Note 14. Condensed Consolidating Information

Certain 100% owned subsidiaries of SDI have fully and unconditionally guaranteed jointly and severally all of the indebtedness relating to the issuance of the company’s senior unsecured notes due 2021, 2023, 2024, 2025 and 2026. 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 notes thereto.


Condensed Consolidating Balance Sheets (in thousands)
					Combined		Consolidating		Total
As of December 31, 2018	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Cash and equivalents	$	809,763	$	13,491	$	4,966	$	-	$	828,220
Short-term investments		198,783		30,000		-		-		228,783
Accounts receivable, net		340,439		1,635,168		26,655		(958,506)		1,043,756
Inventories		793,174		1,038,702		39,214		(11,922)		1,859,168
Other current assets		56,578		18,627		3,994		(6,469)		72,730
Total current assets		2,198,737		2,735,988		74,829		(976,897)		4,032,657
Property, plant and equipment, net		871,482		1,918,198		156,087		-		2,945,767
Intangible assets, net		-		270,328		-		-		270,328
Goodwill		-		429,645		-		-		429,645
Other assets, including investments in subs		2,862,556		5,593		5,557		(2,848,540)		25,166
Total assets	$	5,932,775	$	5,359,752	$	236,473	$	(3,825,437)	$	7,703,563

Accounts payable	$	209,156	$	330,156	$	74,353	$	(62,911)	$	550,754
Accrued expenses		296,528		295,668		11,171		(159,218)		444,149
Current maturities of long-term debt		793		1,355		51,079		(28,993)		24,234
Total current liabilities		506,477		627,179		136,603		(251,122)		1,019,137
Long-term debt		2,327,798		381		166,226		(141,916)		2,352,489
Other liabilities		(836,571)		1,447,464		31,791		(197,976)		444,708
Total liabilities		1,997,704		2,075,024		334,620		(591,014)		3,816,334

Redeemable noncontrolling interests		-		-		111,240		-		111,240

Common stock		645		1,727,859		15,016		(1,742,875)		645
Treasury stock		(1,184,243)		-		-		-		(1,184,243)
Additional paid-in capital		1,160,048		683,048		695,502		(1,378,550)		1,160,048
Retained earnings (deficit)		3,958,320		873,821		(760,823)		(112,998)		3,958,320
Accumulated other comprehensive income		301		-		-		-		301
Total Steel Dynamics, Inc. equity		3,935,071		3,284,728		(50,305)		(3,234,423)		3,935,071
Noncontrolling interests		-		-		(159,082)		-		(159,082)
Total equity		3,935,071		3,284,728		(209,387)		(3,234,423)		3,775,989
Total liabilities and equity	$	5,932,775	$	5,359,752	$	236,473	$	(3,825,437)	$	7,703,563

Note 14. Condensed Consolidating Information (Continued)



					Combined		Consolidating		Total
As of December 31, 2017	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Cash and equivalents	$	1,001,405	$	20,441	$	6,803	$	-	$	1,028,649
Accounts receivable, net		274,968		1,426,036		37,387		(869,554)		868,837
Inventories		685,103		752,151		91,890		(9,797)		1,519,347
Other current assets		73,748		16,005		5,962		(4,206)		91,509
Total current assets		2,035,224		2,214,633		142,042		(883,557)		3,508,342
Property, plant and equipment, net		859,419		1,618,438		198,047		-		2,675,904
Intangible assets, net		-		225,503		31,406		-		256,909
Goodwill		-		379,069		7,824		-		386,893
Other assets, including investments in subs		2,512,594		6,622		5,505		(2,497,037)		27,684
Total assets	$	5,407,237	$	4,444,265	$	384,824	$	(3,380,594)	$	6,855,732

Accounts payable	$	168,282	$	316,676	$	101,948	$	(97,458)	$	489,448
Accrued expenses		222,023		254,196		10,243		(136,186)		350,276
Current maturities of long-term debt		731		-		56,454		(28,390)		28,795
Total current liabilities		391,036		570,872		168,645		(262,034)		868,519
Long-term debt		2,326,466		-		169,799		(143,120)		2,353,145
Other liabilities		(661,839)		869,196		24,868		95,535		327,760
Total liabilities		2,055,663		1,440,068		363,312		(309,619)		3,549,424

Redeemable noncontrolling interests		-		-		111,240		-		111,240

Common stock		644		1,727,859		14,908		(1,742,767)		644
Treasury stock		(665,297)		-		-		-		(665,297)
Additional paid-in capital		1,141,534		128,076		797,196		(925,272)		1,141,534
Retained earnings (deficit)		2,874,693		1,148,262		(745,326)		(402,936)		2,874,693
Total Steel Dynamics, Inc. equity		3,351,574		3,004,197		66,778		(3,070,975)		3,351,574
Noncontrolling interests		-		-		(156,506)		-		(156,506)
Total equity		3,351,574		3,004,197		(89,728)		(3,070,975)		3,195,068
Total liabilities and equity	$	5,407,237	$	4,444,265	$	384,824	$	(3,380,594)	$	6,855,732

Note 14. Condensed Consolidating Information (Continued)



Condensed Consolidating Statements of Operations (in thousands)

