Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 01, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | STEEL DYNAMICS INC | |
Entity Central Index Key | 1,022,671 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Common Stock, Shares Outstanding | 239,872,874 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and equivalents | $ 908,843 | $ 841,483 |
Accounts receivable, net | 866,716 | 703,565 |
Accounts receivable-related parties | 20,178 | 26,219 |
Inventories | 1,418,732 | 1,275,211 |
Other current assets | 37,188 | 83,197 |
Total current assets | 3,251,657 | 2,929,675 |
Property, plant and equipment, net | 2,729,721 | 2,787,215 |
Restricted cash | 17,373 | 18,060 |
Intangible assets, net | 269,129 | 283,977 |
Goodwill | 390,129 | 393,351 |
Other assets | 12,121 | 11,454 |
Total assets | 6,670,130 | 6,423,732 |
Current liabilities | ||
Accounts payable | 467,611 | 382,126 |
Accounts payable-related parties | 16,392 | 13,070 |
Income taxes payable | 5,589 | 5,593 |
Accrued payroll and benefits | 138,360 | 164,543 |
Accrued interest | 29,632 | 30,295 |
Accrued expenses | 118,337 | 113,556 |
Current maturities of long-term debt | 19,971 | 3,632 |
Total current liabilities | 795,892 | 712,815 |
Long-term debt | 2,354,337 | 2,353,194 |
Deferred income taxes | 459,639 | 448,375 |
Other liabilities | 20,781 | 20,649 |
Total liabilities | 3,630,649 | 3,535,033 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 111,240 | 111,240 |
Equity | ||
Common stock voting, $.0025 par value; 900,000,000 shares authorized; 264,161,359 and 264,130,544 shares issued; and 239,872,874 and 243,785,485 shares outstanding, as of June 30, 2017 and December 31, 2016, respectively | 641 | 641 |
Treasury stock, at cost; 24,288,485 and 20,345,059 shares, as of June 30, 2017 and December 31, 2016 respectively | (551,125) | (416,829) |
Additional paid-in capital | 1,141,050 | 1,132,749 |
Retained earnings | 2,490,373 | 2,210,459 |
Total Steel Dynamics, Inc. equity | 3,080,939 | 2,927,020 |
Noncontrolling interests | (152,698) | (149,561) |
Total equity | 2,928,241 | 2,777,459 |
Total liabilities and equity | $ 6,670,130 | $ 6,423,732 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
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) | 264,161,359 | 264,130,544 |
Common stock voting, shares outstanding (in shares) | 239,872,874 | 243,785,485 |
Treasury stock, shares (in shares) | 24,288,485 | 20,345,059 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net sales | ||||
Unrelated parties | $ 2,347,304 | $ 1,978,984 | $ 4,666,967 | $ 3,676,988 |
Related parties | 43,416 | 44,918 | 91,969 | 88,215 |
Total net sales | 2,390,720 | 2,023,902 | 4,758,936 | 3,765,203 |
Costs of goods sold | 1,998,202 | 1,643,519 | 3,894,264 | 3,148,784 |
Gross profit | 392,518 | 380,383 | 864,672 | 616,419 |
Selling, general and administrative expenses | 98,433 | 96,853 | 201,366 | 184,383 |
Profit sharing | 21,308 | 20,176 | 48,539 | 29,467 |
Amortization of intangible assets | 7,424 | 7,232 | 14,848 | 14,482 |
Operating income | 265,353 | 256,122 | 599,919 | 388,087 |
Interest expense, net of capitalized interest | 33,869 | 36,646 | 67,842 | 73,689 |
Other expense (income), net | (3,835) | (1,818) | (7,494) | (3,610) |
Income before income taxes | 235,319 | 221,294 | 539,571 | 318,008 |
Income tax expense | 82,372 | 80,851 | 187,958 | 116,247 |
Net income | 152,947 | 140,443 | 351,613 | 201,761 |
Net loss attributable to noncontrolling interests | 986 | 1,526 | 3,137 | 2,945 |
Net income attributable to Steel Dynamics, Inc. | $ 153,933 | $ 141,969 | $ 354,750 | $ 204,706 |
Basic earnings per share attributable to Steel Dynamics, Inc. stockholders | $ 0.64 | $ 0.58 | $ 1.47 | $ 0.84 |
Weighted average common shares outstanding - basic (in shares) | 241,343 | 243,655 | 242,143 | 243,429 |
Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share) | $ 0.63 | $ 0.58 | $ 1.46 | $ 0.84 |
Weighted average common shares and share equivalents outstanding (in shares) | 243,021 | 245,392 | 243,784 | 245,000 |
Dividends declared per share (in dollars per share) | $ 0.155 | $ 0.140 | $ 0.310 | $ 0.280 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities: | ||||
Net income | $ 152,947 | $ 140,443 | $ 351,613 | $ 201,761 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 73,801 | 74,795 | 148,858 | 148,780 |
Equity-based compensation | 6,380 | 7,236 | 17,683 | 17,770 |
Deferred income taxes | 6,849 | 18,314 | 14,565 | 35,401 |
Other adjustments | (43) | 1,035 | (147) | 1,215 |
Changes in certain assets and liabilities: | ||||
Accounts receivable | (3,746) | (103,598) | (157,110) | (179,194) |
Inventories | (57,622) | (108,893) | (144,441) | (26,326) |
Other assets | 5,418 | 10,613 | 7,531 | 11,161 |
Accounts payable | (45,445) | 53,732 | 88,364 | 166,391 |
Income taxes receivable/payable | (77,587) | 34,388 | 18,732 | 48,381 |
Accrued expenses | 20,056 | 29,907 | (24,191) | 23,660 |
Net cash provided by operating activities | 81,008 | 157,972 | 321,457 | 449,000 |
Investing activities: | ||||
Purchases of property, plant and equipment | (43,274) | (35,686) | (84,951) | (63,394) |
Other investing activities | 2,387 | 1,206 | 29,305 | 4,260 |
Net cash used in investing activities | (40,887) | (34,480) | (55,646) | (59,134) |
Financing activities: | ||||
Issuance of current and long-term debt | 51,233 | 63,655 | 51,233 | 84,107 |
Repayment of current and long-term debt | (34,997) | (81,022) | (36,426) | (85,254) |
Dividends paid | (37,527) | (34,090) | (71,657) | (67,515) |
Purchases of treasury stock | (76,813) | (138,069) | ||
Other financing activities | 3,680 | (3,532) | 4,430 | |
Net cash used in financing activities | (98,104) | (47,777) | (198,451) | (64,232) |
Increase in cash and equivalents | (57,983) | 75,715 | 67,360 | 325,634 |
Cash and equivalents at beginning of period | 966,826 | 976,951 | 841,483 | 727,032 |
Cash and equivalents at end of period | 908,843 | 1,052,666 | 908,843 | 1,052,666 |
Supplemental disclosure information: | ||||
Cash paid for interest | 53,976 | 45,094 | 66,625 | 71,380 |
Cash paid for income taxes, net | $ 152,116 | $ 27,565 | $ 153,670 | $ 28,264 |
Description of the Business and
Description of the Business and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Description of the Business and Significant Accounting Policies | |
Description of the Business and Significant Accounting Policies | Note 1. Description of the Business and Significant Accounting Policies Description of the Business Steel Dynamics, Inc. (SDI), together with its subsidiaries (the company), is a domestic manufacturer of steel products and metals recycler. The company has three reporting segments: steel operations, metals recycling 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, Vulcan Threaded Products, Inc. – acquired August 1, 2016, Roanoke Bar Division, Steel of West Virginia, and Iron Dynamics, 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 numerous downstream coating and bar processing lines. Steel operations accounted for 73% and 72% of the company’s consolidated external net sales during the three months ended June 30, 2017 and 2016 , respectively, and 73% and 71% of the company’s consolidated external net sales during the six months ended June 30, 2017 and 2016 , respectively . Metals Recycling Operations Segment. Metals recycling operations consists solely of OmniSource Corporation (OmniSource), and includes both ferrous and nonferrous processing, transportation, marketing, brokerage, and consulting services. Metals recycling operations accounted for 14% and 15% of the company’s consolidated external net sales during the three months ended June 30, 2017, and 2016, respectively, and 15% of the company’s consolidated external net sales for the six months ended June 30, 2017 , and 2016 . 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 in Northern Mexico. Revenues from these plants are generated from the fabrication of trusses, girders, steel joists and steel deck used within the non-residential construction industry. Steel fabrication operations accounted for 8% o f the company’s consolidated external net sales during the three months ended June 30, 2017 and 2016 , and 8% and 9% during the six months ended June 30, 2017 and 2016 . Other. Other operations consists of subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of our idled Minnesota ironmaking operations and other 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 significant intercompany accounts and transactions. Noncontrolling interests represent the noncontrolling owner’s proportionate share in the equity, income, or losses of the company’s majority-owned or controlled consolidated subsidiaries. Use of Estimates. These financial statements are prepared in conformity with accounting principles generally accepted in the United States, and accordingly, include amounts that require management to make estimates and assumptions that affect the amounts reported in the financial statements and in the notes thereto. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment, intangible assets, and goodwill; valuation allowances for trade receivables, inventories and deferred income tax assets; unrecognized tax benefits; potential environmental liabilities; and litigation claims and settlements. Actual results may differ from these estimates and assumptions. In the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the interim period results. These financial statements and notes should be read in conjunction with the audited financial statements and notes thereto included in the company’s Annual Report on Form 10-K for the year ended December 31, 2016 . Note 1. Description of the Business and Significant Accounting Policies (Continued) Goodwill . The company’s goodwill is allocated to the following reporting units at June 30, 2017 , and December 31, 2016 , (in thousands): June 30, December 31, 2017 2016 Steel Operations Segment: Columbus Flat Roll Division $ 19,682 $ 19,682 The Techs 142,783 142,783 Vulcan Threaded Products 7,824 7,824 Roanoke Bar Division 29,041 29,041 Metals Recycling Operations Segment: Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division 95,000 95,000 OmniSource 93,874 97,096 Steel Fabrication Operations Segment 1,925 1,925 $ 390,129 $ 393,351 OmniSource goodwill decreased $3.2 million from December 31, 2016 to June 30, 2017 , in recognition of the 2017 tax benefit related to the normal amortization of the component of OmniSource tax-deductible goodwill in excess of book goodwill. Recently Adopted/Issued Accounting Standards In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (ASU 2015-11), 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. The company adopted ASU 2015-11 as required in the first quarter of 2017 on a prospective basis, and the adoption had no impact on its financial condition, results of operations, or cash flow. In May 2014, the FASB issued ASU 2014-09, which is codified in ASC 606, Revenue Recognition – Revenue from Contracts with Customers, which amends the guidance in former ASC 605, Revenue Recognition . FASB has since issued clarifying guidance in the form of ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Consideration (Reporting Revenue Gross versus Net) , ASU 2016-10, Revenue from Contract with Customers : Identifying Performance Obligations and Licensing , and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, collectively (ASC 606). 