Note 11. Condensed Consolidating Information

Certain 100%-owned subsidiaries of SDI have fully and unconditionally guaranteed all of the indebtedness relating to the issuance of the company’s senior unsecured notes due 2019, 2021, 2022, 2023 and 2024. Following are the company’s condensed consolidating financial statements, including the guarantors, which present the financial position, results of operations, and cash flows of (i) SDI (in each case, reflecting investments in its consolidated subsidiaries under the equity method of accounting), (ii) the guarantor subsidiaries of SDI, which includes Columbus since acquired on September 16, 2014, (iii) the non-guarantor subsidiaries of SDI, and (iv) the eliminations necessary to arrive at the information on a consolidated basis. The following statements should be read in conjunction with the accompanying consolidated financial statements and the company’s Annual Report on Form 10-K for the year ended December 31, 2014.

Condensed Consolidating Balance Sheets (in thousands)

						Combined			Consolidating			Total
As of March 31, 2015	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Cash and equivalents	$	130,541		$	17,058	$	13,383		$	—		$	160,982
Accounts receivable, net	258,508			1,129,116		24,017			(641,900		)	769,741
Inventories	611,529			759,470		82,347			(104		)	1,453,242
Other current assets	72,189			9,213		5,243			(18,385		)	68,260
Total current assets	1,072,767			1,914,857		124,990			(660,389		)	2,452,225
Property, plant and equipment, net	989,601			1,796,992		301,158			(2,164		)	3,085,587
Intangible assets, net	—			364,620		—			—			364,620
Goodwill	—			743,528		—			—			743,528
Other assets, including investments in subs	3,745,496			23,871		6,524			(3,686,013		)	89,878
Total assets	$	5,807,864		$	4,843,868	$	432,672		$	(4,348,566	)	$	6,735,838

Accounts payable	$	117,240		$	262,723	$	89,959		$	(92,960	)	$	376,962
Accrued expenses	133,295			149,157		7,649			(79,456		)	210,645
Current maturities of long-term debt	13,085			795		57,997			(41,150		)	30,727
Total current liabilities	263,620			412,675		155,605			(213,566		)	618,334
Long-term debt	2,589,085			224		167,621			(133,486		)	2,623,444
Other liabilities	37,082			1,655,611		31,706			(1,153,432		)	570,967

Redeemable noncontrolling interests	—			—		126,340			—			126,340

Common stock	635			1,727,860		18,121			(1,745,981		)	635
Treasury stock	(396,517		)	—		—			—			(396,517		)
Additional paid-in-capital	1,088,605			117,737		635,335			(753,072		)	1,088,605
Retained earnings (deficit)	2,225,354			929,761		(580,732		)	(349,029		)	2,225,354
Total Steel Dynamics, Inc. equity	2,918,077			2,775,358		72,724			(2,848,082		)	2,918,077
Noncontrolling interests	—			—		(121,324		)	—			(121,324		)
Total equity	2,918,077			2,775,358		(48,600		)	(2,848,082		)	2,796,753
Total liabilities and equity	$	5,807,864		$	4,843,868	$	432,672		$	(4,348,566	)	$	6,735,838

Condensed Consolidating Balance Sheets (in thousands)

						Combined			Consolidating			Total
As of December 31, 2014	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Cash and equivalents	$	265,313		$	81,690	$	14,360		$	—		$	361,363
Accounts receivable, net	321,493			1,176,849		44,696			(640,213		)	902,825
Inventories	662,970			862,796		94,916			(2,263		)	1,618,419
Other current assets	94,634			8,416		6,577			(18,469		)	91,158
Total current assets	1,344,410			2,129,751		160,549			(660,945		)	2,973,765
Property, plant and equipment, net	1,002,407			1,826,208		297,505			(2,214		)	3,123,906
Intangible assets, net	—			370,669		—			—			370,669
Goodwill	—			745,158		—			—			745,158
Other assets, including investments in subs	3,900,691			24,810		6,635			(3,834,607		)	97,529
Total assets	$	6,247,508		$	5,096,596	$	464,689		$	(4,497,766	)	$	7,311,027

Accounts payable	$	151,517		$	371,037	$	98,886		$	(110,384	)	$	511,056
Accrued expenses	191,433			166,101		11,695			(76,163		)	293,066
Current maturities of long-term debt	13,073			777		73,767			(41,157		)	46,460
Total current liabilities	356,023			537,915		184,348			(227,704		)	850,582
Long-term debt	2,942,360			624		158,665			(123,943		)	2,977,706
Other liabilities	36,110			1,807,989		28,719			(1,311,946		)	560,872

