Segment Information

6 Months Ended

Jun. 30, 2022

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 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 the company’s profit sharing component.

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
June 30, 2022	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
External	$	3,929,646	$	476,093	$	1,085,710	$	330,574		$	-		$	5,822,023
External Non-U.S.		212,376		173,642		44		4,793			-			390,855
Other segments		104,594		706,247		4,444		372			(815,657)			-
		4,246,616		1,355,982		1,090,198		335,739			(815,657)			6,212,878
Operating income (loss)		1,102,725		54,443		599,191		(162,194)	(1)		23,898			1,618,063
Income (loss) before income taxes		1,086,795		53,446		596,763		(164,143)			23,556			1,596,417
Depreciation and amortization		73,962		13,021		2,433		6,285			-			95,701
Capital expenditures		135,864		15,199		4,569		8,510			-			164,142
As of June 30, 2022
Assets	$	9,305,567	$	1,371,995	$	1,475,131	$	1,710,915	(2)	$	(152,394)	(3)	$	13,711,214

Footnotes related to the three-month period ended June 30, 2022, segment results (in millions):
(1)	Corporate SG&A	$	(12.7)	(2)	Cash and equivalents	$	827.3
	Companywide equity-based compensation		(8.8)		Short-term investments		351.0
	Company profit sharing component		(136.7)		Accounts receivable		29.1
	Other, net		(4.0)		Inventories		82.0
		$	(162.2)		Property, plant and equipment, net		134.8
					Intra-company debt		29.5
					Other		257.2
						$	1,710.9
(3)	Elimination of intra-company receivables	$	(68.1)
	Elimination of intra-company debt		(29.5)
	Other		(54.8)
		$	(152.4)

Note 9. Segment Information (Continued)

			Metals		Steel
For the three-month period ended	Steel		Recycling		Fabrication
June 30, 2021	Operations		Operations		Operations		Other			Eliminations		Consolidated
Net sales - disaggregated revenue
External	$	3,086,393	$	449,872	$	330,709	$	319,691		$	-	$	4,186,665
External Non-U.S.		148,126		125,827		144		4,546			-		278,643
Other segments		159,923		575,407		862		1,113			(737,305)		-
		3,394,442		1,151,106		331,715		325,350			(737,305)		4,465,308
Operating income (loss)		1,012,997		47,596		28,409		(127,694)	(1)		(5,573)		955,735
Income (loss) before income taxes		1,003,355		48,396		27,871		(142,894)			(5,930)		930,798
Depreciation and amortization		66,140		14,070		2,406		4,431			-		87,047
Capital expenditures		257,250		7,324		3,077		9,555			-		277,206

Footnotes related to the three-month period ended June 30, 2021, segment results (in millions):
(1)	Corporate SG&A	$	(18.2)
	Companywide equity-based compensation		(22.9)
	Company profit sharing component		(79.0)
	Other, net		(7.6)
		$	(127.7)

			Metals		Steel
For the six-month period ended	Steel		Recycling		Fabrication
June 30, 2022	Operations		Operations		Operations		Other			Eliminations		Consolidated
Net sales - disaggregated revenue
External	$	7,502,848	$	924,136	$	2,015,552	$	627,695		$	-	$	11,070,231
External Non-U.S.		401,670		305,224		183		5,472			-		712,549
Other segments		273,751		1,269,839		4,563		1,030			(1,549,183)		-
		8,178,269		2,499,199		2,020,298		634,197			(1,549,183)		11,782,780
Operating income (loss)		2,265,735		99,403		1,066,066		(336,729)	(1)		18,455		3,112,930
Income (loss) before income taxes		2,239,011		99,176		1,061,962		(363,772)			17,770		3,054,147
Depreciation and amortization		140,644		26,275		4,863		11,465			-		183,247
Capital expenditures		272,054		26,756		8,259		16,403			-		323,472

Footnotes related to the six-month period ended June 30, 2022, segment results (in millions):
(1)	Corporate SG&A	$	(32.3)
	Companywide equity-based compensation		(24.7)
	Company profit sharing component		(262.3)
	Other, net		(17.4)
		$	(336.7)

Note 9. Segment Information (Continued)

			Metals		Steel
For the six-month period ended	Steel		Recycling		Fabrication
June 30, 2021	Operations		Operations		Operations		Other			Eliminations		Consolidated
Net sales - disaggregated revenue
External	$	5,487,309	$	813,750	$	587,671	$	623,942		$	-	$	7,512,672
External Non-U.S.		257,894		231,956		166		7,217			-		497,233
Other segments		292,086		1,185,312		2,898		1,672			(1,481,968)		-
		6,037,289		2,231,018		590,735		632,831			(1,481,968)		8,009,905
Operating income (loss)		1,650,408		98,159		38,263		(218,607)	(1)		(18,289)		1,549,934
Income (loss) before income taxes		1,629,414		97,735		36,935		(247,493)			(18,934)		1,497,657
Depreciation and amortization		132,318		27,940		5,081		8,627			-		173,966
Capital expenditures		539,848		31,242		5,698		10,281			-		587,069

Footnotes related to the six-month period ended June 30, 2021, segment results (in millions):
(1)	Corporate SG&A	$	(36.2)
	Companywide equity-based compensation		(45.9)
	Company profit sharing component		(127.1)
	Other, net		(9.4)
		$	(218.6)