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 September 30, 2015	Parent			Guarantors		Non-Guarantors			Adjustments			Consolidated
Cash and equivalents	$	410,170		$	52,752	$	10,868		$	—		$	473,790
Accounts receivable, net	235,529			1,199,733		40,496			(676,733		)	799,025
Inventories	613,697			673,646		36,150			(2,096		)	1,321,397
Other current assets	61,961			11,830		1,150			(17,358		)	57,583

Total current assets	1,321,357			1,937,961		88,664			(696,187		)	2,651,795
Property, plant and equipment, net	966,388			1,754,945		294,388			(2,062		)	3,013,659
Intangible assets, net	—			353,561		—			—			353,561
Goodwill	—			740,243		—			—			740,243
Other assets, including investments in subs	3,570,277			22,075		6,454			(3,515,523		)	83,283

Total assets	$	5,858,022		$	4,808,785	$	389,506		$	(4,213,772	)	$	6,842,541


Accounts payable	$	122,112		$	273,957	$	79,370		$	(89,069	)	$	386,370
Accrued expenses	156,735			186,923		5,681			(89,435		)	259,904
Current maturities of long-term debt	13,109			700		57,253			(39,478		)	31,584

Total current liabilities	291,956			461,580		142,304			(217,982		)	677,858
Long-term debt	2,582,524			347		163,728			(130,780		)	2,615,819
Other liabilities	23,645			1,505,018		34,545			(970,129		)	593,079

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

Common stock	636			1,727,859		18,121			(1,745,980		)	636
Treasury stock	(396,473		)	—		—			—			(396,473		)
Additional paid-in-capital	1,104,833			117,737		650,858			(768,596		)	1,104,832
Retained earnings (deficit)	2,250,901			996,244		(615,939		)	(380,305		)	2,250,901

Total Steel Dynamics, Inc. equity	2,959,897			2,841,840		53,040			(2,894,881		)	2,959,896
Noncontrolling interests	—			—		(130,451		)	—			(130,451		)

Total equity	2,959,897			2,841,840		(77,411		)	(2,894,881		)	2,829,445

Total liabilities and equity	$	5,858,022		$	4,808,785	$	389,506		$	(4,213,772	)	$	6,842,541

						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
September 30, 2015	Parent		Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	735,250	$	2,103,824		$	96,204		$	(984,355	)	$	1,950,923
Costs of goods sold	619,833		1,965,364			99,864			(962,864		)	1,722,197

Gross profit (loss)	115,417		138,460			(3,660		)	(21,491		)	228,726
Selling, general and administrative	35,235		64,259			2,845			(4,642		)	97,697

Operating income (loss)	80,182		74,201			(6,505		)	(16,849		)	131,029
Interest expense, net of capitalized interest	18,312		18,138			1,692			(1,058		)	37,084
Other (income) expense, net	252		(631		)	(440		)	1,058			239

Income (loss) before income taxes and equity in net loss of subsidiaries	61,618		56,694			(7,757		)	(16,849		)	93,706
Income taxes (benefit)	20,169		21,697			(421		)	(6,606		)	34,839

	41,449		34,997			(7,336		)	(10,243		)	58,867
Equity in net loss of subsidiaries	19,168		—			—			(19,168		)	—
Net loss attributable to noncontrolling interests	—		—			1,750			—			1,750

Net income (loss) attributable to Steel Dynamics, Inc.	$	60,617	$	34,997		$	(5,586	)	$	(29,411	)	$	60,617

For the three months ended,						Combined			Consolidating			Total
September 30, 2014	Parent		Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	1,044,207	$	2,609,731		$	150,551		$	(1,465,473	)	$	2,339,016
Costs of goods sold	856,372		2,469,396			162,094			(1,437,358		)	2,050,504

Gross profit (loss)	187,835		140,335			(11,543		)	(28,115		)	288,512
Selling, general and administrative	40,932		59,878			3,601			(4,542		)	99,869

Operating income (loss)	146,903		80,457			(15,144		)	(23,573		)	188,643
Interest expense, net of capitalized interest	18,965		12,238			1,958			(1,257		)	31,904
Other (income) expense, net	22,548		(202		)	(1,530		)	1,256			22,072

Income (loss) before income taxes and equity in net income of subsidiaries	105,390		68,421			(15,572		)	(23,572		)	134,667
Income taxes (benefit)	30,605		24,754			(561		)	(7,788		)	47,010

	74,785		43,667			(15,011		)	(15,784		)	87,657
Equity in net loss of subsidiaries	16,388		—			—			(16,388		)	—
Net loss attributable to noncontrolling interests	—		—			3,516			—			3,516