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. ASC 606 also requires additional disclosures to help users of financial statements better understand the nature, amount, timing, and potential uncertainty of revenue that is recognized. ASC 606 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, using a full retrospective or modified retrospective approach. The company is currently working through an adoption plan and has identified current revenue streams and initially analyzed those revenue streams pursuant to the new accounting requirements. The company intends to complete the adoption plan during the second half of 2017, including final determination of whether the accounting impact of ASC 606 significantly differs from the company’s current revenue accounting, evaluating and concluding on the timing and method of adoption and related disclosure, and determine whether implementation of the new standard may affect functions, processes and systems within the company. Based on our analysis within the adoption plan completed to date, the company preliminarily does not believe there will be significant change in the amount or timing of revenue recognized under the new standard, or significant changes required to the company’s functions, processes or systems. The company preliminarily intends to adopt ASU 2014-09 in the first quarter of 2018. These preliminary assessments may however change as we complete the adoption plan. 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 (ASU 2016-02). 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. Reclassifications The company early adopted, effective December 31, 2016, Improvement to Employee Share-based Payment Accounting (ASU 2016-09). Cash paid to tax authorities from shares withheld to satisfy the company’s statutory income tax withholding obligation of $2.1 million were reclassified to financing activities from operating activities in the six -month period ended June 30 , 2016, statement of cash flows. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share | |
Earnings Per Share | Note 2. Earnings Per Share Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company’s basic earnings per share. Common share equivalents represent potentially dilutive restricted stock units, deferred stock units, stock options and other equity-based awards; and are excluded from the computation in periods in which they have an anti-dilutive effect. There were no anti-dilutive common share equivalents at or for the three and six months ended June 30, 2017 and 2016 . The following tables present a reconciliation of the numerators and the denominators of the company’s basic and diluted earnings per share computations for the three and six months ended June 30, 2017 and 2016 (in thousands, except per share data): Three Months Ended June 30, 2017 2016 Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 153,933 241,343 $ 0.64 $ 141,969 243,655 $ 0.58 Dilutive common share equivalents - 1,678 - 1,737 Diluted earnings per share $ 153,933 243,021 $ 0.63 $ 141,969 245,392 $ 0.58 Six Months Ended June 30, 2017 2016 Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 354,750 242,143 $ 1.47 $ 204,706 243,429 $ 0.84 Dilutive common share equivalents - 1,641 - 1,571 Diluted earnings per share $ 354,750 243,784 $ 1.46 $ 204,706 245,000 $ 0.84 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventories | |
Inventories | Note 3. Inventories Inventories are stated at lower of cost or net realizable value. Cost is determined using a weighted average cost method for raw materials and supplies, and on a first-in, first-out, basis for other inventory. Inventory consisted of the following (in thousands): June 30, December 31, 2017 2016 Raw materials $ 616,240 $ 515,924 Supplies 375,453 383,134 Work in progress 124,949 103,606 Finished goods 302,090 272,547 Total inventories $ 1,418,732 $ 1,275,211 |
Changes in Equity
Changes in Equity | 6 Months Ended |
Jun. 30, 2017 | |
Changes in Equity | |
Changes in Equity | Note 4. 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. Additional Redeemable Common Treasury Paid-In Retained Noncontrolling Total Noncontrolling Stock Stock Capital Earnings Interests Equity Interests Balances at December 31, 2016 $ 641 $ (416,829) $ 1,132,749 $ 2,210,459 $ (149,561) $ 2,777,459 $ 111,240 Dividends declared - - - (74,707) - (74,707) - Share repurchases - (138,069) - - - (138,069) - Equity-based compensation - 3,773 8,301 (129) - 11,945 - Comprehensive and net income (loss) - - - 354,750 (3,137) 351,613 - Balances at June 30, 2017 $ 641 $ (551,125) $ 1,141,050 $ 2,490,373 $ (152,698) $ 2,928,241 $ 111,240 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 5. Derivative Financial Instruments The company is exposed to certain risks relating to its ongoing business operations. The company utilizes derivative instruments to mitigate commodity margin risk, 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, 2017 : Commodity Futures Long/Short Metric Tons Aluminum Long 4,125 Aluminum Short 4,700 Copper Long 8,131 Copper Short 22,169 The following summarizes the location and amounts of the fair values reported on the company’s balance sheets as of June 30, 2017 , and December 31, 2016 , and gains and losses related to derivatives included in the company’s statement of income for the three and six months ended June 30, 2017 and 2016 (in thousands): Asset Derivatives Liability Derivatives Balance sheet Fair Value Fair Value location June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Derivative instruments designated as fair value hedges Commodity futures Other current assets $ 597 $ 2,910 $ 2,538 $ 1,300 Derivative instruments not designated as hedges Commodity futures Other current assets 1,336 1,150 1,902 783 Total derivative instruments $ 1,933 $ 4,060 $ 4,440 $ 2,083 Note 5. Derivative Financial Instruments (Continued) The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements totaled $2.4 million at June 30, 2017 , and $3.2 million at December 31, 2016 , are reflected in other current assets in the consolidated balance sheets. Amount of gain (loss) recognized Location of gain Amount of gain (loss) recognized Location of gain in income on derivatives (loss) recognized in income on related hedged items (loss) recognized for the three months ended Hedged items in in income on for the three months ended in income on June 30, June 30, fair value hedge related hedged June 30, June 30, derivatives 2017 2016 relationships items 2017 2016 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ (3,398) $ (477) Firm commitments Costs of goods sold $ 2,167 $ (208) Inventory Costs of goods sold 1,014 541 Derivatives not designated $ 3,181 $ 333 as hedging instruments Commodity futures Costs of goods sold $ 2,384 $ 1,116 Amount of gain (loss) recognized Location of gain Amount of gain (loss) recognized Location of gain in income on derivatives (loss) recognized in income on related hedged items (loss) recognized for the six months ended Hedged items in in income on for the six months ended in income on June 30, June 30, fair value hedge on related June 30, June 30, derivatives 2017 2016 relationships hedged items 2017 2016 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ (3,551) $ 455 Firm commitments Costs of goods sold $ 2,706 $ (1,430) Inventory Costs of goods sold 1,509 819 Derivatives not designated $ 4,215 $ (611) as hedging instruments Commodity futures Costs of goods sold $ (1,962) $ 244 Derivatives accounted for as fair value hedges had ineffectiveness resulting in gains of $49,000 and losses of $47,000 during the three-month periods ended June 30, 2017 and 2016, respectively; and gains of $97,000 and losses of $91,000 during the six-month periods ended June 30, 2017 and 2016, respectively. Losses excluded from hedge effectiveness testing of $266,000 and $97,000 increased cost of goods sold during the three-month periods ended June 30, 2017 and 2016, respectively. Gains of $567,000 decreased costs of goods sold during the six-month period ended June 30, 2017 , and losses of $65,000 increased costs of goods sold during the six month period ended June 30, 2016 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Measurements | |
Fair Value Measurements | Note 6. 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. Note 6. Fair Value Measurements (Continued) 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, 2017 , and December 31, 2016 (in thousands): Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) June 30, 2017 Commodity futures – financial assets $ 1,933 $ - $ 1,933 $ - Commodity futures – financial liabilities 4,440 - 4,440 - December 31, 2016 Commodity futures – financial assets $ 4,060 $ - $ 4,060 $ - Commodity futures – financial liabilities 2,083 - 2,083 - 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 $2.5 billion (with a corresponding carrying amount in the consolidated balance sheet of $2.4 billion at June 30, 2017 , and December 31, 2016 ). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 7. Commitments and Contingencies The company is involved in various routine litigation matters, including administrative proceedings, regulatory proceedings, governmental investigations, environmental matters, and commercial and construction contract disputes, none of which are expected to have a material impact on our financial condition, results of operations, or liquidity . |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Information | |
