Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 01, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | STEEL DYNAMICS INC | |
Entity Central Index Key | 1,022,671 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 243,761,301 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and equivalents | $ 1,052,666 | $ 727,032 |
Accounts receivable, net | 758,145 | 579,333 |
Accounts receivable-related parties | 35,858 | 34,272 |
Inventories | 1,175,716 | 1,149,390 |
Other current assets | 28,072 | 47,914 |
Total current assets | 3,050,457 | 2,537,941 |
Property, plant and equipment, net | 2,885,844 | 2,951,210 |
Restricted cash | 19,555 | 19,565 |
Intangible assets, net | 265,476 | 278,960 |
Goodwill | 394,275 | 397,470 |
Other assets | 14,069 | 16,936 |
Total assets | 6,629,676 | 6,202,082 |
Current liabilities | ||
Accounts payable | 450,945 | 276,725 |
Accounts payable-related parties | 10,322 | 6,630 |
Income taxes payable | 43,367 | 2,023 |
Accrued payroll and benefits | 112,625 | 94,906 |
Accrued interest | 38,540 | 38,502 |
Accrued expenses | 105,378 | 99,824 |
Current maturities of long-term debt | 18,047 | 16,680 |
Total current liabilities | 779,224 | 535,290 |
Long-term debt | 2,573,186 | 2,577,976 |
Deferred income taxes | 433,116 | 400,770 |
Other liabilities | 19,544 | 16,595 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 126,340 | 126,340 |
Equity | ||
Common stock voting, $.0025 par value; 900,000,000 shares authorized; 263,370,594, and 262,937,139 shares issued; and 243,745,023, and 243,089,514 shares outstanding, as of June 30, 2016 and December 31, 2015, respectively | 639 | 638 |
Treasury stock, at cost; 19,625,571, and 19,847,625 shares, as of June 30, 2016 and December 31, 2015, respectively | (392,050) | (396,455) |
Additional paid-in capital | 1,125,519 | 1,110,253 |
Retained earnings | 2,101,729 | 1,965,291 |
Total Steel Dynamics, Inc. equity | 2,835,837 | 2,679,727 |
Noncontrolling interests | (137,571) | (134,616) |
Total equity | 2,698,266 | 2,545,111 |
Total liabilities and equity | $ 6,629,676 | $ 6,202,082 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
CONSOLIDATED BALANCE SHEETS | ||
Common stock voting, par value (in dollars per share) | $ 0.0025 | $ 0.0025 |
Common stock voting, shares authorized (in shares) | 900,000,000 | 900,000,000 |
Common stock voting, shares issued (in shares) | 263,370,594 | 262,937,139 |
Common stock voting, shares outstanding (in shares) | 243,745,023 | 243,089,514 |
Treasury stock, shares (in shares) | 19,625,571 | 19,847,625 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net sales | ||||
Unrelated parties | $ 1,978,984 | $ 1,945,983 | $ 3,676,988 | $ 3,949,956 |
Related parties | 44,918 | 59,024 | 88,215 | 102,486 |
Total net sales | 2,023,902 | 2,005,007 | 3,765,203 | 4,052,442 |
Costs of goods sold | 1,643,519 | 1,833,264 | 3,148,784 | 3,693,657 |
Gross profit | 380,383 | 171,743 | 616,419 | 358,785 |
Selling, general and administrative expenses | 96,853 | 82,660 | 184,383 | 159,010 |
Profit sharing | 20,176 | 5,031 | 29,467 | 9,629 |
Amortization of intangible assets | 7,232 | 6,493 | 14,482 | 12,816 |
Operating income | 256,122 | 77,559 | 388,087 | 177,330 |
Interest expense, net of capitalized interest | 36,646 | 37,163 | 73,689 | 80,250 |
Other expense (income), net | (1,818) | (1,212) | (3,610) | 14,980 |
Income before income taxes | 221,294 | 41,608 | 318,008 | 82,100 |
Income taxes | 80,851 | 16,283 | 116,247 | 29,821 |
Net income | 140,443 | 25,325 | 201,761 | 52,279 |
Net loss attributable to noncontrolling interests | 1,526 | 6,225 | 2,945 | 10,032 |
Net income attributable to Steel Dynamics, Inc. | $ 141,969 | $ 31,550 | $ 204,706 | $ 62,311 |
Basic earnings per share attributable to Steel Dynamics, Inc. stockholders | $ 0.58 | $ 0.13 | $ 0.84 | $ 0.26 |
Weighted average common shares outstanding - basic (in shares) | 243,655 | 241,900 | 243,429 | 241,718 |
Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share) | $ 0.58 | $ 0.13 | $ 0.84 | $ 0.26 |
Weighted average common shares and share equivalents outstanding (in shares) | 245,392 | 243,491 | 245,000 | 243,179 |
Dividends declared per share (in dollars per share) | $ 0.1400 | $ 0.1375 | $ 0.2750 | $ 0.2750 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities: | ||||
Net income | $ 140,443 | $ 25,325 | $ 201,761 | $ 52,279 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 74,795 | 74,273 | 148,780 | 147,095 |
Equity-based compensation | 7,236 | 6,357 | 15,641 | 14,900 |
Deferred income taxes | 18,314 | 16,367 | 35,401 | 33,084 |
Loss on disposal of assets | 1,035 | 998 | 1,017 | 5,983 |
Changes in certain assets and liabilities: | ||||
Accounts receivable | (103,598) | (47,149) | (179,194) | 85,935 |
Inventories | (108,893) | 161,174 | (26,326) | 326,173 |
Other assets | 10,613 | 7,386 | 11,359 | 11,894 |
Accounts payable | 53,732 | 62,735 | 166,391 | (64,318) |
Income taxes receivable/payable | 34,388 | (6,844) | 48,381 | 9,421 |
Accrued expenses | 29,907 | 8,590 | 23,660 | (78,527) |
Net cash provided by operating activities | 157,972 | 309,212 | 446,871 | 543,919 |
Investing activities: | ||||
Purchases of property, plant and equipment | (35,686) | (22,821) | (63,394) | (56,172) |
Other investing activities | 1,206 | 806 | 4,260 | 2,469 |
Net cash used in investing activities | (34,480) | (22,015) | (59,134) | (53,703) |
Financing activities: | ||||
Issuance of current and long-term debt | 63,655 | 60,941 | 84,107 | 111,034 |
Repayment of current and long-term debt | (81,022) | (60,557) | (85,254) | (488,008) |
Debt issuance cost | (1) | (6) | ||
Proceeds from exercise of stock options, including related tax effect | 3,683 | 5,206 | 6,575 | 6,959 |
Distributions to noncontrolling investors, net | (2) | (1,135) | (10) | (1,164) |
Dividends paid | (34,090) | (33,233) | (67,515) | (60,999) |
Net cash used in financing activities | (47,777) | (28,778) | (62,103) | (432,178) |
Increase in cash and equivalents | 75,715 | 258,419 | 325,634 | 58,038 |
Cash and equivalents at beginning of period | 976,951 | 160,982 | 727,032 | 361,363 |
Cash and equivalents at end of period | 1,052,666 | 419,401 | 1,052,666 | 419,401 |
Supplemental disclosure information: | ||||
Cash paid for interest | 45,094 | 48,550 | 71,380 | 88,644 |
Cash paid (received) for federal and state income taxes, net | $ 27,565 | $ 7,046 | $ 28,264 | $ (11,493) |
Description of the Business and
Description of the Business and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Description of the Business and Significant Accounting Policies | |
Description of the Business and Significant Accounting Policies | Note 1. Description of the Business and Significant Accounting Policies Description of the Business Steel Dynamics, Inc. (SDI), together with its subsidiaries (the company), is a domestic manufacturer of steel products and metals recycler. The company has three reportable segments, consistent with how it manages the business, representing three reporting segments: steel operations, metals recycling operations, and steel fabrication operations. Steel Operations Segment. Steel operations include the company’s Butler Flat Roll Division, Columbus Flat Roll Division, The Techs galvanizing lines, Structural and Rail Division, Engineered Bar Products Division, Roanoke Bar Division, Steel of West Virginia, and Iron Dynamics (IDI), a liquid pig iron (scrap substitute) production facility that supplies solely the Butler Flat Roll Division. These operations include electric arc furnace steel mills, producing steel from ferrous scrap and scrap substitutes, utilizing continuous casting, automated rolling mills, and ten downstream coating facilities. Steel operations accounted for 72% and 69% of the company’s consolidated external net sales during the three-month periods ended June 30, 2016 and 2015, and 71% and 68% of the company’s consolidated external net sales during the six-month periods ended June 30, 2016 and 2015, respectively. Metals Recycling Operations Segment. Metals recycling operations include the company’s metals recycling processing locations, and ferrous scrap procurement operations, of OmniSource Corporation. Metals recycling operations accounted for 15% and 20% of the company’s consolidated external net sales during the three- and six-month periods ended June 30, 2016, and 2015, respectively. Steel Fabrication Operations Segment. Steel fabrication operations include the company’s eight 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 deck used within the non-residential construction industry. Steel fabrication operations accounted for approximately 8% of the company’s consolidated external net sales during the three-month periods ended June 30, 2016, and 2015, and 9% and 8% of the company’s consolidated external net sales during the six-month periods ended June 30, 2016 and 2015, respectively. Other. The “ Other” category consists of subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of our Minnesota ironmaking operations that were indefinitely idled in May 2015, and several smaller joint ventures. Also included in “Other” are certain unallocated corporate accounts, such as the company’s senior secured credit facility, senior notes, certain other investments and certain profit sharing expenses. 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 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, 2015. Goodwill . The company’s goodwill is allocated to the following reporting units at June 30, 2016, and December 31, 2015, (in thousands): June 30, December 31, 2016 2015 Metals Recycling Segment: OmniSource $ $ Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division Steel Segment: The Techs Roanoke Bar Division Columbus Flat Roll Division Fabrication Segment: New Millennium Building Systems $ $ OmniSource goodwill decreased $3.2 million from December 31, 2015 to June 30, 2016, in recognition of the 2016 tax benefit related to the normal 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 beginning after December 15, 2017, but can be early adopted for annual and interim periods ending after December 15, 2016. The company is currently evaluating the impact of the provisions of ASC 606, including the timing and method of adoption. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which requires an entity to measure inventory at the lower of cost and net realizable value, rather than at the lower of cost or market. This new guidance is effective for annual and interim periods beginning after December 15, 2016, but can be early adopted. The company is currently evaluating the impact of this ASU’s adoption. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): which establishes a new lease accounting model that requires lessees to recognize a right of use asset and related lease liability for most leases having lease terms of more than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. This new guidance is effective for annual and interim periods beginning after December 15, 2018, but can be early adopted. The company is currently evaluating the impact of the provisions of ASU 2016-02, including the timing of adoption. In March 2016, the FASB issued ASU 2016-09, Improvement to Employee Share-based Payment Accounting, which simplifies several aspects of accounting for share-based payment transactions, including recognizing excess tax benefits and deficiencies as income tax expense or benefit in the income statement and as operating activities within the statement of cash flows, and an option to recognize gross stock compensation expense with actual forfeitures recognized as incurred. This new guidance is effective for annual and interim periods beginning after December 15, 2016, but can be early adopted. The company is currently evaluating the impact of the provisions of ASU 2016-09, including the timing of adoption. |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2016 | |
Acquisition | |
Acquisition | Note 2. Acquisition On June 30, 2016, the company entered into a definitive agreement to acquire 100% of Vulcan Threaded Products, Inc. (Vulcan) for $114.0 million, inclusive of $30.0 million in working capital, which is subject to typical post-closing adjustments. The acquisition closed on August 1, 2016, with the purchase price paid in cash from available funds. Post-closing operating results of Vulcan will be reflected in the steel operations reporting segment. Vulcan is the nation’s largest manufacturer and supplier of threaded rod products, and also cold draws and heat treats steel bar. The acquisition of Vulcan is consistent with one of our target growth objectives — higher-margin downstream business opportunities that utilize our steel products in their manufacturing processes. Vulcan utilizes special-bar-quality products produced at our Engineered Bar Products Division. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
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 and deferred stock units; and are excluded from the computation in periods in which they have an anti-dilutive effect. There were no anti-dilutive common share equivalents at or for the three- and six-month periods ended June 30, 2016, and 2015. 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- and six- month periods ended June 30, 2016, and 2015 (in thousands, except per share data): Three Months Ended June 30, 2016 2015 Net Income (Numerator) Shares (Denominator) Per Share Amount Net Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per share $ $ .58 $ $ .13 Dilutive common share equivalents — — Diluted earnings per share $ $ .58 $ $ .13 Six Months Ended June 30, 2016 2015 Net Income (Numerator) Shares (Denominator) Per Share Amount Net Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per share $ $ .84 $ $ .26 Dilutive common share equivalents — — Diluted earnings per share $ $ .84 $ $ .26 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
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): June 30, December 31, 2016 2015 Raw materials $ $ Supplies Work in progress Finished goods Total inventories $ $ |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt | |
Debt | Note 5. Debt On March 16, 2015, the company called and repaid all $350.0 million of its outstanding 7 5/8% Senior Notes due 2020 (the “Notes”) at a redemption price of 103.813% of the principal amount of the Notes, plus accrued 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 | 6 Months Ended |
Jun. 30, 2016 | |
Changes in Equity | |
Changes in 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 Paid-In Retained Treasury Noncontrolling Total Redeemable Noncontrolling Stock Capital Earnings Stock Interests Equity Interests Balances at December 31, 2015 $ $ $ $ ) $ ) $ $ Exercise of stock options proceeds, including related tax effect — — — — Dividends declared — — ) — — ) — Distributions to noncontrolling investors, net — — — — ) ) — Equity-based compensation — ) — — Comprehensive and net income (loss) — — — ) — Balances at June 30, 2016 $ $ $ $ ) $ ) $ $ |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 7. Derivative Financial Instruments The company is exposed to certain risks relating to its ongoing business operations. The company utilizes derivative instruments to mitigate commodity margin risk, interest rate risk and foreign currency exchange rate 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 (primarily aluminum and copper). The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements. Commodity Futures Contracts . If the company is “long” on futures contracts, it means the company has more futures contracts purchased than futures contracts sold for the underlying commodity. If the company is “short” on a futures contract, it means the company has more futures contracts sold than futures contracts purchased for the underlying commodity. The following summarizes the company’s futures contract commitments as of June 30, 2016 (MT represents metric tons): Commodity Futures Long/Short Total Aluminum Long MT Aluminum Short MT Copper Long MT Copper Short MT The following summarizes the location and amounts of the fair values reported on the company’s balance sheets as of June 30, 2016, and December 31, 2015, and gains and losses related to derivatives included in the company’s statement of income for the three- and six- month periods ended June 30, 2016, and 2015 (in thousands): Asset Derivatives Liability Derivatives Fair Value Fair Value Balance sheet location June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Derivative instruments designated as fair value hedges - Commodity futures Other current assets $ $ $ $ Derivative instruments not designated as hedges - Commodity futures Other current assets Total derivative instruments $ $ $ $ The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements totaled $922,000 at June 30, 2016, and $3.4 million at December 31, 2015, are reflected in other current assets in the consolidated balance sheet. Location of gain (loss) recognized Amount of gain (loss) recognized in income on derivatives for the three months ended Hedged items in Location of gain (loss) recognized Amount of gain (loss) recognized in income on related hedged items for the three months ended in income on derivatives June 30, 2016 June 30, 2015 fair value hedge relationships in income on related hedged items June 30, 2016 June 30, 2015 Derivatives in fair value hedging relationships - Commodity futures Costs of goods sold $ ) $ Firm commitments Costs of goods sold $ ) $ Inventory Costs of goods sold ) $ $ ) Derivatives not designated as hedging instruments - Commodity futures Costs of goods sold $ $ ) Location of gain (loss) recognized Amount of gain (loss) recognized in income on derivatives for the six months ended Hedged items in Location of gain (loss) recognized in Amount of gain (loss) recognized in income on related hedged items for the six months ended in income on derivatives June 30, 2016 June 30, 2015 fair value hedge relationships income on related hedged items June 30, 2016 June 30, 2015 Derivatives in fair value hedging relationships - Commodity futures Costs of goods sold $ $ ) Firm commitments Costs of goods sold $ ) $ Inventory Costs of goods sold $ ) $ Derivatives not designated as hedging instruments - Commodity futures Costs of goods sold $ $ Derivatives accounted for as fair value hedges had ineffectiveness resulting in losses of $47,000 and gains of $20,000 during the three-month periods ended June 30, 2016 and 2015, respectively; and losses of $91,000 and gains of $127,000 during the six-month periods ended June 30, 2016 and 2015, respectively. Losses excluded from hedge effectiveness testing of $97,000 increased cost of goods sold during the three-month period ended June 30, 2016, and gains of $1,252,000 reduced costs of goods sold during the three-month period ended June 30, 2015. Losses of $65,000 and $18,000 increased costs of goods sold during the six-month periods ended June 30, 2016 and 2015, respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016, and December 31, 2015 (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2016 Commodity futures — financial assets $ $ — $ $ — Commodity futures — financial liabilities — — December 31, 2015 Commodity futures — financial assets $ $ — $ $ — Commodity futures — financial liabilities — — 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 $2.5 billion at June 30, 2016, and December 31, 2015, respectively, (with a corresponding carrying amount in the consolidated balance sheet of $2.6 billion at June 30, 2016, and December 31, 2015). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 9. Commitments and Contingencies The company is involved, along with two other remaining steel manufacturing company defendants, in a class action antitrust suit in federal court in Chicago, Illinois, originally against eight companies. The Complaint alleges a conspiracy on the part of the original defendants to fix, raise, maintain and stabilize the price at which steel products were sold in the United States during a specified period between 2005 and 2007, by artificially restricting the supply of such steel products. All but one of the Complaints were brought on behalf of a purported class consisting of all direct purchasers of steel products. The other Complaint was brought on behalf of a purported class consisting of all indirect purchasers of steel products within the same time period. In addition, another similar complaint was filed in December 2010 purporting to be on behalf of indirect purchasers of steel products in Tennessee. All Complaints have been consolidated in the Chicago action and seek treble damages and costs, including reasonable attorney fees, pre- and post-judgment interest and injunctive relief. Following an extensive period of discovery and related motions concerning class certification matters, the Court, on September 9, 2015, certified a class, limited, however, to the issue of the alleged conspiracy alone, and denied class certification on the issue of antitrust impact and damages. As a result, some additional discovery is ongoing. The company has also filed a motion for summary judgment, as has one co-defendant, and this matter is currently pending. Due, however, to the uncertain nature of litigation, the company cannot presently determine the ultimate outcome of this litigation. Based on the information available at this time, the company has determined 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 the Company’s 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, the company may in the future determine that a loss accrual is necessary. Although the company may make loss accruals, if and as warranted, any amounts that it may accrue from time to time could vary significantly from the amounts it actually pays, 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 the company’s financial condition, results of operations and liquidity. The company is involved in various routine litigation matters, including administrative proceedings, regulatory proceedings, governmental investigations, environmental matters, and commercial and construction contract disputes, none of which are expected to have a material impact on our financial condition, results of operations, or liquidity. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Information | |
Segment Information | Note 10. Segment Information The company’s operations are primarily organized and managed by operating segment, which are steel operations, metals recycling operations, and steel fabrication operations. The segment operations are more fully described in Note 1 to the financial statements. Operating segment performance and resource allocations are primarily based on operating results before income taxes. The accounting policies of the reportable segments are consistent with those described in Note 1 to the financial statements. Intra-segment sales and any related profits are eliminated in consolidation. Amounts included in the category “Other” are from subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of our Minnesota ironmaking operations and several small joint ventures. In addition, “Other” also includes certain unallocated corporate accounts, such as the company’s senior secured credit facility, senior notes, certain other investments and certain profit sharing expenses. The company’s segment results for the three- and six-month periods ended June 30, 2016, and 2015, each adjusted consistent with our current reportable segments presentation, are as follows (in thousands): For the three months ended Metals Recycling Steel Fabrication June 30, 2016 Steel Operations Operations Operations Other Eliminations Consolidated Net Sales External $ $ $ $ $ — $ External Non-U.S. — Other segments ) — ) Operating income (loss) )(1) )(2) Income (loss) before income taxes ) ) Depreciation and amortization ) Capital expenditures — As of June 30, 2016 Assets $ $ $ $ (3) $ )(4) $ Footnotes related to the three months ended June 30, 2016 segment results (in millions): (1) Corporate SG&A $ ) Company-wide equity-based compensation ) Profit sharing ) Minnesota ironmaking operations ) Other, net ) $ ) (2) Gross profit decrease from intra-company sales $ ) (3) Cash and equivalents $ Accounts receivable Inventories Property, plant and equipment, net Intra-company debt Other $ (4) Elimination of intra-company receivables $ ) Elimination of intra-company debt ) Other ) $ ) For the three months ended Metals Recycling Steel Fabrication June 30, 2015 Steel Operations Operations Operations Other Eliminations Consolidated Net Sales External $ $ $ $ $ — $ External Non-U.S. — — Other segments ) — ) Operating income (loss) )(1) )(2) Income (loss) before income taxes ) ) Depreciation and amortization ) Capital expenditures — As of June 30, 2015 Assets $ $ $ $ (3) $ )(4) $ Footnotes related to the three months ended June 30, 2015 segment results (in millions): (1) Corporate SG&A $ ) Company-wide equity-based compensation ) Profit sharing ) Minnesota ironmaking operations ) Other, net ) $ ) (2) Gross profit decrease from intra-company sales $ ) (3) Cash and equivalents $ Accounts receivable Inventories Property, plant and equipment, net Intra-company debt Other $ (4) Elimination of intra-company receivables $ ) Elimination of intra-company debt ) Other ) $ ) For the six months ended Metals Recycling Steel Fabrication June 30, 2016 Steel Operations Operations Operations Other Eliminations Consolidated Net Sales External $ $ $ $ $ — $ External Non-U.S. — Other segments ) — ) Operating income (loss) )(1) )(2) Income (loss) before income taxes ) ) Depreciation and amortization ) Capital expenditures — Footnotes related to the six months ended June 30, 2016 segment results (in millions): (1) Corporate SG&A $ ) Company-wide equity-based compensation ) Profit sharing ) Minnesota ironmaking operations ) Other, net ) $ ) (2) Gross profit decrease from intra-company sales $ ) For the six months ended Metals Recycling Steel Fabrication June 30, 2015 Steel Operations Operations Operations Other Eliminations Consolidated Net Sales External $ $ $ $ $ — $ External Non-U.S. — — Other segments ) — ) Operating income (loss) )(1) )(2) Income (loss) before income taxes ) ) ) Depreciation and amortization ) Capital expenditures — Footnotes related to the six months ended June 30, 2015 segment results (in millions): (1) Corporate SG&A $ ) Company-wide equity-based compensation ) Profit sharing ) Minnesota ironmaking operations ) Other, net ) $ ) (2) Gross profit decrease from intra-company sales $ ) |
Condensed Consolidating Informa
Condensed Consolidating Information | 6 Months Ended |
Jun. 30, 2016 | |
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, (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, 2015. Condensed Consolidating Balance Sheets (in thousands) Combined Consolidating Total As of June 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ $ $ $ — $ Accounts receivable, net ) Inventories ) Other current assets ) Total current assets ) Property, plant and equipment, net ) Intangible assets, net — — — Goodwill — — — Other assets, including investments in subs ) Total assets $ $ $ $ ) $ Accounts payable $ $ $ $ ) $ Accrued expenses ) Current maturities of long-term debt ) Total current liabilities ) Long-term debt — ) Other liabilities ) ) Redeemable noncontrolling interests — — — Common stock ) Treasury stock ) — — — ) Additional paid-in-capital ) Retained earnings (deficit) ) ) Total Steel Dynamics, Inc. equity ) Noncontrolling interests — — ) — ) Total equity ) ) Total liabilities and equity $ $ $ $ ) $ Combined Consolidating Total As of December 31, 2015 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ $ $ $ — $ Accounts receivable, net ) Inventories Other current assets ) Total current assets ) Property, plant and equipment, net ) Intangible assets, net — — — Goodwill — — — Other assets, including investments in subs ) Total assets $ $ $ $ ) $ Accounts payable $ $ $ $ ) $ Accrued expenses ) Current maturities of long-term debt ) Total current liabilities ) Long-term debt ) Other liabilities ) ) Redeemable noncontrolling interests — — — Common stock ) Treasury stock ) — — — ) Additional paid-in-capital ) Retained earnings (deficit) ) Total Steel Dynamics, Inc. equity ) Noncontrolling interests — — ) — ) Total equity ) ) Total liabilities and equity $ $ $ $ ) $ Condensed Consolidating Statements of Operations (in thousands) For the three months ended, Combined Consolidating Total June 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ $ $ $ ) $ Costs of goods sold ) Gross profit (loss) ) ) Selling, general and administrative ) Operating income (loss) ) ) Interest expense, net of capitalized interest ) Other (income) expense, net ) ) ) Income (loss) before income taxes and equity in net income of subsidiaries ) ) Income taxes (benefit) ) ) ) ) Equity in net income of subsidiaries — — ) — Net loss attributable to noncontrolling interests — — — Net income (loss) attributable to Steel Dynamics, Inc. $ $ $ ) $ ) $ For the three months ended, Combined Consolidating Total June 30, 2015 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ $ $ $ ) $ Costs of goods sold ) Gross profit (loss) ) ) Selling, general and administrative ) Operating income (loss) ) ) Interest expense, net of capitalized interest ) Other (income) expense, net ) ) ) ) Income (loss) before income taxes and equity in net loss of subsidiaries ) ) Income taxes (benefit) ) ) ) ) Equity in net loss of subsidiaries ) — — — Net loss attributable to noncontrolling interests — — — Net income (loss) attributable to Steel Dynamics, Inc. $ $ $ ) $ ) $ Condensed Consolidating