10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 10-Q

☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the period ended March 31, 2019
	OR
☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number 0-21719

Steel Dynamics, Inc.
(Exact name of registrant as specified in its charter)
Indiana	35-1929476
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
7575 West Jefferson Blvd, Fort Wayne, IN	46804
(Address of principal executive offices)	(Zip Code)
Registrant’s telephone number, including area code:  (260) 969-3500

Securities registered pursuant to Section 12(b) of the Act.

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock voting, $0.025 par value	STLD	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company (see definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act). 

(Check one):	Large accelerated filer ☒	Accelerated filer ☐	Non-accelerated filer ☐
	Smaller reporting company  ☐	Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐  No☒

As of May 1, 2019, Registrant had 222,245,142 outstanding shares of common stock.

STEEL DYNAMICS, INC. Table of Contents
PART I.  Financial Information
Item 1.	Financial Statements:	Page
	Consolidated Balance Sheets as of March 31, 2019 (unaudited) and December 31, 2018	1
	Consolidated Statements of Income for the three month periods ended March 31, 2019 and 2018 (unaudited)	2
	Consolidated Statements of Comprehensive Income for the three month periods ended March 31, 2019 and 2018 (unaudited)	3
	Consolidated Statements of Cash Flows for the three month periods ended March 31, 2019 and 2018 (unaudited)	4
	Notes to Consolidated Financial Statements (unaudited)	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	24
Item 4.	Controls and Procedures	24
	PART II.  Other Information
Item 1.	Legal Proceedings	25
Item 1A.	Risk Factors	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 3.	Defaults Upon Senior Securities	25
Item 4.	Mine Safety Disclosures	25
Item 5.	Other Information	25
Item 6.	Exhibits	25
Exhibit Index		26
Signature		27

STEEL DYNAMICS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

	March 31,		December 31,
	2019		2018
Assets	(unaudited)
Current assets
Cash and equivalents	$	791,444	$	828,220
Short-term investments		173,723		228,783
Accounts receivable, net		1,141,038		1,040,220
Accounts receivable-related parties		2,357		3,536
Inventories		1,867,700		1,859,168
Other current assets		52,628		72,730
Total current assets		4,028,890		4,032,657
Property, plant and equipment, net		2,936,893		2,945,767
Intangible assets, net		263,315		270,328
Goodwill		530,716		429,645
Other assets		97,419		25,166
Total assets	$	7,857,233	$	7,703,563
Liabilities and Equity
Current liabilities
Accounts payable	$	582,284	$	536,743
Accounts payable-related parties		9,183		14,011
Income taxes payable		26,896		7,468
Accrued payroll and benefits		114,575		264,542
Accrued interest		47,955		25,526
Accrued expenses		141,239		146,613
Current maturities of long-term debt		80,958		24,234
Total current liabilities		1,003,090		1,019,137
Long-term debt		2,354,427		2,352,489
Deferred income taxes		447,087		435,838
Other liabilities		63,171		8,870
Total liabilities		3,867,775		3,816,334
Commitments and contingencies
Redeemable noncontrolling interests		139,930		111,240
Equity
Common stock voting, $.0025 par value; 900,000,000 shares authorized;
265,552,825 and 265,822,402 shares issued; and 222,931,285 and 225,272,174
shares outstanding, as of March 31, 2019 and December 31, 2018, respectively		645		645
Treasury stock, at cost; 42,621,540 and 40,550,228 shares,
as of March 31, 2019 and December 31, 2018, respectively		(1,261,837)		(1,184,243)
Additional paid-in capital		1,160,139		1,160,048
Retained earnings		4,109,034		3,958,320
Accumulated other comprehensive income		130		301
Total Steel Dynamics, Inc. equity		4,008,111		3,935,071
Noncontrolling interests		(158,583)		(159,082)
Total equity		3,849,528		3,775,989
Total liabilities and equity	$	7,857,233	$	7,703,563

See notes to consolidated financial statements.

1

STEEL DYNAMICS, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands, except per share data)

	Three Months Ended
	March 31,
	2019		2018
Net sales
Unrelated parties	$	2,814,486	$	2,597,312
Related parties		2,949		6,563
Total net sales		2,817,435		2,603,875
Costs of goods sold		2,383,865		2,140,459
Gross profit		433,570		463,416
Selling, general and administrative expenses		111,038		106,431
Profit sharing		23,677		26,662
Amortization of intangible assets		7,013		6,926
Operating income		291,842		323,397
Interest expense, net of capitalized interest		31,122		31,896
Other (income) expense, net		(6,343)		(4,463)
Income before income taxes		267,063		295,964
Income tax expense		62,236		70,489
Net income		204,827		225,475
Net (income) loss attributable to noncontrolling interests		(499)		2,076
Net income attributable to Steel Dynamics, Inc.	$	204,328	$	227,551
Basic earnings per share attributable to Steel Dynamics,
Inc. stockholders	$	0.91	$	0.96
Weighted average common shares outstanding		224,058		236,623
Diluted earnings per share attributable to Steel Dynamics, Inc.
stockholders, including the effect of assumed conversions
when dilutive	$	0.91	$	0.96
Weighted average common shares and share equivalents outstanding		224,962		237,723
Dividends declared per share	$	0.2400	$	0.1875

See notes to consolidated financial statements.

2

STEEL DYNAMICS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(in thousands)

	Three Months Ended
	March 31,
	2019		2018
Net income	$	204,827	$	225,475
Other comprehensive loss - net unrealized loss on cash flow
hedging derivatives, net of income tax benefit of $54
for the three months ended March 31, 2019		(171)		-
Comprehensive income		204,656		225,475
Comprehensive (income) loss attributable to noncontrolling interests		(499)		2,076
Comprehensive income attributable to Steel Dynamics, Inc.	$	204,157	$	227,551

See notes to consolidated financial statements.

3

STEEL DYNAMICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)

	Three Months Ended
	March 31,
	2019		2018
Operating activities:
Net income	$	204,827	$	225,475
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization		80,174		76,135
Equity-based compensation		15,308		12,841
Deferred income taxes		12,091		9,545
Other adjustments		728		30
Changes in certain assets and liabilities:
Accounts receivable		(61,062)		(118,818)
Inventories		39,469		(80,711)
Other assets		301		(105)
Accounts payable		3,206		66,332
Income taxes receivable/payable		49,850		63,962
Accrued expenses		(163,339)		(76,751)
Net cash provided by operating activities		181,553		177,935
Investing activities:
Purchases of property, plant and equipment		(54,436)		(50,606)
Purchases of short-term investments		(49,677)		(40,000)
Proceeds from maturities of short-term investments		104,737		-
Acquisition of business, net of cash and restricted cash acquired		(93,412)		-
Other investing activities		364		229
Net cash used in investing activities		(92,424)		(90,377)
Financing activities:
Issuance of current and long-term debt		121,234		93,058
Repayment of current and long-term debt		(115,271)		(113,034)
Dividends paid		(42,239)		(36,797)
Purchases of treasury stock		(84,308)		(69,269)
Other financing activities		(5,720)		(5,180)
Net cash used in financing activities		(126,304)		(131,222)
Decrease in cash, cash equivalents, and restricted cash		(37,175)		(43,664)
Cash, cash equivalents, and restricted cash at beginning of period		834,423		1,035,085
Cash, cash equivalents, and restricted cash at end of period	$	797,248	$	991,421
Supplemental disclosure information:
Cash paid for interest	$	8,606	$	8,629
Cash paid (received) for income taxes, net	$	1,839	$	(1,045)

See notes to consolidated financial statements.

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STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1.  Description of the Business and Significant Accounting Policies

Description of the Business

Steel Dynamics, Inc. (SDI), together with its subsidiaries (the company), is a domestic manufacturer of steel products and metals recycler. The company has three reportable segments: steel operations, metals recycling operations, and steel fabrication operations.

Steel Operations Segment.  Steel operations include the company’s Butler Flat Roll Division, Columbus Flat Roll Division, The Techs galvanizing lines, Heartland Flat Roll Division, United Steel Supply (acquired 75% equity interest March 1, 2019), Structural and Rail Division, Engineered Bar Products Division, Vulcan Threaded Products, Inc., Roanoke Bar Division, Steel of West Virginia, and Iron Dynamics, a liquid pig iron (scrap substitute) production facility that supplies solely the Butler Flat Roll Division. These operations include electric arc furnace steel mills, producing steel from ferrous scrap and scrap substitutes, utilizing continuous casting, automated rolling mills, with several downstream coating and bar processing lines. Steel operations accounted for 75% and 74% of the company’s consolidated external net sales during the three months ended March 31, 2019 and 2018, respectively.

Metals Recycling Operations Segment. Metals recycling operations consists solely of OmniSource Corporation (OmniSource), and includes both ferrous and nonferrous processing, transportation, marketing, brokerage, and scrap management services. Metals recycling operations accounted for 13% and 15% of the company’s consolidated external net sales during the three months ended March 31, 2019 and 2018, respectively.

Steel Fabrication Operations Segment.  Steel fabrication operations include the company’s New Millennium Building Systems’ joist and deck plants located throughout the United States, and in Northern Mexico. Revenues from these plants are generated from the fabrication of trusses, girders, steel joists and steel deck used within the non-residential construction industry.   Steel fabrication operations accounted for 8% of the company’s consolidated external net sales during the three months ended March 31, 2019 and 2018.

Other. Other operations consists of subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of smaller joint ventures, and the idle Minnesota ironmaking operations. Also included in “Other” are certain unallocated corporate accounts, such as the company’s senior secured credit facility, senior notes, certain other investments and certain profit sharing expenses.

Significant Accounting Policies

Principles of Consolidation.  The consolidated financial statements include the accounts of SDI, together with its wholly- and majority-owned/ controlled subsidiaries, after elimination of intercompany accounts and transactions. Noncontrolling interests represent the noncontrolling owner’s proportionate share in the equity, income, or losses of the company’s majority-owned/controlled consolidated subsidiaries. 

Use of Estimates. These consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, and accordingly, include amounts that require management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the notes thereto. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment, intangible assets, and goodwill; valuation allowances for trade receivables, inventories and deferred income tax assets; unrecognized tax benefits; potential environmental liabilities; and litigation claims and settlements. Actual results may differ from these estimates and assumptions. 

In the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the interim period results. These consolidated financial statements and notes should be read in conjunction with the audited financial statements and notes thereto included in the company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Cash and Equivalents. And Restricted Cash

Cash and equivalents include all highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash is primarily funds held in escrow as required by various insurance and government organizations. The balance of cash, cash equivalents and restricted cash in the consolidated statements of cash flows includes restricted cash of $5.8 million, $6.2 million, $5.6 million, and $6.4 million at March 31, 2019, December 31, 2018, March 31, 2018, and December 31, 2017, respectively, which are recorded in Other Assets (noncurrent) in the company’s consolidated balance sheets.

5

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1.  Description of the Business and Significant Accounting Policies (Continued)

Goodwill

The company’s goodwill consisted of the following reporting units at March 31, 2019, and December 31, 2018, (in thousands):

	March 31,		December 31,
	2019		2018
Steel Operations Segment
Columbus Flat Roll Division	$	19,682	$	19,682
The Techs		142,783		142,783
Heartland Flat Roll Division		46,143		46,143
United Steel Supply		101,918		-
Vulcan Threaded Products		7,824		7,824
Roanoke Bar Division		29,041		29,041
Metals Recycling Operations Segment – OmniSource		181,400		182,247
Steel Fabrication Operations Segment – New Millennium Building Systems		1,925		1,925
	$	530,716	$	429,645

The company acquired a 75% equity interest in United Steel Supply on March 1, 2019 (refer to Note 2 Acquisition – United Steel Supply, LLC), resulting in a preliminary purchase price allocation in which $101.9 million of goodwill was recorded. OmniSource goodwill decreased $847,000 from December 31, 2018 to March 31, 2019, in recognition of the 2019 tax benefit related to the normal amortization of the component of OmniSource tax-deductible goodwill in excess of book goodwill.

Recently Issued Accounting Standards

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: which requires an entity to use a forward-looking expected loss model versus the current incurred loss model for most financial instruments, including accounts receivable.  This new guidance is effective for annual and interim periods beginning after December 15, 2019, but can be early adopted.  The company is currently evaluating the impact ASU 2016-13 will have in its consolidated financial statements and related disclosure.

Note 2. Acquisition – United Steel Supply, LLC

On March 1, 2019, the company purchased 75% of the equity interest of United Steel Supply, LLC (USS) for cash consideration of $93.4 million, subject to customary actual working capital purchase price adjustments. Additionally, the company has an option to purchase, and the sellers have the option to require the company to purchase, the remaining 25% equity interest of USS in the future.  Headquartered in Austin, Texas, USS is a leading distributor of painted Galvalume® flat roll steel used for roofing and siding applications, with distribution centers strategically located in Mississippi, Indiana, Arkansas, and Oregon. USS provides the company a new, complementary distribution channel and connects it to a rapidly growing industry segment with customers that do not traditionally purchase steel directly from a steel producer.  USS’s operating results from and after March 1, 2019, are reflected in the company’s financial statements in the steel operations reporting segment.

The aggregate purchase price was preliminarily allocated to the opening balance sheet of USS as of March 1, 2019. The following initial allocation of the purchase price (in thousands) is preliminary based on the information available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed.  The accounting for the acquisition has not yet been completed because the company has not finalized the valuations of the acquired assets, assumed liabilities and identifiable intangible assets, if any, including goodwill. 

Current assets, net of cash acquired	$	94,020
Property, plant & equipment		7,388
Intangible assets and goodwill		101,918
Total assets acquired		203,326
Liabilities assumed		81,224
Redeemable noncontrolling interest		28,690
Net cash consideration	$	93,412

6

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 3.  Leases

In February 2016, the FASB issued ASU 2016-02, Leases (ASC 842) and its subsequent corresponding updates; which established a new lease accounting model that requires lessees to recognize a right-of-use asset and related lease liability for most leases having lease terms of more than 12 months. The company adopted ASC 842 effective January 1, 2019, using the optional transition method, thereby applying the new guidance at the effective date, without retrospective application to prior periods. The company elected practical expedients permitted under the transition guidance which allowed the company to not reassess under the new standard its prior conclusions regarding lease identification and classification. The company elected to use hindsight when determining the lease term. The company also elected the short-term lease exemption, and did not recognize right-of-use assets and lease liabilities for short-term leases, those with lease commencement date terms of 12 months or less. The company recognized right-of-use assets and lease liabilities of $76.3 million, with no impact on retained earnings, in the consolidated balance sheet on   January 1, 2019, and the standard did not have a significant impact on the company’s operating results or cash flows for the three-month period ended March 31, 2019.

The company has operating leases relating principally to transportation and other equipment, and some real estate. The company determines if an arrangement contains a lease at inception, which generally occurs when the arrangement identifies a specific asset that the company has the right to direct the use of and obtain substantially all of the economic benefit from use of the identified asset. Certain of our lease agreements contain rent escalation clauses (including fixed and index-based escalations), and options to extend or terminate the lease. For purposes of calculating operating lease obligations under the standard, the company's lease terms include options to extend the lease when it is reasonably certain that the company will exercise such option. The company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is the rate of interest the company could borrow on a collateralized basis over a similar term with similar payments. Operating lease expense is recognized on a straight-line basis over the lease terms.

Operating lease right-of-use assets and lease obligations included in the consolidated balance sheet at March 31, 2019, are as follows (in thousands):

Right-of-use assets under operating leases:
Other assets - noncurrent	$	72,219
Lease obligations under operating leases:
Accrued liabilities	$	16,378
Other liabilities - noncurrent		56,215
	$	72,593

The weighted average remaining lease term for our operating leases is 6.3 years and the weighted-average discount rate is 4.00% as of

March 31, 2019. Future operating lease liabilities as of March 31, 2019, for the next five years and thereafter are as follows (in thousands):

2019 - for the remaining nine months	$	14,565
2020		17,316
2021		14,165
2022		10,891
2023		7,924
Thereafter		20,503
Total undiscounted cash flows		85,364
Less imputed interest		(12,771)
Lease obligations under operating leases	$	72,593

Operating and short-term lease expense included in the consolidated statement of income was $4.7 million and $4.4 million, respectively, for the three-month period ended March 31, 2019. Cash paid related to operating lease obligations was $4.8 million for the three-month period ended

March 31, 2019. Variable lease costs were not material for the three-month period ended March 31, 2019.

7

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 4.  Earnings Per Share

Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company’s basic earnings per share. Common share equivalents represent potentially dilutive restricted stock units, deferred stock units, restricted stock, and performance awards, and are excluded from the computation in periods in which they have an anti-dilutive effect. There were no anti-dilutive common share equivalents as of or for the three months ended March 31, 2019 and 2018.

