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, (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, 2015.



Condensed Consolidating Balance Sheets (in thousands)
					Combined		Consolidating		Total
As of September 30, 2016	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Cash and equivalents	$	972,610	$	61,054	$	17,825	$	-	$	1,051,489
Accounts receivable, net		238,290		1,248,565		41,667		(749,063)		779,459
Inventories		588,583		634,942		59,837		(7,787)		1,275,575
Other current assets		17,109		10,598		4,373		(1,959)		30,121
Total current assets		1,816,592		1,955,159		123,702		(758,809)		3,136,644
Property, plant and equipment, net		921,850		1,684,925		323,308		(1,857)		2,928,226
Intangible assets, net		-		259,231		32,583		-		291,814
Goodwill		-		392,678		7,189		-		399,867
Other assets, including investments in subs		2,916,319		8,023		6,411		(2,899,742)		31,011
Total assets	$	5,654,761	$	4,300,016	$	493,193	$	(3,660,408)	$	6,787,562

Accounts payable	$	171,302	$	274,873	$	80,690	$	(89,029)	$	437,836
Accrued expenses		229,039		212,493		8,068		(109,478)		340,122
Current maturities of long-term debt		13,161		700		32,248		(29,954)		16,155
Total current liabilities		413,502		488,066		121,006		(228,461)		794,113
Long-term debt		2,541,145		-		171,622		(141,930)		2,570,837
Other liabilities		(265,803)		1,155,611		61,932		(480,830)		470,910

Redeemable noncontrolling interests		-		-		126,340		-		126,340

Common stock		640		1,727,859		18,120		(1,745,979)		640
Treasury stock		(392,051)		-		-		-		(392,051)
Additional paid-in-capital		1,132,365		128,076		773,793		(901,869)		1,132,365
Retained earnings (deficit)		2,224,963		800,404		(639,065)		(161,339)		2,224,963
Total Steel Dynamics, Inc. equity		2,965,917		2,656,339		152,848		(2,809,187)		2,965,917
Noncontrolling interests		-		-		(140,555)		-		(140,555)
Total equity		2,965,917		2,656,339		12,293		(2,809,187)		2,825,362
Total liabilities and equity	$	5,654,761	$	4,300,016	$	493,193	$	(3,660,408)	$	6,787,562

Note 11. Condensed Consolidating Information (Continued)



					Combined		Consolidating		Total
As of December 31, 2015	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Cash and equivalents	$	636,877	$	81,976	$	8,179	$	-	$	727,032
Accounts receivable, net		200,094		1,056,285		29,775		(672,549)		613,605
Inventories		539,963		573,924		35,004		499		1,149,390
Other current assets		21,654		25,415		1,676		(831)		47,914
Total current assets		1,398,588		1,737,600		74,634		(672,881)		2,537,941
Property, plant and equipment, net		958,212		1,703,932		291,077		(2,011)		2,951,210
Intangible assets, net		-		278,960		-		-		278,960
Goodwill		-		397,470		-		-		397,470
Other assets, including investments in subs		2,941,710		10,040		6,137		(2,921,386)		36,501
Total assets	$	5,298,510	$	4,128,002	$	371,848	$	(3,596,278)	$	6,202,082

Accounts payable	$	100,751	$	183,344	$	68,948	$	(69,688)	$	283,355
Accrued expenses		141,552		185,873		4,779		(96,949)		235,255
Current maturities of long-term debt		13,122		700		24,975		(22,117)		16,680
Total current liabilities		255,425		369,917		98,702		(188,754)		535,290
Long-term debt		2,546,606		361		177,897		(146,888)		2,577,976
Other liabilities		(183,248)		1,342,541		63,020		(804,948)		417,365

