Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | STEEL DYNAMICS INC | |
Entity Central Index Key | 1022671 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 241,804,284 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and equivalents | $160,982 | $361,363 |
Accounts receivable, net | 741,309 | 859,835 |
Accounts receivable related parties | 28,432 | 42,990 |
Inventories | 1,453,242 | 1,618,419 |
Deferred income taxes | 33,414 | 35,503 |
Other current assets | 34,846 | 55,655 |
Total current assets | 2,452,225 | 2,973,765 |
Property, plant and equipment, net | 3,085,587 | 3,123,906 |
Restricted cash | 19,242 | 19,312 |
Intangible assets, net | 364,620 | 370,669 |
Goodwill | 743,528 | 745,158 |
Other assets | 70,636 | 78,217 |
Total assets | 6,735,838 | 7,311,027 |
Current liabilities | ||
Accounts payable | 367,267 | 489,791 |
Accounts payable-related parties | 9,695 | 21,265 |
Income taxes payable | 5,116 | 6,086 |
Accrued payroll and benefits | 66,427 | 128,968 |
Accrued interest | 51,800 | 50,405 |
Accrued expenses | 87,302 | 107,607 |
Current maturities of long-term debt | 30,727 | 46,460 |
Total current liabilities | 618,334 | 850,582 |
Long-term debt | ||
Senior term loan | 234,375 | 237,500 |
Senior notes | 2,350,000 | 2,700,000 |
Other long-term debt | 39,069 | 40,206 |
Total long-term debt | 2,623,444 | 2,977,706 |
Deferred income taxes | 555,031 | 542,033 |
Other liabilities | 15,936 | 18,839 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 126,340 | 126,340 |
Equity | ||
Common stock voting, $.0025 par value; 900,000,000 shares authorized; 261,539,685 and 261,420,126 shares issued; and 241,688,172 and 241,449,423 shares outstanding, as of March 31, 2015 and December 31, 2014, respectively | 635 | 635 |
Treasury stock, at cost; 19,851,513 and 19,970,703 shares, as of March 31, 2015 and December 31, 2014, respectively | -396,517 | -398,898 |
Additional paid-in capital | 1,088,605 | 1,083,435 |
Retained earnings | 2,225,354 | 2,227,843 |
Total Steel Dynamics, Inc. equity | 2,918,077 | 2,913,015 |
Noncontrolling interests | -121,324 | -117,488 |
Total equity | 2,796,753 | 2,795,527 |
Total liabilities and equity | $6,735,838 | $7,311,027 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock voting, par value (in dollars per share) | $0.00 | $0.00 |
Common stock voting, shares authorized (in shares) | 900,000,000 | 900,000,000 |
Common stock voting, shares issued (in shares) | 261,539,685 | 261,420,126 |
Common stock voting, shares outstanding (in shares) | 241,688,172 | 241,449,423 |
Treasury stock, shares (in shares) | 19,851,513 | 19,970,703 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net sales | ||
Unrelated parties | $2,003,973 | $1,765,881 |
Related parties | 43,462 | 64,201 |
Total net sales | 2,047,435 | 1,830,082 |
Costs of goods sold | 1,860,393 | 1,666,778 |
Gross profit | 187,042 | 163,304 |
Selling, general and administrative expenses | 76,350 | 70,042 |
Profit sharing | 4,598 | 5,395 |
Amortization of intangible assets | 6,323 | 6,935 |
Operating income | 99,771 | 80,932 |
Interest expense, net of capitalized interest | 43,087 | 30,569 |
Other (income) expense, net | 16,192 | -631 |
Income before income taxes | 40,492 | 50,994 |
Income taxes | 13,538 | 17,296 |
Net income | 26,954 | 33,698 |
Net loss attributable to noncontrolling interests | 3,807 | 4,881 |
Net income attributable to Steel Dynamics, Inc. | $30,761 | $38,579 |
Basic earnings per share attributable to Steel Dynamics, Inc. stockholders (in dollars per share) | $0.13 | $0.17 |
Weighted average common shares outstanding (in shares) | 241,535 | 223,011 |
Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share) | $0.13 | $0.17 |
Weighted average common shares and share equivalents outstanding (in shares) | 242,867 | 241,394 |
Dividends declared per share (in dollars per share) | $0.14 | $0.12 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities: | ||
Net income | $26,954 | $33,698 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 72,822 | 57,568 |
Equity-based compensation | 8,543 | 5,768 |
Deferred income taxes | 16,717 | -4,091 |
(Gain) loss on disposal of assets | 4,985 | 2,641 |
Changes in certain assets and liabilities: | ||
Accounts receivable | 133,084 | -88,950 |
Inventories | 164,999 | -17,354 |
Other assets | 4,508 | 7,359 |
Accounts payable | -127,053 | 5,041 |
Income taxes receivable/payable | 16,265 | 19,393 |
Accrued expenses and liabilities | -87,117 | -48,320 |
Net cash provided by (used in) operating activities | 234,707 | -27,247 |
Investing activities: | ||
Purchases of property, plant and equipment | -33,351 | -24,841 |
Other investing activities | 1,663 | 28,884 |
Net cash provided by (used in) investing activities | -31,688 | 4,043 |
Financing activities: | ||
Issuance of current and long-term debt | 50,093 | 43,453 |
Repayments of current and long-term debt | -427,451 | -56,246 |
Proceeds from exercise of stock options, including related tax effect | 1,753 | 2,905 |
Contributions from noncontrolling investors, net | -29 | 5,370 |
Dividends paid | -27,766 | -24,515 |
Net cash used in financing activities | -403,400 | -29,033 |
Decrease in cash and equivalents | -200,381 | -52,237 |
Cash and equivalents at beginning of period | 361,363 | 395,156 |
Cash and equivalents at end of period | 160,982 | 342,919 |
Supplemental disclosure information: | ||
Cash paid for interest | 40,094 | 39,663 |
Cash paid (received) for federal and state income taxes, net | ($18,539) | $2,143 |
Description_of_the_Business_an
Description of the Business and Significant Accounting Policies | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 Butler Flat Roll Division, Columbus Flat Roll Division (acquired September 16, 2014), The Techs galvanizing lines, Structural and Rail Division, Engineered Bar Products Division, Roanoke Bar Division, and Steel of West Virginia. These operations consist of electric arc furnace steel mills, producing steel from ferrous scrap, utilizing continuous casting, automated rolling mills, and eight downstream finishing facilities. Steel operations accounted for 68% and 61% of the company’s consolidated external net sales during the three-month periods ended March 31, 2015 and 2014, respectively. | ||||||||
Metals Recycling and Ferrous Resources Operations. Metals recycling and ferrous resources operations primarily include OmniSource Corporation (OmniSource), the company’s metals recycling and processing locations, ferrous scrap procurement, and our two ironmaking initiatives: Iron Dynamics (IDI), a liquid pig iron production facility; and our Minnesota ironmaking operations, an iron nugget production facility and operations to supply the nugget facility with its primary raw material, iron concentrate. Metals recycling and ferrous resources operations accounted for 23% and 32% of the company’s consolidated external net sales during the three-month periods ended March 31, 2015, and 2014, 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 8% and 6% of the company’s consolidated external net sales during the three-month periods ended March 31, 2015, and 2014, respectively. | ||||||||
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, 2014. | ||||||||
Goodwill. The company’s goodwill is allocated to the following reporting units at March 31, 2015, and December 31, 2014, (in thousands): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
OmniSource — Metals Recycling/Ferrous Resources Segment | $ | 455,097 | $ | 456,727 | ||||
The Techs — Steel Segment | 142,783 | 142,783 | ||||||
Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division — Metals Recycling/Ferrous Resources Segment | 95,000 | 95,000 | ||||||
Roanoke Bar Division — Steel Segment | 29,041 | 29,041 | ||||||
Columbus Flat Roll Division — Steel Segment | 19,682 | 19,682 | ||||||
New Millennium Building Systems — Fabrication Segment | 1,925 | 1,925 | ||||||
$ | 743,528 | $ | 745,158 | |||||
OmniSource goodwill decreased $1.6 million from December 31, 2014 to March 31, 2015, in recognition of the 2015 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 core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Because the guidance in ASC 606 is principles-based, it can be applied to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. Additionally, ASC 606 requires additional disclosures to help users of financial statements better understand the nature, amount, timing, and potential uncertainty of revenue that is recognized. This guidance is effective for annual and interim periods ending after December 15, 2016. The company is currently evaluating the impact of the provisions of ASC 606. | ||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements — Going Concern (Subtopic 205-40: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern), effective for annual and interim periods ending after December 15, 2016. ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. There are required disclosures if principal conditions or events are identified that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans), as well as management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern. This ASU is not expected to have any impact on our overall results of operations, financial position or cash flows. | ||||||||
In April 2015, the FASB issued ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30) — Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented as a deduction from the corresponding debt liability, rather than as a separate asset, which is the current accounting method of the company. Implementation of this new guidance is required by the company in the first quarter of 2016, but can be early adopted. Upon adoption, the company must apply the new guidance retrospectively to all prior periods presented in the financial statements. The company is currently evaluating when and the manner in which to adopt the presentation and disclosure requirements of the new guidance. This ASU is not expected to have any impact on our overall results of operations, equity or cash flows as previously reported. | ||||||||
Acquisition
Acquisition | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Acquisition | |||||
Acquisition | Note 2. Acquisition | ||||
The company completed its acquisition of 100% of Severstal Columbus, LLC (Columbus) on September 16, 2014, for a purchase price of $1.625 billion, with additional working capital adjustments of $44.4 million. The acquisition was funded through the issuance of $1.2 billion in Senior Notes, borrowings under the company’s senior secured credit facility, and available cash. The company purchased Columbus to significantly expand and diversify its steel operating base with the addition of 3.4 million tons of hot roll steel production capacity. The product offerings are diversified with respect to width, gauge, and strength when compared to the capabilities of our Butler Flat Roll Division. Located in northeast Mississippi, Columbus is one of the newest and most technologically advanced sheet steel electric arc furnace mills in North America. Additionally, Columbus is advantageously located to serve the growing markets in the southern U.S. and Mexico, providing the company with geographic diversification and growth opportunities. | |||||
Unaudited Pro Forma Information. Columbus’ operating results have been reflected in the company’s financial statements since the effective date of the acquisition, September 16, 2014, in the steel operations reporting segment. The following unaudited pro forma information is presented below for comparison purposes as if the Columbus acquisition was completed as of January 1, 2013, (in thousands): | |||||
Three Months Ended | |||||
March 31, 2014 | |||||
Net sales | $ | 2,358,273 | |||
Net income attributable to Steel Dynamics, Inc. | 63,065 | ||||
The information presented is for information purposes only and is not necessarily indicative of the actual results that would have occurred had the acquisition been consummated at January 1, 2013, nor is it necessarily indicative of future operating results of the combined companies under the ownership and management of the company. The pro forma results reflect the pre-acquisition operations of Columbus for the three-month period ended March 31, 2014. | |||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
