Condensed Consolidating Information (Tables)

9 Months Ended

Sep. 30, 2012

Condensed Consolidating Information

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets (in thousands)

						Combined			Consolidating			Total
As of September 30, 2012	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Cash and equivalents	$	242,963		$	26,990	$	17,167		$	—		$	287,120
Accounts receivable, net	275,227			832,486		11,238			(406,201		)	712,750
Inventories	607,567			499,059		109,038			(6,585		)	1,209,079
Other current assets	57,564			13,384		3,778			(21,451		)	53,275
Total current assets	1,183,321			1,371,919		141,221			(434,237		)	2,262,224
Property, plant and equiment, net	1,020,336			654,436		541,605			(2,674		)	2,213,703
Intangible assets, net	—			425,034		—			—			425,034
Goodwill	—			740,192		—			—			740,192
Other assets, including investments in subs	2,768,937			31,405		9,383			(2,675,362		)	134,363
Total assets	$	4,972,594		$	3,222,986	$	692,209		$	(3,112,273	)	$	5,775,516
Accounts payable	$	125,105		$	245,287	$	75,072		$	(68,251	)	$	377,213
Other current liabilities	120,827			102,065		10,418			(35,238		)	198,072
Current maturities of long-term debt	14,227			300		34,313			(18,726		)	30,114
Total current liabilities	260,159			347,652		119,803			(122,215		)	605,399
Long-term debt	2,144,521			—		173,260			(143,856		)	2,173,925
Other long-term liabilities	204,889			2,104,391		38,512			(1,784,428		)	563,364
Redeemable noncontrolling interest	—			—		93,774			—			93,774
Common stock	636			33,896		18,121			(52,017		)	636
Treasury stock	(720,479		)	—		—			—			(720,479		)
Additional paid-in-capital	1,033,857			117,737		453,287			(571,024		)	1,033,857
Retained earnings (deficit)	2,049,011			619,310		(180,577		)	(438,733		)	2,049,011
Total Steel Dynamics, Inc. equity	2,363,025			770,943		290,831			(1,061,774		)	2,363,025
Noncontrolling interests	—			—		(23,971		)	—			(23,971		)
Total equity	2,363,025			770,943		266,860			(1,061,774		)	2,339,054
Total liabilities and equity	$	4,972,594		$	3,222,986	$	692,209		$	(3,112,273	)	$	5,775,516

						Combined			Consolidating			Total
As of December 31, 2011	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Cash and equivalents	$	301,073		$	58,699	$	30,989		$	—		$	390,761
Investments in short-term commercial paper	84,830			—		—			—			84,830
Accounts receivable, net	319,995			726,192		8,971			(332,367		)	722,791
Inventories	584,079			533,022		85,046			(2,563		)	1,199,584
Other current assets	83,116			4,119		2,304			(32,247		)	57,292
Total current assets	1,373,093			1,322,032		127,310			(367,177		)	2,455,258
Property, plant and equiment, net	1,059,011			660,048		477,514			(2,828		)	2,193,745
Intangible assets, net	—			450,893		—			—			450,893
Goodwill	—			745,066		—			—			745,066
Other assets, including investments in subs	2,791,718			33,507		9,853			(2,700,814		)	134,264
Total assets	$	5,223,822		$	3,211,546	$	614,677		$	(3,070,819	)	$	5,979,226
Accounts payable	$	155,220		$	273,049	$	23,195		$	(30,640	)	$	420,824
Other current liabilities	157,868			98,498		10,012			(30,863		)	235,515
Current maturities of long-term debt	439,199			300		53,551			(48,972		)	444,078
Total current liabilities	752,287			371,847		86,758			(110,475		)	1,100,417
Long-term debt	1,905,199			—		169,797			(138,974		)	1,936,022
Other long-term liabilities	250,395			2,132,778		51,625			(1,862,605		)	572,193
Redeemable noncontrolling interest	—			—		70,694			—			70,694
Common stock	636			33,896		18,121			(52,017		)	636
Treasury stock	(722,653		)	—		—			—			(722,653		)
Additional paid-in-capital	1,026,157			117,737		347,151			(464,888		)	1,026,157
Retained earnings (deficit)	2,011,801			555,288		(113,428		)	(441,860		)	2,011,801
Total Steel Dynamics, Inc. equity	2,315,941			706,921		251,844			(958,765		)	2,315,941
Noncontrolling interests	—			—		(16,041		)	—			(16,041		)
Total equity	2,315,941			706,921		235,803			(958,765		)	2,299,900
Total liabilities and equity	$	5,223,822		$	3,211,546	$	614,677		$	(3,070,819	)	$	5,979,226

Schedule of Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations (in thousands)

For the three months ended,						Combined			Consolidating			Total
September 30, 2012	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Net sales	$	785,168		$	1,918,774	$	48,167		$	(1,058,719	)	$	1,693,390
Costs of goods sold	685,074			1,823,447		69,520			(1,041,052		)	1,536,989
Gross profit (loss)	100,094			95,327		(21,353		)	(17,667		)	156,401
Selling, general and administrative	19,927			53,023		14,032			(3,302		)	83,680
Operating income (loss)	80,167			42,304		(35,385		)	(14,365		)	72,721
Interest expense, net of capitalized interest	27,153			13,997		1,619			(1,279		)	41,490
Other (income) expense, net	23,345			434		(1,046		)	1,277			24,010
Income (loss) before income taxes and equity in net income of subsidiaries	29,669			27,873		(35,958		)	(14,363		)	7,221
Income taxes (benefit)	(2,771		)	8,668		73			(4,854		)	1,116
	32,440			19,205		(36,031		)	(9,509		)	6,105
Equity in net loss of subsidiaries	(19,607		)	—		—			19,607			—
Net loss attributable to noncontrolling interests	—			—		6,728			—			6,728
Net income (loss) attributable to Steel Dynamics, Inc.	$	12,833		$	19,205	$	(29,303	)	$	10,098		$	12,833

