals Recycling/Ferrous Resources Segment | $ | 555,002 | $ | 558,247 | ||||
The Techs – Steel Segment | 142,783 | 142,783 | ||||||
Roanoke Bar Division – Steel Segment | 29,041 | 29,041 | ||||||
New Millennium Building Systems – Fabrication Segment | 1,925 | 1,925 | ||||||
$ | 728,751 | $ | 731,996 | |||||
OmniSource goodwill decreased $3.2 million from December 31, 2013 to June 30, 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. | ||||||||
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 company is currently evaluating the impact of the provisions of ASC 606. | ||||||||
Description_of_the_Business_an2
Description of the Business and Summary of Significant Accounting Policies (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Description of the Business and Significant Accounting Policies | ' | |||||||
Schedule of allocation of goodwill to reporting units | ' | |||||||
The company’s goodwill is allocated to the following reporting units at June 30, 2014, and December 31, 2013, (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
OmniSource – Metals Recycling/Ferrous Resources Segment | $ | 555,002 | $ | 558,247 | ||||
The Techs – Steel Segment | 142,783 | 142,783 | ||||||
Roanoke Bar Division – Steel Segment | 29,041 | 29,041 | ||||||
New Millennium Building Systems – Fabrication Segment | 1,925 | 1,925 | ||||||
$ | 728,751 | $ | 731,996 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||
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 net income attributable to Steel Dynamics, Inc. (in thousands, except per share data): | ||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Net Income | Shares | Per Share | Net Income | Shares | Per Share | |||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | |||||||||||||
Basic earnings per share | $ | 72,303 | 226,220 | $ | 0.32 | $ | 28,958 | 220,471 | $ | 0.13 | ||||||||
Dilutive common share equivalents | — | 1,789 | — | 1,265 | ||||||||||||||
5.125% convertible senior notes, net of tax | 1,969 | 14,039 | — | — | ||||||||||||||
Diluted earnings per share | $ | 74,272 | 242,048 | $ | 0.31 | $ | 28,958 | 221,736 | $ | 0.13 | ||||||||
Six Months Ended June 30, | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Net Income | Shares | Per Share | Net Income | Shares | Per Share | |||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | |||||||||||||
Basic earnings per share | $ | 110,882 | 224,615 | $ | 0.49 | $ | 77,173 | 220,233 | $ | 0.35 | ||||||||
Dilutive common share equivalents | — | 1,699 | — | 1,363 | ||||||||||||||
5.125% convertible senior notes, net of tax | 4,327 | 15,407 | 4,716 | 16,650 | ||||||||||||||
Diluted earnings per share | $ | 115,209 | 241,721 | $ | 0.48 | $ | 81,889 | 238,246 | $ | 0.34 | ||||||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventories | ' | |||||||
Schedule of inventories | ' | |||||||
Inventory consisted of the following (in thousands): | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 614,098 | $ | 660,384 | ||||
Supplies | 288,631 | 293,533 | ||||||
Work in progress | 130,908 | 84,710 | ||||||
Finished goods | 287,234 | 276,120 | ||||||
Total inventories | $ | 1,320,871 | $ | 1,314,747 | ||||
Changes_in_Equity_Tables
Changes in Equity (Tables) | 6 Months Ended | ||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||
Changes in Equity | ' | ||||||||||||||||||||||
Schedule of stockholders' equity | ' | ||||||||||||||||||||||
The following table provides a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to stockholders of Steel Dynamics, Inc. and equity and redeemable amounts attributable to the noncontrolling interests (in thousands): | |||||||||||||||||||||||
Stockholders of Steel Dynamics, Inc. | |||||||||||||||||||||||
Common | Additional | Retained | Treasury | Noncontrolling | Total | Redeemable | |||||||||||||||||
Paid-In | Noncontrolling | ||||||||||||||||||||||
Stock | Capital | Earnings | Stock | Interests | Equity | Interests | |||||||||||||||||
Balances at January 1, 2014 | $ | 645 | $ | 1,085,694 | $ | 2,179,513 | $ | (718,529 | ) | $ | (51,468 | ) | $ | 2,495,855 | $ | 116,514 | |||||||
Proceeds from the exercise of stock options, including related tax effect | 2 | 11,501 | — | — | — | 11,503 | — | ||||||||||||||||
Dividends declared | — | — | (53,221 | ) | — | — | (53,221 | ) | — | ||||||||||||||
Conversion of 5.125% convertible senior notes | — | (45,650 | ) | — | 317,451 | — | 271,801 | — | |||||||||||||||
Equity-based compensation and issuance of restricted stock | — | 7,376 | (27 | ) | 2,260 | — | 9,609 | — | |||||||||||||||
Contributions from noncontrolling investors | — | — | — | — | 97 | 97 | 7,666 | ||||||||||||||||
Distributions to noncontrolling investors | — | — | — | — | (653 | ) | (653 | ) | — | ||||||||||||||
Net income (loss) | — | — | 110,882 | — | (10,843 | ) | 100,039 | — | |||||||||||||||
Balances at June 30, 2014 | $ | 647 | $ | 1,058,921 | $ | 2,237,147 | $ | (398,818 | ) | $ | (62,867 | ) | $ | 2,835,030 | $ | 124,180 | |||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
Commodity option and futures contract commitments for non monetary notional amount | ' | |||||||||||||||||||
The following summarizes the company’s futures contract commitments as of June 30, 2014 (MT represents metric tons and Lbs represents pounds): | ||||||||||||||||||||
Commodity Futures | Long/Short | Total | ||||||||||||||||||
Aluminum | Long | 3,550 | MT | |||||||||||||||||
Aluminum | Short | 3,575 | MT | |||||||||||||||||
Copper | Long | 7,129 | MT | |||||||||||||||||
Copper | Short | 21,636 | 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 as of June 30, 2014, and December 31, 2013, and gains and losses related to derivatives included in the company’s statement of income for the three and six-month periods ended June 30, 2014 and 2013 (in thousands): | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
Balance sheet location | June 30, 2014 | 2013 | June 30, 2014 | 2013 | ||||||||||||||||
Derivative instruments designated as fair value hedges - | ||||||||||||||||||||
Commodity futures | Other current assets | $ | 274 | $ | 658 | $ | (1,800 | ) | $ | 1,886 | ||||||||||
Derivative instruments not designated as hedges - | ||||||||||||||||||||
Commodity futures | Other current assets | $ | 708 | $ | 352 | $ | (1,781 | ) | 2,601 | |||||||||||
Total derivative instruments | $ | 982 | $ | 1,010 | $ | (3,581 | ) | $ | 4,487 | |||||||||||
Amount of gain (loss) | Amount of gain (loss) | |||||||||||||||||||
recognized in income on | recognized in income on | |||||||||||||||||||
derivatives for the three | related hedged items for the | |||||||||||||||||||
Location of gain (loss) | months ended | Hedged items | Location of gain (loss) | three months ended | ||||||||||||||||
recognized in income | June 30, | June 30, | in fair value hedge | recognized in income | June 30, | June 30, | ||||||||||||||
on derivatives | 2014 | 2013 | relationships | on related hedged item | 2014 | 2013 | ||||||||||||||
Derivatives in fair value hedging relationships - | ||||||||||||||||||||
Commodity futures | Costs of goods sold | $ | (2,632 | ) | $ | (654 | ) | Firm commitments | Costs of goods sold | $ | (653 | ) | $ | 1,297 | ||||||
Inventory | Costs of goods sold | 2,846 | (2,014 | ) | ||||||||||||||||
$ | 2,193 | $ | (717 | ) | ||||||||||||||||
Derivatives not designated as hedging instruments - | ||||||||||||||||||||
Commodity futures | Costs of goods sold | $ | (2,030 | ) | $ | 6,621 | ||||||||||||||
Amount of gain (loss) | Amount of gain (loss) | |||||||||||||||||||
recognized in income on | recognized in income on | |||||||||||||||||||
derivatives for the six months | related hedged items for the | |||||||||||||||||||
Location of gain (loss) | ended | Hedged items | Location of gain (loss) | six months ended | ||||||||||||||||
recognized in income | June 30, | June 30, | in fair value hedge | recognized in income | June 30, | June 30, | ||||||||||||||
on derivatives | 2014 | 2013 | relationships | on related hedged item | 2014 | 2013 | ||||||||||||||
Derivatives in fair value hedging relationships - | ||||||||||||||||||||
Commodity futures | Costs of goods sold | $ | (1,015 | ) | $ | 7,392 | Firm commitments | Costs of goods sold | $ | 331 | $ | 2,613 | ||||||||
Inventory | Costs of goods sold | 358 | (8,822 | ) | ||||||||||||||||
$ | 689 | $ | (6,209 | ) | ||||||||||||||||
Derivatives not designated as hedging instruments - | ||||||||||||||||||||
Commodity futures | Costs of goods sold | $ | 5,926 | $ | 6,629 | |||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 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 in the consolidated balance sheets and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of June 30, 2014, and December 31, 2013 (in thousands): | ||||||||||||||
