Condensed Consolidating Information (Tables)

6 Months Ended

Jun. 30, 2011

Condensed Consolidating Information

Schedule of Condensed Consolidating Balance Sheets

						Combined			Consolidating			Total
As of June 30, 2011	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Cash and equivalents	$	264,121		$	9,170	$	4,400		$	—		$	277,691
Accounts receivable, net	355,583			781,506		13,116			(300,804		)	849,401
Inventories	604,523			523,362		73,151			(5,842		)	1,195,194
Other current assets	74,566			7,979		2,352			(33,324		)	51,573
Total current assets	1,298,793			1,322,017		93,019			(339,970		)	2,373,859
Property, plant and equiment, net	1,081,980			668,009		429,255			(2,930		)	2,176,314
Intangible assets, net	—			469,719		—			—			469,719
Goodwill	—			748,383		—			—			748,383
Other assets, including investments in subs	2,809,475			36,405		8,095			(2,721,797		)	132,178
Total assets	$	5,190,248		$	3,244,533	$	530,369		$	(3,064,697	)	$	5,900,453
Accounts payable	$	147,054		$	313,747	$	32,369		$	(37,311	)	$	455,859
Accrued expenses	136,489			91,125		8,966			(23,145		)	213,435
Current maturities of long-term debt	432			300		36,002			(35,182		)	1,552
Total current liabilities	283,975			405,172		77,337			(95,638		)	670,846
Long-term debt	2,344,178			—		187,123			(153,508		)	2,377,793
Other liabilities	286,196			2,179,199		29,228			(1,954,297		)	540,326
Redeemable noncontrolling interest	—			—		54,294			—			54,294
Common stock	636			33,896		16,121			(50,017		)	636
Treasury stock	(725,849		)	—		—			—			(725,849		)
Additional paid-in-capital	1,019,061			117,737		262,452			(380,189		)	1,019,061
Retained earnings	1,982,051			508,529		(77,481		)	(431,048		)	1,982,051
Total Steel Dynamics, Inc. equity	2,275,899			660,162		201,092			(861,254		)	2,275,899
Noncontrolling interests	—			—		(18,705		)	—			(18,705		)
Total equity	2,275,899			660,162		182,387			(861,254		)	2,257,194
Total liabilities and equity	$	5,190,248		$	3,244,533	$	530,369		$	(3,064,697	)	$	5,900,453

Condensed Consolidating Balance Sheets (in thousands)

						Combined			Consolidating			Total
As of December 31, 2010	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Cash and equivalents	$	173,563		$	10,628	$	2,322		$	—		$	186,513
Accounts receivable, net	283,883			614,412		7,282			(283,388		)	622,189
Inventories	548,726			487,298		84,183			(6,144		)	1,114,063
Other current assets	96,040			9,757		3,444			(32,003		)	77,238
Total current assets	1,102,212			1,122,095		97,231			(321,535		)	2,000,003
Property, plant and equiment, net	1,110,350			684,118		421,897			(3,032		)	2,213,333
Intangible assets, net	—			489,240		—			—			489,240
Goodwill	—			751,675		—			—			751,675
Other assets, including investments in subs	2,788,097			36,617		7,601			(2,696,632		)	135,683
Total assets	$	5,000,659		$	3,083,745	$	526,729		$	(3,021,199	)	$	5,589,934
Accounts payable	$	127,246		$	227,823	$	26,015		$	(32,483	)	$	348,601
Accrued expenses	123,498			102,114		8,497			(30,317		)	203,792
Current maturities of long-term debt	7,554			325		34,604			(33,559		)	8,924
Total current liabilities	258,298			330,262		69,116			(96,359		)	561,317
Long-term debt	2,344,399			—		168,278			(134,780		)	2,377,897
Other liabilities	305,092			2,158,725		27,072			(1,971,298		)	519,591
Redeemable noncontrolling interest	—			—		54,294			—			54,294
Common stock	633			33,901		16,121			(50,022		)	633
Treasury stock	(727,624		)	—		—			—			(727,624		)
Additional paid-in-capital	998,728			117,737		256,905			(374,642		)	998,728
Retained earnings	1,821,133			443,120		(49,022		)	(394,098		)	1,821,133
Total Steel Dynamics, Inc. equity	2,092,870			594,758		224,004			(818,762		)	2,092,870
Noncontrolling interests	—			—		(16,035		)	—			(16,035		)
Total equity	2,092,870			594,758		207,969			(818,762		)	2,076,835
Total liabilities and equity	$	5,000,659		$	3,083,745	$	526,729		$	(3,021,199	)	$	5,589,934

Schedule of Condensed Consolidating Statement of Operations

For the three months ended,							Combined			Consolidating			Total
June 30, 2011	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	952,487		$	2,344,958		$	50,943		$	(1,268,657	)	$	2,079,731
Costs of goods sold	754,436			2,239,226			66,156			(1,256,473		)	1,803,345
Gross profit (loss)	198,051			105,732			(15,213		)	(12,184		)	276,386
Selling, general and administrative	35,528			54,094			1,948			(3,403		)	88,167
Operating income (loss)	162,523			51,638			(17,161		)	(8,781		)	188,219
Interest expense, net of capitalized interest	26,125			18,264			2,413			(1,990		)	44,812
Other (income) expense, net	(3,704		)	(3,089		)	(968		)	2,016			(5,745		)
Income (loss) before income taxes and equity in net income of subsidiaries	140,102			36,463			(18,606		)	(8,807		)	149,152
Income taxes (benefit)	42,811			13,768			(56		)	(3,197		)	53,326
	97,291			22,695			(18,550		)	(5,610		)	95,826
Equity in net income of subsidiaries	1,419			—			—			(1,419		)	—
Net loss attributable to noncontrolling interests	—			—			2,884			—			2,884
Net income (loss) attributable to Steel Dynamics, Inc.	$	98,710		$	22,695		$	(15,666	)	$	(7,029	)	$	98,710