Earnings Per Share | ||||||||||||||||||
Earnings Per Share | Note 3. Earnings Per Share | |||||||||||||||||
Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company’s basic earnings per share. Common share equivalents represent potentially dilutive stock options, restricted stock units, deferred stock units, and dilutive shares related to the company’s convertible subordinated debt; and are excluded from the computation in periods in which they have an anti-dilutive effect. There were no anti-dilutive options at March 31, 2015, and 2014. | ||||||||||||||||||
The following table presents a reconciliation of the numerators and the denominators of the company’s basic and diluted earnings per share computations for the three months ended March 31, 2015 and 2014 (in thousands, except per share data): | ||||||||||||||||||
2015 | 2014 | |||||||||||||||||
Net Income | Shares | Per Share | Net Income | Shares | Per Share | |||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | |||||||||||||
Basic earnings per share | $ | 30,761 | 241,535 | $ | 0.13 | $ | 38,579 | 223,011 | $ | 0.17 | ||||||||
Dilutive common share equivalents | — | 1,332 | — | 1,608 | ||||||||||||||
5.125% Convertible Senior Notes, net of tax | — | — | 2,358 | 16,775 | ||||||||||||||
Diluted earnings per share | $ | 30,761 | 242,867 | $ | 0.13 | $ | 40,937 | 241,394 | $ | 0.17 | ||||||||
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventories | ||||||||
Inventories | Note 4. 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): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Raw materials | $ | 677,346 | $ | 764,883 | ||||
Supplies | 381,695 | 374,599 | ||||||
Work in progress | 100,408 | 128,882 | ||||||
Finished goods | 293,793 | 350,055 | ||||||
$ | 1,453,242 | $ | 1,618,419 | |||||
Debt
Debt | 3 Months Ended |
Mar. 31, 2015 | |
Long-Term Debt | |
Long-Term Debt | Note 5. Debt |
On March 16, 2015, the company called and repaid all $350.0 million of its outstanding 75/8% Senior Notes due 2020 (the “Notes”) at a redemption price of 103.813% of the principal amount of the Notes, plus accrued interest and unpaid interest to, but not including, the date of redemption. Associated premiums and the write off of deferred financing costs of approximately $16.7 million were recorded in other expense in conjunction with the redemption. | |
Changes_in_Equity
Changes in Equity | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Shareholders' Equity | |||||||||||||||||||||||
Shareholders' Equity | |||||||||||||||||||||||
Note 6. 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, 2015 | $ | 635 | $ | 1,083,435 | $ | 2,227,843 | $ | (398,898 | ) | $ | (117,488 | ) | $ | 2,795,527 | $ | 126,340 | |||||||
Proceeds from the exercise of stock options, including related tax effect | — | 1,752 | — | — | — | 1,752 | — | ||||||||||||||||
Dividends declared | — | — | (33,232 | ) | — | — | (33,232 | ) | — | ||||||||||||||
Distributions to noncontrolling investors | — | — | — | — | (29 | ) | (29 | ) | — | ||||||||||||||
Equity-based compensation | — | 3,418 | (18 | ) | 2,381 | — | 5,781 | — | |||||||||||||||
Comprehensive and net income (loss) | — | — | 30,761 | — | (3,807 | ) | 26,954 | — | |||||||||||||||
Balances at March 31, 2015 | $ | 635 | $ | 1,088,605 | $ | 2,225,354 | $ | (396,517 | ) | $ | (121,324 | ) | $ | 2,796,753 | $ | 126,340 | |||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||
Derivative Financial Instruments | Note 7. Derivative Financial Instruments | |||||||||||||||||||
The company is exposed to certain risks relating to its ongoing business operations. The company utilizes derivative instruments to mitigate interest rate risk, foreign currency exchange rate risk, and commodity margin risk. The company routinely enters into forward exchange traded futures and option contracts to manage the price risk associated with nonferrous metals inventory as well as purchases and sales of nonferrous metals (specifically aluminum, copper, nickel and silver). The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements. | ||||||||||||||||||||
Commodity Futures Contracts. If the company is “long” on futures contracts, it means the company has more futures contracts purchased than futures contracts sold for the underlying commodity. If the company is “short” on a futures contract, it means the company has more futures contracts sold than futures contracts purchased for the underlying commodity. The following summarizes the company’s futures contract commitments as of March 31, 2015 (MT represents metric tons and Lbs represents pounds): | ||||||||||||||||||||
Commodity Futures | Long/Short | Total | ||||||||||||||||||
Aluminum | Long | 3,825 | MT | |||||||||||||||||
Aluminum | Short | 4,175 | MT | |||||||||||||||||
Copper | Long | 6,267 | MT | |||||||||||||||||
Copper | Short | 16,561 | 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 March 31, 2015, and December 31, 2014, and gains and losses related to derivatives included in the company’s statement of income for the three-month periods ended March 31, 2015, and 2014 (in thousands): | ||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||
Balance sheet location | March 31, 2015 | December 31, | March 31, 2015 | December 31, | ||||||||||||||||
2014 | 2014 | |||||||||||||||||||
Derivative instruments designated as fair value hedges - | ||||||||||||||||||||
Commodity futures | Other current assets | $ | 688 | $ | 3,180 | $ | 2,734 | $ | 913 | |||||||||||
Derivative instruments not designated as hedges - | ||||||||||||||||||||
Commodity futures | Other current assets | 1,216 | 2,132 | 1,762 | 626 | |||||||||||||||
Total derivative instruments | $ | 1,904 | $ | 5,312 | $ | 4,496 | $ | 1,539 | ||||||||||||
The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements, which totaled $7.7 million at March 31, 2015, and $7.6 million at December 31, 2014, are reflected in other current assets in the consolidated balance sheet. | ||||||||||||||||||||
Location of gain | Amount of gain (loss) | Hedged items | Location of gain | Amount of gain (loss) | ||||||||||||||||
(loss) recognized | recognized in income on | (loss) recognized | recognized in income on | |||||||||||||||||
derivatives for the three | related hedged items for | |||||||||||||||||||
months ended | the three months ended | |||||||||||||||||||
in income on | March 31, | March 31, | in fair value hedge | in income on | March 31, | March 31, | ||||||||||||||
derivatives | 2015 | 2014 | relationships | derivatives | 2015 | 2014 | ||||||||||||||
Derivatives in fair value hedging relationships - | ||||||||||||||||||||
Commodity futures | Costs of goods sold | $ | (4,313 | ) | $ | 1,617 | Firm commitments | Costs of goods sold | $ | 494 | $ | 984 | ||||||||
Inventory | Costs of goods sold | 2,656 | (2,488 | ) | ||||||||||||||||
$ | 3,150 | $ | (1,504 | ) | ||||||||||||||||
Derivatives not designated as hedging instruments - | ||||||||||||||||||||
Commodity futures | Costs of goods sold | $ | 6,996 | $ | 7,956 | |||||||||||||||
Derivatives accounted for as fair value hedges had ineffectiveness resulting in gains of $107,000 and $296,000 during the three-month periods ended March 31, 2015, and 2014, respectively; and losses excluded from hedge effectiveness testing of $1.3 million and $183,000 that increased costs of goods sold during the three-month periods ended March 31, 2015, and 2014, respectively. | ||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Fair Value Measurements | Note 8. Fair Value Measurements | |||||||||||||
FASB accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. Levels within the hierarchy are defined as follows: | ||||||||||||||
Level 1—Unadjusted quoted prices for identical assets and liabilities in active markets; | ||||||||||||||
· | Level 2—Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable for the asset or liability, either directly or indirectly; and | |||||||||||||
· | Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||||||||||
The following table sets forth financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheet and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of March 31, 2015, and December 31, 2014 (in thousands): | ||||||||||||||
Total | Quoted Prices in | Significant | Significant | |||||||||||
Active Markets | Other | Unobservable | ||||||||||||
for Identical | Observable | Inputs | ||||||||||||
Assets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
March 31, 2015 | ||||||||||||||
Commodity futures — financial assets | $ | 1,904 | $ | — | $ | 1,904 | $ | — | ||||||
Commodity futures — financial liabilities | 4,496 | — | 4,496 | — | ||||||||||
December 31, 2014 | ||||||||||||||
Commodity futures — financial assets | $ | 5,312 | $ | — | $ | 5,312 | $ | — | ||||||
Commodity futures — financial liabilities | 1,539 | — | 1,539 | — | ||||||||||
The carrying amounts of financial instruments including cash and equivalents approximate fair value. The fair values of commodity futures contracts are estimated by the use of quoted market prices, estimates obtained from brokers, and other appropriate valuation techniques based on references available. The fair value of long-term debt, including current maturities, as determined by quoted market prices (Level 2), was approximately $2.7 billion and $3.1 billion (with a corresponding carrying amount in the consolidated balance sheets of $2.7 billion and $3.0 billion) at March 31, 2015, and December 31, 2014, respectively. | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 9. Commitments and Contingencies |
The company is involved in various routine litigation matters, including administrative proceedings, regulatory proceedings, governmental investigations, environmental matters, and commercial and construction contract disputes, none of which are expected to have a material impact on our financial condition, results of operations, or liquidity. | |
The company is involved, along with other steel manufacturing companies, in several class action antitrust complaints filed in federal court in Chicago, Illinois, which allege a conspiracy to fix, raise, maintain and stabilize the price at which steel products were sold in the United States during a period between 2005 and 2007, by artificially restricting the supply of such steel products. One of the complaints were brought on behalf of a purported class consisting of all direct purchasers of steel products. A second complaint was brought on behalf of a purported class consisting of all indirect purchasers of steel products within the same time period. An additional complaint was brought in December 2010, on behalf of indirect purchasers of steel products in Tennessee and has been consolidated with the original complaints. All complaints seek treble damages and costs, including reasonable attorney fees, pre- and post-judgment interest and injunctive relief. Plaintiffs filed a Motion for Class Certification in May 2012, and on February 28, 2013, Defendants filed their Joint Memorandum in Opposition to Plaintiffs’ Motion for Class Certification. A hearing on class certification was held on March 5 — 7 and April 11, 2014, and the matter remains under advisement. It’s unclear when the court will issue its ruling. | |
Due to the uncertain nature of litigation, the company cannot presently determine the ultimate outcome of this litigation. However, we have determined, based on the information available at this time, that there is not presently a “reasonable possibility” (as that term is defined in ASC 450-20-20), that the outcome of these legal proceedings would have a material impact on our financial condition, results of operations, or liquidity. Although not presently necessary or appropriate to make a dollar estimate of exposure to loss, if any, in connection with the above matter, we may in the future determine that a loss accrual is necessary. Although we may make loss accruals, if and as warranted, any amounts that we may accrue from time to time could vary significantly from the amounts we actually pay, due to inherent uncertainties and the inherent shortcomings of the estimation process, the uncertainties involved in litigation and other factors. Additionally, an adverse result could have a material effect on our financial condition, results of operations and liquidity. | |