Total | Quoted Prices in | Significant | Significant | |||||||||||
Active Markets | Other | Unobservable | ||||||||||||
for Identical | Observable | Inputs | ||||||||||||
Assets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
June 30, 2014 | ||||||||||||||
Commodity futures – financial assets | $ | 982 | $ | — | $ | 982 | $ | — | ||||||
Commodity futures – financial liabilities | (3,581 | ) | — | (3,581 | ) | — | ||||||||
December 31, 2013 | ||||||||||||||
Commodity futures – financial assets | $ | 1,010 | $ | — | $ | 1,010 | $ | — | ||||||
Commodity futures – financial liabilities | 4,487 | — | 4,487 | — | ||||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Segment Information | ' | |||||||||||||||||||
Schedule of operating segment results | ' | |||||||||||||||||||
The company’s segment results for the three and six-month periods ended June 30, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||||||
For the three months ended | Metals Recycling / | Steel Fabrication | ||||||||||||||||||
June 30, 2014 | Steel Operations | Ferrous Resources | Operations | Other | Eliminations | Consolidated | ||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 1,214,247 | $ | 587,385 | $ | 134,852 | $ | 24,181 | $ | — | $ | 1,960,665 | ||||||||
External Non-U.S. | 50,857 | 57,831 | — | 408 | — | 109,096 | ||||||||||||||
Other segments | 69,802 | 303,617 | — | 7,309 | (380,728 | ) | — | |||||||||||||
1,334,906 | 948,833 | 134,852 | 31,898 | (380,728 | ) | 2,069,761 | ||||||||||||||
Operating income (loss) | 155,949 | (6,053 | ) | 7,590 | (24,159 | )(1) | (1,422 | )(2) | 131,905 | |||||||||||
Income (loss) before income taxes | 142,594 | (12,634 | ) | 6,099 | (31,028 | ) | (1,422 | ) | 103,609 | |||||||||||
Depreciation and amortization | 28,869 | 25,870 | 2,401 | 1,352 | (51 | ) | 58,441 | |||||||||||||
Capital expenditures | 16,332 | 16,384 | 536 | 282 | — | 33,534 | ||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||
Assets | 2,732,388 | 2,551,899 | 297,149 | 624,518 | -3 | (220,752 | )(4) | 5,985,202 | ||||||||||||
Liabilities | 578,124 | 640,459 | 20,879 | 1,996,306 | -5 | (209,776 | )(6) | 3,025,992 | ||||||||||||
Footnotes related to the three months ended June 30, 2014 segment results (in millions): | ||||||||||||||||||||
-1 | Corporate SG&A | $ | (11.0 | ) | ||||||||||||||||
Company-wide equity-based compensation | (4.7 | ) | ||||||||||||||||||
Profit sharing | (8.9 | ) | ||||||||||||||||||
Other, net | 0.4 | |||||||||||||||||||
$ | (24.2 | ) | ||||||||||||||||||
-2 | Gross profit decrease from intra-company sales | $ | (1.4 | ) | ||||||||||||||||
-3 | Cash and equivalents | $ | 299.9 | |||||||||||||||||
Accounts receivable | 14.4 | |||||||||||||||||||
Inventories | 12.4 | |||||||||||||||||||
Deferred income taxes | 17.7 | |||||||||||||||||||
Property, plant and equipment, net | 70.9 | |||||||||||||||||||
Debt issuance costs | 22.9 | |||||||||||||||||||
Intra-company debt | 158.1 | |||||||||||||||||||
Other | 28.2 | |||||||||||||||||||
$ | 624.5 | |||||||||||||||||||
-4 | Elimination of intra-company receivables | $ | (52.0 | ) | ||||||||||||||||
Elimination of intra-company debt | (158.1 | ) | ||||||||||||||||||
Other | (10.7 | ) | ||||||||||||||||||
$ | (220.8 | ) | ||||||||||||||||||
-5 | Accounts payable | $ | 46.0 | |||||||||||||||||
Income taxes payable | 19.4 | |||||||||||||||||||
Accrued interest | 30.5 | |||||||||||||||||||
Accrued profit sharing | 13.6 | |||||||||||||||||||
Debt | 1,737.0 | |||||||||||||||||||
Deferred income taxes | 120.5 | |||||||||||||||||||
Other | 29.3 | |||||||||||||||||||
$ | 1,996.3 | |||||||||||||||||||
-6 | Elimination of intra-company payables | $ | (52.4 | ) | ||||||||||||||||
Elimination of intra-company debt | (158.1 | ) | ||||||||||||||||||
Other | 0.7 | |||||||||||||||||||
$ | (209.8 | ) | ||||||||||||||||||
For the three months ended | Metals Recycling / | Steel Fabrication | ||||||||||||||||||
June 30, 2013 | Steel Operations | Ferrous Resources | Operations | Other | Eliminations | Consolidated | ||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 1,038,868 | $ | 538,599 | $ | 103,595 | $ | 20,828 | $ | — | $ | 1,701,890 | ||||||||
External Non-U.S. | 52,148 | 46,893 | — | 409 | — | 99,450 | ||||||||||||||
Other segments | 52,897 | 275,666 | 564 | 6,885 | (336,012 | ) | — | |||||||||||||
1,143,913 | 861,158 | 104,159 | 28,122 | (336,012 | ) | 1,801,340 | ||||||||||||||
Operating income (loss) | 85,545 | (7,251 | ) | 2,330 | (14,434 | )(1) | 3,008 | -2 | 69,198 | |||||||||||
Income (loss) before income taxes | 71,732 | (14,439 | ) | 800 | (22,122 | ) | 3,008 | 38,979 | ||||||||||||
Depreciation and amortization | 26,496 | 26,704 | 2,179 | 1,498 | (51 | ) | 56,826 | |||||||||||||
Capital expenditures | 34,533 | 13,545 | 822 | 336 | — | 49,236 | ||||||||||||||
As of June 30, 2013 | ||||||||||||||||||||
Assets | 2,582,168 | 2,490,215 | 261,556 | 604,195 | -3 | (202,224 | )(4) | 5,735,910 | ||||||||||||
Liabilities | 512,634 | 522,306 | 16,136 | 2,362,721 | -5 | (193,358 | )(6) | 3,220,439 | ||||||||||||
Footnotes related to the three months ended June 30, 2013 segment results (in millions): | ||||||||||||||||||||
-1 | Corporate SG&A | $ | (9.1 | ) | ||||||||||||||||
Company-wide equity-based compensation | (2.0 | ) | ||||||||||||||||||
Profit sharing | (3.2 | ) | ||||||||||||||||||
Other, net | (0.1 | ) | ||||||||||||||||||
Total | $ | (14.4 | ) | |||||||||||||||||
-2 | Gross profit increase from intra-company sales | $ | 3.0 | |||||||||||||||||
-3 | Cash and equivalents | $ | 218.2 | |||||||||||||||||
Accounts receivable | 13.6 | |||||||||||||||||||
Inventories | 15.5 | |||||||||||||||||||
Deferred income taxes | 23.6 | |||||||||||||||||||
Property, plant and equipment, net | 73.7 | |||||||||||||||||||
Debt issuance costs, net | 29.3 | |||||||||||||||||||
Intra-company debt | 154.2 | |||||||||||||||||||
Other | 76.1 | |||||||||||||||||||
Total | $ | 604.2 | ||||||||||||||||||
-4 | Elimination of intra-company receivables | $ | (40.2 | ) | ||||||||||||||||
Elimination of intra-company debt | (154.2 | ) | ||||||||||||||||||
Other | (7.8 | ) | ||||||||||||||||||
Total | $ | (202.2 | ) | |||||||||||||||||
-5 | Accounts payable | $ | 43.5 | |||||||||||||||||
Income taxes payable | 2.9 | |||||||||||||||||||
Accrued interest | 32.3 | |||||||||||||||||||
Accrued profit sharing | 9.2 | |||||||||||||||||||
Debt | 2,045.3 | |||||||||||||||||||
Deferred income taxes | 205.1 | |||||||||||||||||||
Other | 24.4 | |||||||||||||||||||
Total | $ | 2,362.7 | ||||||||||||||||||
-6 | Elimination of intra-company payables | $ | (40.5 | ) | ||||||||||||||||
Elimination of intra-company debt | (154.2 | ) | ||||||||||||||||||
Other | 1.3 | |||||||||||||||||||
Total | $ | (193.4 | ) | |||||||||||||||||
For the six months ended | Metals Recycling / | Steel Fabrication | ||||||||||||||||||
June 30, 2014 | Steel Operations | Ferrous Resources | Operations | Other | Eliminations | Consolidated | ||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 2,275,326 | $ | 1,105,342 | $ | 250,713 | $ | 44,802 | $ | — | $ | 3,676,183 | ||||||||
External Non-U.S. | 107,376 | 115,648 | — | 636 | — | 223,660 | ||||||||||||||
Other segments | 113,534 | 647,545 | — | 13,982 | (775,061 | ) | — | |||||||||||||
2,496,236 | 1,868,535 | 250,713 | 59,420 | (775,061 | ) | 3,899,843 | ||||||||||||||
Operating income (loss) | 261,592 | (21,572 | ) | 10,716 | (40,704 | )(1) | 2,805 | -2 | 212,837 | |||||||||||
Income (loss) before income taxes | 234,592 | (35,330 | ) | 7,751 | (55,215 | ) | 2,805 | 154,603 | ||||||||||||
Depreciation and amortization | 56,246 | 52,491 | 4,623 | 2,751 | (102 | ) | 116,009 | |||||||||||||
Capital expenditures | 34,938 | 22,163 | 847 | 427 | — | 58,375 | ||||||||||||||
Footnotes related to the six months ended June 30, 2014 segment results (in millions): | ||||||||||||||||||||
-1 | Corporate SG&A | $ | (19.3 | ) | ||||||||||||||||
Company-wide equity-based compensation | (9.3 | ) | ||||||||||||||||||
Profit sharing | (13.6 | ) | ||||||||||||||||||
Other, net | 1.5 | |||||||||||||||||||
Total | $ | (40.7 | ) | |||||||||||||||||
-2 | Gross profit increase from intra-company sales | $ | 2.8 | |||||||||||||||||
For the six months ended | Metals Recycling / | Steel Fabrication | ||||||||||||||||||
June 30, 2013 | Steel Operations | Ferrous Resources | Operations | Other | Eliminations | Consolidated | ||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 2,050,063 | $ | 1,096,210 | $ | 197,392 | $ | 40,199 | $ | — | $ | 3,383,864 | ||||||||