The following tables present a reconciliation of the numerators and the denominators of the company’s basic and diluted earnings per share computations for the three months ended March 31, 2019 and 2018 (in thousands, except per share data):

	Three Months Ended March 31,
	2019						2018
			Weighted						Weighted
			Average						Average
	Net Income		Shares		Per Share		Net Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount		(Numerator)		(Denominator)		Amount
Basic earnings per share	$	204,328		224,058	$	0.91	$	227,551		236,623	$	0.96
Dilutive common share equivalents		-		904				-		1,100
Diluted earnings per share	$	204,328		224,962	$	0.91	$	227,551		237,723	$	0.96

Note 5.  Inventories

Inventories are stated at lower of cost or net realizable value. Cost is determined using a weighted average cost method for raw materials and supplies, and on a first-in, first-out basis for other inventory. Inventory consisted of the following (in thousands):

	March 31,		December 31,
	2019		2018
Raw materials	$	828,733	$	810,766
Supplies		450,584		436,828
Work in progress		184,866		195,224
Finished goods		403,517		416,350
Total inventories	$	1,867,700	$	1,859,168

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STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 6.  Changes in Equity

The following tables provide a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to stockholders of Steel Dynamics, Inc., and equity and redeemable amounts attributable to noncontrolling interests (in thousands) for the three months ended

March 31, 2019 and 2018:

	Stockholders of Steel Dynamics, Inc.
									Accumulated
					Additional				Other						Redeemable
	Common		Treasury		Paid-In		Retained		Comprehensive		Noncontrolling		Total		Noncontrolling
	Stock		Stock		Capital		Earnings		Loss		Interests		Equity		Interests
Balances at December 31, 2018	$	645	$	(1,184,243)	$	1,160,048	$	3,958,320	$	301	$	(159,082)	$	3,775,989	$	111,240
Dividends declared		-		-		-		(53,504)		-		-		(53,504)		-
Noncontrolling investors of USS		-		-		-		-		-		-		-		28,690
Share repurchases		-		(84,308)		-		-		-		-		(84,308)		-
Equity-based compensation		-		6,714		91		(110)		-		-		6,695		-
Net income		-		-		-		204,328		-		499		204,827		-
Other comprehensive loss, net of tax		-		-		-		-		(171)		-		(171)		-
Balances at March 31, 2019	$	645	$	(1,261,837)	$	1,160,139	$	4,109,034	$	130	$	(158,583)	$	3,849,528	$	139,930
	Stockholders of Steel Dynamics, Inc.
									Accumulated
					Additional				Other						Redeemable
	Common		Treasury		Paid-In		Retained		Comprehensive		Noncontrolling		Total		Noncontrolling
	Stock		Stock		Capital		Earnings		Loss		Interests		Equity		Interests
Balances at December 31, 2017	$	644	$	(665,297)	$	1,141,534	$	2,874,693	$	-	$	(156,506)	$	3,195,068	$	111,240
Dividends declared		-		-		-		(44,269)		-		-		(44,269)		-
Share repurchases		-		(69,269)		-		-		-		-		(69,269)		-
Equity-based compensation		-		3,866		1,337		(71)		-		-		5,132		-
Comprehensive and net income (loss)		-		-		-		227,551		-		(2,076)		225,475		-
Balances at March 31, 2018	$	644	$	(730,700)	$	1,142,871	$	3,057,904	$	-	$	(158,582)	$	3,312,137	$	111,240

Note 7.  Derivative Financial Instruments

The company is exposed to certain risks relating to its ongoing business operations. The company utilizes derivative instruments to mitigate commodity margin risk, occasionally to mitigate foreign currency exchange rate risk, and have in the past to mitigate interest rate fluctuation risk. The company routinely enters into forward exchange traded futures and option contracts to manage the price risk associated with nonferrous metals inventory as well as purchases and sales of nonferrous and ferrous metals (primarily aluminum and copper). The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements. 

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STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 7.  Derivative Financial Instruments (Continued)

Commodity Futures Contracts. If the company is “long” on futures contracts, it means the company has more futures contracts purchased than futures contracts sold for the underlying commodity. If the company is “short” on a futures contract, it means the company has more futures contracts sold than futures contracts purchased for the underlying commodity. The following summarizes the company’s futures contract commitments as of March 31, 2019:

Commodity Futures	Long/Short	Metric Tons
Aluminum	Long	3,075
Aluminum	Short	5,925
Copper	Long	12,440
Copper	Short	22,759

The following summarizes the location and amounts of the fair values reported on the company’s consolidated balance sheets as of March 31, 2019, and December 31, 2018, and gains and losses related to derivatives included in the company’s statement of income for the three months ended March 31, 2019 and 2018 (in thousands):

		Asset Derivatives				Liability Derivatives
	Balance sheet	Fair Value				Fair Value
	location	March 31, 2019		December 31, 2018		March 31, 2019		December 31, 2018
Derivative instruments designated as hedges
Commodity futures	Other current assets	$	552	$	2,999	$	1,068	$	1,837
Derivative instruments not designated as hedges
Commodity futures	Other current assets		1,480		1,559		1,752		2,053
Total derivative instruments		$	2,032	$	4,558	$	2,820	$	3,890

The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements totaled $3.7 million at March 31, 2019, and $4.9 million at December 31, 2018, and are reflected in other current assets in the consolidated balance sheets.

		Amount of gain (loss) recognized					Location of gain	Amount of gain (loss) recognized
	Location of gain	in income on derivatives					(loss) recognized	in income on related hedged items
	(loss) recognized	for the three months ended				Hedged items in	in income on	for the three months ended
	in income on	March 31,		March 31,		fair value hedge	related hedged	March 31,		March 31,
	derivatives	2019		2018		relationships	items	2019		2018
Derivatives in fair value
hedging relationships
Commodity futures	Costs of goods sold	$	(1,453)	$	8,516	Firm commitments	Costs of goods sold	$	(1,499)	$	(793)
						Inventory	Costs of goods sold		721		(2,596)
Derivatives not designated								$	(778)	$	(3,389)
as hedging instruments
Commodity futures	Costs of goods sold	$	(4,077)	$	2,756

Derivatives accounted for as fair value hedges had ineffectiveness resulting in losses of $1.1 million and $101,000 during the three-month periods ended March 31, 2019, and 2018, respectively. Losses excluded from hedge effectiveness testing of $2.2 million increased cost of goods sold during the three-month period ended March 31, 2019. Gains excluded from hedge effectiveness testing of $5.0 million decreased cost of goods sold during the three-month period ended March 31, 2018.

Derivatives accounted for as cash flow hedges resulted in net gains of $58,000 recognized in other comprehensive income for the three-month period ended March 31, 2019. Net gains of $283,000 were reclassified from accumulated other comprehensive three-month period ended March 31, 2019. At March 31, 2019, the company expects to reclassify $170,000 of net gains on derivative instruments from accumulated other comprehensive income to earnings during the next 12 months due to the settlement of futures contracts.

10

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 8.  Fair Value Measurements

FASB accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. Levels within the hierarchy are defined as follows:

· Level 1—Unadjusted quoted prices for identical assets and liabilities in active markets;

· Level 2—Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable for the asset or liability, either directly or indirectly; and

· Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The following table sets forth financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheet and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of March 31, 2019, and December 31, 2018 (in thousands):    

			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
March 31, 2019
Short-term investments	$	173,723	$		$	173,723	$
Commodity futures – financial assets		2,032		-		2,032		-
Commodity futures – financial liabilities		2,820		-		2,820		-
December 31, 2018
Short-term investments	$	228,783	$	-	$	228,783	$	-
Commodity futures – financial assets		4,558		-		4,558		-
Commodity futures – financial liabilities		3,890		-		3,890		-

The carrying amounts of financial instruments including cash and equivalents approximate fair value (Level 1). The fair values of short-term investments and the commodity futures contracts are estimated by the use of quoted market prices, estimates obtained from brokers, and other appropriate valuation techniques based on references available (Level 2). The fair value of long-term debt, including current maturities, as determined by quoted market prices (Level 2), was approximately $2.5 billion and $2.4 billion at March 31, 2019 and December 31, 2018, respectively (with a corresponding carrying amount in the consolidated balance sheet of $2.5 billion at March 31, 2019 and $2.4 billion at   December 31, 2018).

Note 9.  Commitments and Contingencies

The company is involved in various routine litigation matters, including administrative proceedings, regulatory proceedings, governmental investigations, environmental matters, and commercial and construction contract disputes, none of which are expected to have a material impact on our financial condition, results of operations, or liquidity. 

Note 10.  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 smaller joint ventures, and our idle Minnesota ironmaking operations. 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.

11

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 10.  Segment Information (Continued)

The company’s segment results,including disaggregated revenue by segment to external, external non-United States, and other segment customers, are as follows (in thousands):

			Metals		Steel
For the three months ended	Steel		Recycling		Fabrication
March 31, 2019	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
External	$	2,044,491	$	285,725	$	228,429	$	113,248		$	-		$	2,671,893
External Non-U.S.		80,079		65,412		51		-			-			145,542
Other segments		75,595		385,908		189		248			(461,940)			-
		2,200,165		737,045		228,669		113,496			(461,940)			2,817,435
Operating income (loss)		309,078		16,962		20,623		(56,920)	(1)		2,099			291,842
Income (loss) before income taxes		293,019		15,505		19,351		(62,696)			1,884			267,063
Depreciation and amortization		62,512		11,439		2,967		3,256			-			80,174
Capital expenditures		43,676		6,642		1,993		2,125			-			54,436
As of March 31, 2019
Assets	$	5,378,536	$	982,844	$	407,576	$	1,170,832	(2)	$	(82,555)	(3)	$	7,857,233

Footnotes related to the three months ended March 31, 2019, segment results (in millions):
(1)	Corporate SG&A	$	(22.6)	(3)	Elimination of intra-company receivables	$	(59.5)
	Company-wide equity-based compensation		(9.0)		Elimination of intra-company debt		(10.8)
	Profit sharing		(23.0)		Other		(12.3)
	Other, net		(2.3)			$	(82.6)
		$	(56.9)
(2)	Cash and equivalents	$	756.9
	Short-term investments		153.7
	Accounts receivable		12.2
	Inventories		36.1
	Property, plant and equipment, net		152.6
	Intra-company debt		10.8
	Other		48.5
		$	1,170.8

12

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 10.  Segment Information (Continued)

			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

Footnotes related to the three months ended March 31, 2018, segment results (in millions):
(1)	Corporate SG&A	$	(15.7)
	Company-wide equity-based compensation		(8.5)
	Profit sharing		(25.6)
	Other, net		(5.6)
		$	(55.4)

13

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 11.  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.

Condensed Consolidating Balance Sheets (in thousands)
					Combined		Consolidating		Total
As of March 31, 2019	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Cash and equivalents	$	755,014	$	26,067	$	10,363	$	-	$	791,444
Short-term investments		153,723		20,000		-		-		173,723
Accounts receivable, net		344,209		1,727,028		71,953		(999,795)		1,143,395
Inventories		786,300		1,010,636		84,420		(13,656)		1,867,700
Other current assets		38,977		17,243		3,331		(6,923)		52,628
Total current assets		2,078,223		2,800,974		170,067		(1,020,374)		4,028,890
Property, plant and equipment, net		870,626		1,905,151		161,116		-		2,936,893
Intangible assets, net		-		263,315		-		-		263,315
Goodwill		-		428,798		101,918		-		530,716
Other assets, including investments in subs		2,934,875		59,075		5,850		(2,902,381)		97,419
Total assets	$	5,883,724	$	5,457,313	$	438,951	$	(3,922,755)	$	7,857,233
Accounts payable	$	197,481	$	376,400	$	94,697	$	(77,111)	$	591,467
Accrued expenses		200,512		275,807		17,763		(163,417)		330,665
Current maturities of long-term debt		809		1,116		104,574		(25,541)		80,958
Total current liabilities		398,802		653,323		217,034		(266,069)		1,003,090
Long-term debt		2,328,859		-		166,353		(140,785)		2,354,427
Other liabilities		(852,048)		1,398,528		33,483		(69,705)		510,258
Total liabilities		1,875,613		2,051,851		416,870		(476,559)		3,867,775
Redeemable noncontrolling interests		-		-		139,930		-		139,930
Common stock		645		1,727,859		15,016		(1,742,875)		645
Treasury stock		(1,261,837)		-		-		-		(1,261,837)
Additional paid-in-capital		1,160,139		683,048		787,572		(1,470,620)		1,160,139
Retained earnings (deficit)		4,109,034		994,555		(761,854)		(232,701)		4,109,034
Accumulated other comprehensive loss		130		-		-		-		130
Total Steel Dynamics, Inc. equity		4,008,111		3,405,462		40,734		(3,446,196)		4,008,111
Noncontrolling interests		-		-		(158,583)		-		(158,583)
Total equity		4,008,111		3,405,462		(117,849)		(3,446,196)		3,849,528
Total liabilities and equity	$	5,883,724	$	5,457,313	$	438,951	$	(3,922,755)	$	7,857,233

14

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 11.  Condensed Consolidating Information (Continued)

					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

15

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 11.  Condensed Consolidating Information (Continued)

Condensed Consolidating Statements of Operations (in thousands)
For the three months ended,					Combined		Consolidating		Total
March 31, 2019	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net sales	$	1,124,735	$	3,110,229	$	171,883	$	(1,589,412)	$	2,817,435
Costs of goods sold		905,995		2,865,989		165,460		(1,553,579)		2,383,865
Gross profit		218,740		244,240		6,423		(35,833)		433,570
Selling, general and administrative		69,006		74,583		3,930		(5,791)		141,728
Operating income		149,734		169,657		2,493		(30,042)		291,842
Interest expense, net of capitalized interest		18,654		11,766		3,214		(2,512)		31,122
Other (income) expense, net		(7,400)		(1,377)		(292)		2,726		(6,343)
Income (loss) before income taxes and
equity in net income of subsidiaries		138,480		159,268		(429)		(30,256)		267,063
Income taxes		30,764		38,534		103		(7,165)		62,236
		107,716		120,734		(532)		(23,091)		204,827
Equity in net income of subsidiaries		96,612		-		-		(96,612)		-
Net income attributable to noncontrolling interests		-		-		(499)		-		(499)
Net income (loss) attributable to Steel Dynamics, Inc.	$	204,328	$	120,734	$	(1,031)	$	(119,703)	$	204,328

For the three months ended,					Combined		Consolidating		Total
March 31, 2018	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net sales	$	1,036,674	$	2,823,129	$	152,587	$	(1,408,515)	$	2,603,875
Costs of goods sold		819,145		2,551,620		148,630		(1,378,936)		2,140,459
Gross profit		217,529		271,509		3,957		(29,579)		463,416
Selling, general and administrative		62,927		76,952		5,597		(5,457)		140,019
Operating income (loss)		154,602		194,557		(1,640)		(24,122)		323,397
Interest expense, net of capitalized interest		18,623		12,437		3,540		(2,704)		31,896
Other (income) expense, net		(5,203)		(1,697)		(273)		2,710		(4,463)
Income (loss) before income taxes and
equity in net income of subsidiaries		141,182		183,817		(4,907)		(24,128)		295,964
Income taxes		29,746		45,720		909		(5,886)		70,489
		111,436		138,097		(5,816)		(18,242)		225,475
Equity in net income of subsidiaries		116,115		-		-		(116,115)		-
Net loss attributable to noncontrolling interests		-		-		2,076		-		2,076
Net income (loss) attributable to Steel Dynamics, Inc.	$	227,551	$	138,097	$	(3,740)	$	(134,357)	$	227,551

16

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 11.  Condensed Consolidating Information (Continued)

Condensed Consolidating Statements of Cash Flows (in thousands)
For the three months ended,					Combined		Consolidating		Total
March 31, 2019	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net cash provided by (used in) operating activities	$	38,735	$	151,815	$	(4,520)	$	(4,477)	$	181,553
Net cash used in investing activities		(71,294)		(16,183)		(365)		(4,582)		(92,424)
Net cash provided by (used in) financing activities		(22,190)		(123,429)		10,256		9,059		(126,304)
Increase (decrease) in cash, cash equivalents and
restricted cash		(54,749)		12,203		5,371		-		(37,175)
Cash, cash equivalents, and restricted cash
at beginning of period		809,763		14,368		10,292		-		834,423
Cash, cash equivalents, and restricted cash
at end of period	$	755,014	$	26,571	$	15,663	$	-	$	797,248

For the three months ended,					Combined		Consolidating		Total
March 31, 2018	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net cash provided by operating activities	$	9,009	$	149,336	$	21,283	$	(1,693)	$	177,935
Net cash used in investing activities		(60,919)		(24,517)		(2,997)		(1,944)		(90,377)
Net cash provided by (used in) financing activities		18,920		(135,966)		(17,813)		3,637		(131,222)
Increase (decrease) in cash, cash equivalents and
restricted cash		(32,990)		(11,147)		473		-		(43,664)
Cash, cash equivalents, and restricted cash
at beginning of period		1,002,230		20,740		12,115		-		1,035,085
Cash, cash equivalents, and restricted cash
at end of period	$	969,240	$	9,593	$	12,588	$	-	$	991,421

17

ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This report contains some predictive statements about future events, including statements related to conditions in the steel and metallic scrap markets, Steel Dynamics’ revenues, costs of purchased materials, future profitability and earnings, and the operation of new or existing facilities. These statements, which we generally precede or accompany by such typical conditional words as "anticipate," "intend," "believe," "estimate," "plan," "seek," "project" or "expect," or by the words "may," "will," or "should," are intended to be made as “forward-looking,” subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) the effects of uncertain economic conditions; (2) cyclical and changing industrial demand; (3) changes in conditions in any of the steel or scrap-consuming sectors of the economy which affect demand for our products, including the strength of the non-residential and residential construction, automotive, manufacturing, appliance, pipe and tube, and other steel-consuming industries; (4) fluctuations in the cost of key raw materials and supplies (including steel scrap, iron units, zinc, graphite electrodes, and energy costs) and our ability to pass on any cost increases; (5) the impact of domestic and foreign import price competition; (6) unanticipated difficulties in integrating or starting up new or acquired businesses or assets; (7) risks and uncertainties involving product and/or technology development; and (8) occurrences of unexpected plant outages or equipment failures.

