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