External Non-U.S. | 102,265 | 110,410 | — | 497 | — | 213,172 | ||||||||||||||
Other segments | 113,945 | 552,030 | 1,142 | 12,280 | (679,397 | ) | — | |||||||||||||
2,266,273 | 1,758,650 | 198,534 | 52,976 | (679,397 | ) | 3,597,036 | ||||||||||||||
Operating income (loss) | 204,846 | (17,075 | ) | 3,860 | (30,873 | )(1) | 4,672 | -2 | 165,430 | |||||||||||
Income (loss) before income taxes | 176,739 | (32,293 | ) | 724 | (48,214 | ) | 4,672 | 101,628 | ||||||||||||
Depreciation and amortization | 52,883 | 53,840 | 4,236 | 3,030 | (102 | ) | 113,887 | |||||||||||||
Capital expenditures | 59,259 | 32,614 | 1,703 | 1,006 | — | 94,582 | ||||||||||||||
Footnotes related to the six months ended June 30, 2013 segment results (in millions): | ||||||||||||||||||||
-1 | Corporate SG&A | $ | (17.1 | ) | ||||||||||||||||
Company-wide equity-based compensation | (5.2 | ) | ||||||||||||||||||
Profit sharing | (9.1 | ) | ||||||||||||||||||
Other, net | 0.5 | |||||||||||||||||||
Total | $ | (30.9 | ) | |||||||||||||||||
-2 | Gross profit increase from intra-company sales | $ | 4.7 | |||||||||||||||||
Condensed_Consolidating_Inform1
Condensed Consolidating Information (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Condensed Consolidating Information | ' | ||||||||||||||||
Schedule of Condensed Consolidating Balance Sheets | ' | ||||||||||||||||
Condensed Consolidating Balance Sheets (in thousands) | |||||||||||||||||
Combined | Consolidating | Total | |||||||||||||||
As of June 30, 2014 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Cash and equivalents | $ | 297,225 | $ | 50,461 | $ | 9,804 | $ | — | $ | 357,490 | |||||||
Accounts receivable, net | 367,627 | 1,077,153 | 49,880 | (583,864 | ) | 910,796 | |||||||||||
Inventories | 684,841 | 543,977 | 97,561 | (5,508 | ) | 1,320,871 | |||||||||||
Other current assets | 47,442 | 7,719 | 4,310 | (18,442 | ) | 41,029 | |||||||||||
Total current assets | 1,397,135 | 1,679,310 | 161,555 | (607,814 | ) | 2,630,186 | |||||||||||
Property, plant and equipment, net | 1,033,622 | 584,587 | 561,115 | (2,317 | ) | 2,177,007 | |||||||||||
Intangible assets, net | — | 372,819 | — | — | 372,819 | ||||||||||||
Goodwill | — | 728,751 | — | — | 728,751 | ||||||||||||
Other assets, including investments in subs | 2,615,185 | 21,781 | 7,109 | (2,567,636 | ) | 76,439 | |||||||||||
Total assets | $ | 5,045,942 | $ | 3,387,248 | $ | 729,779 | $ | (3,177,767 | ) | $ | 5,985,202 | ||||||
Accounts payable | $ | 168,091 | $ | 284,773 | $ | 94,049 | $ | (106,222 | ) | $ | 440,691 | ||||||
Accrued expenses | 142,351 | 117,303 | 10,089 | (58,972 | ) | 210,771 | |||||||||||
Current maturities of long-term debt | 34,925 | 300 | 66,474 | (39,938 | ) | 61,761 | |||||||||||
Total current liabilities | 345,367 | 402,376 | 170,612 | (205,132 | ) | 713,223 | |||||||||||
Long-term debt | 1,704,528 | — | 184,554 | (146,954 | ) | 1,742,128 | |||||||||||
Other liabilities | 98,150 | 2,022,395 | 35,504 | (1,585,408 | ) | 570,641 | |||||||||||
Redeemable noncontrolling interests | — | — | 124,180 | — | 124,180 | ||||||||||||
Common stock | 647 | 33,896 | 18,121 | (52,017 | ) | 647 | |||||||||||
Treasury stock | (398,818 | ) | — | — | — | (398,818 | ) | ||||||||||
Additional paid-in-capital | 1,058,921 | 117,737 | 585,348 | (703,085 | ) | 1,058,921 | |||||||||||
Retained earnings (deficit) | 2,237,147 | 810,844 | (325,673 | ) | (485,171 | ) | 2,237,147 | ||||||||||
Total Steel Dynamics, Inc. equity | 2,897,897 | 962,477 | 277,796 | (1,240,273 | ) | 2,897,897 | |||||||||||
Noncontrolling interests | — | — | (62,867 | ) | — | (62,867 | ) | ||||||||||
Total equity | 2,897,897 | 962,477 | 214,929 | (1,240,273 | ) | 2,835,030 | |||||||||||
Total liabilities and equity | $ | 5,045,942 | $ | 3,387,248 | $ | 729,779 | $ | (3,177,767 | ) | $ | 5,985,202 | ||||||
Combined | Consolidating | Total | |||||||||||||||
As of December 31, 2013 | Parent | Guarantors | 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 three months ended, | Combined | Consolidating | Total | ||||||||||||||
June 30, 2014 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net sales | $ | 1,007,569 | $ | 2,313,459 | $ | 121,239 | $ | (1,372,506 | ) | $ | 2,069,761 | ||||||
Costs of goods sold | 860,024 | 2,183,181 | 141,362 | (1,337,577 | ) | 1,846,990 | |||||||||||
Gross profit (loss) | 147,545 | 130,278 | (20,123 | ) | (34,929 | ) | 222,771 | ||||||||||
Selling, general and administrative | 35,419 | 56,411 | 3,406 | (4,370 | ) | 90,866 | |||||||||||
Operating income (loss) | 112,126 | 73,867 | (23,529 | ) | (30,559 | ) | 131,905 | ||||||||||
Interest expense, net of capitalized interest | 19,031 | 10,294 | 1,986 | (1,261 | ) | 30,050 | |||||||||||
Other (income) expense, net | (1,556 | ) | (46 | ) | (1,412 | ) | 1,260 | (1,754 | ) | ||||||||
Income (loss) before income taxes and equity in net income of subsidiaries | 94,651 | 63,619 | (24,103 | ) | (30,558 | ) | 103,609 | ||||||||||
Income taxes (benefit) | 23,950 | 23,076 | 814 | (10,572 | ) | 37,268 | |||||||||||
70,701 | 40,543 | (24,917 | ) | (19,986 | ) | 66,341 | |||||||||||
Equity in net loss of subsidiaries | 1,602 | — | — | (1,602 | ) | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 5,962 | — | 5,962 | ||||||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ | 72,303 | $ | 40,543 | $ | (18,955 | ) | $ | (21,588 | ) | $ | 72,303 | |||||
For the three months ended, | Combined | Consolidating | Total | ||||||||||||||
June 30, 2013 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net sales | $ | 836,805 | $ | 1,998,513 | $ | 88,039 | $ | (1,122,017 | ) | $ | 1,801,340 | ||||||
Costs of goods sold | 753,761 | 1,900,497 | 107,814 | (1,108,424 | ) | 1,653,648 | |||||||||||
Gross profit (loss) | 83,044 | 98,016 | (19,775 | ) | (13,593 | ) | 147,692 | ||||||||||
Selling, general and administrative | 24,916 | 54,764 | 2,673 | (3,859 | ) | 78,494 | |||||||||||
Operating income (loss) | 58,128 | 43,252 | (22,448 | ) | (9,734 | ) | 69,198 | ||||||||||
Interest expense, net of capitalized interest | 20,148 | 10,751 | 1,789 | (1,223 | ) | 31,465 | |||||||||||
Other (income) expense, net | (1,533 | ) | 214 | (1,149 | ) | 1,222 | (1,246 | ) | |||||||||
Income (loss) before income taxes and equity in net loss of subsidiaries | 39,513 | 32,287 | (23,088 | ) | (9,733 | ) | 38,979 | ||||||||||
Income taxes (benefit) | 5,621 | 12,214 | 1,382 | (3,511 | ) | 15,706 | |||||||||||
33,892 | 20,073 | (24,470 | ) | (6,222 | ) | 23,273 | |||||||||||
Equity in net loss of subsidiaries | (4,934 | ) | — | — | 4,934 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 5,685 | — | 5,685 | ||||||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ | 28,958 | $ | 20,073 | $ | (18,785 | ) | $ | (1,288 | ) | $ | 28,958 | |||||
For the six months ended, | Combined | Consolidating | Total | ||||||||||||||
June 30, 2014 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net sales | $ | 1,871,132 | $ | 4,425,848 | $ | 227,088 | $ | (2,624,225 | ) | $ | 3,899,843 | ||||||
Costs of goods sold | 1,621,419 | 4,198,757 | 264,935 | (2,571,343 | ) | 3,513,768 | |||||||||||
Gross profit (loss) | 249,713 | 227,091 | (37,847 | ) | (52,882 | ) | 386,075 | ||||||||||
Selling, general and administrative | 64,253 | 110,700 | 6,814 | (8,529 | ) | 173,238 | |||||||||||
Operating income (loss) | 185,460 | 116,391 | (44,661 | ) | (44,353 | ) | 212,837 | ||||||||||
Interest expense, net of capitalized interest | 38,392 | 20,855 | 3,866 | (2,494 | ) | 60,619 | |||||||||||
Other (income) expense, net | (2,532 | ) | 349 | (2,696 | ) | 2,494 | (2,385 | ) | |||||||||
Income (loss) before income taxes and equity in net loss of subsidiaries | 149,600 | 95,187 | (45,831 | ) | (44,353 | ) | 154,603 | ||||||||||
Income taxes (benefit) | 33,875 | 34,018 | 1,510 | (14,839 | ) | 54,564 | |||||||||||
115,725 | 61,169 | (47,341 | ) | (29,514 | ) | 100,039 | |||||||||||
Equity in net loss of subsidiaries | (4,843 | ) | — | — | 4,843 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 10,843 | — | 10,843 | ||||||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ | 110,882 | $ | 61,169 | $ | (36,498 | ) | $ | (24,671 | ) | $ | 110,882 | |||||
For the six months ended, | Combined | Consolidating | Total | ||||||||||||||
June 30, 2013 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net sales | $ | 1,664,006 | $ | 4,014,000 | $ | 154,409 | $ | (2,235,379 | ) | $ | 3,597,036 | ||||||
Costs of goods sold | 1,460,148 | 3,814,555 | 203,755 | (2,205,378 | ) | 3,273,080 | |||||||||||
Gross profit (loss) | 203,858 | 199,445 | (49,346 | ) | (30,001 | ) | 323,956 | ||||||||||