Statements of Operations (in thousands) For the six months ended, Combined Consolidating Total June 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ $ $ $ ) $ Costs of goods sold ) Gross profit (loss) ) ) Selling, general and administrative ) Operating income (loss) ) ) Interest expense, net of capitalized interest ) Other (income) expense, net ) ) ) Income (loss) before income taxes and equity in net income of subsidiaries ) ) Income taxes (benefit) ) ) ) ) Equity in net income of subsidiaries — — ) — Net loss attributable to noncontrolling interests — — — Net income (loss) attributable to Steel Dynamics, Inc. $ $ $ ) $ ) $ For the six months ended, Combined Consolidating Total June 30, 2015 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ $ $ $ ) $ Costs of goods sold ) Gross profit (loss) ) ) Selling, general and administrative ) Operating income (loss) ) ) Interest expense, net of capitalized interest ) Other (income) expense, net ) Income (loss) before income taxes and equity in net loss of subsidiaries ) ) Income taxes (benefit) ) ) ) ) Equity in net loss of subsidiaries ) — — — Net loss attributable to noncontrolling interests — — — Net income (loss) attributable to Steel Dynamics, Inc. $ $ $ ) $ ) $ Condensed Consolidating Statements of Cash Flows (in thousands) For the six months ended, Combined Consolidating Total June 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net cash provided by (used in) operating activities $ $ $ ) $ $ Net cash used in investing activities ) ) ) ) ) Net cash provided by (used in) financing activities ) ) ) Increase in cash and equivalents — Cash and equivalents at beginning of period — Cash and equivalents at end of period $ $ $ $ — $ For the six months ended, Combined Consolidating Total June 30, 2015 Parent Guarantors Non-Guarantors Adjustments Consolidated Net cash provided by operating activities $ $ $ $ $ Net cash used in investing activities ) ) ) ) Net cash provided by (used in) financing activities ) ) ) ) Increase (decrease) in cash and equivalents ) ) — Cash and equivalents at beginning of period — Cash and equivalents at end of period $ $ $ $ — $ |
Description of the Business a17
Description of the Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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 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, 2015. |
Goodwill | Goodwill . The company’s goodwill is allocated to the following reporting units at June 30, 2016, and December 31, 2015, (in thousands): June 30, December 31, 2016 2015 Metals Recycling Segment: OmniSource $ $ Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division Steel Segment: The Techs Roanoke Bar Division Columbus Flat Roll Division Fabrication Segment: New Millennium Building Systems $ $ OmniSource goodwill decreased $3.2 million from December 31, 2015 to June 30, 2016, in recognition of the 2016 tax benefit related to the normal 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 beginning after December 15, 2017, but can be early adopted for annual and interim periods ending after December 15, 2016. The company is currently evaluating the impact of the provisions of ASC 606, including the timing and method of adoption. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which requires an entity to measure inventory at the lower of cost and net realizable value, rather than at the lower of cost or market. This new guidance is effective for annual and interim periods beginning after December 15, 2016, but can be early adopted. The company is currently evaluating the impact of this ASU’s adoption. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842): which establishes a new lease accounting model that requires lessees to recognize a right of use asset and related lease liability for most leases having lease terms of more than 12 months. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. This new guidance is effective for annual and interim periods beginning after December 15, 2018, but can be early adopted. The company is currently evaluating the impact of the provisions of ASU 2016-02, including the timing of adoption. In March 2016, the FASB issued ASU 2016-09, Improvement to Employee Share-based Payment Accounting, which simplifies several aspects of accounting for share-based payment transactions, including recognizing excess tax benefits and deficiencies as income tax expense or benefit in the income statement and as operating activities within the statement of cash flows, and an option to recognize gross stock compensation expense with actual forfeitures recognized as incurred. This new guidance is effective for annual and interim periods beginning after December 15, 2016, but can be early adopted. The company is currently evaluating the impact of the provisions of ASU 2016-09, including the timing of adoption. |
Description of the Business a18
Description of the Business and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Description of the Business and Significant Accounting Policies | |
Schedule of goodwill allocated to reporting units | The company’s goodwill is allocated to the following reporting units at June 30, 2016, and December 31, 2015, (in thousands): June 30, December 31, 2016 2015 Metals Recycling Segment: OmniSource $ $ Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division Steel Segment: The Techs Roanoke Bar Division Columbus Flat Roll Division Fabrication Segment: New Millennium Building Systems $ $ |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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- and six- month periods ended June 30, 2016, and 2015 (in thousands, except per share data): Three Months Ended June 30, 2016 2015 Net Income (Numerator) Shares (Denominator) Per Share Amount Net Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per share $ $ .58 $ $ .13 Dilutive common share equivalents — — Diluted earnings per share $ $ .58 $ $ .13 Six Months Ended June 30, 2016 2015 Net Income (Numerator) Shares (Denominator) Per Share Amount Net Income (Numerator) Shares (Denominator) Per Share Amount Basic earnings per share $ $ .84 $ $ .26 Dilutive common share equivalents — — Diluted earnings per share $ $ .84 $ $ .26 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventories | |
Schedule of inventories | Inventories are stated at lower of cost or market. Cost is determined using a weighted average cost method for scrap, and on a first-in, first-out, basis for other inventory. Inventory consisted of the following (in thousands): June 30, December 31, 2016 2015 Raw materials $ $ Supplies Work in progress Finished goods Total inventories $ $ |
Changes in Equity (Tables)
Changes in Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Changes in Equity | |
Schedule of stockholders' equity | The following table provides a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to stockholders of Steel Dynamics, Inc. and equity and redeemable amounts attributable to the noncontrolling interests (in thousands): Stockholders of Steel Dynamics, Inc. Common Additional Paid-In Retained Treasury Noncontrolling Total Redeemable Noncontrolling Stock Capital Earnings Stock Interests Equity Interests Balances at December 31, 2015 $ $ $ $ ) $ ) $ $ Exercise of stock options proceeds, including related tax effect — — — — Dividends declared — — ) — — ) — Distributions to noncontrolling investors, net — — — — ) ) — Equity-based compensation — ) — — Comprehensive and net income (loss) — — — ) — Balances at June 30, 2016 $ $ $ $ ) $ ) $ $ |
Derivative Financial Instrume22
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Financial Instruments | |
Commodity futures contract commitments for non monetary notional amount | The following summarizes the company’s futures contract commitments as of June 30, 2016 (MT represents metric tons): Commodity Futures Long/Short Total Aluminum Long MT Aluminum Short MT Copper Long MT Copper Short MT |
Summary of the location and amounts of the fair values and gains or losses related to derivatives included in the entity's financial statements | The following summarizes the location and amounts of the fair values reported on the company’s balance sheets as of June 30, 2016, and December 31, 2015, and gains and losses related to derivatives included in the company’s statement of income for the three- and six- month periods ended June 30, 2016, and 2015 (in thousands): Asset Derivatives Liability Derivatives Fair Value Fair Value Balance sheet location June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Derivative instruments designated as fair value hedges - Commodity futures Other current assets $ $ $ $ Derivative instruments not designated as hedges - Commodity futures Other current assets Total derivative instruments $ $ $ $ Location of gain (loss) recognized Amount of gain (loss) recognized in income on derivatives for the three months ended Hedged items in Location of gain (loss) recognized Amount of gain (loss) recognized in income on related hedged items for the three months ended in income on derivatives June 30, 2016 June 30, 2015 fair value hedge relationships in income on related hedged items June 30, 2016 June 30, 2015 Derivatives in fair value hedging relationships - Commodity futures Costs of goods sold $ ) $ Firm commitments Costs of goods sold $ ) $ Inventory Costs of goods sold ) $ $ ) Derivatives not designated as hedging instruments - Commodity futures Costs of goods sold $ $ ) Location of gain (loss) recognized Amount of gain (loss) recognized in income on derivatives for the six months ended Hedged items in Location of gain (loss) recognized in Amount of gain (loss) recognized in income on related hedged items for the six months ended in income on derivatives June 30, 2016 June 30, 2015 fair value hedge relationships income on related hedged items June 30, 2016 June 30, 2015 Derivatives in fair value hedging relationships - Commodity futures Costs of goods sold $ $ ) Firm commitments Costs of goods sold $ ) $ Inventory Costs of goods sold $ ) $ Derivatives not designated as hedging instruments - Commodity futures Costs of goods sold $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016, and December 31, 2015 (in thousands): Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2016 Commodity futures — financial assets $ $ — $ $ — Commodity futures — financial liabilities — — December 31, 2015 Commodity futures — financial assets $ $ — $ $ — Commodity futures — financial liabilities — — |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Information | |
