Segment Information

3 Months Ended

Mar. 31, 2024

Segment Information

Segment Information

Note 7. Segment Information

The company’s operations are primarily organized and managed by reportable operating segments. In the fourth quarter 2023, the company changed its reportable segments, consistent with how it currently manages the business, which include steel operations (including warehousing operations previously included in “Other”), metals recycling operations, steel fabrication operations, and a newly created aluminum 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 certain joint ventures 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, with prior periods recast consistent with our current reportable segments presentation, 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		Aluminum
March 31, 2024	Operations		Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
External	$	3,133,610	$	390,923	$	446,096	$	-	$	307,859		$	-		$	4,278,488
External Non-U.S.		232,627		178,550		1,083		-		3,255			-			415,515
Other segments		148,291		524,568		4,584		-		-			(677,443)			-
		3,514,528		1,094,041		451,763		-		311,114			(677,443)			4,694,003
Operating income (loss)		670,931		18,728		178,340		(13,531)		(97,872)	(1)		(5,621)			750,975
Income (loss) before income taxes		674,812		21,509		178,367		(13,811)		(89,073)			(6,023)			765,781
Depreciation and amortization		87,507		18,470		2,682		20		6,573			-			115,252
Capital expenditures		95,833		31,864		5,436		237,328		3,849			-			374,310
As of March 31, 2024
Assets	$	8,890,778	$	1,507,536	$	768,832	$	1,606,906	$	3,121,797	(2)	$	(869,099)	(3)	$	15,026,750

Footnotes related to the three-month period ended March 31, 2024, segment results (in millions):
(1)	Corporate selling, general, & administrative expenses	$	(25.3)	(2)	Cash and equivalents	$	911.1
	Companywide equity-based compensation		(14.5)		Short-term and other investments		886.4
	Company profit sharing component		(63.0)		Accounts receivable		31.6
	Other, net		4.9		Inventories		59.3
		$	(97.9)		Property, plant and equipment, net		136.2
					Intra-company debt		789.7
					Investments in unconsolidated affiliates		214.4
					Other		93.1
						$	3,121.8
(3)	Elimination of intra-company receivables	$	(58.3)
	Elimination of intra-company debt		(789.7)
	Other		(21.1)
		$	(869.1)

Note 7. Segment Information (Continued)

			Metals		Steel
For the three-month period ended	Steel		Recycling		Fabrication		Aluminum
March 31, 2023	Operations		Operations		Operations		Operations		Other			Eliminations		Consolidated
Net sales - disaggregated revenue
External	$	2,847,248	$	382,803	$	868,702	$	-	$	352,267		$	-	$	4,451,020
External Non-U.S.		241,242		200,665		66		-		213			-		442,186
Other segments		83,209		578,459		36		-		-			(661,704)		-
		3,171,699		1,161,927		868,804		-		352,480			(661,704)		4,893,206
Operating income (loss)		341,908		39,688		551,272		(2,422)		(96,666)	(1)		1,580		835,360
Income (loss) before income taxes		343,089		45,549		551,412		(2,406)		(91,079)			1,224		847,789
Depreciation and amortization		84,532		14,365		2,331		-		6,466			-		107,694
Capital expenditures		120,628		19,697		4,496		74,820		6,678			-		226,319

Footnotes related to the three-month period ended March 31, 2023, segment results (in millions):
(1)	Corporate selling, general, & administrative expenses	$	(23.6)
	Companywide equity-based compensation		(13.6)
	Company profit sharing component		(68.9)
	Other, net		9.4
		$	(96.7)