Segment_Information
Segment Information | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Segment Information | ||||||||||||||||||||
Segment Information | Note 10. Segment Information | |||||||||||||||||||
The company has three reportable segments: steel operations, metals recycling and ferrous resources operations, and steel fabrication operations. Columbus is reported in the steel operations reporting segment from its September 16, 2014, acquisition date. The segment operations are described in Note 1 to the financial statements. Revenues included in the category “Other” are from subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of further processing, slitting, and sale of certain steel products, and the resale of certain secondary and excess steel products. In addition, “Other” also includes certain unallocated corporate accounts, such as the company’s senior secured credit facility, senior notes, convertible senior notes, certain other investments and certain profit sharing expenses. | ||||||||||||||||||||
The company’s operations are primarily organized and managed by operating segment. Operating segment performance and resource allocations are primarily based on operating results before income taxes. The accounting policies of the reportable segments are consistent with those described in Note 1 to the financial statements. Intra-segment sales and any related profits are eliminated in consolidation. Refer to the company’s Annual Report on Form 10-K for the year ended December 31, 2014, for more information related to the company’s segment reporting. The company’s segment results for the three months ended March 31, 2015, and 2014, are as follows (in thousands): | ||||||||||||||||||||
For the three months ended | Metals Recycling / | Steel Fabrication | ||||||||||||||||||
March 31, 2015 | Steel Operations | Ferrous Resources | Operations | Other | Eliminations | Consolidated | ||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 1,313,426 | $ | 427,411 | $ | 161,024 | $ | 22,114 | $ | — | $ | 1,923,975 | ||||||||
External Non-U.S. | 71,993 | 51,303 | — | 164 | — | 123,460 | ||||||||||||||
Other segments | 48,903 | 227,078 | 4 | 6,689 | (282,674 | ) | — | |||||||||||||
1,434,322 | 705,792 | 161,028 | 28,967 | (282,674 | ) | 2,047,435 | ||||||||||||||
Operating income (loss) | 111,540 | (17,066 | ) | 21,361 | (19,920 | )(1) | 3,856 | -2 | 99,771 | |||||||||||
Income (loss) before income taxes | 85,906 | (24,670 | ) | 19,594 | (44,194 | ) | 3,856 | 40,492 | ||||||||||||
Depreciation and amortization | 48,614 | 20,838 | 2,230 | 1,190 | (50 | ) | 72,822 | |||||||||||||
Capital expenditures | 14,686 | 17,658 | 1,037 | (30 | ) | — | 33,351 | |||||||||||||
As of March 31, 2015 | ||||||||||||||||||||
Assets | 4,130,841 | 2,022,821 | 289,814 | 481,726 | -3 | (189,364 | )(4) | 6,735,838 | ||||||||||||
Liabilities | 617,868 | 521,404 | 46,328 | 2,810,613 | -5 | (183,468 | )(6) | 3,812,745 | ||||||||||||
Footnotes related to the three months ended March 31, 2015 segment results (in millions): | ||||||||||||||||||||
(1) Corporate SG&A | $ | (9.4 | ) | |||||||||||||||||
Company-wide equity-based compensation | (5.9 | ) | ||||||||||||||||||
Profit sharing | (3.5 | ) | ||||||||||||||||||
Other, net | (1.1 | ) | ||||||||||||||||||
$ | (19.9 | ) | ||||||||||||||||||
(2) Gross profit increase from intra-company sales | $ | 3.9 | ||||||||||||||||||
(3) Cash and equivalents | $ | 136.5 | ||||||||||||||||||
Accounts receivable | 11.0 | |||||||||||||||||||
Inventories | 12.8 | |||||||||||||||||||
Deferred income taxes | 33.4 | |||||||||||||||||||
Property, plant and equipment, net | 67.9 | |||||||||||||||||||
Debt issuance costs | 37.0 | |||||||||||||||||||
Intra-company debt | 146.6 | |||||||||||||||||||
Other | 36.5 | |||||||||||||||||||
$ | 481.7 | |||||||||||||||||||
(4) Elimination of intra-company receivables | $ | (37.6 | ) | |||||||||||||||||
Elimination of intra-company debt | (146.6 | ) | ||||||||||||||||||
Other | (5.2 | ) | ||||||||||||||||||
$ | (189.4 | ) | ||||||||||||||||||
(5) Accounts payable | $ | 52.5 | ||||||||||||||||||
Income taxes payable | 5.2 | |||||||||||||||||||
Accrued interest | 51.6 | |||||||||||||||||||
Accrued profit sharing | 3.5 | |||||||||||||||||||
Debt | 2,600.1 | |||||||||||||||||||
Deferred income taxes | 77.5 | |||||||||||||||||||
Other | 20.2 | |||||||||||||||||||
$ | 2,810.6 | |||||||||||||||||||
(6) Elimination of intra-company payables | $ | (38.0 | ) | |||||||||||||||||
Elimination of intra-company debt | (146.6 | ) | ||||||||||||||||||
Other | 1.1 | |||||||||||||||||||
$ | (183.5 | ) | ||||||||||||||||||
For the three months ended | Metals Recycling / | Steel Fabrication | ||||||||||||||||||
March 31, 2014 | Steel Operations | Ferrous Resources | Operations | Other | Eliminations | Consolidated | ||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 1,061,079 | $ | 517,957 | $ | 115,861 | $ | 20,621 | $ | — | $ | 1,715,518 | ||||||||
External Non-U.S. | 56,519 | 57,817 | — | 228 | — | 114,564 | ||||||||||||||
Other segments | 43,732 | 343,928 | — | 6,673 | (394,333 | ) | — | |||||||||||||
1,161,330 | 919,702 | 115,861 | 27,522 | (394,333 | ) | 1,830,082 | ||||||||||||||
Operating income (loss) | 105,643 | (15,519 | ) | 3,126 | (16,545 | )(1) | 4,227 | -2 | 80,932 | |||||||||||
Income (loss) before income taxes | 91,998 | (22,696 | ) | 1,652 | (24,187 | ) | 4,227 | 50,994 | ||||||||||||
Depreciation and amortization | 27,377 | 26,621 | 2,222 | 1,399 | (51 | ) | 57,568 | |||||||||||||
Capital expenditures | 18,606 | 5,779 | 311 | 145 | — | 24,841 | ||||||||||||||
As of March 31, 2014 | ||||||||||||||||||||
Assets | 2,731,246 | 2,537,892 | 263,688 | 609,206 | -3 | (228,175 | )(4) | 5,913,857 | ||||||||||||
Liabilities | 576,643 | 613,611 | 17,022 | 2,290,332 | -5 | (218,081 | )(6) | 3,279,527 | ||||||||||||
Footnotes related to the three months ended March 31, 2014 segment results (in millions): | ||||||||||||||||||||
(1) Corporate SG&A | $ | (8.3 | ) | |||||||||||||||||
Company-wide equity-based compensation | (4.6 | ) | ||||||||||||||||||
Profit sharing | (4.7 | ) | ||||||||||||||||||
Other, net | 1.1 | |||||||||||||||||||
$ | (16.5 | ) | ||||||||||||||||||
(2) Gross profit increase from intra-company sales | $ | 4.2 | ||||||||||||||||||
(3) Cash and equivalents | $ | 285.6 | ||||||||||||||||||
Accounts receivable | 12.3 | |||||||||||||||||||
Inventories | 13.5 | |||||||||||||||||||
Deferred income taxes | 17.8 | |||||||||||||||||||
Property, plant and equipment, net | 71.6 | |||||||||||||||||||
Debt issuance costs | 24.4 | |||||||||||||||||||
Intra-company debt | 153.8 | |||||||||||||||||||
Other | 30.2 | |||||||||||||||||||
$ | 609.2 | |||||||||||||||||||
(4) Elimination of intra-company receivables | $ | (65.1 | ) | |||||||||||||||||
Elimination of intra-company debt | (153.8 | ) | ||||||||||||||||||
Other | (9.3 | ) | ||||||||||||||||||
$ | (228.2 | ) | ||||||||||||||||||
(5) Accounts payable | $ | 44.1 | ||||||||||||||||||
Income taxes payable | 23.5 | |||||||||||||||||||
Accrued interest | 21.7 | |||||||||||||||||||
Accrued profit sharing | 4.8 | |||||||||||||||||||
Debt | 2,031.4 | |||||||||||||||||||
Deferred income taxes | 138.0 | |||||||||||||||||||
Other | 26.8 | |||||||||||||||||||
$ | 2,290.3 | |||||||||||||||||||
(6) Elimination of intra-company payables | $ | (65.5 | ) | |||||||||||||||||
Elimination of intra-company debt | (153.8 | ) | ||||||||||||||||||
Other | 1.2 | |||||||||||||||||||
$ | (218.1 | ) | ||||||||||||||||||
Condensed_Consolidating_Inform
Condensed Consolidating Information | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Condensed Consolidating Information | |||||||||||||||||
Condensed Consolidating Information | |||||||||||||||||
Note 11. Condensed Consolidating Information | |||||||||||||||||
Certain 100%-owned subsidiaries of SDI have fully and unconditionally guaranteed all of the indebtedness relating to the issuance of the company’s senior unsecured notes due 2019, 2021, 2022, 2023 and 2024. Following are the company’s condensed consolidating financial statements, including the guarantors, which present the financial position, results of operations, and cash flows of (i) SDI (in each case, reflecting investments in its consolidated subsidiaries under the equity method of accounting), (ii) the guarantor subsidiaries of SDI, which includes Columbus since acquired on September 16, 2014, (iii) the non-guarantor subsidiaries of SDI, and (iv) the eliminations necessary to arrive at the information on a consolidated basis. The following statements should be read in conjunction with the accompanying consolidated financial statements and the company’s Annual Report on Form 10-K for the year ended December 31, 2014. | |||||||||||||||||
Condensed Consolidating Balance Sheets (in thousands) | |||||||||||||||||
Combined | Consolidating | Total | |||||||||||||||
As of March 31, 2015 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Cash and equivalents | $ | 130,541 | $ | 17,058 | $ | 13,383 | $ | — | $ | 160,982 | |||||||
Accounts receivable, net | 258,508 | 1,129,116 | 24,017 | (641,900 | ) | 769,741 | |||||||||||
Inventories | 611,529 | 759,470 | 82,347 | (104 | ) | 1,453,242 | |||||||||||
Other current assets | 72,189 | 9,213 | 5,243 | (18,385 | ) | 68,260 | |||||||||||
Total current assets | 1,072,767 | 1,914,857 | 124,990 | (660,389 | ) | 2,452,225 | |||||||||||
Property, plant and equipment, net | 989,601 | 1,796,992 | 301,158 | (2,164 | ) | 3,085,587 | |||||||||||
Intangible assets, net | — | 364,620 | — | — | 364,620 | ||||||||||||
Goodwill | — | 743,528 | — | — | 743,528 | ||||||||||||
Other assets, including investments in subs | 3,745,496 | 23,871 | 6,524 | (3,686,013 | ) | 89,878 | |||||||||||
Total assets | $ | 5,807,864 | $ | 4,843,868 | $ | 432,672 | $ | (4,348,566 | ) | $ | 6,735,838 | ||||||
Accounts payable | $ | 117,240 | $ | 262,723 | $ | 89,959 | $ | (92,960 | ) | $ | 376,962 | ||||||
Accrued expenses | 133,295 | 149,157 | 7,649 | (79,456 | ) | 210,645 | |||||||||||
Current maturities of long-term debt | 13,085 | 795 | 57,997 | (41,150 | ) | 30,727 | |||||||||||
Total current liabilities | 263,620 | 412,675 | 155,605 | (213,566 | ) | 618,334 | |||||||||||
Long-term debt | 2,589,085 | 224 | 167,621 | (133,486 | ) | 2,623,444 | |||||||||||
Other liabilities | 37,082 | 1,655,611 | 31,706 | (1,153,432 | ) | 570,967 | |||||||||||
Redeemable noncontrolling interests | — | — | 126,340 | — | 126,340 | ||||||||||||
Common stock | 635 | 1,727,860 | 18,121 | (1,745,981 | ) | 635 | |||||||||||
Treasury stock | (396,517 | ) | — | — | — | (396,517 | ) | ||||||||||
Additional paid-in-capital | 1,088,605 | 117,737 | 635,335 | (753,072 | ) | 1,088,605 | |||||||||||
Retained earnings (deficit) | 2,225,354 | 929,761 | (580,732 | ) | (349,029 | ) | 2,225,354 | ||||||||||
Total Steel Dynamics, Inc. equity | 2,918,077 | 2,775,358 | 72,724 | (2,848,082 | ) | 2,918,077 | |||||||||||
Noncontrolling interests | — | — | (121,324 | ) | — | (121,324 | ) | ||||||||||
Total equity | 2,918,077 | 2,775,358 | (48,600 | ) | (2,848,082 | ) | 2,796,753 | ||||||||||
Total liabilities and equity | $ | 5,807,864 | $ | 4,843,868 | $ | 432,672 | $ | (4,348,566 | ) | $ | 6,735,838 | ||||||
Condensed Consolidating Balance Sheets (in thousands) | |||||||||||||||||
Combined | Consolidating | Total | |||||||||||||||
As of December 31, 2014 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Cash and equivalents | $ | 265,313 | $ | 81,690 | $ | 14,360 | $ | — | $ | 361,363 | |||||||
Accounts receivable, net | 321,493 | 1,176,849 | 44,696 | (640,213 | ) | 902,825 | |||||||||||
Inventories | 662,970 | 862,796 | 94,916 | (2,263 | ) | 1,618,419 | |||||||||||
Other current assets | 94,634 | 8,416 | 6,577 | (18,469 | ) | 91,158 | |||||||||||
Total current assets | 1,344,410 | 2,129,751 | 160,549 | (660,945 | ) | 2,973,765 | |||||||||||
Property, plant and equipment, net | 1,002,407 | 1,826,208 | 297,505 | (2,214 | ) | 3,123,906 | |||||||||||
Intangible assets, net | — | 370,669 | — | — | 370,669 | ||||||||||||
Goodwill | — | 745,158 | — | — | 745,158 | ||||||||||||
