Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 21, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 8.5 | ||
Entity Common Stock, Shares Outstanding | 171,577,705 | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Indianapolis, Indiana | ||
Entity Central Index Key | 0001022671 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and equivalents | $ 1,628,417 | $ 1,243,868 |
Short-term investments | 628,215 | |
Accounts receivable, net of allowances for credit losses of $5,678 and $6,161 as of December 31, 2022, and December 31, 2021, respectively | 1,976,282 | 1,911,385 |
Accounts receivable-related parties | 79,769 | 5,049 |
Inventories | 3,129,964 | 3,531,130 |
Other current assets | 195,371 | 209,591 |
Total current assets | 7,638,018 | 6,901,023 |
Property, plant and equipment, net | 5,373,665 | 4,751,430 |
Intangible assets, net | 267,507 | 295,345 |
Goodwill | 502,067 | 453,835 |
Other assets | 378,727 | 129,601 |
Total assets | 14,159,984 | 12,531,234 |
Current liabilities | ||
Accounts payable | 1,007,304 | 1,266,833 |
Accounts payable-related parties | 9,934 | 13,722 |
Income taxes payable | 6,520 | 13,746 |
Accrued payroll and benefits | 610,558 | 539,812 |
Accrued expenses | 340,646 | 296,082 |
Current maturities of long-term debt | 57,334 | 97,174 |
Total current liabilities | 2,032,296 | 2,227,369 |
Long-term debt | 3,013,241 | 3,008,702 |
Deferred income taxes | 889,103 | 854,905 |
Other liabilities | 129,539 | 120,087 |
Total liabilities | 6,064,179 | 6,211,063 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 181,503 | 211,414 |
Equity | ||
Common stock voting, $.0025 par value; 900,000,000 shares authorized; 267,762,488 and 267,224,622 shares issued; and 172,936,163 and 194,997,922 shares outstanding, as of December 31, 2022, and December 31, 2021, respectively | 650 | 649 |
Treasury stock, at cost; 94,826,325 and 72,226,700 shares, as of December 31, 2022, and December 31, 2021, respectively | (4,459,513) | (2,674,267) |
Additional paid-in capital | 1,212,566 | 1,218,933 |
Retained earnings | 11,375,765 | 7,761,417 |
Accumulated other comprehensive income (loss) | 889 | (2,091) |
Total Steel Dynamics, Inc. equity | 8,130,357 | 6,304,641 |
Noncontrolling interests | (216,055) | (195,884) |
Total equity | 7,914,302 | 6,108,757 |
Total liabilities and equity | $ 14,159,984 | $ 12,531,234 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for doubtful accounts receivable, current (in dollars) | $ 5,678 | $ 6,161 |
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) | 267,762,488 | 267,224,622 |
Common stock voting, shares outstanding (in shares) | 172,936,163 | 194,997,922 |
Treasury stock, shares (in shares) | 94,826,325 | 72,226,700 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net sales | |||
Unrelated parties | $ 21,469,251 | $ 18,376,743 | $ 9,587,691 |
Related parties | 791,523 | 32,107 | 13,791 |
Total net sales | 22,260,774 | 18,408,850 | 9,601,482 |
Costs of goods sold | 16,142,943 | 13,046,426 | 8,166,754 |
Gross profit | 6,117,831 | 5,362,424 | 1,434,728 |
Selling, general and administrative expenses | 545,621 | 643,976 | 477,450 |
Profit sharing | 452,551 | 388,111 | 61,728 |
Amortization of intangible assets | 27,837 | 29,232 | 28,999 |
Asset impairment charges | 19,409 | ||
Operating income | 5,091,822 | 4,301,105 | 847,142 |
Interest expense, net of capitalized interest | 91,538 | 57,209 | 94,877 |
Other (income) expense, net | (20,785) | 34,826 | 46,787 |
Income before income taxes | 5,021,069 | 4,209,070 | 705,478 |
Income tax expense | 1,141,577 | 962,256 | 134,650 |
Net income | 3,879,492 | 3,246,814 | 570,828 |
Net income attributable to noncontrolling interests | (16,818) | (32,748) | (20,006) |
Net income attributable to Steel Dynamics, Inc. | $ 3,862,674 | $ 3,214,066 | $ 550,822 |
Basic earnings per share attributable to Steel Dynamics, Inc. stockholders (in dollars per share) | $ 21.06 | $ 15.67 | $ 2.61 |
Weighted average common shares outstanding (in shares) | 183,393 | 205,115 | 211,140 |
Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share) | $ 20.92 | $ 15.56 | $ 2.59 |
Weighted average common shares and share equivalents outstanding (in shares) | 184,622 | 206,615 | 212,345 |
Dividends declared per share (in dollars per share) | $ 1.36 | $ 1.04 | $ 1 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 3,879,492 | $ 3,246,814 | $ 570,828 |
Other comprehensive income (loss) - net unrealized gain (loss) on cash flow hedging derivatives, net of income tax expense of $937, income tax benefit of $1,247, and income tax expense of $594 for 2022, 2021 and 2020, respectively | 2,980 | (3,993) | 1,909 |
Comprehensive income | 3,882,472 | 3,242,821 | 572,737 |
Comprehensive income attributable to noncontrolling interests | (16,818) | (32,748) | (20,006) |
Comprehensive income attributable to Steel Dynamics, Inc. | $ 3,865,654 | $ 3,210,073 | $ 552,731 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net unrealized gain (loss) on cash flow hedging derivatives, net of income tax | $ 937 | $ (1,247) | $ 594 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Redeemable Noncontrolling Interest | Total |
Balances at Dec. 31, 2019 | $ 646 | $ (1,525,113) | $ 1,181,012 | $ 4,419,296 | $ (7) | $ (154,593) | $ 143,614 | $ 3,921,241 |
Balances, Common Shares at Dec. 31, 2019 | 214,503,000 | |||||||
Balances, Treasury Shares at Dec. 31, 2019 | 51,570,000 | |||||||
Dividends declared | (210,496) | (210,496) | ||||||
Noncontrolling investors, net | (20,965) | (20,965) | ||||||
Noncontrolling investors, net | 15,000 | |||||||
Share repurchases | $ (106,529) | $ (106,529) | ||||||
Share repurchases (in shares) | (4,402,000) | 4,402,000 | 4,400,000 | |||||
Equity-based compensation | $ 2 | $ 7,895 | 26,380 | (653) | $ 33,624 | |||
Equity-based compensation (in shares) | 813,000 | (268,000) | ||||||
Net income (loss) | 550,822 | 20,006 | 570,828 | |||||
Other comprehensive income (loss), net of tax | 1,909 | 1,909 | ||||||
Balances at Dec. 31, 2020 | $ 648 | $ (1,623,747) | 1,207,392 | 4,758,969 | 1,902 | (155,552) | 158,614 | 4,189,612 |
Balances, Common Shares at Dec. 31, 2020 | 210,914,000 | |||||||
Balances, Treasury Shares at Dec. 31, 2020 | 55,704,000 | |||||||
Dividends declared | (210,939) | (210,939) | ||||||
Noncontrolling investors, net | (150) | (73,080) | (73,230) | |||||
Noncontrolling investors, net | 52,800 | |||||||
Share repurchases | $ (1,060,632) | $ (1,060,632) | ||||||
Share repurchases (in shares) | (16,867,000) | 16,867,000 | 16,900,000 | |||||
Equity-based compensation | $ 1 | $ 10,112 | 11,541 | (529) | $ 21,125 | |||
Equity-based compensation (in shares) | 951,000 | (344,000) | ||||||
Net income (loss) | 3,214,066 | 32,748 | 3,246,814 | |||||
Other comprehensive income (loss), net of tax | (3,993) | (3,993) | ||||||
Balances at Dec. 31, 2021 | $ 649 | $ (2,674,267) | 1,218,933 | 7,761,417 | (2,091) | (195,884) | 211,414 | $ 6,108,757 |
Balances, Common Shares at Dec. 31, 2021 | 194,998,000 | 194,997,922 | ||||||
Balances, Treasury Shares at Dec. 31, 2021 | 72,227,000 | 72,226,700 | ||||||
Dividends declared | (245,287) | $ (245,287) | ||||||
Noncontrolling investors, net | 630 | (2,495) | (36,989) | (38,854) | ||||
Noncontrolling investors, net | (29,911) | |||||||
Share repurchases | $ (1,800,905) | $ (1,800,905) | ||||||
Share repurchases (in shares) | (22,996,000) | 22,996,000 | 23,000,000 | |||||
Equity-based compensation | $ 1 | $ 15,659 | (6,997) | (544) | $ 8,119 | |||
Equity-based compensation (in shares) | 934,000 | (397,000) | ||||||
Net income (loss) | 3,862,674 | 16,818 | 3,879,492 | |||||
Other comprehensive income (loss), net of tax | 2,980 | 2,980 | ||||||
Balances at Dec. 31, 2022 | $ 650 | $ (4,459,513) | $ 1,212,566 | $ 11,375,765 | $ 889 | $ (216,055) | $ 181,503 | $ 7,914,302 |
Balances, Common Shares at Dec. 31, 2022 | 172,936,000 | 172,936,163 | ||||||
Balances, Treasury Shares at Dec. 31, 2022 | 94,826,000 | 94,826,325 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | |||
Net income | $ 3,879,492 | $ 3,246,814 | $ 570,828 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 384,202 | 347,653 | 325,789 |
Asset impairment charges | 19,409 | ||
Equity-based compensation | 59,240 | 57,715 | 55,598 |
Deferred income taxes | 37,186 | 322,007 | 47,808 |
Other adjustments | (1,795) | (3,240) | 30,974 |
Changes in certain assets and liabilities: | |||
Accounts receivable | (110,560) | (944,516) | (111,920) |
Inventories | 413,262 | (1,685,834) | (150,596) |
Other assets | (6,884) | (2,491) | (1,547) |
Accounts payable | (289,042) | 557,735 | 182,509 |
Income taxes receivable/payable | 31,623 | (105,921) | 32,551 |
Accrued expenses | 63,679 | 414,214 | (14,371) |
Net cash provided by operating activities | 4,460,403 | 2,204,136 | 987,032 |
Investing activities: | |||
Purchases of property, plant and equipment | (908,902) | (1,006,239) | (1,198,055) |
Purchases of short-term investments | (927,584) | (149,359) | |
Proceeds from maturities of short term investments | 297,950 | 411,533 | |
Business combinations, net of cash acquired | (134,090) | (60,012) | |
Investments in unconsolidated affiliates | (222,480) | ||
Other investing activities | 15,837 | 6,819 | 2,634 |
Net cash used in investing activities | (1,879,269) | (999,420) | (993,259) |
Financing activities: | |||
Issuance of current and long-term debt | 1,465,257 | 1,516,556 | 2,523,356 |
Repayment of current and long-term debt | (1,507,475) | (1,522,002) | (2,177,527) |
Dividends paid | (237,163) | (212,968) | (209,248) |
Purchases of treasury stock | (1,800,905) | (1,060,632) | (106,529) |
Other financing activities | (116,298) | (50,423) | (37,100) |
Net cash used in financing activities | (2,196,584) | (1,329,469) | (7,048) |
Increase (decrease) in cash and equivalents, and restricted cash | 384,550 | (124,753) | (13,275) |
Cash and equivalents, and restricted cash at beginning of period | 1,249,369 | 1,374,122 | 1,387,397 |
Cash and equivalents, and restricted cash at end of period | 1,633,919 | 1,249,369 | 1,374,122 |
Supplemental disclosure information: | |||
Cash paid for interest | 100,994 | 103,374 | 111,591 |
Cash paid for income taxes, net | $ 1,063,844 | $ 737,157 | $ 50,417 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Description of the Business and Summary of Significant Accounting Policies | |
Description of the Business and Summary of Significant Accounting Policies | Note 1. Description of the Business and Summary of 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, combined with a meaningful steel fabrication manufacturing platform. The company has three reporting segments: steel operations, metals recycling operations, and steel fabrication operations. Approximately 5% of the company’s workforce in six locations is represented by collective bargaining agreements, none of which are expiring in 2023. Steel Operations Segment Steel operations include the company’s electric arc furnace (EAF) steel mills, including Butler Flat Roll Division, Columbus Flat Roll Division, Southwest-Sinton Flat Roll Division (Sinton), Structural and Rail Division, Engineered Bar Products Division, Roanoke Bar Division, Steel of West Virginia, and steel coating and processing operations at The Techs, Heartland Flat Roll Division, United Steel Supply (USS) – 87.5% equity interest as of April 1, 2022, and Vulcan Threaded Products, Inc. Steel operations accounted for 65%, 72%, and 74% of the company’s consolidated net sales during 2022, 2021, and 2020, respectively. 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%, 12%, and 11% of the company’s consolidated net sales during 2022, 2021, and 2020, 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 19%, 10%, and 9% of the company’s consolidated net sales during 2022, 2021, and 2020, respectively. Other Other operations consist of subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of joint ventures, including our newly announced aluminum flat roll mill, and the company’s idled Minnesota ironmaking operations. Redeemable noncontrolling interests related to Mesabi Nugget (owned 85% by SDI) are $111.2 million at December 31, 2022 and 2021. Also included in “Other” are certain unallocated corporate accounts, such as the company’s senior unsecured credit facility, senior notes, certain other investments and certain profit sharing expenses. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of SDI, together with its wholly- and majority-owned or controlled subsidiaries, after elimination of intercompany accounts and transactions. Noncontrolling 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. Note 1. Description of the Business and Summary of 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. Revenue from Contracts with Customers In the steel and metals recycling operations segments, revenue is recognized at the point in time the performance obligation is satisfied, and control of the product is transferred to the customer upon shipment or delivery, at the amount of consideration the company expects to receive, including any variable consideration. The variable consideration included in the company’s steel operations segment contracts, which is not constrained, include estimated product returns and customer claims based on historical experience, and may include volume rebates which are recorded on an expected value basis. Revenue recognized is limited to the amount the company expects to receive. The company does not exercise significant judgments in determining the timing of satisfaction of performance obligations or the transaction price. Shipment of products to customers is considered a fulfillment activity with amounts billed to customers included in sales and costs associated with such activities included in cost of goods sold. The company’s steel fabrication operations segment recognizes revenue over time at the amount of consideration the company expects to receive. Revenue is measured on an output method representing completed fabricated tons to date as a percentage of total tons required for each contract. Revenue from fabrication of tons remaining on partially fabricated customer contracts as of a reporting date, and future revenue from yet to be fabricated customer contracts, has not been disclosed under the practical expedient in Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers (ASC 606), paragraph ASC 606-10-50-14 related to customer contracts with expected duration of one year or less. The company does not exercise significant judgments in determining the timing of satisfaction of performance obligations or the transaction price. Shipment of products to customers, which occurs after control over the product has transferred to the customer and revenue is recognized, is considered a fulfillment activity with amounts billed to customers included in sales and costs associated with such activities included in cost of goods sold. Payments from customers for all operating segments are generally due within 30 days of invoicing, which generally occurs upon shipment of the products. Shipment for the steel fabrication operations segment generally occurs within 30 days of satisfaction of the performance obligation and revenue recognition. The company does not have financing components. Payments from customers have historically generally been within these terms, however, payments for non-U.S. sales may extend longer. Refer to Note 13. Segment Information 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. Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued) At December 31, 2022 and 2021, the company reported $2,056.1 million and $1,916.4 million, respectively, of accounts receivable, net of allowances for credit losses of $5.7 million and $6.2 million respectively. Changes in the allowance were not material for the years ended December 31, 2022, 2021, or 2020. 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 Short-Term Investments Short-term investments are classified as trading securities, and interest income is recorded as earned. The company’s short-term investments were $628.2 million as of December 31, 2022. The short-term investments held as of December 31, 2022, consisted of commercial paper ($145.7 million) and US Treasuries ($482.5 million), with contractual maturities of less than one year, when purchased. Inventories Inventories are stated at lower of cost or net realizable value. Cost is determined using a weighted average cost method for raw materials (including scrap and purchased steel substrate) and supplies, and on a first-in, first-out basis for other inventory. Inventory consisted of the following at December 31 (in thousands): 2022 2021 Raw materials $ 1,608,344 $ 1,870,300 Supplies 629,074 552,616 Work in progress 256,071 402,207 Finished goods 636,475 706,007 Total inventories $ 3,129,964 $ 3,531,130 Property, Plant and Equipment Property, plant and equipment are stated at cost, except for assets acquired in acquisitions which are valued at fair value, which includes capitalized interest on construction in progress amounts, and is reduced by proceeds received from certain state and local government grants and other capital cost reimbursements. The company assigns each fixed asset a useful life ranging from 3 to 20 years for plant, machinery and equipment, and 10 to 40 years for buildings and improvements. Repairs and maintenance are expensed as incurred. Depreciation is provided utilizing the straight-line depreciation methodology, or the units-of-production depreciation methodology for certain production-related steel operations segment assets, based on units produced, subject to minimum and maximum levels. Depreciation expense was $349.4 million, $311.4 million, and $290.5 million for the years ended December 31, 2022, 2021, and 2020, respectively. Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued) The company’s property, plant and equipment consisted of the following at December 31 (in thousands): 2022 2021 Land and improvements $ 521,881 $ 350,898 Buildings and improvements 1,238,824 873,131 Plant, machinery and equipment 6,683,237 5,193,405 Construction in progress 780,741 1,839,110 9,224,683 8,256,544 Less accumulated depreciation 3,851,018 3,505,114 Property, plant and equipment, net $ 5,373,665 $ 4,751,430 Intangible Assets The company’s intangible assets consisted of the following at December 31 (in thousands): Weighted Average Useful Amortization 2022 2021 Life Period Customer, vendor and scrap generator relationships $ 420,512 $ 526,886 10 to 25 years 23 years Trade names 147,950 147,950 15 to 25 years 19 years Other 600 1,350 5 years 5 years 569,062 676,186 22 years Less accumulated amortization 301,555 380,841 $ 267,507 $ 295,345 The company utilizes an accelerated amortization methodology for customer, vendor and scrap generator relationships in order to follow the pattern in which the economic benefits of the amounts are anticipated to be consumed. Trade names are amortized using a straight-line methodology. Amortization of intangible assets was $27.8 million, $29.2 million, and $29.0 million for the years ended December 31, 2022, 2021, and 2020, respectively. In 2022, a customer relationship of $105 million became fully amortized. Estimated amortization expense related to amortizable intangibles for the years ending December 31 is as follows (in thousands): 2023 $ 27,439 2024 26,701 2025 24,783 2026 23,820 2027 21,837 Thereafter 142,927 Total $ 267,507 Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued) Impairment of Long-Lived Tangible and Definite-Lived Intangible Assets The company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be fully recoverable. Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. The impairment loss is measured by comparing the fair value of the assets to its carrying amount. The company considers various factors and determines whether an impairment test is necessary, including by way of examples, a significant and prolonged deterioration in operating results and/or projected cash flows, significant changes in the extent or manner in which an asset is used, technological advances with respect to assets which would potentially render them obsolete, the company’s strategy and capital planning, and the economic environment in markets to be served. Events occurred during the fourth quarter of 2020, that represented impairment indicators related to the company’s noncore oil and gas joint ventures. Therefore, the company undertook a fourth quarter 2020 assessment of the recoverability of the carrying amounts of these joint ventures’ property, plant and equipment. Based on the joint ventures’ outlook at the time of this 2020 assessment, the company concluded that the carrying amounts of its property, plant and equipment were fully impaired. This assessment resulted in a total non-cash asset impairment charge of $19.4 million, which include amounts attributable to noncontrolling interests of $2.4 million, that in total served to reduce net income attributable to Steel Dynamics, Inc. by $12.0 million for the year ended December 31, 2020. Goodwill The company’s goodwill consisted of the following at December 31 (in thousands): 2022 2021 Steel Operations Segment $ 272,133 $ 272,133 Metals Recycling Operations Segment 228,009 179,777 Steel Fabrication Operations Segment 1,925 1,925 $ 502,067 $ 453,835 Metals Recycling Operations Segment goodwill includes a decrease of $3.0 million in 2022 in recognition of the 2022 tax benefit related to the normal amortization of the component of OmniSource tax-deductible goodwill in excess of book goodwill. Cumulative OmniSource goodwill impairment charges were $346.8 million at December 31, 2022 and 2021. Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued) Impairment of Goodwill At least once annually (as of October 1), or when indicators of impairment exist, the company performs an impairment test for goodwill. Goodwill is allocated to various reporting units, which are generally one level below the company’s operating segments. The fair value of the reporting unit is determined by using an estimate of future cash flows utilizing a risk-adjusted discount rate to calculate the net present value of future cash flows (income approach), and for some years by using a market approach based upon an analysis of valuation metrics of comparable peer companies, using Level 3 fair value inputs as provided for under ASC 820, Fair Value Measurement . If the fair value exceeds the carrying value of the reporting unit, there is no impairment. If the carrying amount exceeds the fair value, the company recognizes an impairment loss in the amount by which the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. Equity-Based Compensation The company has several stock-based employee compensation plans which are more fully described in Note 6. Equity-Based Incentive Plans Income Taxes The company accounts for income taxes and the related accounts under the liability method. Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted rates expected to be in effect during the year in which the basis differences reverse. 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 stock equivalents as of and for the years ended December 31, 2022, 2021, and 2020. Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued) The following table presents a reconciliation of the numerators and the denominators of the company’s basic and diluted earnings per share computations for the years ended December 31 (in thousands, except per share data): 2022 2021 Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 3,862,674 183,393 $ 21.06 $ 3,214,066 205,115 $ 15.67 Dilutive common share equivalents - 1,229 - 1,500 Diluted earnings per share $ 3,862,674 184,622 $ 20.92 $ 3,214,066 206,615 $ 15.56 2020 Net Income Shares Per Share (Numerator) (Denominator) Amount Basic earnings per share $ 550,822 211,140 $ 2.61 Dilutive common share equivalents - 1,205 Diluted earnings per share $ 550,822 212,345 $ 2.59 Concentration of Credit Risk Financial instruments that potentially subject the company to significant concentrations of credit risk principally consist of temporary cash investments and accounts receivable. When advantageous, the company places its temporary cash with high credit quality financial institutions and companies and limits the amount of credit exposure from any one entity. The company is exposed to credit risk in the event of nonpayment by customers. The company mitigates its exposure to credit risk, which it generally extends initially 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. Derivative Financial Instruments The company recognizes all derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. Changes in the fair value of derivatives that are designated as hedges, depending on the nature of the hedge, are recognized as either an offset against the change in fair value of the hedged balance sheet item in the case of fair value hedges or as other comprehensive income in the case of cash flow hedges, until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings for fair value hedges. The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements. In the normal course of business, the company has derivative financial instruments in the form of forward contracts in various metallic commodities, may have involvement with derivative financial instruments related to managing fluctuations in foreign exchange rates, and in the past has had derivative financial instruments related to managing fluctuations in interest rates. At the time of acquiring these financial instruments, the company designates and assigns these instruments as hedges of specific assets, liabilities or anticipated transactions. When hedged assets or liabilities are sold or extinguished, or the anticipated transaction being hedged is no longer expected to occur, the company recognizes the gain or loss on the designated hedged financial instrument. Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued) The company routinely enters into forward exchange traded futures and option contracts to manage price risk associated with nonferrous metal inventory, as well as purchases and sales of nonferrous (primarily aluminum and copper) and ferrous metals, to reduce exposure to commodity related price fluctuations. The company does not enter into these derivative financial instruments for speculative purposes. |
Business Combinations and Inves
Business Combinations and Investments in Unconsolidated Affiliates | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations and Investments in Unconsolidated Affiliates | |
Business Combinations and Investments in Unconsolidated Affiliates | Note 2. Business Combinations and Investments in Unconsolidated Affiliates Business Combinations ROCA The company acquired 100% of ROCA ACERO, S.A. de C.V. (ROCA) on October 1, 2022. The acquisition of ROCA is part of the company’s North American raw material procurement strategy. ROCA is headquartered in Monterrey, Mexico, and operates five ferrous and nonferrous scrap facilities strategically positioned near high-volume industrial scrap sources located throughout Central and Northern Mexico. The transaction was funded with available cash. Post Aluminum Dynamics The company attained a 94.4% equity interest in a joint venture concurrently formed with Unity Aluminum, Inc. on July 29, 2022, for the construction and operation of a new state-of-the-art low-carbon aluminum flat roll mill. The transaction was funded with available cash. Operating results from and after July 29, 2022, are reflected in the company’s consolidated financial statements, in other operations. United Steel Supply The company purchased a 75% equity interest in United Steel Supply, LLC (USS) on March 1, 2019 and on April 1, 2022, the company purchased an additional 12.5% in the equity interest of USS. The company has an option to purchase, and the sellers have the option to require the company to purchase, after the fourth anniversary of the transaction (March 1, 2023), the remaining 12.5% equity interest of USS. The USS noncontrolling interest is therefore reflected in redeemable noncontrolling interest in the consolidated balance sheets. Zimmer The company acquired 100% of Zimmer, S.A. de C.V. (Zimmer) in August 2020 from available cash. The acquisition of Zimmer is part of the company’s raw material procurement strategy to support its new Sinton Flat Roll Division. Headquartered in Monterrey, Mexico, Zimmer operates several ferrous and nonferrous scrap facilities strategically positioned near high-volume industrial scrap sources, and several third-party scrap processing locations, located throughout Central and Northern Mexico. Zimmer’s post-acquisition operating results are reflected in the company’s financial statements in the metals recycling operations segment. Investments in Unconsolidated Affiliates The company purchased a 45% minority equity interest in New Process Steel, L.P. (NPS) on January 31, 2022. NPS is 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 with related activity recorded in Other (Income) Expense, net. Profits or losses from transactions with NPS are eliminated until realized by the majority equity interest owner. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Long-Term Debt. | |
Long-Term Debt | Note 3. Long-Term Debt The company’s borrowings consisted of the following at December 31 (in thousands): 2022 2021 2.800% senior notes due 2024 $ 400,000 $ 400,000 2.400% senior notes due 2025 400,000 400,000 5.000% senior notes due 2026 400,000 400,000 1.650% senior notes due 2027 350,000 350,000 3.450% senior notes due 2030 600,000 600,000 3.250% senior notes due 2031 500,000 500,000 3.250% senior notes due 2050 400,000 400,000 Other obligations 63,726 105,422 Total debt 3,113,726 3,155,422 Less debt issuance costs and original issue discounts 43,151 49,546 Total amounts outstanding 3,070,575 3,105,876 Less current maturities 57,334 97,174 Long-term debt $ 3,013,241 $ 3,008,702 Senior Credit Facility due 2024 The company has an unsecured credit agreement which has a senior unsecured revolving credit facility (Facility) which provides a $1.2 billion unsecured Revolver, which matures December 2024. Subject to certain conditions, the company has the opportunity to increase the Facility size by $500.0 million. The unsecured Revolver is available to fund working capital, capital expenditures, and other general corporate purposes. The Facility contains financial covenants and other covenants pertaining to the company’s ability to incur indebtedness and permit liens on certain assets. The company’s ability to borrow funds within the terms of the unsecured Revolver is dependent upon its continued compliance with financial and other covenants. At December 31, 2022, the company had $1.2 billion of availability on the Revolver, $9.1 million of outstanding letters of credit and other obligations which reduce availability, and there were no borrowings outstanding. The Facility pricing grid is adjusted quarterly and is based on either the company’s leverage of net debt (as defined in the Facility) to last-twelve-months (LTM) consolidated Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and certain other non-cash items as allowed in the Facility), or the company’s credit ratings. The minimum pricing is adjusted Secured Overnight Financing Rate (SOFR) plus 1.125% and the maximum pricing is adjusted SOFR plus 1.75%. In addition, the company is subject to an unused commitment fee of between 0.15% and 0.275% (based on either our leverage of net debt to LTM consolidated adjusted EBITDA, or our credit ratings) which is applied to the unused portion of the Revolver. The financial covenants under the Facility state that the company must maintain an interest coverage ratio of not less than 2.50 :1.00. The company’s interest coverage ratio is calculated by dividing its LTM consolidated Adjusted EBITDA by its LTM gross interest expense, less amortization of financing fees. In addition, a debt to capitalization ratio of not more than 0.60 :1.00 must be maintained. At December 31, 2022, the company’s interest coverage ratio and debt to capitalization ratio were 54.42 :1.00 and 0.27 :1.00, respectively. The company was, therefore, in compliance with these covenants at December 31, 2022, and anticipates remaining in compliance during the next twelve months. Senior Unsecured Notes The company has seven different tranches of senior unsecured notes (Notes) outstanding. These Notes are in equal right of payment with all existing and future senior unsecured indebtedness and are senior in right of payment to all subordinated indebtedness. These Notes contain provisions that allow the company to redeem the Notes on or after the dates and at redemption prices (expressed as a percentage of principal amount) listed below. Note 3. Long-Term Debt (Continued) The company’s $400.0 million of 2.400% senior notes due 2025 mature on June 15, 2025, with interest payable semi-annually. Early redemption is permitted as follows: any time prior to May 15, 2025, at a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.35%; and as of May 15, 2025, at 100.000%. The company’s $400.0 million of 5.000% senior notes due 2026 mature on December 15, 2026, with interest payable semi-annually. Early redemption is permitted as follows: as of December 15, 2022, at 101.667%; as of December 15, 2023, at 100.833%; and as of December 15, 2024, at 100.000%. The company’s $350.0 million of 1.650% senior notes due 2027 mature on October 15, 2027, with interest payable semi-annually. Early redemption is permitted as follows: any time prior to August 15, 2027, at a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.20%; and as of August 15, 2027, at 100.000%. The company’s $600.0 million of 3.450% senior notes due 2030 mature on April 15, 2030, with interest payable semi-annually. Early redemption is permitted as follows: any time prior to January 15, 2030, at a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.25%; and as of January 15, 2030, at 100.000%. The company’s $500.0 million of 3.250% senior notes due 2031 mature on January 15, 2031, with interest payable semi-annually. Early redemption is permitted as follows: any time prior to October 15, 2030, at a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.40%; and as of October 15, 2030, at 100.000%. The company’s $400.0 million of 3.250% senior notes due 2050 mature on October 15, 2050, with interest payable semi-annually. Early redemption is permitted as follows: any time prior to April 15, 2050, at a make-whole price of the remaining payments to be made discounted at the applicable U.S. Treasury rate plus 0.30%; and as of April 15, 2050, at 100.000%. Other Obligations Secured Loans. million at December 31, 2022, and 2021, respectively. One of the company’s controlled subsidiaries has a secured credit agreement, which matures in August 2024, and provides a revolving variable rate credit facility of up to $100.0 million, subject to a borrowing base determined from eligible accounts receivable and inventory, and is further secured with $30.0 million of letter of credit support from Steel Dynamics, Inc. Interest, which was 5.6% at December 31, 2022, is payable monthly. Amounts due under the credit facility were $55.1 million and $94.4 million at December 31, 2022, and 2021, respectively. Another of the company’s controlled subsidiaries has a secured credit agreement, which matures in March 2023, and provides a revolving variable rate credit facility of up to $25.0 million, subject to a borrowing base determined from eligible accounts receivable and inventory. Interest, which was 5.65% at December 31, 2022, is payable monthly. There were no amounts due under the credit facility at December 31, 2022 or 2021. Note 3. Long-Term Debt (Continued) Outstanding Debt Maturities Maturities of outstanding debt as of December 31, 2022, are as follows (in thousands): 2023 $ 57,334 2024 401,800 2025 401,608 2026 401,481 2027 351,142 Thereafter 1,500,361 $ 3,113,726 The company capitalizes interest on all qualifying construction in progress assets. For the years ended December 31, 2022, 2021, and 2020, total interest costs incurred were $107.4 million, $107.7 million, and $118.8 million, respectively, of which $15.8 million, $50.5 million and $23.9 million, respectively, were capitalized Financing Activity In October 2020, the company issued $350.0 million of 1.650% notes due 2027 and $400.0 million of 3.250% notes due 2050. The net proceeds from these notes were used to fund the October 2020 call and redemption of the $350.0 million outstanding principal amount of the company’s 4.125% senior notes due 2025 at a redemption price of 102.063%, plus accrued and unpaid interest to, but not including, the date of redemption, and for general corporate purposes. The company recorded expenses related to premiums and write off of unamortized debt issuance costs of approximately $10.3 million, which are reflected in other expenses in the consolidated statement of income for the year ended December 31, 2020. In June 2020, the company issued $400.0 million of 2.400% notes due 2025 and $500.0 million of 3.250% notes due 2031. The net proceeds from these notes were used to fund the June 2020 call and redemption of the $400.0 million outstanding principal amount of the company’s 5 1/4% senior notes due 2023 at a redemption price of 100.875%, and the $500.0 million outstanding principal amount of the company’s 5.500% senior notes due 2024 at a redemption price of 102.750%, plus accrued and unpaid interest to, but not including, the date of redemption. The company recorded expenses related to premiums, write off of unamortized debt issuance costs, and other expenses of approximately $22.8 million, which are reflected in other expenses in the consolidated statement of income for the year ended December 31, 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Income Taxes | Note 4. Income Taxes The company files a consolidated federal income tax return. The current and deferred federal and state income tax expense for the years ended December 31 is as follows (in thousands): 2022 2021 2020 Current income tax expense $ 1,107,379 $ 643,639 $ 88,914 Deferred income tax expense 34,198 318,617 45,736 Total income tax expense $ 1,141,577 $ 962,256 $ 134,650 Note 4. Income Taxes (Continued) A reconciliation of the statutory rates to the actual effective tax rates for the years ended December 31 are as follows: 2022 2021 2020 Statutory federal tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.6 2.5 2.6 Release of valuation allowance - - (2.9) Federal research & development credits (0.6) (0.7) (2.1) Other permanent differences (0.3) 0.1 0.5 Effective tax rate 22.7 % 22.9 % 19.1 % Significant components of the company’s deferred tax assets and liabilities at December 31 are as follows (in thousands): 2022 2021 Deferred tax assets Accrued expenses and allowances $ 34,052 $ 24,324 Inventories 8,028 9,088 Net operating loss carryforwards 16,412 20,333 Other 8,091 8,776 66,583 62,521 Less: valuation allowance (805) (805) Total net deferred tax assets 65,778 61,716 Deferred tax liabilities Property, plant and equipment (951,404) (846,942) Amortizable assets (1,304) (62,339) Other (2,173) (7,340) Total deferred tax liabilities (954,881) (916,621) Net deferred tax liability $ (889,103) $ (854,905) Certain wholly-owned and controlled subsidiaries of the company file separate federal and state income tax returns. One of the controlled subsidiaries generated federal net operating loss carryforwards in the years 2018 and prior, which total $53.8 million at December 31, 2022, and which expire in the years 2035 through 2039, along with state net operating loss carryforwards which expire in the years 2034 through 2039. During the fourth quarter of 2020, the company evaluated the realizability of the net deferred tax assets for this controlled subsidiary. In completing this evaluation, the company considered all available positive and negative evidence in order to determine whether, based on the weight of the evidence, a valuation allowance for its deferred tax assets was necessary. Such evidence included current operating results, historical results, future reversals of existing taxable temporary differences and expectations for future taxable income (exclusive of the reversal of temporary differences and carryforwards), as well as the implementation of feasible and prudent tax planning strategies. Based on the positive evidence, the company concluded that it was more likely than not that the net deferred tax assets would be realized. As a result, $21.2 million of the valuation allowance was reversed in the year ended December 31, 2020. The company continues to maintain a valuation allowance of $805,000 as of December 31, 2022, and 2021, with respect to certain state tax credits of the controlled subsidiary. Note 4. Income Taxes (Continued) A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2022 2021 2020 Balance at January 1 $ 20,466 $ 12,830 $ 10,162 Increases related to current year tax positions 9,600 8,250 4,350 Increases related to prior year tax positions 364 2,095 - Decreases related to prior year tax positions (1,784) (2,709) (1,682) Balance at December 31 $ 28,646 $ 20,466 $ 12,830 Included in the balance of unrecognized tax benefits at December 31, 2022 and 2021, are potential benefits of $25.1 million and $16.8 million, respectively, that, if recognized, would affect the effective tax rate. The company recognizes interest and penalties related to its tax contingencies on a net-of-tax basis in income tax expense. During the year ended December 31, 2022, the company recognized expense from the increase of interest expense and penalties of $480,000, net of tax and during the years ended December 31, 2021 and 2020, the company recognized benefits from the decrease of interest expense and penalties of $205,000 and $450,000, respectively, net of tax. In addition to the unrecognized tax benefits in the table above, the company had $1.2 million and $561,000 accrued for the payment of interest and penalties at December 31, 2022 and 2021, respectively. It is reasonably possible that the amount of unrecognized tax benefits could change in the next twelve months in an amount ranging from zero to $3.3 million, as a result of the expiration of the statute of limitations and other federal and state income tax audits. The company files income tax returns in the U.S. federal jurisdiction as well as income tax returns in various state jurisdictions. The tax years 2019 through 2021 remain open to examination by the Internal Revenue Service and various state and local jurisdictions. |
Shareholders Equity
Shareholders Equity | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders' Equity | |
Shareholders' Equity | Note 5. Shareholders’ Equity Cash Dividends The company declared cash dividends of $245.3 million, or $1.36 per common share, during 2022; $210.9 million, or $1.04 per common share, during 2021; and $210.5 million, or $1.00 per common share, during 2020. The company paid cash dividends of $237.2 million, $213.0 million and $209.2 million during 2022, 2021, and 2020, respectively. Treasury Stock In February 2020, the board of directors authorized a share repurchase program of up to $500.0 million of the company’s common stock. This program was exhausted in July 2021. In July 2021, the board of directors authorized an additional share repurchase program of up to $1.0 billion of the company’s common stock. This program was exhausted in April 2022. In February 2022, the board of directors authorized an additional share repurchase program of up to $1.25 billion of the company’s common stock. This program was exhausted in November 2022. In November 2022, the board of directors authorized an additional share repurchase program of up to $1.5 billion of the company’s common stock. Under the above share repurchase programs, and similar prior programs, purchases take place as and when the company determines in open market or private transactions made based upon the market price of the company’s common stock, the nature of other investment opportunities or growth projects, the company’s cash flows from operations, and general economic conditions. The share repurchase programs do not require the company to acquire any specific number of shares, and may be modified, suspended, extended or terminated by the company at any time. The share repurchase programs do not have an expiration date. The company repurchased 23.0 million shares for $1.8 billion during 2022, 16.9 million shares for $1.1 billion during 2021, and 4.4 million shares for $106.5 million during 2020 under the share repurchase programs. At December 31, 2022, the company had remaining authorization to repurchase $1.3 billion of additional shares under the November 2022 share repurchase program. |
Equity-Based Incentive Plans
Equity-Based Incentive Plans | 12 Months Ended |
Dec. 31, 2022 | |
Equity-Based Incentive Plans | |
Equity-Based Incentive Plans | Note 6. Equity-Based Incentive Plans Amended and Restated 2015 Equity Incentive Plan (2015 Plan) The 2015 Plan is designed to attract, motivate and retain qualified persons that are able to make important contributions to the company’s success. To accomplish these objectives, the 2015 Plan provides for awards of equity-based incentives through granting of restricted stock units (RSUs), deferred stock units (DSUs), restricted stock awards, stock options (of which there are none), unrestricted stock awards (of which there are none), stock appreciation rights (SARs), and performance awards, such as long-term incentive compensation program (LTIP). The company’s shareholders approved the 2015 Plan in May 2015, and 12.5 million shares of common stock were reserved for issuance upon exercise of equity grants through December 31, 2025. In May 2019, the 2015 Plan was amended and restated with an additional 8.0 million shares of common stock reserved for issuance upon exercise of equity grants. The 2015 Plan uses a fungible share concept under which any awards that are not a full-value award, such as stock options and stock-settled SARs, will be counted against the share limit as one share for each share of common stock, and awards that are full-value awards, such as RSUs, DSUs, restricted and unrestricted stock awards, and performance awards, will be counted against the share limit as 2.09 shares for each share of common stock. The SARs the company has granted to date can only be settled in cash, and thus, do not count against the share reserve. At December 31, 2022, there were 2.5 million shares still available for issuance. Substantially all of the company’s full-time, non-union, U.S. team members receive RSUs, which are granted annually in November at no cost to employees and vest 100% over the shorter of two years from grant date or upon the recipient reaching retirement eligible age ( 59½ years Note 6. Equity-Based Incentive Plans (Continued) Restricted Stock Units A summary of the company’s RSU activity and outstanding RSUs as of December 31, 2022, are presented below (dollars in thousands except grant date fair value): Weighted Aggregate Number Average Grant Intrinsic Unrecognized of RSUs Date Fair Value Value Compensation Outstanding RSUs as of January 1, 2020 1,557,994 $ 32.53 $ 53,034 $ 33,581 Granted 1,017,518 33.54 Vested (811,317) 36.09 Forfeited (65,616) 32.20 As of December 31, 2020 1,698,579 $ 31.44 $ 62,627 $ 35,821 Granted 627,973 59.38 Vested (895,706) 32.30 Forfeited (82,588) 32.47 As of December 31, 2021 1,348,258 $ 43.82 $ 83,686 $ 39,657 Granted 481,926 98.29 Vested (786,622) 37.38 Forfeited (70,011) 46.82 As of December 31, 2022 (nonvested) 973,551 $ 71.80 $ 94,765 $ 44,394 The weighted average remaining life before vesting of the outstanding RSUs as of December 31, 2022, is Long-Term Incentive Compensation Program (LTIP) The company maintains an LTIP performance-based program directed toward key senior leadership of the company, as determined at the discretion of the Compensation Committee of the Board of Directors. Awards are in shares of the company’s common stock using the stock price on the first day of the performance period to convert each key senior executive’s predetermined multiple of annual base salary. The performance period is generally three years; however, a transition award was issued in 2020 with a shorter performance period. Performance is measured in terms of equal portions of four growth and profitability measures, as compared to the same measures, similarly treated, of a pre-established group of steel sector competitors. Awards earned can range from zero to 100% of the shares awarded. Beginning with 2018, award shares vest immediately once earned on the basis of performance. For awards prior to 2018, once earned on the basis of performance, one-third Note 6. Equity-Based Incentive Plans (Continued) The Compensation Committee granted the following three-year performance period awards and two-year performance period transition awards, which have been earned and have or will be issued over the vesting period as follows: Maximum Shares That Award Could Be Issued Earned Award Issued/Issuable 2017 LTIP Award: Three-year performance period award 182,274 164,047 54,683 March 2020 54,682 March 2021 54,682 March 2022 2019 LTIP Award: Three-year performance period award 422,008 379,811 379,811 March 2022 2020 LTIP Award: Three-year performance period award 405,922 356,845 356,845 March 2023 Two-year performance period transition award 9,764 8,300 8,300 March 2022 2021 LTIP Award: Three-year performance period award 360,189 * * 2022 LTIP Award: Three-year performance period award 249,759 * * * Not yet earned as performance period not complete. 2018 Executive Incentive Compensation Plan (2018 Executive Plan) The 2018 Executive Plan provides for eligibility of certain senior leadership of the company to receive cash and stock bonuses based on predetermined formulas. The company’s shareholders approved the 2018 Executive Plan in May 2018 and 2.0 million shares of company stock were reserved for issuance through February 28, 2028. At times a portion of the bonus may be distributed in shares of the company’s stock, of which one-third . |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 7. Derivative Financial Instruments The company is exposed to certain risks relating to its ongoing business operations. The company utilizes derivative instruments to mitigate commodity margin risk, 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 (primarily aluminum and copper) and ferrous metals. The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements. If the company is “long” on commodity 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 December 31, 2022: Commodity Futures Long/Short Metric Tons Aluminum Long 8,750 Aluminum Short 13,850 Copper Long 10,250 Copper Short 28,822 The following summarizes the location and amounts of the fair values reported on the company’s consolidated balance sheets and gains or losses related to derivatives included in the company’s consolidated statements of income as of and for the years ended December 31 (in thousands): Asset Derivatives Liability Derivatives Fair Value Fair Value Balance sheet location December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivative instruments designated as hedges Commodity futures Other current assets $ 2,169 $ 1,278 $ 2,119 $ 7,430 Derivative instruments not designated as hedges Commodity futures Other current assets 2,102 4,319 5,269 6,171 Total derivative instruments $ 4,271 $ 5,597 $ 7,388 $ 13,601 Note 7. 