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Segment Information

12 Months Ended

Dec. 31, 2019

Segment Information

Segment Information

Note 13. Segment Information

The company’s operations are primarily organized and managed by reportable operating segments, which are steel operations, metals recycling operations, and steel fabrication operations. The segment operations are more fully described in Note 1. Description of the Business and Summary of Significant Accounting Policies (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 the idle Minnesota ironmaking operations. Also included in “Other” are certain unallocated corporate accounts, such as the company’s senior unsecured credit facility, senior notes, certain other investments and certain profit sharing expenses.

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 year ended		Steel			Recycling			Fabrication
December 31, 2019		Operations			Operations			Operations			Other			Eliminations			Consolidated

Net Sales
External		$	7,606,471		$	972,200		$	960,657		$	388,546		$	-		$	9,927,874
External Non-United States			298,081			225,807			1,497			11,732			-			537,117
Other segments			329,627			1,296,007			1,105			469			(1,627,208)			-
			8,234,179			2,494,014			963,259			400,747			(1,627,208)			10,464,991
Operating income (loss)			1,030,554			16,308			119,099			(186,159)	⁽¹⁾		7,078			986,880
Income (loss) before income taxes			963,514			11,432			114,359			(220,188)			6,220	⁽²⁾		875,337
Depreciation and amortization			251,568			46,538			11,768			11,208			-			321,082
Capital expenditures			385,058			46,959			12,446			7,482			-			451,945

As of December 31, 2019

Assets		$	5,171,026		$	940,250		$	386,485		$	1,848,711	⁽³⁾	$	(70,707)	⁽⁴⁾	$	8,275,765

Note 13. Segment Information (Continued)


Footnotes related to the year ended December 31, 2019, segment results (in millions):

(1)	Corporate SG&A	$	(66.1)		(2)	Gross profit increase from intra-company sales	$	6.2
	Company-wide equity-based compensation		(40.6)
	Profit sharing		(73.6)
	Other, net		(5.9)
		$	(186.2)

(3)	Cash and equivalents	$	1,298.8		(4)	Elimination of intercompany receivables	$	(54.7)
	Short-term investments		262.2			Elimination of intra-company debt		(8.1)
	Accounts receivable		17.1			Other		(7.9)
	Inventories		37.0				$	(70.7)
	Property, plant and equipment, net		149.8
	Intra-company debt		8.1
	Other		75.7
		$	1,848.7



					Metals			Steel
For the year ended		Steel			Recycling			Fabrication
December 31, 2018		Operations			Operations			Operations			Other			Eliminations			Consolidated

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

As of December 31, 2018

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

Note 13. Segment Information (Continued)


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

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

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


					Metals			Steel
For the year ended		Steel			Recycling			Fabrication
December 31, 2017		Operations			Operations			Operations			Other			Eliminations			Consolidated

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


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

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