Schedule of operating segment results | The company’s segment results for the three- and six-month periods ended June 30, 2016, and 2015, each adjusted consistent with our current reportable segments presentation, are as follows (in thousands): For the three months ended Metals Recycling Steel Fabrication June 30, 2016 Steel Operations Operations Operations Other Eliminations Consolidated Net Sales External $ $ $ $ $ — $ External Non-U.S. — Other segments ) — ) Operating income (loss) )(1) )(2) Income (loss) before income taxes ) ) Depreciation and amortization ) Capital expenditures — As of June 30, 2016 Assets $ $ $ $ (3) $ )(4) $ Footnotes related to the three months ended June 30, 2016 segment results (in millions): (1) Corporate SG&A $ ) Company-wide equity-based compensation ) Profit sharing ) Minnesota ironmaking operations ) Other, net ) $ ) (2) Gross profit decrease from intra-company sales $ ) (3) Cash and equivalents $ Accounts receivable Inventories Property, plant and equipment, net Intra-company debt Other $ (4) Elimination of intra-company receivables $ ) Elimination of intra-company debt ) Other ) $ ) For the three months ended Metals Recycling Steel Fabrication June 30, 2015 Steel Operations Operations Operations Other Eliminations Consolidated Net Sales External $ $ $ $ $ — $ External Non-U.S. — — Other segments ) — ) Operating income (loss) )(1) )(2) Income (loss) before income taxes ) ) Depreciation and amortization ) Capital expenditures — As of June 30, 2015 Assets $ $ $ $ (3) $ )(4) $ Footnotes related to the three months ended June 30, 2015 segment results (in millions): (1) Corporate SG&A $ ) Company-wide equity-based compensation ) Profit sharing ) Minnesota ironmaking operations ) Other, net ) $ ) (2) Gross profit decrease from intra-company sales $ ) (3) Cash and equivalents $ Accounts receivable Inventories Property, plant and equipment, net Intra-company debt Other $ (4) Elimination of intra-company receivables $ ) Elimination of intra-company debt ) Other ) $ ) For the six months ended Metals Recycling Steel Fabrication June 30, 2016 Steel Operations Operations Operations Other Eliminations Consolidated Net Sales External $ $ $ $ $ — $ External Non-U.S. — Other segments ) — ) Operating income (loss) )(1) )(2) Income (loss) before income taxes ) ) Depreciation and amortization ) Capital expenditures — Footnotes related to the six months ended June 30, 2016 segment results (in millions): (1) Corporate SG&A $ ) Company-wide equity-based compensation ) Profit sharing ) Minnesota ironmaking operations ) Other, net ) $ ) (2) Gross profit decrease from intra-company sales $ ) For the six months ended Metals Recycling Steel Fabrication June 30, 2015 Steel Operations Operations Operations Other Eliminations Consolidated Net Sales External $ $ $ $ $ — $ External Non-U.S. — — Other segments ) — ) Operating income (loss) )(1) )(2) Income (loss) before income taxes ) ) ) Depreciation and amortization ) Capital expenditures — Footnotes related to the six months ended June 30, 2015 segment results (in millions): (1) Corporate SG&A $ ) Company-wide equity-based compensation ) Profit sharing ) Minnesota ironmaking operations ) Other, net ) $ ) (2) Gross profit decrease from intra-company sales $ ) |
Condensed Consolidating Infor25
Condensed Consolidating Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Condensed Consolidating Information | |
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets (in thousands) Combined Consolidating Total As of June 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ $ $ $ — $ Accounts receivable, net ) Inventories ) Other current assets ) Total current assets ) Property, plant and equipment, net ) Intangible assets, net — — — Goodwill — — — Other assets, including investments in subs ) Total assets $ $ $ $ ) $ Accounts payable $ $ $ $ ) $ Accrued expenses ) Current maturities of long-term debt ) Total current liabilities ) Long-term debt — ) Other liabilities ) ) Redeemable noncontrolling interests — — — Common stock ) Treasury stock ) — — — ) Additional paid-in-capital ) Retained earnings (deficit) ) ) Total Steel Dynamics, Inc. equity ) Noncontrolling interests — — ) — ) Total equity ) ) Total liabilities and equity $ $ $ $ ) $ Combined Consolidating Total As of December 31, 2015 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ $ $ $ — $ Accounts receivable, net ) Inventories Other current assets ) Total current assets ) Property, plant and equipment, net ) Intangible assets, net — — — Goodwill — — — Other assets, including investments in subs ) Total assets $ $ $ $ ) $ Accounts payable $ $ $ $ ) $ Accrued expenses ) Current maturities of long-term debt ) Total current liabilities ) Long-term debt ) Other liabilities ) ) Redeemable noncontrolling interests — — — Common stock ) Treasury stock ) — — — ) Additional paid-in-capital ) Retained earnings (deficit) ) Total Steel Dynamics, Inc. equity ) Noncontrolling interests — — ) — ) Total equity ) ) Total liabilities and equity $ $ $ $ ) $ |
Schedule of Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations (in thousands) For the three months ended, Combined Consolidating Total June 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ $ $ $ ) $ Costs of goods sold ) Gross profit (loss) ) ) Selling, general and administrative ) Operating income (loss) ) ) Interest expense, net of capitalized interest ) Other (income) expense, net ) ) ) Income (loss) before income taxes and equity in net income of subsidiaries ) ) Income taxes (benefit) ) ) ) ) Equity in net income of subsidiaries — — ) — Net loss attributable to noncontrolling interests — — — Net income (loss) attributable to Steel Dynamics, Inc. $ $ $ ) $ ) $ For the three months ended, Combined Consolidating Total June 30, 2015 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ $ $ $ ) $ Costs of goods sold ) Gross profit (loss) ) ) Selling, general and administrative ) Operating income (loss) ) ) Interest expense, net of capitalized interest ) Other (income) expense, net ) ) ) ) Income (loss) before income taxes and equity in net loss of subsidiaries ) ) Income taxes (benefit) ) ) ) ) Equity in net loss of subsidiaries ) — — — Net loss attributable to noncontrolling interests — — — Net income (loss) attributable to Steel Dynamics, Inc. $ $ $ ) $ ) $ Condensed Consolidating Statements of Operations (in thousands) For the six months ended, Combined Consolidating Total June 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ $ $ $ ) $ Costs of goods sold ) Gross profit (loss) ) ) Selling, general and administrative ) Operating income (loss) ) ) Interest expense, net of capitalized interest ) Other (income) expense, net ) ) ) Income (loss) before income taxes and equity in net income of subsidiaries ) ) Income taxes (benefit) ) ) ) ) Equity in net income of subsidiaries — — ) — Net loss attributable to noncontrolling interests — — — Net income (loss) attributable to Steel Dynamics, Inc. $ $ $ ) $ ) $ For the six months ended, Combined Consolidating Total June 30, 2015 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ $ $ $ ) $ Costs of goods sold ) Gross profit (loss) ) ) Selling, general and administrative ) Operating income (loss) ) ) Interest expense, net of capitalized interest ) Other (income) expense, net ) Income (loss) before income taxes and equity in net loss of subsidiaries ) ) Income taxes (benefit) ) ) ) ) Equity in net loss of subsidiaries ) — — — Net loss attributable to noncontrolling interests — — — Net income (loss) attributable to Steel Dynamics, Inc. $ $ $ ) $ ) $ |
Schedule of Condensed Consolidating Statements of Cash Flows | Condensed Consolidating Statements of Cash Flows (in thousands) For the six months ended, Combined Consolidating Total June 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net cash provided by (used in) operating activities $ $ $ ) $ $ Net cash used in investing activities ) ) ) ) ) Net cash provided by (used in) financing activities ) ) ) Increase in cash and equivalents — Cash and equivalents at beginning of period — Cash and equivalents at end of period $ $ $ $ — $ For the six months ended, Combined Consolidating Total June 30, 2015 Parent Guarantors Non-Guarantors Adjustments Consolidated Net cash provided by operating activities $ $ $ $ $ Net cash used in investing activities ) ) ) ) Net cash provided by (used in) financing activities ) ) ) ) Increase (decrease) in cash and equivalents ) ) — Cash and equivalents at beginning of period — Cash and equivalents at end of period $ $ $ $ — $ |
Description of the Business a26
Description of the Business and Significant Accounting Policies - Segments (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016segmentitemfacility | Jun. 30, 2015 | |
Segment Reporting Information | ||||
Number of reporting segments | segment | 3 | |||
Steel Operations | ||||
Segment Reporting Information | ||||
Number of downstream coating facilities | facility | 10 | |||
Percentage of external net sales | 72.00% | 69.00% | 71.00% | 68.00% |
Metals Recycling Operations | ||||
Segment Reporting Information | ||||
Percentage of external net sales | 15.00% | 20.00% | 15.00% | 20.00% |
Steel Fabrication Operations | ||||
Segment Reporting Information | ||||