More specifically, we refer you to our more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors for the year ended December 31, 2018, in our quarterly reports on Form 10-Q, or in other reports which we from time to time file with the Securities and Exchange Commission. These reports are available publicly on the Securities and Exchange Commission website, www.sec.gov, and on our website, www.steeldynamics.com under “Investors – SEC Filings.”

Description of the Business

We are one of the largest domestic steel producers and metal recyclers in the United States based on current estimated steelmaking and coating capacity of approximately 13 million tons and actual metals recycling volumes. Our primary source of revenues is from the manufacture and sale of steel products, processing and sale of recycled ferrous and nonferrous metals, and fabrication and sale of steel joists and deck products. We have three reportable segments: steel operations, metals recycling operations, and steel fabrication operations.

Operating Statement Classifications

Net Sales.  Net sales from our operations are a factor of volumes shipped, product mix and related pricing. We charge premium prices for certain grades of steel, product dimensions, certain smaller volumes, and for value-added processing or coating of our steel products.  Except for the steel fabrication operations, we recognize revenues from sales and the allowance for estimated returns and claims from these sales at the point in time control of the product transfers to the customer, upon shipment or delivery. Our steel fabrication operations recognize revenues over time based on completed fabricated tons to date as a percentage of total tons required for each contract.  

Costs of Goods Sold.  Our costs of goods sold represent all direct and indirect costs associated with the manufacture of our products. The principal elements of these costs are scrap and scrap substitutes (which represent the most significant single component of our consolidated costs of goods sold), steel substrate, direct and indirect labor and related benefits, alloys, zinc, transportation and freight, repairs and maintenance, utilities such as electricity and natural gas, and depreciation.

Selling, General and Administrative Expenses.  Selling, general and administrative expenses consist of all costs associated with our sales, finance and accounting, and administrative departments. These costs include, among other items, labor and related benefits, professional services, insurance premiums, and propertytaxes. Company-wide profit sharing and amortization of intangible assets are each separately presented in the statement of operations.

Interest Expense, net of Capitalized Interest.  Interest expense consists of interest associated with our senior credit facilities and other debt net of interest costs that are required to be capitalized during the construction period of certain capital investment projects. 

Other Expense (Income), net.  Other income consists of interest income earned on our temporary cash deposits and short-term investments; any other non-operating income activity, including income from non-consolidated investments accounted for under the equity method. Other expense consists of any non-operating costs, such as certain acquisition and financing expenses.

18

Acquisition of United Steel Supply, LLC

On March 1, 2019, we purchased 75% of the equity interest of United Steel Supply, LLC (USS) for cash consideration of $93.4 million, subject to customary actual working capital purchase price adjustments.  Additionally, w have an option to purchase, and the sellers have the option to require us to purchase, the remaining 25% equity interest of USS in the future.  Headquartered in Austin, Texas,USS is a leading distributor of painted Galvalume® flat roll steel used for roofing and siding applications,with distribution centers strategically located in Mississippi, Indiana, Arkansas, and Oregon. USS provides us a new, complementary distribution channel and connects us to a rapidly growing industry segment with customers that do not traditionally purchase steel directly from a steel producer. USS’s operating results from and after March 1, 2019, are reflected in the company’s financial statements in the steel operations reporting segment.

Results Overview

Our consolidated results for the first quarter of 2019 were constrained by a challenging market for our Butler and Columbus Flat Roll Divisions. While product pricing improved in the first quarter of 2019 compared to the same period in 2018, sheet steel shipments from our steel mills decreased, resulting in a decline in steel segment operating income. Likewise, our metals recycling operations experienced decreased operating income in the first quarter of 2019 compared to 2018 largely due to slightly lower utilization rates at our steel mills, which resulted in decreased shipments and product pricing for our ferrous metals. The non-residential construction market remained strong, with increased average selling prices outpacing higher steel input costs in our steel fabrication segment.

Consolidated operating income decreased $31.6 million, or 10%, to $291.8 million for the first quarter 2019, compared to the first quarter 2018. First quarter 2019 net income attributable to Steel Dynamics, Inc. decreased $23.2 million, or 10%, to $204.3 million, compared to the first quarter 2018, due to decreased operating income as described above.

Segment Operating Results 2019 vs. 2018 (dollars in thousands)

	Three Months Ended March 31,
	2019		% Change		2018
Net sales:
Steel Operations Segment	$	2,200,165	11%	$	1,981,774
Metals Recycling Operations Segment		737,045	(2)%		752,766
Steel Fabrication Operations Segment		228,669	13%		201,703
Other		113,496	23%		92,618
		3,279,375			3,028,861
Intra-company		(461,940)			(424,986)
	$	2,817,435	8%	$	2,603,875
Operating income (loss):
Steel Operations Segment	$	309,078	(8)%	$	334,562
Metals Recycling Operations Segment		16,962	(31)%		24,715
Steel Fabrication Operations Segment		20,623	4%		19,791
Other		(56,920)	(3)%		(55,406)
		289,743			323,662
Intra-company		2,099			(265)
	$	291,842	(10)%	$	323,397

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Steel Operations Segment

Steel operations consist of our electric arc furnace steel mills, producing sheet and long products steel from ferrous scrap and scrap substitutes, utilizing continuous casting and automated rolling mills, with numerous downstream processing and coating lines, as well as IDI, our liquid pig iron production facility that supplies solely the Butler Flat Roll Division. Our steel operations sell a diverse portfolio of sheet and long products directly to end-users, steel fabricators, and service centers. These products are used in a wide variety of industry sectors, including the construction, automotive, manufacturing, transportation, heavy equipment and agriculture, and pipe and tube (including OCTG) markets. Steel operations accounted for 75% and 74% of our consolidated external net sales during the first quarter of 2019 and 2018, respectively.

Steel Operations Segment Shipments (tons):

	Three Months Ended March 31,
	2019	% Change	2018
Total shipments	2,684,411	6%	2,534,644
Intra-segment shipments	(247,403)		(121,653)
Steel Operations Segment shipments	2,437,008	1%	2,412,991
External shipments	2,347,209	1%	2,327,515

Segment Results 2019 vs. 2018

Overall domestic steel demand remained strong during the first quarter of 2019, with continued strength in the automotive, energy and other industrial sectors. Steel operations segment shipments increased 1% in the first quarter 2019, as compared to the same period in 2018,  with the acquisitions of Heartland Flat Roll Division (June 29, 2018) and USS (March 1, 2019). Net sales for the steel operations increased 11% in the first quarter 2019 when compared to the same period in 2018, due primarily to the additions of Heartland and USS, and a 10% increase in overall steel selling prices to $899 per ton. Our steel mill utilization rate averaged 90% for the first quarter 2019, as compared to 94% in the first quarter 2018.

Metallic raw materials used in our electric arc furnaces represent our single most significant steel manufacturing cost, generally comprising approximately 60% of our steel mill operations’ manufacturing costs. Our metallic raw material cost per net ton consumed in our steel operations increased $17, or 5%, in the first quarter 2019, compared to the same period in 2018, consistent with overall increased domestic scrap pricing.

As a result of average selling prices increasing more than scrap costs, metal spread (which we define as the difference between average selling prices and the cost of ferrous scrap consumed in our steel mills) increased 13% in the first quarter 2019 compared to the first quarter 2018. In spite of this metal spread expansion, operating income for the steel operations decreased 8%, to $309.1 million, in the first quarter 2019, compared to the

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same period in 2018, due primarily to decreased shipments at our Butler and Columbus Flat Roll Divisions. Imports of sheet steel into the United States began to increase in late 2018 and into the first quarter of 2019 due to historically high selling prices, presenting a headwind to our flat roll mills, as well as beginning to put downward pressure on average pricing.

Metals Recycling Operations Segment

Metals recycling operations consists solely of OmniSource and includes both ferrous and nonferrous scrap metal processing, transportation, marketing, and brokerage services, strategically located primarily in close proximity to our steel mills and other end-user scrap consumers throughout the eastern half of the United States. In addition, OmniSource designs, installs, and manages customized scrap management programs for industrial manufacturing companies at hundreds of locations throughout North America. Our steel mills utilize a large portion (increasing from 65% to 67% for the periods presented) of the ferrous scrap sold by OmniSource as raw material in our steelmaking operations, and the remainder is sold to other consumers, such as other steel manufacturers and foundries. Our metals recycling operations accounted for 13% and 15% of our consolidated external net sales during first quarters of2019 and 2018, respectively.

Metals Recycling Operations Shipments:

	Three Months Ended March 31,
	2019	% Change	2018
Ferrous metal (gross tons)
Total	1,171,361	(7)%	1,256,899
Inter-company	(788,520)		(819,909)
External shipments	382,841	(12)%	436,990
Nonferrous metals (thousands of pounds)
Total	292,038	8%	271,628
Inter-company	(39,108)		(20,855)
External shipments	252,930	1%	250,773

Segment Results 2019 vs. 2018

Our metals recycling operations net salesdecreased 2% during the first quarter of 2019 compared to the same period in 2018, driven primarily by decreased ferrous metals shipments and average selling prices. Ferrous shipments to our own steel mills decreased by 4% in the first quarter 2019, compared to the same period in 2018, as our steel mill utilization percentage decreased slightly from prior year. Ferrous scrap average selling prices decreased 3% during the first quarter 2019 compared to the same period in 2018, while nonferrous average selling prices increased 4%. Ferrous metal spread (which we define as the difference between average selling prices and the cost of purchased scrap) decreased 11%, as selling prices decreased more than unprocessed scrap procurement costs, while nonferrous metal spread decreased 3%. Metals recycling operations operating income decreased 31% to $17.0 million in the first quarter 2019 compared to the first quarter 2018 operating income of $24.7 million, due to metal spread contraction and decreased ferrous shipments.

Steel Fabrication Operations Segment

Steel fabrication operations include our New Millennium Building Systems joist and deck plants located throughout the United States and in Northern Mexico. Revenues from these plants are generated from the fabrication of steel joists, trusses, girders and steel deck used within the non-residential construction industry. Steel fabrication operations accounted for 8% of our consolidated external net sales during the first quarters of2019 and 2018.

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Segment Results 2019 vs. 2018

Net sales for the steel fabrication operations increased $27.0 million, or 13%, during the first quarter 2019, compared to the same period in 2018, as average selling prices increased $230 per ton, or 17%, while shipments decreased 3%. Our steel fabrication operations continue to leverage our national operating footprint to sustain market share. Market demand and order backlogs continue to be strong for non-residential construction project development; however, severe weather and other construction delays during the first quarter 2019 restricted shipments somewhat.

The purchase of various steel products is the largest single cost of production for our steel fabrication operations, generally representing approximately two-thirds of the total cost of manufacturing. While the average cost of steel consumed increased in the first quarter 2019, as compared to the same period in 2018 consistent with increased steel selling prices discussed in the steel operations results, the 17% average selling price increase was more significant. As a result, metal spread (which we define as the difference between average selling prices and the cost of purchased steel) increased 7% in the first quarter 2019 compared to the same period in 2018. Operating income increased 4% to $20.6 million in the first quarter 2019 compared to the same period in 2018, due to the increases in metal spread more than offsetting the slight decrease in shipments.

Other Operations

First Quarter Consolidated Results 2019 vs. 2018

Selling, General and Administrative Expenses. Selling, general and administrative expenses of $111.0 million during the first quarter 2019 increased 4% from $106.4 million during the first quarter 2018, representing 3.9% and 4.1% of net sales, respectively. Profit sharing expense during the first quarter of 2019 of $23.7 million was down 11% from the $26.7 million during the same period in 2018, consistent with decreases in income before income taxes.

Interest Expense, net of Capitalized Interest.  During the first quarter 2019, interest expense of $31.1 million was comparable to the $31.9 million during the first quarter of 2018, on consistent debt levels.

Income Tax Expense.  First quarter 2019 income tax expense of  $62.2 million at an effective income tax rate of 23.3%, is comparable to the  $70.5 million at an effective income tax rate of 23.8% during the first quarter 2018.

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Liquidity and Capital Resources

Capital Resources and Long‑term Debt. Our business is capital intensive and requires substantial expenditures for, among other things, the purchase and maintenance of equipment used in our steel, metals recycling, and steel fabrication operations, and to remain in compliance with environmental laws. Our short-term and long-term liquidity needs arise primarily from working capital requirements, capital expenditures, principal and interest payments related to our outstanding indebtedness, dividends to our shareholders, stock repurchases, and acquisitions. We have met these liquidity requirements primarily with cash provided by operations and long-term borrowings, and we also have availability under our Revolver. Our liquidity at March 31, 2019, is as follows (in thousands):

Cash and equivalents	$	791,444
Short-term investments		173,723
Revolver availability		1,188,161
Total liquidity	$	2,153,328

Our total outstanding debt increased $58.7 million during the first quarter of 2019 primarily due to revolving debt assumed in conjunction with our acquisitionof USS. Our total long-term debt to capitalization ratio (representing our long-term debt, including current maturities, divided by the sum of our long-term debt, redeemable noncontrolling interests, and our total stockholders’ equity) was 37.9% at March 31, 2019, and December 31, 2018.

Our senior secured credit facility (Facility), which provides a $1.2 billion Revolver, was renewed and extended in June 2018 to extend maturity to June 2023. Subject to certain conditions, we have the opportunity to increase the Revolver size by at least $750.0 million. The Facility is guaranteed by certain of our subsidiaries; and is secured by substantially all of our and our wholly-owned subsidiaries’ receivables and inventories, and by pledges of all shares of our wholly-owned subsidiaries’ capital stock or other equity interests, and intercompany debt held by us as collateral. The Revolver is available to fund working capital, capital expenditures, and other general corporate purposes. The Facility contains financial covenants and other covenants pertaining to our ability (which may under certain circumstances be limited) to make capital expenditures; incur indebtedness; permit liens on property; enter into transactions with affiliates; make restricted payments or investments; enter into mergers, acquisitions or consolidations; conduct asset sales; pay dividends or distributions, or enter into other specified transactions and activities. Our ability to borrow funds within the terms of the Revolver is dependent upon our continued compliance with the financial and other covenants. At March 31, 2019, we had $1.2 billion of availability on the Revolver, $11.8 million of outstanding letters of credit and other obligations which reduce availability, and there were no borrowings outstanding.

The financial covenants under our Facility state that we must maintain an interest coverage ratio of not less than 2.50:1.00. Our interest coverage ratio is calculated by dividing our last-twelve-months (LTM) consolidated adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and certain other non-cash transactions as allowed in the Facility) by our LTM gross interest expense, less amortization of financing fees. In addition, a net debt (as defined in the Facility) to LTM consolidated adjusted EBITDA (net debt leverage ratio) of not more than 5.00:1.00 must be maintained. If the net debt leverage ratio exceeds 3.50:1:00 at any time, our ability to make certain payments as defined in the Facility (which includes cash dividends to stockholders and share purchases, among other things), is limited. At March 31, 2019, our interest coverage ratio and net debt leverage ratio were 16.81:1.00 and 0.87:1.00, respectively. We were, therefore, in compliance with these covenants at March 31, 2019, and we anticipate we will continue to be in compliance during the next twelve months.  

Working Capital.We generated cash flow from operations of $181.6 million in the first quarter of 2019. Operational working capital (representing amounts invested in trade receivables and inventories, less current liabilities other than income taxes payable and debt) increased $181.7 million, excluding the effect of acquired USS working capital, to $2.1 billion at March 31, 2019, due primarily to decreased accrued expenses, as our 2018 accrued profit sharing was paid in the first quarter of 2019.

Capital Investments.During the first quarter of 2019, we invested $54.4 million in property, plant and equipment, primarily within our steel operations segment, compared with $50.6 million invested during the same period in 2018.

Cash Dividends.As a reflection of continued confidence in our current and future cash flow generation ability and financial position, we increased our quarterly cash dividend by 28% to $0.2400 per share in the first quarter 2019 (from $0.1875 per share in 2018), resulting in declared cash dividends of $53.5 million during the first quarter of 2019, compared to $44.3 million during the same period in 2018. We paid cash dividends of $42.2 million and $36.8 million during the first quarters of 2019 and 2018, respectively. Our board of directors, along with executive management, approves the payment of dividends on a quarterly basis. The determination to pay cash dividends in the future is at the discretion of our board of directors, after taking into account various factors, including our financial condition, results of operations, outstanding indebtedness, current and anticipated cash needs and growth plans. In addition, the terms of our Facility and the indentures relating to our senior notes may restrict the amount of cash dividends we can pay.

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Other.In August 2018 our board of directors authorized a share repurchase program of up to $750 million of our common stock. Under the share repurchase program, purchases will take place, as and when, we determine in open market or private transactions made based upon the market price of our common stock, the nature of other investment opportunities or growth projects, our cash flows from operations, and general economic conditions.  The share repurchase program does not require us to acquire any specific number of shares, and may be modified, suspended, extended or terminated by us at any time. We acquired 2.3 million shares of our common stock for $84.3 million in the first quarter of 2019 pursuant to this program, leaving $314.8 million remaining available to purchase under the program. See Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds for additional information.