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 agreements totaled $23.5 million and $24.9 million at December 31, 2022, and 2021, respectively, and are reflected in other current assets in the consolidated balance sheets. Amount of Location of gain gain (loss) Location of gain Amount of gain (loss) recognized recognized in Hedged items in (loss) recognized (loss) recognized in in income on income on fair value hedge in income on income on related derivatives derivatives relationships related hedged items hedged items For the Year Ended December 31, 2022 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ 2,284 Firm commitments Costs of goods sold $ (2,290) Inventory Costs of goods sold (708) Derivatives not designated $ (2,998) as hedging instruments Commodity futures Costs of goods sold $ 24,748 For the Year Ended December 31, 2021 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ (1,369) Firm commitments Costs of goods sold $ 3,354 Inventory Costs of goods sold 1,054 Derivatives not designated $ 4,408 as hedging instruments Commodity futures Costs of goods sold $ (33,517) For the Year Ended December 31, 2020 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ (2,004) Firm commitments Costs of goods sold $ (79) Inventory Costs of goods sold (482) Derivatives not designated $ (561) as hedging instruments Commodity futures Costs of goods sold $ (17,368) Derivatives accounted for as fair value hedges had ineffectiveness resulting in gains of $72,000, losses of $101,000, and gains of $68,000 for the years ended December 31, 2022, 2021, and 2020, respectively. Losses excluded from hedge effectiveness testing of $786,000 and $2.6 million increased cost of goods sold for the years ended December 31, 2022 and 2020, respectively. Gains excluded from hedge effectiveness testing of $3.1 million decreased cost of goods sold for the year ended December 31, 2021. Note 7. Derivative Financial Instruments (Continued) Derivatives accounted for as cash flow hedges resulted in net gains of $15.0 million, $40.9 million and $2.8 million recognized in other comprehensive income for the years ended December 31, 2022, 2021, and 2020, respectively. Net losses of $11.1 million were reclassified from accumulated other comprehensive income to expense for the year ended December 31, 2022. Net gains of $46.1 million and $265,000 , were reclassified from accumulated other comprehensive income into income for the years ended December 31, 2021, and 2020, respectively. At December 31, 2022, the company expects to reclassify $1.2 million of net gains on derivative instruments from accumulated other comprehensive income to income during the next 12 months due to the settlement of futures contracts. The maximum term over which the company is hedging its exposure to the variability of future cash flows for forecasted transactions is less than 12 months |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | Note 8. 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 December 31 (in thousands): Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) December 31, 2022 Short-term investments $ 628,215 $ - $ 628,215 $ - Commodity futures – financial assets 4,271 - 4,271 - Commodity futures – financial liabilities 7,388 - 7,388 - 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 short-term investments 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 $2.7 billion and $3.3 billion at December 31, 2022 and 2021 (with a corresponding carrying amount in the consolidated balance sheet of $3.1 billion at December 31, 2022 and 2021). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | Note 9. Commitments and Contingencies The company has entered into certain commitments with suppliers which are of a customary nature. Commitments have been entered into relating to future expected requirements for commodities such as electricity, water, natural gas and its transportation services, fuel, air products, zinc, and electrodes. Certain commitments contain provisions which require that the company “take or pay” for specified quantities at fixed prices without regard to actual usage for periods of generally up to 5 years for physical commodity requirements and commodity transportation requirements, with some extending beyond, and for up to 15 years for air products and 29 years for water products. The company utilized such “take or pay” requirements during the past three years under these contracts, except for certain air products at the idled Minnesota ironmaking operations. The company believes that production requirements will be such that consumption of the products or services purchased under these commitments will occur in the normal production process, other than certain air products related to our idled Minnesota ironmaking operations. The company’s commitments for these agreements with “take or pay” or other similar commitment provisions for the years ending December 31 are as follows (in thousands): 2023 $ 363,988 2024 85,574 2025 44,934 2026 25,470 2027 25,117 Thereafter 181,811 $ 726,894 At December 31, 2022, the company has outstanding commitments of $1.4 billion, of which $1.3 billion are expected to be paid in 2023 and an expected $100 million in 2024, related to ongoing construction of property, plant, and equipment, most significantly our newly announced aluminum flat roll mill, and other steel operations expansion projects. The company’s commitments for operating leases are discussed in Note 12. Leases. The company is involved in various 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. |
Transactions with Affiliated Co
Transactions with Affiliated Companies | 12 Months Ended |
Dec. 31, 2022 | |
Transactions with Affiliated Companies | |
Transactions with Affiliated Companies | Note 10. Transactions with Affiliated Companies The company purchases and sells recycled and scrap metal, and steel with other smaller affiliated companies, including our equity method investments and the addition of New Process Steel during 2022. These transactions for the years ended December 31, are as follows (in thousands): 2022 2021 2020 Sales $ 791,523 $ 32,107 $ 13,791 Accounts receivable 79,769 5,049 3,937 Purchases 127,860 163,453 132,560 Accounts payable 9,934 13,722 8,919 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Plans | |
Retirement Plans | Note 11. Retirement Plans The company sponsors several 401(k) retirement savings and profit sharing plans (Plans) for eligible employees, which are considered “qualified plans” for federal income tax purposes. The company’s total expense for the Plans was $466.9 million, $382.8 million, and $74.5 million for the years ended December 31, 2022, 2021, and 2020, respectively. Profit sharing expense for eligible employees is 8% of consolidated pretax income excluding noncontrolling interests and other items. The resulting profit sharing expense under the Plan was $421.6 million, $359.8 million, and $58.3 million for the years ended December 31, 2022, 2021, and 2020, respectively; of which up to $337.2 million, $287.8 million (subject to total Plan contribution limitations), and $46.7 million, respectively, was directed by the company’s board of directors to be contributed to the Plans, with the remaining amounts each year paid directly in cash to the Plans’ participants. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | Note 12. Leases The company has operating leases relating principally to transportation and other equipment, and some real estate. The company determines if an arrangement contains a lease at inception, which generally occurs when the arrangement identifies a specific asset that the company has the right to direct the use of and obtain substantially all of the economic benefit from use of the identified asset. Certain of our lease agreements contain rent escalation clauses (including fixed and index-based escalations), and options to extend or terminate the lease. For purposes of calculating operating lease obligations, the company’s lease terms include options to extend the lease when it is reasonably certain that the company will exercise such option. The company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is the rate of interest the company could borrow on a collateralized basis over a similar term with similar payments. Operating lease expense is recognized on a straight-line basis over the lease term. Operating lease right-of-use assets and lease obligations included in the consolidated balance sheets at December 31, are as follows (in thousands): 2022 2021 Right-of-use assets under operating leases: Other assets - noncurrent $ 110,638 $ 100,124 Lease obligations under operating leases: Accrued liabilities $ 18,850 $ 17,822 Other liabilities - noncurrent 91,793 82,252 $ 110,643 $ 100,074 The weighted average remaining lease term for our operating leases is ten years, and the weighted-average discount rate is 3.86% and 3.60% as of December 31, 2022 and 2021, respectively. Future operating lease liabilities as of December 31, 2022, for the next five years and thereafter are as follows (in thousands): 2023 $ 22,784 2024 18,994 2025 15,329 2026 11,259 2027 9,340 Thereafter 55,719 Total undiscounted cash flows 133,425 Less imputed interest (22,782) Lease obligations under operating leases $ 110,643 Note 12. Leases (Continued) Operating lease expense included in the consolidated statements of income was $23.7 million, $22.5 million, and $21.3 million for the years ended December 31, 2022, 2021, and 2020, respectively. Cash paid related to operating lease obligations was $20.1 million, $19.0 million, and $18.6 million for the years ended December 31, 2022, 2021, and 2020, respectively. Variable lease costs were not material for the years ended December 31, 2022, 2021, or 2020. Short-term lease expense included in the consolidated statements of income was $35.8 million, $28.0 million, and $19.1 million for the years ended December 31, 2022, 2021, and 2020, respectively. Right-of-use assets obtained in exchange for new operating lease liabilities for the years ended December 31, 2022, 2021, and 2020, was $30.9 million, with addition of $16.8 million related to ROCA, $28.6 million, and $33.3 million, with addition of $19.7 million related to Zimmer, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Information | |
Segment Information | Note 13. 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. Description of the Business and Summary of Significant Accounting Policies 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 year ended Steel Recycling Fabrication December 31, 2022 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 13,801,448 $ 1,545,347 $ 4,245,803 $ 1,259,173 $ - $ 20,851,771 External Non-United States 760,929 619,361 183 28,530 - 1,409,003 Other segments 538,540 2,230,928 11,221 1,281 (2,781,970) - 15,100,917 4,395,636 4,257,207 1,288,984 (2,781,970) 22,260,774 Operating income (loss) 3,095,348 117,266 2,424,655 (599,828) (1) 54,381 5,091,822 Income (loss) before income taxes 3,057,560 117,803 2,417,752 (625,037) 52,991 (2) 5,021,069 Depreciation and amortization 295,386 53,893 9,727 25,196 - 384,202 Capital expenditures 611,154 68,074 17,519 212,155 - 908,902 As of December 31, 2022 Assets $ 8,607,290 $ 1,320,368 $ 1,349,138 $ 3,007,942 (3) $ (124,754) (4) $ 14,159,984 Note 13. Segment Information (Continued) Footnotes related to the year ended December 31, 2022, segment results (in millions): (1) Corporate SG&A $ (77.8) (2) Gross profit increase from intra-company sales $ 53.0 Companywide equity-based compensation (67.3) Profit sharing (444.4) Other, net (10.3) $ (599.8) (3) Cash and equivalents $ 1,463.2 (4) Elimination of intra-company receivables $ (58.2) Short-term investments 628.2 Elimination of intra-company debt (46.9) Accounts receivable 33.3 Elimination of intra-company profit in inventory (19.7) Inventories 90.4 $ (124.8) Property, plant and equipment, net 375.6 Intra-company debt 46.9 Investments in unconsolidated affiliates 226.6 Other 143.7 $ 3,007.9 Metals Steel For the year ended Steel Recycling Fabrication December 31, 2021 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 12,618,917 $ 1,658,843 $ 1,761,078 $ 1,252,095 $ - $ 17,290,933 External Non-United States 580,225 524,629 569 12,494 - 1,117,917 Other segments 823,991 2,406,649 3,063 2,382 (3,236,085) - 14,023,133 4,590,121 1,764,710 1,266,971 (3,236,085) 18,408,850 Operating income (loss) 4,360,488 181,986 365,250 (551,725) (1) (54,894) 4,301,105 Income (loss) before income taxes 4,327,300 181,579 362,473 (606,021) (56,261) (2) 4,209,070 Depreciation and amortization 263,125 55,620 9,961 18,947 - 347,653 Capital expenditures 937,011 46,360 12,939 9,929 - 1,006,239 As of December 31, 2021 Assets $ 8,686,216 $ 1,266,920 $ 1,195,396 $ 1,523,830 (3) $ (141,128) (4) $ 12,531,234 Footnotes related to the year ended December 31, 2021, segment results (in millions): (1) Corporate SG&A $ (78.0) (2) Gross profit decrease from intra-company sales $ (56.3) Companywide equity-based compensation (78.8) Profit sharing (379.3) Other, net (15.6) $ (551.7) (3) Cash and equivalents $ 1,088.8 (4) Elimination of intra-company receivables $ (48.9) Accounts receivable 27.5 Elimination of intra-company debt (19.6) Inventories 94.2 Elimination of intra-company profit in inventory (72.6) Property, plant and equipment, net 128.9 $ (141.1) Intra-company debt 19.6 Other 164.8 $ 1,523.8 Note 13. Segment Information (Continued) Metals Steel For the year ended Steel Recycling Fabrication December 31, 2020 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 6,873,209 $ 820,262 $ 895,227 $ 500,496 $ - $ 9,089,194 External Non-United States 263,895 247,662 474 257 - 512,288 Other segments 318,533 1,335,216 10,663 434 (1,664,846) - 7,455,637 2,403,140 906,364 501,187 (1,664,846) 9,601,482 Operating income (loss) 889,480 32,991 120,575 (188,525) (1) (7,379) 847,142 Income (loss) before income taxes 833,035 27,753 116,625 (263,470) (8,465) (2) 705,478 Depreciation and amortization 251,590 50,099 10,819 13,281 - 325,789 Capital expenditures 1,132,298 32,875 15,234 17,648 - 1,198,055 Footnotes related to the year ended December 31, 2020, segment results (in millions): (1) Corporate SG&A $ (57.9) (2) Gross profit decrease from intra-company sales $ (8.5) Companywide equity-based compensation (48.5) Profit sharing (58.3) Asset impairment charges (19.4) Other, net (4.4) $ (188.5) |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Description of the Business and Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of SDI, together with its wholly- and majority-owned or controlled subsidiaries, after elimination of intercompany accounts and transactions. Noncontrolling 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. |
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. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers In the steel and metals recycling operations segments, revenue is recognized at the point in time the performance obligation is satisfied, and control of the product is transferred to the customer upon shipment or delivery, at the amount of consideration the company expects to receive, including any variable consideration. The variable consideration included in the company’s steel operations segment contracts, which is not constrained, include estimated product returns and customer claims based on historical experience, and may include volume rebates which are recorded on an expected value basis. Revenue recognized is limited to the amount the company expects to receive. The company does not exercise significant judgments in determining the timing of satisfaction of performance obligations or the transaction price. Shipment of products to customers is considered a fulfillment activity with amounts billed to customers included in sales and costs associated with such activities included in cost of goods sold. The company’s steel fabrication operations segment recognizes revenue over time at the amount of consideration the company expects to receive. Revenue is measured on an output method representing completed fabricated tons to date as a percentage of total tons required for each contract. Revenue from fabrication of tons remaining on partially fabricated customer contracts as of a reporting date, and future revenue from yet to be fabricated customer contracts, has not been disclosed under the practical expedient in Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers (ASC 606), paragraph ASC 606-10-50-14 related to customer contracts with expected duration of one year or less. The company does not exercise significant judgments in determining the timing of satisfaction of performance obligations or the transaction price. Shipment of products to customers, which occurs after control over the product has transferred to the customer and revenue is recognized, is considered a fulfillment activity with amounts billed to customers included in sales and costs associated with such activities included in cost of goods sold. Payments from customers for all operating segments are generally due within 30 days of invoicing, which generally occurs upon shipment of the products. Shipment for the steel fabrication operations segment generally occurs within 30 days of satisfaction of the performance obligation and revenue recognition. The company does not have financing components. Payments from customers have historically generally been within these terms, however, payments for non-U.S. sales may extend longer. Refer to Note 13. Segment Information |
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. Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued) At December 31, 2022 and 2021, the company reported $2,056.1 million and $1,916.4 million, respectively, of accounts receivable, net of allowances for credit losses of $5.7 million and $6.2 million respectively. Changes in the allowance were not material for the years ended December 31, 2022, 2021, or 2020. |
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 |
Short-Term Investments | Short-Term Investments Short-term investments are classified as trading securities, and interest income is recorded as earned. The company’s short-term investments were $628.2 million as of December 31, 2022. The short-term investments held as of December 31, 2022, consisted of commercial paper ($145.7 million) and US Treasuries ($482.5 million), with contractual maturities of less than one year, when purchased. |
