Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 25, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 0-21719 | |
Entity Registrant Name | Steel Dynamics, Inc | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-1929476 | |
Entity Address, Address Line One | 7575 West Jefferson Blvd | |
Entity Address, City or Town | Fort Wayne | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46804 | |
City Area Code | 260 | |
Local Phone Number | 969-3500 | |
Title of 12(b) Security | Common Stock voting, $0.0025 par value | |
Trading Symbol | STLD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 188,690,008 | |
Entity Central Index Key | 0001022671 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and equivalents | $ 1,189,528 | $ 1,243,868 |
Accounts receivable, net | 2,285,245 | 1,911,385 |
Accounts receivable-related parties | 78,423 | 5,049 |
Inventories | 3,516,815 | 3,531,130 |
Other current assets | 79,624 | 209,591 |
Total current assets | 7,149,635 | 6,901,023 |
Property, plant and equipment, net | 4,827,962 | 4,751,430 |
Intangible assets, net | 288,183 | 295,345 |
Goodwill | 453,088 | 453,835 |
Other assets | 337,769 | 129,601 |
Total assets | 13,056,637 | 12,531,234 |
Current liabilities | ||
Accounts payable | 1,202,033 | 1,266,833 |
Accounts payable-related parties | 11,525 | 13,722 |
Income taxes payable | 229,360 | 13,746 |
Accrued payroll and benefits | 275,621 | 539,812 |
Accrued interest | 33,539 | 17,533 |
Accrued expenses | 270,178 | 278,549 |
Current maturities of long-term debt | 68,390 | 97,174 |
Total current liabilities | 2,090,646 | 2,227,369 |
Long-term debt | 3,010,109 | 3,008,702 |
Deferred income taxes | 856,790 | 854,905 |
Other liabilities | 120,918 | 120,087 |
Total liabilities | 6,078,463 | 6,211,063 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 227,914 | 211,414 |
Equity | ||
Common stock voting, $0.0025 par value; 900,000,000 shares authorized; 267,224,622 and 267,224,622 shares issued; and 189,247,115 and 194,997,922 shares outstanding, as of March 31, 2022 and December 31, 2021, respectively | 649 | 649 |
Treasury stock, at cost; 77,977,507 and 72,226,700 shares, as of March 31, 2022 and December 31, 2021, respectively | (3,050,497) | (2,674,267) |
Additional paid-in capital | 1,204,023 | 1,218,933 |
Retained earnings | 8,800,883 | 7,761,417 |
Accumulated other comprehensive income (loss) | 9,296 | (2,091) |
Total Steel Dynamics, Inc. equity | 6,964,354 | 6,304,641 |
Noncontrolling interests | (214,094) | (195,884) |
Total equity | 6,750,260 | 6,108,757 |
Total liabilities and equity | $ 13,056,637 | $ 12,531,234 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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) | 267,224,622 | 267,224,622 |
Common stock voting, shares outstanding (in shares) | 189,247,115 | 194,997,922 |
Treasury stock, shares (in shares) | 77,977,507 | 72,226,700 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net sales | ||
Unrelated parties | $ 5,410,801 | $ 3,537,625 |
Related parties | 159,101 | 6,972 |
Total net sales | 5,569,902 | 3,544,597 |
Costs of goods sold | 3,787,389 | 2,744,331 |
Gross profit | 1,782,513 | 800,266 |
Selling, general and administrative expenses | 152,015 | 149,781 |
Profit sharing | 128,469 | 48,848 |
Amortization of intangible assets | 7,162 | 7,438 |
Operating income | 1,494,867 | 594,199 |
Interest expense, net of capitalized interest | 16,669 | 17,269 |
Other (income) expense, net | 20,468 | 10,071 |
Income before income taxes | 1,457,730 | 566,859 |
Income tax expense | 350,376 | 128,104 |
Net income | 1,107,354 | 438,755 |
Net income attributable to noncontrolling interests | (3,423) | (8,248) |
Net income attributable to Steel Dynamics, Inc. | $ 1,103,931 | $ 430,507 |
Basic earnings per share attributable to Steel Dynamics, Inc. stockholders (in dollars per share) | $ 5.74 | $ 2.04 |
Weighted average common shares outstanding (in shares) | 192,158 | 211,015 |
Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share) | $ 5.71 | $ 2.03 |
Weighted average common shares and share equivalents outstanding (in shares) | 193,241 | 212,254 |
Dividends declared per share (in dollars per share) | $ 0.34 | $ 0.26 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 1,107,354 | $ 438,755 |
Other comprehensive income - net unrealized gain on cash flow hedging derivatives, net of income tax of $3,557 and $1,176 for the three-month periods ended March 31, 2022 and 2021, respectively | 11,387 | 3,765 |
Comprehensive income | 1,118,741 | 442,520 |
Comprehensive income attributable to noncontrolling interests | (3,423) | (8,248) |
Comprehensive income attributable to Steel Dynamics, Inc. | $ 1,115,318 | $ 434,272 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net unrealized gain on cash flow hedging derivatives, net of income tax | $ 3,557 | $ 1,176 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities: | ||
Net income | $ 1,107,354 | $ 438,755 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 87,546 | 86,919 |
Equity-based compensation | 16,519 | 17,040 |
Deferred income taxes | 2,632 | 66,744 |
Other adjustments | 11,157 | (662) |
Changes in certain assets and liabilities: | ||
Accounts receivable | (447,234) | (394,545) |
Inventories | 14,315 | (374,588) |
Other assets | 19,402 | 5,828 |
Accounts payable | (75,971) | 360,681 |
Income taxes receivable/payable | 341,905 | 59,593 |
Accrued expenses | (258,657) | (3,574) |
Net cash provided by operating activities | 818,968 | 262,191 |
Investing activities: | ||
Purchases of property, plant and equipment | (159,330) | (309,863) |
Investments in unconsolidated affiliates | (222,480) | |
Other investing activities | 410 | 390 |
Net cash used in investing activities | (381,400) | (309,473) |
Financing activities: | ||
Issuance of current and long-term debt | 319,779 | 297,441 |
Repayment of current and long-term debt | (349,272) | (304,284) |
Dividends paid | (50,699) | (52,729) |
Purchases of treasury stock | (389,190) | |
Other financing activities | (22,527) | (16,598) |
Net cash used in financing activities | (491,909) | (76,170) |
Decrease in cash, cash equivalents, and restricted cash | (54,341) | (123,452) |
