Segment Information

3 Months Ended

Mar. 31, 2018

Segment Information

Segment Information

Note 9.  Segment Information

The company’s operations are primarily organized and managed by reportable operating segments, which are steel operations, metals recycling operations, and steel fabrication operations. The segment operations are more fully described in Note 1 to the consolidated financial statements. Operating segment performance and resource allocations are primarily based on operating results before income taxes. The accounting policies of the reportable segments are consistent with those described in Note 1 to the consolidated financial statements. Intra‑segment sales and any related profits are eliminated in consolidation. Amounts included in the category “Other” are from subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of our Minnesota ironmaking operations and several small joint ventures. In addition, “Other” also includes certain unallocated corporate accounts, such as the company’s senior secured credit facility, senior notes, certain other investments and certain profit sharing expenses.

Note 9.  Segment Information (Continued)

The company’s segment results are as follows (in thousands):

			Metals		Steel
For the three months ended	Steel		Recycling		Fabrication
March 31, 2018	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net Sales - disaggregated revenue
External	$	1,832,303	$	329,872	$	201,437	$	92,471		$	-		$	2,456,083
External Non-U.S.		89,486		58,250		56		-			-			147,792
Other segments		59,985		364,644		210		147			(424,986)			-
		1,981,774		752,766		201,703		92,618			(424,986)			2,603,875
Operating income (loss)		334,562		24,715		19,791		(55,406)	(1)		(265)			323,397
Income (loss) before income taxes		315,805		23,005		18,457		(61,033)			(270)			295,964
Depreciation and amortization		59,141		11,558		2,898		2,538			-			76,135
Capital expenditures		38,402		6,946		2,077		3,181			-			50,606
As of March 31, 2018
Assets	$	4,462,706	$	1,006,510	$	350,359	$	1,250,869	(2)	$	(97,631)	(3)	$	6,972,813

Footnotes related to the three months ended March 31, 2018, segment results (in millions):
(1)	Corporate SG&A	$	(15.7)	(3)	Elimination of intra-company receivables	$	(72.4)
	Company-wide equity-based compensation		(8.5)		Elimination of intra-company debt		(12.9)
	Profit sharing		(25.6)		Other		(12.3)
	Other, net		(5.6)			$	(97.6)
		$	(55.4)
(2)	Cash and equivalents	$	970.5
	Short-term investments		40.0
	Inventories		28.4
	Property, plant and equipment, net		161.7
	Intra-company debt		12.9
	Other		37.4
		$	1,250.9

Note 9.  Segment Information (Continued)

			Metals		Steel
For the three months ended	Steel		Recycling		Fabrication
March 31, 2017	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net Sales - disaggregated revenue
External	$	1,633,630	$	310,951	$	194,035	$	88,951		$	-		$	2,227,567
External Non-U.S.		87,703		52,885		61		-			-			140,649
Other segments		54,343		356,301		12		334			(410,990)			-
		1,775,676		720,137		194,108		89,285			(410,990)			2,368,216
Operating income (loss)		348,532		17,849		23,726		(53,970)	(1)		(1,571)	(2)		334,566
Income (loss) before income taxes		326,764		16,072		22,339		(59,352)			(1,571)			304,252
Depreciation and amortization		56,331		13,035		2,971		2,720			-			75,057
Capital expenditures		33,578		6,776		1,151		172			-			41,677

Footnotes related to the three months ended March 31, 2017, segment results (in millions):
(1)	Corporate SG&A	$	(12.4)	(2)	Gross profit decrease from intra-company sales	$	(1.6)
	Company-wide equity-based compensation		(9.6)
	Profit sharing		(26.5)
	Other, net		(5.5)
		$	(54.0)