Other assets, including investments in subs | 3,900,691 | 24,810 | 6,635 | (3,834,607 | ) | 97,529 | |||||||||||
Total assets | $ | 6,247,508 | $ | 5,096,596 | $ | 464,689 | $ | (4,497,766 | ) | $ | 7,311,027 | ||||||
Accounts payable | $ | 151,517 | $ | 371,037 | $ | 98,886 | $ | (110,384 | ) | $ | 511,056 | ||||||
Accrued expenses | 191,433 | 166,101 | 11,695 | (76,163 | ) | 293,066 | |||||||||||
Current maturities of long-term debt | 13,073 | 777 | 73,767 | (41,157 | ) | 46,460 | |||||||||||
Total current liabilities | 356,023 | 537,915 | 184,348 | (227,704 | ) | 850,582 | |||||||||||
Long-term debt | 2,942,360 | 624 | 158,665 | (123,943 | ) | 2,977,706 | |||||||||||
Other liabilities | 36,110 | 1,807,989 | 28,719 | (1,311,946 | ) | 560,872 | |||||||||||
Redeemable noncontrolling interests | — | — | 126,340 | — | 126,340 | ||||||||||||
Common stock | 635 | 1,727,859 | 18,121 | (1,745,980 | ) | 635 | |||||||||||
Treasury stock | (398,898 | ) | — | — | — | (398,898 | ) | ||||||||||
Additional paid-in-capital | 1,083,435 | 117,737 | 635,156 | (752,893 | ) | 1,083,435 | |||||||||||
Retained earnings (deficit) | 2,227,843 | 904,472 | (569,172 | ) | (335,300 | ) | 2,227,843 | ||||||||||
Total Steel Dynamics, Inc. equity | 2,913,015 | 2,750,068 | 84,105 | (2,834,173 | ) | 2,913,015 | |||||||||||
Noncontrolling interests | — | — | (117,488 | ) | — | (117,488 | ) | ||||||||||
Total equity | 2,913,015 | 2,750,068 | (33,383 | ) | (2,834,173 | ) | 2,795,527 | ||||||||||
Total liabilities and equity | $ | 6,247,508 | $ | 5,096,596 | $ | 464,689 | $ | (4,497,766 | ) | $ | 7,311,027 | ||||||
Condensed Consolidating Statements of Operations (in thousands) | |||||||||||||||||
For the three months ended, | Combined | Consolidating | Total | ||||||||||||||
March 31, 2015 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net sales | $ | 798,718 | $ | 2,191,009 | $ | 104,573 | $ | (1,046,865 | ) | $ | 2,047,435 | ||||||
Costs of goods sold | 693,575 | 2,072,125 | 118,781 | (1,024,088 | ) | 1,860,393 | |||||||||||
Gross profit (loss) | 105,143 | 118,884 | (14,208 | ) | (22,777 | ) | 187,042 | ||||||||||
Selling, general and administrative | 30,743 | 58,033 | 3,365 | (4,870 | ) | 87,271 | |||||||||||
Operating income (loss) | 74,400 | 60,851 | (17,573 | ) | (17,907 | ) | 99,771 | ||||||||||
Interest expense, net of capitalized interest | 20,537 | 21,840 | 1,734 | (1,024 | ) | 43,087 | |||||||||||
Other (income) expense, net | 15,652 | 688 | (1,172 | ) | 1,024 | 16,192 | |||||||||||
Income (loss) before income taxes and equity in net loss of subsidiaries | 38,211 | 38,323 | (18,135 | ) | (17,907 | ) | 40,492 | ||||||||||
Income taxes (benefit) | 6,941 | 13,034 | (1,116 | ) | (5,321 | ) | 13,538 | ||||||||||
31,270 | 25,289 | (17,019 | ) | (12,586 | ) | 26,954 | |||||||||||
Equity in net loss of subsidiaries | (509 | ) | — | — | 509 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 3,807 | — | 3,807 | ||||||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ | 30,761 | $ | 25,289 | $ | (13,212 | ) | $ | (12,077 | ) | $ | 30,761 | |||||
For the three months ended, | Combined | Consolidating | Total | ||||||||||||||
March 31, 2014 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net sales | $ | 863,563 | $ | 2,112,389 | $ | 105,849 | $ | (1,251,719 | ) | $ | 1,830,082 | ||||||
Costs of goods sold | 761,395 | 2,015,576 | 123,573 | (1,233,766 | ) | 1,666,778 | |||||||||||
Gross profit (loss) | 102,168 | 96,813 | (17,724 | ) | (17,953 | ) | 163,304 | ||||||||||
Selling, general and administrative | 28,834 | 54,289 | 3,408 | (4,159 | ) | 82,372 | |||||||||||
Operating income (loss) | 73,334 | 42,524 | (21,132 | ) | (13,794 | ) | 80,932 | ||||||||||
Interest expense, net of capitalized interest | 19,361 | 10,561 | 1,880 | (1,233 | ) | 30,569 | |||||||||||
Other (income) expense, net | (976 | ) | 395 | (1,284 | ) | 1,234 | (631 | ) | |||||||||
Income (loss) before income taxes and equity in net income of subsidiaries | 54,949 | 31,568 | (21,728 | ) | (13,795 | ) | 50,994 | ||||||||||
Income taxes (benefit) | 9,925 | 10,942 | 696 | (4,267 | ) | 17,296 | |||||||||||
45,024 | 20,626 | (22,424 | ) | (9,528 | ) | 33,698 | |||||||||||
Equity in net loss of subsidiaries | (6,445 | ) | — | — | 6,445 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 4,881 | — | 4,881 | ||||||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ | 38,579 | $ | 20,626 | $ | (17,543 | ) | $ | (3,083 | ) | $ | 38,579 | |||||
Condensed Consolidating Statements of Cash Flows (in thousands) | |||||||||||||||||
For the three months ended, | Combined | Consolidating | Total | ||||||||||||||
March 31, 2015 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net cash provided by operating activities | $ | 102,678 | $ | 114,451 | $ | 9,456 | $ | 8,122 | $ | 234,707 | |||||||
Net cash used in investing activities | (18,547 | ) | (12,949 | ) | (9,727 | ) | 9,535 | (31,688 | ) | ||||||||
Net cash used in financing activities | (218,903 | ) | (166,134 | ) | (706 | ) | (17,657 | ) | (403,400 | ) | |||||||
Decrease in cash and equivalents | (134,772 | ) | (64,632 | ) | (977 | ) | — | (200,381 | ) | ||||||||
Cash and equivalents at beginning of period | 265,313 | 81,690 | 14,360 | — | 361,363 | ||||||||||||
Cash and equivalents at end of period | $ | 130,541 | $ | 17,058 | $ | 13,383 | $ | — | $ | 160,982 | |||||||
For the three months ended, | Combined | Consolidating | Total | ||||||||||||||
March 31, 2014 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net cash provided by (used in) operating activities | $ | 9,027 | $ | (17,195 | ) | $ | (14,149 | ) | $ | (4,930 | ) | $ | (27,247 | ) | |||
Net cash provided by (used in) investing activities | (12,430 | ) | (3,997 | ) | (1,625 | ) | 22,095 | 4,043 | |||||||||
Net cash provided by (used in) financing activities | (36,087 | ) | 8,115 | 16,104 | (17,165 | ) | (29,033 | ) | |||||||||
Increase (decrease) in cash and equivalents | (39,490 | ) | (13,077 | ) | 330 | — | (52,237 | ) | |||||||||
Cash and equivalents at beginning of period | 320,866 | 61,148 | 13,142 | — | 395,156 | ||||||||||||
Cash and equivalents at end of period | $ | 281,376 | $ | 48,071 | $ | 13,472 | $ | — | $ | 342,919 | |||||||
Description_of_the_Business_an1
Description of the Business and Significant Accounting Policies (Policies) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, 2014. | ||||||||
Goodwill | Goodwill. The company’s goodwill is allocated to the following reporting units at March 31, 2015, and December 31, 2014, (in thousands): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
OmniSource — Metals Recycling/Ferrous Resources Segment | $ | 455,097 | $ | 456,727 | ||||
The Techs — Steel Segment | 142,783 | 142,783 | ||||||
Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division — Metals Recycling/Ferrous Resources Segment | 95,000 | 95,000 | ||||||
Roanoke Bar Division — Steel Segment | 29,041 | 29,041 | ||||||
Columbus Flat Roll Division — Steel Segment | 19,682 | 19,682 | ||||||
New Millennium Building Systems — Fabrication Segment | 1,925 | 1,925 | ||||||
$ | 743,528 | $ | 745,158 | |||||
OmniSource goodwill decreased $1.6 million from December 31, 2014 to March 31, 2015, in recognition of the 2015 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 core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Because the guidance in ASC 606 is principles-based, it can be applied to all contracts with customers regardless of industry-specific or transaction-specific fact patterns. Additionally, ASC 606 requires additional disclosures to help users of financial statements better understand the nature, amount, timing, and potential uncertainty of revenue that is recognized. This guidance is effective for annual and interim periods ending after December 15, 2016. The company is currently evaluating the impact of the provisions of ASC 606. | ||||||||
In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements — Going Concern (Subtopic 205-40: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern), effective for annual and interim periods ending after December 15, 2016. ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. There are required disclosures if principal conditions or events are identified that raised substantial doubt about the entity’s ability to continue as a going concern (before consideration of management’s plans), as well as management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that alleviated substantial doubt about the entity’s ability to continue as a going concern. This ASU is not expected to have any impact on our overall results of operations, financial position or cash flows. | ||||||||
In April 2015, the FASB issued ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30) — Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented as a deduction from the corresponding debt liability, rather than as a separate asset, which is the current accounting method of the company. Implementation of this new guidance is required by the company in the first quarter of 2016, but can be early adopted. Upon adoption, the company must apply the new guidance retrospectively to all prior periods presented in the financial statements. The company is currently evaluating when and the manner in which to adopt the presentation and disclosure requirements of the new guidance. This ASU is not expected to have any impact on our overall results of operations, equity or cash flows as previously reported. | ||||||||
Description_of_the_Business_an2
Description of the Business and Significant Accounting Policies (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Description of the Business and Significant Accounting Policies | ||||||||
Schedule of allocation of goodwill to reporting units | Goodwill. The company’s goodwill is allocated to the following reporting units at March 31, 2015, and December 31, 2014, (in thousands): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
OmniSource — Metals Recycling/Ferrous Resources Segment | $ | 455,097 | $ | 456,727 | ||||
The Techs — Steel Segment | 142,783 | 142,783 | ||||||
Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division — Metals Recycling/Ferrous Resources Segment | 95,000 | 95,000 | ||||||
Roanoke Bar Division — Steel Segment | 29,041 | 29,041 | ||||||
Columbus Flat Roll Division — Steel Segment | 19,682 | 19,682 | ||||||
New Millennium Building Systems — Fabrication Segment | 1,925 | 1,925 | ||||||
$ | 743,528 | $ | 745,158 | |||||
Acquisition_Tables
Acquisition (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Acquisition | |||||
Schedule of unaudited pro forma information | The following unaudited pro forma information is presented below for comparison purposes as if the Columbus acquisition was completed as of January 1, 2013, (in thousands): | ||||
Three Months Ended | |||||
March 31, 2014 | |||||
Net sales | $ | 2,358,273 | |||
Net income attributable to Steel Dynamics, Inc. | 63,065 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
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 the three months ended March 31, 2015 and 2014 (in thousands, except per share data): | |||||||||||||||||
2015 | 2014 | |||||||||||||||||
Net Income | Shares | Per Share | Net Income | Shares | Per Share | |||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | |||||||||||||
Basic earnings per share | $ | 30,761 | 241,535 | $ | 0.13 | $ | 38,579 | 223,011 | $ | 0.17 | ||||||||
Dilutive common share equivalents | — | 1,332 | — | 1,608 | ||||||||||||||
5.125% Convertible Senior Notes, net of tax | — | — | 2,358 | 16,775 | ||||||||||||||
Diluted earnings per share | $ | 30,761 | 242,867 | $ | 0.13 | $ | 40,937 | 241,394 | $ | 0.17 | ||||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Inventories | ||||||||
Schedule of inventories | Inventory consisted of the following (in thousands): | |||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Raw materials | $ | 677,346 | $ | 764,883 | ||||
Supplies | 381,695 | 374,599 | ||||||
Work in progress | 100,408 | 128,882 | ||||||
Finished goods | 293,793 | 350,055 | ||||||
$ | 1,453,242 | $ | 1,618,419 | |||||
Changes_in_Equity_Tables