Inventories | Inventories Inventories are stated at lower of cost or net realizable value. Cost is determined using a weighted average cost method for raw materials (including scrap and purchased steel substrate) and supplies, and on a first-in, first-out basis for other inventory. Inventory consisted of the following at December 31 (in thousands): 2022 2021 Raw materials $ 1,608,344 $ 1,870,300 Supplies 629,074 552,616 Work in progress 256,071 402,207 Finished goods 636,475 706,007 Total inventories $ 3,129,964 $ 3,531,130 |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, except for assets acquired in acquisitions which are valued at fair value, which includes capitalized interest on construction in progress amounts, and is reduced by proceeds received from certain state and local government grants and other capital cost reimbursements. The company assigns each fixed asset a useful life ranging from 3 to 20 years for plant, machinery and equipment, and 10 to 40 years for buildings and improvements. Repairs and maintenance are expensed as incurred. Depreciation is provided utilizing the straight-line depreciation methodology, or the units-of-production depreciation methodology for certain production-related steel operations segment assets, based on units produced, subject to minimum and maximum levels. Depreciation expense was $349.4 million, $311.4 million, and $290.5 million for the years ended December 31, 2022, 2021, and 2020, respectively. Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued) The company’s property, plant and equipment consisted of the following at December 31 (in thousands): 2022 2021 Land and improvements $ 521,881 $ 350,898 Buildings and improvements 1,238,824 873,131 Plant, machinery and equipment 6,683,237 5,193,405 Construction in progress 780,741 1,839,110 9,224,683 8,256,544 Less accumulated depreciation 3,851,018 3,505,114 Property, plant and equipment, net $ 5,373,665 $ 4,751,430 |
Intangible Assets | Intangible Assets The company’s intangible assets consisted of the following at December 31 (in thousands): Weighted Average Useful Amortization 2022 2021 Life Period Customer, vendor and scrap generator relationships $ 420,512 $ 526,886 10 to 25 years 23 years Trade names 147,950 147,950 15 to 25 years 19 years Other 600 1,350 5 years 5 years 569,062 676,186 22 years Less accumulated amortization 301,555 380,841 $ 267,507 $ 295,345 The company utilizes an accelerated amortization methodology for customer, vendor and scrap generator relationships in order to follow the pattern in which the economic benefits of the amounts are anticipated to be consumed. Trade names are amortized using a straight-line methodology. Amortization of intangible assets was $27.8 million, $29.2 million, and $29.0 million for the years ended December 31, 2022, 2021, and 2020, respectively. In 2022, a customer relationship of $105 million became fully amortized. Estimated amortization expense related to amortizable intangibles for the years ending December 31 is as follows (in thousands): 2023 $ 27,439 2024 26,701 2025 24,783 2026 23,820 2027 21,837 Thereafter 142,927 Total $ 267,507 |
Impairment of Long-Lived Tangible and Definite Lived Intangible Assets | Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued) Impairment of Long-Lived Tangible and Definite-Lived Intangible Assets The company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of such assets may not be fully recoverable. Impairment losses are recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. The impairment loss is measured by comparing the fair value of the assets to its carrying amount. The company considers various factors and determines whether an impairment test is necessary, including by way of examples, a significant and prolonged deterioration in operating results and/or projected cash flows, significant changes in the extent or manner in which an asset is used, technological advances with respect to assets which would potentially render them obsolete, the company’s strategy and capital planning, and the economic environment in markets to be served. Events occurred during the fourth quarter of 2020, that represented impairment indicators related to the company’s noncore oil and gas joint ventures. Therefore, the company undertook a fourth quarter 2020 assessment of the recoverability of the carrying amounts of these joint ventures’ property, plant and equipment. Based on the joint ventures’ outlook at the time of this 2020 assessment, the company concluded that the carrying amounts of its property, plant and equipment were fully impaired. This assessment resulted in a total non-cash asset impairment charge of $19.4 million, which include amounts attributable to noncontrolling interests of $2.4 million, that in total served to reduce net income attributable to Steel Dynamics, Inc. by $12.0 million for the year ended December 31, 2020. |
Goodwill | Goodwill The company’s goodwill consisted of the following at December 31 (in thousands): 2022 2021 Steel Operations Segment $ 272,133 $ 272,133 Metals Recycling Operations Segment 228,009 179,777 Steel Fabrication Operations Segment 1,925 1,925 $ 502,067 $ 453,835 Metals Recycling Operations Segment goodwill includes a decrease of $3.0 million in 2022 in recognition of the 2022 tax benefit related to the normal amortization of the component of OmniSource tax-deductible goodwill in excess of book goodwill. Cumulative OmniSource goodwill impairment charges were $346.8 million at December 31, 2022 and 2021. |
Impairment of Goodwill | Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued) Impairment of Goodwill At least once annually (as of October 1), or when indicators of impairment exist, the company performs an impairment test for goodwill. Goodwill is allocated to various reporting units, which are generally one level below the company’s operating segments. The fair value of the reporting unit is determined by using an estimate of future cash flows utilizing a risk-adjusted discount rate to calculate the net present value of future cash flows (income approach), and for some years by using a market approach based upon an analysis of valuation metrics of comparable peer companies, using Level 3 fair value inputs as provided for under ASC 820, Fair Value Measurement . If the fair value exceeds the carrying value of the reporting unit, there is no impairment. If the carrying amount exceeds the fair value, the company recognizes an impairment loss in the amount by which the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, with the impairment loss not to exceed the amount of goodwill allocated to the reporting unit. |
Equity-Based Compensation | Equity-Based Compensation The company has several stock-based employee compensation plans which are more fully described in Note 6. Equity-Based Incentive Plans |
Income Taxes | Income Taxes The company accounts for income taxes and the related accounts under the liability method. Deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted rates expected to be in effect during the year in which the basis differences reverse. |
Earnings Per Share | 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 stock equivalents as of and for the years ended December 31, 2022, 2021, and 2020. Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued) The following table presents a reconciliation of the numerators and the denominators of the company’s basic and diluted earnings per share computations for the years ended December 31 (in thousands, except per share data): 2022 2021 Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 3,862,674 183,393 $ 21.06 $ 3,214,066 205,115 $ 15.67 Dilutive common share equivalents - 1,229 - 1,500 Diluted earnings per share $ 3,862,674 184,622 $ 20.92 $ 3,214,066 206,615 $ 15.56 2020 Net Income Shares Per Share (Numerator) (Denominator) Amount Basic earnings per share $ 550,822 211,140 $ 2.61 Dilutive common share equivalents - 1,205 Diluted earnings per share $ 550,822 212,345 $ 2.59 |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the company to significant concentrations of credit risk principally consist of temporary cash investments and accounts receivable. When advantageous, the company places its temporary cash with high credit quality financial institutions and companies and limits the amount of credit exposure from any one entity. The company is exposed to credit risk in the event of nonpayment by customers. The company mitigates its exposure to credit risk, which it generally extends initially 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. |
Derivative Financial Instruments | Derivative Financial Instruments The company recognizes all derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. Changes in the fair value of derivatives that are designated as hedges, depending on the nature of the hedge, are recognized as either an offset against the change in fair value of the hedged balance sheet item in the case of fair value hedges or as other comprehensive income in the case of cash flow hedges, until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings for fair value hedges. The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements. In the normal course of business, the company has derivative financial instruments in the form of forward contracts in various metallic commodities, may have involvement with derivative financial instruments related to managing fluctuations in foreign exchange rates, and in the past has had derivative financial instruments related to managing fluctuations in interest rates. At the time of acquiring these financial instruments, the company designates and assigns these instruments as hedges of specific assets, liabilities or anticipated transactions. When hedged assets or liabilities are sold or extinguished, or the anticipated transaction being hedged is no longer expected to occur, the company recognizes the gain or loss on the designated hedged financial instrument. Note 1. Description of the Business and Summary of Significant Accounting Policies (Continued) The company routinely enters into forward exchange traded futures and option contracts to manage price risk associated with nonferrous metal inventory, as well as purchases and sales of nonferrous (primarily aluminum and copper) and ferrous metals, to reduce exposure to commodity related price fluctuations. The company does not enter into these derivative financial instruments for speculative purposes. |
Description of the Business a_3
Description of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Description of the Business and Summary of Significant Accounting Policies | |
Schedule of Inventories | 2022 2021 Raw materials $ 1,608,344 $ 1,870,300 Supplies 629,074 552,616 Work in progress 256,071 402,207 Finished goods 636,475 706,007 Total inventories $ 3,129,964 $ 3,531,130 |
Schedule of Property, Plant and Equipment | The company’s property, plant and equipment consisted of the following at December 31 (in thousands): 2022 2021 Land and improvements $ 521,881 $ 350,898 Buildings and improvements 1,238,824 873,131 Plant, machinery and equipment 6,683,237 5,193,405 Construction in progress 780,741 1,839,110 9,224,683 8,256,544 Less accumulated depreciation 3,851,018 3,505,114 Property, plant and equipment, net $ 5,373,665 $ 4,751,430 |
Schedule of Finite-Lived Intangible Assets | The company’s intangible assets consisted of the following at December 31 (in thousands): Weighted Average Useful Amortization 2022 2021 Life Period Customer, vendor and scrap generator relationships $ 420,512 $ 526,886 10 to 25 years 23 years Trade names 147,950 147,950 15 to 25 years 19 years Other 600 1,350 5 years 5 years 569,062 676,186 22 years Less accumulated amortization 301,555 380,841 $ 267,507 $ 295,345 |
Schedule of Intangible Assets, Future Amortization Expense | Estimated amortization expense related to amortizable intangibles for the years ending December 31 is as follows (in thousands): 2023 $ 27,439 2024 26,701 2025 24,783 2026 23,820 2027 21,837 Thereafter 142,927 Total $ 267,507 |
Schedule of Goodwill | The company’s goodwill consisted of the following at December 31 (in thousands): 2022 2021 Steel Operations Segment $ 272,133 $ 272,133 Metals Recycling Operations Segment 228,009 179,777 Steel Fabrication Operations Segment 1,925 1,925 $ 502,067 $ 453,835 |
Reconciliation of Basic and Diluted Earnings Per Share | The following table presents a reconciliation of the numerators and the denominators of the company’s basic and diluted earnings per share computations for the years ended December 31 (in thousands, except per share data): 2022 2021 Net Income Shares Per Share Net Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic earnings per share $ 3,862,674 183,393 $ 21.06 $ 3,214,066 205,115 $ 15.67 Dilutive common share equivalents - 1,229 - 1,500 Diluted earnings per share $ 3,862,674 184,622 $ 20.92 $ 3,214,066 206,615 $ 15.56 2020 Net Income Shares Per Share (Numerator) (Denominator) Amount Basic earnings per share $ 550,822 211,140 $ 2.61 Dilutive common share equivalents - 1,205 Diluted earnings per share $ 550,822 212,345 $ 2.59 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-Term Debt. | |
Schedule of Long-term Debt Instruments | The company’s borrowings consisted of the following at December 31 (in thousands): 2022 2021 2.800% senior notes due 2024 $ 400,000 $ 400,000 2.400% senior notes due 2025 400,000 400,000 5.000% senior notes due 2026 400,000 400,000 1.650% senior notes due 2027 350,000 350,000 3.450% senior notes due 2030 600,000 600,000 3.250% senior notes due 2031 500,000 500,000 3.250% senior notes due 2050 400,000 400,000 Other obligations 63,726 105,422 Total debt 3,113,726 3,155,422 Less debt issuance costs and original issue discounts 43,151 49,546 Total amounts outstanding 3,070,575 3,105,876 Less current maturities 57,334 97,174 Long-term debt $ 3,013,241 $ 3,008,702 |
Schedule of Maturities of Long-term Debt | Maturities of outstanding debt as of December 31, 2022, are as follows (in thousands): 2023 $ 57,334 2024 401,800 2025 401,608 2026 401,481 2027 351,142 Thereafter 1,500,361 $ 3,113,726 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Schedule of Components of Income Tax Expense (Benefit) | The company files a consolidated federal income tax return. The current and deferred federal and state income tax expense for the years ended December 31 is as follows (in thousands): 2022 2021 2020 Current income tax expense $ 1,107,379 $ 643,639 $ 88,914 Deferred income tax expense 34,198 318,617 45,736 Total income tax expense $ 1,141,577 $ 962,256 $ 134,650 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory rates to the actual effective tax rates for the years ended December 31 are as follows: 2022 2021 2020 Statutory federal tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.6 2.5 2.6 Release of valuation allowance - - (2.9) Federal research & development credits (0.6) (0.7) (2.1) Other permanent differences (0.3) 0.1 0.5 Effective tax rate 22.7 % 22.9 % 19.1 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the company’s deferred tax assets and liabilities at December 31 are as follows (in thousands): 2022 2021 Deferred tax assets Accrued expenses and allowances $ 34,052 $ 24,324 Inventories 8,028 9,088 Net operating loss carryforwards 16,412 20,333 Other 8,091 8,776 66,583 62,521 Less: valuation allowance (805) (805) Total net deferred tax assets 65,778 61,716 Deferred tax liabilities Property, plant and equipment (951,404) (846,942) Amortizable assets (1,304) (62,339) Other (2,173) (7,340) Total deferred tax liabilities (954,881) (916,621) Net deferred tax liability $ (889,103) $ (854,905) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2022 2021 2020 Balance at January 1 $ 20,466 $ 12,830 $ 10,162 Increases related to current year tax positions 9,600 8,250 4,350 Increases related to prior year tax positions 364 2,095 - Decreases related to prior year tax positions (1,784) (2,709) (1,682) Balance at December 31 $ 28,646 $ 20,466 $ 12,830 |
Equity-Based Incentive Plans (T
Equity-Based Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity-Based Incentive Plans | |
Schedule of Restricted Stock Units Award Activity | A summary of the company’s RSU activity and outstanding RSUs as of December 31, 2022, are presented below (dollars in thousands except grant date fair value): Weighted Aggregate Number Average Grant Intrinsic Unrecognized of RSUs Date Fair Value Value Compensation Outstanding RSUs as of January 1, 2020 1,557,994 $ 32.53 $ 53,034 $ 33,581 Granted 1,017,518 33.54 Vested (811,317) 36.09 Forfeited (65,616) 32.20 As of December 31, 2020 1,698,579 $ 31.44 $ 62,627 $ 35,821 Granted 627,973 59.38 Vested (895,706) 32.30 Forfeited (82,588) 32.47 As of December 31, 2021 1,348,258 $ 43.82 $ 83,686 $ 39,657 Granted 481,926 98.29 Vested (786,622) 37.38 Forfeited (70,011) 46.82 As of December 31, 2022 (nonvested) 973,551 $ 71.80 $ 94,765 $ 44,394 |
Schedule of Performance Period Transition Awards | The Compensation Committee granted the following three-year performance period awards and two-year performance period transition awards, which have been earned and have or will be issued over the vesting period as follows: Maximum Shares That Award Could Be Issued Earned Award Issued/Issuable 2017 LTIP Award: Three-year performance period award 182,274 164,047 54,683 March 2020 54,682 March 2021 54,682 March 2022 2019 LTIP Award: Three-year performance period award 422,008 379,811 379,811 March 2022 2020 LTIP Award: Three-year performance period award 405,922 356,845 356,845 March 2023 Two-year performance period transition award 9,764 8,300 8,300 March 2022 2021 LTIP Award: Three-year performance period award 360,189 * * 2022 LTIP Award: Three-year performance period award 249,759 * * * Not yet earned as performance period not complete. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Financial Instruments | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following summarizes the company’s futures contract commitments as of December 31, 2022: Commodity Futures Long/Short Metric Tons Aluminum Long 8,750 Aluminum Short 13,850 Copper Long 10,250 Copper Short 28,822 |