Selling, general and administrative | 53,602 | 108,756 | 4,811 | (8,643 | ) | 158,526 | |||||||||||
Operating income (loss) | 150,256 | 90,689 | (54,157 | ) | (21,358 | ) | 165,430 | ||||||||||
Interest expense, net of capitalized interest | 42,194 | 22,790 | 3,490 | (2,380 | ) | 66,094 | |||||||||||
Other (income) expense, net | (2,353 | ) | 14 | (2,332 | ) | 2,379 | (2,292 | ) | |||||||||
Income (loss) before income taxes and equity in net loss of subsidiaries | 110,415 | 67,885 | (55,315 | ) | (21,357 | ) | 101,628 | ||||||||||
Income taxes (benefit) | 17,015 | 25,133 | 2,081 | (7,126 | ) | 37,103 | |||||||||||
93,400 | 42,752 | (57,396 | ) | (14,231 | ) | 64,525 | |||||||||||
Equity in net loss of subsidiaries | (16,227 | ) | — | — | 16,227 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 12,648 | — | 12,648 | ||||||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ | 77,173 | $ | 42,752 | $ | (44,748 | ) | $ | 1,996 | $ | 77,173 | ||||||
Schedule of Condensed Consolidating Statements of Cash Flows | ' | ||||||||||||||||
Condensed Consolidating Statements of Cash Flows (in thousands) | |||||||||||||||||
For the six months ended, | Combined | Consolidating | Total | ||||||||||||||
June 30, 2014 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net cash provided by (used in) operating activities | $ | 94,219 | $ | (19,938 | ) | $ | (23,559 | ) | $ | (1,955 | ) | $ | 48,767 | ||||
Net cash used in investing activities | (34,747 | ) | (10,007 | ) | (13,076 | ) | 30,653 | (27,177 | ) | ||||||||
Net cash provided by (used in) financing activities | (83,113 | ) | 19,258 | 33,297 | (28,698 | ) | (59,256 | ) | |||||||||
Decrease in cash and equivalents | (23,641 | ) | (10,687 | ) | (3,338 | ) | — | (37,666 | ) | ||||||||
Cash and equivalents at beginning of period | 320,866 | 61,148 | 13,142 | — | 395,156 | ||||||||||||
Cash and equivalents at end of period | $ | 297,225 | $ | 50,461 | $ | 9,804 | $ | — | $ | 357,490 | |||||||
For the six months ended, | Combined | Consolidating | Total | ||||||||||||||
June 30, 2013 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net cash provided by (used in) operating activities | $ | (6,011 | ) | $ | 98,049 | $ | (39,730 | ) | $ | 10,117 | $ | 62,425 | |||||
Net cash used in investing activities | (62,083 | ) | (24,118 | ) | (9,484 | ) | 35,900 | (59,785 | ) | ||||||||
Net cash provided by (used in) financing activities | (40,896 | ) | (100,880 | ) | 52,989 | (46,017 | ) | (134,804 | ) | ||||||||
Increase (decrease) in cash and equivalents | (108,990 | ) | (26,949 | ) | 3,775 | — | (132,164 | ) | |||||||||
Cash and equivalents at beginning of period | 322,707 | 41,675 | 11,535 | — | 375,917 | ||||||||||||
Cash and equivalents at end of period | $ | 213,717 | $ | 14,726 | $ | 15,310 | $ | — | $ | 243,753 | |||||||
Description_of_the_Business_an3
Description of the Business and Significant Accounting Policies (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Description of the Business and Significant Accounting Policies | ' | ' | ' | ' |
Number of reporting segments | ' | ' | 3 | ' |
Steel Operations [Member] | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Percentage of external net sales | 61.00% | 61.00% | 61.00% | 60.00% |
Metals Recycling And Ferrous Resources Operations [Member] | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Percentage of external net sales | 31.00% | 33.00% | 31.00% | 34.00% |
Number of iron making initiatives | ' | ' | 2 | ' |
Steel Fabrication Operations [Member] | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Percentage of external net sales | 7.00% | 6.00% | 6.00% | 6.00% |
Number of New Millennium Building Systems joist and deck plants | ' | ' | 6 | ' |
Description_of_the_Business_an4
Description of the Business and Significant Accounting Policies (Details 2) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Goodwill | ' | ' |
Goodwill | $728,751,000 | $731,996,000 |
Omni Source [Member] | ' | ' |
Goodwill | ' | ' |
Goodwill | 555,002,000 | 558,247,000 |
Goodwill decrease due to tax benefit related to the amortization of the component | 3,200,000 | ' |
Techs [Member] | ' | ' |
Goodwill | ' | ' |
Goodwill | 142,783,000 | 142,783,000 |
Roanoke Bar Division [Member] | ' | ' |
Goodwill | ' | ' |
Goodwill | 29,041,000 | 29,041,000 |
New Millennium Building Systems [Member] | ' | ' |
Goodwill | ' | ' |
Goodwill | $1,925,000 | $1,925,000 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 15, 2014 | Jun. 12, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Employee And Directors Stock Options [Member] | Employee And Directors Stock Options [Member] | |||||
Antidilutive securities excluded from computation of earnings per share amount | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate on convertible senior notes (as a percent) | ' | ' | ' | ' | 5.13% | 5.13% | 5.13% | ' | ' |
Antidilutive securities excluded from computation of earnings per share amount (in shares) | ' | ' | ' | ' | 16,700,000 | ' | ' | 0 | 2,500,000 |
After-tax-equivalent of interest | ' | ' | ' | ' | $2,400,000 | ' | ' | ' | ' |
Net Income (Numerator) | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings - net income (loss) (in dollars) | 72,303,000 | 28,958,000 | 110,882,000 | 77,173,000 | ' | ' | ' | ' | ' |
5.125% convertible senior notes, net of tax (in dollars) | 1,969,000 | ' | 4,327,000 | 4,716,000 | ' | ' | ' | ' | ' |
Diluted earnings - net income (loss) (in dollars) | $74,272,000 | $28,958,000 | $115,209,000 | $81,889,000 | ' | ' | ' | ' | ' |
Shares (Denominator) | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average common shares outstanding (in shares) | 226,220,000 | 220,471,000 | 224,615,000 | 220,233,000 | ' | ' | ' | ' | ' |
Dilutive common share equivalents (in shares) | 1,789,000 | 1,265,000 | 1,699,000 | 1,363,000 | ' | ' | ' | ' | ' |
5.125% convertible senior notes, net of tax (in shares) | 14,039,000 | ' | 15,407,000 | 16,650,000 | ' | ' | ' | ' | ' |
Weighted average common shares outstanding - diluted (in shares) | 242,048,000 | 221,736,000 | 241,721,000 | 238,246,000 | ' | ' | ' | ' | ' |
Per Share Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic earnings per share (in dollars per share) | $0.32 | $0.13 | $0.49 | $0.35 | ' | ' | ' | ' | ' |
Diluted earnings per share (in dollars per share) | $0.31 | $0.13 | $0.48 | $0.34 | ' | ' | ' | ' | ' |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Raw materials | $614,098 | $660,384 |
Supplies | 288,631 | 293,533 |
Work in progress | 130,908 | 84,710 |
Finished goods | 287,234 | 276,120 |
Total inventories | $1,320,871 | $1,314,747 |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 16, 2014 | Jun. 12, 2014 | Jun. 15, 2014 | Jun. 12, 2014 | Jun. 30, 2013 | |
Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | Convertible Debt [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of debt converted | ' | ' | ' | ' | ' | $271,800,000 | ' | ' | ' |
Stated interest rate on convertible senior notes (as a percent) | ' | ' | ' | ' | ' | ' | 5.13% | 5.13% | 5.13% |
Convertible debt rate, basis for conversion | ' | ' | ' | ' | ' | 0.0584731 | ' | ' | ' |
Conversion price per share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $17.10 | ' |
Shares issued upon conversion | ' | ' | ' | ' | ' | 15,893,457 | ' | ' | ' |
Remaining outstanding Notes paid in cash | $76,412,000 | $202,312,000 | $132,658,000 | $508,003,000 | $15,700,000 | ' | ' | ' | ' |
Changes_in_Equity_Details
Changes in Equity (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Increase (Decrease) in Equity | ' | ' | ' | ' |
Balances | ' | ' | $2,495,855 | ' |
Proceeds from the exercise of stock options, including related tax effect | ' | ' | 11,503 | ' |
Dividends declared | ' | ' | -53,221 | ' |
Conversion of 5.125% convertible senior notes | ' | ' | 271,801 | ' |
Equity based compensation and issuance of restricted stock | ' | ' | 9,609 | ' |
Contributions from noncontrolling investors | ' | ' | 97 | ' |
Distributions to noncontrolling investors | ' | ' | -653 | ' |
Net income (loss) | 66,341 | 23,273 | 100,039 | 64,525 |
Balances | 2,835,030 | ' | 2,835,030 | ' |
Common Stock [Member] | ' | ' | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' |
Balances | ' | ' | 645 | ' |
Proceeds from the exercise of stock options, including related tax effect | ' | ' | 2 | ' |
Balances | 647 | ' | 647 | ' |
Additional Paid In Capital [Member] | ' | ' | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' |
Balances | ' | ' | 1,085,694 | ' |
Proceeds from the exercise of stock options, including related tax effect | ' | ' | 11,501 | ' |