Cash, cash equivalents, and restricted cash at beginning of period | 1,249,369 | 1,374,122 |
Cash, cash equivalents, and restricted cash at end of period | 1,195,028 | 1,250,670 |
Supplemental disclosure information: | ||
Cash paid for interest | 9,168 | 11,315 |
Cash paid for income taxes, net | $ 9,948 | $ 2,142 |
Description of the Business and
Description of the Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
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 one of the largest and most diversified domestic steel producers and metals recycler. The company has three reporting segments: steel operations, metals recycling operations, and steel fabrication operations. Steel Operations Segment. Metals Recycling Operations Segment. Metals recycling operations include the company’s OmniSource ferrous and nonferrous processing, transportation, marketing, brokerage, and scrap management services primarily throughout the United States and in Central and Northern Mexico. Metals recycling operations accounted for 10% and 13% of the company’s consolidated net sales during the three-month periods ended March 31, 2022 and 2021, respectively. Steel Fabrication Operations Segment. Steel fabrication operations include the company’s 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 17% and 7% of the company’s consolidated net sales during the three-month periods ended March 31, 2022 and 2021, respectively. Other. Other operations consist of subsidiary operations that are below the company’s quantitative thresholds required for reportable segments and primarily consist of joint ventures, and our idle Minnesota ironmaking operations. Also included in “Other” are certain unallocated corporate accounts, such as the company’s senior unsecured credit facility, senior notes, certain other investments and the company’s profit sharing component. Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of SDI, together with its wholly- and majority-owned or controlled consolidated subsidiaries, after elimination of intercompany accounts and transactions. Noncontrolling and redeemable noncontrolling interests represent the noncontrolling owners’ proportionate share in the equity, income, or losses of the company’s majority-owned or controlled consolidated subsidiaries. Redeemable noncontrolling interests related to USS (owned 75% by SDI) are $116.7 million at March 31, 2022 and $100.2 million at December 31, 2021. Noncontrolling members of USS exercised their put option to require the company to purchase an additional 12.5% of the equity interest of USS, increasing SDI’s ownership to 87.5%, on April 1, 2022. Redeemable noncontrolling interests related to Mesabi Nugget (owned 85% by SDI) are $111.2 million at March 31, 2022, and December 31, 2021. Note 1. Description of the Business and Significant Accounting Policies (Continued) Use of Estimates These consolidated 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 consolidated 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 consolidated 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, 2021. Cash and Equivalents, and Restricted Cash Cash and equivalents include all highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash is primarily funds held in escrow as required by various insurance and government organizations. The balance of cash, cash equivalents and restricted cash in the consolidated statements of cash flows includes restricted cash of $5.5 million at March 31, 2022, December 31, 2021, March 31, 2021, and December 31, 2020, which are recorded in Other Assets (noncurrent) in the company’s consolidated balance sheets. Goodwill The company’s goodwill consisted of the following at March 31, 2022, and December 31, 2021 (in thousands): March 31, December 31, 2022 2021 Steel Operations Segment $ 272,133 $ 272,133 Metals Recycling Operations Segment 179,030 179,777 Steel Fabrication Operations Segment 1,925 1,925 $ 453,088 $ 453,835 Metals Recycling Operations Segment goodwill decreased $747,000 from December 31, 2021 to March 31, 2022, in recognition of the 2022 tax benefit related to the normal amortization of the component of Metals Recycling Operations tax-deductible goodwill in excess of book goodwill. Note 1. Description of the Business and Significant Accounting Policies (Continued) Credit Losses The company is exposed to credit risk in the event of nonpayment of accounts receivable by customers. The company mitigates its exposure to credit risk, which it generally extends on an unsecured basis, by performing ongoing credit evaluations and taking further action if necessary, such as requiring letters of credit or other security interests to support the customer receivable. The allowance for credit losses for accounts receivable is based on the company’s reasonable estimate of known credit risks and historical experience, adjusted for current and anticipated economic and other pertinent factors affecting the company’s customers, that may differ from historical experience. Customer accounts receivable are written off when all collection efforts have been exhausted and the amounts are deemed uncollectible. At March 31, 2022, the company reported $2.4 billion of accounts receivable, net of allowances for credit losses of $6.3 million. Changes in the allowance were not material for the three-month periods ended March 31, 2022 and 2021. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 3 Months Ended |
Mar. 31, 2022 | |
Investments in Unconsolidated Affiliates | |
Investments | Note 2. Investments in Unconsolidated Affiliates On January 31, 2022, the company purchased a 45% minority equity interest in New Process Steel, L.P. (NPS), a metals solutions and distribution supply-chain management company headquartered in Houston, Texas, with a focus toward growing its value-added manufacturing applications. On February 28, 2022, the company also purchased a minority equity interest in Aymium, a producer of renewable biocarbon products. As the company does not have power to control these entities, the company accounts for these investments using the equity method of accounting, which are recorded in Other Assets (noncurrent) in the company’s consolidated balance sheets. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share | |