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 and gains or losses related to derivatives included in the company’s consolidated statements of income as of and for the years ended December 31 (in thousands): Asset Derivatives Liability Derivatives Fair Value Fair Value Balance sheet location December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Derivative instruments designated as hedges Commodity futures Other current assets $ 2,169 $ 1,278 $ 2,119 $ 7,430 Derivative instruments not designated as hedges Commodity futures Other current assets 2,102 4,319 5,269 6,171 Total derivative instruments $ 4,271 $ 5,597 $ 7,388 $ 13,601 Note 7. 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 agreements totaled $23.5 million and $24.9 million at December 31, 2022, and 2021, respectively, and are reflected in other current assets in the consolidated balance sheets. Amount of Location of gain gain (loss) Location of gain Amount of gain (loss) recognized recognized in Hedged items in (loss) recognized (loss) recognized in in income on income on fair value hedge in income on income on related derivatives derivatives relationships related hedged items hedged items For the Year Ended December 31, 2022 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ 2,284 Firm commitments Costs of goods sold $ (2,290) Inventory Costs of goods sold (708) Derivatives not designated $ (2,998) as hedging instruments Commodity futures Costs of goods sold $ 24,748 For the Year Ended December 31, 2021 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ (1,369) Firm commitments Costs of goods sold $ 3,354 Inventory Costs of goods sold 1,054 Derivatives not designated $ 4,408 as hedging instruments Commodity futures Costs of goods sold $ (33,517) For the Year Ended December 31, 2020 Derivatives in fair value hedging relationships Commodity futures Costs of goods sold $ (2,004) Firm commitments Costs of goods sold $ (79) Inventory Costs of goods sold (482) Derivatives not designated $ (561) as hedging instruments Commodity futures Costs of goods sold $ (17,368) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 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 December 31 (in thousands): Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) December 31, 2022 Short-term investments $ 628,215 $ - $ 628,215 $ - Commodity futures – financial assets 4,271 - 4,271 - Commodity futures – financial liabilities 7,388 - 7,388 - December 31, 2021 Commodity futures – financial assets $ 5,597 $ - $ 5,597 $ - Commodity futures – financial liabilities 13,601 - 13,601 - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies | |
Schedule of Unconditional Purchase Obligations | The company’s commitments for these agreements with “take or pay” or other similar commitment provisions for the years ending December 31 are as follows (in thousands): 2023 $ 363,988 2024 85,574 2025 44,934 2026 25,470 2027 25,117 Thereafter 181,811 $ 726,894 |
Transactions with Affiliated _2
Transactions with Affiliated Companies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Transactions with Affiliated Companies | |
Schedule of Related Party Transactions | The company purchases and sells recycled and scrap metal, and steel with other smaller affiliated companies, including our equity method investments and the addition of New Process Steel during 2022. These transactions for the years ended December 31, are as follows (in thousands): 2022 2021 2020 Sales $ 791,523 $ 32,107 $ 13,791 Accounts receivable 79,769 5,049 3,937 Purchases 127,860 163,453 132,560 Accounts payable 9,934 13,722 8,919 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Schedule of operating lease right-of-use assets and lease obligations | Operating lease right-of-use assets and lease obligations included in the consolidated balance sheets at December 31, are as follows (in thousands): 2022 2021 Right-of-use assets under operating leases: Other assets - noncurrent $ 110,638 $ 100,124 Lease obligations under operating leases: Accrued liabilities $ 18,850 $ 17,822 Other liabilities - noncurrent 91,793 82,252 $ 110,643 $ 100,074 |
Schedule of future operating lease liabilities | Future operating lease liabilities as of December 31, 2022, for the next five years and thereafter are as follows (in thousands): 2023 $ 22,784 2024 18,994 2025 15,329 2026 11,259 2027 9,340 Thereafter 55,719 Total undiscounted cash flows 133,425 Less imputed interest (22,782) Lease obligations under operating leases $ 110,643 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 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 year ended Steel Recycling Fabrication December 31, 2022 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 13,801,448 $ 1,545,347 $ 4,245,803 $ 1,259,173 $ - $ 20,851,771 External Non-United States 760,929 619,361 183 28,530 - 1,409,003 Other segments 538,540 2,230,928 11,221 1,281 (2,781,970) - 15,100,917 4,395,636 4,257,207 1,288,984 (2,781,970) 22,260,774 Operating income (loss) 3,095,348 117,266 2,424,655 (599,828) (1) 54,381 5,091,822 Income (loss) before income taxes 3,057,560 117,803 2,417,752 (625,037) 52,991 (2) 5,021,069 Depreciation and amortization 295,386 53,893 9,727 25,196 - 384,202 Capital expenditures 611,154 68,074 17,519 212,155 - 908,902 As of December 31, 2022 Assets $ 8,607,290 $ 1,320,368 $ 1,349,138 $ 3,007,942 (3) $ (124,754) (4) $ 14,159,984 Note 13. Segment Information (Continued) Footnotes related to the year ended December 31, 2022, segment results (in millions): (1) Corporate SG&A $ (77.8) (2) Gross profit increase from intra-company sales $ 53.0 Companywide equity-based compensation (67.3) Profit sharing (444.4) Other, net (10.3) $ (599.8) (3) Cash and equivalents $ 1,463.2 (4) Elimination of intra-company receivables $ (58.2) Short-term investments 628.2 Elimination of intra-company debt (46.9) Accounts receivable 33.3 Elimination of intra-company profit in inventory (19.7) Inventories 90.4 $ (124.8) Property, plant and equipment, net 375.6 Intra-company debt 46.9 Investments in unconsolidated affiliates 226.6 Other 143.7 $ 3,007.9 Metals Steel For the year ended Steel Recycling Fabrication December 31, 2021 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 12,618,917 $ 1,658,843 $ 1,761,078 $ 1,252,095 $ - $ 17,290,933 External Non-United States 580,225 524,629 569 12,494 - 1,117,917 Other segments 823,991 2,406,649 3,063 2,382 (3,236,085) - 14,023,133 4,590,121 1,764,710 1,266,971 (3,236,085) 18,408,850 Operating income (loss) 4,360,488 181,986 365,250 (551,725) (1) (54,894) 4,301,105 Income (loss) before income taxes 4,327,300 181,579 362,473 (606,021) (56,261) (2) 4,209,070 Depreciation and amortization 263,125 55,620 9,961 18,947 - 347,653 Capital expenditures 937,011 46,360 12,939 9,929 - 1,006,239 As of December 31, 2021 Assets $ 8,686,216 $ 1,266,920 $ 1,195,396 $ 1,523,830 (3) $ (141,128) (4) $ 12,531,234 Footnotes related to the year ended December 31, 2021, segment results (in millions): (1) Corporate SG&A $ (78.0) (2) Gross profit decrease from intra-company sales $ (56.3) Companywide equity-based compensation (78.8) Profit sharing (379.3) Other, net (15.6) $ (551.7) (3) Cash and equivalents $ 1,088.8 (4) Elimination of intra-company receivables $ (48.9) Accounts receivable 27.5 Elimination of intra-company debt (19.6) Inventories 94.2 Elimination of intra-company profit in inventory (72.6) Property, plant and equipment, net 128.9 $ (141.1) Intra-company debt 19.6 Other 164.8 $ 1,523.8 Note 13. Segment Information (Continued) Metals Steel For the year ended Steel Recycling Fabrication December 31, 2020 Operations Operations Operations Other Eliminations Consolidated Net sales - disaggregated revenue External $ 6,873,209 $ 820,262 $ 895,227 $ 500,496 $ - $ 9,089,194 External Non-United States 263,895 247,662 474 257 - 512,288 Other segments 318,533 1,335,216 10,663 434 (1,664,846) - 7,455,637 2,403,140 906,364 501,187 (1,664,846) 9,601,482 Operating income (loss) 889,480 32,991 120,575 (188,525) (1) (7,379) 847,142 Income (loss) before income taxes 833,035 27,753 116,625 (263,470) (8,465) (2) 705,478 Depreciation and amortization 251,590 50,099 10,819 13,281 - 325,789 Capital expenditures 1,132,298 32,875 15,234 17,648 - 1,198,055 Footnotes related to the year ended December 31, 2020, segment results (in millions): (1) Corporate SG&A $ (57.9) (2) Gross profit decrease from intra-company sales $ (8.5) Companywide equity-based compensation (48.5) Profit sharing (58.3) Asset impairment charges (19.4) Other, net (4.4) $ (188.5) |
Description of the Business a_4
Description of the Business and Summary of Significant Accounting Policies (Description of the Business) (Details) $ in Thousands | 12 Months Ended | |||
Apr. 01, 2022 | Dec. 31, 2022 USD ($) segment item | Dec. 31, 2021 USD ($) | Dec. 31, 2020 | |
Segment Reporting Information | ||||
Number of reportable segments | segment | 3 | |||
Workforce represented by collective bargaining agreements (as a percent) | 5% | |||
Number of locations under collective bargaining arrangements | item | 6 | |||
Redeemable noncontrolling interests | $ 181,503 | $ 211,414 | ||
Steel Operations | ||||
Segment Reporting Information | ||||
Percentage of external net sales | 65% | 72% | 74% | |
Metals Recycling Operations | ||||
Segment Reporting Information | ||||
Percentage of external net sales | 10% | 12% | 11% | |
Steel Fabrication Operations | ||||
Segment Reporting Information | ||||
Percentage of external net sales | 19% | 10% | 9% | |
United Steel Supply, LLC | Steel Operations | ||||
Segment Reporting Information | ||||
Noncontrolling interest, ownership percentage | 87.50% | |||
Mesabi Nugget | ||||
Segment Reporting Information | ||||
Noncontrolling interest, ownership percentage | 85% | 85% | ||
Redeemable noncontrolling interests | $ 111,200 | $ 111,200 |
Description of the Business a_5
Description of the Business and Summary of Significant Accounting Policies (Credit Losses) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Description of the Business and Summary of Significant Accounting Policies | ||
Accounts receivable, net | $ 2,056,100 | $ 1,916,400 |
Allowance for credit losses | $ 5,678 | $ 6,161 |
Description of the Business a_6
Description of the Business and Summary of Significant Accounting Policies (Cash and Equivalents, and Restricted Cash and Equivalents) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Description of the Business and Summary of Significant Accounting Policies | ||||
Restricted Cash and Cash Equivalents | $ 5.5 | $ 5.5 | $ 5.5 | $ 5.9 |
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_7
Description of the Business and Summary of Significant Accounting Policies (Short-term Investments) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Short Term Investments [Line Items] | |
Short-term investments | $ 628,215 |
Commercial Paper [Member] | |
Short Term Investments [Line Items] | |
Short-term investments | 145,700 |
US Treasury Securities [Member] | |
Short Term Investments [Line Items] | |
Short-term investments | $ 482,500 |
Description of the Business a_8
Description of the Business and Summary of Significant Accounting Policies (Inventories) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Description of the Business and Summary of Significant Accounting Policies | ||
Raw materials | $ 1,608,344 | $ 1,870,300 |
Supplies | 629,074 | 552,616 |
Work in progress | 256,071 | 402,207 |
Finished goods | 636,475 | 706,007 |
Total inventories | $ 3,129,964 | $ 3,531,130 |
Description of the Business a_9
Description of the Business and Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, plant and equipment | |||
Depreciation expense | $ 349,400 | $ 311,400 | $ 290,500 |
Property, plant and equipment, gross | 9,224,683 | 8,256,544 | |
Less accumulated depreciation | 3,851,018 | 3,505,114 | |
Property, plant and equipment, net | 5,373,665 | 4,751,430 | |
Land and improvements | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 521,881 | 350,898 | |
Buildings and improvements | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 1,238,824 | 873,131 | |
Buildings and improvements | Minimum | |||
Property, plant and equipment | |||
Property, plant and equipment useful life | 10 years | ||
Buildings and improvements | Maximum | |||
Property, plant and equipment | |||
Property, plant and equipment useful life | 40 years | ||
Plant, machinery and equipment | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 6,683,237 | 5,193,405 | |
Plant, machinery and equipment | Minimum | |||
Property, plant and equipment | |||
Property, plant and equipment useful life | 3 years | ||
Plant, machinery and equipment | Maximum | |||
Property, plant and equipment | |||
Property, plant and equipment useful life | 20 years | ||
Construction in progress | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 780,741 | $ 1,839,110 |
Description of the Business _10
Description of the Business and Summary of Significant Accounting Policies (Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Gross (Excluding Goodwill) | $ 569,062 | $ 676,186 | |
Less accumulated amortization | 301,555 | 380,841 | |
Intangible Assets, Net (Excluding Goodwill), Total | 267,507 | 295,345 | |
Amortization of intangible assets | 27,837 | 29,232 | $ 28,999 |
Estimated amortization expense | |||
2023 | 27,439 | ||
2024 | 26,701 | ||
2025 | 24,783 | ||
2026 | 23,820 | ||
2027 | 21,837 | ||
Thereafter | 142,927 | ||
Total | $ 267,507 | ||
Impairment of Long-Lived Tangible and Definite-Lived Intangible Assets | |||
Asset impairment charges | 19,409 | ||
Corporate Joint Venture [Member] | |||
Impairment of Long-Lived Tangible and Definite-Lived Intangible Assets | |||
Asset impairment charges | 19,400 | ||
Reduction of net income related to asset impairment | 12,000 | ||
Noncontrolling Interests | Corporate Joint Venture [Member] | |||
Impairment of Long-Lived Tangible and Definite-Lived Intangible Assets | |||
Asset impairment charges | $ 2,400 | ||
Weighted average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 22 years | ||
Customer, vendor and scrap generator relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 420,512 | 526,886 | |
Finite-Lived Intangible Assets, Fully Amortized | $ 105,000 | ||
Customer, vendor and scrap generator relationships | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 10 years | ||
Customer, vendor and scrap generator relationships | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 25 years | ||
Customer, vendor and scrap generator relationships | Weighted average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 23 years | ||
Trade names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 147,950 | 147,950 | |
Trade names | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 15 years | ||
Trade names | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 25 years | ||
Trade names | Weighted average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 19 years | ||
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 600 | $ 1,350 | |
Useful Life | 5 years | ||
Other Intangible Assets [Member] | Weighted average | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life | 5 years |
Description of the Business _11
Description of the Business and Summary of Significant Accounting Policies (Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill | |||
Goodwill | $ 502,067 | $ 453,835 | |
Goodwill impairment loss | 0 | 0 | $ 0 |
Compensation expense for stock-based employee compensation plan | 69,200 | 80,200 | $ 50,700 |
Steel Operations | |||
Goodwill | |||
Goodwill | 272,133 | 272,133 | |
Metals Recycling Operations | |||
Goodwill | |||
Goodwill | 228,009 | 179,777 | |
Metals Recycling Operations | OmniSource | |||
Goodwill | |||
Goodwill decrease due to tax benefit related to the normal amortization of the component | 3,000 | ||
Goodwill impaired accumulated impairment loss | 346,800 | 346,800 | |
Steel Fabrication Operations | |||
Goodwill | |||
Goodwill | $ 1,925 | $ 1,925 |
Description of the Business _12
Description of the Business and Summary of Significant Accounting Policies (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share | |||
Antidilutive common share equivalents excluded from computation of earnings per share amount (in shares) | 0 | 0 | 0 |
Net Income (Numerator) | |||
Basic earnings per share (in dollars) | $ 3,862,674 | $ 3,214,066 | $ 550,822 |
Diluted earnings per share (in dollars) | $ 3,862,674 | $ 3,214,066 | $ 550,822 |
Weighted Average Shares (Denominator) | |||
Basic earnings per share (in shares) | 183,393,000 | 205,115,000 | 211,140,000 |
Dilutive common share equivalents (in shares) | 1,229,000 | 1,500,000 | 1,205,000 |
Diluted earnings per share (in shares) | 184,622,000 | 206,615,000 | 212,345,000 |
Per Share Amount | |||
Basic (in dollars per share) | $ 21.06 | $ 15.67 | $ 2.61 |
Diluted (in dollars per share) | $ 20.92 | $ 15.56 | $ 2.59 |
Business Combinations and Inv_2
Business Combinations and Investments in Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 01, 2022 | Jul. 29, 2022 | Apr. 01, 2022 | Jan. 31, 2022 | Aug. 31, 2020 | Mar. 01, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Purchase price paid in cash | $ 134,090 | $ 60,012 | |||||||
Percentage of employer's profit sharing contribution | 8% | 8% | 8% | ||||||
New Process Steel LP | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity interest acquired | 45% | ||||||||
ROCA ACERO, S.A. de C.V. | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Acquisition of interest (as a percent) | 100% | ||||||||
Unity Aluminum, Inc | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Acquisition of interest (as a percent) | 94.40% | ||||||||