Changes in Equity (Tables) | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Shareholders' 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, 2015 | $ | 635 | $ | 1,083,435 | $ | 2,227,843 | $ | (398,898 | ) | $ | (117,488 | ) | $ | 2,795,527 | $ | 126,340 | |||||||
Proceeds from the exercise of stock options, including related tax effect | — | 1,752 | — | — | — | 1,752 | — | ||||||||||||||||
Dividends declared | — | — | (33,232 | ) | — | — | (33,232 | ) | — | ||||||||||||||
Distributions to noncontrolling investors | — | — | — | — | (29 | ) | (29 | ) | — | ||||||||||||||
Equity-based compensation | — | 3,418 | (18 | ) | 2,381 | — | 5,781 | — | |||||||||||||||
Comprehensive and net income (loss) | — | — | 30,761 | — | (3,807 | ) | 26,954 | — | |||||||||||||||
Balances at March 31, 2015 | $ | 635 | $ | 1,088,605 | $ | 2,225,354 | $ | (396,517 | ) | $ | (121,324 | ) | $ | 2,796,753 | $ | 126,340 | |||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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 March 31, 2015 (MT represents metric tons and Lbs represents pounds): | |||||||||||||||||||
Commodity Futures | Long/Short | Total | ||||||||||||||||||
Aluminum | Long | 3,825 | MT | |||||||||||||||||
Aluminum | Short | 4,175 | MT | |||||||||||||||||
Copper | Long | 6,267 | MT | |||||||||||||||||
Copper | Short | 16,561 | 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 March 31, 2015, and December 31, 2014, and gains and losses related to derivatives included in the company’s statement of income for the three-month periods ended March 31, 2015, and 2014 (in thousands): | |||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||
Balance sheet location | March 31, 2015 | December 31, | March 31, 2015 | December 31, | ||||||||||||||||
2014 | 2014 | |||||||||||||||||||
Derivative instruments designated as fair value hedges - | ||||||||||||||||||||
Commodity futures | Other current assets | $ | 688 | $ | 3,180 | $ | 2,734 | $ | 913 | |||||||||||
Derivative instruments not designated as hedges - | ||||||||||||||||||||
Commodity futures | Other current assets | 1,216 | 2,132 | 1,762 | 626 | |||||||||||||||
Total derivative instruments | $ | 1,904 | $ | 5,312 | $ | 4,496 | $ | 1,539 | ||||||||||||
Location of gain | Amount of gain (loss) | Hedged items | Location of gain | Amount of gain (loss) | ||||||||||||||||
(loss) recognized | recognized in income on | (loss) recognized | recognized in income on | |||||||||||||||||
derivatives for the three | related hedged items for | |||||||||||||||||||
months ended | the three months ended | |||||||||||||||||||
in income on | March 31, | March 31, | in fair value hedge | in income on | March 31, | March 31, | ||||||||||||||
derivatives | 2015 | 2014 | relationships | derivatives | 2015 | 2014 | ||||||||||||||
Derivatives in fair value hedging relationships - | ||||||||||||||||||||
Commodity futures | Costs of goods sold | $ | (4,313 | ) | $ | 1,617 | Firm commitments | Costs of goods sold | $ | 494 | $ | 984 | ||||||||
Inventory | Costs of goods sold | 2,656 | (2,488 | ) | ||||||||||||||||
$ | 3,150 | $ | (1,504 | ) | ||||||||||||||||
Derivatives not designated as hedging instruments - | ||||||||||||||||||||
Commodity futures | Costs of goods sold | $ | 6,996 | $ | 7,956 | |||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Fair Value Measurements | ||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table sets forth financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheet and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of March 31, 2015, and December 31, 2014 (in thousands): | |||||||||||||
Total | Quoted Prices in | Significant | Significant | |||||||||||
Active Markets | Other | Unobservable | ||||||||||||
for Identical | Observable | Inputs | ||||||||||||
Assets | Inputs | (Level 3) | ||||||||||||
(Level 1) | (Level 2) | |||||||||||||
March 31, 2015 | ||||||||||||||
Commodity futures — financial assets | $ | 1,904 | $ | — | $ | 1,904 | $ | — | ||||||
Commodity futures — financial liabilities | 4,496 | — | 4,496 | — | ||||||||||
December 31, 2014 | ||||||||||||||
Commodity futures — financial assets | $ | 5,312 | $ | — | $ | 5,312 | $ | — | ||||||
Commodity futures — financial liabilities | 1,539 | — | 1,539 | — | ||||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Segment Information | ||||||||||||||||||||
Schedule of operating segment results | ||||||||||||||||||||
The company’s segment results for the three months ended March 31, 2015, and 2014, are as follows (in thousands): | ||||||||||||||||||||
For the three months ended | Metals Recycling / | Steel Fabrication | ||||||||||||||||||
March 31, 2015 | Steel Operations | Ferrous Resources | Operations | Other | Eliminations | Consolidated | ||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 1,313,426 | $ | 427,411 | $ | 161,024 | $ | 22,114 | $ | — | $ | 1,923,975 | ||||||||
External Non-U.S. | 71,993 | 51,303 | — | 164 | — | 123,460 | ||||||||||||||
Other segments | 48,903 | 227,078 | 4 | 6,689 | (282,674 | ) | — | |||||||||||||
1,434,322 | 705,792 | 161,028 | 28,967 | (282,674 | ) | 2,047,435 | ||||||||||||||
Operating income (loss) | 111,540 | (17,066 | ) | 21,361 | (19,920 | )(1) | 3,856 | -2 | 99,771 | |||||||||||
Income (loss) before income taxes | 85,906 | (24,670 | ) | 19,594 | (44,194 | ) | 3,856 | 40,492 | ||||||||||||
Depreciation and amortization | 48,614 | 20,838 | 2,230 | 1,190 | (50 | ) | 72,822 | |||||||||||||
Capital expenditures | 14,686 | 17,658 | 1,037 | (30 | ) | — | 33,351 | |||||||||||||
As of March 31, 2015 | ||||||||||||||||||||
Assets | 4,130,841 | 2,022,821 | 289,814 | 481,726 | -3 | (189,364 | )(4) | 6,735,838 | ||||||||||||
Liabilities | 617,868 | 521,404 | 46,328 | 2,810,613 | -5 | (183,468 | )(6) | 3,812,745 | ||||||||||||
Footnotes related to the three months ended March 31, 2015 segment results (in millions): | ||||||||||||||||||||
(1) Corporate SG&A | $ | (9.4 | ) | |||||||||||||||||
Company-wide equity-based compensation | (5.9 | ) | ||||||||||||||||||
Profit sharing | (3.5 | ) | ||||||||||||||||||
Other, net | (1.1 | ) | ||||||||||||||||||
$ | (19.9 | ) | ||||||||||||||||||
(2) Gross profit increase from intra-company sales | $ | 3.9 | ||||||||||||||||||
(3) Cash and equivalents | $ | 136.5 | ||||||||||||||||||
Accounts receivable | 11.0 | |||||||||||||||||||
Inventories | 12.8 | |||||||||||||||||||
Deferred income taxes | 33.4 | |||||||||||||||||||
Property, plant and equipment, net | 67.9 | |||||||||||||||||||
Debt issuance costs | 37.0 | |||||||||||||||||||
Intra-company debt | 146.6 | |||||||||||||||||||
Other | 36.5 | |||||||||||||||||||
$ | 481.7 | |||||||||||||||||||
(4) Elimination of intra-company receivables | $ | (37.6 | ) | |||||||||||||||||
Elimination of intra-company debt | (146.6 | ) | ||||||||||||||||||
Other | (5.2 | ) | ||||||||||||||||||
$ | (189.4 | ) | ||||||||||||||||||
(5) Accounts payable | $ | 52.5 | ||||||||||||||||||
Income taxes payable | 5.2 | |||||||||||||||||||
Accrued interest | 51.6 | |||||||||||||||||||
Accrued profit sharing | 3.5 | |||||||||||||||||||
Debt | 2,600.1 | |||||||||||||||||||
Deferred income taxes | 77.5 | |||||||||||||||||||
Other | 20.2 | |||||||||||||||||||
$ | 2,810.6 | |||||||||||||||||||
(6) Elimination of intra-company payables | $ | (38.0 | ) | |||||||||||||||||
Elimination of intra-company debt | (146.6 | ) | ||||||||||||||||||
Other | 1.1 | |||||||||||||||||||
$ | (183.5 | ) | ||||||||||||||||||
For the three months ended | Metals Recycling / | Steel Fabrication | ||||||||||||||||||
March 31, 2014 | Steel Operations | Ferrous Resources | Operations | Other | Eliminations | Consolidated | ||||||||||||||
Net Sales | ||||||||||||||||||||
External | $ | 1,061,079 | $ | 517,957 | $ | 115,861 | $ | 20,621 | $ | — | $ | 1,715,518 | ||||||||
External Non-U.S. | 56,519 | 57,817 | — | 228 | — | 114,564 | ||||||||||||||
Other segments | 43,732 | 343,928 | — | 6,673 | (394,333 | ) | — | |||||||||||||
1,161,330 | 919,702 | 115,861 | 27,522 | (394,333 | ) | 1,830,082 | ||||||||||||||
Operating income (loss) | 105,643 | (15,519 | ) | 3,126 | (16,545 | )(1) | 4,227 | -2 | 80,932 | |||||||||||
Income (loss) before income taxes | 91,998 | (22,696 | ) | 1,652 | (24,187 | ) | 4,227 | 50,994 | ||||||||||||
Depreciation and amortization | 27,377 | 26,621 | 2,222 | 1,399 | (51 | ) | 57,568 | |||||||||||||
Capital expenditures | 18,606 | 5,779 | 311 | 145 | — | 24,841 | ||||||||||||||
As of March 31, 2014 | ||||||||||||||||||||
Assets | 2,731,246 | 2,537,892 | 263,688 | 609,206 | -3 | (228,175 | )(4) | 5,913,857 | ||||||||||||
Liabilities | 576,643 | 613,611 | 17,022 | 2,290,332 | -5 | (218,081 | )(6) | 3,279,527 | ||||||||||||
Footnotes related to the three months ended March 31, 2014 segment results (in millions): | ||||||||||||||||||||
(1) Corporate SG&A | $ | (8.3 | ) | |||||||||||||||||
Company-wide equity-based compensation | (4.6 | ) | ||||||||||||||||||
Profit sharing | (4.7 | ) | ||||||||||||||||||
Other, net | 1.1 | |||||||||||||||||||
$ | (16.5 | ) | ||||||||||||||||||
(2) Gross profit increase from intra-company sales | $ | 4.2 | ||||||||||||||||||
(3) Cash and equivalents | $ | 285.6 | ||||||||||||||||||
Accounts receivable | 12.3 | |||||||||||||||||||
Inventories | 13.5 | |||||||||||||||||||
Deferred income taxes | 17.8 | |||||||||||||||||||
Property, plant and equipment, net | 71.6 | |||||||||||||||||||
Debt issuance costs | 24.4 | |||||||||||||||||||
Intra-company debt | 153.8 | |||||||||||||||||||
Other | 30.2 | |||||||||||||||||||
$ | 609.2 | |||||||||||||||||||
(4) Elimination of intra-company receivables | $ | (65.1 | ) | |||||||||||||||||
Elimination of intra-company debt | (153.8 | ) | ||||||||||||||||||
Other | (9.3 | ) | ||||||||||||||||||
$ | (228.2 | ) | ||||||||||||||||||
(5) Accounts payable | $ | 44.1 | ||||||||||||||||||
Income taxes payable | 23.5 | |||||||||||||||||||
Accrued interest | 21.7 | |||||||||||||||||||
Accrued profit sharing | 4.8 | |||||||||||||||||||
Debt | 2,031.4 | |||||||||||||||||||
Deferred income taxes | 138.0 | |||||||||||||||||||
Other | 26.8 | |||||||||||||||||||
$ | 2,290.3 | |||||||||||||||||||
(6) Elimination of intra-company payables | $ | (65.5 | ) | |||||||||||||||||
Elimination of intra-company debt | (153.8 | ) | ||||||||||||||||||
Other | 1.2 | |||||||||||||||||||
$ | (218.1 | ) | ||||||||||||||||||
Condensed_Consolidating_Inform1
Condensed Consolidating Information (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Condensed Consolidating Information | |||||||||||||||||
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets (in thousands) | ||||||||||||||||
Combined | Consolidating | Total | |||||||||||||||
As of March 31, 2015 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Cash and equivalents | $ | 130,541 | $ | 17,058 | $ | 13,383 | $ | — | $ | 160,982 | |||||||
Accounts receivable, net | 258,508 | 1,129,116 | 24,017 | (641,900 | ) | 769,741 | |||||||||||
Inventories | 611,529 | 759,470 | 82,347 | (104 | ) | 1,453,242 | |||||||||||
Other current assets | 72,189 | 9,213 | 5,243 | (18,385 | ) | 68,260 | |||||||||||
Total current assets | 1,072,767 | 1,914,857 | 124,990 | (660,389 | ) | 2,452,225 | |||||||||||
Property, plant and equipment, net | 989,601 | 1,796,992 | 301,158 | (2,164 | ) | 3,085,587 | |||||||||||
Intangible assets, net | — | 364,620 | — | — | 364,620 | ||||||||||||
Goodwill | — | 743,528 | — | — | 743,528 | ||||||||||||
Other assets, including investments in subs | 3,745,496 | 23,871 | 6,524 | (3,686,013 | ) | 89,878 | |||||||||||
Total assets | $ | 5,807,864 | $ | 4,843,868 | $ | 432,672 | $ | (4,348,566 | ) | $ | 6,735,838 | ||||||
Accounts payable | $ | 117,240 | $ | 262,723 | $ | 89,959 | $ | (92,960 | ) | $ | 376,962 | ||||||
Accrued expenses | 133,295 | 149,157 | 7,649 | (79,456 | ) | 210,645 | |||||||||||
Current maturities of long-term debt | 13,085 | 795 | 57,997 | (41,150 | ) | 30,727 | |||||||||||
Total current liabilities | 263,620 | 412,675 | 155,605 | (213,566 | ) | 618,334 | |||||||||||
Long-term debt | 2,589,085 | 224 | 167,621 | (133,486 | ) | 2,623,444 | |||||||||||
Other liabilities | 37,082 | 1,655,611 | 31,706 | (1,153,432 | ) | 570,967 | |||||||||||
Redeemable noncontrolling interests | — | — | 126,340 | — | 126,340 | ||||||||||||
Common stock | 635 | 1,727,860 | 18,121 | (1,745,981 | ) | 635 | |||||||||||
Treasury stock | (396,517 | ) | — | — | — | (396,517 | ) | ||||||||||