Segment Information | Note 8. Segment Information The company’s operations are primarily organized and managed by reportable operating segments, which are steel operations, metals recycling operations, and steel fabrication operations. The segment operations are more fully described in Note 1 to the 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. Note 8. Segment Information (Continued) The company’s segment results are as follows (in thousands): Metals Steel For the three months ended Steel Recycling Fabrication June 30, 2017 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 1,690,973 $ 298,457 $ 197,834 $ 91,083 $ - $ 2,278,347 External Non-U.S. 67,269 45,072 32 - - 112,373 Other segments 63,710 350,487 143 615 (414,955) - 1,821,952 694,016 198,009 91,698 (414,955) 2,390,720 Operating income (loss) 269,929 16,495 20,147 (43,110) (1) 1,892 (2) 265,353 Income (loss) before income taxes 248,562 14,582 18,633 (48,350) 1,892 235,319 Depreciation and amortization 56,150 11,993 2,906 2,752 - 73,801 Capital expenditures 36,707 3,174 3,073 320 - 43,274 As of June 30, 2017 Assets $ 4,309,720 $ 1,009,650 $ 368,360 $ 1,123,951 (3) $ (141,551) (4) $ 6,670,130 Footnotes related to the three months ended June 30, 2017, segment results (in millions): (1) Corporate SG&A $ (13.4) (2) Gross profit increase from intra-company sales $ 1.9 Company-wide equity-based compensation (7.1) Profit sharing (20.1) Other, net (2.5) $ (43.1) (3) Cash and equivalents $ 860.2 (4) Elimination of intra-company receivables $ (117.6) Accounts receivable 12.8 Elimination of intra-company debt (11.6) Inventories 39.5 Other (12.4) Property, plant and equipment, net 163.9 $ (141.6) Intra-company debt 11.6 Other 36.0 $ 1,124.0 Note 8. Segment Information (Continued) Metals Steel For the three months ended Steel Recycling Fabrication June 30, 2016 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 1,408,993 $ 271,985 $ 170,477 $ 75,450 $ - $ 1,926,905 External Non-U.S. 57,711 39,075 65 146 - 96,997 Other segments 66,594 279,664 1,178 1,269 (348,705) - 1,533,298 590,724 171,720 76,865 (348,705) 2,023,902 Operating income (loss) 273,111 11,093 23,470 (45,569) (1) (5,983) (2) 256,122 Income (loss) before income taxes 250,683 8,086 21,514 (53,006) (5,983) 221,294 Depreciation and amortization 53,675 14,250 2,762 4,160 (52) 74,795 Capital expenditures 30,098 4,482 567 539 - 35,686 Footnotes related to the three months ended June 30, 2016, segment results (in millions): (1) Corporate SG&A $ (14.8) (2) Gross profit decrease from intra-company sales $ (6.0) Company-wide equity-based compensation (7.3) Profit sharing (18.5) Other, net (5.0) $ (45.6) Metals Steel For the six months ended Steel Recycling Fabrication June 30, 2017 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 3,324,603 $ 609,408 $ 391,869 $ 180,034 $ - $ 4,505,914 External Non-U.S. 154,972 97,957 93 - - 253,022 Other segments 118,053 706,788 155 949 (825,945) - 3,597,628 1,414,153 392,117 180,983 (825,945) 4,758,936 Operating income (loss) 618,461 34,344 43,873 (97,080) (1) 321 (2) 599,919 Income (loss) before income taxes 575,326 30,654 40,972 (107,702) 321 539,571 Depreciation and amortization 112,481 25,028 5,877 5,472 - 148,858 Capital expenditures 70,285 9,950 4,224 492 - 84,951 Footnotes related to the six months ended June 30, 2017, segment results (in millions): (1) Corporate SG&A $ (25.8) (2) Gross profit increase from intra-company sales $ 0.3 Company-wide equity-based compensation (16.7) Profit sharing (46.6) Other, net (8.0) $ (97.1) Note 8. Segment Information (Continued) Metals Steel For the six months ended Steel Recycling Fabrication June 30, 2016 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 2,565,962 $ 508,742 $ 350,518 $ 150,076 $ - $ 3,575,298 External Non-U.S. 117,918 71,725 79 183 - 189,905 Other segments 107,806 497,442 1,204 2,495 (608,947) - 2,791,686 1,077,909 351,801 152,754 (608,947) 3,765,203 Operating income (loss) 405,386 13,860 55,486 (77,499) (1) (9,146) (2) 388,087 Income (loss) before income taxes 360,058 7,863 51,530 (92,297) (9,146) 318,008 Depreciation and amortization 106,158 28,830 5,583 8,312 (103) 148,780 Capital expenditures 54,002 7,562 1,171 659 - 63,394 Footnotes related to the six months ended June 30, 2016, segment results (in millions): (1) Corporate SG&A $ (25.9) (2) Gross profit decrease from intra-company sales $ (9.1) Company-wide equity-based compensation (14.3) Profit sharing (26.7) Other, net (10.6) $ (77.5) |
Condensed Consolidating Informa
Condensed Consolidating Information | 6 Months Ended |
Jun. 30, 2017 | |
Condensed Consolidating Information | |
Condensed Consolidating Information | Note 9. 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 2021, 2022, 2023, 2024 and 2026. 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, 2016 . Condensed Consolidating Balance Sheets (in thousands) Combined Consolidating Total As of June 30, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ 858,083 $ 43,416 $ 7,344 $ - $ 908,843 Accounts receivable, net 288,263 1,394,316 39,611 (835,296) 886,894 Inventories 629,757 731,165 67,141 (9,331) 1,418,732 Other current assets 21,575 14,191 4,627 (3,205) 37,188 Total current assets 1,797,678 2,183,088 118,723 (847,832) 3,251,657 Property, plant and equipment, net 884,642 1,643,556 201,523 - 2,729,721 Intangible assets, net - 238,397 30,732 - 269,129 Goodwill - 382,305 7,824 - 390,129 Other assets, including investments in subs 2,673,406 7,587 5,487 (2,656,986) 29,494 Total assets $ 5,355,726 $ 4,454,933 $ 364,289 $ (3,504,818) $ 6,670,130 Accounts payable $ 184,903 $ 318,990 $ 90,871 $ (110,761) $ 484,003 Accrued expenses 175,777 231,871 8,456 (124,186) 291,918 Current maturities of long-term debt 702 - 45,908 (26,639) 19,971 Total current liabilities 361,382 550,861 145,235 (261,586) 795,892 Long-term debt 2,326,538 - 168,681 (140,882) 2,354,337 Other liabilities (413,133) 1,071,249 29,044 (206,740) 480,420 Total liabilities 2,274,787 1,622,110 342,960 (609,208) 3,630,649 Redeemable noncontrolling interests - - 111,240 - 111,240 Common stock 641 1,727,859 14,908 (1,742,767) 641 Treasury stock (551,125) - - - (551,125) Additional paid-in-capital 1,141,050 128,076 785,678 (913,754) 1,141,050 Retained earnings (deficit) 2,490,373 976,888 (737,799) (239,089) 2,490,373 Total Steel Dynamics, Inc. equity 3,080,939 2,832,823 62,787 (2,895,610) 3,080,939 Noncontrolling interests - - (152,698) - (152,698) Total equity 3,080,939 2,832,823 (89,911) (2,895,610) 2,928,241 Total liabilities and equity $ 5,355,726 $ 4,454,933 $ 364,289 $ (3,504,818) $ 6,670,130 Note 9. Condensed Consolidating Information (Continued) Combined Consolidating Total As of December 31, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ 766,685 $ 54,677 $ 20,121 $ - $ 841,483 Accounts receivable, net 229,148 1,257,245 23,689 (780,298) 729,784 Inventories 587,319 639,148 58,696 (9,952) 1,275,211 Other current assets 45,049 36,062 4,447 (2,361) 83,197 Total current assets 1,628,201 1,987,132 106,953 (792,611) 2,929,675 Property, plant and equipment, net 899,370 1,679,751 208,094 - 2,787,215 Intangible assets, net - 251,919 32,058 - 283,977 Goodwill - 385,527 7,824 - 393,351 Other assets, including investments in subs 2,769,884 7,335 5,832 (2,753,537) 29,514 Total assets $ 5,297,455 $ 4,311,664 $ 360,761 $ (3,546,148) $ 6,423,732 Accounts payable $ 141,089 $ 265,764 $ 89,659 $ (101,316) $ 395,196 Accrued expenses 198,085 220,917 8,793 (113,808) 313,987 Current maturities of long-term debt 674 700 29,347 (27,089) 3,632 Total current liabilities 339,848 487,381 127,799 (242,213) 712,815 Long-term debt 2,324,298 - 168,566 (139,670) 2,353,194 Other liabilities (293,711) 1,219,444 42,482 (499,191) 469,024 Total liabilities 2,370,435 1,706,825 338,847 (881,074) 3,535,033 Redeemable noncontrolling interests - - 111,240 - 111,240 Common stock 641 1,727,859 14,908 (1,742,767) 641 Treasury stock (416,829) - - - (416,829) Additional paid-in-capital 1,132,749 128,076 779,678 (907,754) 1,132,749 Retained earnings (deficit) 2,210,459 748,904 (734,351) (14,553) 2,210,459 Total Steel Dynamics, Inc. equity 2,927,020 2,604,839 60,235 (2,665,074) 2,927,020 Noncontrolling interests - - (149,561) - (149,561) Total equity 2,927,020 2,604,839 (89,326) (2,665,074) 2,777,459 Total liabilities and equity $ 5,297,455 $ 4,311,664 $ 360,761 $ (3,546,148) $ 6,423,732 Note 9. Condensed Consolidating Information (Continued) Condensed Consolidating Statements of Operations (in thousands) For the three months ended, Combined Consolidating Total June 30, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 926,855 $ 2,614,676 $ 144,938 $ (1,295,749) $ 2,390,720 Costs of goods sold 767,047 2,362,604 137,052 (1,268,501) 1,998,202 Gross profit 159,808 252,072 7,886 (27,248) 392,518 Selling, general and administrative 50,942 75,720 5,304 (4,801) 127,165 Operating income 108,866 176,352 2,582 (22,447) 265,353 Interest expense, net of capitalized interest 18,441 14,641 3,047 (2,260) 33,869 Other (income) expense, net (3,869) (2,146) (79) 2,259 (3,835) Income (loss) before income taxes and equity in net income of subsidiaries 94,294 163,857 (386) (22,446) 235,319 Income taxes 29,142 59,397 1,692 (7,859) 82,372 65,152 104,460 (2,078) (14,587) 152,947 Equity in net income of subsidiaries 88,781 - - (88,781) - Net loss attributable to noncontrolling interests - - 986 - 986 Net income (loss) attributable to Steel Dynamics, Inc. $ 153,933 $ 104,460 $ (1,092) $ (103,368) $ 153,933 For the three months ended, Combined Consolidating Total June 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 793,990 $ 2,206,348 $ 89,545 $ (1,065,981) $ 2,023,902 Costs of goods sold 627,246 1,957,570 94,986 (1,036,283) 1,643,519 Gross profit (loss) 166,744 248,778 (5,441) (29,698) 380,383 Selling, general and administrative 53,999 72,808 2,416 (4,962) 124,261 Operating income (loss) 112,745 175,970 (7,857) (24,736) 256,122 Interest expense, net of capitalized interest 17,837 18,352 2,451 (1,994) 36,646 Other (income) expense, net (2,271) 1,885 (3,426) 1,994 (1,818) Income (loss) before income taxes and equity in net income of subsidiaries 97,179 155,733 (6,882) (24,736) 221,294 Income taxes (benefit) 31,700 58,779 (589) (9,039) 80,851 65,479 96,954 (6,293) (15,697) 140,443 Equity in net income of subsidiaries 76,490 - - (76,490) - Net loss attributable to noncontrolling interests - - 1,526 - 1,526 Net income (loss) attributable to Steel Dynamics, Inc. $ 141,969 $ 96,954 $ (4,767) $ (92,187) $ 141,969 Note 9. Condensed Consolidating Information (Continued) For the six months ended, Combined Consolidating Total June 30, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 1,851,421 $ 5,186,914 $ 288,346 $ (2,567,745) $ 4,758,936 Costs of goods sold 1,478,626 4,652,268 275,093 (2,511,723) 3,894,264 Gross profit (loss) 372,795 534,646 13,253 (56,022) 864,672 Selling, general and administrative 112,597 152,002 10,357 (10,203) 264,753 Operating income (loss) 260,198 382,644 2,896 (45,819) 599,919 Interest expense, net of capitalized interest 36,522 29,764 6,313 (4,757) 67,842 Other (income) expense, net (7,123) (4,813) (315) 4,757 (7,494) Income (loss) before income taxes and equity in net income of subsidiaries 230,799 357,693 (3,102) (45,819) 539,571 Income taxes (benefit) 70,727 129,708 3,482 (15,959) 187,958 160,072 227,985 (6,584) (29,860) 351,613 Equity in net income of subsidiaries 194,678 - - (194,678) - Net loss attributable to noncontrolling interests - - 3,137 - 3,137 Net income (loss) attributable to Steel Dynamics, Inc. $ 354,750 $ 227,985 $ (3,447) $ (224,538) $ 354,750 For the six months ended, Combined Consolidating Total June 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 1,451,804 $ 4,063,692 $ 175,285 $ (1,925,578) $ 3,765,203 Costs of goods sold 1,175,425 3,659,391 186,016 (1,872,048) 3,148,784 Gross profit (loss) 276,379 404,301 (10,731) (53,530) 616,419 Selling, general and administrative 92,601 140,008 5,218 (9,495) 228,332 Operating income (loss) 183,778 264,293 (15,949) (44,035) 388,087 Interest expense, net of capitalized interest 36,024 36,752 4,711 (3,798) 73,689 Other (income) expense, net (4,479) 4,075 (7,004) 3,798 (3,610) Income (loss) before income taxes and - equity in net income of subsidiaries 152,233 223,466 (13,656) (44,035) 318,008 Income taxes (benefit) 48,968 84,274 (860) (16,135) 116,247 103,265 139,192 (12,796) (27,900) 201,761 Equity in net income of subsidiaries 101,441 - - (101,441) - Net loss attributable to noncontrolling interests 2,945 2,945 Net income (loss) attributable to Steel Dynamics, Inc. $ 204,706 $ 139,192 $ (9,851) $ (129,341) $ 204,706 Note 9. Condensed Consolidating Information (Continued) Condensed Consolidating Statements of Cash Flows (in thousands) For the six months ended, Combined Consolidating Total June 30, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Net cash provided (used in) by operating activities $ 60,686 $ 279,513 $ (19,857) $ 1,115 $ 321,457 Net cash used in investing activities (33,305) (22,599) (503) 761 (55,646) Net cash provided by (used in) financing activities 64,017 (268,175) 7,583 (1,876) (198,451) Increase (decrease) in cash and equivalents 91,398 (11,261) (12,777) - 67,360 Cash and equivalents at beginning of period 766,685 54,677 20,121 - 841,483 Cash and equivalents at end of period $ 858,083 $ 43,416 $ 7,344 $ - $ 908,843 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 $ 185,848 $ 264,839 $ (2,066) $ 379 $ 449,000 Net cash used in investing activities (19,031) (35,026) (4,746) (331) (59,134) Net cash provided by (used in) financing activities 143,324 (222,896) 15,388 (48) (64,232) Increase in cash and equivalents 310,141 6,917 8,576 - 325,634 Cash and equivalents at beginning of period 636,877 81,976 8,179 - 727,032 Cash and equivalents at end of period $ 947,018 $ 88,893 $ 16,755 $ - $ 1,052,666 |
Description of the Business a15
Description of the Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Description of the Business and Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation . The consolidated financial statements include the accounts of SDI, together with its wholly and majority-owned or controlled subsidiaries, after elimination of significant intercompany accounts and transactions. Noncontrolling interests represent the noncontrolling owner’s proportionate share in the equity, income, or losses of the company’s majority-owned or controlled consolidated subsidiaries. |
Use of Estimates | Use of Estimates. These financial statements are prepared in conformity with accounting principles generally accepted in the United States, and accordingly, include amounts that require management to make estimates and assumptions that affect the amounts reported in the financial statements and in the notes thereto. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment, intangible assets, and goodwill; valuation allowances for trade receivables, inventories and deferred income tax assets; unrecognized tax benefits; potential environmental liabilities; and litigation claims and settlements. Actual results may differ from these estimates and assumptions. In the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the interim period results. These financial statements and notes should be read in conjunction with the audited financial statements and notes thereto included in the company’s Annual Report on Form 10-K for the year ended December 31, 2016 . |
Goodwill | Goodwill . The company’s goodwill is allocated to the following reporting units at June 30, 2017 , and December 31, 2016 , (in thousands): June 30, December 31, 2017 2016 Steel Operations Segment: Columbus Flat Roll Division $ 19,682 $ 19,682 The Techs 142,783 142,783 Vulcan Threaded Products 7,824 7,824 Roanoke Bar Division 29,041 29,041 Metals Recycling Operations Segment: Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division 95,000 95,000 OmniSource 93,874 97,096 Steel Fabrication Operations Segment 1,925 1,925 $ 390,129 $ 393,351 OmniSource goodwill decreased $3.2 million from December 31, 2016 to June 30, 2017 , in recognition of the 2017 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 Adopted/Issued Accounting Standards In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (ASU 2015-11), 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. The company adopted ASU 2015-11 as required in the first quarter of 2017 on a prospective basis, and the adoption had no impact on its financial condition, results of operations, or cash flow. In May 2014, the FASB issued ASU 2014-09, which is codified in ASC 606, Revenue Recognition – Revenue from Contracts with Customers, which amends the guidance in former ASC 605, Revenue Recognition . FASB has since issued clarifying guidance in the form of ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Consideration (Reporting Revenue Gross versus Net) , ASU 2016-10, Revenue from Contract with Customers : Identifying Performance Obligations and Licensing , and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, collectively (ASC 606). 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. ASC 606 also requires additional disclosures to help users of financial statements better understand the nature, amount, timing, and potential uncertainty of revenue that is recognized. ASC 606 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, using a full retrospective or modified retrospective approach. The company is currently working through an adoption plan and has identified current revenue streams and initially analyzed those revenue streams pursuant to the new accounting requirements. The company intends to complete the adoption plan during the second half of 2017, including final determination of whether the accounting impact of ASC 606 significantly differs from the company’s current revenue accounting, evaluating and concluding on the timing and method of adoption and related disclosure, and determine whether implementation of the new standard may affect functions, processes and systems within the company. Based on our analysis within the adoption plan completed to date, the company preliminarily does not believe there will be significant change in the amount or timing of revenue recognized under the new standard, or significant changes required to the company’s functions, processes or systems. The company preliminarily intends to adopt ASU 2014-09 in the first quarter of 2018. These preliminary assessments may however change as we complete the adoption plan. 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 (ASU 2016-02). 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. |
Description of the Business a16
Description of the Business and Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Description of the Business and Significant Accounting Policies | |
Schedule of Goodwill | The company’s goodwill is allocated to the following reporting units at June 30, 2017 , and December 31, 2016 , (in thousands): June 30, December 31, 2017 2016 Steel Operations Segment: Columbus Flat Roll Division $ 19,682 $ 19,682 The Techs 142,783 142,783 Vulcan Threaded Products 7,824 7,824 Roanoke Bar Division 29,041 29,041 Metals Recycling Operations Segment: Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division 95,000 95,000 OmniSource 93,874 97,096 Steel Fabrication Operations Segment 1,925 1,925 $ 390,129 $ 393,351 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share | |
Reconciliation of Basic and Diluted Earnings Per Share | The following tables present a reconciliation of the numerators and the denominators of the company’s basic and diluted earnings per share computations for the three and six months ended June 30, 2017 and 2016 (in thousands, except per share data): Three Months Ended June 30, 2017 2016 Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 153,933 241,343 $ 0.64 $ 141,969 243,655 $ 0.58 Dilutive common share equivalents - 1,678 - 1,737 Diluted earnings per share $ 153,933 243,021 $ 0.63 $ 141,969 245,392 $ 0.58 Six Months Ended June 30, 2017 2016 Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 354,750 242,143 $ 1.47 $ 204,706 243,429 $ 0.84 Dilutive common share equivalents - 1,641 - 1,571 Diluted earnings per share $ 354,750 243,784 $ 1.46 $ 204,706 245,000 $ 0.84 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventories | |
Schedule of Inventories | Inventories are stated at lower of cost or net realizable value. Cost is determined using a weighted average cost method for raw materials and supplies, and on a first-in, first-out, basis for other inventory. Inventory consisted of the following (in thousands): June 30, December 31, 2017 2016 Raw materials $ 616,240 $ 515,924 Supplies 375,453 383,134 Work in progress 124,949 103,606 Finished goods 302,090 272,547 Total inventories $ 1,418,732 $ 1,275,211 |
Changes in Equity (Tables)
Changes in Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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. Additional Redeemable Common Treasury Paid-In Retained Noncontrolling Total Noncontrolling Stock Stock Capital Earnings Interests Equity Interests Balances at December 31, 2016 $ 641 $ (416,829) $ 1,132,749 $ 2,210,459 $ (149,561) $ 2,777,459 $ 111,240 Dividends declared - - - (74,707) - (74,707) - Share repurchases - (138,069) - - - (138,069) - Equity-based compensation - 3,773 8,301 (129) - 11,945 - Comprehensive and net income (loss) - - - 354,750 (3,137) 351,613 - Balances at June 30, 2017 $ 641 $ (551,125) $ 1,141,050 $ 2,490,373 $ (152,698) $ 2,928,241 $ 111,240 |
Derivative Financial Instrume20
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Financial Instruments | |
Schedule of Notional Amounts of Outstanding Derivative Positions | . The following summarizes the company’s futures contract commitments as of June 30, 2017 : Commodity Futures Long/Short Metric Tons Aluminum Long 4,125 Aluminum Short 4,700 Copper Long 8,131 Copper Short 22,169 |