Earnings Per Share | Note 3. Earnings Per Share Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company’s basic earnings per share. Common share equivalents represent potentially dilutive restricted stock units, deferred stock units, restricted stock, and performance 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 as of or for the three-month periods ended March 31, 2022 and 2021. Three-Month Periods Ended March 31, 2022 2021 Weighted Weighted Average Average Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 1,103,931 192,158 $ 5.74 $ 430,507 211,015 $ 2.04 Dilutive common share equivalents - 1,083 - 1,239 Diluted earnings per share $ 1,103,931 193,241 $ 5.71 $ 430,507 212,254 $ 2.03 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventories | |
Inventories | Note 4. 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): March 31, December 31, 2022 2021 Raw materials $ 1,871,749 $ 1,870,300 Supplies 562,204 552,616 Work in progress 435,896 402,207 Finished goods 646,966 706,007 Total inventories $ 3,516,815 $ 3,531,130 |
Changes in Equity
Changes in Equity | 3 Months Ended |
Mar. 31, 2022 | |
Changes in Equity | |
Changes in Equity | Note 5. Changes in Equity The following tables provide 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 noncontrolling interests (in thousands) for the three-month periods ended March 31, 2022 and 2021: Stockholders of Steel Dynamics, Inc. Accumulated Additional Other Redeemable Common Treasury Paid-In Retained Comprehensive Noncontrolling Total Noncontrolling Stock Stock Capital Earnings Income (Loss) Interests Equity Interests Balances at December 31, 2021 $ 649 $ (2,674,267) $ 1,218,933 $ 7,761,417 $ (2,091) $ (195,884) $ 6,108,757 $ 211,414 Dividends declared - - - (64,344) - - (64,344) - Noncontrolling investors, net - - - - - (21,633) (21,633) 16,500 Share repurchases - (389,190) - - - - (389,190) - Equity-based compensation - 12,960 (14,910) (121) - - (2,071) - Net income - - - 1,103,931 - 3,423 1,107,354 - Other comprehensive income, - - - - 11,387 - 11,387 - net of tax Balances at March 31, 2022 $ 649 $ (3,050,497) $ 1,204,023 $ 8,800,883 $ 9,296 $ (214,094) $ 6,750,260 $ 227,914 Stockholders of Steel Dynamics, Inc. Accumulated Additional Other Redeemable Common Treasury Paid-In Retained Comprehensive Noncontrolling Total Noncontrolling Stock Stock Capital Earnings Income Interests Equity Interests Balances at December 31, 2020 $ 648 $ (1,623,747) $ 1,207,392 $ 4,758,969 $ 1,902 $ (155,552) $ 4,189,612 $ 158,614 Dividends declared - - - (54,917) - - (54,917) - Noncontrolling investors, net - - - - - (9,905) (9,905) 5,000 Equity-based compensation - 8,881 (4,447) (161) - - 4,273 - Net income - - - 430,507 - 8,248 438,755 - Other comprehensive income, - - - - 3,765 - 3,765 - net of tax Balances at March 31, 2021 $ 648 $ (1,614,866) $ 1,202,945 $ 5,134,398 $ 5,667 $ (157,209) $ 4,571,583 $ 163,614 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 6. Derivative Financial Instruments The company is exposed to certain risks relating to its ongoing business operations. The company utilizes derivative instruments to mitigate commodity margin risk, and occasionally to mitigate foreign currency exchange rate risk, and have in the past to mitigate interest rate fluctuation 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 and ferrous 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 The following summarizes the company’s significant futures contract commitments as of March 31, 2022: Commodity Futures Long/Short Metric Tons Aluminum Long 6,220 Aluminum Short 12,225 Copper Long 14,855 Copper Short 27,940 The following summarizes the location and amounts of the fair values reported on the company’s consolidated balance sheets as of March 31, 2022, and December 31, 2021, and gains and losses related to derivatives included in the company’s statement of income for the three-month periods ended March 31, 2022, and 2021 (in thousands): Asset Derivatives Liability Derivatives Balance sheet Fair Value Fair Value location March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Derivative instruments designated as hedges Commodity futures Other current assets $ 13,920 $ 1,278 $ 3,802 $ 7,430 Derivative instruments not designated as hedges Commodity futures Other current assets 6,968 4,319 9,416 6,171 Total derivative instruments $ 20,888 $ 5,597 $ 13,218 $ 13,601 Note 6. 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 $17.5 million at March 31, 2022, and $24.9 million at December 31, 2021, and are reflected in other current assets in the consolidated balance sheets. Amount of gain (loss) Amount of gain (loss) recognized in income Location of gain recognized in income Location of gain on derivatives for the (loss) recognized on derivatives for the (loss) recognized three-month periods Hedged items in in income on three-month periods in income on ended March 31, fair value hedge related hedged ended March 31, derivatives 2022 2021 relationships items 2022 2021 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ 1,326 $ 7,786 Firm commitments Costs of goods sold $ (1,192) $ (1,898) Inventory Costs of goods sold (384) (498) Derivatives not designated $ (1,576) $ (2,396) as hedging instruments Commodity futures Costs of goods sold $ (11,221) $ (30,195) Derivatives accounted for as fair value hedges had ineffectiveness resulting in gains of $285,000 and $21,000 during the three-month periods ended March 31, 2022 and 2021, respectively. Losses excluded from hedge effectiveness testing of $536,000 increased cost of goods sold during the three-month period ended March 31, 2022 and gains excluded from hedge effectiveness testing of $5.4 million decreased cost of goods sold during the three-month period ended March 31, 2021. Derivatives accounted for as cash flow hedges resulted in net gains of $18.1 million and $9.3 million recognized in other comprehensive income for the three-month periods ended March 31, 2022 and 2021, respectively. N |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | Note 7. Fair Value Measurements Accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. Levels