Condensed Consolidating Information (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets (in thousands)

						Combined			Consolidating			Total
As of March 31, 2013	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Cash and equivalents	$	441,989		$	22,546	$	13,326		$	—		$	477,861
Investments in short-term commercial paper	—			—		—			—			—
Accounts receivable, net	290,332			874,233		25,813			(437,077		)	753,301
Inventories	604,370			482,512		88,668			(5,391		)	1,170,159
Other current assets	51,597			8,443		6,298			(18,718		)	47,620
Total current assets	1,388,288			1,387,734		134,105			(461,186		)	2,448,941
Property, plant and equiment, net	1,018,938			657,918		558,130			(2,573		)	2,232,413
Intangible assets, net	—			408,832		—			—			408,832
Goodwill	—			736,912		—			—			736,912
Other assets, including investments in subs	2,745,488			25,784		8,724			(2,650,520		)	129,476
Total assets	$	5,152,714		$	3,217,180	$	700,959		$	(3,114,279	)	$	5,956,574

Accounts payable	$	186,419		$	232,442	$	63,767		$	(71,996	)	$	410,632
Accrued expenses	104,882			91,586		10,179			(34,174		)	172,473
Current maturities of long-term debt	215,991			300		41,517			(26,226		)	231,582
Total current liabilities	507,292			324,328		115,463			(132,396		)	814,687
Long-term debt	2,033,955			—		198,695			(163,436		)	2,069,214
Other liabilities	172,334			2,067,830		49,376			(1,722,871		)	566,669

Redeemable noncontrolling interest	—			—		99,414			—			99,414

Common stock	639			33,896		18,121			(52,017		)	639
Treasury stock	(719,076		)	—		—			—			(719,076		)
Additional paid-in-capital	1,045,973			117,737		479,648			(597,385		)	1,045,973
Retained earnings (deficit)	2,111,597			673,389		(227,215		)	(446,174		)	2,111,597
Total Steel Dynamics, Inc. equity	2,439,133			825,022		270,554			(1,095,576		)	2,439,133
Noncontrolling interests	—			—		(32,543		)	—			(32,543		)
Total equity	2,439,133			825,022		238,011			(1,095,576		)	2,406,590
Total liabilities and equity	$	5,152,714		$	3,217,180	$	700,959		$	(3,114,279	)	$	5,956,574

						Combined			Consolidating			Total
As of December 31, 2012	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Cash and equivalents	$	322,707		$	41,675	$	11,535		$	—		$	375,917
Investments in short-term commercial paper	31,520			—		—			—			31,520
Accounts receivable, net	277,428			772,868		11,293			(419,226		)	642,363
Inventories	564,882			536,331		107,422			(6,128		)	1,202,507
Other current assets	51,268			7,253		4,006			(18,609		)	43,918
Total current assets	1,247,805			1,358,127		134,256			(443,963		)	2,296,225
Property, plant and equiment, net	1,017,587			664,332		551,903			(2,624		)	2,231,198
Intangible assets, net	—			416,635		—			—			416,635
Goodwill	—			738,542		—			—			738,542
Other assets, including investments in subs	2,768,360			30,862		9,189			(2,675,595		)	132,816
Total assets	$	5,033,752		$	3,208,498	$	695,348		$	(3,122,182	)	$	5,815,416

Accounts payable	$	150,191		$	219,415	$	56,472		$	(65,981	)	$	360,097
Accrued expenses	144,719			98,484		9,877			(33,131		)	219,949
Current maturities of long-term debt	14,237			300		52,595			(37,501		)	29,631
Total current liabilities	309,147			318,199		118,944			(136,613		)	609,677
Long-term debt	2,140,958			—		169,223			(137,575		)	2,172,606
Other liabilities	178,182			2,087,957		41,581			(1,751,243		)	556,477

Redeemable noncontrolling interest	—			—		98,814			—			98,814

Common stock	637			33,896		18,121			(52,017		)	637
Treasury stock	(720,479		)	—		—			—			(720,479		)
Additional paid-in-capital	1,037,687			117,737		476,677			(594,414		)	1,037,687
Retained earnings (deficit)	2,087,620			650,709		(200,389		)	(450,320		)	2,087,620
Total Steel Dynamics, Inc. equity	2,405,465			802,342		294,409			(1,096,751		)	2,405,465
Noncontrolling interests	—			—		(27,623		)	—			(27,623		)
Total equity	2,405,465			802,342		266,786			(1,096,751		)	2,377,842
Total liabilities and equity	$	5,033,752		$	3,208,498	$	695,348		$	(3,122,182	)	$	5,815,416