Conversion of 5.125% convertible senior notes | ' | ' | -45,650 | ' |
Equity based compensation and issuance of restricted stock | ' | ' | 7,376 | ' |
Balances | 1,058,921 | ' | 1,058,921 | ' |
Retained Earnings [Member] | ' | ' | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' |
Balances | ' | ' | 2,179,513 | ' |
Dividends declared | ' | ' | -53,221 | ' |
Equity based compensation and issuance of restricted stock | ' | ' | -27 | ' |
Net income (loss) | ' | ' | 110,882 | ' |
Balances | 2,237,147 | ' | 2,237,147 | ' |
Treasury Stock [Member] | ' | ' | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' |
Balances | ' | ' | -718,529 | ' |
Conversion of 5.125% convertible senior notes | ' | ' | 317,451 | ' |
Equity based compensation and issuance of restricted stock | ' | ' | 2,260 | ' |
Balances | -398,818 | ' | -398,818 | ' |
Noncontrolling Interest [Member] | ' | ' | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' |
Balances | ' | ' | -51,468 | ' |
Contributions from noncontrolling investors | ' | ' | 97 | ' |
Distributions to noncontrolling investors | ' | ' | -653 | ' |
Net income (loss) | ' | ' | -10,843 | ' |
Balances | -62,867 | ' | -62,867 | ' |
Redeemable Noncontrolling Interest [Member] | ' | ' | ' | ' |
Increase (Decrease) in Equity | ' | ' | ' | ' |
Balances | ' | ' | 116,514 | ' |
Contributions from noncontrolling investors | ' | ' | 7,666 | ' |
Balances | $124,180 | ' | $124,180 | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Fair values of derivative instruments, balance sheet | ' | ' | ' | ' | ' |
Commodity futures, asset derivatives (in dollars) | $982,000 | ' | $982,000 | ' | $1,010,000 |
Commodity futures, liability derivatives (in dollars) | -3,581,000 | ' | -3,581,000 | ' | 4,487,000 |
Gains or losses on derivative instruments, statement of income | ' | ' | ' | ' | ' |
Ineffectiveness - amount of gain (loss) recognized in income on related hedged items | 160,000 | -108,000 | 456,000 | 113,000 | ' |
Gain (loss) excluded from hedge effectiveness testing | -599,000 | -1,200,000 | -782,000 | 1,100,000 | ' |
Other Current Assets [Member] | ' | ' | ' | ' | ' |
Fair values of derivative instruments, balance sheet | ' | ' | ' | ' | ' |
Fair value of derivatives including required margin deposits | 5,100,000 | ' | 5,100,000 | ' | 3,600,000 |
Designated As Hedging Instrument [Member] | ' | ' | ' | ' | ' |
Gains or losses on derivative instruments, statement of income | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in income on related hedged items | 2,193,000 | -717,000 | 689,000 | -6,209,000 | ' |
Future [Member] | Aluminum Commodity [Member] | Long [Member] | ' | ' | ' | ' | ' |
Commodity contract commitments | ' | ' | ' | ' | ' |
Commodity contract (in MT/Lbs) | ' | ' | 3,550 | ' | ' |
Future [Member] | Aluminum Commodity [Member] | Short [Member] | ' | ' | ' | ' | ' |
Commodity contract commitments | ' | ' | ' | ' | ' |
Commodity contract (in MT/Lbs) | ' | ' | 3,575 | ' | ' |
Future [Member] | Copper Commodity [Member] | Long [Member] | ' | ' | ' | ' | ' |
Commodity contract commitments | ' | ' | ' | ' | ' |
Commodity contract (in MT/Lbs) | ' | ' | 7,129 | ' | ' |
Future [Member] | Copper Commodity [Member] | Short [Member] | ' | ' | ' | ' | ' |
Commodity contract commitments | ' | ' | ' | ' | ' |
Commodity contract (in MT/Lbs) | ' | ' | 21,636 | ' | ' |
Future [Member] | Silver Commodity [Member] | Short [Member] | ' | ' | ' | ' | ' |
Commodity contract commitments | ' | ' | ' | ' | ' |
Commodity contract (in MT/Lbs) | ' | ' | 343 | ' | ' |
Commodity Contract [Member] | Future [Member] | Designated As Hedging Instrument [Member] | Cost Of Sales [Member] | ' | ' | ' | ' | ' |
Gains or losses on derivative instruments, statement of income | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in income on derivatives | -2,632,000 | -654,000 | -1,015,000 | 7,392,000 | ' |
Commodity Contract [Member] | Future [Member] | Designated As Hedging Instrument [Member] | Other Current Assets [Member] | ' | ' | ' | ' | ' |
Fair values of derivative instruments, balance sheet | ' | ' | ' | ' | ' |
Commodity futures, asset derivatives (in dollars) | 274,000 | ' | 274,000 | ' | 658,000 |
Commodity futures, liability derivatives (in dollars) | -1,800,000 | ' | -1,800,000 | ' | 1,886,000 |
Commodity Contract [Member] | Future [Member] | Nondesignated [Member] | Cost Of Sales [Member] | ' | ' | ' | ' | ' |
Gains or losses on derivative instruments, statement of income | ' | ' | ' | ' | ' |
Amount of gain recognized in income on derivatives | -2,030,000 | 6,621,000 | 5,926,000 | 6,629,000 | ' |
Commodity Contract [Member] | Future [Member] | Nondesignated [Member] | Other Current Assets [Member] | ' | ' | ' | ' | ' |
Fair values of derivative instruments, balance sheet | ' | ' | ' | ' | ' |
Commodity futures, asset derivatives (in dollars) | 708,000 | ' | 708,000 | ' | 352,000 |
Commodity futures, liability derivatives (in dollars) | -1,781,000 | ' | -1,781,000 | ' | 2,601,000 |
Interest Rate Swap [Member] | ' | ' | ' | ' | ' |
Commodity contract commitments | ' | ' | ' | ' | ' |
Number of derivative instruments | 0 | 0 | 0 | 0 | ' |
Foreign Exchange Forward [Member] | ' | ' | ' | ' | ' |
Commodity contract commitments | ' | ' | ' | ' | ' |
Number of derivative instruments | 0 | 0 | 0 | 0 | ' |
Hedged Items Firm Commitment [Member] | Designated As Hedging Instrument [Member] | Cost Of Sales [Member] | ' | ' | ' | ' | ' |
Gains or losses on derivative instruments, statement of income | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in income on related hedged items | -653,000 | 1,297,000 | 331,000 | 2,613,000 | ' |
Hedged Items Inventory [Member] | Designated As Hedging Instrument [Member] | Cost Of Sales [Member] | ' | ' | ' | ' | ' |
Gains or losses on derivative instruments, statement of income | ' | ' | ' | ' | ' |
Amount of gain (loss) recognized in income on related hedged items | $2,846,000 | ($2,014,000) | $358,000 | ($8,822,000) | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Fair Value Measurements Recurring [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Estimate Of Fair Value Fair Value Disclosure [Member] | ' | ' |
Assets and liabilities subject to fair value measurements | ' | ' |
Carrying amount of long-term debt, including current maturities | $1,800,000,000 | $2,100,000,000 |
Estimate Of Fair Value Fair Value Disclosure [Member] | Commodity Contract [Member] | Future [Member] | ' | ' |
Assets and liabilities subject to fair value measurements | ' | ' |
Commodity futures - financial assets | 982,000 | 1,010,000 |
Commodity futures - financial liabilities | -3,581,000 | 4,487,000 |
Fair Value Inputs Level2 [Member] | ' | ' |
Assets and liabilities subject to fair value measurements | ' | ' |
Fair value of long-term debt, including current maturities | 1,900,000,000 | 2,300,000,000 |
Fair Value Inputs Level2 [Member] | Commodity Contract [Member] | Future [Member] | ' | ' |
Assets and liabilities subject to fair value measurements | ' | ' |
Commodity futures - financial assets | 982,000 | 1,010,000 |
Commodity futures - financial liabilities | ($3,581,000) | $4,487,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | Jun. 30, 2014 |
complaint | |
Commitment and contingencies | ' |
Number of the complaints not brought on behalf of steel product purchasers | 1 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
segment | |||||
Segment Information | ' | ' | ' | ' | ' |
Number of reporting segments | ' | ' | 3 | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | $2,069,761 | $1,801,340 | $3,899,843 | $3,597,036 | ' |
Operating income (loss) | 131,905 | 69,198 | 212,837 | 165,430 | ' |
Income (loss) before income taxes | 103,609 | 38,979 | 154,603 | 101,628 | ' |
Depreciation and amortization | 58,441 | 56,826 | 116,009 | 113,887 | ' |
Capital expenditures | 33,534 | 49,236 | 58,375 | 94,582 | ' |
Assets | 5,985,202 | 5,735,910 | 5,985,202 | 5,735,910 | 5,933,006 |
Liabilities | 3,025,992 | 3,220,439 | 3,025,992 | 3,220,439 | ' |
U [S] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 1,960,665 | 1,701,890 | 3,676,183 | 3,383,864 | ' |
Foreign Countries [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 109,096 | 99,450 | 223,660 | 213,172 | ' |
Steel Operations [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Capital expenditures | 16,332 | 34,533 | 34,938 | 59,259 | ' |
Metals Recycling And Ferrous Resources Operations [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Capital expenditures | 16,384 | 13,545 | 22,163 | 32,614 | ' |