Additional paid-in-capital | 1,088,605 | 117,737 | 635,335 | (753,072 | ) | 1,088,605 | |||||||||||
Retained earnings (deficit) | 2,225,354 | 929,761 | (580,732 | ) | (349,029 | ) | 2,225,354 | ||||||||||
Total Steel Dynamics, Inc. equity | 2,918,077 | 2,775,358 | 72,724 | (2,848,082 | ) | 2,918,077 | |||||||||||
Noncontrolling interests | — | — | (121,324 | ) | — | (121,324 | ) | ||||||||||
Total equity | 2,918,077 | 2,775,358 | (48,600 | ) | (2,848,082 | ) | 2,796,753 | ||||||||||
Total liabilities and equity | $ | 5,807,864 | $ | 4,843,868 | $ | 432,672 | $ | (4,348,566 | ) | $ | 6,735,838 | ||||||
Condensed Consolidating Balance Sheets (in thousands) | |||||||||||||||||
Combined | Consolidating | Total | |||||||||||||||
As of December 31, 2014 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Cash and equivalents | $ | 265,313 | $ | 81,690 | $ | 14,360 | $ | — | $ | 361,363 | |||||||
Accounts receivable, net | 321,493 | 1,176,849 | 44,696 | (640,213 | ) | 902,825 | |||||||||||
Inventories | 662,970 | 862,796 | 94,916 | (2,263 | ) | 1,618,419 | |||||||||||
Other current assets | 94,634 | 8,416 | 6,577 | (18,469 | ) | 91,158 | |||||||||||
Total current assets | 1,344,410 | 2,129,751 | 160,549 | (660,945 | ) | 2,973,765 | |||||||||||
Property, plant and equipment, net | 1,002,407 | 1,826,208 | 297,505 | (2,214 | ) | 3,123,906 | |||||||||||
Intangible assets, net | — | 370,669 | — | — | 370,669 | ||||||||||||
Goodwill | — | 745,158 | — | — | 745,158 | ||||||||||||
Other assets, including investments in subs | 3,900,691 | 24,810 | 6,635 | (3,834,607 | ) | 97,529 | |||||||||||
Total assets | $ | 6,247,508 | $ | 5,096,596 | $ | 464,689 | $ | (4,497,766 | ) | $ | 7,311,027 | ||||||
Accounts payable | $ | 151,517 | $ | 371,037 | $ | 98,886 | $ | (110,384 | ) | $ | 511,056 | ||||||
Accrued expenses | 191,433 | 166,101 | 11,695 | (76,163 | ) | 293,066 | |||||||||||
Current maturities of long-term debt | 13,073 | 777 | 73,767 | (41,157 | ) | 46,460 | |||||||||||
Total current liabilities | 356,023 | 537,915 | 184,348 | (227,704 | ) | 850,582 | |||||||||||
Long-term debt | 2,942,360 | 624 | 158,665 | (123,943 | ) | 2,977,706 | |||||||||||
Other liabilities | 36,110 | 1,807,989 | 28,719 | (1,311,946 | ) | 560,872 | |||||||||||
Redeemable noncontrolling interests | — | — | 126,340 | — | 126,340 | ||||||||||||
Common stock | 635 | 1,727,859 | 18,121 | (1,745,980 | ) | 635 | |||||||||||
Treasury stock | (398,898 | ) | — | — | — | (398,898 | ) | ||||||||||
Additional paid-in-capital | 1,083,435 | 117,737 | 635,156 | (752,893 | ) | 1,083,435 | |||||||||||
Retained earnings (deficit) | 2,227,843 | 904,472 | (569,172 | ) | (335,300 | ) | 2,227,843 | ||||||||||
Total Steel Dynamics, Inc. equity | 2,913,015 | 2,750,068 | 84,105 | (2,834,173 | ) | 2,913,015 | |||||||||||
Noncontrolling interests | — | — | (117,488 | ) | — | (117,488 | ) | ||||||||||
Total equity | 2,913,015 | 2,750,068 | (33,383 | ) | (2,834,173 | ) | 2,795,527 | ||||||||||
Total liabilities and equity | $ | 6,247,508 | $ | 5,096,596 | $ | 464,689 | $ | (4,497,766 | ) | $ | 7,311,027 | ||||||
Schedule of Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations (in thousands) | ||||||||||||||||
For the three months ended, | Combined | Consolidating | Total | ||||||||||||||
March 31, 2015 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net sales | $ | 798,718 | $ | 2,191,009 | $ | 104,573 | $ | (1,046,865 | ) | $ | 2,047,435 | ||||||
Costs of goods sold | 693,575 | 2,072,125 | 118,781 | (1,024,088 | ) | 1,860,393 | |||||||||||
Gross profit (loss) | 105,143 | 118,884 | (14,208 | ) | (22,777 | ) | 187,042 | ||||||||||
Selling, general and administrative | 30,743 | 58,033 | 3,365 | (4,870 | ) | 87,271 | |||||||||||
Operating income (loss) | 74,400 | 60,851 | (17,573 | ) | (17,907 | ) | 99,771 | ||||||||||
Interest expense, net of capitalized interest | 20,537 | 21,840 | 1,734 | (1,024 | ) | 43,087 | |||||||||||
Other (income) expense, net | 15,652 | 688 | (1,172 | ) | 1,024 | 16,192 | |||||||||||
Income (loss) before income taxes and equity in net loss of subsidiaries | 38,211 | 38,323 | (18,135 | ) | (17,907 | ) | 40,492 | ||||||||||
Income taxes (benefit) | 6,941 | 13,034 | (1,116 | ) | (5,321 | ) | 13,538 | ||||||||||
31,270 | 25,289 | (17,019 | ) | (12,586 | ) | 26,954 | |||||||||||
Equity in net loss of subsidiaries | (509 | ) | — | — | 509 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 3,807 | — | 3,807 | ||||||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ | 30,761 | $ | 25,289 | $ | (13,212 | ) | $ | (12,077 | ) | $ | 30,761 | |||||
For the three months ended, | Combined | Consolidating | Total | ||||||||||||||
March 31, 2014 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net sales | $ | 863,563 | $ | 2,112,389 | $ | 105,849 | $ | (1,251,719 | ) | $ | 1,830,082 | ||||||
Costs of goods sold | 761,395 | 2,015,576 | 123,573 | (1,233,766 | ) | 1,666,778 | |||||||||||
Gross profit (loss) | 102,168 | 96,813 | (17,724 | ) | (17,953 | ) | 163,304 | ||||||||||
Selling, general and administrative | 28,834 | 54,289 | 3,408 | (4,159 | ) | 82,372 | |||||||||||
Operating income (loss) | 73,334 | 42,524 | (21,132 | ) | (13,794 | ) | 80,932 | ||||||||||
Interest expense, net of capitalized interest | 19,361 | 10,561 | 1,880 | (1,233 | ) | 30,569 | |||||||||||
Other (income) expense, net | (976 | ) | 395 | (1,284 | ) | 1,234 | (631 | ) | |||||||||
Income (loss) before income taxes and equity in net income of subsidiaries | 54,949 | 31,568 | (21,728 | ) | (13,795 | ) | 50,994 | ||||||||||
Income taxes (benefit) | 9,925 | 10,942 | 696 | (4,267 | ) | 17,296 | |||||||||||
45,024 | 20,626 | (22,424 | ) | (9,528 | ) | 33,698 | |||||||||||
Equity in net loss of subsidiaries | (6,445 | ) | — | — | 6,445 | — | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 4,881 | — | 4,881 | ||||||||||||
Net income (loss) attributable to Steel Dynamics, Inc. | $ | 38,579 | $ | 20,626 | $ | (17,543 | ) | $ | (3,083 | ) | $ | 38,579 | |||||
Schedule of Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows (in thousands) | ||||||||||||||||
For the three months ended, | Combined | Consolidating | Total | ||||||||||||||
March 31, 2015 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net cash provided by operating activities | $ | 102,678 | $ | 114,451 | $ | 9,456 | $ | 8,122 | $ | 234,707 | |||||||
Net cash used in investing activities | (18,547 | ) | (12,949 | ) | (9,727 | ) | 9,535 | (31,688 | ) | ||||||||
Net cash used in financing activities | (218,903 | ) | (166,134 | ) | (706 | ) | (17,657 | ) | (403,400 | ) | |||||||
Decrease in cash and equivalents | (134,772 | ) | (64,632 | ) | (977 | ) | — | (200,381 | ) | ||||||||
Cash and equivalents at beginning of period | 265,313 | 81,690 | 14,360 | — | 361,363 | ||||||||||||
Cash and equivalents at end of period | $ | 130,541 | $ | 17,058 | $ | 13,383 | $ | — | $ | 160,982 | |||||||
For the three months ended, | Combined | Consolidating | Total | ||||||||||||||
March 31, 2014 | Parent | Guarantors | Non-Guarantors | Adjustments | Consolidated | ||||||||||||
Net cash provided by (used in) operating activities | $ | 9,027 | $ | (17,195 | ) | $ | (14,149 | ) | $ | (4,930 | ) | $ | (27,247 | ) | |||
Net cash provided by (used in) investing activities | (12,430 | ) | (3,997 | ) | (1,625 | ) | 22,095 | 4,043 | |||||||||
Net cash provided by (used in) financing activities | (36,087 | ) | 8,115 | 16,104 | (17,165 | ) | (29,033 | ) | |||||||||
Increase (decrease) in cash and equivalents | (39,490 | ) | (13,077 | ) | 330 | — | (52,237 | ) | |||||||||
Cash and equivalents at beginning of period | 320,866 | 61,148 | 13,142 | — | 395,156 | ||||||||||||
Cash and equivalents at end of period | $ | 281,376 | $ | 48,071 | $ | 13,472 | $ | — | $ | 342,919 | |||||||
Description_of_the_Business_an3
Description of the Business and Significant Accounting Policies (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
facility | ||
Description of the Business and Significant Accounting Policies | ||
Number of reporting segments | 3 | |
Steel Operations | ||
Segment Reporting Information | ||
Percentage of external net sales | 68.00% | 61.00% |
Number of downstream finishing facilities | 8 | |
Metals Recycling/Ferrous Resources | ||
Segment Reporting Information | ||
Percentage of external net sales | 23.00% | 32.00% |
Number of ironmaking initiatives | 2 | |
Steel Fabrication Operations | ||
Segment Reporting Information | ||
Percentage of external net sales | 8.00% | 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 $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Goodwill | ||
Goodwill | $743,528,000 | $745,158,000 |
Omni Source | ||
Goodwill | ||
Goodwill decrease due to tax benefit related to the amortization of the component | 1,600,000 | |
Metals Recycling/Ferrous Resources | Omni Source | ||
Goodwill | ||
Goodwill | 455,097,000 | 456,727,000 |
Metals Recycling/Ferrous Resources | Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division | ||
Goodwill | ||
Goodwill | 95,000,000 | 95,000,000 |
Steel Operations | The Techs Operations | ||
Goodwill | ||
Goodwill | 142,783,000 | 142,783,000 |
Steel Operations | Roanoke Bar Division | ||
Goodwill | ||
Goodwill | 29,041,000 | 29,041,000 |
Steel Operations | Columbus Flat Roll Division | ||
Goodwill | ||
Goodwill | 19,682,000 | 19,682,000 |
Steel Fabrication Operations | New Millennium Building Systems | ||
Goodwill | ||
Goodwill | $1,925,000 | $1,925,000 |
Acquisition_Details
Acquisition (Details) (Severstal Columbus LLC, USD $) | 0 Months Ended | 3 Months Ended | |
Sep. 16, 2014 | Mar. 31, 2014 | Sep. 16, 2014 | |
MT | |||
Business Acquisition Information | |||
Business acquisition percentage | 100.00% | 100.00% | |
Purchase price | $1,625,000,000 | ||
Working capital adjustments | 44,400,000 | ||
Additional production capacity due to acquisition (in million tons) | 3.4 | ||
Unaudited pro forma results | |||
Net sales | 2,358,273,000 | ||
Net Income attributable to Steel Dynamics, Inc. | 63,065,000 | ||
Senior Notes | |||
Business Acquisition Information | |||
Issuance of Senior Notes | $1,200,000,000 | 1,200,000,000 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Income (Numerator) | ||
Basic earnings per share - net income (in dollars) | $30,761 | $38,579 |
5.125% convertible senior notes, net of tax (in dollars) | 2,358 | |
Diluted earnings per share - net income (in dollars) | $30,761 | $40,937 |
Weighted average common shares outstanding (in shares) | ||
Weighted average common shares outstanding (in shares) | 241,535,000 | 223,011,000 |
Dilutive common share equivalents (in shares) | 1,332,000 | 1,608,000 |
5.125% convertible senior notes, net of tax (in shares) | 16,775,000 | |
Weighted average common shares outstanding - diluted (in shares) | 242,867,000 | 241,394,000 |
Per Share Amount | ||
Basic (in dollars per share) | $0.13 | $0.17 |
Diluted (in dollars per share) | $0.13 | $0.17 |
Options | ||
Antidilutive securities excluded from computation of earnings per share amount | ||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 0 | 0 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventories | ||
Raw materials | $677,346 | $764,883 |
Supplies | 381,695 | 374,599 |
Work in progress | 100,408 | 128,882 |
Finished goods | 293,793 | 350,055 |
Total inventories | $1,453,242 | $1,618,419 |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 16, 2015 | |
Long Term Debt | |||
Repayments of debt | $427,451,000 | $56,246,000 | |
Senior Notes | |||
Long Term Debt | |||
Repayments of debt | 350,000,000 | ||
Stated interest rate (as a percent) | 7.63% | ||
Redemption price of debt instrument (as a percent) | 103.81% | ||
Associated premiums and related expenses recorded | $16,700,000 |
Changes_in_Equity_Details
Changes in Equity (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Increase (Decrease) in Equity | |||
Balances | $2,795,527 | ||
Proceeds from exercise of stock options, including related tax effect | 1,752 | ||
Dividends declared | -33,232 | ||
Distributions to noncontrolling investors | -29 | ||
Equity-based compensation | 5,781 | ||
Comprehensive income (loss) | 26,954 | ||
Net income (loss) | 26,954 | 33,698 | |
Balances | 2,796,753 | ||
Common Stock | |||
Increase (Decrease) in Equity | |||