United Steel Supply, LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Acquisition of interest (as a percent) | 75% | ||||||||
Percentage of voting equity interests remaining available | 12.50% | ||||||||
United Steel Supply, LLC | Option to Purchase Remaining Equity Interest After Fourth Anniversary | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Percentage of voting equity interests remaining available | 12.50% | ||||||||
Zimmer, S.A. de C.V. | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Acquisition of interest (as a percent) | 100% |
Long-Term Debt - By Issue (Deta
Long-Term Debt - By Issue (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Long Term Debt | ||
Total debt | $ 3,113,726 | $ 3,155,422 |
Less debt issuance costs and original issue discounts | 43,151 | 49,546 |
Long-term Debt, Total | 3,070,575 | 3,105,876 |
Less current maturities | 57,334 | 97,174 |
Long-term debt | 3,013,241 | 3,008,702 |
2.800% senior notes due 2024 | ||
Long Term Debt | ||
Total debt | $ 400,000 | 400,000 |
Stated interest rate | 2.80% | |
2.400% senior notes due 2025 | ||
Long Term Debt | ||
Total debt | $ 400,000 | 400,000 |
Stated interest rate | 2.40% | |
5.000% Senior Notes Due 2026 [Member] | ||
Long Term Debt | ||
Total debt | $ 400,000 | 400,000 |
Stated interest rate | 5% | |
1.650% senior notes due 2027 | ||
Long Term Debt | ||
Total debt | $ 350,000 | 350,000 |
Stated interest rate | 1.65% | |
3.450% senior notes due 2030 | ||
Long Term Debt | ||
Total debt | $ 600,000 | 600,000 |
Stated interest rate | 3.45% | |
3.250% senior notes due 2031 | ||
Long Term Debt | ||
Total debt | $ 500,000 | 500,000 |
Stated interest rate | 3.25% | |
3.250% senior notes due 2050 | ||
Long Term Debt | ||
Total debt | $ 400,000 | 400,000 |
Stated interest rate | 3.25% | |
Other obligations | ||
Long Term Debt | ||
Total debt | $ 63,726 | $ 105,422 |
Long-Term Debt - Senior Secured
Long-Term Debt - Senior Secured Credit Facility (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Long Term Debt | |||
Repayments of debt | $ 1,507,475 | $ 1,522,002 | $ 2,177,527 |
Consolidated interest coverage ratio | 54.42 | ||
Leverage ratio | 0.27 | ||
Senior secured revolving credit facility | |||
Long Term Debt | |||
Maximum borrowing capacity of credit facility | $ 1,200,000 | ||
Additional amount by which facility size can be increased | 500,000 | ||
Availability on the senior secured revolver | 1,200,000 | ||
Outstanding letters of credit and other obligations which reduce availability | 9,100 | ||
Borrowings outstanding | $ 0 | ||
Senior secured revolving credit facility | Minimum | |||
Long Term Debt | |||
Unused commitment fee (as a percent) | 0.15% | ||
Consolidated interest coverage ratio | 2.50 | ||
Senior secured revolving credit facility | Minimum | Secured Overnight Financing Rate ("SOFR") | |||
Long Term Debt | |||
Interest rate added to the base rate (as a percent) | 1.125% | ||
Senior secured revolving credit facility | Maximum | |||
Long Term Debt | |||
Unused commitment fee (as a percent) | 0.275% | ||
Leverage ratio | 0.60 | ||
Senior secured revolving credit facility | Maximum | Secured Overnight Financing Rate ("SOFR") | |||
Long Term Debt | |||
Interest rate added to the base rate (as a percent) | 1.75% |
Long-Term Debt - Senior Unsecur
Long-Term Debt - Senior Unsecured Notes (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | |
Long Term Debt | |||
Long-term Debt, Gross | $ 3,113,726 | $ 3,155,422 | |
Carrying amount | $ 3,070,575 | 3,105,876 | |
Senior Notes | |||
Long Term Debt | |||
Debt Instrument, Number of Tranches | loan | 7 | ||
5 1/4% Senior Notes due 2023 | |||
Long Term Debt | |||
Redemption price of debt instrument (as a percent) | 100.875% | ||
2.800% senior notes due 2024 | |||
Long Term Debt | |||
Long-term Debt, Gross | $ 400,000 | 400,000 | |
Stated interest rate | 2.80% | ||
Redemption price of debt instrument (as a percent) | 100% | ||
2.400% senior notes due 2025 | |||
Long Term Debt | |||
Long-term Debt, Gross | $ 400,000 | 400,000 | |
Stated interest rate | 2.40% | ||
Redemption price of debt instrument (as a percent) | 100% | ||
5.000% Senior Notes Due 2026 [Member] | |||
Long Term Debt | |||
Long-term Debt, Gross | $ 400,000 | 400,000 | |
Stated interest rate | 5% | ||
5.000% Senior Notes Due 2026 [Member] | Debt Instrument, Redemption, Period Three [Member] | |||
Long Term Debt | |||
Redemption price of debt instrument (as a percent) | 101.667% | ||
5.000% Senior Notes Due 2026 [Member] | Debt Instrument, Redemption, Period Four [Member] | |||
Long Term Debt | |||
Redemption price of debt instrument (as a percent) | 100.833% | ||
5.000% Senior Notes Due 2026 [Member] | Debt Instrument, Redemption, Period Five [Member] | |||
Long Term Debt | |||
Redemption price of debt instrument (as a percent) | 100% | ||
1.650% senior notes due 2027 | |||
Long Term Debt | |||
Long-term Debt, Gross | $ 350,000 | 350,000 | |
Stated interest rate | 1.65% | ||
Redemption price of debt instrument (as a percent) | 100% | ||
3.450% senior notes due 2030 | |||
Long Term Debt | |||
Long-term Debt, Gross | $ 600,000 | 600,000 | |
Stated interest rate | 3.45% | ||
Redemption price of debt instrument (as a percent) | 100% | ||
3.250% senior notes due 2031 | |||
Long Term Debt | |||
Long-term Debt, Gross | $ 500,000 | 500,000 | |
Stated interest rate | 3.25% | ||
Redemption price of debt instrument (as a percent) | 100% | ||
3.250% senior notes due 2050 | |||
Long Term Debt | |||
Long-term Debt, Gross | $ 400,000 | $ 400,000 | |
Stated interest rate | 3.25% | ||
Redemption price of debt instrument (as a percent) | 100% | ||
US Treasury (UST) Interest Rate [Member] | 2.800% senior notes due 2024 | |||
Long Term Debt | |||
Debt Instrument, Basis Spread on Variable Rate | 0.20% | ||
US Treasury (UST) Interest Rate [Member] | 2.400% senior notes due 2025 | |||
Long Term Debt | |||
Debt Instrument, Basis Spread on Variable Rate | 0.35% | ||
US Treasury (UST) Interest Rate [Member] | 1.650% senior notes due 2027 | |||
Long Term Debt | |||
Debt Instrument, Basis Spread on Variable Rate | 0.20% | ||
US Treasury (UST) Interest Rate [Member] | 3.450% senior notes due 2030 | |||
Long Term Debt | |||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||
US Treasury (UST) Interest Rate [Member] | 3.250% senior notes due 2031 | |||
Long Term Debt | |||
Debt Instrument, Basis Spread on Variable Rate | 0.40% | ||
US Treasury (UST) Interest Rate [Member] | 3.250% senior notes due 2050 | |||
Long Term Debt | |||
Debt Instrument, Basis Spread on Variable Rate | 0.30% |
Long-Term Debt - Other Secured
Long-Term Debt - Other Secured Obligations (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) subsidiary | Dec. 31, 2021 USD ($) | |
Long Term Debt | ||
Outstanding principal balance | $ 3,113,726 | $ 3,155,422 |
Senior secured revolving credit facility | ||
Long Term Debt | ||
Unused stand-by letter of credit | 1,200,000 | |
Maximum borrowing capacity of credit facility | 1,200,000 | |
Borrowings outstanding | $ 0 | |
Two Subsidiaries [Member] | Secured Debt [Member] | ||
Long Term Debt | ||
Number of subsidiaries | subsidiary | 2 | |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 4.80% | |
Outstanding principal balance | $ 8,600 | 10,400 |
Subsidiary One [Member] | Revolving Credit Facility | ||
Long Term Debt | ||
Secured letter of credit | 30,000 | |
Maximum borrowing capacity of credit facility | $ 100,000 | |
Line of Credit Facility, Interest Rate at Period End | 5.60% | |
Borrowings outstanding | $ 55,100 | 94,400 |
Subsidiary Two [Member] | Revolving Credit Facility | ||
Long Term Debt | ||
Maximum borrowing capacity of credit facility | $ 25,000 | |
Line of Credit Facility, Interest Rate at Period End | 5.65% | |
Borrowings outstanding | $ 0 | $ 0 |
Long-Term Debt - Outstanding De
Long-Term Debt - Outstanding Debt Maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Maturities of outstanding debt | |||
2023 | $ 57,334 | ||
2024 | 401,800 | ||
2025 | 401,608 | ||
2026 | 401,481 | ||
2027 | 351,142 | ||
Thereafter | 1,500,361 | ||
Total debt | 3,113,726 | $ 3,155,422 | |
Interest costs | |||
Interest costs incurred | 107,400 | 107,700 | $ 118,800 |
Interest costs incurred capitalized | $ 15,800 | $ 50,500 | $ 23,900 |
Long-Term Debt - Financing Acti
Long-Term Debt - Financing Activity (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Long Term Debt | |||||
Repayments of debt | $ 1,507,475 | $ 1,522,002 | $ 2,177,527 | ||
1.650% senior notes due 2027 | |||||
Long Term Debt | |||||
Debt Instrument, Face Amount | $ 350,000 | ||||
Stated interest rate | 1.65% | ||||
Redemption price of debt instrument (as a percent) | 100% | ||||
3.250% senior notes due 2050 | |||||
Long Term Debt | |||||
Debt Instrument, Face Amount | 400,000 | ||||
Stated interest rate | 3.25% | ||||
Redemption price of debt instrument (as a percent) | 100% | ||||
2.400% senior notes due 2025 | |||||
Long Term Debt | |||||
Debt Instrument, Face Amount | $ 400,000 | ||||
Stated interest rate | 2.40% | ||||
Redemption price of debt instrument (as a percent) | 100% | ||||
3.250% senior notes due 2031 | |||||
Long Term Debt | |||||
Debt Instrument, Face Amount | 500,000 | ||||
Stated interest rate | 3.25% | ||||
Redemption price of debt instrument (as a percent) | 100% | ||||
5 1/4% Senior Notes due 2023 | |||||
Long Term Debt | |||||
Debt Instrument, Face Amount | $ 400,000 | ||||
Redemption price of debt instrument (as a percent) | 100.875% | ||||
2.800% senior notes due 2024 | |||||
Long Term Debt | |||||
Stated interest rate | 2.80% | ||||
Redemption price of debt instrument (as a percent) | 100% | ||||
3.450% senior notes due 2030 | |||||
Long Term Debt | |||||
Stated interest rate | 3.45% | ||||
Redemption price of debt instrument (as a percent) | 100% | ||||
5.500% senior notes due 2024 | |||||
Long Term Debt | |||||
Debt Instrument, Face Amount | $ 500,000 | ||||
Stated interest rate | 5.50% | ||||
Redemption price of debt instrument (as a percent) | 102.75% | ||||
Senior Notes 1.650 Percent Due 2027 And Senior Notes 3.250 Percent Due 2050[Member] | |||||
Long Term Debt | |||||
Expenses recorded related to tender offer and early payoff of Senior Notes related to tender premiums, unamortized debt issuance cost write-off, and tender expenses | $ 10,300 | ||||
Senior Notes 2.400 Percent Due 2025 And Senior Notes 3.250 Percent Due 2031 [Member] | |||||
Long Term Debt | |||||
Expenses recorded related to tender offer and early payoff of Senior Notes related to tender premiums, unamortized debt issuance cost write-off, and tender expenses | $ 22,800 | ||||
4.125% Senior Note due 2025 [Member] | |||||
Long Term Debt | |||||
Debt Instrument, Face Amount | $ 350,000 | ||||
Stated interest rate | 4.125% | ||||
Redemption price of debt instrument (as a percent) | 102.063% | ||||
5.000% Senior Notes Due 2026 [Member] | |||||
Long Term Debt | |||||
Stated interest rate | 5% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Tax Assets, Valuation Allowance | $ 805,000 | $ 805,000 | |
Change in Valuation Allowance, Deferred Tax Asset | $ (21,200,000) | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 25,100,000 | 16,800,000 | |
Benefits (Expenses) from the decrease (increase) of interest expense | (480,000) | 205,000 | $ 450,000 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 1,200,000 | $ 561,000 | |
Minimum | |||
Income Tax Examination, Estimate of Possible Loss | 0 | ||
Maximum | |||
Income Tax Examination, Estimate of Possible Loss | 3,300,000 | ||
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards | $ 53,800,000 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense (Benefit) ) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | |||
Current income tax expense | $ 1,107,379 | $ 643,639 | $ 88,914 |
Deferred income tax expense | 34,198 | 318,617 | 45,736 |
Total income tax expense | $ 1,141,577 | $ 962,256 | $ 134,650 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | |||
Statutory federal tax rate | 21% | 21% | 21% |
State income taxes, net of federal benefit | 2.60% | 2.50% | 2.60% |
Release of valuation allowance | (2.90%) | ||
Federal research & development credits | (0.60%) | (0.70%) | (2.10%) |
Other permanent differences | (0.30%) | 0.10% | 0.50% |
Effective tax rate | 22.70% | 22.90% | 19.10% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Accrued expenses and allowances | $ 34,052 | $ 24,324 |
Inventories | 8,028 | 9,088 |
Net operating loss carryforwards | 16,412 | 20,333 |
Other | 8,091 | 8,776 |
Subtotal | 66,583 | 62,521 |
Less: valuation allowance | (805) | (805) |
Total net deferred tax assets | 65,778 | 61,716 |
Deferred tax liabilities | ||
Property, plant and equipment | (951,404) | (846,942) |
Amortizable Assets | (1,304) | (62,339) |
Other | (2,173) | (7,340) |
Total deferred tax liabilities | (954,881) | (916,621) |
Net deferred tax liability | $ (889,103) | $ (854,905) |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits Roll Forward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | |||
Unrecognized Tax Benefits, Beginning Balance | $ 20,466 | $ 12,830 | $ 10,162 |
Increases related to current year tax positions | 9,600 | 8,250 | 4,350 |
Increases related to prior year tax positions | 364 | 2,095 | |
Decreases related to prior year tax positions | (1,784) | (2,709) | (1,682) |
Unrecognized Tax Benefits, Ending Balance | $ 28,646 | $ 20,466 | $ 12,830 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2022 | Feb. 28, 2022 | Jul. 31, 2021 | Feb. 29, 2020 | |
Shareholders' Equity | |||||||
Dividends, Common Stock, Cash | $ 245,287 | $ 210,939 | $ 210,496 | ||||
Common Stock, Dividends, Per Share, Declared | $ 1.36 | $ 1.04 | $ 1 | ||||
Payments of Ordinary Dividends, Common Stock | $ 237,163 | $ 212,968 | $ 209,248 | ||||
Stock Repurchase Program, Authorized Amount | $ 1,500,000 | $ 1,250,000 | $ 1,000,000 | $ 500,000 | |||
Share repurchases (in shares) | 23 | 16.9 | 4.4 | ||||
Share repurchases | $ 1,800,905 | $ 1,060,632 | $ 106,529 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 1,300 |
Equity-Based Incentive Plans (2
Equity-Based Incentive Plans (2015 Equity Incentive Plan ) (Details) | 1 Months Ended | 12 Months Ended | |||||
Feb. 28, 2022 | Feb. 28, 2021 | May 31, 2019 shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | May 31, 2015 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award Retirement Eligible Age For Vesting Of Awards | 59 years 6 months | ||||||
Performance/Service period one | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | ||||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 481,926 | 627,973 | 1,017,518 | ||||
Restricted Stock Units (RSUs) | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | 2 years | |||||
Restricted Stock Units (RSUs) | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | 4 years | |||||
Deferred Stock Units (DSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 20,000 | 25,000 | 52,000 | ||||
Stock Appreciation Rights (SARs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 171,200 | 325,500 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested And Vested, Number | 102,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Intrinsic Value, Amount Per Share | $ / shares | $ 38.43 | ||||||
Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested And Vested, Number | 0 | ||||||
Unrestricted Stock Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested And Vested, Number | 0 | ||||||
Equity Incentive 2015 Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 12,500,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 8,000,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,500,000 | ||||||
Equity Incentive 2015 Plan [Member] | Stock Options And Stock Appreciation Rights [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award Share Limit Against Which Full Value Awards Will Be Counted | 1 | ||||||
Equity Incentive 2015 Plan [Member] | Restricted Stock Units, Deferred Stock Units, Restricted Stock And Unrestricted Stock Awards, And Performance Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award Share Limit Against Which Full Value Awards Will Be Counted | 2.09 |
Equity-Based Incentive Plans (R
Equity-Based Incentive Plans (Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of RSUs | ||||
Outstanding | 1,348,258 | 1,698,579 | 1,557,994 | |
Granted | 481,926 | 627,973 | 1,017,518 | |
Vested | (786,622) | (895,706) | (811,317) | |
Forfeited | (70,011) | (82,588) | (65,616) | |
Outstanding | 973,551 | 1,348,258 | 1,698,579 | |
Weighted Average Grant Date Fair Value | ||||
Outstanding | $ 43.82 | $ 31.44 | $ 32.53 | |
Granted | 98.29 | 59.38 | 33.54 | |
Vested | 37.38 | 32.30 | 36.09 | |
Forfeited | 46.82 | 32.47 | 32.20 | |
Outstanding | $ 71.80 | $ 43.82 | $ 31.44 | |
Aggregate Intrinsic Value | ||||
Outstanding | $ 94,765 | $ 83,686 | $ 62,627 | $ 53,034 |
Unrecognized Compensation | ||||
Outstanding | $ 44,394 | 39,657 | 35,821 | $ 33,581 |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||
Weighted average remaining life | 1 year 6 months 21 days | |||
Fair value of instruments vested during the period | $ 79,100 | $ 56,500 | $ 29,900 | |
Total shares withheld | 249,000 | 290,000 | 266,000 |
Equity-Based Incentive Plans (L
Equity-Based Incentive Plans (Long-Term Incentive Compensation Program) (Details) | 12 Months Ended |
Dec. 31, 2022 shares | |
Performance/Service period one | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 100% |
Vesting period | 2 years |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
General performance period | 3 years |
Growth and profitability measures | 4 |
Vesting percentage | 33.33% |