Our ability to meet our debt service obligations and reduce our total debt will depend upon our future performance which, in turn, will depend upon general economic, financial and business conditions, along with competition, legislation and regulatory factors that are largely beyond our control. In addition, we cannot assure that our operating results, cash flows, access to credit markets and capital resources will be sufficient for repayment of our indebtedness in the future. We believe that based upon current levels of operations and anticipated growth, cash flows from operations, together with other available sources of funds, including if necessary borrowings under our Revolver through its term, will be adequate for the next twelve months for making required payments of principal and interest on our indebtedness, funding working capital requirements, and anticipated capital expenditures.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Commodity Risk

In the normal course of business, we are exposed to the market risk and price fluctuations related to the sale of our products and to the purchase of raw materials used in our operations, such as metallic raw materials, electricity, natural gas and its transportation services, fuel, air products, zinc, and electrodes. Our risk strategy associated with product sales has generally been to obtain competitive prices for our products and to allow operating results to reflect market price movements dictated by supply and demand.

Our risk strategy associated with the purchase of raw materials utilized within our operations has generally been to make some commitments with suppliers relating to future expected requirements for some commodities such as electricity, natural gas and its transportation services, fuel, air products, zinc, and electrodes. Certain of these commitments contain provisions which require us to “take or pay” for specified quantities without regard to actual usage for periods of up to 5 years for physical commodity requirements and commodity transportation requirements, and for up to 13 years for air products. We utilized such “take or pay” requirements during the past three years under these contracts, except for certain air products at our idle Minnesota ironmaking operations. We believe that production requirements will be such that consumption of the products or services purchased under these commitments will occur in the normal production process, other than certain air products related to our Minnesota ironmaking operations during the idle period. We also purchase electricity consumed at our Butler Flat Roll Division pursuant to a contract which extends through December 2020, which establishes an agreed fixed-rate energy charge per Mill/kWh consumed for each year through the expiration of the agreement.

We have certain fixed price contracts with various customers and suppliers for future delivery of nonferrous metals. Our risk strategy has been to enter into base metal financial contracts with the goal to protect the profit margin, within certain parameters, that was contemplated when we entered into the transaction with the customer or vendor. At March 31, 2019, we had a cumulative unrealized loss associated with these financial contracts of $788,000, substantially all of which have a settlement date within the next twelve months. We believe the customer contracts associated with the financial contracts will be fully consummated.

ITEM 4.CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

As required, we carried out an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act). Based on this evaluation, our principal executive officer and principal financial officer concluded that, as of March 31, 2019, the end of the period covered by this quarterly report, our disclosure controls and procedures were designed to provide and were effective to provide reasonable assurance that the information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our principal executive and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

(b) Changes in Internal Controls Over Financial Reporting

No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the fiscal quarter ended March 31, 2019, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. 

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PART II OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

We are involved in various routine litigation matters, including administrative proceedings, regulatory proceedings, governmental investigations, environmental matters, and commercial and construction contract disputes, none of which are expected to have a material impact on our financial condition, results of operations, or liquidity. 

We may also be involved from time to time in various governmental investigations, regulatory proceedings or judicial actions seeking penalties, injunctive relief, and/or remediation under federal, state and local environmental laws and regulations. The United States EPA has conducted such investigations and proceedings involving us, in some instances along with state environmental regulators, under various environmental laws, including RCRA, CERCLA, the Clean Water Act and the Clean Air Act. Some of these matters have resulted in fines or penalties, for which a total of $451,000 is recorded in our financial statements as of March 31, 2019.

ITEM 1A.RISK FACTORS

No material changes have occurred to the indicated risk factors as disclosed in our Annual Report on Form 10-K for the year ended

December 31, 2018.

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(c) Issuer Purchases of Equity Securities

We purchased the following equity securities registered by us pursuant to Section 12 of the Exchange Act during the three months ended
March 31, 2019.

Period	Total Number of Shares Purchased	Average Price Paid per Share			Total Number of Shares Purchased as Part of Publicly Announced Program (1)		Maximum Dollar Value of Shares That May Yet be Purchased Under the Program (in thousands)
Quarter ended March 31, 2019
January 1 - 31 (1)	234,274		$	30.19		234,274		$	392,075
February 1 - 28 (1)	1,469,445			37.58		1,469,445			336,852
March 1 - 31 (1)	595,422			36.97		595,422			314,840
	2,299,141					2,299,141

(1) On September 4, 2018, we announced that our board of directors had authorized a share purchase program of up to $750.0 million of our common stock.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.MINE SAFETY DISCLOSURES

Information required to be furnished pursuant to Item 4 concerning mine safety disclosure matters, if applicable, by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104), is included in Exhibit 95 to this quarterly report. There are no mine safety disclosures to report for the three months ended March 31, 2019, therefore, no Exhibit 95 is required.

ITEM 5.OTHER INFORMATION

None.

ITEM 6.EXHIBITS

Reference is made to the Exhibit Index preceding the signature page hereto, which Exhibit Index is hereby incorporated into this item.

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EXHIBIT INDEX
Articles of Incorporation
3.1	Amended and Restated Articles of Incorporation of Steel Dynamics, Inc., reflecting all amendments thereto through May 17, 2018, incorporated herein by reference from Exhibit 3.1e to our Form 10-Q filed August 9, 2018.
3.2	Amended and Restated Bylaws of Steel Dynamics, Inc., reflecting all amendments thereto through October 17, 2018, incorporated herein by reference from Exhibit 3.2d to our Form 10-Q filed November 7, 2018.
Executive Officer Certifications
31.1*	Certification of Chief Executive Officer required by Item 307 of Regulation S-K as promulgated by the Securities and Exchange Commission and pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer required by Item 307 of Regulation S-K as promulgated by the Securities and Exchange Commission and pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002.
32.1*	Certification of Chief Executive Officer Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002.
32.2*	Certification of Chief Financial Officer Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002.
Other
95**	Mine Safety Disclosures.
XBRL Documents
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Document
101.DEF*	XBRL Taxonomy Definition Document
101.LAB*	XBRL Taxonomy Extension Label Document
101.PRE*	XBRL Taxonomy Presentation Document

_____________________________________________________________________________________________________________

*Filed concurrently herewith

**Inapplicable for purposes of this report

26

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

May 10, 2019

STEEL DYNAMICS, INC.
By:	/s/ Theresa E. Wagler
	Theresa E. Wagler
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)

27

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Mark D. Millett, certify that:

1.I have reviewed this quarterly report for the period ended March 31, 2019, on Form 10‑Q of Steel Dynamics, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Mark D. Millett

Mark D. Millett

Chief Executive Officer

(Principal Executive Officer)

May 10, 2019

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Theresa E. Wagler, certify that:

1.I have reviewed this quarterly report for the period ended March 31, 2019, on Form 10‑Q of Steel Dynamics, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Theresa E. Wagler

Theresa E. Wagler

Executive Vice President and Chief Financial Officer

(Principal Financial Officer and Principal Accounting Officer)

May 10, 2019

EX-32.1

EXHIBIT 32.1

Chief Executive Officer Certification

Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Steel Dynamics, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2019 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, I, Mark D. Millett, Chief Executive Officer of Steel Dynamics, Inc., certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Mark D. Millett                        

Mark D. Millett

Chief Executive Officer

(Principal Executive Officer)

May 10, 2019

A signed original of this written statement required by Section 906 has been provided to Steel Dynamics, Inc. and will be retained by Steel Dynamics, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

Chief Financial Officer Certification

Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Steel Dynamics, Inc. (the “Company”) on Form 10-Q for the period ended March 31, 2019 (the “Report”), as filed with the Securities and Exchange Commission on the date hereof, I, Theresa E. Wagler, Executive Vice President and Chief Financial Officer of Steel Dynamics, Inc., certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Theresa E. Wagler                             

Theresa E. Wagler

Executive Vice President and Chief Financial Officer

(Principal Financial Officer and Principal Accounting Officer)

May 10, 2019

A signed original of this written statement required by Section 906 has been provided to Steel Dynamics, Inc. and will be retained by Steel Dynamics, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 01, 2019
Document And Entity Information Abstract
Entity Registrant Name	STEEL DYNAMICS INC
Entity Central Index Key	0001022671
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		222,245,142
Entity Small Business	false
Entity Emerging Growth Company	false

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets
Cash and equivalents	$ 791,444	$ 828,220
Short-term investments	173,723	228,783
Accounts receivable, net	1,141,038	1,040,220
Accounts receivable-related parties	2,357	3,536
Inventories	1,867,700	1,859,168
Other current assets	52,628	72,730
Total current assets	4,028,890	4,032,657
Property, plant and equipment, net	2,936,893	2,945,767
Intangible assets, net	263,315	270,328
Goodwill	530,716	429,645
Other assets	97,419	25,166
Total assets	7,857,233	7,703,563
Current liabilities
Accounts payable	582,284	536,743
Accounts payable-related parties	9,183	14,011
Income taxes payable	26,896	7,468
Accrued payroll and benefits	114,575	264,542
Accrued interest	47,955	25,526
Accrued expenses	141,239	146,613
Current maturities of long-term debt	80,958	24,234
Total current liabilities	1,003,090	1,019,137
Long-term debt	2,354,427	2,352,489
Deferred income taxes	447,087	435,838
Other liabilities	63,171	8,870
Total liabilities	3,867,775	3,816,334
Commitments and contingencies
Redeemable noncontrolling interests	139,930	111,240
Equity
Common stock voting, $.0025 par value; 900,000,000 shares authorized; 265,552,825 and 265,822,402 shares issued; and 222,931,285 and 225,272,174 shares outstanding, as of March 31, 2019 and December 31, 2018, respectively	645	645
Treasury stock, at cost; 42,621,540 and 40,550,228 shares, as of March 31, 2019 and December 31, 2018, respectively	(1,261,837)	(1,184,243)
Additional paid-in capital	1,160,139	1,160,048
Retained earnings	4,109,034	3,958,320
Accumulated other comprehensive income	130	301
Total Steel Dynamics, Inc. equity	4,008,111	3,935,071
Noncontrolling interests	(158,583)	(159,082)
Total equity	3,849,528	3,775,989
Total liabilities and equity	$ 7,857,233	$ 7,703,563

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
CONSOLIDATED BALANCE SHEETS
Common stock voting, par value (in dollars per share)	$ 0.0025	$ 0.0025
Common stock voting, shares authorized (in shares)	900,000,000	900,000,000
Common stock voting, shares issued (in shares)	265,552,825	265,822,402
Common stock voting, shares outstanding (in shares)	222,931,285	225,272,174
Treasury stock, shares (in shares)	42,621,540	40,550,228

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CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net sales
Unrelated parties	$ 2,814,486	$ 2,597,312
Related parties	2,949	6,563
Total net sales	2,817,435	2,603,875
Costs of goods sold	2,383,865	2,140,459
Gross profit	433,570	463,416
Selling, general and administrative expenses	111,038	106,431
Profit sharing	23,677	26,662
Amortization of intangible assets	7,013	6,926
Operating income	291,842	323,397
Interest expense, net of capitalized interest	31,122	31,896
Other (income) expense, net	(6,343)	(4,463)
Income before income taxes	267,063	295,964
Income tax expense	62,236	70,489
Net income	204,827	225,475
Net (income) loss attributable to noncontrolling interests	(499)	2,076
Net income attributable to Steel Dynamics, Inc.	$ 204,328	$ 227,551
Basic earnings per share attributable to Steel Dynamics, Inc. stockholders	$ 0.91	$ 0.96
Weighted average common shares outstanding (in shares)	224,058	236,623
Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive (in dollars per share)	$ 0.91	$ 0.96
Weighted average common shares and share equivalents outstanding (in shares)	224,962	237,723
Dividends declared per share (in dollars per share)	$ 0.2400	$ 0.1875

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 204,827	$ 225,475
Other comprehensive loss - net unrealized loss on cash flow hedging derivatives, net of income tax benefit of $54 for the three months ended March 31, 2019	(171)
Comprehensive income	204,656	225,475
Comprehensive (income) loss attributable to noncontrolling interests	(499)	2,076
Comprehensive income attributable to Steel Dynamics, Inc.	$ 204,157	$ 227,551

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Statement of Comprehensive Income [Abstract]
Other comprehensive income (loss), net of income tax expense (benefit)	$ 54

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities:
Net income	$ 204,827	$ 225,475
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	80,174	76,135
Equity-based compensation	15,308	12,841
Deferred income taxes	12,091	9,545
Other adjustments	728	30
Changes in certain assets and liabilities:
Accounts receivable	(61,062)	(118,818)
Inventories	39,469	(80,711)
Other assets	301	(105)
Accounts payable	3,206	66,332
Income taxes receivable/payable	49,850	63,962
Accrued expenses	(163,339)	(76,751)
Net cash provided by operating activities	181,553	177,935
Investing activities:
Purchases of property, plant and equipment	(54,436)	(50,606)
Purchases of short term investments	(49,677)	(40,000)
Proceeds from maturities of short-term investments	104,737
Acquisition of business, net of cash and restricted cash acquired	(93,412)
Other investing activities	364	229
Net cash used in investing activities	(92,424)	(90,377)
Financing activities:
Issuance of current and long-term debt	121,234	93,058
Repayment of current and long-term debt	(115,271)	(113,034)
Dividends paid	(42,239)	(36,797)
Purchases of treasury stock	(84,308)	(69,269)
Other financing activities	(5,720)	(5,180)
Net cash used in financing activities	(126,304)	(131,222)
Decrease in cash, cash equivalents, and restricted cash	(37,175)	(43,664)
Cash, cash equivalents, and restricted cash at beginning of period	834,423	1,035,085
Cash, cash equivalents, and restricted cash at end of period	797,248	991,421
Supplemental disclosure information:
Cash paid for interest	8,606	8,629
Cash paid (received) for income taxes, net	$ 1,839	$ (1,045)

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Description of the Business and Significant Accounting Policies

3 Months Ended

Mar. 31, 2019

Description of the Business and Significant Accounting Policies

Description of the Business and Significant Accounting Policies

Note 1.  Description of the Business and Significant Accounting Policies

Description of the Business

Steel Dynamics, Inc. (SDI), together with its subsidiaries (the company), is a domestic manufacturer of steel products and metals recycler. The company has three reportable segments: steel operations, metals recycling operations, and steel fabrication operations.

Steel Operations Segment.  Steel operations include the company’s Butler Flat Roll Division, Columbus Flat Roll Division, The Techs galvanizing lines, Heartland Flat Roll Division, United Steel Supply (acquired 75% equity interest March 1, 2019), Structural and Rail Division, Engineered Bar Products Division, Vulcan Threaded Products, Inc., Roanoke Bar Division, Steel of West Virginia, and Iron Dynamics, a liquid pig iron (scrap substitute) production facility that supplies solely the Butler Flat Roll Division. These operations include electric arc furnace steel mills, producing steel from ferrous scrap and scrap substitutes, utilizing continuous casting, automated rolling mills, with several downstream coating and bar processing lines. Steel operations accounted for 75% and 74% of the company’s consolidated external net sales during the three months ended March 31, 2019 and 2018, respectively.

Metals Recycling Operations Segment. Metals recycling operations consists solely of OmniSource Corporation (OmniSource), and includes both ferrous and nonferrous processing, transportation, marketing, brokerage, and scrap management services. Metals recycling operations accounted for 13% and 15% of the company’s consolidated external net sales during the three months ended March 31, 2019 and 2018, respectively.

Steel Fabrication Operations Segment.  Steel fabrication operations include the company’s New Millennium Building Systems’ joist and deck plants located throughout the United States, and in Northern Mexico. Revenues from these plants are generated from the fabrication of trusses, girders, steel joists and steel deck used within the non-residential construction industry.   Steel fabrication operations accounted for 8% of the company’s consolidated external net sales during the three months ended March 31, 2019 and 2018.

Other. Other operations consists of subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of smaller joint ventures, and the idle Minnesota ironmaking operations. Also included in “Other” are certain unallocated corporate accounts, such as the company’s senior secured credit facility, senior notes, certain other investments and certain profit sharing expenses.

Significant Accounting Policies

Principles of Consolidation.  The consolidated financial statements include the accounts of SDI, together with its wholly- and majority-owned/ controlled subsidiaries, after elimination of intercompany accounts and transactions. Noncontrolling interests represent the noncontrolling owner’s proportionate share in the equity, income, or losses of the company’s majority-owned/controlled consolidated subsidiaries. 

Use of Estimates. These consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, and accordingly, include amounts that require management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the notes thereto. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment, intangible assets, and goodwill; valuation allowances for trade receivables, inventories and deferred income tax assets; unrecognized tax benefits; potential environmental liabilities; and litigation claims and settlements. Actual results may differ from these estimates and assumptions. 

In the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the interim period results. These consolidated financial statements and notes should be read in conjunction with the audited financial statements and notes thereto included in the company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Cash and Equivalents. And Restricted Cash

Cash and equivalents include all highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash is primarily funds held in escrow as required by various insurance and government organizations. The balance of cash, cash equivalents and restricted cash in the consolidated statements of cash flows includes restricted cash of $5.8 million, $6.2 million, $5.6 million, and $6.4 million at March 31, 2019, December 31, 2018, March 31, 2018, and December 31, 2017, respectively, which are recorded in Other Assets (noncurrent) in the company’s consolidated balance sheets.