within the hierarchy are defined as follows: ● Level 1—Unadjusted quoted prices for identical assets and liabilities in active markets; ● Level 2—Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable for the asset or liability, either directly or indirectly; and ● Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The following table sets forth financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheet and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of March 31, 2022 and December 31, 2021 (in thousands): Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) March 31, 2022 Commodity futures – financial assets $ 20,888 $ - $ 20,888 $ - Commodity futures – financial liabilities 13,218 - 13,218 - December 31, 2021 Commodity futures – financial assets $ 5,597 $ - $ 5,597 $ - Commodity futures – financial liabilities 13,601 - 13,601 - The carrying amounts of financial instruments including cash and equivalents, and restricted cash approximate fair value (Level 1). The fair values of the 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 (Level 2). The fair value of long-term debt, including current maturities, as determined by quoted market prices (Level 2), was approximately $3.0 billion and $3.3 billion at March 31, 2022 and December 31, 2021, respectively (with a corresponding carrying amount in the consolidated balance sheet of $3.1 billion at March 31, 2022 and December 31, 2021). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 8. Commitments and Contingencies The company is involved in various routine litigation matters, including administrative proceedings, regulatory proceedings, governmental investigations, environmental matters, and commercial and construction contract disputes, none of which are expected to have a material impact on the company’s financial condition, results of operations, or liquidity |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Information | |
Segment Information | Note 9. 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 consolidated 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 consolidated 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 joint ventures, and the idle Minnesota ironmaking operations. Also included in “Other” are certain unallocated corporate accounts, such as the company’s senior unsecured credit facility, senior notes, certain other investments and the company’s profit sharing component. The company’s segment results, including disaggregated revenue by segment to external, external non-United States, and other segment customers, are as follows (in thousands): Metals Steel For the three-month period ended Steel Recycling Fabrication March 31, 2022 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 3,573,202 $ 448,043 $ 929,842 $ 297,121 $ - $ 5,248,208 External Non-U.S. 189,294 131,582 139 679 - 321,694 Other segments 169,157 563,592 119 658 (733,526) - 3,931,653 1,143,217 930,100 298,458 (733,526) 5,569,902 Operating income (loss) 1,163,010 44,960 466,875 (174,535) (1) (5,443) 1,494,867 Income (loss) before income taxes 1,152,216 45,730 465,199 (199,629) (5,786) 1,457,730 Depreciation and amortization 66,682 13,254 2,430 5,180 - 87,546 Capital expenditures 136,190 11,557 3,690 7,893 - 159,330 As of March 31, 2022 Assets $ 8,841,330 $ 1,365,134 $ 1,457,882 $ 1,540,817 (2) $ (148,526) (3) $ 13,056,637 Footnotes related to the three-month period ended March 31, 2022, segment results (in millions): (1) Corporate SG&A $ (19.6) (2) Cash and equivalents $ 1,014.4 Companywide equity-based compensation (15.9) Accounts receivable 42.7 Company profit sharing component (125.6) Inventories 78.4 Other, net (13.4) Property, plant and equipment, net 132.1 $ (174.5) Intra-company debt 22.7 Other 250.5 $ 1,540.8 (3) Elimination of intra-company receivables $ (47.5) Elimination of intra-company debt (22.7) Other (78.3) $ (148.5) Note 9. Segment Information (Continued) Metals Steel For the three-month period ended Steel Recycling Fabrication March 31, 2021 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 2,400,916 $ 363,878 $ 256,962 $ 304,251 $ - $ 3,326,007 External Non-U.S. 109,768 106,129 22 2,671 - 218,590 Other segments 132,163 609,905 2,036 559 (744,663) - 2,642,847 1,079,912 259,020 307,481 (744,663) 3,544,597 Operating income (loss) 637,411 50,563 9,854 (90,913) (1) (12,716) 594,199 Income (loss) before income taxes 626,059 49,339 9,064 (104,599) (13,004) 566,859 Depreciation and amortization 66,178 13,870 2,675 4,196 - 86,919 Capital expenditures 282,598 23,918 2,621 726 - 309,863 Footnotes related to the three-month period ended March 31, 2021, segment results (in millions): (1) Corporate SG&A $ (18.0) Companywide equity-based compensation (23.0) Company profit sharing component (48.1) Other, net (1.8) $ (90.9) |
Description of the Business a_2
Description of the Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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 consolidated subsidiaries, after elimination of intercompany accounts and transactions. Noncontrolling and redeemable noncontrolling interests represent the noncontrolling owners’ proportionate share in the equity, income, or losses of the company’s majority-owned or controlled consolidated subsidiaries. Redeemable noncontrolling interests related to USS (owned 75% by SDI) are $116.7 million at March 31, 2022 and $100.2 million at December 31, 2021. Noncontrolling members of USS exercised their put option to require the company to purchase an additional 12.5% of the equity interest of USS, increasing SDI’s ownership to 87.5%, on April 1, 2022. Redeemable noncontrolling interests related to Mesabi Nugget (owned 85% by SDI) are $111.2 million at March 31, 2022, and December 31, 2021. |
Use of Estimates | Use of Estimates These consolidated 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 consolidated 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 consolidated 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, 2021. |
