Segment Information

3 Months Ended

Mar. 31, 2021

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.

Note 8. 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-month period ended	Steel		Recycling		Fabrication
March 31, 2021	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
External	$	2,400,916	$	363,878	$	256,962	$	304,251		$	-		$	3,326,007
External Non-U.S.		109,768		106,129		22		2,671			-			218,590
Other segments		132,163		609,905		2,036		559			(744,663)			-
		2,642,847		1,079,912		259,020		307,481			(744,663)			3,544,597
Operating income (loss)		637,411		50,563		9,854		(90,913)	(1)		(12,716)			594,199
Income (loss) before income taxes		626,059		49,339		9,064		(104,599)			(13,004)	(2)		566,859
Depreciation and amortization		66,178		13,870		2,675		4,196			-			86,919
Capital expenditures		282,598		23,918		2,621		726			-			309,863
As of March 31, 2021
Assets	$	7,053,904	$	1,260,615	$	443,138	$	1,487,620	(3)	$	(117,381)	(4)	$	10,127,896

Footnotes related to the three months ended March 31, 2021, segment results (in millions):
(1)	Corporate SG&A	$	(18.0)	(2)	Gross profit decrease from intra-company sales	$	(13.0)
	Companywide equity-based compensation		(23.0)
	Profit sharing		(48.1)
	Other, net		(1.8)
		$	(90.9)
(3)	Cash and equivalents	$	1,154.2	(4)	Elimination of intra-company receivables	$	(76.4)
	Accounts receivable		52.3		Elimination of intra-company debt		(11.7)
	Inventories		95.9		Other		(29.3)
	Property, plant and equipment, net		133.0			$	(117.4)
	Intra-company debt		11.7
	Other		40.5
		$	1,487.6

Note 8. Segment Information (Continued)

			Metals		Steel
For the three-month period 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

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)
	Companywide equity-based compensation		(8.2)
	Profit sharing		(21.3)
	Other, net		0.3
		$	(46.4)