Note 1.  Description of the Business and Significant Accounting Policies (Continued)

Goodwill

The company’s goodwill consisted of the following reporting units at March 31, 2019, and December 31, 2018, (in thousands):

	March 31,		December 31,
	2019		2018
Steel Operations Segment
Columbus Flat Roll Division	$	19,682	$	19,682
The Techs		142,783		142,783
Heartland Flat Roll Division		46,143		46,143
United Steel Supply		101,918		-
Vulcan Threaded Products		7,824		7,824
Roanoke Bar Division		29,041		29,041
Metals Recycling Operations Segment – OmniSource		181,400		182,247
Steel Fabrication Operations Segment – New Millennium Building Systems		1,925		1,925
	$	530,716	$	429,645

The company acquired a 75% equity interest in United Steel Supply on March 1, 2019 (refer to Note 2 Acquisition – United Steel Supply, LLC), resulting in a preliminary purchase price allocation in which $101.9 million of goodwill was recorded. OmniSource goodwill decreased $847,000 from December 31, 2018 to March 31, 2019, in recognition of the 2019 tax benefit related to the normal amortization of the component of OmniSource tax-deductible goodwill in excess of book goodwill.

Recently Issued Accounting Standards

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: which requires an entity to use a forward-looking expected loss model versus the current incurred loss model for most financial instruments, including accounts receivable.  This new guidance is effective for annual and interim periods beginning after December 15, 2019, but can be early adopted.  The company is currently evaluating the impact ASU 2016-13 will have in its consolidated financial statements and related disclosure.

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Acquisition - United Steel Supply

3 Months Ended

Mar. 31, 2019

Acquisition - United Steel Supply

Acquisition - United Steel Supply

Note 2. Acquisition – United Steel Supply, LLC

On March 1, 2019, the company purchased 75% of the equity interest of United Steel Supply, LLC (USS) for cash consideration of $93.4 million, subject to customary actual working capital purchase price adjustments. Additionally, the company has an option to purchase, and the sellers have the option to require the company to purchase, the remaining 25% equity interest of USS in the future.  Headquartered in Austin, Texas, USS is a leading distributor of painted Galvalume® flat roll steel used for roofing and siding applications, with distribution centers strategically located in Mississippi, Indiana, Arkansas, and Oregon. USS provides the company a new, complementary distribution channel and connects it to a rapidly growing industry segment with customers that do not traditionally purchase steel directly from a steel producer.  USS’s operating results from and after March 1, 2019, are reflected in the company’s financial statements in the steel operations reporting segment.

The aggregate purchase price was preliminarily allocated to the opening balance sheet of USS as of March 1, 2019. The following initial allocation of the purchase price (in thousands) is preliminary based on the information available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed.  The accounting for the acquisition has not yet been completed because the company has not finalized the valuations of the acquired assets, assumed liabilities and identifiable intangible assets, if any, including goodwill. 

Current assets, net of cash acquired	$	94,020
Property, plant & equipment		7,388
Intangible assets and goodwill		101,918
Total assets acquired		203,326
Liabilities assumed		81,224
Redeemable noncontrolling interest		28,690
Net cash consideration	$	93,412

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Leases

3 Months Ended

Mar. 31, 2019

Leases

Leases

Note 3.  Leases

In February 2016, the FASB issued ASU 2016-02, Leases (ASC 842) and its subsequent corresponding updates; which established a new lease accounting model that requires lessees to recognize a right-of-use asset and related lease liability for most leases having lease terms of more than 12 months. The company adopted ASC 842 effective January 1, 2019, using the optional transition method, thereby applying the new guidance at the effective date, without retrospective application to prior periods. The company elected practical expedients permitted under the transition guidance which allowed the company to not reassess under the new standard its prior conclusions regarding lease identification and classification. The company elected to use hindsight when determining the lease term. The company also elected the short-term lease exemption, and did not recognize right-of-use assets and lease liabilities for short-term leases, those with lease commencement date terms of 12 months or less. The company recognized right-of-use assets and lease liabilities of $76.3 million, with no impact on retained earnings, in the consolidated balance sheet on   January 1, 2019, and the standard did not have a significant impact on the company’s operating results or cash flows for the three-month period ended March 31, 2019.

The company has operating leases relating principally to transportation and other equipment, and some real estate. The company determines if an arrangement contains a lease at inception, which generally occurs when the arrangement identifies a specific asset that the company has the right to direct the use of and obtain substantially all of the economic benefit from use of the identified asset. Certain of our lease agreements contain rent escalation clauses (including fixed and index-based escalations), and options to extend or terminate the lease. For purposes of calculating operating lease obligations under the standard, the company's lease terms include options to extend the lease when it is reasonably certain that the company will exercise such option. The company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is the rate of interest the company could borrow on a collateralized basis over a similar term with similar payments. Operating lease expense is recognized on a straight-line basis over the lease terms.

Operating lease right-of-use assets and lease obligations included in the consolidated balance sheet at March 31, 2019, are as follows (in thousands):

Right-of-use assets under operating leases:
Other assets - noncurrent	$	72,219
Lease obligations under operating leases:
Accrued liabilities	$	16,378
Other liabilities - noncurrent		56,215
	$	72,593

The weighted average remaining lease term for our operating leases is 6.3 years and the weighted-average discount rate is 4.00% as of

March 31, 2019. Future operating lease liabilities as of March 31, 2019, for the next five years and thereafter are as follows (in thousands):

2019 - for the remaining nine months	$	14,565
2020		17,316
2021		14,165
2022		10,891
2023		7,924
Thereafter		20,503
Total undiscounted cash flows		85,364
Less imputed interest		(12,771)
Lease obligations under operating leases	$	72,593

Operating and short-term lease expense included in the consolidated statement of income was $4.7 million and $4.4 million, respectively, for the three-month period ended March 31, 2019. Cash paid related to operating lease obligations was $4.8 million for the three-month period ended

March 31, 2019. Variable lease costs were not material for the three-month period ended March 31, 2019.

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Earnings Per Share

3 Months Ended

Mar. 31, 2019

Earnings Per Share

Earnings Per Share

Note 4.  Earnings Per Share

Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company’s basic earnings per share. Common share equivalents represent potentially dilutive restricted stock units, deferred stock units, restricted stock, and performance awards, and are excluded from the computation in periods in which they have an anti-dilutive effect. There were no anti-dilutive common share equivalents as of or for the three months ended March 31, 2019 and 2018.

The following tables present a reconciliation of the numerators and the denominators of the company’s basic and diluted earnings per share computations for the three months ended March 31, 2019 and 2018 (in thousands, except per share data):

	Three Months Ended March 31,
	2019						2018
			Weighted						Weighted
			Average						Average
	Net Income		Shares		Per Share		Net Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount		(Numerator)		(Denominator)		Amount
Basic earnings per share	$	204,328		224,058	$	0.91	$	227,551		236,623	$	0.96
Dilutive common share equivalents		-		904				-		1,100
Diluted earnings per share	$	204,328		224,962	$	0.91	$	227,551		237,723	$	0.96

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Inventories

3 Months Ended

Mar. 31, 2019

Inventories

Inventories

Note 5.  Inventories

Inventories are stated at lower of cost or net realizable value. Cost is determined using a weighted average cost method for raw materials and supplies, and on a first-in, first-out basis for other inventory. Inventory consisted of the following (in thousands):

	March 31,		December 31,
	2019		2018
Raw materials	$	828,733	$	810,766
Supplies		450,584		436,828
Work in progress		184,866		195,224
Finished goods		403,517		416,350
Total inventories	$	1,867,700	$	1,859,168

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Changes in Equity

3 Months Ended

Mar. 31, 2019

Changes in Equity

Changes in Equity

Note 6.  Changes in Equity

The following tables provide a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to stockholders of Steel Dynamics, Inc., and equity and redeemable amounts attributable to noncontrolling interests (in thousands) for the three months ended

March 31, 2019 and 2018:

	Stockholders of Steel Dynamics, Inc.
									Accumulated
					Additional				Other						Redeemable
	Common		Treasury		Paid-In		Retained		Comprehensive		Noncontrolling		Total		Noncontrolling
	Stock		Stock		Capital		Earnings		Loss		Interests		Equity		Interests
Balances at December 31, 2018	$	645	$	(1,184,243)	$	1,160,048	$	3,958,320	$	301	$	(159,082)	$	3,775,989	$	111,240
Dividends declared		-		-		-		(53,504)		-		-		(53,504)		-
Noncontrolling investors of USS		-		-		-		-		-		-		-		28,690
Share repurchases		-		(84,308)		-		-		-		-		(84,308)		-
Equity-based compensation		-		6,714		91		(110)		-		-		6,695		-
Net income		-		-		-		204,328		-		499		204,827		-
Other comprehensive loss, net of tax		-		-		-		-		(171)		-		(171)		-
Balances at March 31, 2019	$	645	$	(1,261,837)	$	1,160,139	$	4,109,034	$	130	$	(158,583)	$	3,849,528	$	139,930
	Stockholders of Steel Dynamics, Inc.
									Accumulated
					Additional				Other						Redeemable
	Common		Treasury		Paid-In		Retained		Comprehensive		Noncontrolling		Total		Noncontrolling
	Stock		Stock		Capital		Earnings		Loss		Interests		Equity		Interests
Balances at December 31, 2017	$	644	$	(665,297)	$	1,141,534	$	2,874,693	$	-	$	(156,506)	$	3,195,068	$	111,240
Dividends declared		-		-		-		(44,269)		-		-		(44,269)		-
Share repurchases		-		(69,269)		-		-		-		-		(69,269)		-
Equity-based compensation		-		3,866		1,337		(71)		-		-		5,132		-
Comprehensive and net income (loss)		-		-		-		227,551		-		(2,076)		225,475		-
Balances at March 31, 2018	$	644	$	(730,700)	$	1,142,871	$	3,057,904	$	-	$	(158,582)	$	3,312,137	$	111,240

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2019

Derivative Financial Instruments

Derivative Financial Instruments

Note 7.  Derivative Financial Instruments

The company is exposed to certain risks relating to its ongoing business operations. The company utilizes derivative instruments to mitigate commodity margin risk, occasionally to mitigate foreign currency exchange rate risk, and have in the past to mitigate interest rate fluctuation risk. The company routinely enters into forward exchange traded futures and option contracts to manage the price risk associated with nonferrous metals inventory as well as purchases and sales of nonferrous and ferrous metals (primarily aluminum and copper). The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements. 

Note 7.  Derivative Financial Instruments (Continued)

Commodity Futures Contracts. If the company is “long” on futures contracts, it means the company has more futures contracts purchased than futures contracts sold for the underlying commodity. If the company is “short” on a futures contract, it means the company has more futures contracts sold than futures contracts purchased for the underlying commodity. The following summarizes the company’s futures contract commitments as of March 31, 2019:  

Commodity Futures	Long/Short	Metric Tons
Aluminum	Long	3,075
Aluminum	Short	5,925
Copper	Long	12,440
Copper	Short	22,759

The following summarizes the location and amounts of the fair values reported on the company’s consolidated balance sheets as of March 31, 2019, and December 31, 2018, and gains and losses related to derivatives included in the company’s statement of income for the three months ended March 31, 2019 and 2018 (in thousands):

		Asset Derivatives				Liability Derivatives
	Balance sheet	Fair Value				Fair Value
	location	March 31, 2019		December 31, 2018		March 31, 2019		December 31, 2018
Derivative instruments designated as hedges
Commodity futures	Other current assets	$	552	$	2,999	$	1,068	$	1,837
Derivative instruments not designated as hedges
Commodity futures	Other current assets		1,480		1,559		1,752		2,053
Total derivative instruments		$	2,032	$	4,558	$	2,820	$	3,890

The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements totaled $3.7 million at March 31, 2019, and $4.9 million at December 31, 2018, and are reflected in other current assets in the consolidated balance sheets.

		Amount of gain (loss) recognized					Location of gain	Amount of gain (loss) recognized
	Location of gain	in income on derivatives					(loss) recognized	in income on related hedged items
	(loss) recognized	for the three months ended				Hedged items in	in income on	for the three months ended
	in income on	March 31,		March 31,		fair value hedge	related hedged	March 31,		March 31,
	derivatives	2019		2018		relationships	items	2019		2018
Derivatives in fair value
hedging relationships
Commodity futures	Costs of goods sold	$	(1,453)	$	8,516	Firm commitments	Costs of goods sold	$	(1,499)	$	(793)
						Inventory	Costs of goods sold		721		(2,596)
Derivatives not designated								$	(778)	$	(3,389)
as hedging instruments
Commodity futures	Costs of goods sold	$	(4,077)	$	2,756

Derivatives accounted for as fair value hedges had ineffectiveness resulting in losses of $1.1 million and $101,000 during the three-month periods ended March 31, 2019, and 2018, respectively. Losses excluded from hedge effectiveness testing of $2.2 million increased cost of goods sold during the three-month period ended March 31, 2019. Gains excluded from hedge effectiveness testing of $5.0million decreased cost of goods sold during the three-month period ended March 31, 2018.

Derivatives accounted for as cash flow hedges resulted in net gains of $58,000 recognized in other comprehensive income for the three-month period ended March 31, 2019. Net gains of $283,000 were reclassified from accumulated other comprehensive three-month period ended March 31, 2019. At March 31, 2019, the company expects to reclassify $170,000of net gains on derivative instruments from accumulated other comprehensive income to earnings during the next 12 months due to the settlement of futures contracts.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Fair Value Measurements

Fair Value Measurements

Note 8.  Fair Value Measurements

FASB accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. Levels within the hierarchy are defined as follows:

· Level 1—Unadjusted quoted prices for identical assets and liabilities in active markets;

· Level 2—Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable for the asset or liability, either directly or indirectly; and

· Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The following table sets forth financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheet and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of March 31, 2019, and December 31, 2018 (in thousands):    

			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
March 31, 2019
Short-term investments	$	173,723	$		$	173,723	$
Commodity futures – financial assets		2,032		-		2,032		-
Commodity futures – financial liabilities		2,820		-		2,820		-
December 31, 2018
Short-term investments	$	228,783	$	-	$	228,783	$	-
Commodity futures – financial assets		4,558		-		4,558		-
Commodity futures – financial liabilities		3,890		-		3,890		-

The carrying amounts of financial instruments including cash and equivalents approximate fair value (Level 1). The fair values of short-term investments and the commodity futures contracts are estimated by the use of quoted market prices, estimates obtained from brokers, and other appropriate valuation techniques based on references available (Level 2). The fair value of long-term debt, including current maturities, as determined by quoted market prices (Level 2), was approximately $2.5 billion and $2.4 billion at March 31, 2019 and December 31, 2018, respectively (with a corresponding carrying amount in the consolidated balance sheet of $2.5 billion at March 31, 2019 and $2.4 billion at   December 31, 2018).

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies

Commitments and Contingencies

Note 9.  Commitments and Contingencies

The company is involved in various routine litigation matters, including administrative proceedings, regulatory proceedings, governmental investigations, environmental matters, and commercial and construction contract disputes, none of which are expected to have a material impact on our financial condition, results of operations, or liquidity. 

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Segment Information

3 Months Ended

Mar. 31, 2019

Segment Information

Segment Information

Note 10.  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 smaller joint ventures, and our idle Minnesota ironmaking operations. 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 10.  Segment Information (Continued)

The company’s segment results,including disaggregated revenue by segment to external, external non-United States, and other segment customers, are as follows (in thousands):

			Metals		Steel
For the three months ended	Steel		Recycling		Fabrication
March 31, 2019	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
External	$	2,044,491	$	285,725	$	228,429	$	113,248		$	-		$	2,671,893
External Non-U.S.		80,079		65,412		51		-			-			145,542
Other segments		75,595		385,908		189		248			(461,940)			-
		2,200,165		737,045		228,669		113,496			(461,940)			2,817,435
Operating income (loss)		309,078		16,962		20,623		(56,920)	(1)		2,099			291,842
Income (loss) before income taxes		293,019		15,505		19,351		(62,696)			1,884			267,063
Depreciation and amortization		62,512		11,439		2,967		3,256			-			80,174
Capital expenditures		43,676		6,642		1,993		2,125			-			54,436
As of March 31, 2019
Assets	$	5,378,536	$	982,844	$	407,576	$	1,170,832	(2)	$	(82,555)	(3)	$	7,857,233

Footnotes related to the three months ended March 31, 2019, segment results (in millions):
(1)	Corporate SG&A	$	(22.6)	(3)	Elimination of intra-company receivables	$	(59.5)
	Company-wide equity-based compensation		(9.0)		Elimination of intra-company debt		(10.8)
	Profit sharing		(23.0)		Other		(12.3)
	Other, net		(2.3)			$	(82.6)
		$	(56.9)
(2)	Cash and equivalents	$	756.9
	Short-term investments		153.7
	Accounts receivable		12.2
	Inventories		36.1
	Property, plant and equipment, net		152.6
	Intra-company debt		10.8
	Other		48.5
		$	1,170.8

Note 10.  Segment Information (Continued)

			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

Footnotes related to the three months ended March 31, 2018, segment results (in millions):
(1)	Corporate SG&A	$	(15.7)
	Company-wide equity-based compensation		(8.5)
	Profit sharing		(25.6)
	Other, net		(5.6)
		$	(55.4)

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Condensed Consolidating Information

3 Months Ended

Mar. 31, 2019

Condensed Consolidating Information Disclosure Abstract

Condensed Consolidating Information

Note 11.  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.