Steel Fabrication Operations [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Capital expenditures | 536 | 822 | 847 | 1,703 | ' |
Corporate And Other [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Capital expenditures | 282 | 336 | 427 | 1,006 | ' |
Operating Segments [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 2,069,761 | 1,801,340 | 3,899,843 | 3,597,036 | ' |
Operating Segments [Member] | Steel Operations [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 1,334,906 | 1,143,913 | 2,496,236 | 2,266,273 | ' |
Operating income (loss) | 155,949 | 85,545 | 261,592 | 204,846 | ' |
Income (loss) before income taxes | 142,594 | 71,732 | 234,592 | 176,739 | ' |
Depreciation and amortization | 28,869 | 26,496 | 56,246 | 52,883 | ' |
Assets | 2,732,388 | 2,582,168 | 2,732,388 | 2,582,168 | ' |
Liabilities | 578,124 | 512,634 | 578,124 | 512,634 | ' |
Operating Segments [Member] | Steel Operations [Member] | Other Segments [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 69,802 | 52,897 | 113,534 | 113,945 | ' |
Operating Segments [Member] | Steel Operations [Member] | U [S] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 1,214,247 | 1,038,868 | 2,275,326 | 2,050,063 | ' |
Operating Segments [Member] | Steel Operations [Member] | Foreign Countries [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 50,857 | 52,148 | 107,376 | 102,265 | ' |
Operating Segments [Member] | Metals Recycling And Ferrous Resources Operations [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 948,833 | 861,158 | 1,868,535 | 1,758,650 | ' |
Operating income (loss) | -6,053 | -7,251 | -21,572 | -17,075 | ' |
Income (loss) before income taxes | -12,634 | -14,439 | -35,330 | -32,293 | ' |
Depreciation and amortization | 25,870 | 26,704 | 52,491 | 53,840 | ' |
Assets | 2,551,899 | 2,490,215 | 2,551,899 | 2,490,215 | ' |
Liabilities | 640,459 | 522,306 | 640,459 | 522,306 | ' |
Operating Segments [Member] | Metals Recycling And Ferrous Resources Operations [Member] | Other Segments [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 303,617 | 275,666 | 647,545 | 552,030 | ' |
Operating Segments [Member] | Metals Recycling And Ferrous Resources Operations [Member] | U [S] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 587,385 | 538,599 | 1,105,342 | 1,096,210 | ' |
Operating Segments [Member] | Metals Recycling And Ferrous Resources Operations [Member] | Foreign Countries [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 57,831 | 46,893 | 115,648 | 110,410 | ' |
Operating Segments [Member] | Steel Fabrication Operations [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 134,852 | 104,159 | 250,713 | 198,534 | ' |
Operating income (loss) | 7,590 | 2,330 | 10,716 | 3,860 | ' |
Income (loss) before income taxes | 6,099 | 800 | 7,751 | 724 | ' |
Depreciation and amortization | 2,401 | 2,179 | 4,623 | 4,236 | ' |
Assets | 297,149 | 261,556 | 297,149 | 261,556 | ' |
Liabilities | 20,879 | 16,136 | 20,879 | 16,136 | ' |
Operating Segments [Member] | Steel Fabrication Operations [Member] | Other Segments [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | ' | 564 | ' | 1,142 | ' |
Operating Segments [Member] | Steel Fabrication Operations [Member] | U [S] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 134,852 | 103,595 | 250,713 | 197,392 | ' |
Operating Segments [Member] | Corporate And Other [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 31,898 | 28,122 | 59,420 | 52,976 | ' |
Operating income (loss) | -24,159 | -14,434 | -40,704 | -30,873 | ' |
Income (loss) before income taxes | -31,028 | -22,122 | -55,215 | -48,214 | ' |
Depreciation and amortization | 1,352 | 1,498 | 2,751 | 3,030 | ' |
Assets | 624,518 | 604,195 | 624,518 | 604,195 | ' |
Liabilities | 1,996,306 | 2,362,721 | 1,996,306 | 2,362,721 | ' |
Operating Segments [Member] | Corporate And Other [Member] | Other Segments [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 7,309 | 6,885 | 13,982 | 12,280 | ' |
Operating Segments [Member] | Corporate And Other [Member] | U [S] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 24,181 | 20,828 | 44,802 | 40,199 | ' |
Operating Segments [Member] | Corporate And Other [Member] | Foreign Countries [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | 408 | 409 | 636 | 497 | ' |
Intersegment Elimination [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | -380,728 | -336,012 | -775,061 | -679,397 | ' |
Operating income (loss) | -1,422 | 3,008 | 2,805 | 4,672 | ' |
Income (loss) before income taxes | -1,422 | 3,008 | 2,805 | 4,672 | ' |
Depreciation and amortization | -51 | -51 | -102 | -102 | ' |
Assets | -220,752 | -202,224 | -220,752 | -202,224 | ' |
Liabilities | -209,776 | -193,358 | -209,776 | -193,358 | ' |
Intersegment Elimination [Member] | Other Segments [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' |
Total net sales | ($380,728) | ($336,012) | ($775,061) | ($679,397) | ' |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate SG & A | ($73,463,000) | ($65,356,000) | ($143,505,000) | ($130,618,000) | ' | ' | ' | ' |
Profit sharing | -10,469,000 | -4,779,000 | -15,864,000 | -11,422,000 | ' | ' | ' | ' |
Operating income | 131,905,000 | 69,198,000 | 212,837,000 | 165,430,000 | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and equivalents | 357,490,000 | 243,753,000 | 357,490,000 | 243,753,000 | 342,919,000 | 395,156,000 | 477,861,000 | 375,917,000 |
Accounts receivable | 852,440,000 | ' | 852,440,000 | ' | ' | 664,208,000 | ' | ' |
Inventories | 1,320,871,000 | ' | 1,320,871,000 | ' | ' | 1,314,747,000 | ' | ' |
Deferred income taxes | 17,813,000 | ' | 17,813,000 | ' | ' | 17,964,000 | ' | ' |
Property, plant and equipment, net | 2,177,007,000 | ' | 2,177,007,000 | ' | ' | 2,226,134,000 | ' | ' |
Other | 76,439,000 | ' | 76,439,000 | ' | ' | 115,083,000 | ' | ' |
Total assets | 5,985,202,000 | 5,735,910,000 | 5,985,202,000 | 5,735,910,000 | ' | 5,933,006,000 | ' | ' |
Liabilities | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | 440,691,000 | ' | 440,691,000 | ' | ' | 414,932,000 | ' | ' |
Income taxes payable | 19,448,000 | ' | 19,448,000 | ' | ' | 4,023,000 | ' | ' |
Accrued interest | 30,682,000 | ' | 30,682,000 | ' | ' | 31,363,000 | ' | ' |
Deferred income taxes | 548,285,000 | ' | 548,285,000 | ' | ' | 556,038,000 | ' | ' |
Liabilities | 3,025,992,000 | 3,220,439,000 | 3,025,992,000 | 3,220,439,000 | ' | ' | ' | ' |
Operating Segments [Member] | Corporate And Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' |
Corporate SG & A | -11,000,000 | -9,100,000 | -19,300,000 | -17,100,000 | ' | ' | ' | ' |
Company-wide equity- based compensation | -4,700,000 | -2,000,000 | -9,300,000 | -5,200,000 | ' | ' | ' | ' |
Profit sharing | -8,900,000 | -3,200,000 | -13,600,000 | -9,100,000 | ' | ' | ' | ' |
Other, net | 400,000 | -100,000 | 1,500,000 | 500,000 | ' | ' | ' | ' |
Operating income | -24,159,000 | -14,434,000 | -40,704,000 | -30,873,000 | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and equivalents | 299,900,000 | 218,200,000 | 299,900,000 | 218,200,000 | ' | ' | ' | ' |
Accounts receivable | 14,400,000 | 13,600,000 | 14,400,000 | 13,600,000 | ' | ' | ' | ' |
Inventories | 12,400,000 | 15,500,000 | 12,400,000 | 15,500,000 | ' | ' | ' | ' |
Deferred income taxes | 17,700,000 | 23,600,000 | 17,700,000 | 23,600,000 | ' | ' | ' | ' |
Property, plant and equipment, net | 70,900,000 | 73,700,000 | 70,900,000 | 73,700,000 | ' | ' | ' | ' |
Debt issuance costs, net | 22,900,000 | 29,300,000 | 22,900,000 | 29,300,000 | ' | ' | ' | ' |
Intra-company debt | 158,100,000 | 154,200,000 | 158,100,000 | 154,200,000 | ' | ' | ' | ' |
Other | 28,200,000 | 76,100,000 | 28,200,000 | 76,100,000 | ' | ' | ' | ' |
Total assets | 624,518,000 | 604,195,000 | 624,518,000 | 604,195,000 | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | 46,000,000 | 43,500,000 | 46,000,000 | 43,500,000 | ' | ' | ' | ' |
Income taxes payable | 19,400,000 | 2,900,000 | 19,400,000 | 2,900,000 | ' | ' | ' | ' |
Accrued interest | 30,500,000 | 32,300,000 | 30,500,000 | 32,300,000 | ' | ' | ' | ' |
Accrued profit sharing | 13,600,000 | 9,200,000 | 13,600,000 | 9,200,000 | ' | ' | ' | ' |
Debt | 1,737,000,000 | 2,045,300,000 | 1,737,000,000 | 2,045,300,000 | ' | ' | ' | ' |
Deferred income taxes | 120,500,000 | 205,100,000 | 120,500,000 | 205,100,000 | ' | ' | ' | ' |
Other | 29,300,000 | 24,400,000 | 29,300,000 | 24,400,000 | ' | ' | ' | ' |
Liabilities | $1,996,306,000 | $2,362,721,000 | $1,996,306,000 | $2,362,721,000 | ' | ' | ' | ' |
Segment_Information_Details_3
Segment Information (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Operating income (loss) | ' | ' | ' | ' | ' |