Schedule of Derivative Instruments Statements of Financial Performance and Financial Position | The following summarizes the location and amounts of the fair values reported on the company’s balance sheets as of June 30, 2017 , and December 31, 2016 , and gains and losses related to derivatives included in the company’s statement of income for the three and six months ended June 30, 2017 and 2016 (in thousands): Asset Derivatives Liability Derivatives Balance sheet Fair Value Fair Value location June 30, 2017 December 31, 2016 June 30, 2017 December 31, 2016 Derivative instruments designated as fair value hedges Commodity futures Other current assets $ 597 $ 2,910 $ 2,538 $ 1,300 Derivative instruments not designated as hedges Commodity futures Other current assets 1,336 1,150 1,902 783 Total derivative instruments $ 1,933 $ 4,060 $ 4,440 $ 2,083 Note 5. Derivative Financial Instruments (Continued) The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements totaled $2.4 million at June 30, 2017 , and $3.2 million at December 31, 2016 , are reflected in other current assets in the consolidated balance sheets. Amount of gain (loss) recognized Location of gain Amount of gain (loss) recognized Location of gain in income on derivatives (loss) recognized in income on related hedged items (loss) recognized for the three months ended Hedged items in in income on for the three months ended in income on June 30, June 30, fair value hedge related hedged June 30, June 30, derivatives 2017 2016 relationships items 2017 2016 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ (3,398) $ (477) Firm commitments Costs of goods sold $ 2,167 $ (208) Inventory Costs of goods sold 1,014 541 Derivatives not designated $ 3,181 $ 333 as hedging instruments Commodity futures Costs of goods sold $ 2,384 $ 1,116 Amount of gain (loss) recognized Location of gain Amount of gain (loss) recognized Location of gain in income on derivatives (loss) recognized in income on related hedged items (loss) recognized for the six months ended Hedged items in in income on for the six months ended in income on June 30, June 30, fair value hedge on related June 30, June 30, derivatives 2017 2016 relationships hedged items 2017 2016 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ (3,551) $ 455 Firm commitments Costs of goods sold $ 2,706 $ (1,430) Inventory Costs of goods sold 1,509 819 Derivatives not designated $ 4,215 $ (611) as hedging instruments Commodity futures Costs of goods sold $ (1,962) $ 244 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Measurements | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Note 6. Fair Value Measurements (Continued) 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, 2017 , and December 31, 2016 (in thousands): Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) June 30, 2017 Commodity futures – financial assets $ 1,933 $ - $ 1,933 $ - Commodity futures – financial liabilities 4,440 - 4,440 - December 31, 2016 Commodity futures – financial assets $ 4,060 $ - $ 4,060 $ - Commodity futures – financial liabilities 2,083 - 2,083 - |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Information | |
Schedule of operating segment results | Note 8. Segment Information (Continued) The company’s segment results are as follows (in thousands): Metals Steel For the three months ended Steel Recycling Fabrication June 30, 2017 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 1,690,973 $ 298,457 $ 197,834 $ 91,083 $ - $ 2,278,347 External Non-U.S. 67,269 45,072 32 - - 112,373 Other segments 63,710 350,487 143 615 (414,955) - 1,821,952 694,016 198,009 91,698 (414,955) 2,390,720 Operating income (loss) 269,929 16,495 20,147 (43,110) (1) 1,892 (2) 265,353 Income (loss) before income taxes 248,562 14,582 18,633 (48,350) 1,892 235,319 Depreciation and amortization 56,150 11,993 2,906 2,752 - 73,801 Capital expenditures 36,707 3,174 3,073 320 - 43,274 As of June 30, 2017 Assets $ 4,309,720 $ 1,009,650 $ 368,360 $ 1,123,951 (3) $ (141,551) (4) $ 6,670,130 Footnotes related to the three months ended June 30, 2017, segment results (in millions): (1) Corporate SG&A $ (13.4) (2) Gross profit increase from intra-company sales $ 1.9 Company-wide equity-based compensation (7.1) Profit sharing (20.1) Other, net (2.5) $ (43.1) (3) Cash and equivalents $ 860.2 (4) Elimination of intra-company receivables $ (117.6) Accounts receivable 12.8 Elimination of intra-company debt (11.6) Inventories 39.5 Other (12.4) Property, plant and equipment, net 163.9 $ (141.6) Intra-company debt 11.6 Other 36.0 $ 1,124.0 Note 8. Segment Information (Continued) Metals Steel For the three months ended Steel Recycling Fabrication June 30, 2016 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 1,408,993 $ 271,985 $ 170,477 $ 75,450 $ - $ 1,926,905 External Non-U.S. 57,711 39,075 65 146 - 96,997 Other segments 66,594 279,664 1,178 1,269 (348,705) - 1,533,298 590,724 171,720 76,865 (348,705) 2,023,902 Operating income (loss) 273,111 11,093 23,470 (45,569) (1) (5,983) (2) 256,122 Income (loss) before income taxes 250,683 8,086 21,514 (53,006) (5,983) 221,294 Depreciation and amortization 53,675 14,250 2,762 4,160 (52) 74,795 Capital expenditures 30,098 4,482 567 539 - 35,686 Footnotes related to the three months ended June 30, 2016, segment results (in millions): (1) Corporate SG&A $ (14.8) (2) Gross profit decrease from intra-company sales $ (6.0) Company-wide equity-based compensation (7.3) Profit sharing (18.5) Other, net (5.0) $ (45.6) Metals Steel For the six months ended Steel Recycling Fabrication June 30, 2017 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 3,324,603 $ 609,408 $ 391,869 $ 180,034 $ - $ 4,505,914 External Non-U.S. 154,972 97,957 93 - - 253,022 Other segments 118,053 706,788 155 949 (825,945) - 3,597,628 1,414,153 392,117 180,983 (825,945) 4,758,936 Operating income (loss) 618,461 34,344 43,873 (97,080) (1) 321 (2) 599,919 Income (loss) before income taxes 575,326 30,654 40,972 (107,702) 321 539,571 Depreciation and amortization 112,481 25,028 5,877 5,472 - 148,858 Capital expenditures 70,285 9,950 4,224 492 - 84,951 Footnotes related to the six months ended June 30, 2017, segment results (in millions): (1) Corporate SG&A $ (25.8) (2) Gross profit increase from intra-company sales $ 0.3 Company-wide equity-based compensation (16.7) Profit sharing (46.6) Other, net (8.0) $ (97.1) Note 8. Segment Information (Continued) Metals Steel For the six months ended Steel Recycling Fabrication June 30, 2016 Operations Operations Operations Other Eliminations Consolidated Net Sales External $ 2,565,962 $ 508,742 $ 350,518 $ 150,076 $ - $ 3,575,298 External Non-U.S. 117,918 71,725 79 183 - 189,905 Other segments 107,806 497,442 1,204 2,495 (608,947) - 2,791,686 1,077,909 351,801 152,754 (608,947) 3,765,203 Operating income (loss) 405,386 13,860 55,486 (77,499) (1) (9,146) (2) 388,087 Income (loss) before income taxes 360,058 7,863 51,530 (92,297) (9,146) 318,008 Depreciation and amortization 106,158 28,830 5,583 8,312 (103) 148,780 Capital expenditures 54,002 7,562 1,171 659 - 63,394 Footnotes related to the six months ended June 30, 2016, segment results (in millions): (1) Corporate SG&A $ (25.9) (2) Gross profit decrease from intra-company sales $ (9.1) Company-wide equity-based compensation (14.3) Profit sharing (26.7) Other, net (10.6) $ (77.5) |
Condensed Consolidating Infor23
Condensed Consolidating Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Condensed Consolidating Information | |
Schedule of Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets (in thousands) Combined Consolidating Total As of June 30, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ 858,083 $ 43,416 $ 7,344 $ - $ 908,843 Accounts receivable, net 288,263 1,394,316 39,611 (835,296) 886,894 Inventories 629,757 731,165 67,141 (9,331) 1,418,732 Other current assets 21,575 14,191 4,627 (3,205) 37,188 Total current assets 1,797,678 2,183,088 118,723 (847,832) 3,251,657 Property, plant and equipment, net 884,642 1,643,556 201,523 - 2,729,721 Intangible assets, net - 238,397 30,732 - 269,129 Goodwill - 382,305 7,824 - 390,129 Other assets, including investments in subs 2,673,406 7,587 5,487 (2,656,986) 29,494 Total assets $ 5,355,726 $ 4,454,933 $ 364,289 $ (3,504,818) $ 6,670,130 Accounts payable $ 184,903 $ 318,990 $ 90,871 $ (110,761) $ 484,003 Accrued expenses 175,777 231,871 8,456 (124,186) 291,918 Current maturities of long-term debt 702 - 45,908 (26,639) 19,971 Total current liabilities 361,382 550,861 145,235 (261,586) 795,892 Long-term debt 2,326,538 - 168,681 (140,882) 2,354,337 Other liabilities (413,133) 1,071,249 29,044 (206,740) 480,420 Total liabilities 2,274,787 1,622,110 342,960 (609,208) 3,630,649 Redeemable noncontrolling interests - - 111,240 - 111,240 Common stock 641 1,727,859 14,908 (1,742,767) 641 Treasury stock (551,125) - - - (551,125) Additional paid-in-capital 1,141,050 128,076 785,678 (913,754) 1,141,050 Retained earnings (deficit) 2,490,373 976,888 (737,799) (239,089) 2,490,373 Total Steel Dynamics, Inc. equity 3,080,939 2,832,823 62,787 (2,895,610) 3,080,939 Noncontrolling interests - - (152,698) - (152,698) Total equity 3,080,939 2,832,823 (89,911) (2,895,610) 2,928,241 Total liabilities and equity $ 5,355,726 $ 4,454,933 $ 364,289 $ (3,504,818) $ 6,670,130 Note 9. Condensed Consolidating Information (Continued) Combined Consolidating Total As of December 31, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Cash and equivalents $ 766,685 $ 54,677 $ 20,121 $ - $ 841,483 Accounts receivable, net 229,148 1,257,245 23,689 (780,298) 729,784 Inventories 587,319 639,148 58,696 (9,952) 1,275,211 Other current assets 45,049 36,062 4,447 (2,361) 83,197 Total current assets 1,628,201 1,987,132 106,953 (792,611) 2,929,675 Property, plant and equipment, net 899,370 1,679,751 208,094 - 2,787,215 Intangible assets, net - 251,919 32,058 - 283,977 Goodwill - 385,527 7,824 - 393,351 Other assets, including investments in subs 2,769,884 7,335 5,832 (2,753,537) 29,514 Total assets $ 5,297,455 $ 4,311,664 $ 360,761 $ (3,546,148) $ 6,423,732 Accounts payable $ 141,089 $ 265,764 $ 89,659 $ (101,316) $ 395,196 Accrued expenses 198,085 220,917 8,793 (113,808) 313,987 Current maturities of long-term debt 674 700 29,347 (27,089) 3,632 Total current liabilities 339,848 487,381 127,799 (242,213) 712,815 Long-term debt 2,324,298 - 168,566 (139,670) 2,353,194 Other liabilities (293,711) 1,219,444 42,482 (499,191) 469,024 Total liabilities 2,370,435 1,706,825 338,847 (881,074) 3,535,033 Redeemable noncontrolling interests - - 111,240 - 111,240 Common stock 641 1,727,859 14,908 (1,742,767) 641 Treasury stock (416,829) - - - (416,829) Additional paid-in-capital 1,132,749 128,076 779,678 (907,754) 1,132,749 Retained earnings (deficit) 2,210,459 748,904 (734,351) (14,553) 2,210,459 Total Steel Dynamics, Inc. equity 2,927,020 2,604,839 60,235 (2,665,074) 2,927,020 Noncontrolling interests - - (149,561) - (149,561) Total equity 2,927,020 2,604,839 (89,326) (2,665,074) 2,777,459 Total liabilities and equity $ 5,297,455 $ 4,311,664 $ 360,761 $ (3,546,148) $ 6,423,732 |