Condensed Consolidating Balance Sheets (in thousands)
					Combined		Consolidating		Total
As of March 31, 2019	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Cash and equivalents	$	755,014	$	26,067	$	10,363	$	-	$	791,444
Short-term investments		153,723		20,000		-		-		173,723
Accounts receivable, net		344,209		1,727,028		71,953		(999,795)		1,143,395
Inventories		786,300		1,010,636		84,420		(13,656)		1,867,700
Other current assets		38,977		17,243		3,331		(6,923)		52,628
Total current assets		2,078,223		2,800,974		170,067		(1,020,374)		4,028,890
Property, plant and equipment, net		870,626		1,905,151		161,116		-		2,936,893
Intangible assets, net		-		263,315		-		-		263,315
Goodwill		-		428,798		101,918		-		530,716
Other assets, including investments in subs		2,934,875		59,075		5,850		(2,902,381)		97,419
Total assets	$	5,883,724	$	5,457,313	$	438,951	$	(3,922,755)	$	7,857,233
Accounts payable	$	197,481	$	376,400	$	94,697	$	(77,111)	$	591,467
Accrued expenses		200,512		275,807		17,763		(163,417)		330,665
Current maturities of long-term debt		809		1,116		104,574		(25,541)		80,958
Total current liabilities		398,802		653,323		217,034		(266,069)		1,003,090
Long-term debt		2,328,859		-		166,353		(140,785)		2,354,427
Other liabilities		(852,048)		1,398,528		33,483		(69,705)		510,258
Total liabilities		1,875,613		2,051,851		416,870		(476,559)		3,867,775
Redeemable noncontrolling interests		-		-		139,930		-		139,930
Common stock		645		1,727,859		15,016		(1,742,875)		645
Treasury stock		(1,261,837)		-		-		-		(1,261,837)
Additional paid-in-capital		1,160,139		683,048		787,572		(1,470,620)		1,160,139
Retained earnings (deficit)		4,109,034		994,555		(761,854)		(232,701)		4,109,034
Accumulated other comprehensive loss		130		-		-		-		130
Total Steel Dynamics, Inc. equity		4,008,111		3,405,462		40,734		(3,446,196)		4,008,111
Noncontrolling interests		-		-		(158,583)		-		(158,583)
Total equity		4,008,111		3,405,462		(117,849)		(3,446,196)		3,849,528
Total liabilities and equity	$	5,883,724	$	5,457,313	$	438,951	$	(3,922,755)	$	7,857,233

Note 11.  Condensed Consolidating Information (Continued)

					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 11.  Condensed Consolidating Information (Continued)

Condensed Consolidating Statements of Operations (in thousands)
For the three months ended,					Combined		Consolidating		Total
March 31, 2019	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net sales	$	1,124,735	$	3,110,229	$	171,883	$	(1,589,412)	$	2,817,435
Costs of goods sold		905,995		2,865,989		165,460		(1,553,579)		2,383,865
Gross profit		218,740		244,240		6,423		(35,833)		433,570
Selling, general and administrative		69,006		74,583		3,930		(5,791)		141,728
Operating income		149,734		169,657		2,493		(30,042)		291,842
Interest expense, net of capitalized interest		18,654		11,766		3,214		(2,512)		31,122
Other (income) expense, net		(7,400)		(1,377)		(292)		2,726		(6,343)
Income (loss) before income taxes and
equity in net income of subsidiaries		138,480		159,268		(429)		(30,256)		267,063
Income taxes		30,764		38,534		103		(7,165)		62,236
		107,716		120,734		(532)		(23,091)		204,827
Equity in net income of subsidiaries		96,612		-		-		(96,612)		-
Net income attributable to noncontrolling interests		-		-		(499)		-		(499)
Net income (loss) attributable to Steel Dynamics, Inc.	$	204,328	$	120,734	$	(1,031)	$	(119,703)	$	204,328

For the three months ended,					Combined		Consolidating		Total
March 31, 2018	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net sales	$	1,036,674	$	2,823,129	$	152,587	$	(1,408,515)	$	2,603,875
Costs of goods sold		819,145		2,551,620		148,630		(1,378,936)		2,140,459
Gross profit		217,529		271,509		3,957		(29,579)		463,416
Selling, general and administrative		62,927		76,952		5,597		(5,457)		140,019
Operating income (loss)		154,602		194,557		(1,640)		(24,122)		323,397
Interest expense, net of capitalized interest		18,623		12,437		3,540		(2,704)		31,896
Other (income) expense, net		(5,203)		(1,697)		(273)		2,710		(4,463)
Income (loss) before income taxes and
equity in net income of subsidiaries		141,182		183,817		(4,907)		(24,128)		295,964
Income taxes		29,746		45,720		909		(5,886)		70,489
		111,436		138,097		(5,816)		(18,242)		225,475
Equity in net income of subsidiaries		116,115		-		-		(116,115)		-
Net loss attributable to noncontrolling interests		-		-		2,076		-		2,076
Net income (loss) attributable to Steel Dynamics, Inc.	$	227,551	$	138,097	$	(3,740)	$	(134,357)	$	227,551

Note 11.  Condensed Consolidating Information (Continued)

Condensed Consolidating Statements of Cash Flows (in thousands)
For the three months ended,					Combined		Consolidating		Total
March 31, 2019	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net cash provided by (used in) operating activities	$	38,735	$	151,815	$	(4,520)	$	(4,477)	$	181,553
Net cash used in investing activities		(71,294)		(16,183)		(365)		(4,582)		(92,424)
Net cash provided by (used in) financing activities		(22,190)		(123,429)		10,256		9,059		(126,304)
Increase (decrease) in cash, cash equivalents and
restricted cash		(54,749)		12,203		5,371		-		(37,175)
Cash, cash equivalents, and restricted cash
at beginning of period		809,763		14,368		10,292		-		834,423
Cash, cash equivalents, and restricted cash
at end of period	$	755,014	$	26,571	$	15,663	$	-	$	797,248

For the three months ended,					Combined		Consolidating		Total
March 31, 2018	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net cash provided by operating activities	$	9,009	$	149,336	$	21,283	$	(1,693)	$	177,935
Net cash used in investing activities		(60,919)		(24,517)		(2,997)		(1,944)		(90,377)
Net cash provided by (used in) financing activities		18,920		(135,966)		(17,813)		3,637		(131,222)
Increase (decrease) in cash, cash equivalents and
restricted cash		(32,990)		(11,147)		473		-		(43,664)
Cash, cash equivalents, and restricted cash
at beginning of period		1,002,230		20,740		12,115		-		1,035,085
Cash, cash equivalents, and restricted cash
at end of period	$	969,240	$	9,593	$	12,588	$	-	$	991,421

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Description of the Business and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2019

Description of the Business and Significant Accounting Policies

Principles of Consolidation

Principles of Consolidation.  The consolidated financial statements include the accounts of SDI, together with its wholly- and majority-owned/ controlled subsidiaries, after elimination of intercompany accounts and transactions. Noncontrolling interests represent the noncontrolling owner’s proportionate share in the equity, income, or losses of the company’s majority-owned/controlled consolidated subsidiaries. 

Use of Estimates

Use of Estimates. These consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, and accordingly, include amounts that require management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the notes thereto. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment, intangible assets, and goodwill; valuation allowances for trade receivables, inventories and deferred income tax assets; unrecognized tax benefits; potential environmental liabilities; and litigation claims and settlements. Actual results may differ from these estimates and assumptions. 

In the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the interim period results. These consolidated financial statements and notes should be read in conjunction with the audited financial statements and notes thereto included in the company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Cash and Equivalents And Restricted Cash

Cash and Equivalents. And Restricted Cash

Cash and equivalents include all highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash is primarily funds held in escrow as required by various insurance and government organizations. The balance of cash, cash equivalents and restricted cash in the consolidated statements of cash flows includes restricted cash of $5.8 million, $6.2 million, $5.6 million, and $6.4 million at March 31, 2019, December 31, 2018, March 31, 2018, and December 31, 2017, respectively, which are recorded in Other Assets (noncurrent) in the company’s consolidated balance sheets.

Goodwill

Goodwill

The company’s goodwill consisted of the following reporting units at March 31, 2019, and December 31, 2018, (in thousands):

	March 31,		December 31,
	2019		2018
Steel Operations Segment
Columbus Flat Roll Division	$	19,682	$	19,682
The Techs		142,783		142,783
Heartland Flat Roll Division		46,143		46,143
United Steel Supply		101,918		-
Vulcan Threaded Products		7,824		7,824
Roanoke Bar Division		29,041		29,041
Metals Recycling Operations Segment – OmniSource		181,400		182,247
Steel Fabrication Operations Segment – New Millennium Building Systems		1,925		1,925
	$	530,716	$	429,645

The company acquired a 75% equity interest in United Steel Supply on March 1, 2019 (refer to Note 2 Acquisition – United Steel Supply, LLC), resulting in a preliminary purchase price allocation in which $101.9 million of goodwill was recorded. OmniSource goodwill decreased $847,000 from December 31, 2018 to March 31, 2019, in recognition of the 2019 tax benefit related to the normal amortization of the component of OmniSource tax-deductible goodwill in excess of book goodwill.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: which requires an entity to use a forward-looking expected loss model versus the current incurred loss model for most financial instruments, including accounts receivable.  This new guidance is effective for annual and interim periods beginning after December 15, 2019, but can be early adopted.  The company is currently evaluating the impact ASU 2016-13 will have in its consolidated financial statements and related disclosure.

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Description of the Business and Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Description of the Business and Significant Accounting Policies

Schedule of Goodwill

The company’s goodwill consisted of the following reporting units at March 31, 2019, and December 31, 2018, (in thousands):

	March 31,		December 31,
	2019		2018
Steel Operations Segment
Columbus Flat Roll Division	$	19,682	$	19,682
The Techs		142,783		142,783
Heartland Flat Roll Division		46,143		46,143
United Steel Supply		101,918		-
Vulcan Threaded Products		7,824		7,824
Roanoke Bar Division		29,041		29,041
Metals Recycling Operations Segment – OmniSource		181,400		182,247
Steel Fabrication Operations Segment – New Millennium Building Systems		1,925		1,925
	$	530,716	$	429,645

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Acquisition - United Steel Supply (Tables)

3 Months Ended

Mar. 31, 2019

Acquisition - United Steel Supply

Schedule of Assets Acquired and Liabilities Assumed

The aggregate purchase price was preliminarily allocated to the opening balance sheet of USS as of March 1, 2019. The following initial allocation of the purchase price (in thousands) is preliminary based on the information available as of the acquisition date to estimate the fair value of assets acquired and liabilities assumed.  The accounting for the acquisition has not yet been completed because the company has not finalized the valuations of the acquired assets, assumed liabilities and identifiable intangible assets, if any, including goodwill. 

Current assets, net of cash acquired	$	94,020
Property, plant & equipment		7,388
Intangible assets and goodwill		101,918
Total assets acquired		203,326
Liabilities assumed		81,224
Redeemable noncontrolling interest		28,690
Net cash consideration	$	93,412

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Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases

Schedule of operating lease right-of-use assets and lease obligations

Operating lease right-of-use assets and lease obligations included in the consolidated balance sheet at March 31, 2019, are as follows (in thousands):

Right-of-use assets under operating leases:
Other assets - noncurrent	$	72,219
Lease obligations under operating leases:
Accrued liabilities	$	16,378
Other liabilities - noncurrent		56,215
	$	72,593

Schedule of future operating lease liabilities

Future operating lease liabilities as of March 31, 2019, for the next five years and thereafter are as follows (in thousands):

2019 - for the remaining nine months	$	14,565
2020		17,316
2021		14,165
2022		10,891
2023		7,924
Thereafter		20,503
Total undiscounted cash flows		85,364
Less imputed interest		(12,771)
Lease obligations under operating leases	$	72,593

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2019

Earnings Per Share

Reconciliation of Basic and Diluted Earnings Per Share

The following tables present a reconciliation of the numerators and the denominators of the company’s basic and diluted earnings per share computations for the three months ended March 31, 2019 and 2018 (in thousands, except per share data):

	Three Months Ended March 31,
	2019						2018
			Weighted						Weighted
			Average						Average
	Net Income		Shares		Per Share		Net Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount		(Numerator)		(Denominator)		Amount
Basic earnings per share	$	204,328		224,058	$	0.91	$	227,551		236,623	$	0.96
Dilutive common share equivalents		-		904				-		1,100
Diluted earnings per share	$	204,328		224,962	$	0.91	$	227,551		237,723	$	0.96

XML

Inventories (Tables)

3 Months Ended

Mar. 31, 2019

Inventories

Schedule of Inventories

Inventories are stated at lower of cost or net realizable value. Cost is determined using a weighted average cost method for raw materials and supplies, and on a first-in, first-out basis for other inventory. Inventory consisted of the following (in thousands):

	March 31,		December 31,
	2019		2018
Raw materials	$	828,733	$	810,766
Supplies		450,584		436,828
Work in progress		184,866		195,224
Finished goods		403,517		416,350
Total inventories	$	1,867,700	$	1,859,168

XML

Changes in Equity (Tables)

3 Months Ended

Mar. 31, 2019

Changes in Equity

Schedule of stockholders' equity

The following tables provide a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to stockholders of Steel Dynamics, Inc., and equity and redeemable amounts attributable to noncontrolling interests (in thousands) for the three months ended

March 31, 2019 and 2018:

	Stockholders of Steel Dynamics, Inc.
									Accumulated
					Additional				Other						Redeemable
	Common		Treasury		Paid-In		Retained		Comprehensive		Noncontrolling		Total		Noncontrolling
	Stock		Stock		Capital		Earnings		Loss		Interests		Equity		Interests
Balances at December 31, 2018	$	645	$	(1,184,243)	$	1,160,048	$	3,958,320	$	301	$	(159,082)	$	3,775,989	$	111,240
Dividends declared		-		-		-		(53,504)		-		-		(53,504)		-
Noncontrolling investors of USS		-		-		-		-		-		-		-		28,690
Share repurchases		-		(84,308)		-		-		-		-		(84,308)		-
Equity-based compensation		-		6,714		91		(110)		-		-		6,695		-
Net income		-		-		-		204,328		-		499		204,827		-
Other comprehensive loss, net of tax		-		-		-		-		(171)		-		(171)		-
Balances at March 31, 2019	$	645	$	(1,261,837)	$	1,160,139	$	4,109,034	$	130	$	(158,583)	$	3,849,528	$	139,930
	Stockholders of Steel Dynamics, Inc.
									Accumulated
					Additional				Other						Redeemable
	Common		Treasury		Paid-In		Retained		Comprehensive		Noncontrolling		Total		Noncontrolling
	Stock		Stock		Capital		Earnings		Loss		Interests		Equity		Interests
Balances at December 31, 2017	$	644	$	(665,297)	$	1,141,534	$	2,874,693	$	-	$	(156,506)	$	3,195,068	$	111,240
Dividends declared		-		-		-		(44,269)		-		-		(44,269)		-
Share repurchases		-		(69,269)		-		-		-		-		(69,269)		-
Equity-based compensation		-		3,866		1,337		(71)		-		-		5,132		-
Comprehensive and net income (loss)		-		-		-		227,551		-		(2,076)		225,475		-
Balances at March 31, 2018	$	644	$	(730,700)	$	1,142,871	$	3,057,904	$	-	$	(158,582)	$	3,312,137	$	111,240

XML

Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Derivative Financial Instruments

Schedule of Notional Amounts of Outstanding Derivative Positions

The following summarizes the company’s futures contract commitments as of March 31, 2019:  

Commodity Futures	Long/Short	Metric Tons
Aluminum	Long	3,075
Aluminum	Short	5,925
Copper	Long	12,440
Copper	Short	22,759

Schedule of Derivative Instruments Statements of Financial Performance and Financial Position

		Asset Derivatives				Liability Derivatives
	Balance sheet	Fair Value				Fair Value
	location	March 31, 2019		December 31, 2018		March 31, 2019		December 31, 2018
Derivative instruments designated as hedges
Commodity futures	Other current assets	$	552	$	2,999	$	1,068	$	1,837
Derivative instruments not designated as hedges
Commodity futures	Other current assets		1,480		1,559		1,752		2,053
Total derivative instruments		$	2,032	$	4,558	$	2,820	$	3,890

The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements totaled $3.7 million at March 31, 2019, and $4.9 million at December 31, 2018, and are reflected in other current assets in the consolidated balance sheets.