For the three months ended,							Combined			Consolidating			Total
June 30, 2010	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	726,120		$	1,831,842		$	35,359		$	(960,522	)	$	1,632,799
Costs of goods sold	607,268			1,740,778			44,291			(951,522		)	1,440,815
Gross profit (loss)	118,852			91,064			(8,932		)	(9,000		)	191,984
Selling, general and administrative	24,490			50,479			2,247			(1,867		)	75,349
Operating income (loss)	94,362			40,585			(11,179		)	(7,133		)	116,635
Interest expense, net of capitalized interest	25,038			17,677			3,424			(2,691		)	43,448
Other (income) expense, net	(4,482		)	(2,057		)	248			2,770			(3,521		)
Income (loss) before income taxes and equity in net income of subsidiaries	73,806			24,965			(14,851		)	(7,212		)	76,708
Income taxes (benefit)	27,866			9,465			(5,552		)	(1,868		)	29,911
	45,940			15,500			(9,299		)	(5,344		)	46,797
Equity in net income of subsidiaries	3,267			—			—			(3,267		)	—
Net loss attributable to noncontrolling interests	—			—			2,410			—			2,410
Net income (loss) attributable to Steel Dynamics, Inc.	$	49,207		$	15,500		$	(6,889	)	$	(8,611	)	$	49,207

Condensed Consolidating Statements of Operations (in thousands)

For the six months ended,							Combined			Consolidating			Total
June 30, 2011	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	1,865,304		$	4,646,505		$	98,465		$	(2,514,574	)	$	4,095,700
Costs of goods sold	1,483,977			4,404,604			123,751			(2,488,772		)	3,523,560
Gross profit (loss)	381,327			241,901			(25,286		)	(25,802		)	572,140
Selling, general and administrative	72,192			109,987			4,070			(7,654		)	178,595
Operating income (loss)	309,135			131,914			(29,356		)	(18,148		)	393,545
Interest expense, net of capitalized interest	51,821			35,526			4,727			(3,916		)	88,158
Other (income) expense, net	(6,883		)	(5,764		)	(1,686		)	4,021			(10,312		)
Income (loss) before income taxes and equity in net income of subsidiaries	264,197			102,152			(32,397		)	(18,253		)	315,699
Income taxes (benefit)	83,740			38,672			(13		)	(6,756		)	115,643
	180,457			63,480			(32,384		)	(11,497		)	200,056
Equity in net income of subsidiaries	24,156			—			—			(24,156		)	—
Net loss attributable to noncontrolling interests	—			—			4,557			—			4,557
Net income (loss) attributable to Steel Dynamics, Inc.	$	204,613		$	63,480		$	(27,827	)	$	(35,653	)	$	204,613

For the six months ended,							Combined			Consolidating			Total
June 30, 2010	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	1,453,153		$	3,564,273		$	66,769		$	(1,895,606	)	$	3,188,589
Costs of goods sold	1,215,250			3,363,533			83,747			(1,876,407		)	2,786,123
Gross profit (loss)	237,903			200,740			(16,978		)	(19,199		)	402,466
Selling, general and administrative	53,381			100,526			4,594			(4,967		)	153,534
Operating income (loss)	184,522			100,214			(21,572		)	(14,232		)	248,932
Interest expense, net of capitalized interest	46,885			32,858			5,535			(4,315		)	80,963
Other (income) expense, net	(7,266		)	(4,907		)	538			5,033			(6,602		)
Income (loss) before income taxes and equity in net income of subsidiaries	144,903			72,263			(27,645		)	(14,950		)	174,571
Income taxes (benefit)	51,852			27,038			(10,348		)	(4,157		)	64,385
	93,051			45,225			(17,297		)	(10,793		)	110,186
Equity in net income of subsidiaries	21,125			—			—			(21,125		)	—
Net loss attributable to noncontrolling interests	—			—			3,990			—			3,990
Net income (loss) attributable to Steel Dynamics, Inc.	$	114,176		$	45,225		$	(13,307	)	$	(31,918	)	$	114,176

Schedule of Condensed Consolidating Statements of Cash Flows

For the six months ended,							Combined			Consolidating			Total
June 30, 2011	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net cash provided by (used in) operating activities	$	158,937		$	34,056		$	(14,392	)	$	(8,667	)	$	169,934
Net cash used in investing activities	(14,734		)	(25,017		)	(12,919		)	—			(52,670		)
Net cash provided by (used in) financing activities	(53,645		)	(10,497		)	29,389			8,667			(26,086		)
Increase (decrease) in cash and equivalents	90,558			(1,458		)	2,078			—			91,178
Cash and equivalents at beginning of period	173,563			10,628			2,322			—			186,513
Cash and equivalents at end of period	$	264,121		$	9,170		$	4,400		$	—		$	277,691

For the six months ended,							Combined			Consolidating			Total
June 30, 2010	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net cash provided by (used in) operating activities	$	168,393		$	(17,285	)	$	(58,376	)	$	(639	)	$	92,093
Net cash used in investing activities	(103,052		)	(16,823		)	(31,884		)	81,596			(70,163		)
Net cash provided by financing activities	115,060			33,134			93,418			(80,957		)	160,655
Increase (decrease) in cash and equivalents	180,401			(974		)	3,158			—			182,585
Cash and equivalents at beginning of period	430			6,363			2,215			—			9,008
Cash and equivalents at end of period	$	180,831		$	5,389		$	5,373		$	—		$	191,593