Percentage of external net sales | 8.00% | 8.00% | 9.00% | 8.00% |
Number of New Millennium Building Systems' joist and deck plants | item | 8 |
Description of the Business a27
Description of the Business and Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Goodwill | ||
Goodwill | $ 394,275 | $ 397,470 |
OmniSource | ||
Goodwill | ||
Goodwill decrease due to tax benefit related to the normal amortization of the component | 3,200 | |
Metals Recycling Operations | OmniSource | ||
Goodwill | ||
Goodwill | 105,844 | 109,039 |
Metals Recycling Operations | Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division | ||
Goodwill | ||
Goodwill | 95,000 | 95,000 |
Steel Operations | The Techs | ||
Goodwill | ||
Goodwill | 142,783 | 142,783 |
Steel Operations | Roanoke Bar Division | ||
Goodwill | ||
Goodwill | 29,041 | 29,041 |
Steel Operations | Columbus Flat Roll Division | ||
Goodwill | ||
Goodwill | 19,682 | 19,682 |
Steel Fabrication Operations | New Millennium Building Systems | ||
Goodwill | ||
Goodwill | $ 1,925 | $ 1,925 |
Acquisition (Details)
Acquisition (Details) - Vulcan $ in Millions | Jun. 30, 2016USD ($) |
Acquisition | |
Acquisition of interest (as a percent) | 100.00% |
Purchase price paid in cash | $ 114 |
Working capital purchased | $ 30 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net Income (Loss) (Numerator) | ||||
Basic earnings per share - net income (in dollars) | $ 141,969 | $ 31,550 | $ 204,706 | $ 62,311 |
Diluted earnings per share - net income (in dollars) | $ 141,969 | $ 31,550 | $ 204,706 | $ 62,311 |
Weighted average common shares outstanding (in shares) | ||||
Weighted average common shares outstanding - basic (in shares) | 243,655,000 | 241,900,000 | 243,429,000 | 241,718,000 |
Dilutive common share equivalents (in shares) | 1,737,000 | 1,591,000 | 1,571,000 | 1,461,000 |
Weighted average common shares outstanding - diluted (in shares) | 245,392,000 | 243,491,000 | 245,000,000 | 243,179,000 |
Per Share Amount | ||||
Basic (in dollars per share) | $ 0.58 | $ 0.13 | $ 0.84 | $ 0.26 |
Diluted (in dollars per share) | $ 0.58 | $ 0.13 | $ 0.84 | $ 0.26 |
Options | ||||
Antidilutive securities excluded from computation of earnings per share amount | ||||
Antidilutive common share equivalents excluded from computation of earnings per share amount (in shares) | 0 | 0 | 0 | 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Inventories | ||
Raw materials | $ 415,324 | $ 419,608 |
Supplies | 388,350 | 396,349 |
Work in progress | 119,241 | 90,486 |
Finished goods | 252,801 | 242,947 |
Total inventories | $ 1,175,716 | $ 1,149,390 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Mar. 16, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Debt | |||||
Repayments of debt | $ 81,022 | $ 60,557 | $ 85,254 | $ 488,008 | |
7 5/8% senior notes, due 2020 | |||||
Debt | |||||
Repayments of debt | $ 350,000 | ||||
Stated interest rate (as a percent) | 7.625% | ||||
Redemption price of debt instrument (as a percent) | 103.813% | ||||
Associated premiums and related expenses recorded | $ 16,700 |
Changes in Equity (Details)
Changes in Equity (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Increase (Decrease) in Equity | |
Balances | $ 2,545,111 |
Exercise of stock options proceeds, including related tax effect | 6,848 |
Dividends declared | (68,214) |
Distributions to noncontrolling investors, net | (10) |
Equity-based compensation | 12,770 |
Comprehensive and net income (loss) | 201,761 |
Balances | 2,698,266 |
Common Stock | |
Increase (Decrease) in Equity | |
Balances | 638 |
Exercise of stock options proceeds, including related tax effect | 1 |
Balances | 639 |
Additional Paid-In Capital | |
Increase (Decrease) in Equity | |
Balances | 1,110,253 |
Exercise of stock options proceeds, including related tax effect | 6,847 |
Equity-based compensation | 8,419 |
Balances | 1,125,519 |
Retained Earnings | |
Increase (Decrease) in Equity | |
Balances | 1,965,291 |
Dividends declared | (68,214) |
Equity-based compensation | (54) |
Comprehensive and net income (loss) | 204,706 |
Balances | 2,101,729 |
Treasury Stock | |
Increase (Decrease) in Equity | |
Balances | (396,455) |
Equity-based compensation | 4,405 |
Balances | (392,050) |
Noncontrolling Interests | |
Increase (Decrease) in Equity | |
Balances | (134,616) |
Distributions to noncontrolling investors, net | (10) |
Comprehensive and net income (loss) | (2,945) |
Balances | (137,571) |
Redeemable Noncontrolling Interest | |
Increase (Decrease) in Equity | |
Balances | 126,340 |
Balances | $ 126,340 |
Derivative Financial Instrume33
Derivative Financial Instruments (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Mt | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Designated as hedging instrument | |||||
Gains or losses on derivative instruments, statement of income | |||||
Amount of gain (loss) recognized in income on related hedged items | $ 333,000 | $ (1,803,000) | $ (611,000) | $ 1,347,000 | |
Commodity contract | Futures | |||||
Fair values of derivative instruments, balance sheet | |||||
Commodity futures, asset derivatives (in dollars) | 1,678,000 | 1,678,000 | $ 1,765,000 | ||
Commodity futures, liability derivatives (in dollars) | 4,838,000 | 4,838,000 | 3,925,000 | ||
Commodity contract | Futures | Other current assets | |||||
Fair values of derivative instruments, balance sheet | |||||
Fair value of derivatives including required margin deposits | 922,000 | 922,000 | 3,400,000 | ||
Commodity contract | Futures | Designated as hedging instrument | |||||
Gains or losses on derivative instruments, statement of income | |||||
Ineffectiveness - amount of gain (loss) recognized in income on related hedged items | (47,000) | 20,000 | (91,000) | 127,000 | |
Gain (loss) excluded from hedge effectiveness testing | (97,000) | 1,252,000 | (65,000) | (18,000) | |
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 | (477,000) | 3,075,000 | 455,000 | (1,238,000) | |
Commodity contract | Futures | Designated as hedging instrument | Other current assets | |||||
Fair values of derivative instruments, balance sheet | |||||
Commodity futures, asset derivatives (in dollars) | 477,000 | 477,000 | 857,000 | ||
Commodity futures, liability derivatives (in dollars) | 2,009,000 | 2,009,000 | 2,860,000 | ||
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 | 1,116,000 | (326,000) | 244,000 | 6,670,000 | |
Commodity contract | Futures | Not designated as hedging instrument | Other current assets | |||||
Fair values of derivative instruments, balance sheet | |||||
Commodity futures, asset derivatives (in dollars) | 1,201,000 | 1,201,000 | 908,000 | ||
Commodity futures, liability derivatives (in dollars) | 2,829,000 | $ 2,829,000 | $ 1,065,000 | ||
Commodity contract | Futures | Aluminum | Long | |||||
Commodity contract commitments | |||||
Commodity contract (in MT/Lbs) | Mt | 1,725 | ||||
Commodity contract | Futures | Aluminum | Short | |||||
Commodity contract commitments | |||||
Commodity contract (in MT/Lbs) | Mt | 1,095 | ||||
Commodity contract | Futures | Copper | Long | |||||
Commodity contract commitments | |||||
Commodity contract (in MT/Lbs) | Mt | 15,809 | ||||
Commodity contract | Futures | Copper | Short | |||||
Commodity contract commitments | |||||
Commodity contract (in MT/Lbs) | Mt | 16,375 | ||||
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 | (208,000) | 362,000 | $ (1,430,000) | 856,000 | |
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 | $ 541,000 | $ (2,165,000) | $ 819,000 | $ 491,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Assets and liabilities subject to fair value measurements | ||
Outstanding Balance | $ 2,600,000,000 | $ 2,600,000,000 |
Commodity contract | Futures | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 1,678,000 | 1,765,000 |
Commodity futures - financial liabilities | 4,838,000 | 3,925,000 |
Recurring | Total | Commodity contract | Futures | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 1,678,000 | 1,765,000 |
Commodity futures - financial liabilities | 4,838,000 | 3,925,000 |
Recurring | Level 2 | ||
Assets and liabilities subject to fair value measurements | ||
Fair value of long-term debt, including current maturities | 2,700,000,000 | 2,500,000,000 |
Recurring | Level 2 | Commodity contract | Futures | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 1,678,000 | 1,765,000 |
Commodity futures - financial liabilities | $ 4,838,000 | $ 3,925,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jun. 30, 2016company |
Commitments and Contingencies | |
Number of other remaining steel manufacturing company defendants served with a class action antitrust complaint | 2 |
Number of original steel manufacturing company defendants served with a class action antitrust complaint | 8 |
Segment Information - Results (
Segment Information - Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information | |||||
Total net sales | $ 2,023,902 | $ 2,005,007 | $ 3,765,203 | $ 4,052,442 | |
Operating income (loss) | 256,122 | 77,559 | 388,087 | 177,330 | |
Income (loss) before income taxes | 221,294 | 41,608 | 318,008 | 82,100 | |
Depreciation and amortization | 74,795 | 74,273 | 148,780 | 147,095 | |
Capital expenditures | 35,686 | 22,821 | 63,394 | 56,172 | |
Assets | 6,629,676 | 6,826,763 | 6,629,676 | 6,826,763 | $ 6,202,082 |
U.S. | |||||
Segment Reporting Information | |||||
Total net sales | 1,926,905 | 1,887,361 | 3,575,298 | 3,811,335 | |
Non-U.S. | |||||
Segment Reporting Information | |||||
Total net sales | 96,997 | 117,646 | 189,905 | 241,107 | |
Operating Segment | |||||
Segment Reporting Information | |||||
Total net sales | 2,023,902 | 2,005,007 | 3,765,203 | 4,052,442 | |
Operating Segment | Steel Operations | |||||
Segment Reporting Information | |||||
Total net sales | 1,533,298 | 1,429,237 | 2,791,686 | 2,863,559 | |
Operating income (loss) | 273,111 | 99,013 | 405,386 | 213,978 | |