Schedule of Condensed Consolidating Statements of Operations | Condensed Consolidating Statements of Operations (in thousands) For the three months ended, Combined Consolidating Total June 30, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 926,855 $ 2,614,676 $ 144,938 $ (1,295,749) $ 2,390,720 Costs of goods sold 767,047 2,362,604 137,052 (1,268,501) 1,998,202 Gross profit 159,808 252,072 7,886 (27,248) 392,518 Selling, general and administrative 50,942 75,720 5,304 (4,801) 127,165 Operating income 108,866 176,352 2,582 (22,447) 265,353 Interest expense, net of capitalized interest 18,441 14,641 3,047 (2,260) 33,869 Other (income) expense, net (3,869) (2,146) (79) 2,259 (3,835) Income (loss) before income taxes and equity in net income of subsidiaries 94,294 163,857 (386) (22,446) 235,319 Income taxes 29,142 59,397 1,692 (7,859) 82,372 65,152 104,460 (2,078) (14,587) 152,947 Equity in net income of subsidiaries 88,781 - - (88,781) - Net loss attributable to noncontrolling interests - - 986 - 986 Net income (loss) attributable to Steel Dynamics, Inc. $ 153,933 $ 104,460 $ (1,092) $ (103,368) $ 153,933 For the three months ended, Combined Consolidating Total June 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 793,990 $ 2,206,348 $ 89,545 $ (1,065,981) $ 2,023,902 Costs of goods sold 627,246 1,957,570 94,986 (1,036,283) 1,643,519 Gross profit (loss) 166,744 248,778 (5,441) (29,698) 380,383 Selling, general and administrative 53,999 72,808 2,416 (4,962) 124,261 Operating income (loss) 112,745 175,970 (7,857) (24,736) 256,122 Interest expense, net of capitalized interest 17,837 18,352 2,451 (1,994) 36,646 Other (income) expense, net (2,271) 1,885 (3,426) 1,994 (1,818) Income (loss) before income taxes and equity in net income of subsidiaries 97,179 155,733 (6,882) (24,736) 221,294 Income taxes (benefit) 31,700 58,779 (589) (9,039) 80,851 65,479 96,954 (6,293) (15,697) 140,443 Equity in net income of subsidiaries 76,490 - - (76,490) - Net loss attributable to noncontrolling interests - - 1,526 - 1,526 Net income (loss) attributable to Steel Dynamics, Inc. $ 141,969 $ 96,954 $ (4,767) $ (92,187) $ 141,969 Note 9. Condensed Consolidating Information (Continued) For the six months ended, Combined Consolidating Total June 30, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 1,851,421 $ 5,186,914 $ 288,346 $ (2,567,745) $ 4,758,936 Costs of goods sold 1,478,626 4,652,268 275,093 (2,511,723) 3,894,264 Gross profit (loss) 372,795 534,646 13,253 (56,022) 864,672 Selling, general and administrative 112,597 152,002 10,357 (10,203) 264,753 Operating income (loss) 260,198 382,644 2,896 (45,819) 599,919 Interest expense, net of capitalized interest 36,522 29,764 6,313 (4,757) 67,842 Other (income) expense, net (7,123) (4,813) (315) 4,757 (7,494) Income (loss) before income taxes and equity in net income of subsidiaries 230,799 357,693 (3,102) (45,819) 539,571 Income taxes (benefit) 70,727 129,708 3,482 (15,959) 187,958 160,072 227,985 (6,584) (29,860) 351,613 Equity in net income of subsidiaries 194,678 - - (194,678) - Net loss attributable to noncontrolling interests - - 3,137 - 3,137 Net income (loss) attributable to Steel Dynamics, Inc. $ 354,750 $ 227,985 $ (3,447) $ (224,538) $ 354,750 For the six months ended, Combined Consolidating Total June 30, 2016 Parent Guarantors Non-Guarantors Adjustments Consolidated Net sales $ 1,451,804 $ 4,063,692 $ 175,285 $ (1,925,578) $ 3,765,203 Costs of goods sold 1,175,425 3,659,391 186,016 (1,872,048) 3,148,784 Gross profit (loss) 276,379 404,301 (10,731) (53,530) 616,419 Selling, general and administrative 92,601 140,008 5,218 (9,495) 228,332 Operating income (loss) 183,778 264,293 (15,949) (44,035) 388,087 Interest expense, net of capitalized interest 36,024 36,752 4,711 (3,798) 73,689 Other (income) expense, net (4,479) 4,075 (7,004) 3,798 (3,610) Income (loss) before income taxes and - equity in net income of subsidiaries 152,233 223,466 (13,656) (44,035) 318,008 Income taxes (benefit) 48,968 84,274 (860) (16,135) 116,247 103,265 139,192 (12,796) (27,900) 201,761 Equity in net income of subsidiaries 101,441 - - (101,441) - Net loss attributable to noncontrolling interests 2,945 2,945 Net income (loss) attributable to Steel Dynamics, Inc. $ 204,706 $ 139,192 $ (9,851) $ (129,341) $ 204,706 |
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, 2017 Parent Guarantors Non-Guarantors Adjustments Consolidated Net cash provided (used in) by operating activities $ 60,686 $ 279,513 $ (19,857) $ 1,115 $ 321,457 Net cash used in investing activities (33,305) (22,599) (503) 761 (55,646) Net cash provided by (used in) financing activities 64,017 (268,175) 7,583 (1,876) (198,451) Increase (decrease) in cash and equivalents 91,398 (11,261) (12,777) - 67,360 Cash and equivalents at beginning of period 766,685 54,677 20,121 - 841,483 Cash and equivalents at end of period $ 858,083 $ 43,416 $ 7,344 $ - $ 908,843 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 $ 185,848 $ 264,839 $ (2,066) $ 379 $ 449,000 Net cash used in investing activities (19,031) (35,026) (4,746) (331) (59,134) Net cash provided by (used in) financing activities 143,324 (222,896) 15,388 (48) (64,232) Increase in cash and equivalents 310,141 6,917 8,576 - 325,634 Cash and equivalents at beginning of period 636,877 81,976 8,179 - 727,032 Cash and equivalents at end of period $ 947,018 $ 88,893 $ 16,755 $ - $ 1,052,666 |
Description of the Business a24
Description of the Business and Significant Accounting Policies (Segments) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Steel Operations | ||||
Segment Reporting Information | ||||
Percentage of external net sales | 73.00% | 72.00% | 73.00% | 71.00% |
Metals Recycling Operations | ||||
Segment Reporting Information | ||||
Percentage of external net sales | 14.00% | 15.00% | 15.00% | 15.00% |
Steel Fabrication Operations | ||||
Segment Reporting Information | ||||
Percentage of external net sales | 8.00% | 8.00% | 8.00% | 9.00% |
Description of the Business a25
Description of the Business and Significant Accounting Policies (Goodwill) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Goodwill | ||
Goodwill | $ 390,129 | $ 393,351 |
OmniSource | ||
Goodwill | ||
Goodwill decrease due to tax benefit related to the normal amortization of the component | 3,200 | |
Steel Operations | Columbus Flat Roll Division | ||
Goodwill | ||
Goodwill | 19,682 | 19,682 |
Steel Operations | The Techs | ||
Goodwill | ||
Goodwill | 142,783 | 142,783 |
Steel Operations | Vulcan Steel Products [Member] | ||
Goodwill | ||
Goodwill | 7,824 | 7,824 |
Steel Operations | Roanoke Bar Division | ||
Goodwill | ||
Goodwill | 29,041 | 29,041 |
Metals Recycling Operations | Butler Flat Roll Division, Structural and Rail Division, and Engineered Bar Division | ||
Goodwill | ||
Goodwill | 95,000 | 95,000 |
Metals Recycling Operations | OmniSource | ||
Goodwill | ||
Goodwill | 93,874 | 97,096 |
Steel Fabrication Operations | New Millennium Building Systems | ||
Goodwill | ||
Goodwill | $ 1,925 | $ 1,925 |
Description of the Business a26
Description of the Business and Significant Accounting Policies (Recently Adopted/Issued Accounting Standards) (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Accounting Standards Update 2016-09 [Member] | |
New Accounting Pronouncement, Early Adoption [Line Items] | |
Cash paid to tax authorities from shares withheld to satisfy statutory income tax withholding obligation | $ 2.1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net Income (Numerator) | ||||
Basic earnings per share - net income (in dollars) | $ 153,933 | $ 141,969 | $ 354,750 | $ 204,706 |
Diluted earnings per share - net income (in dollars) | $ 153,933 | $ 141,969 | $ 354,750 | $ 204,706 |
Weighted average common shares outstanding (in shares) | ||||
Weighted average common shares outstanding - basic (in shares) | 241,343 | 243,655 | 242,143 | 243,429 |
Dilutive common share equivalents (in shares) | 1,678 | 1,737 | 1,641 | 1,571 |
Weighted average common shares outstanding - diluted (in shares) | 243,021 | 245,392 | 243,784 | 245,000 |
Per Share Amount | ||||
Basic (in dollars per share) | $ 0.64 | $ 0.58 | $ 1.47 | $ 0.84 |
Diluted (in dollars per share) | $ 0.63 | $ 0.58 | $ 1.46 | $ 0.84 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Inventories | ||
Raw materials | $ 616,240 | $ 515,924 |
Supplies | 375,453 | 383,134 |
Work in progress | 124,949 | 103,606 |
Finished goods | 302,090 | 272,547 |
Total inventories | $ 1,418,732 | $ 1,275,211 |
Changes in Equity (Rollforward)
Changes in Equity (Rollforward) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Balances | $ 2,777,459 |
Dividends declared | (74,707) |
Share repurchases | (138,069) |
Equity-based compensation | 11,945 |
Comprehensive and net income (loss) | 351,613 |
Balances | 2,928,241 |
Common Stock | |
Balances | 641 |
Balances | 641 |
Treasury Stock | |
Balances | (416,829) |
Share repurchases | (138,069) |
Equity-based compensation | 3,773 |
Balances | (551,125) |
Additional Paid-In Capital | |
Balances | 1,132,749 |
Equity-based compensation | 8,301 |
Balances | 1,141,050 |
Retained Earnings | |
Balances | 2,210,459 |
Dividends declared | (74,707) |
Equity-based compensation | (129) |
Comprehensive and net income (loss) | 354,750 |
Balances | 2,490,373 |
Noncontrolling Interests | |
Balances | (149,561) |
Comprehensive and net income (loss) | (3,137) |
Balances | (152,698) |
Redeemable Noncontrolling Interest | |
Balances | 111,240 |
Balances | $ 111,240 |
Derivative Financial Instrume30
Derivative Financial Instruments (Narrative) (Details) - Futures - Commodity contract - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Other current assets | |||||
Commodity contract commitments | |||||
Fair value of derivatives including required margin deposits | $ 2,400 | $ 2,400 | $ 3,200 | ||
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 | 49 | $ (47) | 97 | $ (91) | |
Gain (loss) excluded from hedge effectiveness testing | $ (266) | $ (97) | $ 567 | $ (65) |
Derivative Financial Instrume31
Derivative Financial Instruments (Schedule of Notional Amounts of Outstanding Derivative Positions) (Details) - Futures | 6 Months Ended |
Jun. 30, 2017T | |
Aluminum | Long | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 4,125 |
Aluminum | Short | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 4,700 |
Copper | Long | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 8,131 |
Copper | Short | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 22,169 |
Derivative Financial Instrume32
Derivative Financial Instruments (Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Commodity futures, asset derivatives | $ 1,933 | $ 4,060 |
Commodity futures, liability derivatives | 4,440 | 2,083 |
Futures | Commodity contract | Designated as hedging instrument | Other current assets | ||
Commodity futures, asset derivatives | 597 | 2,910 |
Commodity futures, liability derivatives | 2,538 | 1,300 |
Futures | Commodity contract | Not designated as hedging instrument | Other current assets | ||