Cash and Equivalents, and Restricted Cash | Cash and Equivalents, and Restricted Cash Cash and equivalents include all highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash is primarily funds held in escrow as required by various insurance and government organizations. The balance of cash, cash equivalents and restricted cash in the consolidated statements of cash flows includes restricted cash of $5.5 million at March 31, 2022, December 31, 2021, March 31, 2021, and December 31, 2020, which are recorded in Other Assets (noncurrent) in the company’s consolidated balance sheets. |
Goodwill | Goodwill The company’s goodwill consisted of the following at March 31, 2022, and December 31, 2021 (in thousands): March 31, December 31, 2022 2021 Steel Operations Segment $ 272,133 $ 272,133 Metals Recycling Operations Segment 179,030 179,777 Steel Fabrication Operations Segment 1,925 1,925 $ 453,088 $ 453,835 Metals Recycling Operations Segment goodwill decreased $747,000 from December 31, 2021 to March 31, 2022, in recognition of the 2022 tax benefit related to the normal amortization of the component of Metals Recycling Operations tax-deductible goodwill in excess of book goodwill. |
Credit Losses | Credit Losses The company is exposed to credit risk in the event of nonpayment of accounts receivable by customers. The company mitigates its exposure to credit risk, which it generally extends on an unsecured basis, by performing ongoing credit evaluations and taking further action if necessary, such as requiring letters of credit or other security interests to support the customer receivable. The allowance for credit losses for accounts receivable is based on the company’s reasonable estimate of known credit risks and historical experience, adjusted for current and anticipated economic and other pertinent factors affecting the company’s customers, that may differ from historical experience. Customer accounts receivable are written off when all collection efforts have been exhausted and the amounts are deemed uncollectible. At March 31, 2022, the company reported $2.4 billion of accounts receivable, net of allowances for credit losses of $6.3 million. Changes in the allowance were not material for the three-month periods ended March 31, 2022 and 2021. |
Description of the Business a_3
Description of the Business and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Description of the Business and Significant Accounting Policies | |
Schedule of Goodwill | The company’s goodwill consisted of the following at March 31, 2022, and December 31, 2021 (in thousands): March 31, December 31, 2022 2021 Steel Operations Segment $ 272,133 $ 272,133 Metals Recycling Operations Segment 179,030 179,777 Steel Fabrication Operations Segment 1,925 1,925 $ 453,088 $ 453,835 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share | |
Reconciliation of Basic and Diluted Earnings Per Share | Three-Month Periods Ended March 31, 2022 2021 Weighted Weighted Average Average Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 1,103,931 192,158 $ 5.74 $ 430,507 211,015 $ 2.04 Dilutive common share equivalents - 1,083 - 1,239 Diluted earnings per share $ 1,103,931 193,241 $ 5.71 $ 430,507 212,254 $ 2.03 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventories | |
Schedule of Inventories | Inventory consisted of the following (in thousands): March 31, December 31, 2022 2021 Raw materials $ 1,871,749 $ 1,870,300 Supplies 562,204 552,616 Work in progress 435,896 402,207 Finished goods 646,966 706,007 Total inventories $ 3,516,815 $ 3,531,130 |
Changes in Equity (Tables)
Changes in Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Changes in Equity | |
Schedule of stockholders' equity | The following tables provide 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 noncontrolling interests (in thousands) for the three-month periods ended March 31, 2022 and 2021: Stockholders of Steel Dynamics, Inc. Accumulated Additional Other Redeemable Common Treasury Paid-In Retained Comprehensive Noncontrolling Total Noncontrolling Stock Stock Capital Earnings Income (Loss) Interests Equity Interests Balances at December 31, 2021 $ 649 $ (2,674,267) $ 1,218,933 $ 7,761,417 $ (2,091) $ (195,884) $ 6,108,757 $ 211,414 Dividends declared - - - (64,344) - - (64,344) - Noncontrolling investors, net - - - - - (21,633) (21,633) 16,500 Share repurchases - (389,190) - - - - (389,190) - Equity-based compensation - 12,960 (14,910) (121) - - (2,071) - Net income - - - 1,103,931 - 3,423 1,107,354 - Other comprehensive income, - - - - 11,387 - 11,387 - net of tax Balances at March 31, 2022 $ 649 $ (3,050,497) $ 1,204,023 $ 8,800,883 $ 9,296 $ (214,094) $ 6,750,260 $ 227,914 Stockholders of Steel Dynamics, Inc. Accumulated Additional Other Redeemable Common Treasury Paid-In Retained Comprehensive Noncontrolling Total Noncontrolling Stock Stock Capital Earnings Income Interests Equity Interests Balances at December 31, 2020 $ 648 $ (1,623,747) $ 1,207,392 $ 4,758,969 $ 1,902 $ (155,552) $ 4,189,612 $ 158,614 Dividends declared - - - (54,917) - - (54,917) - Noncontrolling investors, net - - - - - (9,905) (9,905) 5,000 Equity-based compensation - 8,881 (4,447) (161) - - 4,273 - Net income - - - 430,507 - 8,248 438,755 - Other comprehensive income, - - - - 3,765 - 3,765 - net of tax Balances at March 31, 2021 $ 648 $ (1,614,866) $ 1,202,945 $ 5,134,398 $ 5,667 $ (157,209) $ 4,571,583 $ 163,614 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Financial Instruments | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following summarizes the company’s significant futures contract commitments as of March 31, 2022: Commodity Futures Long/Short Metric Tons Aluminum Long 6,220 Aluminum Short 12,225 Copper Long 14,855 Copper Short 27,940 |