For the three months ended,							Combined			Consolidating			Total
September 30, 2011	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	932,793		$	2,309,239		$	45,407		$	(1,243,984	)	$	2,043,455
Costs of goods sold	809,684			2,194,687			60,673			(1,220,832		)	1,844,212
Gross profit (loss)	123,109			114,552			(15,266		)	(23,152		)	199,243
Selling, general and administrative	37,678			53,755			2,475			(3,450		)	90,458
Operating income (loss)	85,431			60,797			(17,741		)	(19,702		)	108,785
Interest expense, net of capitalized interest	26,163			18,237			2,343			(2,041		)	44,702
Other (income) expense, net	(3,232		)	(1,895		)	(437		)	2,041			(3,523		)
Income (loss) before income taxes and equity in net income of subsidiaries	62,500			44,455			(19,647		)	(19,702		)	67,606
Income taxes (benefit)	19,524			16,023			(247		)	(7,551		)	27,749
	42,976			28,432			(19,400		)	(12,151		)	39,857
Equity in net income of subsidiaries	328			—			—			(328		)	—
Net loss attributable to noncontrolling interests	—			—			3,447			—			3,447
Net income (loss) attributable to Steel Dynamics, Inc.	$	43,304		$	28,432		$	(15,953	)	$	(12,479	)	$	43,304

For the nine months ended,							Combined			Consolidating			Total
September 30, 2012	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	2,625,152		$	6,408,166		$	131,024		$	(3,579,109	)	$	5,585,233
Costs of goods sold	2,275,227			6,106,504			189,477			(3,525,776		)	5,045,432
Gross profit (loss)	349,925			301,662			(58,453		)	(53,333		)	539,801
Selling, general and administrative	72,196			160,513			20,940			(10,084		)	243,565
Operating income (loss)	277,729			141,149			(79,393		)	(43,249		)	296,236
Interest expense, net of capitalized interest	81,583			41,208			5,068			(4,151		)	123,708
Other (income) expense, net	31,419			(436		)	(2,767		)	4,150			32,366
Income (loss) before income taxes and equity in net income of subsidiaries	164,727			100,377			(81,694		)	(43,248		)	140,162
Income taxes (benefit)	31,809			36,354			444			(15,632		)	52,975
	132,918			64,023			(82,138		)	(27,616		)	87,187
Equity in net loss of subsidiaries	(29,938		)	—			—			29,938			—
Net loss attributable to noncontrolling interests	—			—			15,793			—			15,793
Net income (loss) attributable to Steel Dynamics, Inc.	$	102,980		$	64,023		$	(66,345	)	$	2,322		$	102,980

For the nine months ended,							Combined			Consolidating			Total
September 30, 2011	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	2,798,097		$	6,955,744		$	143,872		$	(3,758,558	)	$	6,139,155
Costs of goods sold	2,293,661			6,599,291			184,424			(3,709,604		)	5,367,772
Gross profit (loss)	504,436			356,453			(40,552		)	(48,954		)	771,383
Selling, general and administrative	109,870			163,742			6,545			(11,104		)	269,053
Operating income (loss)	394,566			192,711			(47,097		)	(37,850		)	502,330
Interest expense, net of capitalized interest	77,984			53,763			7,070			(5,957		)	132,860
Other (income) expense, net	(10,115		)	(7,659		)	(2,123		)	6,062			(13,835		)
Income (loss) before income taxes and equity in net income of subsidiaries	326,697			146,607			(52,044		)	(37,955		)	383,305
Income taxes (benefit)	103,264			54,695			(260		)	(14,307		)	143,392
	223,433			91,912			(51,784		)	(23,648		)	239,913
Equity in net income of subsidiaries	24,484			—			—			(24,484		)	—
Net loss attributable to noncontrolling interests	—			—			8,004			—			8,004
Net income (loss) attributable to Steel Dynamics, Inc.	$	247,917		$	91,912		$	(43,780	)	$	(48,132	)	$	247,917

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows (in thousands)

For the nine months ended,							Combined			Consolidating			Total
September 30, 2012	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net cash provided by (used in) operating activities	$	145,121		$	128,705		$	(39,928	)	$	5,488		$	239,386
Net cash used in investing activities	(19,249		)	(74,342		)	(81,123		)	80,479			(94,235		)
Net cash provided by (used in) financing activities	(183,982		)	(86,072		)	107,229			(85,967		)	(248,792		)
Decrease in cash and equivalents	(58,110		)	(31,709		)	(13,822		)	—			(103,641		)
Cash and equivalents at beginning of period	301,073			58,699			30,989			—			390,761
Cash and equivalents at end of period	$	242,963		$	26,990		$	17,167		$	—		$	287,120

For the nine months ended,							Combined			Consolidating			Total
September 30, 2011	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net cash provided by (used in) operating activities	$	314,438		$	112,213		$	(34,211	)	$	(43	)	$	392,397
Net cash used in investing activities	(77,125		)	(40,015		)	(27,597		)	54,888			(89,849		)
Net cash provided by (used in) financing activities	(22,680		)	(23,309		)	68,467			(54,845		)	(32,367		)
Increase in cash and equivalents	214,633			48,889			6,659			—			270,181
Cash and equivalents at beginning of period	173,563			10,628			2,322			—			186,513
Cash and equivalents at end of period	$	388,196		$	59,517		$	8,981		$	—		$	456,694