Redeemable noncontrolling interests	—			—		126,340			—			126,340

Common stock	635			1,727,859		18,121			(1,745,980		)	635
Treasury stock	(398,898		)	—		—			—			(398,898		)
Additional paid-in-capital	1,083,435			117,737		635,156			(752,893		)	1,083,435
Retained earnings (deficit)	2,227,843			904,472		(569,172		)	(335,300		)	2,227,843
Total Steel Dynamics, Inc. equity	2,913,015			2,750,068		84,105			(2,834,173		)	2,913,015
Noncontrolling interests	—			—		(117,488		)	—			(117,488		)
Total equity	2,913,015			2,750,068		(33,383		)	(2,834,173		)	2,795,527
Total liabilities and equity	$	6,247,508		$	5,096,596	$	464,689		$	(4,497,766	)	$	7,311,027

Condensed Consolidating Statements of Operations (in thousands)

For the three months ended,						Combined			Consolidating			Total
March 31, 2015	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Net sales	$	798,718		$	2,191,009	$	104,573		$	(1,046,865	)	$	2,047,435
Costs of goods sold	693,575			2,072,125		118,781			(1,024,088		)	1,860,393
Gross profit (loss)	105,143			118,884		(14,208		)	(22,777		)	187,042
Selling, general and administrative	30,743			58,033		3,365			(4,870		)	87,271
Operating income (loss)	74,400			60,851		(17,573		)	(17,907		)	99,771
Interest expense, net of capitalized interest	20,537			21,840		1,734			(1,024		)	43,087
Other (income) expense, net	15,652			688		(1,172		)	1,024			16,192
Income (loss) before income taxes and equity in net loss of subsidiaries	38,211			38,323		(18,135		)	(17,907		)	40,492
Income taxes (benefit)	6,941			13,034		(1,116		)	(5,321		)	13,538
	31,270			25,289		(17,019		)	(12,586		)	26,954
Equity in net loss of subsidiaries	(509		)	—		—			509			—
Net loss attributable to noncontrolling interests	—			—		3,807			—			3,807
Net income (loss) attributable to Steel Dynamics, Inc.	$	30,761		$	25,289	$	(13,212	)	$	(12,077	)	$	30,761

For the three months ended,						Combined			Consolidating			Total
March 31, 2014	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Net sales	$	863,563		$	2,112,389	$	105,849		$	(1,251,719	)	$	1,830,082
Costs of goods sold	761,395			2,015,576		123,573			(1,233,766		)	1,666,778
Gross profit (loss)	102,168			96,813		(17,724		)	(17,953		)	163,304
Selling, general and administrative	28,834			54,289		3,408			(4,159		)	82,372
Operating income (loss)	73,334			42,524		(21,132		)	(13,794		)	80,932
Interest expense, net of capitalized interest	19,361			10,561		1,880			(1,233		)	30,569
Other (income) expense, net	(976		)	395		(1,284		)	1,234			(631		)
Income (loss) before income taxes and equity in net income of subsidiaries	54,949			31,568		(21,728		)	(13,795		)	50,994
Income taxes (benefit)	9,925			10,942		696			(4,267		)	17,296
	45,024			20,626		(22,424		)	(9,528		)	33,698
Equity in net loss of subsidiaries	(6,445		)	—		—			6,445			—
Net loss attributable to noncontrolling interests	—			—		4,881			—			4,881
Net income (loss) attributable to Steel Dynamics, Inc.	$	38,579		$	20,626	$	(17,543	)	$	(3,083	)	$	38,579

Condensed Consolidating Statements of Cash Flows (in thousands)

For the three months ended,							Combined			Consolidating			Total
March 31, 2015	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated

Net cash provided by operating activities	$	102,678		$	114,451		$	9,456		$	8,122		$	234,707
Net cash used in investing activities	(18,547		)	(12,949		)	(9,727		)	9,535			(31,688		)
Net cash used in financing activities	(218,903		)	(166,134		)	(706		)	(17,657		)	(403,400		)
Decrease in cash and equivalents	(134,772		)	(64,632		)	(977		)	—			(200,381		)
Cash and equivalents at beginning of period	265,313			81,690			14,360			—			361,363
Cash and equivalents at end of period	$	130,541		$	17,058		$	13,383		$	—		$	160,982

For the three months ended,							Combined			Consolidating			Total
March 31, 2014	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated

Net cash provided by (used in) operating activities	$	9,027		$	(17,195	)	$	(14,149	)	$	(4,930	)	$	(27,247	)
Net cash provided by (used in) investing activities	(12,430		)	(3,997		)	(1,625		)	22,095			4,043
Net cash provided by (used in) financing activities	(36,087		)	8,115			16,104			(17,165		)	(29,033		)
Increase (decrease) in cash and equivalents	(39,490		)	(13,077		)	330			—			(52,237		)
Cash and equivalents at beginning of period	320,866			61,148			13,142			—			395,156
Cash and equivalents at end of period	$	281,376		$	48,071		$	13,472		$	—		$	342,919