Gross profit increase (decrease) from intra-company sales | $222,771,000 | $147,692,000 | $386,075,000 | $323,956,000 | ' |
Assets elimination | ' | ' | ' | ' | ' |
Elimination of intra-company receivables | 910,796,000 | ' | 910,796,000 | ' | 720,600,000 |
Other | 76,439,000 | ' | 76,439,000 | ' | 115,083,000 |
Total assets | 5,985,202,000 | 5,735,910,000 | 5,985,202,000 | 5,735,910,000 | 5,933,006,000 |
Liabilities elimination | ' | ' | ' | ' | ' |
Elimination of intra-company payables | 440,691,000 | ' | 440,691,000 | ' | 414,932,000 |
Liabilities | 3,025,992,000 | 3,220,439,000 | 3,025,992,000 | 3,220,439,000 | ' |
Intersegment Elimination [Member] | ' | ' | ' | ' | ' |
Operating income (loss) | ' | ' | ' | ' | ' |
Gross profit increase (decrease) from intra-company sales | -1,400,000 | 3,000,000 | 2,800,000 | 4,700,000 | ' |
Assets elimination | ' | ' | ' | ' | ' |
Elimination of intra-company receivables | -52,000,000 | -40,200,000 | -52,000,000 | -40,200,000 | ' |
Elimination of intra-company debt | -158,100,000 | -154,200,000 | -158,100,000 | -154,200,000 | ' |
Other | -10,700,000 | -7,800,000 | -10,700,000 | -7,800,000 | ' |
Total assets | -220,752,000 | -202,224,000 | -220,752,000 | -202,224,000 | ' |
Liabilities elimination | ' | ' | ' | ' | ' |
Elimination of intra-company payables | -52,400,000 | -40,500,000 | -52,400,000 | -40,500,000 | ' |
Elimination of intra-company debt | -158,100,000 | -154,200,000 | -158,100,000 | -154,200,000 | ' |
Other | 700,000 | 1,300,000 | 700,000 | 1,300,000 | ' |
Liabilities | ($209,776,000) | ($193,358,000) | ($209,776,000) | ($193,358,000) | ' |
Condensed_Consolidating_Inform2
Condensed Consolidating Information (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
Condensed Consolidating Balance Sheets | ' | ' | ' | ' | ' | ' |
Ownership interest in subsidiaries (as a percent) | 100.00% | ' | ' | ' | ' | ' |
Cash and equivalents | $357,490 | $342,919 | $395,156 | $243,753 | $477,861 | $375,917 |
Accounts receivable, net | 910,796 | ' | 720,600 | ' | ' | ' |
Inventories | 1,320,871 | ' | 1,314,747 | ' | ' | ' |
Other current assets | 41,029 | ' | 43,131 | ' | ' | ' |
Total current assets | 2,630,186 | ' | 2,473,634 | ' | ' | ' |
Property, plant and equipment, net | 2,177,007 | ' | 2,226,134 | ' | ' | ' |
Intangible assets, net | 372,819 | ' | 386,159 | ' | ' | ' |
Goodwill | 728,751 | ' | 731,996 | ' | ' | ' |
Other assets, including investments in subs | 76,439 | ' | 115,083 | ' | ' | ' |
Total assets | 5,985,202 | ' | 5,933,006 | 5,735,910 | ' | ' |
Accounts payable | 440,691 | ' | 414,932 | ' | ' | ' |
Accrued expenses | 210,771 | ' | 218,702 | ' | ' | ' |
Current maturities of long-term debt | 61,761 | ' | 341,544 | ' | ' | ' |
Total current liabilities | 713,223 | ' | 975,178 | ' | ' | ' |
Long-term debt | 1,742,128 | ' | 1,766,045 | ' | ' | ' |
Other liabilities | 570,641 | ' | 579,414 | ' | ' | ' |
Redeemable noncontrolling interests | 124,180 | ' | 116,514 | ' | ' | ' |
Common stock | 647 | ' | 645 | ' | ' | ' |
Treasury stock | -398,818 | ' | -718,529 | ' | ' | ' |
Additional paid-in capital | 1,058,921 | ' | 1,085,694 | ' | ' | ' |
Retained earnings (deficit) | 2,237,147 | ' | 2,179,513 | ' | ' | ' |
Total Steel Dynamics, Inc. equity | 2,897,897 | ' | 2,547,323 | ' | ' | ' |
Noncontrolling interests | -62,867 | ' | -51,468 | ' | ' | ' |
Total equity | 2,835,030 | ' | 2,495,855 | ' | ' | ' |
Total liabilities and equity | 5,985,202 | ' | 5,933,006 | ' | ' | ' |
Reportable Legal Entities [Member] | Parent Company [Member] | ' | ' | ' | ' | ' | ' |
Condensed Consolidating Balance Sheets | ' | ' | ' | ' | ' | ' |
Cash and equivalents | 297,225 | ' | 320,866 | 213,717 | ' | 322,707 |
Accounts receivable, net | 367,627 | ' | 309,691 | ' | ' | ' |
Inventories | 684,841 | ' | 673,763 | ' | ' | ' |
Other current assets | 47,442 | ' | 50,228 | ' | ' | ' |
Total current assets | 1,397,135 | ' | 1,354,548 | ' | ' | ' |
Property, plant and equipment, net | 1,033,622 | ' | 1,046,093 | ' | ' | ' |
Other assets, including investments in subs | 2,615,185 | ' | 2,630,411 | ' | ' | ' |
Total assets | 5,045,942 | ' | 5,031,052 | ' | ' | ' |
Accounts payable | 168,091 | ' | 160,255 | ' | ' | ' |
Accrued expenses | 142,351 | ' | 142,055 | ' | ' | ' |
Current maturities of long-term debt | 34,925 | ' | 315,521 | ' | ' | ' |
Total current liabilities | 345,367 | ' | 617,831 | ' | ' | ' |
Long-term debt | 1,704,528 | ' | 1,725,433 | ' | ' | ' |
Other liabilities | 98,150 | ' | 140,465 | ' | ' | ' |
Common stock | 647 | ' | 645 | ' | ' | ' |
Treasury stock | -398,818 | ' | -718,529 | ' | ' | ' |
Additional paid-in capital | 1,058,921 | ' | 1,085,694 | ' | ' | ' |
Retained earnings (deficit) | 2,237,147 | ' | 2,179,513 | ' | ' | ' |
Total Steel Dynamics, Inc. equity | 2,897,897 | ' | 2,547,323 | ' | ' | ' |
Total equity | 2,897,897 | ' | 2,547,323 | ' | ' | ' |
Total liabilities and equity | 5,045,942 | ' | 5,031,052 | ' | ' | ' |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ' | ' | ' | ' | ' | ' |
Condensed Consolidating Balance Sheets | ' | ' | ' | ' | ' | ' |
Cash and equivalents | 50,461 | ' | 61,148 | 14,726 | ' | 41,675 |
Accounts receivable, net | 1,077,153 | ' | 874,707 | ' | ' | ' |
Inventories | 543,977 | ' | 557,640 | ' | ' | ' |
Other current assets | 7,719 | ' | 8,399 | ' | ' | ' |
Total current assets | 1,679,310 | ' | 1,501,894 | ' | ' | ' |
Property, plant and equipment, net | 584,587 | ' | 619,617 | ' | ' | ' |
Intangible assets, net | 372,819 | ' | 386,159 | ' | ' | ' |
Goodwill | 728,751 | ' | 731,996 | ' | ' | ' |
Other assets, including investments in subs | 21,781 | ' | 21,789 | ' | ' | ' |
Total assets | 3,387,248 | ' | 3,261,455 | ' | ' | ' |
Accounts payable | 284,773 | ' | 258,406 | ' | ' | ' |
Accrued expenses | 117,303 | ' | 115,182 | ' | ' | ' |
Current maturities of long-term debt | 300 | ' | 300 | ' | ' | ' |
Total current liabilities | 402,376 | ' | 373,888 | ' | ' | ' |
Other liabilities | 2,022,395 | ' | 1,986,260 | ' | ' | ' |
Common stock | 33,896 | ' | 33,896 | ' | ' | ' |
Additional paid-in capital | 117,737 | ' | 117,737 | ' | ' | ' |
Retained earnings (deficit) | 810,844 | ' | 749,674 | ' | ' | ' |
Total Steel Dynamics, Inc. equity | 962,477 | ' | 901,307 | ' | ' | ' |
Total equity | 962,477 | ' | 901,307 | ' | ' | ' |
Total liabilities and equity | 3,387,248 | ' | 3,261,455 | ' | ' | ' |
Reportable Legal Entities [Member] | Non Guarantor Subsidiaries [Member] | ' | ' | ' | ' | ' | ' |
Condensed Consolidating Balance Sheets | ' | ' | ' | ' | ' | ' |
Cash and equivalents | 9,804 | ' | 13,142 | 15,310 | ' | 11,535 |
Accounts receivable, net | 49,880 | ' | 32,018 | ' | ' | ' |
Inventories | 97,561 | ' | 91,199 | ' | ' | ' |
Other current assets | 4,310 | ' | 3,259 | ' | ' | ' |
Total current assets | 161,555 | ' | 139,618 | ' | ' | ' |
Property, plant and equipment, net | 561,115 | ' | 562,843 | ' | ' | ' |
Other assets, including investments in subs | 7,109 | ' | 8,092 | ' | ' | ' |
Total assets | 729,779 | ' | 710,553 | ' | ' | ' |
Accounts payable | 94,049 | ' | 60,987 | ' | ' | ' |
Accrued expenses | 10,089 | ' | 10,694 | ' | ' | ' |
Current maturities of long-term debt | 66,474 | ' | 52,163 | ' | ' | ' |
Total current liabilities | 170,612 | ' | 123,844 | ' | ' | ' |
Long-term debt | 184,554 | ' | 204,385 | ' | ' | ' |
Other liabilities | 35,504 | ' | 34,895 | ' | ' | ' |
Redeemable noncontrolling interests | 124,180 | ' | 116,514 | ' | ' | ' |
Common stock | 18,121 | ' | 18,121 | ' | ' | ' |
Additional paid-in capital | 585,348 | ' | 552,946 | ' | ' | ' |
Retained earnings (deficit) | -325,673 | ' | -288,684 | ' | ' | ' |
Total Steel Dynamics, Inc. equity | 277,796 | ' | 282,383 | ' | ' | ' |
Noncontrolling interests | -62,867 | ' | -51,468 | ' | ' | ' |
Total equity | 214,929 | ' | 230,915 | ' | ' | ' |
Total liabilities and equity | 729,779 | ' | 710,553 | ' | ' | ' |
Consolidation Eliminations [Member] | ' | ' | ' | ' | ' | ' |
Condensed Consolidating Balance Sheets | ' | ' | ' | ' | ' | ' |
Accounts receivable, net | -583,864 | ' | -495,816 | ' | ' | ' |
Inventories | -5,508 | ' | -7,855 | ' | ' | ' |
Other current assets | -18,442 | ' | -18,755 | ' | ' | ' |
Total current assets | -607,814 | ' | -522,426 | ' | ' | ' |
Property, plant and equipment, net | -2,317 | ' | -2,419 | ' | ' | ' |
Other assets, including investments in subs | -2,567,636 | ' | -2,545,209 | ' | ' | ' |
Total assets | -3,177,767 | ' | -3,070,054 | ' | ' | ' |
Accounts payable | -106,222 | ' | -64,716 | ' | ' | ' |
Accrued expenses | -58,972 | ' | -49,229 | ' | ' | ' |