Schedule of Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations (in thousands)

For the Three Months Ended,							Combined			Consolidating			Total
March 31, 2013	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	827,201		$	2,015,487		$	66,370		$	(1,113,362	)	$	1,795,696
Costs of goods sold	706,387			1,914,058			95,941			(1,096,954		)	1,619,432
Gross profit (loss)	120,814			101,429			(29,571		)	(16,408		)	176,264
Selling, general and administrative	28,686			53,992			2,138			(4,784		)	80,032
Operating income (loss)	92,128			47,437			(31,709		)	(11,624		)	96,232
Interest expense, net of capitalized interest	22,046			12,039			1,701			(1,157		)	34,629
Other (income) expense, net	(820		)	(200		)	(1,183		)	1,157			(1,046		)
Income (loss) before income taxes and equity in net income of subsidiaries	70,902			35,598			(32,227		)	(11,624		)	62,649
Income taxes	11,394			12,919			699			(3,615		)	21,397
	59,508			22,679			(32,926		)	(8,009		)	41,252
Equity in net loss of subsidiaries	(11,293		)	—			—			11,293			—
Net loss attributable to noncontrolling interests	—			—			6,963			—			6,963
Net income (loss) attributable to Steel Dynamics, Inc.	$	48,215		$	22,679		$	(25,963	)	$	3,284		$	48,215

For the Three Months Ended, March 31, 2012	Parent			Guarantors			Combined Non-Guarantors			Consolidating Adjustments			Total Consolidated
Net sales	$	913,193		$	2,308,156		$	46,835		$	(1,286,144	)	$	1,982,040
Costs of goods sold	785,567			2,198,898			63,894			(1,267,583		)	1,780,776
Gross profit (loss)	127,626			109,258			(17,059		)	(18,561		)	201,264
Selling, general and administrative	27,566			54,555			2,459			(3,132		)	81,448
Operating income (loss)	100,060			54,703			(19,518		)	(15,429		)	119,816
Interest expense, net of capitalized interest	27,217			13,606			1,710			(1,421		)	41,112
Other (income) expense, net	10,769			(1,064		)	(877		)	1,420			10,248
Income (loss) before income taxes and equity in net income of subsidiaries	62,074			42,161			(20,351		)	(15,428		)	68,456
Income taxes (benefit)	15,870			16,134			353			(5,678		)	26,679
	46,204			26,027			(20,704		)	(9,750		)	41,777
Equity in net loss of subsidiaries	(4,427		)	—			—			4,427			—
Net loss attributable to noncontrolling interests	—			—			3,898			—			3,898
Net income (loss) attributable to Steel Dynamics, Inc.	$	41,777		$	26,027		$	(16,806	)	$	(5,323	)	$	45,675

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows (in thousands)

For the Three Months Ended,							Combined			Consolidating			Total
March 31, 2013	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net cash provided by (used in) operating activities	$	29,373		$	14,903		$	(17,530	)	$	2,964		$	29,710
Net cash used in investing activities	(8,837		)	(11,985		)	(6,805		)	16,215			(11,412		)
Financing activities
Issuance of long term debt	400,425			—			23,980			(15,144		)	409,261
Repayments of long term debt	(304,471		)	(1,203		)	(9,836		)	9,819			(305,691		)
Other	2,792			(20,844		)	11,982			(13,854		)	(19,924		)
Net cash provided by (used in) financing activities	98,746			(22,047		)	26,126			(19,179		)	83,646
Increase (decrease) in cash and equivalents	119,282			(19,129		)	1,791			—			101,944
Cash and equivalents at beginning of period	322,707			41,675			11,535			—			375,917
Cash and equivalents at end of period	$	441,989		$	22,546		$	13,326		$	—		$	477,861

For the Three Months Ended,							Combined			Consolidating			Total
March 31, 2012	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net cash provided by (used in) operating activities	$	(31,015	)	$	58,900		$	(7,596	)	$	1,132		$	21,421
Net cash used in investing activities	(3,436		)	(40,889		)	(21,708		)	18,614			(47,419		)
Net cash provided by (used in) financing activities	7,330			(8,721		)	14,183			(19,746		)	(6,954		)
Increase (decrease) in cash and equivalents	(27,121		)	9,290			(15,121		)	—			(32,952		)
Cash and equivalents at beginning of period	301,073			58,699			30,989			—			390,761
Cash and equivalents at end of period	$	273,952		$	67,989		$	15,868		$	—		$	357,809