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 consolidated balance sheets as of March 31, 2022, and December 31, 2021, and gains and losses related to derivatives included in the company’s statement of income for the three-month periods ended March 31, 2022, and 2021 (in thousands): Asset Derivatives Liability Derivatives Balance sheet Fair Value Fair Value location March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Derivative instruments designated as hedges Commodity futures Other current assets $ 13,920 $ 1,278 $ 3,802 $ 7,430 Derivative instruments not designated as hedges Commodity futures Other current assets 6,968 4,319 9,416 6,171 Total derivative instruments $ 20,888 $ 5,597 $ 13,218 $ 13,601 Amount of gain (loss) Amount of gain (loss) recognized in income Location of gain recognized in income Location of gain on derivatives for the (loss) recognized on derivatives for the (loss) recognized three-month periods Hedged items in in income on three-month periods in income on ended March 31, fair value hedge related hedged ended March 31, derivatives 2022 2021 relationships items 2022 2021 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ 1,326 $ 7,786 Firm commitments Costs of goods sold $ (1,192) $ (1,898) Inventory Costs of goods sold (384) (498) Derivatives not designated $ (1,576) $ (2,396) as hedging instruments Commodity futures Costs of goods sold $ (11,221) $ (30,195) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurements | |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table sets forth financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheet and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of March 31, 2022 and December 31, 2021 (in thousands): Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) March 31, 2022 Commodity futures – financial assets $ 20,888 $ - $ 20,888 $ - Commodity futures – financial liabilities 13,218 - 13,218 - December 31, 2021 Commodity futures – financial assets $ 5,597 $ - $ 5,597 $ - Commodity futures – financial liabilities 13,601 - 13,601 - |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Information | |
Schedule of operating segment results | The company’s segment results, including disaggregated revenue by segment to external, external non-United States, and other segment customers, are as follows (in thousands): Metals Steel For the three-month period ended Steel Recycling Fabrication March 31, 2022 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 3,573,202 $ 448,043 $ 929,842 $ 297,121 $ - $ 5,248,208 External Non-U.S. 189,294 131,582 139 679 - 321,694 Other segments 169,157 563,592 119 658 (733,526) - 3,931,653 1,143,217 930,100 298,458 (733,526) 5,569,902 Operating income (loss) 1,163,010 44,960 466,875 (174,535) (1) (5,443) 1,494,867 Income (loss) before income taxes 1,152,216 45,730 465,199 (199,629) (5,786) 1,457,730 Depreciation and amortization 66,682 13,254 2,430 5,180 - 87,546 Capital expenditures 136,190 11,557 3,690 7,893 - 159,330 As of March 31, 2022 Assets $ 8,841,330 $ 1,365,134 $ 1,457,882 $ 1,540,817 (2) $ (148,526) (3) $ 13,056,637 Footnotes related to the three-month period ended March 31, 2022, segment results (in millions): (1) Corporate SG&A $ (19.6) (2) Cash and equivalents $ 1,014.4 Companywide equity-based compensation (15.9) Accounts receivable 42.7 Company profit sharing component (125.6) Inventories 78.4 Other, net (13.4) Property, plant and equipment, net 132.1 $ (174.5) Intra-company debt 22.7 Other 250.5 $ 1,540.8 (3) Elimination of intra-company receivables $ (47.5) Elimination of intra-company debt (22.7) Other (78.3) $ (148.5) Metals Steel For the three-month period ended Steel Recycling Fabrication March 31, 2021 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 2,400,916 $ 363,878 $ 256,962 $ 304,251 $ - $ 3,326,007 External Non-U.S. 109,768 106,129 22 2,671 - 218,590 Other segments 132,163 609,905 2,036 559 (744,663) - 2,642,847 1,079,912 259,020 307,481 (744,663) 3,544,597 Operating income (loss) 637,411 50,563 9,854 (90,913) (1) (12,716) 594,199 Income (loss) before income taxes 626,059 49,339 9,064 (104,599) (13,004) 566,859 Depreciation and amortization 66,178 13,870 2,675 4,196 - 86,919 Capital expenditures 282,598 23,918 2,621 726 - 309,863 Footnotes related to the three-month period ended March 31, 2021, segment results (in millions): (1) Corporate SG&A $ (18.0) Companywide equity-based compensation (23.0) Company profit sharing component (48.1) Other, net (1.8) $ (90.9) |
Description of the Business a_4
Description of the Business and Significant Accounting Policies (Description of the Business) (Details) $ in Thousands | Apr. 01, 2022 | Mar. 31, 2022USD ($)segment | Mar. 31, 2021 | Dec. 31, 2021USD ($) |
Segment Reporting Information | ||||
Number of reportable segments | segment | 3 | |||
Redeemable noncontrolling interests | $ 227,914 | $ 211,414 | ||
United Steel Supply, LLC | Subsequent Event | ||||
Segment Reporting Information | ||||
Acquisition of interest (as a percent) | 12.50% | |||
Steel Operations | ||||
Segment Reporting Information | ||||
Percentage of external net sales | 68.00% | 71.00% | ||
Metals Recycling Operations | ||||
Segment Reporting Information | ||||
Percentage of external net sales | 10.00% | 13.00% | ||
Steel Fabrication Operations | ||||
Segment Reporting Information | ||||
Percentage of external net sales | 17.00% | 7.00% | ||
United Steel Supply, LLC | ||||
Segment Reporting Information | ||||
Noncontrolling interest, ownership percentage | 75.00% | 75.00% | ||
Redeemable noncontrolling interests | $ 116,700 | $ 100,200 | ||
United Steel Supply, LLC | Subsequent Event | ||||
Segment Reporting Information | ||||
Noncontrolling interest, ownership percentage | 87.50% | |||
Mesabi Nugget | ||||
Segment Reporting Information | ||||
Noncontrolling interest, ownership percentage | 85.00% | 85.00% | ||
Redeemable noncontrolling interests | $ 111,200 | $ 111,200 |
Description of the Business a_5
Description of the Business and Significant Accounting Policies (Cash and Equivalents, and Restricted Cash and Equivalents) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Description of the Business and Significant Accounting Policies | ||||
Restricted Cash and Cash Equivalents | $ 5.5 | $ 5.5 | $ 5.5 | $ 5.5 |
Restricted Cash and Cash Equivalents, Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets | Other assets | Other assets |
Description of the Business a_6
Description of the Business and Significant Accounting Policies (Goodwill) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Goodwill | ||
Goodwill | $ 453,088,000 | $ 453,835,000 |
Steel Operations | ||
Goodwill | ||
Goodwill | 272,133,000 | 272,133,000 |
Metals Recycling Operations | ||
Goodwill | ||
Goodwill | 179,030,000 | 179,777,000 |
Metals Recycling Operations | OmniSource | ||
Goodwill | ||