Current maturities of long-term debt | -39,938 | ' | -26,440 | ' | ' | ' |
Total current liabilities | -205,132 | ' | -140,385 | ' | ' | ' |
Long-term debt | -146,954 | ' | -163,773 | ' | ' | ' |
Other liabilities | -1,585,408 | ' | -1,582,206 | ' | ' | ' |
Common stock | -52,017 | ' | -52,017 | ' | ' | ' |
Additional paid-in capital | -703,085 | ' | -670,683 | ' | ' | ' |
Retained earnings (deficit) | -485,171 | ' | -460,990 | ' | ' | ' |
Total Steel Dynamics, Inc. equity | -1,240,273 | ' | -1,183,690 | ' | ' | ' |
Total equity | -1,240,273 | ' | -1,183,690 | ' | ' | ' |
Total liabilities and equity | ($3,177,767) | ' | ($3,070,054) | ' | ' | ' |
Condensed_Consolidating_Inform3
Condensed Consolidating Information (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Consolidating Statements of Operations | ' | ' | ' | ' |
Net sales | $2,069,761 | $1,801,340 | $3,899,843 | $3,597,036 |
Costs of goods sold | 1,846,990 | 1,653,648 | 3,513,768 | 3,273,080 |
Gross profit | 222,771 | 147,692 | 386,075 | 323,956 |
Selling, general and administrative | 90,866 | 78,494 | 173,238 | 158,526 |
Operating income | 131,905 | 69,198 | 212,837 | 165,430 |
Interest expense, net of capitalized interest | 30,050 | 31,465 | 60,619 | 66,094 |
Other (income) expense, net | -1,754 | -1,246 | -2,385 | -2,292 |
Income before income taxes | 103,609 | 38,979 | 154,603 | 101,628 |
Income taxes (benefit) | 37,268 | 15,706 | 54,564 | 37,103 |
Net income | 66,341 | 23,273 | 100,039 | 64,525 |
Net loss attributable to noncontrolling interests | 5,962 | 5,685 | 10,843 | 12,648 |
Net income attributable to Steel Dynamics, Inc. | 72,303 | 28,958 | 110,882 | 77,173 |
Reportable Legal Entities [Member] | Parent Company [Member] | ' | ' | ' | ' |
Condensed Consolidating Statements of Operations | ' | ' | ' | ' |
Net sales | 1,007,569 | 836,805 | 1,871,132 | 1,664,006 |
Costs of goods sold | 860,024 | 753,761 | 1,621,419 | 1,460,148 |
Gross profit | 147,545 | 83,044 | 249,713 | 203,858 |
Selling, general and administrative | 35,419 | 24,916 | 64,253 | 53,602 |
Operating income | 112,126 | 58,128 | 185,460 | 150,256 |
Interest expense, net of capitalized interest | 19,031 | 20,148 | 38,392 | 42,194 |
Other (income) expense, net | -1,556 | -1,533 | -2,532 | -2,353 |
Income before income taxes | 94,651 | 39,513 | 149,600 | 110,415 |
Income taxes (benefit) | 23,950 | 5,621 | 33,875 | 17,015 |
Net income | 70,701 | 33,892 | 115,725 | 93,400 |
Equity in net loss of subsidiaries | 1,602 | -4,934 | -4,843 | -16,227 |
Net income attributable to Steel Dynamics, Inc. | 72,303 | 28,958 | 110,882 | 77,173 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Condensed Consolidating Statements of Operations | ' | ' | ' | ' |
Net sales | 2,313,459 | 1,998,513 | 4,425,848 | 4,014,000 |
Costs of goods sold | 2,183,181 | 1,900,497 | 4,198,757 | 3,814,555 |
Gross profit | 130,278 | 98,016 | 227,091 | 199,445 |
Selling, general and administrative | 56,411 | 54,764 | 110,700 | 108,756 |
Operating income | 73,867 | 43,252 | 116,391 | 90,689 |
Interest expense, net of capitalized interest | 10,294 | 10,751 | 20,855 | 22,790 |
Other (income) expense, net | -46 | 214 | 349 | 14 |
Income before income taxes | 63,619 | 32,287 | 95,187 | 67,885 |
Income taxes (benefit) | 23,076 | 12,214 | 34,018 | 25,133 |
Net income | 40,543 | 20,073 | 61,169 | 42,752 |
Net income attributable to Steel Dynamics, Inc. | 40,543 | 20,073 | 61,169 | 42,752 |
Reportable Legal Entities [Member] | Non Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Condensed Consolidating Statements of Operations | ' | ' | ' | ' |
Net sales | 121,239 | 88,039 | 227,088 | 154,409 |
Costs of goods sold | 141,362 | 107,814 | 264,935 | 203,755 |
Gross profit | -20,123 | -19,775 | -37,847 | -49,346 |
Selling, general and administrative | 3,406 | 2,673 | 6,814 | 4,811 |
Operating income | -23,529 | -22,448 | -44,661 | -54,157 |
Interest expense, net of capitalized interest | 1,986 | 1,789 | 3,866 | 3,490 |
Other (income) expense, net | -1,412 | -1,149 | -2,696 | -2,332 |
Income before income taxes | -24,103 | -23,088 | -45,831 | -55,315 |
Income taxes (benefit) | 814 | 1,382 | 1,510 | 2,081 |
Net income | -24,917 | -24,470 | -47,341 | -57,396 |
Net loss attributable to noncontrolling interests | 5,962 | 5,685 | 10,843 | 12,648 |
Net income attributable to Steel Dynamics, Inc. | -18,955 | -18,785 | -36,498 | -44,748 |
Consolidation Eliminations [Member] | ' | ' | ' | ' |
Condensed Consolidating Statements of Operations | ' | ' | ' | ' |
Net sales | -1,372,506 | -1,122,017 | -2,624,225 | -2,235,379 |
Costs of goods sold | -1,337,577 | -1,108,424 | -2,571,343 | -2,205,378 |
Gross profit | -34,929 | -13,593 | -52,882 | -30,001 |
Selling, general and administrative | -4,370 | -3,859 | -8,529 | -8,643 |
Operating income | -30,559 | -9,734 | -44,353 | -21,358 |
Interest expense, net of capitalized interest | -1,261 | -1,223 | -2,494 | -2,380 |
Other (income) expense, net | 1,260 | 1,222 | 2,494 | 2,379 |
Income before income taxes | -30,558 | -9,733 | -44,353 | -21,357 |
Income taxes (benefit) | -10,572 | -3,511 | -14,839 | -7,126 |
Net income | -19,986 | -6,222 | -29,514 | -14,231 |
Equity in net loss of subsidiaries | -1,602 | 4,934 | 4,843 | 16,227 |
Net income attributable to Steel Dynamics, Inc. | ($21,588) | ($1,288) | ($24,671) | $1,996 |
Condensed_Consolidating_Inform4
Condensed Consolidating Information (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Consolidating Statements of Cash Flows | ' | ' | ' | ' |
Net cash provided by (used in) operating activities | $76,014 | $32,715 | $48,767 | $62,425 |
Net cash used in investing activities | -31,220 | -48,373 | -27,177 | -59,785 |
Net cash provided by (used in) financing activities | -30,223 | -218,450 | -59,256 | -134,804 |
Increase (decrease) in cash and equivalents | 14,571 | -234,108 | -37,666 | -132,164 |
Cash and equivalents at beginning of period | 342,919 | 477,861 | 395,156 | 375,917 |
Cash and equivalents at end of period | 357,490 | 243,753 | 357,490 | 243,753 |
Reportable Legal Entities [Member] | Parent Company [Member] | ' | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows | ' | ' | ' | ' |
Net cash provided by (used in) operating activities | ' | ' | 94,219 | -6,011 |
Net cash used in investing activities | ' | ' | -34,747 | -62,083 |
Net cash provided by (used in) financing activities | ' | ' | -83,113 | -40,896 |
Increase (decrease) in cash and equivalents | ' | ' | -23,641 | -108,990 |
Cash and equivalents at beginning of period | ' | ' | 320,866 | 322,707 |
Cash and equivalents at end of period | 297,225 | 213,717 | 297,225 | 213,717 |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows | ' | ' | ' | ' |
Net cash provided by (used in) operating activities | ' | ' | -19,938 | 98,049 |
Net cash used in investing activities | ' | ' | -10,007 | -24,118 |
Net cash provided by (used in) financing activities | ' | ' | 19,258 | -100,880 |
Increase (decrease) in cash and equivalents | ' | ' | -10,687 | -26,949 |
Cash and equivalents at beginning of period | ' | ' | 61,148 | 41,675 |
Cash and equivalents at end of period | 50,461 | 14,726 | 50,461 | 14,726 |
Reportable Legal Entities [Member] | Non Guarantor Subsidiaries [Member] | ' | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows | ' | ' | ' | ' |
Net cash provided by (used in) operating activities | ' | ' | -23,559 | -39,730 |
Net cash used in investing activities | ' | ' | -13,076 | -9,484 |
Net cash provided by (used in) financing activities | ' | ' | 33,297 | 52,989 |
Increase (decrease) in cash and equivalents | ' | ' | -3,338 | 3,775 |
Cash and equivalents at beginning of period | ' | ' | 13,142 | 11,535 |
Cash and equivalents at end of period | 9,804 | 15,310 | 9,804 | 15,310 |
Consolidation Eliminations [Member] | ' | ' | ' | ' |
Condensed Consolidating Statements of Cash Flows | ' | ' | ' | ' |
Net cash provided by (used in) operating activities | ' | ' | -1,955 | 10,117 |
Net cash used in investing activities | ' | ' | 30,653 | 35,900 |
Net cash provided by (used in) financing activities | ' | ' | ($28,698) | ($46,017) |
Subsequent_Event_Acquisition1
Subsequent Event - Acquisition (USD $) | Jun. 30, 2014 | Jul. 18, 2014 | Jul. 18, 2014 |
Revolving Credit Facility [Member] | Subsequent Event [Member] | Consortium of Banks [Member] | |
Scenario Forecast [Member] | Subsequent Event [Member] | ||
Severstal Columbus Llc [Member] | Scenario Forecast [Member] | ||
Subsequent Event [Line Items] | ' | ' | ' |
Purchase price | ' | $1,625,000,000 | ' |
Existing and undrawn borrowings | 1,100,000,000 | ' | ' |
Bridge loan facilities | ' | ' | $1,000,000,000 |