Net income (loss) attributable to Steel Dynamics, Inc.	$	91,173	$	43,667		$	(11,495	)	$	(32,172	)	$	91,173

For the nine months ended,						Combined			Consolidating			Total
September 30, 2015	Parent		Guarantors			Non-Guarantors			Adjustments			Consolidated
Net sales	$	2,300,024	$	6,447,974		$	302,657		$	(3,047,290	)	$	6,003,365
Costs of goods sold	1,982,667		6,056,514			352,980			(2,976,307		)	5,415,854

Gross profit (loss)	317,357		391,460			(50,323		)	(70,983		)	587,511
Selling, general and administrative	95,883		188,028			8,878			(13,637		)	279,152

Operating income (loss)	221,474		203,432			(59,201		)	(57,346		)	308,359
Interest expense, net of capitalized interest	57,015		58,354			5,084			(3,119		)	117,334
Other (income) expense, net	15,131		(597		)	(2,434		)	3,119			15,219

Income (loss) before income taxes and equity in net loss of subsidiaries	149,328		145,675			(61,851		)	(57,346		)	175,806
Income taxes (benefit)	35,207		53,903			(4,047		)	(20,403		)	64,660

	114,121		91,772			(57,804		)	(36,943		)	111,146
Equity in net loss of subsidiaries	8,807		—			—			(8,807		)	—
Net loss attributable to noncontrolling interests	—		—			11,782			—			11,782

Net income (loss) attributable to Steel Dynamics, Inc.	$	122,928	$	91,772		$	(46,022	)	$	(45,750	)	$	122,928

For the nine months ended,					Combined			Consolidating			Total
September 30, 2014	Parent		Guarantors		Non-Guarantors			Adjustments			Consolidated
Net sales	$	2,915,339	$	7,035,579	$	377,639		$	(4,089,698	)	$	6,238,859
Costs of goods sold	2,477,791		6,668,153		427,029			(4,008,701		)	5,564,272

Gross profit (loss)	437,548		367,426		(49,390		)	(80,997		)	674,587
Selling, general and administrative	105,185		170,578		10,415			(13,071		)	273,107

Operating income (loss)	332,363		196,848		(59,805		)	(67,926		)	401,480
Interest expense, net of capitalized interest	57,357		33,093		5,824			(3,751		)	92,523
Other (income) expense, net	20,016		147		(4,226		)	3,750			19,687

Income (loss) before income taxes and equity in net loss of subsidiaries	254,990		163,608		(61,403		)	(67,925		)	289,270
Income taxes (benefit)	64,480		58,772		949			(22,627		)	101,574

	190,510		104,836		(62,352		)	(45,298		)	187,696
Equity in net loss of subsidiaries	11,545		—		—			(11,545		)	—
Net loss attributable to noncontrolling interests	—		—		14,359			—			14,359

Net income (loss) attributable to Steel Dynamics, Inc.	$	202,055	$	104,836	$	(47,993	)	$	(56,843	)	$	202,055

Condensed Consolidating Statements of Cash Flows (in thousands)

For the nine months ended,							Combined			Consolidating			Total
September 30, 2015	Parent			Guarantors			Non-Guarantors			Adjustments			Consolidated

Net cash provided by (used in) operating activities	$	306,941		$	400,910		$	(4,302	)	$	4,748		$	708,297
Net cash used in investing activities	(35,100		)	(82,737		)	(12,796		)	5,359			(125,274		)
Net cash provided by (used in) financing activities	(126,984		)	(347,111		)	13,606			(10,107		)	(470,596		)

Increase (decrease) in cash and equivalents	144,857			(28,938		)	(3,492		)	—			112,427
Cash and equivalents at beginning of period	265,313			81,690			14,360			—			361,363

Cash and equivalents at end of period	$	410,170		$	52,752		$	10,868		$	—		$	473,790

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

Net cash provided by (used in) operating activities	$	258,952		$	80,298		$	(41,245	)	$	(14	)	$	297,991
Net cash provided by (used in) investing activities	(1,692,967		)	15,023			(16,740		)	(1,528		)	(1,696,212		)
Net cash provided by (used in) financing activities	1,188,074			(85,774		)	58,814			1,542			1,162,656

Increase (decrease) in cash and equivalents	(245,941		)	9,547			829			—			(235,565		)
Cash and equivalents at beginning of period	320,866			61,148			13,142			—			395,156

Cash and equivalents at end of period	$	74,925		$	70,695		$	13,971		$	—		$	159,591