Goodwill decrease due to tax benefit related to the normal amortization of the component | 747,000 | |
Steel Fabrication Operations | ||
Goodwill | ||
Goodwill | $ 1,925,000 | $ 1,925,000 |
Description of the Business a_7
Description of the Business and Significant Accounting Policies (Credit Losses) (Details) $ in Millions | Mar. 31, 2022USD ($) |
Description of the Business and Significant Accounting Policies | |
Accounts receivable, net | $ 2,400 |
Allowance for credit losses | $ 6.3 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates (Details) | Jan. 31, 2022 |
New Process Steel LP | |
Schedule of Equity Method Investments [Line Items] | |
Minority equity interest acquired | 45.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share | ||
Antidilutive common share equivalents excluded from computation of earnings per share amount (in shares) | 0 | 0 |
Net Income (Numerator) | ||
Basic earnings per share (in dollars) | $ 1,103,931 | $ 430,507 |
Diluted earnings per share (in dollars) | $ 1,103,931 | $ 430,507 |
Weighted Average Shares (Denominator) | ||
Basic earnings per share (in shares) | 192,158,000 | 211,015,000 |
Dilutive common share equivalents (in shares) | 1,083,000 | 1,239,000 |
Diluted earnings per share (in shares) | 193,241,000 | 212,254,000 |
Per Share Amount | ||
Basic (in dollars per share) | $ 5.74 | $ 2.04 |
Diluted (in dollars per share) | $ 5.71 | $ 2.03 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Inventories | ||
Raw materials | $ 1,871,749 | $ 1,870,300 |
Supplies | 562,204 | 552,616 |
Work in progress | 435,896 | 402,207 |
Finished goods | 646,966 | 706,007 |
Total inventories | $ 3,516,815 | $ 3,531,130 |
Changes in Equity (Details)
Changes in Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Balances | $ 6,108,757 | $ 4,189,612 |
Dividends declared | (64,344) | (54,917) |
Noncontrolling investors, net | (21,633) | (9,905) |
Share repurchases | (389,190) | |
Equity-based compensation | (2,071) | 4,273 |
Net income | 1,107,354 | 438,755 |
Other comprehensive (loss) income, net of tax | 11,387 | 3,765 |
Balances | 6,750,260 | 4,571,583 |
Common Stock | ||
Balances | 649 | 648 |
Balances | 649 | 648 |
Treasury Stock | ||
Balances | (2,674,267) | (1,623,747) |
Share repurchases | (389,190) | |
Equity-based compensation | 12,960 | 8,881 |
Balances | (3,050,497) | (1,614,866) |
Additional Paid-In Capital | ||
Balances | 1,218,933 | 1,207,392 |
Equity-based compensation | (14,910) | (4,447) |
Balances | 1,204,023 | 1,202,945 |
Retained Earnings | ||
Balances | 7,761,417 | 4,758,969 |
Dividends declared | (64,344) | (54,917) |
Equity-based compensation | (121) | (161) |
Net income | 1,103,931 | 430,507 |
Balances | 8,800,883 | 5,134,398 |
Accumulated Other Comprehensive Income (Loss) | ||
Balances | (2,091) | 1,902 |
Other comprehensive (loss) income, net of tax | 11,387 | 3,765 |
Balances | 9,296 | 5,667 |
Noncontrolling Interests | ||
Balances | (195,884) | (155,552) |
Noncontrolling investors, net | (21,633) | (9,905) |
Net income | 3,423 | 8,248 |
Balances | (214,094) | (157,209) |
Redeemable Noncontrolling Interest | ||
Balances | 211,414 | 158,614 |
Noncontrolling investors, net | 16,500 | 5,000 |
Balances | $ 227,914 | $ 163,614 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Gains or losses on derivative instruments, statement of income | |||
Ineffectiveness - amount of gains recognized in income on related hedged items | $ 285,000 | $ 21,000 | |
Gain (loss) excluded from hedge effectiveness testing | (536,000) | 5,400,000 | |
Amount of gain (loss) related to cash flow hedges | 18,100,000 | 9,300,000 | |
Net gains (losses) reclassified | 3,200,000 | $ 4,400,000 | |
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | $ 12,200,000 | ||
Period Within Which The Company Expects To Reclassify Net Gains On Derivative Instruments From AOCI to Earnings | 12 months | ||
Futures | Commodity contract | Other current assets | |||
Commodity contract commitments | |||
Fair value of derivatives including required margin deposits | $ 17,500,000 | $ 24,900,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Notional Amounts of Outstanding Derivative Positions) (Details) - Futures | 3 Months Ended |
Mar. 31, 2022T | |
Aluminum | Long | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 6,220 |
Aluminum | Short | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 12,225 |
Copper | Long | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 14,855 |
Copper | Short | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 27,940 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position) (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Commodity futures, asset derivatives | $ 20,888 | $ 5,597 |
Commodity futures, liability derivatives | 13,218 | 13,601 |
Designated as hedging instrument | Commodity contract | Futures | Other current assets | ||
Commodity futures, asset derivatives | 13,920 | 1,278 |
Commodity futures, liability derivatives | 3,802 | 7,430 |
Not designated as hedging instrument | Commodity contract | Futures | Other current assets | ||
Commodity futures, asset derivatives | 6,968 | 4,319 |
Commodity futures, liability derivatives | $ 9,416 | $ 6,171 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Schedule of Derivatives Instruments Statements of Financial Position) (Details) - Commodity contract - Futures - Cost of goods sold - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Designated as hedging instrument | ||
Amount of gain (loss) recognized in income on derivatives | $ 1,326 | $ 7,786 |
Amount of gain (loss) recognized in income on related hedged items | (1,576) | (2,396) |
Designated as hedging instrument | Firm commitments | ||
Amount of gain (loss) recognized in income on related hedged items | (1,192) | (1,898) |
Designated as hedging instrument | Inventory | ||
Amount of gain (loss) recognized in income on related hedged items | (384) | (498) |
Not designated as hedging instrument | ||
Amount of gain (loss) recognized in income on derivatives | $ (11,221) | $ (30,195) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | $ 20,888 | $ 5,597 |
Commodity futures - financial liabilities | 13,218 | 13,601 |
