Condensed Consolidating Information (Tables)

6 Months Ended

Jun. 30, 2014

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets (in thousands)

						Combined			Consolidating			Total
As of June 30, 2014	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Cash and equivalents	$	297,225		$	50,461	$	9,804		$	—		$	357,490
Accounts receivable, net	367,627			1,077,153		49,880			(583,864		)	910,796
Inventories	684,841			543,977		97,561			(5,508		)	1,320,871
Other current assets	47,442			7,719		4,310			(18,442		)	41,029
Total current assets	1,397,135			1,679,310		161,555			(607,814		)	2,630,186
Property, plant and equipment, net	1,033,622			584,587		561,115			(2,317		)	2,177,007
Intangible assets, net	—			372,819		—			—			372,819
Goodwill	—			728,751		—			—			728,751
Other assets, including investments in subs	2,615,185			21,781		7,109			(2,567,636		)	76,439
Total assets	$	5,045,942		$	3,387,248	$	729,779		$	(3,177,767	)	$	5,985,202

Accounts payable	$	168,091		$	284,773	$	94,049		$	(106,222	)	$	440,691
Accrued expenses	142,351			117,303		10,089			(58,972		)	210,771
Current maturities of long-term debt	34,925			300		66,474			(39,938		)	61,761
Total current liabilities	345,367			402,376		170,612			(205,132		)	713,223
Long-term debt	1,704,528			—		184,554			(146,954		)	1,742,128
Other liabilities	98,150			2,022,395		35,504			(1,585,408		)	570,641

Redeemable noncontrolling interests	—			—		124,180			—			124,180

Common stock	647			33,896		18,121			(52,017		)	647
Treasury stock	(398,818		)	—		—			—			(398,818		)
Additional paid-in-capital	1,058,921			117,737		585,348			(703,085		)	1,058,921
Retained earnings (deficit)	2,237,147			810,844		(325,673		)	(485,171		)	2,237,147
Total Steel Dynamics, Inc. equity	2,897,897			962,477		277,796			(1,240,273		)	2,897,897
Noncontrolling interests	—			—		(62,867		)	—			(62,867		)
Total equity	2,897,897			962,477		214,929			(1,240,273		)	2,835,030
Total liabilities and equity	$	5,045,942		$	3,387,248	$	729,779		$	(3,177,767	)	$	5,985,202

						Combined			Consolidating			Total
As of December 31, 2013	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Cash and equivalents	$	320,866		$	61,148	$	13,142		$	—		$	395,156
Accounts receivable, net	309,691			874,707		32,018			(495,816		)	720,600
Inventories	673,763			557,640		91,199			(7,855		)	1,314,747
Other current assets	50,228			8,399		3,259			(18,755		)	43,131
Total current assets	1,354,548			1,501,894		139,618			(522,426		)	2,473,634
Property, plant and equipment, net	1,046,093			619,617		562,843			(2,419		)	2,226,134
Intangible assets, net	—			386,159		—			—			386,159
Goodwill	—			731,996		—			—			731,996
Other assets, including investments in subs	2,630,411			21,789		8,092			(2,545,209		)	115,083
Total assets	$	5,031,052		$	3,261,455	$	710,553		$	(3,070,054	)	$	5,933,006

Accounts payable	$	160,255		$	258,406	$	60,987		$	(64,716	)	$	414,932
Accrued expenses	142,055			115,182		10,694			(49,229		)	218,702
Current maturities of long-term debt	315,521			300		52,163			(26,440		)	341,544
Total current liabilities	617,831			373,888		123,844			(140,385		)	975,178
Long-term debt	1,725,433			—		204,385			(163,773		)	1,766,045
Other liabilities	140,465			1,986,260		34,895			(1,582,206		)	579,414

Redeemable noncontrolling interest	—			—		116,514			—			116,514

Common stock	645			33,896		18,121			(52,017		)	645
Treasury stock	(718,529		)	—		—			—			(718,529		)
Additional paid-in-capital	1,085,694			117,737		552,946			(670,683		)	1,085,694
Retained earnings (deficit)	2,179,513			749,674		(288,684		)	(460,990		)	2,179,513
Total Steel Dynamics, Inc. equity	2,547,323			901,307		282,383			(1,183,690		)	2,547,323
Noncontrolling interests	—			—		(51,468		)	—			(51,468		)
Total equity	2,547,323			901,307		230,915			(1,183,690		)	2,495,855
Total liabilities and equity	$	5,031,052		$	3,261,455	$	710,553		$	(3,070,054	)	$	5,933,006

Schedule of Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations (in thousands)

For the three months ended,							Combined			Consolidating			Total
June 30, 2014	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	1,007,569		$	2,313,459		$	121,239		$	(1,372,506	)	$	2,069,761
Costs of goods sold	860,024			2,183,181			141,362			(1,337,577		)	1,846,990
Gross profit (loss)	147,545			130,278			(20,123		)	(34,929		)	222,771
Selling, general and administrative	35,419			56,411			3,406			(4,370		)	90,866
Operating income (loss)	112,126			73,867			(23,529		)	(30,559		)	131,905
Interest expense, net of capitalized interest	19,031			10,294			1,986			(1,261		)	30,050
Other (income) expense, net	(1,556		)	(46		)	(1,412		)	1,260			(1,754		)
Income (loss) before income taxes and equity in net income of subsidiaries	94,651			63,619			(24,103		)	(30,558		)	103,609
Income taxes (benefit)	23,950			23,076			814			(10,572		)	37,268
	70,701			40,543			(24,917		)	(19,986		)	66,341
Equity in net loss of subsidiaries	1,602			—			—			(1,602		)	—
Net loss attributable to noncontrolling interests	—			—			5,962			—			5,962
Net income (loss) attributable to Steel Dynamics, Inc.	$	72,303		$	40,543		$	(18,955	)	$	(21,588	)	$	72,303