Income (loss) before income taxes | 250,683 | 77,290 | 360,058 | 166,621 | |
Depreciation and amortization | 53,675 | 51,242 | 106,158 | 102,212 | |
Capital expenditures | 30,098 | 14,149 | 54,002 | 30,349 | |
Assets | 3,992,230 | 4,127,487 | 3,992,230 | 4,127,487 | |
Operating Segment | Steel Operations | Other segments | |||||
Segment Reporting Information | |||||
Total net sales | 66,594 | 53,560 | 107,806 | 102,463 | |
Operating Segment | Steel Operations | U.S. | |||||
Segment Reporting Information | |||||
Total net sales | 1,408,993 | 1,303,278 | 2,565,962 | 2,616,704 | |
Operating Segment | Steel Operations | Non-U.S. | |||||
Segment Reporting Information | |||||
Total net sales | 57,711 | 72,399 | 117,918 | 144,392 | |
Operating Segment | Metals Recycling Operations | |||||
Segment Reporting Information | |||||
Total net sales | 590,724 | 645,449 | 1,077,909 | 1,297,460 | |
Operating income (loss) | 11,093 | 8,282 | 13,860 | 3,784 | |
Income (loss) before income taxes | 8,086 | 4,723 | 7,863 | (5,813) | |
Depreciation and amortization | 14,250 | 17,014 | 28,830 | 34,294 | |
Capital expenditures | 4,482 | 4,632 | 7,562 | 11,047 | |
Assets | 1,076,596 | 1,666,384 | 1,076,596 | 1,666,384 | |
Operating Segment | Metals Recycling Operations | Other segments | |||||
Segment Reporting Information | |||||
Total net sales | 279,664 | 254,238 | 497,442 | 480,654 | |
Operating Segment | Metals Recycling Operations | U.S. | |||||
Segment Reporting Information | |||||
Total net sales | 271,985 | 346,103 | 508,742 | 720,395 | |
Operating Segment | Metals Recycling Operations | Non-U.S. | |||||
Segment Reporting Information | |||||
Total net sales | 39,075 | 45,108 | 71,725 | 96,411 | |
Operating Segment | Steel Fabrication Operations | |||||
Segment Reporting Information | |||||
Total net sales | 171,720 | 154,525 | 351,801 | 315,553 | |
Operating income (loss) | 23,470 | 27,660 | 55,486 | 49,021 | |
Income (loss) before income taxes | 21,514 | 25,879 | 51,530 | 45,473 | |
Depreciation and amortization | 2,762 | 2,158 | 5,583 | 4,388 | |
Capital expenditures | 567 | 534 | 1,171 | 1,571 | |
Assets | 334,530 | 295,642 | 334,530 | 295,642 | |
Operating Segment | Steel Fabrication Operations | Other segments | |||||
Segment Reporting Information | |||||
Total net sales | 1,178 | 12 | 1,204 | 16 | |
Operating Segment | Steel Fabrication Operations | U.S. | |||||
Segment Reporting Information | |||||
Total net sales | 170,477 | 154,513 | 350,518 | 315,537 | |
Operating Segment | Steel Fabrication Operations | Non-U.S. | |||||
Segment Reporting Information | |||||
Total net sales | 65 | 79 | |||
Operating Segment | Other | |||||
Segment Reporting Information | |||||
Total net sales | 76,865 | 90,308 | 152,754 | 183,908 | |
Operating income (loss) | (45,569) | (52,970) | (77,499) | (88,872) | |
Income (loss) before income taxes | (53,006) | (61,858) | (92,297) | (123,600) | |
Depreciation and amortization | 4,160 | 3,910 | 8,312 | 6,303 | |
Capital expenditures | 539 | 3,506 | 659 | 13,205 | |
Assets | 1,348,290 | 869,929 | 1,348,290 | 869,929 | |
Operating Segment | Other | Other segments | |||||
Segment Reporting Information | |||||
Total net sales | 1,269 | 6,702 | 2,495 | 24,905 | |
Operating Segment | Other | U.S. | |||||
Segment Reporting Information | |||||
Total net sales | 75,450 | 83,467 | 150,076 | 158,699 | |
Operating Segment | Other | Non-U.S. | |||||
Segment Reporting Information | |||||
Total net sales | 146 | 139 | 183 | 304 | |
Eliminations | |||||
Segment Reporting Information | |||||
Total net sales | (348,705) | (314,512) | (608,947) | (608,038) | |
Operating income (loss) | (5,983) | (4,426) | (9,146) | (581) | |
Income (loss) before income taxes | (5,983) | (4,426) | (9,146) | (581) | |
Depreciation and amortization | (52) | (51) | (103) | (102) | |
Assets | (121,970) | (132,679) | (121,970) | (132,679) | |
Eliminations | Other segments | |||||
Segment Reporting Information | |||||
Total net sales | $ (348,705) | $ (314,512) | $ (608,947) | $ (608,038) |
Segment Information - Other Foo
Segment Information - Other Footnote (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Operating income (loss) | ||||||||
Corporate SG & A | $ (96,853) | $ (82,660) | $ (184,383) | $ (159,010) | ||||
Profit sharing | (20,176) | (5,031) | (29,467) | (9,629) | ||||
Operating income (loss) | 256,122 | 77,559 | 388,087 | 177,330 | ||||
Assets | ||||||||
Cash and equivalents | 1,052,666 | 419,401 | 1,052,666 | 419,401 | $ 976,951 | $ 727,032 | $ 160,982 | $ 361,363 |
Accounts receivable | 794,003 | 794,003 | 613,605 | |||||
Inventories | 1,175,716 | 1,175,716 | 1,149,390 | |||||
Property, plant and equipment, net | 2,885,844 | 2,885,844 | 2,951,210 | |||||
Other | 33,624 | 33,624 | 36,501 | |||||
Total assets | 6,629,676 | 6,826,763 | 6,629,676 | 6,826,763 | $ 6,202,082 | |||
Operating Segment | Other | ||||||||
Operating income (loss) | ||||||||
Corporate SG & A | (14,800) | (8,100) | (25,900) | (17,500) | ||||
Company-wide equity- based compensation | (7,300) | (6,300) | (14,300) | (12,200) | ||||
Profit sharing | (18,500) | (3,500) | (26,700) | (7,000) | ||||
Other, net | (1,000) | (1,900) | (2,300) | (6,100) | ||||
Operating income (loss) | (45,569) | (52,970) | (77,499) | (88,872) | ||||
Assets | ||||||||
Cash and equivalents | 954,800 | 356,900 | 954,800 | 356,900 | ||||
Accounts receivable | 21,000 | 29,000 | 21,000 | 29,000 | ||||
Inventories | 33,200 | 48,300 | 33,200 | 48,300 | ||||
Property, plant and equipment, net | 299,200 | 315,700 | 299,200 | 315,700 | ||||
Intra-company debt | 6,300 | 6,600 | 6,300 | 6,600 | ||||
Other | 33,800 | 113,400 | 33,800 | 113,400 | ||||
Total assets | 1,348,290 | 869,929 | 1,348,290 | 869,929 | ||||
Operating Segment | Other | MINNESOTA | Minnesota ironmaking operations | ||||||||
Operating income (loss) | ||||||||
Operating income (loss) | $ (4,000) | $ (33,200) | $ (8,300) | $ (46,100) |
Segment Information - Eliminati
Segment Information - Eliminations Footnote (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Operating income (loss) | |||||
Gross profit | $ 380,383 | $ 171,743 | $ 616,419 | $ 358,785 | |
Assets elimination | |||||
Accounts receivable | 794,003 | 794,003 | $ 613,605 | ||
Other | 33,624 | 33,624 | 36,501 | ||
Total assets | 6,629,676 | 6,826,763 | 6,629,676 | 6,826,763 | $ 6,202,082 |
Eliminations | |||||
Operating income (loss) | |||||
Gross profit | (6,000) | (4,400) | (9,100) | (600) | |
Assets elimination | |||||
Accounts receivable | (103,100) | (117,100) | (103,100) | (117,100) | |
Elimination of intra-company debt | (6,300) | (6,600) | (6,300) | (6,600) | |
Other | (12,600) | (9,000) | (12,600) | (9,000) | |
Total assets | $ (121,970) | $ (132,679) | $ (121,970) | $ (132,679) |
Condensed Consolidating Infor39
Condensed Consolidating Information - Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Condensed Consolidating Balance Sheets | ||||||
Ownership interest in subsidiaries (as a percent) | 100.00% | |||||
Cash and equivalents | $ 1,052,666 | $ 976,951 | $ 727,032 | $ 419,401 | $ 160,982 | $ 361,363 |
Accounts receivable, net | 794,003 | 613,605 | ||||
Inventories | 1,175,716 | 1,149,390 | ||||
Other current assets | 28,072 | 47,914 | ||||
Total current assets | 3,050,457 | 2,537,941 | ||||
Property, plant and equipment, net | 2,885,844 | 2,951,210 | ||||
Intangible assets, net | 265,476 | 278,960 | ||||
Goodwill | 394,275 | 397,470 | ||||
Other assets, including investments in subs | 33,624 | 36,501 | ||||
Total assets | 6,629,676 | 6,202,082 | 6,826,763 | |||
Accounts payable | 461,267 | 283,355 | ||||
Accrued expenses | 299,910 | 235,255 | ||||
Current maturities of long-term debt | 18,047 | 16,680 | ||||
Total current liabilities | 779,224 | 535,290 | ||||
Long-term debt | 2,573,186 | 2,577,976 | ||||
Other liabilities | 452,660 | 417,365 | ||||
Redeemable noncontrolling interests | 126,340 | 126,340 | ||||
Common stock | 639 | 638 | ||||
Treasury stock | (392,050) | (396,455) | ||||
Additional paid-in capital | 1,125,519 | 1,110,253 | ||||
Retained earnings (deficit) | 2,101,729 | 1,965,291 | ||||
Total Steel Dynamics, Inc. equity | 2,835,837 | 2,679,727 | ||||
Noncontrolling interests | (137,571) | (134,616) | ||||
Total equity | 2,698,266 | 2,545,111 | ||||
Total liabilities and equity | 6,629,676 | 6,202,082 | ||||
Reportable legal entity | Parent | ||||||
Condensed Consolidating Balance Sheets | ||||||
Cash and equivalents | 947,018 | 636,877 | 351,996 | 265,313 | ||
Accounts receivable, net | 263,090 | 200,094 | ||||
Inventories | 561,567 | 539,963 | ||||
Other current assets | 15,660 | 21,654 | ||||
Total current assets | 1,787,335 | 1,398,588 | ||||
Property, plant and equipment, net | 932,067 | 958,212 | ||||
Other assets, including investments in subs | 2,811,879 | 2,941,710 | ||||
Total assets | 5,531,281 | 5,298,510 | ||||
Accounts payable | 169,025 | 100,751 | ||||
Accrued expenses | 198,810 | 141,552 | ||||
Current maturities of long-term debt | 13,147 | 13,122 | ||||
Total current liabilities | 380,982 | 255,425 | ||||
Long-term debt | 2,542,969 | 2,546,606 | ||||
Other liabilities | (228,508) | (183,248) | ||||
Common stock | 640 | 638 | ||||
Treasury stock | (392,050) | (396,455) | ||||
Additional paid-in capital | 1,125,519 | 1,110,253 | ||||
Retained earnings (deficit) | 2,101,729 | 1,965,291 | ||||
Total Steel Dynamics, Inc. equity | 2,835,838 | 2,679,727 | ||||
Total equity | 2,835,838 | 2,679,727 | ||||
Total liabilities and equity | 5,531,281 | 5,298,510 | ||||
Reportable legal entity | Guarantors | ||||||
Condensed Consolidating Balance Sheets | ||||||
Cash and equivalents | 88,893 | 81,976 | 55,586 | 81,690 | ||
Accounts receivable, net | 1,228,150 | 1,056,285 | ||||
Inventories | 583,995 | 573,924 | ||||
Other current assets | 12,345 | 25,415 | ||||
Total current assets | 1,913,383 | 1,737,600 | ||||