Long-term Debt. | 3,100,000 | 3,100,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets and liabilities subject to fair value measurements | ||
Fair value of long-term debt, including current maturities | 3,000,000 | 3,300,000 |
Futures | Recurring | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 20,888 | 5,597 |
Commodity futures - financial liabilities | 13,218 | 13,601 |
Futures | Recurring | Level 1 | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | ||
Commodity futures - financial liabilities | ||
Futures | Recurring | Fair Value, Inputs, Level 2 [Member] | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 20,888 | 5,597 |
Commodity futures - financial liabilities | 13,218 | 13,601 |
Futures | Recurring | Level 3 | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | ||
Commodity futures - financial liabilities |
Segment Information - Results (
Segment Information - Results (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Segment Reporting Information | |||
Net sales | $ 5,569,902 | $ 3,544,597 | |
Operating income (loss) | 1,494,867 | 594,199 | |
Income (loss) before income taxes | 1,457,730 | 566,859 | |
Depreciation and amortization | 87,546 | 86,919 | |
Capital expenditures | 159,330 | 309,863 | |
Assets | 13,056,637 | $ 12,531,234 | |
U.S. | |||
Segment Reporting Information | |||
Net sales | 5,248,208 | 3,326,007 | |
Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 321,694 | 218,590 | |
Operating Segment | Steel Operations | |||
Segment Reporting Information | |||
Net sales | 3,931,653 | 2,642,847 | |
Operating income (loss) | 1,163,010 | 637,411 | |
Income (loss) before income taxes | 1,152,216 | 626,059 | |
Depreciation and amortization | 66,682 | 66,178 | |
Capital expenditures | 136,190 | 282,598 | |
Assets | 8,841,330 | ||
Operating Segment | Steel Operations | Other segments | |||
Segment Reporting Information | |||
Net sales | 169,157 | 132,163 | |
Operating Segment | Steel Operations | U.S. | |||
Segment Reporting Information | |||
Net sales | 3,573,202 | 2,400,916 | |
Operating Segment | Steel Operations | Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 189,294 | 109,768 | |
Operating Segment | Metals Recycling Operations | |||
Segment Reporting Information | |||
Net sales | 1,143,217 | 1,079,912 | |
Operating income (loss) | 44,960 | 50,563 | |
Income (loss) before income taxes | 45,730 | 49,339 | |
Depreciation and amortization | 13,254 | 13,870 | |
Capital expenditures | 11,557 | 23,918 | |
Assets | 1,365,134 | ||
Operating Segment | Metals Recycling Operations | Other segments | |||
Segment Reporting Information | |||
Net sales | 563,592 | 609,905 | |
Operating Segment | Metals Recycling Operations | U.S. | |||
Segment Reporting Information | |||
Net sales | 448,043 | 363,878 | |
Operating Segment | Metals Recycling Operations | Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 131,582 | 106,129 | |
Operating Segment | Steel Fabrication Operations | |||
Segment Reporting Information | |||
Net sales | 930,100 | 259,020 | |
Operating income (loss) | 466,875 | 9,854 | |
Income (loss) before income taxes | 465,199 | 9,064 | |
Depreciation and amortization | 2,430 | 2,675 | |
Capital expenditures | 3,690 | 2,621 | |
Assets | 1,457,882 | ||
Operating Segment | Steel Fabrication Operations | Other segments | |||
Segment Reporting Information | |||
Net sales | 119 | 2,036 | |
Operating Segment | Steel Fabrication Operations | U.S. | |||
Segment Reporting Information | |||
Net sales | 929,842 | 256,962 | |
Operating Segment | Steel Fabrication Operations | Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 139 | 22 | |
Operating Segment | Other | |||
Segment Reporting Information | |||
Net sales | 298,458 | 307,481 | |
Operating income (loss) | (174,535) | (90,913) | |
Income (loss) before income taxes | (199,629) | (104,599) | |
Depreciation and amortization | 5,180 | 4,196 | |
Capital expenditures | 7,893 | 726 | |
Assets | 1,540,817 | ||
Operating Segment | Other | Other segments | |||
Segment Reporting Information | |||
Net sales | 658 | 559 | |
Operating Segment | Other | U.S. | |||
Segment Reporting Information | |||
Net sales | 297,121 | 304,251 | |
Operating Segment | Other | Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 679 | 2,671 | |
Eliminations | |||
Segment Reporting Information | |||
Net sales | (733,526) | (744,663) | |
Operating income (loss) | (5,443) | (12,716) | |
Income (loss) before income taxes | (5,786) | (13,004) | |
Assets | (148,526) | ||
Eliminations | Other segments | |||
Segment Reporting Information | |||
Net sales | $ (733,526) | $ (744,663) |
Segment Information - Results F
Segment Information - Results Footnote (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Operating income (loss) | |||
Corporate SG & A | $ (152,015) | $ (149,781) | |
Company profit sharing component | (128,469) | (48,848) | |
Operating income (loss) | 1,494,867 | 594,199 | |
Gross profit decrease from intra-company sales | 1,782,513 | 800,266 | |
Assets | |||
Cash and equivalents | 1,189,528 | $ 1,243,868 | |
Inventories | 3,516,815 | 3,531,130 | |
Property, plant and equipment, net | 4,827,962 | 4,751,430 | |
Other assets | 337,769 | 129,601 | |
Total assets | 13,056,637 | $ 12,531,234 | |
Operating Segment | Other | |||
Operating income (loss) | |||
Corporate SG & A | (19,600) | (18,000) | |
Company-wide equity-based compensation | (15,900) | (23,000) | |
Company profit sharing component | (125,600) | (48,100) | |
Other, net | (13,400) | (1,800) | |
Operating income (loss) | (174,535) | (90,913) | |
Assets | |||
Cash and equivalents | 1,014,400 | ||
Accounts receivable | 42,700 | ||
Inventories | 78,400 | ||
Property, plant and equipment, net | 132,100 | ||
Intra-company debt | 22,700 | ||
Other assets | 250,500 | ||
Total assets | 1,540,817 | ||
Operating Segment | Metals Recycling Operations | |||
Operating income (loss) | |||
Operating income (loss) | 44,960 | 50,563 | |
Assets | |||
Total assets | 1,365,134 | ||
Eliminations | |||
Operating income (loss) | |||
Operating income (loss) | (5,443) | $ (12,716) | |
Assets | |||
Accounts receivable | (47,500) | ||
Intra-company debt | (22,700) | ||
Other assets | (78,300) | ||
Total assets | $ (148,526) |