Segment Information

3 Months Ended

Mar. 31, 2020

Segment Information

Segment Information

Note 8. 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 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 three months ended	Steel		Recycling		Fabrication
March 31, 2020	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
External	$	1,860,585	$	234,833	$	220,935	$	120,342		$	-		$	2,436,695
External Non-U.S.		81,121		57,024		-		260			-			138,405
Other segments		74,446		336,882		506		88			(411,922)			-
		2,016,152		628,739		221,441		120,690			(411,922)			2,575,100
Operating income (loss)		288,394		5,528		29,163		(46,355)	(1)		(3,044)			273,686
Income (loss) before income taxes		273,555		4,305		27,918		(54,240)			(3,282)	(2)		248,256
Depreciation and amortization		62,427		11,972		2,748		3,112			-			80,259
Capital expenditures		193,273		18,223		4,089		1,950			-			217,535
As of March 31, 2020
Assets	$	5,458,553	$	918,403	$	405,860	$	1,619,924	(3)	$	(57,817)	(4)	$	8,344,923

Footnotes related to the three months ended March 31, 2020, segment results (in millions):
(1)	Corporate SG&A	$	(17.2)	(2)	Gross profit decrease from intra-company sales	$	(3.3)
	Company-wide equity-based compensation		(8.2)
	Profit sharing		(21.3)
	Other, net		0.3
		$	(46.4)
(3)	Cash and equivalents	$	1,169.6	(4)	Elimination of intra-company receivables	$	(38.6)
	Short-term investments		219.2		Elimination of intra-company debt		(8.1)
	Accounts receivable		8.6		Other		(11.1)
	Inventories		21.1			$	(57.8)
	Property, plant and equipment, net		148.8
	Intra-company debt		8.1
	Other		44.5
		$	1,619.9

Note 8. Segment Information (Continued)

			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	(2)		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

Footnotes related to the three months ended March 31, 2019, segment results (in millions):
(1)	Corporate SG&A	$	(22.6)	(2)	Gross profit decrease from intra-company sales	$	(2.1)
	Company-wide equity-based compensation		(9.0)
	Profit sharing		(23.0)
	Other, net		(2.3)
		$	(56.9)