					Combined		Consolidating		Total
For the year ended December 31, 2018	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net sales	$	4,819,137	$	13,000,622	$	555,194	$	(6,553,114)	$	11,821,839
Costs of goods sold		3,675,766		11,680,691		548,626		(6,406,058)		9,499,025
Gross profit		1,143,371		1,319,931		6,568		(147,056)		2,322,814
Selling, general and administrative		298,101		312,483		12,126		(22,305)		600,405
Operating income (loss)		845,270		1,007,448		(5,558)		(124,751)		1,722,409
Interest expense, net of capitalized interest		75,312		49,205		12,595		(10,492)		126,620
Other (income) expense, net		(27,268)		(6,514)		(730)		10,527		(23,985)
Income (loss) before income taxes and
equity in net income of subsidiaries		797,226		964,757		(17,423)		(124,786)		1,619,774
Income taxes		153,528		239,198		647		(29,404)		363,969
		643,698		725,559		(18,070)		(95,382)		1,255,805
Equity in net income of subsidiaries		614,681		-		-		(614,681)		-
Net loss attributable to noncontrolling interests		-		-		2,574		-		2,574
Net income (loss) attributable to Steel Dynamics, Inc.	$	1,258,379	$	725,559	$	(15,496)	$	(710,063)	$	1,258,379



					Combined		Consolidating		Total
For the year ended December 31, 2017	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net sales	$	3,702,597	$	10,366,526	$	597,789	$	(5,128,115)	$	9,538,797
Costs of goods sold		2,994,257		9,399,996		577,205		(5,014,675)		7,956,783
Gross profit		708,340		966,530		20,584		(113,440)		1,582,014
Selling, general and administrative		221,736		293,161		20,493		(20,257)		515,133
Operating income		486,604		673,369		91		(93,183)		1,066,881
Interest expense, net of capitalized interest		73,521		57,622		12,901		(9,645)		134,399
Other (income) expense, net		(2,305)		(9,937)		(156)		9,645		(2,753)
Income (loss) before income taxes and
equity in net loss of subsidiaries		415,388		625,684		(12,654)		(93,183)		935,235
Income taxes (benefit)		(69,961)		226,327		5,266		(32,193)		129,439
		485,349		399,357		(17,920)		(60,990)		805,796
Equity in net loss of subsidiaries		327,392		-		-		(327,392)		-
Net loss attributable to noncontrolling interests		-		-		6,945		-		6,945
Net income (loss) attributable to Steel Dynamics, Inc.	$	812,741	$	399,357	$	(10,975)	$	(388,382)	$	812,741

Note 14. Condensed Consolidating Information (Continued)



					Combined		Consolidating		Total
For the year ended December 31, 2016	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net sales	$	3,037,801	$	8,356,727	$	388,071	$	(4,005,490)	$	7,777,109
Costs of goods sold		2,428,863		7,522,791		390,313		(3,899,722)		6,442,245
Gross profit (loss)		608,938		833,936		(2,242)		(105,768)		1,334,864
Selling, general and administrative		196,442		281,071		16,103		(19,557)		474,059
Asset impairment charges		12,700		5,500		116,445		(1,806)		132,839
Operating income (loss)		399,796		547,365		(134,790)		(84,405)		727,966
Interest expense, net of capitalized interest		71,182		72,420		10,874		(8,439)		146,037
Other (income) expense, net		14,200		(5,363)		520		8,439		17,796
Income (loss) before income taxes and
equity in net loss of subsidiaries		314,414		480,308		(146,184)		(84,405)		564,133
Income taxes (benefit)		69,454		180,990		(15,825)		(30,492)		204,127
		244,960		299,318		(130,359)		(53,913)		360,006
Equity in net loss of subsidiaries		137,155		-		-		(137,155)		-
Net loss attributable to noncontrolling interests		-		-		22,109		-		22,109
Net income (loss) attributable to Steel Dynamics, Inc.	$	382,115	$	299,318	$	(108,250)	$	(191,068)	$	382,115



Condensed Consolidating Statements of Cash Flows (in thousands)

					Combined		Consolidating		Total
For the year ended December 31, 2018	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated

Net cash provided by (used in) operating activities	$	577,735	$	833,409	$	(6,704)	$	11,029	$	1,415,469
Net cash used in investing activities		(756,347)		(133,220)		(5,097)		(600)		(895,264)
Net cash provided by (used in) financing activities		(13,855)		(706,569)		9,986		(10,429)		(720,867)
Decrease in cash and equivalents, and restricted cash		(192,467)		(6,380)		(1,815)		-		(200,662)
Cash and equivalents, and restricted cash
at beginning of period		1,002,230		20,748		12,107		-		1,035,085
Cash and equivalents, and restricted cash
at end of period	$	809,763	$	14,368	$	10,292	$	-	$	834,423



					Combined		Consolidating		Total
For the year ended December 31, 2017	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated

Net cash provided by (used in) operating activities	$	171,216	$	594,404	$	(31,946)	$	5,746	$	739,420
Net cash used in investing activities		(62,534)		(73,021)		(8,301)		4,751		(139,105)
Net cash provided by (used in) financing activities		125,954		(555,494)		26,702		(10,497)		(413,335)
Increase (decrease) in cash and equivalents,
and restricted cash		234,636		(34,111)		(13,545)		-		186,980
Cash and equivalents, and restricted cash
at beginning of period		767,594		54,859		25,652		-		848,105
Cash and equivalents, and restricted cash
at end of period	$	1,002,230	$	20,748	$	12,107	$	-	$	1,035,085

Note 14. Condensed Consolidating Information (Continued)



					Combined		Consolidating		Total
For the year ended December 31, 2016	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated

Net cash provided by operating activities	$	326,256	$	517,643	$	6,064	$	2,797	$	852,760
Net cash used in investing activities		(161,043)		(140,027)		(9,578)		(2,245)		(312,893)
Net cash provided by (used in) financing activities		(35,365)		(404,971)		15,463		(552)		(425,425)
Increase (decrease) in cash and equivalents,
and restricted cash		129,848		(27,355)		11,949		-		114,442
Cash and equivalents, and restricted cash
at beginning of period		637,746		82,214		13,703		-		733,663
Cash and equivalents, and restricted cash
at end of period	$	767,594	$	54,859	$	25,652	$	-	$	848,105