Redeemable noncontrolling interests		-		-		126,340		-		126,340

Common stock		638		1,727,859		18,120		(1,745,979)		638
Treasury stock		(396,455)		-		-		-		(396,455)
Additional paid-in-capital		1,110,253		117,737		646,787		(764,524)		1,110,253
Retained earnings (deficit)		1,965,291		569,587		(624,402)		54,815		1,965,291
Total Steel Dynamics, Inc. equity		2,679,727		2,415,183		40,505		(2,455,688)		2,679,727
Noncontrolling interests		-		-		(134,616)		-		(134,616)
Total equity		2,679,727		2,415,183		(94,111)		(2,455,688)		2,545,111
Total liabilities and equity	$	5,298,510	$	4,128,002	$	371,848	$	(3,596,278)	$	6,202,082

Note 11. Condensed Consolidating Information (Continued)



Condensed Consolidating Statements of Operations (in thousands)

For the three months ended,					Combined		Consolidating		Total
September 30, 2016	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net sales	$	845,585	$	2,258,466	$	96,409	$	(1,099,150)	$	2,101,310
Costs of goods sold		647,983		2,016,874		100,470		(1,072,520)		1,692,807
Gross profit (loss)		197,602		241,592		(4,061)		(26,630)		408,503
Selling, general and administrative		52,995		72,605		4,134		(5,086)		124,648
Operating income (loss)		144,607		168,987		(8,195)		(21,544)		283,855
Interest expense, net of capitalized interest		17,818		17,741		2,847		(2,207)		36,199
Other (income) expense, net		2,342		3,937		(4,135)		2,207		4,351
Income (loss) before income taxes and
equity in net income of subsidiaries		124,447		147,309		(6,907)		(21,544)		243,305
Income taxes		40,242		55,684		797		(7,831)		88,892
		84,205		91,625		(7,704)		(13,713)		154,413
Equity in net income of subsidiaries		73,192		-		-		(73,192)		-
Net loss attributable to noncontrolling interests		-		-		2,984		-		2,984
Net income (loss) attributable to Steel Dynamics, Inc.	$	157,397	$	91,625	$	(4,720)	$	(86,905)	$	157,397



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 income 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 income 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

Note 11. Condensed Consolidating Information (Continued)



For the nine months ended,					Combined		Consolidating		Total
September 30, 2016	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net sales	$	2,297,389	$	6,322,158	$	271,694	$	(3,024,728)	$	5,866,513
Costs of goods sold		1,823,408		5,676,265		286,486		(2,944,568)		4,841,591
Gross profit (loss)		473,981		645,893		(14,792)		(80,160)		1,024,922
Selling, general and administrative		145,596		212,613		9,352		(14,581)		352,980
Operating income (loss)		328,385		433,280		(24,144)		(65,579)		671,942
Interest expense, net of capitalized interest		53,842		54,493		7,558		(6,005)		109,888
Other (income) expense, net		(2,137)		8,012		(11,139)		6,005		741
Income (loss) before income taxes and
equity in net income of subsidiaries		276,680		370,775		(20,563)		(65,579)		561,313
Income taxes (benefit)		89,210		139,958		(63)		(23,966)		205,139
		187,470		230,817		(20,500)		(41,613)		356,174
Equity in net income of subsidiaries		174,633		-		-		(174,633)		-
Net loss attributable to noncontrolling interests		-		-		5,929		-		5,929
Net income (loss) attributable to Steel Dynamics, Inc.	$	362,103	$	230,817	$	(14,571)	$	(216,246)	$	362,103



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 income 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 income 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

Note 11. Condensed Consolidating Information (Continued)


Condensed Consolidating Statements of Cash Flows (in thousands)

For the nine months ended,					Combined		Consolidating		Total
September 30, 2016	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated

Net cash provided by operating activities	$	280,767	$	358,657	$	52	$	3,735	$	643,211
Net cash used in investing activities		(143,427)		(81,983)		(3,935)		2,879		(226,466)
Net cash provided by (used in) financing activities		198,393		(297,596)		13,529		(6,614)		(92,288)
Increase (decrease) in cash and equivalents		335,733		(20,922)		9,646		-		324,457
Cash and equivalents at beginning of period		636,877		81,976		8,179		-		727,032
Cash and equivalents at end of period	$	972,610	$	61,054	$	17,825	$	-	$	1,051,489



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