		Amount of gain (loss) recognized					Location of gain	Amount of gain (loss) recognized
	Location of gain	in income on derivatives					(loss) recognized	in income on related hedged items
	(loss) recognized	for the three months ended				Hedged items in	in income on	for the three months ended
	in income on	March 31,		March 31,		fair value hedge	related hedged	March 31,		March 31,
	derivatives	2019		2018		relationships	items	2019		2018
Derivatives in fair value
hedging relationships
Commodity futures	Costs of goods sold	$	(1,453)	$	8,516	Firm commitments	Costs of goods sold	$	(1,499)	$	(793)
						Inventory	Costs of goods sold		721		(2,596)
Derivatives not designated								$	(778)	$	(3,389)
as hedging instruments
Commodity futures	Costs of goods sold	$	(4,077)	$	2,756

XML

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Measurements

Schedule of assets and liabilities measured at fair value on a recurring basis

The following table sets forth financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheet and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of March 31, 2019, and December 31, 2018 (in thousands):    

			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
March 31, 2019
Short-term investments	$	173,723	$		$	173,723	$
Commodity futures – financial assets		2,032		-		2,032		-
Commodity futures – financial liabilities		2,820		-		2,820		-
December 31, 2018
Short-term investments	$	228,783	$	-	$	228,783	$	-
Commodity futures – financial assets		4,558		-		4,558		-
Commodity futures – financial liabilities		3,890		-		3,890		-

XML

Segment Information (Tables)

3 Months Ended

Mar. 31, 2019

Segment Information

Schedule of operating segment results

			Metals		Steel
For the three months ended	Steel		Recycling		Fabrication
March 31, 2019	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
External	$	2,044,491	$	285,725	$	228,429	$	113,248		$	-		$	2,671,893
External Non-U.S.		80,079		65,412		51		-			-			145,542
Other segments		75,595		385,908		189		248			(461,940)			-
		2,200,165		737,045		228,669		113,496			(461,940)			2,817,435
Operating income (loss)		309,078		16,962		20,623		(56,920)	(1)		2,099			291,842
Income (loss) before income taxes		293,019		15,505		19,351		(62,696)			1,884			267,063
Depreciation and amortization		62,512		11,439		2,967		3,256			-			80,174
Capital expenditures		43,676		6,642		1,993		2,125			-			54,436
As of March 31, 2019
Assets	$	5,378,536	$	982,844	$	407,576	$	1,170,832	(2)	$	(82,555)	(3)	$	7,857,233

Footnotes related to the three months ended March 31, 2019, segment results (in millions):
(1)	Corporate SG&A	$	(22.6)	(3)	Elimination of intra-company receivables	$	(59.5)
	Company-wide equity-based compensation		(9.0)		Elimination of intra-company debt		(10.8)
	Profit sharing		(23.0)		Other		(12.3)
	Other, net		(2.3)			$	(82.6)
		$	(56.9)
(2)	Cash and equivalents	$	756.9
	Short-term investments		153.7
	Accounts receivable		12.2
	Inventories		36.1
	Property, plant and equipment, net		152.6
	Intra-company debt		10.8
	Other		48.5
		$	1,170.8

Note 10.  Segment Information (Continued)

			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

Footnotes related to the three months ended March 31, 2018, segment results (in millions):
(1)	Corporate SG&A	$	(15.7)
	Company-wide equity-based compensation		(8.5)
	Profit sharing		(25.6)
	Other, net		(5.6)
		$	(55.4)

XML

Condensed Consolidating Information (Tables)

3 Months Ended

Mar. 31, 2019

Condensed Consolidating Information Disclosure Abstract

Schedule of Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets (in thousands)
					Combined		Consolidating		Total
As of March 31, 2019	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Cash and equivalents	$	755,014	$	26,067	$	10,363	$	-	$	791,444
Short-term investments		153,723		20,000		-		-		173,723
Accounts receivable, net		344,209		1,727,028		71,953		(999,795)		1,143,395
Inventories		786,300		1,010,636		84,420		(13,656)		1,867,700
Other current assets		38,977		17,243		3,331		(6,923)		52,628
Total current assets		2,078,223		2,800,974		170,067		(1,020,374)		4,028,890
Property, plant and equipment, net		870,626		1,905,151		161,116		-		2,936,893
Intangible assets, net		-		263,315		-		-		263,315
Goodwill		-		428,798		101,918		-		530,716
Other assets, including investments in subs		2,934,875		59,075		5,850		(2,902,381)		97,419
Total assets	$	5,883,724	$	5,457,313	$	438,951	$	(3,922,755)	$	7,857,233
Accounts payable	$	197,481	$	376,400	$	94,697	$	(77,111)	$	591,467
Accrued expenses		200,512		275,807		17,763		(163,417)		330,665
Current maturities of long-term debt		809		1,116		104,574		(25,541)		80,958
Total current liabilities		398,802		653,323		217,034		(266,069)		1,003,090
Long-term debt		2,328,859		-		166,353		(140,785)		2,354,427
Other liabilities		(852,048)		1,398,528		33,483		(69,705)		510,258
Total liabilities		1,875,613		2,051,851		416,870		(476,559)		3,867,775
Redeemable noncontrolling interests		-		-		139,930		-		139,930
Common stock		645		1,727,859		15,016		(1,742,875)		645
Treasury stock		(1,261,837)		-		-		-		(1,261,837)
Additional paid-in-capital		1,160,139		683,048		787,572		(1,470,620)		1,160,139
Retained earnings (deficit)		4,109,034		994,555		(761,854)		(232,701)		4,109,034
Accumulated other comprehensive loss		130		-		-		-		130
Total Steel Dynamics, Inc. equity		4,008,111		3,405,462		40,734		(3,446,196)		4,008,111
Noncontrolling interests		-		-		(158,583)		-		(158,583)
Total equity		4,008,111		3,405,462		(117,849)		(3,446,196)		3,849,528
Total liabilities and equity	$	5,883,724	$	5,457,313	$	438,951	$	(3,922,755)	$	7,857,233

Note 11.  Condensed Consolidating Information (Continued)

					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

Schedule of Condensed Consolidating Statements of Operations

Condensed Consolidating Statements of Operations (in thousands)
For the three months ended,					Combined		Consolidating		Total
March 31, 2019	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net sales	$	1,124,735	$	3,110,229	$	171,883	$	(1,589,412)	$	2,817,435
Costs of goods sold		905,995		2,865,989		165,460		(1,553,579)		2,383,865
Gross profit		218,740		244,240		6,423		(35,833)		433,570
Selling, general and administrative		69,006		74,583		3,930		(5,791)		141,728
Operating income		149,734		169,657		2,493		(30,042)		291,842
Interest expense, net of capitalized interest		18,654		11,766		3,214		(2,512)		31,122
Other (income) expense, net		(7,400)		(1,377)		(292)		2,726		(6,343)
Income (loss) before income taxes and
equity in net income of subsidiaries		138,480		159,268		(429)		(30,256)		267,063
Income taxes		30,764		38,534		103		(7,165)		62,236
		107,716		120,734		(532)		(23,091)		204,827
Equity in net income of subsidiaries		96,612		-		-		(96,612)		-
Net income attributable to noncontrolling interests		-		-		(499)		-		(499)
Net income (loss) attributable to Steel Dynamics, Inc.	$	204,328	$	120,734	$	(1,031)	$	(119,703)	$	204,328

For the three months ended,					Combined		Consolidating		Total
March 31, 2018	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net sales	$	1,036,674	$	2,823,129	$	152,587	$	(1,408,515)	$	2,603,875
Costs of goods sold		819,145		2,551,620		148,630		(1,378,936)		2,140,459
Gross profit		217,529		271,509		3,957		(29,579)		463,416
Selling, general and administrative		62,927		76,952		5,597		(5,457)		140,019
Operating income (loss)		154,602		194,557		(1,640)		(24,122)		323,397
Interest expense, net of capitalized interest		18,623		12,437		3,540		(2,704)		31,896
Other (income) expense, net		(5,203)		(1,697)		(273)		2,710		(4,463)
Income (loss) before income taxes and
equity in net income of subsidiaries		141,182		183,817		(4,907)		(24,128)		295,964
Income taxes		29,746		45,720		909		(5,886)		70,489
		111,436		138,097		(5,816)		(18,242)		225,475
Equity in net income of subsidiaries		116,115		-		-		(116,115)		-
Net loss attributable to noncontrolling interests		-		-		2,076		-		2,076
Net income (loss) attributable to Steel Dynamics, Inc.	$	227,551	$	138,097	$	(3,740)	$	(134,357)	$	227,551

Note 11.  Condensed Consolidating Information (Continued)

Schedule of Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows (in thousands)
For the three months ended,					Combined		Consolidating		Total
March 31, 2019	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net cash provided by (used in) operating activities	$	38,735	$	151,815	$	(4,520)	$	(4,477)	$	181,553
Net cash used in investing activities		(71,294)		(16,183)		(365)		(4,582)		(92,424)
Net cash provided by (used in) financing activities		(22,190)		(123,429)		10,256		9,059		(126,304)
Increase (decrease) in cash, cash equivalents and
restricted cash		(54,749)		12,203		5,371		-		(37,175)
Cash, cash equivalents, and restricted cash
at beginning of period		809,763		14,368		10,292		-		834,423
Cash, cash equivalents, and restricted cash
at end of period	$	755,014	$	26,571	$	15,663	$	-	$	797,248

For the three months ended,					Combined		Consolidating		Total
March 31, 2018	Parent		Guarantors		Non-Guarantors		Adjustments		Consolidated
Net cash provided by operating activities	$	9,009	$	149,336	$	21,283	$	(1,693)	$	177,935
Net cash used in investing activities		(60,919)		(24,517)		(2,997)		(1,944)		(90,377)
Net cash provided by (used in) financing activities		18,920		(135,966)		(17,813)		3,637		(131,222)
Increase (decrease) in cash, cash equivalents and
restricted cash		(32,990)		(11,147)		473		-		(43,664)
Cash, cash equivalents, and restricted cash
at beginning of period		1,002,230		20,740		12,115		-		1,035,085
Cash, cash equivalents, and restricted cash
at end of period	$	969,240	$	9,593	$	12,588	$	-	$	991,421

XML

Description of the Business and Significant Accounting Policies (Segments) (Details) - segment	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 01, 2019
Segment Reporting Information
Number of reporting segments	3
Steel Operations
Segment Reporting Information
Percentage of external net sales	75.00%	74.00%
Metals Recycling Operations
Segment Reporting Information
Percentage of external net sales	13.00%	15.00%
Steel Fabrication Operations
Segment Reporting Information
Percentage of external net sales	8.00%	8.00%
United Steel Supply, LLC
Segment Reporting Information
Acquisition of interest (as a percent)			75.00%

XML

Description of the Business and Significant Accounting Policies (Cash and Equivalents And Restricted Cash) (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Cash and Cash Equivalents [Abstract]
Restricted Cash and Cash Equivalents	$ 5.8	$ 6.2	$ 5.6	$ 6.4
Restricted Cash and Cash Equivalents, Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent	us-gaap:OtherAssetsNoncurrent

XML

Description of the Business and Significant Accounting Policies (Goodwill) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Goodwill
Goodwill	$ 530,716,000	$ 429,645,000
OmniSource
Goodwill
Goodwill decrease due to tax benefit related to the normal amortization of the component	847,000
Steel Operations | Columbus Flat Roll Division
Goodwill
Goodwill	19,682,000	19,682,000
Steel Operations | The Techs
Goodwill
Goodwill	142,783,000	142,783,000
Steel Operations | Heartland Flat Roll Division [Member]
Goodwill
Goodwill	46,143,000	46,143,000
Steel Operations | United Steel Supply, LLC
Goodwill
Goodwill	101,918,000
Steel Operations | Vulcan Steel Products [Member]
Goodwill
Goodwill	7,824,000	7,824,000
Steel Operations | Roanoke Bar Division
Goodwill
Goodwill	29,041,000	29,041,000
Metals Recycling Operations | OmniSource
Goodwill
Goodwill	181,400,000	182,247,000
Steel Fabrication Operations | New Millennium Building Systems
Goodwill
Goodwill	$ 1,925,000	$ 1,925,000

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Acquisition - United Steel Supply (Narrative) (Details) - USD ($) $ in Thousands		3 Months Ended
	Mar. 01, 2019	Mar. 31, 2019
Acquisition
Purchase price paid in cash		$ 93,412
United Steel Supply, LLC
Acquisition
Business Acquisition, Percentage of Voting Interests Acquired	75.00%
Purchase price paid in cash	$ 93,400
Business Acquisition, Percentage of Voting Interests Available to be Acquired	25.00%

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Acquisition - United Steel Supply (Schedule of Assets Acquired and Liabilities Assumed) (Details) - United Steel Supply, LLC $ in Thousands	Mar. 01, 2019 USD ($)
Acquisition
Current assets, net of cash acquired	$ 94,020
Property, plant & equipment	7,388
Intangible assets and goodwill	101,918
Total assets acquired	203,326
Liabilities assumed	81,224
Redeemable noncontrolling interest	28,690
Net cash consideration	$ 93,412

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Leases (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Jan. 01, 2019
Right of use asset	$ 72,219
Lease liability	$ 72,593
Option to extend operating lease	true
Option to terminate operating lease	true
Weighted average remaining lease term	6 years 3 months 18 days
Operating lease expenses	$ 4,700
Short term lease expenses	$ 4,400
Weighted average discount rate	4.00%
Cash paid related to operating lease obligations	$ 4,800
Accounting Standards Update 2016-02 [Member] | Restatement Adjustment [Member]
Right of use asset		$ 76,300
Lease liability		$ 76,300

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Leases (Schedule of Operating lease right-of-use assets and lease obligations) (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Leases
Right of use asset	$ 72,219
Right of use asset included in balance sheet	us-gaap:OtherAssetsNoncurrent
Current lease liability	$ 16,378
Current lease liability included in balance sheet	us-gaap:AccruedLiabilitiesCurrent
Non current lease liability	$ 56,215
Non current lease liability included in balance sheet	us-gaap:OtherLiabilitiesNoncurrent
Lease liability	$ 72,593

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Leases (Future operating lease liabilities) (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Future operating lease liabilities
2019 - for the remaining nine months	$ 14,565
2020	17,316
2021	14,165
2022	10,891
2023	7,924
Thereafter	20,503
Total undiscounted cash flows	85,364
Less imputed interest	(12,771)
Lease obligations under operating leases	$ 72,593

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share
Antidilutive common share equivalents excluded from computation of earnings per share amount (in shares)	0	0
Net Income (Numerator)
Basic earnings per share (in dollars)	$ 204,328	$ 227,551
Diluted earnings per share (in dollars)	$ 204,328	$ 227,551
Weighted Average Shares (Denominator)
Basic earnings per share (in shares)	224,058,000	236,623,000
Dilutive common share equivalents (in shares)	904,000	1,100,000
Diluted earnings per share (in shares)	224,962,000	237,723,000
Per Share Amount
Basic (in dollars per share)	$ 0.91	$ 0.96
Diluted (in dollars per share)	$ 0.91	$ 0.96

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Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventories
Raw materials	$ 828,733	$ 810,766
Supplies	450,584	436,828
Work in progress	184,866	195,224
Finished goods	403,517	416,350
Total inventories	$ 1,867,700	$ 1,859,168

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Changes in Equity (Rollforward) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Balances	$ 3,775,989	$ 3,195,068
Dividends declared	(53,504)	(44,269)
Share repurchases	(84,308)	(69,269)
Equity-based compensation	6,695	5,132
Net income	204,827	225,475
Other comprehensive loss, net of tax	(171)
Comprehensive and net income (loss)	204,656	225,475
Balances	3,849,528	3,312,137
Common Stock
Balances	645	644
Balances	645	644
Treasury Stock
Balances	(1,184,243)	(665,297)
Share repurchases	(84,308)	(69,269)
Equity-based compensation	6,714	3,866
Balances	(1,261,837)	(730,700)
Additional Paid-In Capital
Balances	1,160,048	1,141,534
Equity-based compensation	91	1,337
Balances	1,160,139	1,142,871
Retained Earnings
Balances	3,958,320	2,874,693
Dividends declared	(53,504)	(44,269)
Equity-based compensation	(110)	(71)
Net income	204,328
Comprehensive and net income (loss)		227,551
Balances	4,109,034	3,057,904
AOCI Attributable to Parent [Member]
Balances	301
Other comprehensive loss, net of tax	(171)
Balances	130
Noncontrolling Interests
Balances	(159,082)	(156,506)
Net income	499
Comprehensive and net income (loss)		(2,076)
Balances	(158,583)	(158,582)
Redeemable Noncontrolling Interest
Balances	111,240	111,240
Noncontrolling investors of USS	28,690
Balances	$ 139,930	$ 111,240

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Derivative Financial Instruments (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Gains or losses on derivative instruments, statement of income
Ineffectiveness - amount of gain (loss) recognized in income on related hedged items	$ (1,100,000)	$ (101,000)
Gain (loss) excluded from hedge effectiveness testing	(2,200,000)	$ 5,000,000
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	58,000
Net gains reclassified	283,000
Price Risk Cash Flow Hedge Unrealized Gain (Loss) to be Reclassified During Next 12 Months	$ 170,000
Period Within Which The Company Expects To Reclassify Net Gains On Derivative Instruments From A O C I to Earnings	12 months
Futures | Commodity contract | Other current assets
Commodity contract commitments
Fair value of derivatives including required margin deposits	$ 3,700,000		$ 4,900,000

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Derivative Financial Instruments (Schedule of Notional Amounts of Outstanding Derivative Positions) (Details) - Futures	3 Months Ended
	Mar. 31, 2019 T
Aluminum | Long
Derivative [Line Items]
Commodity contract (in MT/Lbs)	3,075
Aluminum | Short
Derivative [Line Items]
Commodity contract (in MT/Lbs)	5,925
Copper | Long
Derivative [Line Items]
Commodity contract (in MT/Lbs)	12,440
Copper | Short
Derivative [Line Items]
Commodity contract (in MT/Lbs)	22,759

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Derivative Financial Instruments (Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Commodity futures, asset derivatives	$ 2,032	$ 4,558
Commodity futures, liability derivatives	2,820	3,890
Futures | Commodity contract | Designated as hedging instrument | Other current assets
Commodity futures, asset derivatives	552	2,999
Commodity futures, liability derivatives	1,068	1,837
Futures | Commodity contract | Not designated as hedging instrument | Other current assets
Commodity futures, asset derivatives	1,480	1,559
Commodity futures, liability derivatives	$ 1,752	$ 2,053