For the three months ended,						Combined			Consolidating			Total
June 30, 2013	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Net sales	$	836,805		$	1,998,513	$	88,039		$	(1,122,017	)	$	1,801,340
Costs of goods sold	753,761			1,900,497		107,814			(1,108,424		)	1,653,648
Gross profit (loss)	83,044			98,016		(19,775		)	(13,593		)	147,692
Selling, general and administrative	24,916			54,764		2,673			(3,859		)	78,494
Operating income (loss)	58,128			43,252		(22,448		)	(9,734		)	69,198
Interest expense, net of capitalized interest	20,148			10,751		1,789			(1,223		)	31,465
Other (income) expense, net	(1,533		)	214		(1,149		)	1,222			(1,246		)
Income (loss) before income taxes and equity in net loss of subsidiaries	39,513			32,287		(23,088		)	(9,733		)	38,979
Income taxes (benefit)	5,621			12,214		1,382			(3,511		)	15,706
	33,892			20,073		(24,470		)	(6,222		)	23,273
Equity in net loss of subsidiaries	(4,934		)	—		—			4,934			—
Net loss attributable to noncontrolling interests	—			—		5,685			—			5,685
Net income (loss) attributable to Steel Dynamics, Inc.	$	28,958		$	20,073	$	(18,785	)	$	(1,288	)	$	28,958

For the six months ended,						Combined			Consolidating			Total
June 30, 2014	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Net sales	$	1,871,132		$	4,425,848	$	227,088		$	(2,624,225	)	$	3,899,843
Costs of goods sold	1,621,419			4,198,757		264,935			(2,571,343		)	3,513,768
Gross profit (loss)	249,713			227,091		(37,847		)	(52,882		)	386,075
Selling, general and administrative	64,253			110,700		6,814			(8,529		)	173,238
Operating income (loss)	185,460			116,391		(44,661		)	(44,353		)	212,837
Interest expense, net of capitalized interest	38,392			20,855		3,866			(2,494		)	60,619
Other (income) expense, net	(2,532		)	349		(2,696		)	2,494			(2,385		)
Income (loss) before income taxes and equity in net loss of subsidiaries	149,600			95,187		(45,831		)	(44,353		)	154,603
Income taxes (benefit)	33,875			34,018		1,510			(14,839		)	54,564
	115,725			61,169		(47,341		)	(29,514		)	100,039
Equity in net loss of subsidiaries	(4,843		)	—		—			4,843			—
Net loss attributable to noncontrolling interests	—			—		10,843			—			10,843
Net income (loss) attributable to Steel Dynamics, Inc.	$	110,882		$	61,169	$	(36,498	)	$	(24,671	)	$	110,882

For the six months ended,						Combined			Consolidating			Total
June 30, 2013	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Net sales	$	1,664,006		$	4,014,000	$	154,409		$	(2,235,379	)	$	3,597,036
Costs of goods sold	1,460,148			3,814,555		203,755			(2,205,378		)	3,273,080
Gross profit (loss)	203,858			199,445		(49,346		)	(30,001		)	323,956
Selling, general and administrative	53,602			108,756		4,811			(8,643		)	158,526
Operating income (loss)	150,256			90,689		(54,157		)	(21,358		)	165,430
Interest expense, net of capitalized interest	42,194			22,790		3,490			(2,380		)	66,094
Other (income) expense, net	(2,353		)	14		(2,332		)	2,379			(2,292		)
Income (loss) before income taxes and equity in net loss of subsidiaries	110,415			67,885		(55,315		)	(21,357		)	101,628
Income taxes (benefit)	17,015			25,133		2,081			(7,126		)	37,103
	93,400			42,752		(57,396		)	(14,231		)	64,525
Equity in net loss of subsidiaries	(16,227		)	—		—			16,227			—
Net loss attributable to noncontrolling interests	—			—		12,648			—			12,648
Net income (loss) attributable to Steel Dynamics, Inc.	$	77,173		$	42,752	$	(44,748	)	$	1,996		$	77,173

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows (in thousands)

For the six months ended,							Combined			Consolidating			Total
June 30, 2014	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated

Net cash provided by (used in) operating activities	$	94,219		$	(19,938	)	$	(23,559	)	$	(1,955	)	$	48,767
Net cash used in investing activities	(34,747		)	(10,007		)	(13,076		)	30,653			(27,177		)
Net cash provided by (used in) financing activities	(83,113		)	19,258			33,297			(28,698		)	(59,256		)
Decrease in cash and equivalents	(23,641		)	(10,687		)	(3,338		)	—			(37,666		)
Cash and equivalents at beginning of period	320,866			61,148			13,142			—			395,156
Cash and equivalents at end of period	$	297,225		$	50,461		$	9,804		$	—		$	357,490

For the six months ended,							Combined			Consolidating			Total
June 30, 2013	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated
Net cash provided by (used in) operating activities	$	(6,011	)	$	98,049		$	(39,730	)	$	10,117		$	62,425
Net cash used in investing activities	(62,083		)	(24,118		)	(9,484		)	35,900			(59,785		)
Net cash provided by (used in) financing activities	(40,896		)	(100,880		)	52,989			(46,017		)	(134,804		)
Increase (decrease) in cash and equivalents	(108,990		)	(26,949		)	3,775			—			(132,164		)
Cash and equivalents at beginning of period	322,707			41,675			11,535			—			375,917
Cash and equivalents at end of period	$	213,717		$	14,726		$	15,310		$	—		$	243,753