Segment Information

6 Months Ended

Jun. 30, 2020

Segment Information

Segment Information

Note 9. 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.

Note 9. 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
June 30, 2020	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
External	$	1,578,252	$	126,818	$	214,951	$	94,274		$	-		$	2,014,295
External Non-U.S.		49,775		29,764		300		171			-			80,010
Other segments		71,371		260,106		3,177		-			(334,654)			-
		1,699,398		416,688		218,428		94,445			(334,654)			2,094,305
Operating income (loss)		168,043		(8,715)		27,155		(32,089)	(1)		4,456	(2)		158,850
Income (loss) before income taxes		151,012		(12,654)		25,959		(65,445)			4,173			103,045
Depreciation and amortization		60,686		12,170		2,737		3,128			-			78,721
Capital expenditures		301,179		3,821		2,364		2,352			-			309,716
As of June 30, 2020
Assets	$	5,533,365	$	867,866	$	397,070	$	1,718,951	(3)	$	(48,911)	(4)	$	8,468,341

Footnotes related to the three months ended June 30, 2020, segment results (in millions):
(1)	Corporate SG&A	$	(14.5)	(2)	Gross profit increase from intra-company sales	$	4.5
	Company-wide equity-based compensation		(9.7)
	Profit sharing		(8.2)
	Other, net		0.3
		$	(32.1)
(3)	Cash and equivalents	$	1,418.4	(4)	Elimination of intra-company receivables	$	(35.5)
	Short-term investments		69.5		Elimination of intra-company debt		(6.5)
	Accounts receivable		11.4		Other		(6.9)
	Inventories		26.9			$	(48.9)
	Property, plant and equipment, net		148.2
	Intra-company debt		6.5
	Other		38.1
		$	1,719.0

Note 9. Segment Information (Continued)

			Metals		Steel
For the three months ended	Steel		Recycling		Fabrication
June 30, 2019	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
External	$	2,040,756	$	262,826	$	240,439	$	99,641		$	-		$	2,643,662
External Non-U.S.		65,595		60,273		985		-			-			126,853
Other segments		81,834		333,667		-		121			(415,622)			-
		2,188,185		656,766		241,424		99,762			(415,622)			2,770,515
Operating income (loss)		291,411		7,619		30,664		(49,153)	(1)		4,491	(2)		285,032
Income (loss) before income taxes		274,155		6,500		29,466		(57,438)			4,277			256,960
Depreciation and amortization		63,150		11,525		2,974		3,262			-			80,911
Capital expenditures		43,575		12,173		3,019		26,353			-			85,120

Footnotes related to the three months ended June 30, 2019, segment results (in millions):
(1)	Corporate SG&A	$	(18.0)	(2)	Gross profit increase from intra-company sales	$	4.5
	Company-wide equity-based compensation		(8.4)
	Profit sharing		(21.3)
	Other, net		(1.5)
		$	(49.2)

			Metals		Steel
For the six months ended	Steel		Recycling		Fabrication
June 30, 2020	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
External	$	3,438,837	$	361,651	$	435,886	$	214,616		$	-		$	4,450,990
External Non-U.S.		130,896		86,788		300		431			-			218,415
Other segments		145,817		596,988		3,683		88			(746,576)			-
		3,715,550		1,045,427		439,869		215,135			(746,576)			4,669,405
Operating income (loss)		456,437		(3,187)		56,318		(78,444)	(1)		1,412	(2)		432,536
Income (loss) before income taxes		424,567		(8,349)		53,877		(119,685)			891			351,301
Depreciation and amortization		123,113		24,142		5,485		6,240			-			158,980
Capital expenditures		494,452		22,044		6,453		4,302			-			527,251

Footnotes related to the six months ended June 30, 2020, segment results (in millions):
(1)	Corporate SG&A	$	(31.7)	(2)	Gross profit increase from intra-company sales	$	1.4
	Company-wide equity-based compensation		(17.9)
	Profit sharing		(29.5)
	Other, net		0.7
		$	(78.4)

Note 9. Segment Information (Continued)

			Metals		Steel
For the six months ended	Steel		Recycling		Fabrication
June 30, 2019	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
External	$	4,085,247	$	548,551	$	468,868	$	212,889		$	-		$	5,315,555
External Non-U.S.		145,674		125,685		1,036		-			-			272,395
Other segments		157,429		719,575		189		369			(877,562)			-
		4,388,350		1,393,811		470,093		213,258			(877,562)			5,587,950
Operating income (loss)		600,489		24,581		51,287		(106,073)	(1)		6,590	(2)		576,874
Income (loss) before income taxes		567,174		22,005		48,817		(120,134)			6,161			524,023
Depreciation and amortization		125,662		22,964		5,941		6,518			-			161,085
Capital expenditures		87,251		18,815		5,012		28,478			-			139,556

Footnotes related to the six months ended June 30, 2019, segment results (in millions):
(1)	Corporate SG&A	$	(40.6)	(2)	Gross profit increase from intra-company sales	$	6.6
	Company-wide equity-based compensation		(17.4)
	Profit sharing		(44.3)
	Other, net		(3.8)
		$	(106.1)