Segment Information

12 Months Ended

Dec. 31, 2021

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 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, 2021	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
External	$	12,618,917	$	1,658,843	$	1,761,078	$	1,252,095		$	-		$	17,290,933
External Non-United States		580,225		524,629		569		12,494			-			1,117,917
Other segments		823,991		2,406,649		3,063		2,382			(3,236,085)			-
		14,023,133		4,590,121		1,764,710		1,266,971			(3,236,085)			18,408,850
Operating income (loss)		4,360,488		181,986		365,250		(551,725)	(1)		(54,894)			4,301,105
Income (loss) before income taxes		4,327,300		181,579		362,473		(606,021)			(56,261)	(2)		4,209,070
Depreciation and amortization		263,125		55,620		9,961		18,947			-			347,653
Capital expenditures		937,011		46,360		12,939		9,929			-			1,006,239
As of December 31, 2021
Assets	$	8,686,216	$	1,266,920	$	1,195,396	$	1,523,830	(3)	$	(141,128)	(4)	$	12,531,234

Note 13. Segment Information (Continued)

Footnotes related to the year ended December 31, 2021, segment results (in millions):
(1)	Corporate SG&A	$	(78.0)	(2)	Gross profit decrease from intra-company sales	$	(56.3)
	Company-wide equity-based compensation		(78.8)
	Profit sharing		(379.3)
	Other, net		(15.6)
		$	(551.7)
(3)	Cash and equivalents	$	1,088.8	(4)	Elimination of intra-company receivables	$	(48.9)
	Accounts receivable		27.5		Elimination of intra-company debt		(19.6)
	Inventories		94.2		Elimination of intra-company profit in inventory		(72.6)
	Property, plant and equipment, net		128.9			$	(141.1)
	Intra-company debt		19.6
	Other		164.8
		$	1,523.8

			Metals		Steel
For the year ended	Steel		Recycling		Fabrication
December 31, 2020	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
External	$	6,873,209	$	820,262	$	895,227	$	500,496		$	-		$	9,089,194
External Non-United States		263,895		247,662		474		257			-			512,288
Other segments		318,533		1,335,216		10,663		434			(1,664,846)			-
		7,455,637		2,403,140		906,364		501,187			(1,664,846)			9,601,482
Operating income (loss)		889,480		32,991		120,575		(188,525)	(1)		(7,379)			847,142
Income (loss) before income taxes		833,035		27,753		116,625		(263,470)			(8,465)	(2)		705,478
Depreciation and amortization		251,590		50,099		10,819		13,281			-			325,789
Capital expenditures		1,132,298		32,875		15,234		17,648			-			1,198,055
As of December 31, 2020
Assets	$	6,288,362	$	1,116,051	$	376,658	$	1,571,188	(3)	$	(86,697)	(4)	$	9,265,562

Footnotes related to the year ended December 31, 2020, segment results (in millions):
(1)	Corporate SG&A	$	(57.9)	(2)	Gross profit decrease from intra-company sales	$	(8.5)
	Company-wide equity-based compensation		(48.5)
	Profit sharing		(58.3)
	Asset impairment charges		(19.4)
	Other, net		(4.4)
		$	(188.5)
(3)	Cash and equivalents	$	1,276.1	(4)	Elimination of intra-company receivables	$	(61.2)
	Accounts receivable		17.0		Elimination of intra-company debt		(9.1)
	Inventories		84.7		Elimination of intra-company profit in inventory		(16.4)
	Property, plant and equipment, net		136.0			$	(86.7)
	Intra-company debt		9.1
	Other		48.3
		$	1,571.2

Note 13. Segment Information (Continued)

			Metals		Steel
For the year ended	Steel		Recycling		Fabrication
December 31, 2019	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
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

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)