Note 13. 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. Description of the Business and Summary of Significant Accounting Policies 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.

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



			Metals		Steel
For The Year Ended	Steel		Recycling		Fabrication
December 31, 2018	Operations		Operations		Operations		Other			Eliminations			Consolidated

Net Sales
External	$	8,476,104	$	1,295,514	$	921,023	$	427,372		$	-		$	11,120,013
External Non-United States		444,615		257,086		125		-			-			701,826
Other segments		342,433		1,649,614		803		1,688			(1,994,538)			-
		9,263,152		3,202,214		921,951		429,060			(1,994,538)			11,821,839
Operating income (loss)		1,839,852		75,891		61,901		(253,195)	(1)		(2,040)	(2)		1,722,409
Income (loss) before income taxes		1,770,888		69,861		56,236		(275,137)			(2,074)			1,619,774
Depreciation and amortization		248,765		46,015		11,553		10,865			-			317,198
Capital expenditures		189,208		35,518		8,303		6,361			-			239,390

As of December 31, 2018

Assets	$	5,150,298	$	946,689	$	415,708	$	1,283,539	(3)	$	(92,671)	(4)	$	7,703,563


Footnotes related to the year ended December 31, 2018, segment results (in millions):

(1)	Corporate SG&A	$	(58.0)	(2)	Gross profit decrease from intra-company sales	$	(2.0)
	Company-wide equity-based compensation		(36.4)
	Profit sharing		(149.8)
	Other, net		(9.0)
		$	(253.2)

(3)	Cash and equivalents	$	811.1	(4)	Elimination of intercompany receivables	$	(64.6)
	Short-term investments		198.8		Elimination of intra-company debt		(14.0)
	Accounts receivable		5.9		Other		(14.1)
	Inventories		33.7			$	(92.7)
	Property, plant and equipment, net		153.8
	Intra-company debt		14.0
	Other		66.2
		$	1,283.5

Note 13. Segment Information (Continued)



			Metals		Steel
For The Year Ended	Steel		Recycling		Fabrication
December 31, 2017	Operations		Operations		Operations		Other			Eliminations			Consolidated

Net Sales
External	$	6,613,944	$	1,204,188	$	823,630	$	373,212		$	-		$	9,014,974
External Non-United States		317,819		205,853		151		-			-			523,823
Other segments		243,646		1,402,963		644		2,299			(1,649,552)			-
		7,175,409		2,813,004		824,425		375,511			(1,649,552)			9,538,797
Operating income (loss)		1,098,630		71,052		87,295		(190,785)	(1)		689	(2)		1,066,881
Income (loss) before income taxes		1,014,863		64,638		81,046		(226,001)			689			935,235
Depreciation and amortization		227,752		48,830		11,507		10,910			-			298,999
Capital expenditures		128,749		25,998		7,506		2,682			-			164,935

As of December 31, 2017

Assets	$	4,257,167	$	1,011,298	$	384,402	$	1,334,361	(3)	$	(131,496)	(4)	$	6,855,732


Footnotes related to the year ended December 31, 2017, segment results (in millions):

(1)	Corporate SG&A	$	(49.4)	(2)	Gross profit increase from intra-company sales	$	0.7
	Company-wide equity-based compensation		(36.5)
	Profit sharing		(87.6)
	Minnesota ironmaking operations		(12.8)
	Other, net		(4.5)
		$	(190.8)

(3)	Cash and equivalents	$	1,003.2	(4)	Elimination of intercompany receivables	$	(106.1)
	Accounts receivable		9.4		Elimination of intra-company debt		(13.4)
	Inventories		58.8		Other		(12.0)
	Income tax receivable		57.3			$	(131.5)
	Property, plant and equipment, net		160.9
	Intra-company debt		13.4
	Other		31.4
		$	1,334.4

Note 13. Segment Information (Continued)


			Metals			Steel
For The Year Ended	Steel		Recycling			Fabrication
December 31, 2016	Operations		Operations			Operations		Other			Eliminations			Consolidated

Net Sales
External	$	5,399,275	$	1,007,781		$	700,852	$	271,828		$	-		$	7,379,736
External Non-United States		235,436		161,560			189		188			-			397,373
Other segments		236,213		1,002,536			2,481		4,896			(1,246,126)			-
		5,870,924		2,171,877			703,522		276,912			(1,246,126)			7,777,109
Operating income (loss)		926,954		20,423	(3)		90,955		(301,116)	(1)		(9,250)	(2)		727,966
Income (loss) before income taxes		836,818		8,378	(3)		82,776		(354,589)			(9,250)			564,133
Depreciation and amortization		213,227		56,483			10,952		15,652			(205)			296,109
Capital expenditures		160,767		29,443			3,123		4,827			-			198,160


Footnotes related to the year ended December 31, 2016, segment results (in millions):

(1)	Corporate SG&A	$	(48.9)	(2)	Gross profit decrease from intra-company sales	$	(11.1)
	Company-wide equity-based compensation		(30.4)		Non-cash asset impairment charges		1.8
	Profit sharing		(66.4)			$	(9.3)
	Minnesota ironmaking operations		(15.8)
	Minnesota ironmaking operations non-cash
	asset impairment charges ($127.3 net
	of eliminating amounts)		(129.1)
	Other, net		(10.5)
		$	(301.1)

(3)	Includes $5.5 million of non-cash goodwill
	impairment charges.