Property, plant and equipment, net | 1,668,643 | 1,703,932 | ||||
Intangible assets, net | 265,476 | 278,960 | ||||
Goodwill | 394,275 | 397,470 | ||||
Other assets, including investments in subs | 8,986 | 10,040 | ||||
Total assets | 4,250,763 | 4,128,002 | ||||
Accounts payable | 306,782 | 183,344 | ||||
Accrued expenses | 199,976 | 185,873 | ||||
Current maturities of long-term debt | 700 | 700 | ||||
Total current liabilities | 507,458 | 369,917 | ||||
Long-term debt | 361 | |||||
Other liabilities | 1,188,931 | 1,342,541 | ||||
Common stock | 1,727,859 | 1,727,859 | ||||
Additional paid-in capital | 117,737 | 117,737 | ||||
Retained earnings (deficit) | 708,778 | 569,587 | ||||
Total Steel Dynamics, Inc. equity | 2,554,374 | 2,415,183 | ||||
Total equity | 2,554,374 | 2,415,183 | ||||
Total liabilities and equity | 4,250,763 | 4,128,002 | ||||
Reportable legal entity | Combined Non-Guarantors | ||||||
Condensed Consolidating Balance Sheets | ||||||
Cash and equivalents | 16,755 | 8,179 | $ 11,819 | $ 14,360 | ||
Accounts receivable, net | 30,318 | 29,775 | ||||
Inventories | 37,484 | 35,004 | ||||
Other current assets | 1,753 | 1,676 | ||||
Total current assets | 86,310 | 74,634 | ||||
Property, plant and equipment, net | 287,042 | 291,077 | ||||
Other assets, including investments in subs | 6,257 | 6,137 | ||||
Total assets | 379,609 | 371,848 | ||||
Accounts payable | 74,445 | 68,948 | ||||
Accrued expenses | 5,257 | 4,779 | ||||
Current maturities of long-term debt | 28,401 | 24,975 | ||||
Total current liabilities | 108,103 | 98,702 | ||||
Long-term debt | 174,689 | 177,897 | ||||
Other liabilities | 70,488 | 63,020 | ||||
Redeemable noncontrolling interests | 126,340 | 126,340 | ||||
Common stock | 18,120 | 18,120 | ||||
Additional paid-in capital | 653,787 | 646,787 | ||||
Retained earnings (deficit) | (634,347) | (624,402) | ||||
Total Steel Dynamics, Inc. equity | 37,560 | 40,505 | ||||
Noncontrolling interests | (137,571) | (134,616) | ||||
Total equity | (100,011) | (94,111) | ||||
Total liabilities and equity | 379,609 | 371,848 | ||||
Consolidating Adjustments | ||||||
Condensed Consolidating Balance Sheets | ||||||
Accounts receivable, net | (727,555) | (672,549) | ||||
Inventories | (7,330) | 499 | ||||
Other current assets | (1,686) | (831) | ||||
Total current assets | (736,571) | (672,881) | ||||
Property, plant and equipment, net | (1,908) | (2,011) | ||||
Other assets, including investments in subs | (2,793,498) | (2,921,386) | ||||
Total assets | (3,531,977) | (3,596,278) | ||||
Accounts payable | (88,985) | (69,688) | ||||
Accrued expenses | (104,133) | (96,949) | ||||
Current maturities of long-term debt | (24,201) | (22,117) | ||||
Total current liabilities | (217,319) | (188,754) | ||||
Long-term debt | (144,472) | (146,888) | ||||
Other liabilities | (578,251) | (804,948) | ||||
Common stock | (1,745,980) | (1,745,979) | ||||
Additional paid-in capital | (771,524) | (764,524) | ||||
Retained earnings (deficit) | (74,431) | 54,815 | ||||
Total Steel Dynamics, Inc. equity | (2,591,935) | (2,455,688) | ||||
Total equity | (2,591,935) | (2,455,688) | ||||
Total liabilities and equity | $ (3,531,977) | $ (3,596,278) |
Condensed Consolidating Infor40
Condensed Consolidating Information - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Consolidating Statements of Operations | ||||
Net sales | $ 2,023,902 | $ 2,005,007 | $ 3,765,203 | $ 4,052,442 |
Costs of goods sold | 1,643,519 | 1,833,264 | 3,148,784 | 3,693,657 |
Gross profit | 380,383 | 171,743 | 616,419 | 358,785 |
Selling, general and administrative | 124,261 | 94,184 | 228,332 | 181,455 |
Operating income | 256,122 | 77,559 | 388,087 | 177,330 |
Interest expense, net of capitalized interest | 36,646 | 37,163 | 73,689 | 80,250 |
Other (income) expense, net | (1,818) | (1,212) | (3,610) | 14,980 |
Income before income taxes | 221,294 | 41,608 | 318,008 | 82,100 |
Income taxes (benefit) | 80,851 | 16,283 | 116,247 | 29,821 |
Net income | 140,443 | 25,325 | 201,761 | 52,279 |
Net loss attributable to noncontrolling interests | 1,526 | 6,225 | 2,945 | 10,032 |
Net income attributable to Steel Dynamics, Inc. | 141,969 | 31,550 | 204,706 | 62,311 |
Reportable legal entity | Parent | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | 793,990 | 766,056 | 1,451,804 | 1,564,774 |
Costs of goods sold | 627,246 | 669,259 | 1,175,425 | 1,362,834 |
Gross profit | 166,744 | 96,797 | 276,379 | 201,940 |
Selling, general and administrative | 53,999 | 29,905 | 92,601 | 60,648 |
Operating income | 112,745 | 66,892 | 183,778 | 141,292 |
Interest expense, net of capitalized interest | 17,837 | 18,166 | 36,024 | 38,703 |
Other (income) expense, net | (2,271) | (773) | (4,479) | 14,879 |
Income before income taxes | 97,179 | 49,499 | 152,233 | 87,710 |
Income taxes (benefit) | 31,700 | 8,097 | 48,968 | 15,038 |
Net income | 65,479 | 41,402 | 103,265 | 72,672 |
Equity in net income of subsidiaries | 76,490 | (9,852) | 101,441 | (10,361) |
Net income attributable to Steel Dynamics, Inc. | 141,969 | 31,550 | 204,706 | 62,311 |
Reportable legal entity | Guarantors | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | 2,206,348 | 2,153,141 | 4,063,692 | 4,344,150 |
Costs of goods sold | 1,957,570 | 2,019,025 | 3,659,391 | 4,091,150 |
Gross profit | 248,778 | 134,116 | 404,301 | 253,000 |
Selling, general and administrative | 72,808 | 65,736 | 140,008 | 123,769 |
Operating income | 175,970 | 68,380 | 264,293 | 129,231 |
Interest expense, net of capitalized interest | 18,352 | 18,376 | 36,752 | 40,216 |
Other (income) expense, net | 1,885 | (654) | 4,075 | 34 |
Income before income taxes | 155,733 | 50,658 | 223,466 | 88,981 |
Income taxes (benefit) | 58,779 | 19,172 | 84,274 | 32,206 |
Net income | 96,954 | 31,486 | 139,192 | 56,775 |
Net income attributable to Steel Dynamics, Inc. | 96,954 | 31,486 | 139,192 | 56,775 |
Reportable legal entity | Combined Non-Guarantors | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | 89,545 | 101,880 | 175,285 | 206,453 |
Costs of goods sold | 94,986 | 134,335 | 186,016 | 253,116 |
Gross profit | (5,441) | (32,455) | (10,731) | (46,663) |
Selling, general and administrative | 2,416 | 2,668 | 5,218 | 6,033 |
Operating income | (7,857) | (35,123) | (15,949) | (52,696) |
Interest expense, net of capitalized interest | 2,451 | 1,658 | 4,711 | 3,392 |
Other (income) expense, net | (3,426) | (822) | (7,004) | (1,994) |
Income before income taxes | (6,882) | (35,959) | (13,656) | (54,094) |
Income taxes (benefit) | (589) | (2,510) | (860) | (3,626) |
Net income | (6,293) | (33,449) | (12,796) | (50,468) |
Net loss attributable to noncontrolling interests | 1,526 | 6,225 | 2,945 | 10,032 |
Net income attributable to Steel Dynamics, Inc. | (4,767) | (27,224) | (9,851) | (40,436) |
Consolidating Adjustments | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | (1,065,981) | (1,016,070) | (1,925,578) | (2,062,935) |
Costs of goods sold | (1,036,283) | (989,355) | (1,872,048) | (2,013,443) |
Gross profit | (29,698) | (26,715) | (53,530) | (49,492) |
Selling, general and administrative | (4,962) | (4,125) | (9,495) | (8,995) |
Operating income | (24,736) | (22,590) | (44,035) | (40,497) |
Interest expense, net of capitalized interest | (1,994) | (1,037) | (3,798) | (2,061) |
Other (income) expense, net | 1,994 | 1,037 | 3,798 | 2,061 |
Income before income taxes | (24,736) | (22,590) | (44,035) | (40,497) |
Income taxes (benefit) | (9,039) | (8,476) | (16,135) | (13,797) |
Net income | (15,697) | (14,114) | (27,900) | (26,700) |
Equity in net income of subsidiaries | (76,490) | 9,852 | (101,441) | 10,361 |
Net income attributable to Steel Dynamics, Inc. | $ (92,187) | $ (4,262) | $ (129,341) | $ (16,339) |
Condensed Consolidating Infor41
Condensed Consolidating Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | $ 157,972 | $ 309,212 | $ 446,871 | $ 543,919 |
Net cash used in investing activities | (34,480) | (22,015) | (59,134) | (53,703) |
Net cash provided by (used in) financing activities | (47,777) | (28,778) | (62,103) | (432,178) |
Increase in cash and equivalents | 75,715 | 258,419 | 325,634 | 58,038 |
Cash and equivalents at beginning of period | 976,951 | 160,982 | 727,032 | 361,363 |
Cash and equivalents at end of period | 1,052,666 | 419,401 | 1,052,666 | 419,401 |
Reportable legal entity | Parent | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | 183,719 | 212,624 | ||
Net cash used in investing activities | (19,031) | (31,419) | ||
Net cash provided by (used in) financing activities | 145,453 | (94,522) | ||
Increase in cash and equivalents | 310,141 | 86,683 | ||
Cash and equivalents at beginning of period | 636,877 | 265,313 | ||
Cash and equivalents at end of period | 947,018 | 351,996 | 947,018 | 351,996 |
Reportable legal entity | Guarantors | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | 264,839 | 322,486 | ||
Net cash used in investing activities | (35,026) | (18,495) | ||
Net cash provided by (used in) financing activities | (222,896) | (330,095) | ||
Increase in cash and equivalents | 6,917 | (26,104) | ||
Cash and equivalents at beginning of period | 81,976 | 81,690 | ||
Cash and equivalents at end of period | 88,893 | 55,586 | 88,893 | 55,586 |
Reportable legal entity | Combined Non-Guarantors | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | (2,066) | 246 | ||
Net cash used in investing activities | (4,746) | (13,260) | ||
Net cash provided by (used in) financing activities | 15,388 | 10,473 | ||
Increase in cash and equivalents | 8,576 | (2,541) | ||
Cash and equivalents at beginning of period | 8,179 | 14,360 | ||
Cash and equivalents at end of period | $ 16,755 | $ 11,819 | 16,755 | 11,819 |
Consolidating Adjustments | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | 379 | 8,563 | ||
Net cash used in investing activities | (331) | 9,471 | ||
Net cash provided by (used in) financing activities | $ (48) | $ (18,034) |