Balances | 635 | ||
Balances | 635 | 635 | |
Additional Paid-in Capital | |||
Increase (Decrease) in Equity | |||
Balances | 1,083,435 | ||
Proceeds from exercise of stock options, including related tax effect | 1,752 | ||
Equity-based compensation | 3,418 | ||
Balances | 1,088,605 | ||
Retained Earnings | |||
Increase (Decrease) in Equity | |||
Balances | 2,227,843 | ||
Dividends declared | -33,232 | ||
Equity-based compensation | -18 | ||
Comprehensive income (loss) | 30,761 | ||
Net income (loss) | 30,761 | ||
Balances | 2,225,354 | ||
Treasury Stock | |||
Increase (Decrease) in Equity | |||
Balances | -398,898 | ||
Equity-based compensation | 2,381 | ||
Balances | -396,517 | ||
Noncontrolling Interests | |||
Increase (Decrease) in Equity | |||
Balances | -117,488 | ||
Distributions to noncontrolling investors | -29 | ||
Comprehensive income (loss) | -3,807 | ||
Net income (loss) | -3,807 | ||
Balances | -121,324 | ||
Redeemable Noncontrolling Interest | |||
Increase (Decrease) in Equity | |||
Balances | 126,340 | ||
Balances | $126,340 | $126,340 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Designated as hedging instrument | |||
Gains or losses on derivative instruments, statement of income | |||
Amount of gain (loss) recognized in income on related hedged items | $3,150,000 | ($1,504,000) | |
Futures | Aluminum | Long | |||
Commodity contract commitments | |||
Commodity contract (in MT/Lbs) | 3,825 | ||
Futures | Aluminum | Short | |||
Commodity contract commitments | |||
Commodity contract (in MT/Lbs) | 4,175 | ||
Futures | Copper | Long | |||
Commodity contract commitments | |||
Commodity contract (in MT/Lbs) | 6,267 | ||
Futures | Copper | Short | |||
Commodity contract commitments | |||
Commodity contract (in MT/Lbs) | 16,561 | ||
Futures | Silver | Short | |||
Commodity contract commitments | |||
Commodity contract (in MT/Lbs) | 343 | ||
Commodity contract | Futures | |||
Fair values of derivative instruments, balance sheet | |||
Commodity futures, asset derivatives (in dollars) | 1,904,000 | 5,312,000 | |
Commodity futures, liability derivatives (in dollars) | 4,496,000 | 1,539,000 | |
Commodity contract | Futures | Other current assets | |||
Fair values of derivative instruments, balance sheet | |||
Fair value of derivatives including required margin deposits | 7,700,000 | 7,600,000 | |
Commodity contract | Futures | Designated as hedging instrument | |||
Gains or losses on derivative instruments, statement of income | |||
Ineffectiveness - amount of gain recognized in income on related hedged items | 107,000 | 296,000 | |
Loss excluded from hedge effectiveness testing | 1,300,000 | 183,000 | |
Commodity contract | Futures | Designated as hedging instrument | Cost of goods sold | |||
Gains or losses on derivative instruments, statement of income | |||
Amount of gain (loss) recognized in income on derivatives | -4,313,000 | 1,617,000 | |
Commodity contract | Futures | Designated as hedging instrument | Other current assets | |||
Fair values of derivative instruments, balance sheet | |||
Commodity futures, asset derivatives (in dollars) | 688,000 | 3,180,000 | |
Commodity futures, liability derivatives (in dollars) | 2,734,000 | 913,000 | |
Commodity contract | Futures | Not designated as hedging instrument | Cost of goods sold | |||
Gains or losses on derivative instruments, statement of income | |||
Amount of gain (loss) recognized in income on derivatives | 6,996,000 | 7,956,000 | |
Commodity contract | Futures | Not designated as hedging instrument | Other current assets | |||
Fair values of derivative instruments, balance sheet | |||
Commodity futures, asset derivatives (in dollars) | 1,216,000 | 2,132,000 | |
Commodity futures, liability derivatives (in dollars) | 1,762,000 | 626,000 | |
Firm commitments | Designated as hedging instrument | Cost of goods sold | |||
Gains or losses on derivative instruments, statement of income | |||
Amount of gain (loss) recognized in income on related hedged items | 494,000 | 984,000 | |
Inventory | Designated as hedging instrument | Cost of goods sold | |||
Gains or losses on derivative instruments, statement of income | |||
Amount of gain (loss) recognized in income on related hedged items | $2,656,000 | ($2,488,000) |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Assets and liabilities subject to fair value measurements | ||
Outstanding Balance | $2,700,000,000 | $3,000,000,000 |
Commodity contract | Futures | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 1,904,000 | 5,312,000 |
Commodity futures - financial liabilities | 4,496,000 | 1,539,000 |
Recurring | Level 2 | ||
Assets and liabilities subject to fair value measurements | ||
Fair value of long-term debt, including current maturities | 2,700,000,000 | 3,100,000,000 |
Recurring | Level 2 | Commodity contract | Futures | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 1,904,000 | 5,312,000 |
Commodity futures - financial liabilities | 4,496,000 | 1,539,000 |
Recurring | Total | Commodity contract | Futures | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 1,904,000 | 5,312,000 |
Commodity futures - financial liabilities | $4,496,000 | $1,539,000 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
segment | |||
Segment Information | |||
Number of reporting segments | 3 | ||
Segment Reporting Information | |||
Total net sales | $2,047,435 | $1,830,082 | |
Operating income (loss) | 99,771 | 80,932 | |
Income (loss) before income taxes | 40,492 | 50,994 | |
Depreciation and amortization | 72,822 | 57,568 | |
Capital expenditures | 33,351 | 24,841 | |
Assets | 6,735,838 | 5,913,857 | 7,311,027 |
Liabilities | 3,812,745 | 3,279,527 | |
U.S. | |||
Segment Reporting Information | |||
Total net sales | 1,923,975 | 1,715,518 | |
Non-U.S. | |||
Segment Reporting Information | |||
Total net sales | 123,460 | 114,564 | |
Steel Operations | |||
Segment Reporting Information | |||
Capital expenditures | 14,686 | 18,606 | |
Metals Recycling/Ferrous Resources | |||
Segment Reporting Information | |||
Capital expenditures | 17,658 | 5,779 | |
Steel Fabrication Operations | |||
Segment Reporting Information | |||
Capital expenditures | 1,037 | 311 | |
Other. | |||
Segment Reporting Information | |||
Capital expenditures | -30 | 145 | |
Operating Segment | |||
Segment Reporting Information | |||
Total net sales | 2,047,435 | 1,830,082 | |
Operating Segment | Steel Operations | |||
Segment Reporting Information | |||
Total net sales | 1,434,322 | 1,161,330 | |
Operating income (loss) | 111,540 | 105,643 | |
Income (loss) before income taxes | 85,906 | 91,998 | |
Depreciation and amortization | 48,614 | 27,377 | |
Assets | 4,130,841 | 2,731,246 | |
Liabilities | 617,868 | 576,643 | |
Operating Segment | Steel Operations | Other segments | |||
Segment Reporting Information | |||
Total net sales | 48,903 | 43,732 | |
Operating Segment | Steel Operations | U.S. | |||
Segment Reporting Information | |||
Total net sales | 1,313,426 | 1,061,079 | |
Operating Segment | Steel Operations | Non-U.S. | |||
Segment Reporting Information | |||
Total net sales | 71,993 | 56,519 | |
Operating Segment | Metals Recycling/Ferrous Resources | |||
Segment Reporting Information | |||
Total net sales | 705,792 | 919,702 | |
Operating income (loss) | -17,066 | -15,519 | |
Income (loss) before income taxes | -24,670 | -22,696 | |
Depreciation and amortization | 20,838 | 26,621 | |
Assets | 2,022,821 | 2,537,892 | |
Liabilities | 521,404 | 613,611 | |
Operating Segment | Metals Recycling/Ferrous Resources | Other segments | |||
Segment Reporting Information | |||
Total net sales | 227,078 | 343,928 | |
Operating Segment | Metals Recycling/Ferrous Resources | U.S. | |||
Segment Reporting Information | |||
Total net sales | 427,411 | 517,957 | |
Operating Segment | Metals Recycling/Ferrous Resources | Non-U.S. | |||
Segment Reporting Information | |||
Total net sales | 51,303 | 57,817 | |
Operating Segment | Steel Fabrication Operations | |||
Segment Reporting Information | |||
Total net sales | 161,028 | 115,861 | |
Operating income (loss) | 21,361 | 3,126 | |
Income (loss) before income taxes | 19,594 | 1,652 | |
Depreciation and amortization | 2,230 | 2,222 | |
Assets | 289,814 | 263,688 | |
Liabilities | 46,328 | 17,022 | |
Operating Segment | Steel Fabrication Operations | Other segments | |||
Segment Reporting Information | |||
Total net sales | 4 | ||
Operating Segment | Steel Fabrication Operations | U.S. | |||
Segment Reporting Information | |||
Total net sales | 161,024 | 115,861 | |
Operating Segment | Other. | |||
Segment Reporting Information | |||
Total net sales | 28,967 | 27,522 | |
Operating income (loss) | -19,920 | -16,545 | |
Income (loss) before income taxes | -44,194 | -24,187 | |
Depreciation and amortization | 1,190 | 1,399 | |
Assets | 481,726 | 609,206 | |
Liabilities | 2,810,613 | 2,290,332 | |
Operating Segment | Other. | Other segments | |||
Segment Reporting Information | |||
Total net sales | 6,689 | 6,673 | |
Operating Segment | Other. | U.S. | |||
Segment Reporting Information | |||
Total net sales | 22,114 | 20,621 | |
Operating Segment | Other. | Non-U.S. | |||
Segment Reporting Information | |||
Total net sales | 164 | 228 | |
Eliminations | |||
Segment Reporting Information | |||
Total net sales | -282,674 | -394,333 | |
Operating income (loss) | 3,856 | 4,227 | |
Income (loss) before income taxes | 3,856 | 4,227 | |
Depreciation and amortization | -50 | -51 | |
Assets | -189,364 | -228,175 | |
Liabilities | -183,468 | -218,081 | |
Eliminations | Other segments | |||
Segment Reporting Information | |||
Total net sales | ($282,674) | ($394,333) |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating income (loss) | ||||
Corporate SG & A | ($76,350,000) | ($70,042,000) | ||
Profit sharing | -4,598,000 | -5,395,000 | ||
Operating income | 99,771,000 | 80,932,000 | ||
Assets | ||||
Cash and equivalents | 160,982,000 | 342,919,000 | 361,363,000 | 395,156,000 |
Accounts receivable | 741,309,000 | 859,835,000 | ||
Inventories | 1,453,242,000 | 1,618,419,000 | ||
Deferred income taxes | 33,414,000 | 35,503,000 | ||
Property, plant and equipment, net | 3,085,587,000 | 3,123,906,000 | ||
Other | 89,878,000 | 97,529,000 | ||
Total assets | 6,735,838,000 | 5,913,857,000 | 7,311,027,000 | |
Liabilities | ||||
Accounts payable | 376,962,000 | 511,056,000 | ||
Income taxes payable | 5,116,000 | 6,086,000 | ||
Accrued interest | 51,800,000 | 50,405,000 | ||
Debt | 2,700,000,000 | 3,000,000,000 | ||
Deferred income taxes | 555,031,000 | 542,033,000 | ||
Liabilities | 3,812,745,000 | 3,279,527,000 | ||
Operating Segment | Other. | ||||
Operating income (loss) | ||||
Corporate SG & A | -9,400,000 | -8,300,000 | ||
Company-wide equity- based compensation | -5,900,000 | -4,600,000 | ||
Profit sharing | -3,500,000 | -4,700,000 | ||
Other, net | -1,100,000 | 1,100,000 | ||
Operating income | -19,920,000 | -16,545,000 | ||
Assets | ||||
Cash and equivalents | 136,500,000 | 285,600,000 | ||
Accounts receivable | 11,000,000 | 12,300,000 | ||
Inventories | 12,800,000 | 13,500,000 | ||
Deferred income taxes | 33,400,000 | 17,800,000 | ||
Property, plant and equipment, net | 67,900,000 | 71,600,000 | ||
Debt issuance costs, net | 37,000,000 | 24,400,000 | ||
Intra-company debt | 146,600,000 | 153,800,000 | ||
Other | 36,500,000 | 30,200,000 | ||
Total assets | 481,726,000 | 609,206,000 | ||
Liabilities | ||||
Accounts payable | 52,500,000 | 44,100,000 | ||
Income taxes payable | 5,200,000 | 23,500,000 | ||
Accrued interest | 51,600,000 | 21,700,000 | ||
Accrued profit sharing | 3,500,000 | 4,800,000 | ||
Debt | 2,600,100,000 | 2,031,400,000 | ||
Deferred income taxes | 77,500,000 | 138,000,000 | ||
Other | 20,200,000 | 26,800,000 | ||
Liabilities | $2,810,613,000 | $2,290,332,000 |
Segment_Information_Details_3
Segment Information (Details 3) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Operating income (loss) | |||
Gross profit increase from intra-company sales | $187,042,000 | $163,304,000 | |
Assets elimination | |||
Elimination of intra-company receivables | 769,741,000 | 902,825,000 | |
Other | 89,878,000 | 97,529,000 | |
Total assets | 6,735,838,000 | 5,913,857,000 | 7,311,027,000 |
Liabilities elimination | |||