Vesting period | 2 years |
Performance Shares | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards earned as percentage of specified compensation | 0% |
Performance Shares | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards earned as percentage of specified compensation | 100% |
2017 Award | Senior Executive Officers | Three-year performance period award | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum Shares That Could Be Issued | 182,274 |
Award Earned | 164,047 |
2017 Award | Senior Executive Officers | Three-year performance period award | Performance/Service period one | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Issued/Issuable | 54,683 |
2017 Award | Senior Executive Officers | Three-year performance period award | Performance/Service period two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Issued/Issuable | 54,682 |
2017 Award | Senior Executive Officers | Three-year performance period award | Performance/Service period three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Issued/Issuable | 54,682 |
2019 Award | Senior Executive Officers | Three-year performance period award | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum Shares That Could Be Issued | 422,008 |
Award Earned | 379,811 |
2019 Award | Senior Executive Officers | Three-year performance period award | Performance/Service period one | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Issued/Issuable | 379,811 |
2020 Award | Senior Executive Officers | Two-year performance period transition award | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum Shares That Could Be Issued | 9,764 |
Award Earned | 8,300 |
2020 Award | Senior Executive Officers | Two-year performance period transition award | Performance/Service period one | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Issued/Issuable | 8,300 |
2020 Award | Senior Executive Officers | Three-year performance period award | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum Shares That Could Be Issued | 405,922 |
Award Earned | 356,845 |
2020 Award | Senior Executive Officers | Three-year performance period award | Performance/Service period one | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards Issued/Issuable | 356,845 |
2021 Award | Senior Executive Officers | Three-year performance period award | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum Shares That Could Be Issued | 360,189 |
2022 Award | Senior Executive Officers | Three-year performance period award | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum Shares That Could Be Issued | 249,759 |
Equity-Based Incentive Plans _2
Equity-Based Incentive Plans (2018 Executive Incentive Compensation Plan) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Performance/Service period one | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | ||
Executive Incentive Compensation Plan 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.33% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,400,000 | 1,400,000 | 1,500,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 26,000 | 157,000 | 148,000 |
Award Market Value | $ 3.2 | $ 8.7 | $ 5.1 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Gains or losses on derivative instruments, statement of income | |||
Ineffectiveness - amount of gain (loss) recognized in income on related hedged items | $ 72,000 | $ (101,000) | $ 68,000 |
Derivative, Excluded Component, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Goods Sold. | Cost of Goods Sold. | Cost of Goods Sold. |
Gain (Loss) excluded from hedge effectiveness testing | $ (786,000) | $ 3,100,000 | $ (2,600,000) |
Amount of gain (loss) related to cash flow hedges | 15,000,000 | 40,900,000 | 2,800,000 |
Net gains (losses) reclassified | (11,100,000) | 46,100,000 | $ 265,000 |
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months | 1,200,000 | ||
Futures | Commodity contract | |||
Commodity contract commitments | |||
Fair value of derivatives including required margin deposits | $ 23,500,000 | $ 24,900,000 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of Notional Amounts of Outstanding Derivative Positions) (Details) - Futures | 12 Months Ended |
Dec. 31, 2022 T | |
Aluminum | Long | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 8,750 |
Aluminum | Short | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 13,850 |
Copper | Long | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 10,250 |
Copper | Short | |
Derivative [Line Items] | |
Commodity contract (in MT/Lbs) | 28,822 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commodity futures, asset derivatives | $ 4,271 | $ 5,597 |
Commodity futures, liability derivatives | 7,388 | 13,601 |
Designated as hedging instrument | Commodity contract | Futures | Other current assets | ||
Commodity futures, asset derivatives | 2,169 | 1,278 |
Commodity futures, liability derivatives | 2,119 | 7,430 |
Not designated as hedging instrument | Commodity contract | Futures | Other current assets | ||
Commodity futures, asset derivatives | 2,102 | 4,319 |
Commodity futures, liability derivatives | $ 5,269 | $ 6,171 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Schedule of Derivatives Instruments Statements of Financial Position) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Designated as hedging instrument | |||
Amount of gain (loss) recognized in income on related hedged items | $ (2,998) | $ 4,408 | $ (561) |
Designated as hedging instrument | Commodity contract | Futures | Cost of goods sold | |||
Amount of gain (loss) recognized in income on derivatives | 2,284 | (1,369) | (2,004) |
Designated as hedging instrument | Commodity contract | Firm commitments | Futures | Cost of goods sold | |||
Amount of gain (loss) recognized in income on related hedged items | (2,290) | 3,354 | (79) |
Designated as hedging instrument | Commodity contract | Inventory | Futures | Cost of goods sold | |||
Amount of gain (loss) recognized in income on related hedged items | (708) | 1,054 | (482) |
Not designated as hedging instrument | Commodity contract | Futures | Cost of goods sold | |||
Amount of gain (loss) recognized in income on derivatives | $ 24,748 | $ (33,517) | $ (17,368) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | $ 4,271 | $ 5,597 |
Commodity futures - financial liabilities | 7,388 | 13,601 |
Carrying amount | 3,070,575 | 3,105,876 |
Level 2 | ||
Assets and liabilities subject to fair value measurements | ||
Fair value of long-term debt, including current maturities | 2,700,000 | 3,300,000 |
Recurring | ||
Assets and liabilities subject to fair value measurements | ||
Short-term investments | 628,215 | |
Recurring | Level 2 | ||
Assets and liabilities subject to fair value measurements | ||
Short-term investments | 628,215 | |
Futures | Recurring | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 4,271 | 5,597 |
Commodity futures - financial liabilities | 7,388 | 13,601 |
Futures | Recurring | Level 2 | Commodity contract | ||
Assets and liabilities subject to fair value measurements | ||
Commodity futures - financial assets | 4,271 | 5,597 |
Commodity futures - financial liabilities | $ 7,388 | $ 13,601 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Commitments and Contingencies [Line Items] | |
Purchase Commitments Physical Commodity Requirements Utilization Period | 3 years |
Unrecorded Unconditional Purchase Obligation, Total | $ 726,894 |
2023 | 363,988 |
2024 | 85,574 |
Capital Addition Purchase Commitments [Member] | |
Commitments and Contingencies [Line Items] | |
Unrecorded Unconditional Purchase Obligation, Total | $ 1,400,000 |
Water Products [Member] | |
Commitments and Contingencies [Line Items] | |
Long-term Purchase Commitment, Period | 29 years |
Capital Addition Purchase Commitments [Member] | |
Commitments and Contingencies [Line Items] | |
2023 | $ 1,300,000 |
2024 | $ 100,000 |
Maximum | Physical Commodity and Commodity Transportation [Member] | |
Commitments and Contingencies [Line Items] | |
Long-term Purchase Commitment, Period | 5 years |
Maximum | Air Products [Member] | |
Commitments and Contingencies [Line Items] | |
Long-term Purchase Commitment, Period | 15 years |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Unconditional Purchase Obligations) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies | |
2023 | $ 363,988 |
2024 | 85,574 |
2025 | 44,934 |
2026 | 25,470 |
2027 | 25,117 |
Thereafter | 181,811 |
Unrecorded Unconditional Purchase Obligation, Total | $ 726,894 |
Transactions with Affiliated _3
Transactions with Affiliated Companies (Schedule of Related Party Transactions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Sales | $ 791,523 | $ 32,107 | $ 13,791 |
Accounts receivable | 79,769 | 5,049 | |
Other Smaller Affiliated Entities [Member] | |||
Related Party Transaction [Line Items] | |||
Sales | 791,523 | 32,107 | 13,791 |
Accounts receivable | 79,769 | 5,049 | 3,937 |
Purchases | 127,860 | 163,453 | 132,560 |
Accounts payable | $ 9,934 | $ 13,722 | $ 8,919 |
Retirement Plans (Details)
Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Plans | |||
Defined Contribution Plan, Cost Recognized | $ 466.9 | $ 382.8 | $ 74.5 |
Profit sharing component | $ 421.6 | $ 359.8 | $ 58.3 |
Percentage of employer's profit sharing contribution | 8% | 8% | 8% |
Employer's contribution to profit sharing plans for eligible employees | $ 337.2 | $ 287.8 | $ 46.7 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Right of use asset | $ 110,638 | $ 100,124 | |
Lease liability | $ 110,643 | $ 100,074 | |
Option to extend operating lease | true | ||
Option to terminate operating lease | true | ||
Weighted average remaining lease term | 10 years | 10 years | |
Weighted average discount rate | 3.86% | 3.60% | |
Operating lease expenses | $ 23,700 | $ 22,500 | $ 21,300 |
Short term lease expenses | 35,800 | 28,000 | 19,100 |
Cash paid related to operating lease obligations | 20,100 | 19,000 | 18,600 |
Right-of-use assets obtained in exchange for operating lease liabilities | 30,900 | $ 28,600 | 33,300 |
ROCA ACERO, S.A. de C.V. | |||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 16,800 | ||
Zimmer, S.A. de C.V. | |||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 19,700 |
Leases (Schedule of Operating l
Leases (Schedule of Operating lease right-of-use assets and lease obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Right of use asset | $ 110,638 | $ 100,124 |
Right of use asset included in balance sheet | Other assets | Other assets |
Current lease liability | $ 18,850 | $ 17,822 |
Current lease liability included in balance sheet | Accrued expenses | Accrued expenses |
Non current lease liability | $ 91,793 | $ 82,252 |
Non current lease liability included in balance sheet | Other liabilities | Other liabilities |
Lease liability | $ 110,643 | $ 100,074 |
Leases (Future operating lease
Leases (Future operating lease liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Future operating lease liabilities | ||
2023 | $ 22,784 | |
2024 | 18,994 | |
2025 | 15,329 | |
2026 | 11,259 | |
2027 | 9,340 | |
Thereafter | 55,719 | |
Total undiscounted cash flows | 133,425 | |
Less imputed interest | (22,782) | |
Lease obligations under operating leases | $ 110,643 | $ 100,074 |
Segment Information - Results (
Segment Information - Results (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information | |||
Net sales | $ 22,260,774 | $ 18,408,850 | $ 9,601,482 |
Operating income (loss) | 5,091,822 | 4,301,105 | 847,142 |
Income (loss) before income taxes | 5,021,069 | 4,209,070 | 705,478 |
Depreciation and amortization | 384,202 | 347,653 | 325,789 |
Capital expenditures | 908,902 | 1,006,239 | 1,198,055 |
Assets | 14,159,984 | 12,531,234 | |
U.S. | |||
Segment Reporting Information | |||
Net sales | 20,851,771 | 17,290,933 | 9,089,194 |
Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 1,409,003 | 1,117,917 | 512,288 |
Operating Segment | Steel Operations | |||
Segment Reporting Information | |||
Net sales | 15,100,917 | 14,023,133 | 7,455,637 |
Operating income (loss) | 3,095,348 | 4,360,488 | 889,480 |
Income (loss) before income taxes | 3,057,560 | 4,327,300 | 833,035 |
Depreciation and amortization | 295,386 | 263,125 | 251,590 |
Capital expenditures | 611,154 | 937,011 | 1,132,298 |
Assets | 8,607,290 | 8,686,216 | |
Operating Segment | Steel Operations | Other segments | |||
Segment Reporting Information | |||
Net sales | 538,540 | 823,991 | 318,533 |
Operating Segment | Steel Operations | U.S. | |||
Segment Reporting Information | |||
Net sales | 13,801,448 | 12,618,917 | 6,873,209 |
Operating Segment | Steel Operations | Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 760,929 | 580,225 | 263,895 |
Operating Segment | Metals Recycling Operations | |||
Segment Reporting Information | |||
Net sales | 4,395,636 | 4,590,121 | 2,403,140 |
Operating income (loss) | 117,266 | 181,986 | 32,991 |
Income (loss) before income taxes | 117,803 | 181,579 | 27,753 |
Depreciation and amortization | 53,893 | 55,620 | 50,099 |
Capital expenditures | 68,074 | 46,360 | 32,875 |
Assets | 1,320,368 | 1,266,920 | |
Operating Segment | Metals Recycling Operations | Other segments | |||
Segment Reporting Information | |||
Net sales | 2,230,928 | 2,406,649 | 1,335,216 |
Operating Segment | Metals Recycling Operations | U.S. | |||
Segment Reporting Information | |||
Net sales | 1,545,347 | 1,658,843 | 820,262 |
Operating Segment | Metals Recycling Operations | Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 619,361 | 524,629 | 247,662 |
Operating Segment | Steel Fabrication Operations | |||
Segment Reporting Information | |||
Net sales | 4,257,207 | 1,764,710 | 906,364 |
Operating income (loss) | 2,424,655 | 365,250 | 120,575 |
Income (loss) before income taxes | 2,417,752 | 362,473 | 116,625 |
Depreciation and amortization | 9,727 | 9,961 | 10,819 |
Capital expenditures | 17,519 | 12,939 | 15,234 |
Assets | 1,349,138 | 1,195,396 | |
Operating Segment | Steel Fabrication Operations | Other segments | |||
Segment Reporting Information | |||
Net sales | 11,221 | 3,063 | 10,663 |
Operating Segment | Steel Fabrication Operations | U.S. | |||
Segment Reporting Information | |||
Net sales | 4,245,803 | 1,761,078 | 895,227 |
Operating Segment | Steel Fabrication Operations | Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 183 | 569 | 474 |
Operating Segment | Other | |||
Segment Reporting Information | |||
Net sales | 1,288,984 | 1,266,971 | 501,187 |
Operating income (loss) | (599,828) | (551,725) | (188,525) |
Income (loss) before income taxes | (625,037) | (606,021) | (263,470) |
Depreciation and amortization | 25,196 | 18,947 | 13,281 |
Capital expenditures | 212,155 | 9,929 | 17,648 |
Assets | 3,007,942 | 1,523,830 | |
Operating Segment | Other | Other segments | |||
Segment Reporting Information | |||
Net sales | 1,281 | 2,382 | 434 |
Operating Segment | Other | U.S. | |||
Segment Reporting Information | |||
Net sales | 1,259,173 | 1,252,095 | 500,496 |
Operating Segment | Other | Non-U.S. | |||
Segment Reporting Information | |||
Net sales | 28,530 | 12,494 | 257 |
Eliminations | |||
Segment Reporting Information | |||
Net sales | (2,781,970) | (3,236,085) | (1,664,846) |
Operating income (loss) | 54,381 | (54,894) | (7,379) |
Income (loss) before income taxes | 52,991 | (56,261) | (8,465) |
Assets | (124,754) | (141,128) | |
Eliminations | Other segments | |||
Segment Reporting Information | |||
Net sales | $ (2,781,970) | $ (3,236,085) | $ (1,664,846) |
Segment Information - Results F
Segment Information - Results Footnote (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating income (loss) | |||
Corporate SG & A | $ (545,621) | $ (643,976) | $ (477,450) |
Companywide equity-based compensation | (69,200) | (80,200) | (50,700) |
Company profit sharing component | (452,551) | (388,111) | (61,728) |
Asset impairment charges | (19,409) | ||
Operating income (loss) | 5,091,822 | 4,301,105 | 847,142 |
Gross profit decrease from intra-company sales | 6,117,831 | 5,362,424 | 1,434,728 |
Assets | |||
Cash and equivalents | 1,628,417 | 1,243,868 | |
Short-term investments | 628,215 | ||
Inventories | 3,129,964 | 3,531,130 | |
Property, plant and equipment, net | 5,373,665 | 4,751,430 | |
Other | 378,727 | 129,601 | |
Total assets | 14,159,984 | 12,531,234 | |
Operating Segment | Other | |||
Operating income (loss) | |||
Corporate SG & A | (77,800) | (78,000) | (57,900) |
Companywide equity-based compensation | (67,300) | (78,800) | (48,500) |
Company profit sharing component | (444,400) | (379,300) | (58,300) |
Asset impairment charges | (19,400) | ||
Other, net | (10,300) | (15,600) | (4,400) |
Operating income (loss) | (599,828) | (551,725) | (188,525) |
Assets | |||
Cash and equivalents | 1,463,200 | 1,088,800 | |
Short-term investments | 628,200 | ||
Accounts receivable | 33,300 | 27,500 | |
Inventories | 90,400 | 94,200 | |
Property, plant and equipment, net | 375,600 | 128,900 | |
Intra-company debt | 46,900 | 19,600 | |
Investments in unconsolidated affiliates | 226,600 | ||
Other | 143,700 | 164,800 | |
Total assets | 3,007,942 | 1,523,830 | |
Operating Segment | Metals Recycling Operations | |||
Operating income (loss) | |||
Operating income (loss) | 117,266 | 181,986 | 32,991 |
Assets | |||
Total assets | 1,320,368 | 1,266,920 | |
Eliminations | |||
Operating income (loss) | |||
Operating income (loss) | 54,381 | (54,894) | (7,379) |
Gross profit decrease from intra-company sales | 53,000 | (56,300) | $ (8,500) |
Assets | |||
Inventories | (19,700) | (72,600) | |
Accounts receivable | (58,200) | (48,900) | |
Intra-company debt | (46,900) | (19,600) | |
Total assets | $ (124,754) | $ (141,128) |