Commodity futures, asset derivatives | 1,336 | 1,150 |
Commodity futures, liability derivatives | $ 1,902 | $ 783 |
Derivative Financial Instrume33
Derivative Financial Instruments (Schedule of Derivatives Instruments Statements of Financial Position) (Details) - Cost of goods sold - Futures - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Designated as hedging instrument | ||||
Amount of gain (loss) recognized in income on derivatives | $ (3,398) | $ (477) | $ (3,551) | $ 455 |
Amount of gain (loss) recognized in income on related hedged items | 3,181 | 333 | 4,215 | (611) |
Designated as hedging instrument | Firm commitments | ||||
Amount of gain (loss) recognized in income on related hedged items | 2,167 | (208) | 2,706 | (1,430) |
Designated as hedging instrument | Inventory | ||||
Amount of gain (loss) recognized in income on related hedged items | 1,014 | 541 | 1,509 | 819 |
Not designated as hedging instrument | ||||
Amount of gain (loss) recognized in income on derivatives | $ 2,384 | $ 1,116 | $ (1,962) | $ 244 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | $ 1,933 | $ 4,060 |
Commodity futures - financial liabilities | 4,440 | 2,083 |
Fair value of long-term debt, including current maturities | 2,500,000 | |
Outstanding Balance | 2,400,000 | 2,400,000 |
Futures | Recurring | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 1,933 | 4,060 |
Commodity futures - financial liabilities | 4,440 | 2,083 |
Futures | Recurring | Fair Value, Inputs, Level 2 [Member] | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 1,933 | 4,060 |
Commodity futures - financial liabilities | $ 4,440 | $ 2,083 |
Segment Information - Results (
Segment Information - Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information | |||||
Net sales | $ 2,390,720 | $ 2,023,902 | $ 4,758,936 | $ 3,765,203 | |
Operating income (loss) | 265,353 | 256,122 | 599,919 | 388,087 | |
Income (loss) before income taxes | 235,319 | 221,294 | 539,571 | 318,008 | |
Depreciation and amortization | 73,801 | 74,795 | 148,858 | 148,780 | |
Capital expenditures | 43,274 | 35,686 | 84,951 | 63,394 | |
Assets | 6,670,130 | 6,670,130 | $ 6,423,732 | ||
U.S. | |||||
Segment Reporting Information | |||||
Net sales | 2,278,347 | 1,926,905 | 4,505,914 | 3,575,298 | |
Non-U.S. | |||||
Segment Reporting Information | |||||
Net sales | 112,373 | 96,997 | 253,022 | 189,905 | |
Steel Operations | |||||
Segment Reporting Information | |||||
Net sales | 1,821,952 | 1,533,298 | 3,597,628 | 2,791,686 | |
Operating income (loss) | 269,929 | 273,111 | 618,461 | 405,386 | |
Income (loss) before income taxes | 248,562 | 250,683 | 575,326 | 360,058 | |
Depreciation and amortization | 56,150 | 53,675 | 112,481 | 106,158 | |
Capital expenditures | 36,707 | 30,098 | 70,285 | 54,002 | |
Assets | 4,309,720 | 4,309,720 | |||
Steel Operations | Other segments | |||||
Segment Reporting Information | |||||
Net sales | 63,710 | 66,594 | 118,053 | 107,806 | |
Steel Operations | U.S. | |||||
Segment Reporting Information | |||||
Net sales | 1,690,973 | 1,408,993 | 3,324,603 | 2,565,962 | |
Steel Operations | Non-U.S. | |||||
Segment Reporting Information | |||||
Net sales | 67,269 | 57,711 | 154,972 | 117,918 | |
Metals Recycling Operations | |||||
Segment Reporting Information | |||||
Net sales | 694,016 | 590,724 | 1,414,153 | 1,077,909 | |
Operating income (loss) | 16,495 | 11,093 | 34,344 | 13,860 | |
Income (loss) before income taxes | 14,582 | 8,086 | 30,654 | 7,863 | |
Depreciation and amortization | 11,993 | 14,250 | 25,028 | 28,830 | |
Capital expenditures | 3,174 | 4,482 | 9,950 | 7,562 | |
Assets | 1,009,650 | 1,009,650 | |||
Metals Recycling Operations | Other segments | |||||
Segment Reporting Information | |||||
Net sales | 350,487 | 279,664 | 706,788 | 497,442 | |
Metals Recycling Operations | U.S. | |||||
Segment Reporting Information | |||||
Net sales | 298,457 | 271,985 | 609,408 | 508,742 | |
Metals Recycling Operations | Non-U.S. | |||||
Segment Reporting Information | |||||
Net sales | 45,072 | 39,075 | 97,957 | 71,725 | |
Steel Fabrication Operations | |||||
Segment Reporting Information | |||||
Net sales | 198,009 | 171,720 | 392,117 | 351,801 | |
Operating income (loss) | 20,147 | 23,470 | 43,873 | 55,486 | |
Income (loss) before income taxes | 18,633 | 21,514 | 40,972 | 51,530 | |
Depreciation and amortization | 2,906 | 2,762 | 5,877 | 5,583 | |
Capital expenditures | 3,073 | 567 | 4,224 | 1,171 | |
Assets | 368,360 | 368,360 | |||
Steel Fabrication Operations | Other segments | |||||
Segment Reporting Information | |||||
Net sales | 143 | 1,178 | 155 | 1,204 | |
Steel Fabrication Operations | U.S. | |||||
Segment Reporting Information | |||||
Net sales | 197,834 | 170,477 | 391,869 | 350,518 | |
Steel Fabrication Operations | Non-U.S. | |||||
Segment Reporting Information | |||||
Net sales | 32 | 65 | 93 | 79 | |
Other | |||||
Segment Reporting Information | |||||
Net sales | 91,698 | 76,865 | 180,983 | 152,754 | |
Operating income (loss) | (43,110) | (45,569) | (97,080) | (77,499) | |
Income (loss) before income taxes | (48,350) | (53,006) | (107,702) | (92,297) | |
Depreciation and amortization | 2,752 | 4,160 | 5,472 | 8,312 | |
Capital expenditures | 320 | 539 | 492 | 659 | |
Assets | 1,123,951 | 1,123,951 | |||
Other | Other segments | |||||
Segment Reporting Information | |||||
Net sales | 615 | 1,269 | 949 | 2,495 | |
Other | U.S. | |||||
Segment Reporting Information | |||||
Net sales | 91,083 | 75,450 | 180,034 | 150,076 | |
Other | Non-U.S. | |||||
Segment Reporting Information | |||||
Net sales | 146 | 183 | |||
Eliminations | |||||
Segment Reporting Information | |||||
Net sales | (414,955) | (348,705) | (825,945) | (608,947) | |
Operating income (loss) | 1,892 | (5,983) | 321 | (9,146) | |
Income (loss) before income taxes | 1,892 | (5,983) | 321 | (9,146) | |
Depreciation and amortization | (52) | (103) | |||
Assets | (141,551) | (141,551) | |||
Eliminations | Other segments | |||||
Segment Reporting Information | |||||
Net sales | $ (414,955) | $ (348,705) | $ (825,945) | $ (608,947) |
Segment Information - Other Foo
Segment Information - Other Footnote (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
Operating income (loss) | ||||||||
Corporate SG & A | $ (98,433) | $ (96,853) | $ (201,366) | $ (184,383) | ||||
Profit sharing | (21,308) | (20,176) | (48,539) | (29,467) | ||||
Operating income (loss) | 265,353 | 256,122 | 599,919 | 388,087 | ||||
Assets | ||||||||
Cash and equivalents | 908,843 | 1,052,666 | 908,843 | 1,052,666 | $ 966,826 | $ 841,483 | $ 976,951 | $ 727,032 |
Accounts receivable | 886,894 | 886,894 | 729,784 | |||||
Inventories | 1,418,732 | 1,418,732 | 1,275,211 | |||||
Property, plant and equipment, net | 2,729,721 | 2,729,721 | 2,787,215 | |||||
Other | 29,494 | 29,494 | 29,514 | |||||
Total assets | 6,670,130 | 6,670,130 | $ 6,423,732 | |||||
Other | ||||||||
Operating income (loss) | ||||||||
Corporate SG & A | (13,400) | (14,800) | (25,800) | (25,900) | ||||
Company-wide equity-based compensation | (7,100) | (7,300) | (16,700) | (14,300) | ||||
Profit sharing | (20,100) | (18,500) | (46,600) | (26,700) | ||||
Other, net | (2,500) | (5,000) | (8,000) | (10,600) | ||||
Operating income (loss) | (43,110) | (45,569) | (97,080) | (77,499) | ||||
Assets | ||||||||
Cash and equivalents | 860,200 | 860,200 | ||||||
Accounts receivable | 12,800 | 12,800 | ||||||
Inventories | 39,500 | 39,500 | ||||||
Property, plant and equipment, net | 163,900 | 163,900 | ||||||
Intra Company Debt | 11,600 | 11,600 | ||||||
Other | 36,000 | 36,000 | ||||||
Total assets | 1,123,951 | 1,123,951 | ||||||
Metals Recycling Operations | ||||||||
Operating income (loss) | ||||||||
Operating income (loss) | 16,495 | $ 11,093 | 34,344 | $ 13,860 | ||||
Assets | ||||||||
Total assets | $ 1,009,650 | $ 1,009,650 |
Segment Information - Eliminati
Segment Information - Eliminations Footnote (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Operating income (loss) | |||||
Operating income (loss) | $ 265,353 | $ 256,122 | $ 599,919 | $ 388,087 | |
Gross profit | 392,518 | 380,383 | 864,672 | 616,419 | |
Assets elimination | |||||
Accounts receivable | 886,894 | 886,894 | $ 729,784 | ||
Other | 29,494 | 29,494 | 29,514 | ||
Total assets | 6,670,130 | 6,670,130 | $ 6,423,732 | ||
Eliminations | |||||
Operating income (loss) | |||||
Operating income (loss) | 1,892 | $ (5,983) | 321 | $ (9,146) | |
Assets elimination | |||||
Accounts receivable | (117,600) | (117,600) | |||
Elimination of intra-company debt | (11,600) | (11,600) | |||
Other | (12,400) | (12,400) | |||
Total assets | $ (141,551) | $ (141,551) |
Condensed Consolidating Infor38
Condensed Consolidating Information - Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Condensed Consolidating Balance Sheets | ||||||
Cash and equivalents | $ 908,843 | $ 966,826 | $ 841,483 | $ 1,052,666 | $ 976,951 | $ 727,032 |
Accounts receivable, net | 886,894 | 729,784 | ||||
Inventories | 1,418,732 | 1,275,211 | ||||
Other current assets | 37,188 | 83,197 | ||||
Total current assets | 3,251,657 | 2,929,675 | ||||
Property, plant and equipment, net | 2,729,721 | 2,787,215 | ||||
Intangible assets, net | 269,129 | 283,977 | ||||
Goodwill | 390,129 | 393,351 | ||||
Other assets, including investments in subs | 29,494 | 29,514 | ||||
Total assets | 6,670,130 | 6,423,732 | ||||
Accounts payable | 484,003 | 395,196 | ||||
Accrued expenses | 291,918 | 313,987 | ||||
Current maturities of long-term debt | 19,971 | 3,632 | ||||
Total current liabilities | 795,892 | 712,815 | ||||
Long-term debt | 2,354,337 | 2,353,194 | ||||
Other liabilities | 480,420 | 469,024 | ||||
Total liabilities | 3,630,649 | 3,535,033 | ||||
Redeemable noncontrolling interests | 111,240 | 111,240 | ||||
Common stock | 641 | 641 | ||||
Treasury stock | (551,125) | (416,829) | ||||
Additional paid-in capital | 1,141,050 | 1,132,749 | ||||
Retained earnings (deficit) | 2,490,373 | 2,210,459 | ||||
Total Steel Dynamics, Inc. equity | 3,080,939 | 2,927,020 | ||||
Noncontrolling interests | (152,698) | (149,561) | ||||
Total equity | 2,928,241 | 2,777,459 | ||||
Total liabilities and equity | 6,670,130 | 6,423,732 | ||||
Parent | ||||||
Condensed Consolidating Balance Sheets | ||||||
Cash and equivalents | 858,083 | 766,685 | 947,018 | 636,877 | ||
Accounts receivable, net | 288,263 | 229,148 | ||||
Inventories | 629,757 | 587,319 | ||||
Other current assets | 21,575 | 45,049 | ||||
Total current assets | 1,797,678 | 1,628,201 | ||||
Property, plant and equipment, net | 884,642 | 899,370 | ||||
Other assets, including investments in subs | 2,673,406 | 2,769,884 | ||||
Total assets | 5,355,726 | 5,297,455 | ||||
Accounts payable | 184,903 | 141,089 | ||||
Accrued expenses | 175,777 | 198,085 | ||||
Current maturities of long-term debt | 702 | 674 | ||||