Elimination of intra-company payables | 376,962,000 | 511,056,000 | |
Liabilities | 3,812,745,000 | 3,279,527,000 | |
Eliminations | |||
Operating income (loss) | |||
Gross profit increase from intra-company sales | 3,900,000 | 4,200,000 | |
Assets elimination | |||
Elimination of intra-company receivables | -37,600,000 | -65,100,000 | |
Elimination of intra-company debt | -146,600,000 | -153,800,000 | |
Other | -5,200,000 | -9,300,000 | |
Total assets | -189,364,000 | -228,175,000 | |
Liabilities elimination | |||
Elimination of intra-company payables | -38,000,000 | -65,500,000 | |
Elimination of intra-company debt | -146,600,000 | -153,800,000 | |
Other | 1,100,000 | 1,200,000 | |
Liabilities | ($183,468,000) | ($218,081,000) |
Condensed_Consolidating_Inform2
Condensed Consolidating Information (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Condensed Consolidating Balance Sheets | ||||
Ownership interest in subsidiaries (as a percent) | 100.00% | |||
Cash and equivalents | $160,982 | $361,363 | $342,919 | $395,156 |
Accounts receivable, net | 769,741 | 902,825 | ||
Inventories | 1,453,242 | 1,618,419 | ||
Other current assets | 68,260 | 91,158 | ||
Total current assets | 2,452,225 | 2,973,765 | ||
Property, plant and equipment, net | 3,085,587 | 3,123,906 | ||
Intangible assets, net | 364,620 | 370,669 | ||
Goodwill | 743,528 | 745,158 | ||
Other assets, including investments in subs | 89,878 | 97,529 | ||
Total assets | 6,735,838 | 7,311,027 | 5,913,857 | |
Accounts payable | 376,962 | 511,056 | ||
Accrued expenses | 210,645 | 293,066 | ||
Current maturities of long-term debt | 30,727 | 46,460 | ||
Total current liabilities | 618,334 | 850,582 | ||
Long-term debt | 2,623,444 | 2,977,706 | ||
Other liabilities | 570,967 | 560,872 | ||
Redeemable noncontrolling interests | 126,340 | 126,340 | ||
Common stock | 635 | 635 | ||
Treasury stock | -396,517 | -398,898 | ||
Additional paid-in capital | 1,088,605 | 1,083,435 | ||
Retained earnings (deficit) | 2,225,354 | 2,227,843 | ||
Total Steel Dynamics, Inc. equity | 2,918,077 | 2,913,015 | ||
Noncontrolling interests | -121,324 | -117,488 | ||
Total equity | 2,796,753 | 2,795,527 | ||
Total liabilities and equity | 6,735,838 | 7,311,027 | ||
Reportable legal entity | Parent | ||||
Condensed Consolidating Balance Sheets | ||||
Cash and equivalents | 130,541 | 265,313 | 281,376 | 320,866 |
Accounts receivable, net | 258,508 | 321,493 | ||
Inventories | 611,529 | 662,970 | ||
Other current assets | 72,189 | 94,634 | ||
Total current assets | 1,072,767 | 1,344,410 | ||
Property, plant and equipment, net | 989,601 | 1,002,407 | ||
Other assets, including investments in subs | 3,745,496 | 3,900,691 | ||
Total assets | 5,807,864 | 6,247,508 | ||
Accounts payable | 117,240 | 151,517 | ||
Accrued expenses | 133,295 | 191,433 | ||
Current maturities of long-term debt | 13,085 | 13,073 | ||
Total current liabilities | 263,620 | 356,023 | ||
Long-term debt | 2,589,085 | 2,942,360 | ||
Other liabilities | 37,082 | 36,110 | ||
Common stock | 635 | 635 | ||
Treasury stock | -396,517 | -398,898 | ||
Additional paid-in capital | 1,088,605 | 1,083,435 | ||
Retained earnings (deficit) | 2,225,354 | 2,227,843 | ||
Total Steel Dynamics, Inc. equity | 2,918,077 | 2,913,015 | ||
Total equity | 2,918,077 | 2,913,015 | ||
Total liabilities and equity | 5,807,864 | 6,247,508 | ||
Reportable legal entity | Guarantors | ||||
Condensed Consolidating Balance Sheets | ||||
Cash and equivalents | 17,058 | 81,690 | 48,071 | 61,148 |
Accounts receivable, net | 1,129,116 | 1,176,849 | ||
Inventories | 759,470 | 862,796 | ||
Other current assets | 9,213 | 8,416 | ||
Total current assets | 1,914,857 | 2,129,751 | ||
Property, plant and equipment, net | 1,796,992 | 1,826,208 | ||
Intangible assets, net | 364,620 | 370,669 | ||
Goodwill | 743,528 | 745,158 | ||
Other assets, including investments in subs | 23,871 | 24,810 | ||
Total assets | 4,843,868 | 5,096,596 | ||
Accounts payable | 262,723 | 371,037 | ||
Accrued expenses | 149,157 | 166,101 | ||
Current maturities of long-term debt | 795 | 777 | ||
Total current liabilities | 412,675 | 537,915 | ||
Long-term debt | 224 | 624 | ||
Other liabilities | 1,655,611 | 1,807,989 | ||
Common stock | 1,727,860 | 1,727,859 | ||
Additional paid-in capital | 117,737 | 117,737 | ||
Retained earnings (deficit) | 929,761 | 904,472 | ||
Total Steel Dynamics, Inc. equity | 2,775,358 | 2,750,068 | ||
Total equity | 2,775,358 | 2,750,068 | ||
Total liabilities and equity | 4,843,868 | 5,096,596 | ||
Reportable legal entity | Combined Non-Guarantors | ||||
Condensed Consolidating Balance Sheets | ||||
Cash and equivalents | 13,383 | 14,360 | 13,472 | 13,142 |
Accounts receivable, net | 24,017 | 44,696 | ||
Inventories | 82,347 | 94,916 | ||
Other current assets | 5,243 | 6,577 | ||
Total current assets | 124,990 | 160,549 | ||
Property, plant and equipment, net | 301,158 | 297,505 | ||
Other assets, including investments in subs | 6,524 | 6,635 | ||
Total assets | 432,672 | 464,689 | ||
Accounts payable | 89,959 | 98,886 | ||
Accrued expenses | 7,649 | 11,695 | ||
Current maturities of long-term debt | 57,997 | 73,767 | ||
Total current liabilities | 155,605 | 184,348 | ||
Long-term debt | 167,621 | 158,665 | ||
Other liabilities | 31,706 | 28,719 | ||
Redeemable noncontrolling interests | 126,340 | 126,340 | ||
Common stock | 18,121 | 18,121 | ||
Additional paid-in capital | 635,335 | 635,156 | ||
Retained earnings (deficit) | -580,732 | -569,172 | ||
Total Steel Dynamics, Inc. equity | 72,724 | 84,105 | ||
Noncontrolling interests | -121,324 | -117,488 | ||
Total equity | -48,600 | -33,383 | ||
Total liabilities and equity | 432,672 | 464,689 | ||
Consolidating Adjustments | ||||
Condensed Consolidating Balance Sheets | ||||
Accounts receivable, net | -641,900 | -640,213 | ||
Inventories | -104 | -2,263 | ||
Other current assets | -18,385 | -18,469 | ||
Total current assets | -660,389 | -660,945 | ||
Property, plant and equipment, net | -2,164 | -2,214 | ||
Other assets, including investments in subs | -3,686,013 | -3,834,607 | ||
Total assets | -4,348,566 | -4,497,766 | ||
Accounts payable | -92,960 | -110,384 | ||
Accrued expenses | -79,456 | -76,163 | ||
Current maturities of long-term debt | -41,150 | -41,157 | ||
Total current liabilities | -213,566 | -227,704 | ||
Long-term debt | -133,486 | -123,943 | ||
Other liabilities | -1,153,432 | -1,311,946 | ||
Common stock | -1,745,981 | -1,745,980 | ||
Additional paid-in capital | -753,072 | -752,893 | ||
Retained earnings (deficit) | -349,029 | -335,300 | ||
Total Steel Dynamics, Inc. equity | -2,848,082 | -2,834,173 | ||
Total equity | -2,848,082 | -2,834,173 | ||
Total liabilities and equity | ($4,348,566) | ($4,497,766) |
Condensed_Consolidating_Inform3
Condensed Consolidating Information (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidating Statements of Operations | ||
Net sales | $2,047,435 | $1,830,082 |
Costs of goods sold | 1,860,393 | 1,666,778 |
Gross profit | 187,042 | 163,304 |
Selling, general and administrative | 87,271 | 82,372 |
Operating income | 99,771 | 80,932 |
Interest expense, net of capitalized interest | 43,087 | 30,569 |
Other (income) expense, net | 16,192 | -631 |
Income before income taxes | 40,492 | 50,994 |
Income taxes (benefit) | 13,538 | 17,296 |
Net income | 26,954 | 33,698 |
Net loss attributable to noncontrolling interests | 3,807 | 4,881 |
Net income attributable to Steel Dynamics, Inc. | 30,761 | 38,579 |
Reportable legal entity | Parent | ||
Condensed Consolidating Statements of Operations | ||
Net sales | 798,718 | 863,563 |
Costs of goods sold | 693,575 | 761,395 |
Gross profit | 105,143 | 102,168 |
Selling, general and administrative | 30,743 | 28,834 |
Operating income | 74,400 | 73,334 |
Interest expense, net of capitalized interest | 20,537 | 19,361 |
Other (income) expense, net | 15,652 | -976 |
Income before income taxes | 38,211 | 54,949 |
Income taxes (benefit) | 6,941 | 9,925 |
Net income | 31,270 | 45,024 |
Equity in net loss of subsidiaries | -509 | -6,445 |
Net income attributable to Steel Dynamics, Inc. | 30,761 | 38,579 |
Reportable legal entity | Guarantors | ||
Condensed Consolidating Statements of Operations | ||
Net sales | 2,191,009 | 2,112,389 |
Costs of goods sold | 2,072,125 | 2,015,576 |
Gross profit | 118,884 | 96,813 |
Selling, general and administrative | 58,033 | 54,289 |
Operating income | 60,851 | 42,524 |
Interest expense, net of capitalized interest | 21,840 | 10,561 |
Other (income) expense, net | 688 | 395 |
Income before income taxes | 38,323 | 31,568 |
Income taxes (benefit) | 13,034 | 10,942 |
Net income | 25,289 | 20,626 |
Net income attributable to Steel Dynamics, Inc. | 25,289 | 20,626 |
Reportable legal entity | Combined Non-Guarantors | ||
Condensed Consolidating Statements of Operations | ||
Net sales | 104,573 | 105,849 |
Costs of goods sold | 118,781 | 123,573 |
Gross profit | -14,208 | -17,724 |
Selling, general and administrative | 3,365 | 3,408 |
Operating income | -17,573 | -21,132 |
Interest expense, net of capitalized interest | 1,734 | 1,880 |
Other (income) expense, net | -1,172 | -1,284 |
Income before income taxes | -18,135 | -21,728 |
Income taxes (benefit) | -1,116 | 696 |
Net income | -17,019 | -22,424 |
Net loss attributable to noncontrolling interests | 3,807 | 4,881 |
Net income attributable to Steel Dynamics, Inc. | -13,212 | -17,543 |
Consolidating Adjustments | ||
Condensed Consolidating Statements of Operations | ||
Net sales | -1,046,865 | -1,251,719 |
Costs of goods sold | -1,024,088 | -1,233,766 |
Gross profit | -22,777 | -17,953 |
Selling, general and administrative | -4,870 | -4,159 |
Operating income | -17,907 | -13,794 |
Interest expense, net of capitalized interest | -1,024 | -1,233 |
Other (income) expense, net | 1,024 | 1,234 |
Income before income taxes | -17,907 | -13,795 |
Income taxes (benefit) | -5,321 | -4,267 |
Net income | -12,586 | -9,528 |
Equity in net loss of subsidiaries | 509 | 6,445 |
Net income attributable to Steel Dynamics, Inc. | ($12,077) | ($3,083) |
Condensed_Consolidating_Inform4
Condensed Consolidating Information (Details 3) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by (used in) operating activities | $234,707 | ($27,247) |
Net cash provided by (used in) investing activities | -31,688 | 4,043 |
Net cash provided by (used in) financing activities | -403,400 | -29,033 |
Decrease in cash and equivalents | -200,381 | -52,237 |
Cash and equivalents at beginning of period | 361,363 | 395,156 |
Cash and equivalents at end of period | 160,982 | 342,919 |
Reportable legal entity | Parent | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by (used in) operating activities | 100,828 | 9,027 |
Net cash provided by (used in) investing activities | -18,547 | -12,430 |
Net cash provided by (used in) financing activities | -217,053 | -36,087 |
Decrease in cash and equivalents | -134,772 | -39,490 |
Cash and equivalents at beginning of period | 265,313 | 320,866 |
Cash and equivalents at end of period | 130,541 | 281,376 |
Reportable legal entity | Guarantors | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by (used in) operating activities | 114,451 | -17,195 |
Net cash provided by (used in) investing activities | -12,949 | -3,997 |
Net cash provided by (used in) financing activities | -166,134 | 8,115 |
Decrease in cash and equivalents | -64,632 | -13,077 |
Cash and equivalents at beginning of period | 81,690 | 61,148 |
Cash and equivalents at end of period | 17,058 | 48,071 |
Reportable legal entity | Combined Non-Guarantors | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by (used in) operating activities | 9,456 | -14,149 |
Net cash provided by (used in) investing activities | -9,727 | -1,625 |
Net cash provided by (used in) financing activities | -706 | 16,104 |
Decrease in cash and equivalents | -977 | 330 |
Cash and equivalents at beginning of period | 14,360 | 13,142 |
Cash and equivalents at end of period | 13,383 | 13,472 |
Consolidating Adjustments | ||
Condensed Consolidating Statements of Cash Flows | ||
Net cash provided by (used in) operating activities | 9,972 | -4,930 |
Net cash provided by (used in) investing activities | 9,535 | 22,095 |
Net cash provided by (used in) financing activities | ($19,507) | ($17,165) |