Segment Information

9 Months Ended

Sep. 30, 2023

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 joint ventures, including the company’s aluminum flat roll mill and satellite slab centers and the idled 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-month period ended	Steel		Recycling		Fabrication
September 30, 2023	Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
External	$	2,904,204	$	334,922	$	630,045	$	247,123		$	-		$	4,116,294
External Non-U.S.		232,241		185,824		139		52,559			-			470,763
Other segments		124,622		531,559		3,023		172			(659,376)			-
		3,261,067		1,052,305		633,207		299,854			(659,376)			4,587,057
Operating income (loss)		470,335		13,981		330,020		(95,638)	(1)		14,852			733,550
Income (loss) before income taxes		472,051		15,319		329,554		(76,801)			14,476			754,599
Depreciation and amortization		81,517		17,195		2,448		6,258			-			107,418
Capital expenditures		111,843		83,858		5,581		357,079			-			558,361
As of September 30, 2023
Assets	$	8,665,334	$	1,475,378	$	972,462	$	3,947,177	(2)	$	(131,395)	(3)	$	14,928,956

Footnotes related to the three-month period ended September 30, 2023, segment results (in millions):
(1)	Corporate SG&A	$	(20.7)	(2)	Cash and equivalents	$	1,607.8
	Companywide equity-based compensation		(11.5)		Short-term and other investments		729.0
	Company profit sharing component		(63.6)		Accounts receivable		35.7
	Other, net		0.2		Inventories		126.6
		$	(95.6)		Property, plant and equipment, net		1,076.0
					Intra-company debt		37.0
					Investments in unconsolidated affiliates		238.2
					Other		96.9
						$	3,947.2
(3)	Elimination of intra-company receivables	$	(76.7)
	Elimination of intra-company debt		(37.0)
	Other		(17.7)
		$	(131.4)

Note 8. Segment Information (Continued)

			Metals		Steel
For the three-month period ended	Steel		Recycling		Fabrication
September 30, 2022	Operations		Operations		Operations		Other			Eliminations		Consolidated
Net sales - disaggregated revenue
External	$	3,512,202	$	328,187	$	1,140,272	$	314,104		$	-	$	5,294,765
External Non-U.S.		208,623		143,879		-		4,440			-		356,942
Other segments		152,719		512,559		5,554		-			(670,832)		-
		3,873,544		984,625		1,145,826		318,544			(670,832)		5,651,707
Operating income (loss)		654,677		6,735		676,726		(137,160)	(1)		18,866		1,219,844
Income (loss) before income taxes		646,426		5,415		674,718		(136,613)			18,526		1,208,472
Depreciation and amortization		76,453		12,932		2,454		6,875			-		98,714
Capital expenditures		131,753		11,137		4,975		93,364			-		241,229

Footnotes related to the three-month period ended September 30, 2022, segment results (in millions):
(1)	Corporate SG&A	$	(15.5)
	Companywide equity-based compensation		(14.6)
	Company profit sharing component		(103.8)
	Other, net		(3.3)
		$	(137.2)

			Metals		Steel
For the nine-month period ended	Steel		Recycling		Fabrication
September 30, 2023	Operations		Operations		Operations		Other			Eliminations		Consolidated
Net sales - disaggregated revenue
External	$	8,874,866	$	1,086,286	$	2,278,121	$	859,415		$	-	$	13,098,688
External Non-U.S.		719,909		610,301		240		132,755			-		1,463,205
Other segments		460,156		1,685,770		3,248		441			(2,149,615)		-
		10,054,931		3,382,357		2,281,609		992,611			(2,149,615)		14,561,893
Operating income (loss)		1,514,741		86,674		1,343,372		(315,389)	(1)		3,247		2,632,645
Income (loss) before income taxes		1,518,438		99,093		1,343,173		(286,104)			2,104		2,676,704
Depreciation and amortization		246,583		52,321		7,201		19,977			-		326,082
Capital expenditures		334,188		128,814		17,215		662,743			-		1,142,960

Footnotes related to the nine-month period ended September 30, 2023, segment results (in millions):
(1)	Corporate SG&A	$	(66.9)
	Companywide equity-based compensation		(36.3)
	Company profit sharing component		(220.5)
	Other, net		8.3
		$	(315.4)

Note 8. Segment Information (Continued)

			Metals		Steel
For the nine-month period ended	Steel		Recycling		Fabrication
September 30, 2022	Operations		Operations		Operations		Other			Eliminations		Consolidated
Net sales - disaggregated revenue
External	$	11,015,050	$	1,252,323	$	3,155,824	$	941,799		$	-	$	16,364,996
External Non-U.S.		610,293		449,103		183		9,912			-		1,069,491
Other segments		426,470		1,782,398		10,117		1,030			(2,220,015)		-
		12,051,813		3,483,824		3,166,124		952,741			(2,220,015)		17,434,487
Operating income (loss)		2,920,412		106,138		1,742,792		(473,889)	(1)		37,321		4,332,774
Income (loss) before income taxes		2,885,437		104,591		1,736,680		(500,385)			36,296		4,262,619
Depreciation and amortization		217,097		39,207		7,317		18,340			-		281,961
Capital expenditures		403,807		37,893		13,234		109,767			-		564,701

Footnotes related to the nine-month period ended September 30, 2022, segment results (in millions):
(1)	Corporate SG&A	$	(47.8)
	Companywide equity-based compensation		(39.3)
	Company profit sharing component		(366.1)
	Other, net		(20.7)
		$	(473.9)