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Derivative Financial Instruments (Schedule of Derivatives Instruments Statements of Financial Position) (Details) - Commodity contract - Cost of goods sold - Futures - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Designated as hedging instrument
Amount of gain (loss) recognized in income on derivatives	$ (1,453)	$ 8,516
Amount of gain (loss) recognized in income on related hedged items	(778)	(3,389)
Not designated as hedging instrument
Amount of gain (loss) recognized in income on derivatives	(4,077)	2,756
Firm commitments | Designated as hedging instrument
Amount of gain (loss) recognized in income on related hedged items	(1,499)	(793)
Inventory | Designated as hedging instrument
Amount of gain (loss) recognized in income on related hedged items	$ 721	$ (2,596)

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Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets and liabilities subject to fair value measurements
Short-term Investments	$ 173,723	$ 228,783
Commodity futures - financial assets	2,032	4,558
Commodity futures - financial liabilities	2,820	3,890
Outstanding Balance	2,500,000	2,400,000
Fair Value, Inputs, Level 2 [Member]
Assets and liabilities subject to fair value measurements
Short-term Investments	173,723	228,783
Fair value of long-term debt, including current maturities	2,500,000	2,400,000
Futures | Recurring | Commodity contract
Assets and liabilities subject to fair value measurements
Commodity futures - financial assets	2,032	4,558
Commodity futures - financial liabilities	2,820	3,890
Futures | Recurring | Fair Value, Inputs, Level 2 [Member] | Commodity contract
Assets and liabilities subject to fair value measurements
Commodity futures - financial assets	2,032	4,558
Commodity futures - financial liabilities	$ 2,820	$ 3,890

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Segment Information - Results (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Segment Reporting Information
Net sales	$ 2,817,435	$ 2,603,875
Operating income (loss)	291,842	323,397
Income (loss) before income taxes	267,063	295,964
Depreciation and amortization	80,174	76,135
Capital expenditures	54,436	50,606
Assets	7,857,233		$ 7,703,563
U.S.
Segment Reporting Information
Net sales	2,671,893	2,456,083
Non-U.S.
Segment Reporting Information
Net sales	145,542	147,792
Operating Segment | Steel Operations
Segment Reporting Information
Net sales	2,200,165	1,981,774
Operating income (loss)	309,078	334,562
Income (loss) before income taxes	293,019	315,805
Depreciation and amortization	62,512	59,141
Capital expenditures	43,676	38,402
Assets	5,378,536
Operating Segment | Steel Operations | Other segments
Segment Reporting Information
Net sales	75,595	59,985
Operating Segment | Steel Operations | U.S.
Segment Reporting Information
Net sales	2,044,491	1,832,303
Operating Segment | Steel Operations | Non-U.S.
Segment Reporting Information
Net sales	80,079	89,486
Operating Segment | Metals Recycling Operations
Segment Reporting Information
Net sales	737,045	752,766
Operating income (loss)	16,962	24,715
Income (loss) before income taxes	15,505	23,005
Depreciation and amortization	11,439	11,558
Capital expenditures	6,642	6,946
Assets	982,844
Operating Segment | Metals Recycling Operations | Other segments
Segment Reporting Information
Net sales	385,908	364,644
Operating Segment | Metals Recycling Operations | U.S.
Segment Reporting Information
Net sales	285,725	329,872
Operating Segment | Metals Recycling Operations | Non-U.S.
Segment Reporting Information
Net sales	65,412	58,250
Operating Segment | Steel Fabrication Operations
Segment Reporting Information
Net sales	228,669	201,703
Operating income (loss)	20,623	19,791
Income (loss) before income taxes	19,351	18,457
Depreciation and amortization	2,967	2,898
Capital expenditures	1,993	2,077
Assets	407,576
Operating Segment | Steel Fabrication Operations | Other segments
Segment Reporting Information
Net sales	189	210
Operating Segment | Steel Fabrication Operations | U.S.
Segment Reporting Information
Net sales	228,429	201,437
Operating Segment | Steel Fabrication Operations | Non-U.S.
Segment Reporting Information
Net sales	51	56
Operating Segment | Other
Segment Reporting Information
Net sales	113,496	92,618
Operating income (loss)	(56,920)	(55,406)
Income (loss) before income taxes	(62,696)	(61,033)
Depreciation and amortization	3,256	2,538
Capital expenditures	2,125	3,181
Assets	1,170,832
Operating Segment | Other | Other segments
Segment Reporting Information
Net sales	248	147
Operating Segment | Other | U.S.
Segment Reporting Information
Net sales	113,248	92,471
Eliminations
Segment Reporting Information
Net sales	(461,940)	(424,986)
Operating income (loss)	2,099	(265)
Income (loss) before income taxes	1,884	(270)
Assets	(82,555)
Eliminations | Other segments
Segment Reporting Information
Net sales	$ (461,940)	$ (424,986)

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Segment Information - Results Footnote (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Operating income (loss)
Corporate SG & A	$ (111,038)	$ (106,431)
Profit sharing	(23,677)	(26,662)
Operating income (loss)	291,842	323,397
Assets
Accounts receivable	1,143,395		$ 1,043,756
Cash and equivalents	791,444		828,220
Short-term Investments	173,723		228,783
Inventories	1,867,700		1,859,168
Property, plant and equipment, net	2,936,893		2,945,767
Other Assets, Noncurrent	97,419		25,166
Total assets	7,857,233		$ 7,703,563
Operating Segment | Other
Operating income (loss)
Corporate SG & A	(22,600)	(15,700)
Company-wide equity-based compensation	(9,000)	(8,500)
Profit sharing	(23,000)	(25,600)
Other, net	(2,300)	(5,600)
Operating income (loss)	(56,920)	(55,406)
Assets
Cash and equivalents	756,900
Short-term Investments	153,700
Accounts receivable	12,200
Inventories	36,100
Property, plant and equipment, net	152,600
Intra Company Debt	10,800
Other Assets, Noncurrent	48,500
Total assets	1,170,832
Operating Segment | Metals Recycling Operations
Operating income (loss)
Operating income (loss)	16,962	24,715
Assets
Total assets	982,844
Eliminations
Operating income (loss)
Operating income (loss)	2,099	$ (265)
Assets
Accounts receivable	(59,500)
Intra Company Debt	10,800
Other Assets, Noncurrent	(12,300)
Total assets	$ (82,555)

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Condensed Consolidating Information - Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Condensed Consolidating Balance Sheets
Cash and equivalents	$ 791,444	$ 828,220
Short-term Investments	173,723	228,783
Accounts receivable, net	1,143,395	1,043,756
Inventories	1,867,700	1,859,168
Other current assets	52,628	72,730
Total current assets	4,028,890	4,032,657
Property, plant and equipment, net	2,936,893	2,945,767
Intangible assets, net	263,315	270,328
Goodwill	530,716	429,645
Other assets, including investments in subs	97,419	25,166
Total assets	7,857,233	7,703,563
Accounts payable	591,467	550,754
Accrued expenses	330,665	444,149
Current maturities of long-term debt	80,958	24,234
Total current liabilities	1,003,090	1,019,137
Long-term debt	2,354,427	2,352,489
Other liabilities	510,258	444,708
Total liabilities	3,867,775	3,816,334
Redeemable noncontrolling interests	139,930	111,240
Common stock	645	645
Treasury stock	(1,261,837)	(1,184,243)
Additional paid-in capital	1,160,139	1,160,048
Retained earnings (deficit)	4,109,034	3,958,320
Accumulated other comprehensive income (loss)	130	301
Total Steel Dynamics, Inc. equity	4,008,111	3,935,071
Noncontrolling interests	(158,583)	(159,082)
Total equity	3,849,528	3,775,989	$ 3,312,137	$ 3,195,068
Total liabilities and equity	7,857,233	7,703,563
Parent
Condensed Consolidating Balance Sheets
Cash and equivalents	755,014	809,763
Short-term Investments	153,723	198,783
Accounts receivable, net	344,209	340,439
Inventories	786,300	793,174
Other current assets	38,977	56,578
Total current assets	2,078,223	2,198,737
Property, plant and equipment, net	870,626	871,482
Other assets, including investments in subs	2,934,875	2,862,556
Total assets	5,883,724	5,932,775
Accounts payable	197,481	209,156
Accrued expenses	200,512	296,528
Current maturities of long-term debt	809	793
Total current liabilities	398,802	506,477
Long-term debt	2,328,859	2,327,798
Other liabilities	(852,048)	(836,571)
Total liabilities	1,875,613	1,997,704
Common stock	645	645
Treasury stock	(1,261,837)	(1,184,243)
Additional paid-in capital	1,160,139	1,160,048
Retained earnings (deficit)	4,109,034	3,958,320
Accumulated other comprehensive income (loss)	130	301
Total Steel Dynamics, Inc. equity	4,008,111	3,935,071
Total equity	4,008,111	3,935,071
Total liabilities and equity	5,883,724	5,932,775
Guarantors
Condensed Consolidating Balance Sheets
Cash and equivalents	26,067	13,491
Short-term Investments	20,000	30,000
Accounts receivable, net	1,727,028	1,635,168
Inventories	1,010,636	1,038,702
Other current assets	17,243	18,627
Total current assets	2,800,974	2,735,988
Property, plant and equipment, net	1,905,151	1,918,198
Intangible assets, net	263,315	270,328
Goodwill	428,798	429,645
Other assets, including investments in subs	59,075	5,593
Total assets	5,457,313	5,359,752
Accounts payable	376,400	330,156
Accrued expenses	275,807	295,668
Current maturities of long-term debt	1,116	1,355
Total current liabilities	653,323	627,179
Long-term debt		381
Other liabilities	1,398,528	1,447,464
Total liabilities	2,051,851	2,075,024
Common stock	1,727,859	1,727,859
Additional paid-in capital	683,048	683,048
Retained earnings (deficit)	994,555	873,821
Total Steel Dynamics, Inc. equity	3,405,462	3,284,728
Total equity	3,405,462	3,284,728
Total liabilities and equity	5,457,313	5,359,752
Combined Non-Guarantors
Condensed Consolidating Balance Sheets
Cash and equivalents	10,363	4,966
Accounts receivable, net	71,953	26,655
Inventories	84,420	39,214
Other current assets	3,331	3,994
Total current assets	170,067	74,829
Property, plant and equipment, net	161,116	156,087
Goodwill	101,918
Other assets, including investments in subs	5,850	5,557
Total assets	438,951	236,473
Accounts payable	94,697	74,353
Accrued expenses	17,763	11,171
Current maturities of long-term debt	104,574	51,079
Total current liabilities	217,034	136,603
Long-term debt	166,353	166,226
Other liabilities	33,483	31,791
Total liabilities	416,870	334,620
Redeemable noncontrolling interests	139,930	111,240
Common stock	15,016	15,016
Additional paid-in capital	787,572	695,502
Retained earnings (deficit)	(761,854)	(760,823)
Total Steel Dynamics, Inc. equity	40,734	(50,305)
Noncontrolling interests	(158,583)	(159,082)
Total equity	(117,849)	(209,387)
Total liabilities and equity	438,951	236,473
Consolidating Adjustments
Condensed Consolidating Balance Sheets
Accounts receivable, net	(999,795)	(958,506)
Inventories	(13,656)	(11,922)
Other current assets	(6,923)	(6,469)
Total current assets	(1,020,374)	(976,897)
Other assets, including investments in subs	(2,902,381)	(2,848,540)
Total assets	(3,922,755)	(3,825,437)
Accounts payable	(77,111)	(62,911)
Accrued expenses	(163,417)	(159,218)
Current maturities of long-term debt	(25,541)	(28,993)
Total current liabilities	(266,069)	(251,122)
Long-term debt	(140,785)	(141,916)
Other liabilities	(69,705)	(197,976)
Total liabilities	(476,559)	(591,014)
Common stock	(1,742,875)	(1,742,875)
Additional paid-in capital	(1,470,620)	(1,378,550)
Retained earnings (deficit)	(232,701)	(112,998)
Total Steel Dynamics, Inc. equity	(3,446,196)	(3,234,423)
Total equity	(3,446,196)	(3,234,423)
Total liabilities and equity	$ (3,922,755)	$ (3,825,437)

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Condensed Consolidating Information - Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Condensed Consolidating Statements of Operations
Net sales	$ 2,817,435	$ 2,603,875
Costs of goods sold	2,383,865	2,140,459
Gross profit	433,570	463,416
Selling, general and administrative	141,728	140,019
Operating income	291,842	323,397
Interest expense, net of capitalized interest	31,122	31,896
Other (income) expense, net	(6,343)	(4,463)
Income before income taxes	267,063	295,964
Income taxes	62,236	70,489
Net income	204,827	225,475
Net (income) loss attributable to noncontrolling interests	(499)	2,076
Net income attributable to Steel Dynamics, Inc.	204,328	227,551
Parent
Condensed Consolidating Statements of Operations
Net sales	1,124,735	1,036,674
Costs of goods sold	905,995	819,145
Gross profit	218,740	217,529
Selling, general and administrative	69,006	62,927
Operating income	149,734	154,602
Interest expense, net of capitalized interest	18,654	18,623
Other (income) expense, net	(7,400)	(5,203)
Income before income taxes	138,480	141,182
Income taxes	30,764	29,746
Net income	107,716	111,436
Equity in net income of subsidiaries	96,612	116,115
Net income attributable to Steel Dynamics, Inc.	204,328	227,551
Guarantors
Condensed Consolidating Statements of Operations
Net sales	3,110,229	2,823,129
Costs of goods sold	2,865,989	2,551,620
Gross profit	244,240	271,509
Selling, general and administrative	74,583	76,952
Operating income	169,657	194,557
Interest expense, net of capitalized interest	11,766	12,437
Other (income) expense, net	(1,377)	(1,697)
Income before income taxes	159,268	183,817
Income taxes	38,534	45,720
Net income	120,734	138,097
Net income attributable to Steel Dynamics, Inc.	120,734	138,097
Combined Non-Guarantors
Condensed Consolidating Statements of Operations
Net sales	171,883	152,587
Costs of goods sold	165,460	148,630
Gross profit	6,423	3,957
Selling, general and administrative	3,930	5,597
Operating income	2,493	(1,640)
Interest expense, net of capitalized interest	3,214	3,540
Other (income) expense, net	(292)	(273)
Income before income taxes	(429)	(4,907)
Income taxes	103	909
Net income	(532)	(5,816)
Net (income) loss attributable to noncontrolling interests	(499)	2,076
Net income attributable to Steel Dynamics, Inc.	(1,031)	(3,740)
Consolidating Adjustments
Condensed Consolidating Statements of Operations
Net sales	(1,589,412)	(1,408,515)
Costs of goods sold	(1,553,579)	(1,378,936)
Gross profit	(35,833)	(29,579)
Selling, general and administrative	(5,791)	(5,457)
Operating income	(30,042)	(24,122)
Interest expense, net of capitalized interest	(2,512)	(2,704)
Other (income) expense, net	2,726	2,710
Income before income taxes	(30,256)	(24,128)
Income taxes	(7,165)	(5,886)
Net income	(23,091)	(18,242)
Equity in net income of subsidiaries	(96,612)	(116,115)
Net income attributable to Steel Dynamics, Inc.	$ (119,703)	$ (134,357)

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Condensed Consolidating Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Condensed Consolidating Statements of Cash Flows
Net cash provided by operating activities	$ 181,553	$ 177,935
Net cash used in investing activities	(92,424)	(90,377)
Accumulated other comprehensive loss	(126,304)	(131,222)
Decrease in cash, cash equivalents, and restricted cash	(37,175)	(43,664)
Cash, cash equivalents, and restricted cash at beginning of period	834,423	1,035,085
Cash, cash equivalents, and restricted cash at end of period	797,248	991,421
Parent
Condensed Consolidating Statements of Cash Flows
Net cash provided by operating activities	38,735	9,009
Net cash used in investing activities	(71,294)	(60,919)
Accumulated other comprehensive loss	(22,190)	18,920
Decrease in cash, cash equivalents, and restricted cash	(54,749)	(32,990)
Cash, cash equivalents, and restricted cash at beginning of period	809,763	1,002,230
Cash, cash equivalents, and restricted cash at end of period	755,014	969,240
Guarantors
Condensed Consolidating Statements of Cash Flows
Net cash provided by operating activities	151,815	149,336
Net cash used in investing activities	(16,183)	(24,517)
Accumulated other comprehensive loss	(123,429)	(135,966)
Decrease in cash, cash equivalents, and restricted cash	12,203	(11,147)
Cash, cash equivalents, and restricted cash at beginning of period	14,368	20,740
Cash, cash equivalents, and restricted cash at end of period	26,571	9,593
Combined Non-Guarantors
Condensed Consolidating Statements of Cash Flows
Net cash provided by operating activities	(4,520)	21,283
Net cash used in investing activities	(365)	(2,997)
Accumulated other comprehensive loss	10,256	(17,813)
Decrease in cash, cash equivalents, and restricted cash	5,371	473
Cash, cash equivalents, and restricted cash at beginning of period	10,292	12,115
Cash, cash equivalents, and restricted cash at end of period	15,663	12,588
Consolidating Adjustments
Condensed Consolidating Statements of Cash Flows
Net cash provided by operating activities	(4,477)	(1,693)
Net cash used in investing activities	(4,582)	(1,944)
Accumulated other comprehensive loss	$ 9,059	$ 3,637