Total current liabilities | 361,382 | 339,848 | ||||
Long-term debt | 2,326,538 | 2,324,298 | ||||
Other liabilities | (413,133) | (293,711) | ||||
Total liabilities | 2,274,787 | 2,370,435 | ||||
Common stock | 641 | 641 | ||||
Treasury stock | (551,125) | (416,829) | ||||
Additional paid-in capital | 1,141,050 | 1,132,749 | ||||
Retained earnings (deficit) | 2,490,373 | 2,210,459 | ||||
Total Steel Dynamics, Inc. equity | 3,080,939 | 2,927,020 | ||||
Total equity | 3,080,939 | 2,927,020 | ||||
Total liabilities and equity | 5,355,726 | 5,297,455 | ||||
Guarantors | ||||||
Condensed Consolidating Balance Sheets | ||||||
Cash and equivalents | 43,416 | 54,677 | 88,893 | 81,976 | ||
Accounts receivable, net | 1,394,316 | 1,257,245 | ||||
Inventories | 731,165 | 639,148 | ||||
Other current assets | 14,191 | 36,062 | ||||
Total current assets | 2,183,088 | 1,987,132 | ||||
Property, plant and equipment, net | 1,643,556 | 1,679,751 | ||||
Intangible assets, net | 238,397 | 251,919 | ||||
Goodwill | 382,305 | 385,527 | ||||
Other assets, including investments in subs | 7,587 | 7,335 | ||||
Total assets | 4,454,933 | 4,311,664 | ||||
Accounts payable | 318,990 | 265,764 | ||||
Accrued expenses | 231,871 | 220,917 | ||||
Current maturities of long-term debt | 700 | |||||
Total current liabilities | 550,861 | 487,381 | ||||
Other liabilities | 1,071,249 | 1,219,444 | ||||
Total liabilities | 1,622,110 | 1,706,825 | ||||
Common stock | 1,727,859 | 1,727,859 | ||||
Additional paid-in capital | 128,076 | 128,076 | ||||
Retained earnings (deficit) | 976,888 | 748,904 | ||||
Total Steel Dynamics, Inc. equity | 2,832,823 | 2,604,839 | ||||
Total equity | 2,832,823 | 2,604,839 | ||||
Total liabilities and equity | 4,454,933 | 4,311,664 | ||||
Combined Non-Guarantors | ||||||
Condensed Consolidating Balance Sheets | ||||||
Cash and equivalents | 7,344 | 20,121 | $ 16,755 | $ 8,179 | ||
Accounts receivable, net | 39,611 | 23,689 | ||||
Inventories | 67,141 | 58,696 | ||||
Other current assets | 4,627 | 4,447 | ||||
Total current assets | 118,723 | 106,953 | ||||
Property, plant and equipment, net | 201,523 | 208,094 | ||||
Intangible assets, net | 30,732 | 32,058 | ||||
Goodwill | 7,824 | 7,824 | ||||
Other assets, including investments in subs | 5,487 | 5,832 | ||||
Total assets | 364,289 | 360,761 | ||||
Accounts payable | 90,871 | 89,659 | ||||
Accrued expenses | 8,456 | 8,793 | ||||
Current maturities of long-term debt | 45,908 | 29,347 | ||||
Total current liabilities | 145,235 | 127,799 | ||||
Long-term debt | 168,681 | 168,566 | ||||
Other liabilities | 29,044 | 42,482 | ||||
Total liabilities | 342,960 | 338,847 | ||||
Redeemable noncontrolling interests | 111,240 | 111,240 | ||||
Common stock | 14,908 | 14,908 | ||||
Additional paid-in capital | 785,678 | 779,678 | ||||
Retained earnings (deficit) | (737,799) | (734,351) | ||||
Total Steel Dynamics, Inc. equity | 62,787 | 60,235 | ||||
Noncontrolling interests | (152,698) | (149,561) | ||||
Total equity | (89,911) | (89,326) | ||||
Total liabilities and equity | 364,289 | 360,761 | ||||
Consolidating Adjustments | ||||||
Condensed Consolidating Balance Sheets | ||||||
Accounts receivable, net | (835,296) | (780,298) | ||||
Inventories | (9,331) | (9,952) | ||||
Other current assets | (3,205) | (2,361) | ||||
Total current assets | (847,832) | (792,611) | ||||
Other assets, including investments in subs | (2,656,986) | (2,753,537) | ||||
Total assets | (3,504,818) | (3,546,148) | ||||
Accounts payable | (110,761) | (101,316) | ||||
Accrued expenses | (124,186) | (113,808) | ||||
Current maturities of long-term debt | (26,639) | (27,089) | ||||
Total current liabilities | (261,586) | (242,213) | ||||
Long-term debt | (140,882) | (139,670) | ||||
Other liabilities | (206,740) | (499,191) | ||||
Total liabilities | (609,208) | (881,074) | ||||
Common stock | (1,742,767) | (1,742,767) | ||||
Additional paid-in capital | (913,754) | (907,754) | ||||
Retained earnings (deficit) | (239,089) | (14,553) | ||||
Total Steel Dynamics, Inc. equity | (2,895,610) | (2,665,074) | ||||
Total equity | (2,895,610) | (2,665,074) | ||||
Total liabilities and equity | $ (3,504,818) | $ (3,546,148) |
Condensed Consolidating Infor39
Condensed Consolidating Information - Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Consolidating Statements of Operations | ||||
Net sales | $ 2,390,720 | $ 2,023,902 | $ 4,758,936 | $ 3,765,203 |
Costs of goods sold | 1,998,202 | 1,643,519 | 3,894,264 | 3,148,784 |
Gross profit | 392,518 | 380,383 | 864,672 | 616,419 |
Selling, general and administrative | 127,165 | 124,261 | 264,753 | 228,332 |
Operating income | 265,353 | 256,122 | 599,919 | 388,087 |
Interest expense, net of capitalized interest | 33,869 | 36,646 | 67,842 | 73,689 |
Other (income) expense, net | (3,835) | (1,818) | (7,494) | (3,610) |
Income before income taxes | 235,319 | 221,294 | 539,571 | 318,008 |
Income taxes (benefit) | 82,372 | 80,851 | 187,958 | 116,247 |
Net income | 152,947 | 140,443 | 351,613 | 201,761 |
Net loss attributable to noncontrolling interests | 986 | 1,526 | 3,137 | 2,945 |
Net income attributable to Steel Dynamics, Inc. | 153,933 | 141,969 | 354,750 | 204,706 |
Parent | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | 926,855 | 793,990 | 1,851,421 | 1,451,804 |
Costs of goods sold | 767,047 | 627,246 | 1,478,626 | 1,175,425 |
Gross profit | 159,808 | 166,744 | 372,795 | 276,379 |
Selling, general and administrative | 50,942 | 53,999 | 112,597 | 92,601 |
Operating income | 108,866 | 112,745 | 260,198 | 183,778 |
Interest expense, net of capitalized interest | 18,441 | 17,837 | 36,522 | 36,024 |
Other (income) expense, net | (3,869) | (2,271) | (7,123) | (4,479) |
Income before income taxes | 94,294 | 97,179 | 230,799 | 152,233 |
Income taxes (benefit) | 29,142 | 31,700 | 70,727 | 48,968 |
Net income | 65,152 | 65,479 | 160,072 | 103,265 |
Equity in net income of subsidiaries | 88,781 | 76,490 | 194,678 | 101,441 |
Net income attributable to Steel Dynamics, Inc. | 153,933 | 141,969 | 354,750 | 204,706 |
Guarantors | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | 2,614,676 | 2,206,348 | 5,186,914 | 4,063,692 |
Costs of goods sold | 2,362,604 | 1,957,570 | 4,652,268 | 3,659,391 |
Gross profit | 252,072 | 248,778 | 534,646 | 404,301 |
Selling, general and administrative | 75,720 | 72,808 | 152,002 | 140,008 |
Operating income | 176,352 | 175,970 | 382,644 | 264,293 |
Interest expense, net of capitalized interest | 14,641 | 18,352 | 29,764 | 36,752 |
Other (income) expense, net | (2,146) | 1,885 | (4,813) | 4,075 |
Income before income taxes | 163,857 | 155,733 | 357,693 | 223,466 |
Income taxes (benefit) | 59,397 | 58,779 | 129,708 | 84,274 |
Net income | 104,460 | 96,954 | 227,985 | 139,192 |
Net income attributable to Steel Dynamics, Inc. | 104,460 | 96,954 | 227,985 | 139,192 |
Combined Non-Guarantors | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | 144,938 | 89,545 | 288,346 | 175,285 |
Costs of goods sold | 137,052 | 94,986 | 275,093 | 186,016 |
Gross profit | 7,886 | (5,441) | 13,253 | (10,731) |
Selling, general and administrative | 5,304 | 2,416 | 10,357 | 5,218 |
Operating income | 2,582 | (7,857) | 2,896 | (15,949) |
Interest expense, net of capitalized interest | 3,047 | 2,451 | 6,313 | 4,711 |
Other (income) expense, net | (79) | (3,426) | (315) | (7,004) |
Income before income taxes | (386) | (6,882) | (3,102) | (13,656) |
Income taxes (benefit) | 1,692 | (589) | 3,482 | (860) |
Net income | (2,078) | (6,293) | (6,584) | (12,796) |
Net loss attributable to noncontrolling interests | 986 | 1,526 | 3,137 | 2,945 |
Net income attributable to Steel Dynamics, Inc. | (1,092) | (4,767) | (3,447) | (9,851) |
Consolidating Adjustments | ||||
Condensed Consolidating Statements of Operations | ||||
Net sales | (1,295,749) | (1,065,981) | (2,567,745) | (1,925,578) |
Costs of goods sold | (1,268,501) | (1,036,283) | (2,511,723) | (1,872,048) |
Gross profit | (27,248) | (29,698) | (56,022) | (53,530) |
Selling, general and administrative | (4,801) | (4,962) | (10,203) | (9,495) |
Operating income | (22,447) | (24,736) | (45,819) | (44,035) |
Interest expense, net of capitalized interest | (2,260) | (1,994) | (4,757) | (3,798) |
Other (income) expense, net | 2,259 | 1,994 | 4,757 | 3,798 |
Income before income taxes | (22,446) | (24,736) | (45,819) | (44,035) |
Income taxes (benefit) | (7,859) | (9,039) | (15,959) | (16,135) |
Net income | (14,587) | (15,697) | (29,860) | (27,900) |
Equity in net income of subsidiaries | (88,781) | (76,490) | (194,678) | (101,441) |
Net income attributable to Steel Dynamics, Inc. | $ (103,368) | $ (92,187) | $ (224,538) | $ (129,341) |
Condensed Consolidating Infor40
Condensed Consolidating Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | $ 81,008 | $ 157,972 | $ 321,457 | $ 449,000 |
Net cash used in investing activities | (40,887) | (34,480) | (55,646) | (59,134) |
Net cash provided by (used in) financing activities | (98,104) | (47,777) | (198,451) | (64,232) |
Increase in cash and equivalents | (57,983) | 75,715 | 67,360 | 325,634 |
Cash and equivalents at beginning of period | 966,826 | 976,951 | 841,483 | 727,032 |
Cash and equivalents at end of period | 908,843 | 1,052,666 | 908,843 | 1,052,666 |
Parent | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | 60,686 | 185,848 | ||
Net cash used in investing activities | (33,305) | (19,031) | ||
Net cash provided by (used in) financing activities | 64,017 | 143,324 | ||
Increase in cash and equivalents | 91,398 | 310,141 | ||
Cash and equivalents at beginning of period | 766,685 | 636,877 | ||
Cash and equivalents at end of period | 858,083 | 947,018 | 858,083 | 947,018 |
Guarantors | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | 279,513 | 264,839 | ||
Net cash used in investing activities | (22,599) | (35,026) | ||
Net cash provided by (used in) financing activities | (268,175) | (222,896) | ||
Increase in cash and equivalents | (11,261) | 6,917 | ||
Cash and equivalents at beginning of period | 54,677 | 81,976 | ||
Cash and equivalents at end of period | 43,416 | 88,893 | 43,416 | 88,893 |
Combined Non-Guarantors | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | (19,857) | (2,066) | ||
Net cash used in investing activities | (503) | (4,746) | ||
Net cash provided by (used in) financing activities | 7,583 | 15,388 | ||
Increase in cash and equivalents | (12,777) | 8,576 | ||
Cash and equivalents at beginning of period | 20,121 | 8,179 | ||
Cash and equivalents at end of period | $ 7,344 | $ 16,755 | 7,344 | 16,755 |
Consolidating Adjustments | ||||
Condensed Consolidating Statements of Cash Flows | ||||
Net cash provided by (used in) operating activities | 1,115 | 379 | ||
Net cash used in investing activities | 761 | (331) | ||
Net cash provided by (used in) financing activities | $ (1,876) | $ (48) |