Segment Information

6 Months Ended

Jun. 30, 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
June 30, 2024	Operations		Operations		Operations		Operations		Other			Eliminations			Consolidated
Net sales - disaggregated revenue
External	$	2,937,985	$	392,697	$	472,790	$	-	$	439,464		$	-		$	4,242,936
External Non-U.S.		194,247		193,735		42		-		1,674			-			389,698
Other segments		115,730		585,774		904		1,865		-			(704,273)			-
		3,247,962		1,172,206		473,736		1,865		441,138			(704,273)			4,632,634
Operating income (loss)		438,620		28,225		180,740		(19,248)		(73,935)	(1)		4,721			559,123
Income (loss) before income taxes		439,540		22,562		179,864		(20,829)		(37,543)			(18,482)			565,112
Depreciation and amortization		87,497		19,427		2,777		507		6,845			-			117,053
Capital expenditures		131,662		16,194		7,709		272,270		14,095			(22,764)			419,166
As of June 30, 2024
Assets	$	8,870,515	$	1,595,874	$	791,533	$	1,968,632	$	3,029,749	(2)	$	(1,195,046)	(3)	$	15,061,257

Footnotes related to the three-month period ended June 30, 2024, segment results (in millions):
(1)	Corporate selling, general, & administrative expenses	$	(24.7)	(2)	Cash and equivalents	$	706.8
	Companywide equity-based compensation		(12.6)		Short-term and other investments		654.0
	Company profit sharing component		(48.3)		Accounts receivable		43.3
	Other, net		11.7		Inventories		101.7
		$	(73.9)		Property, plant and equipment, net		136.6
					Intra-company debt		1,042.1
					Investments in unconsolidated affiliates		216.7
					Other		128.5
						$	3,029.7
(3)	Elimination of intra-company receivables	$	(118.6)
	Elimination of intra-company debt		(1,042.1)
	Other		(34.3)
		$	(1,195.0)

Note 7. Segment Information (Continued)

			Metals		Steel
For the three-month period ended	Steel		Recycling		Fabrication		Aluminum
June 30, 2023	Operations		Operations		Operations		Operations		Other			Eliminations		Consolidated
Net sales - disaggregated revenue
External	$	3,123,512	$	368,561	$	779,374	$	-	$	259,927		$	-	$	4,531,374
External Non-U.S.		326,043		223,812		35		-		366			-		550,256
Other segments		145,887		575,752		189		-		269			(722,097)		-
		3,595,442		1,168,125		779,598		-		260,562			(722,097)		5,081,630
Operating income (loss)		699,719		33,005		462,080		(3,410)		(120,970)	(1)		(6,689)		1,063,735
Income (loss) before income taxes		701,669		38,225		462,207		(3,387)		(117,299)			(7,099)		1,074,316
Depreciation and amortization		80,701		20,761		2,422		-		7,086			-		110,970
Capital expenditures		101,869		25,259		7,138		219,098		4,916			-		358,280

Footnotes related to the three-month period ended June 30, 2023, segment results (in millions):
(1)	Corporate selling, general, & administrative expenses	$	(22.6)
	Companywide equity-based compensation		(11.2)
	Company profit sharing component		(88.0)
	Other, net		0.8
		$	(121.0)

			Metals		Steel
For the six-month period ended	Steel		Recycling		Fabrication		Aluminum
June 30, 2024	Operations		Operations		Operations		Operations		Other			Eliminations		Consolidated
Net sales - disaggregated revenue
External	$	6,071,595	$	783,620	$	918,886	$	-	$	747,323		$	-	$	8,521,424
External Non-U.S.		426,874		372,285		1,125		-		4,929			-		805,213
Other segments		264,021		1,110,342		5,488		1,865		-			(1,381,716)		-
		6,762,490		2,266,247		925,499		1,865		752,252			(1,381,716)		9,326,637
Operating income (loss)		1,109,551		46,953		359,080		(32,779)		(171,807)	(1)		(900)		1,310,098
Income (loss) before income taxes		1,114,352		44,071		358,231		(34,640)		(126,616)			(24,505)		1,330,893
Depreciation and amortization		175,004		37,897		5,459		527		13,418			-		232,305
Capital expenditures		227,495		48,058		13,145		509,598		17,944			(22,764)		793,476

Footnotes related to the six-month period ended June 30, 2024, segment results (in millions):
(1)	Corporate selling, general, & administrative expenses	$	(50.0)
	Companywide equity-based compensation		(27.1)
	Company profit sharing component		(111.3)
	Other, net		16.6
		$	(171.8)

Note 7. Segment Information (Continued)

			Metals		Steel
For the six-month period ended	Steel		Recycling		Fabrication		Aluminum
June 30, 2023	Operations		Operations		Operations		Operations		Other			Eliminations		Consolidated
Net sales - disaggregated revenue
External	$	5,970,760	$	751,364	$	1,648,076	$	-	$	612,194		$	-	$	8,982,394
External Non-U.S.		567,285		424,477		101		-		579			-		992,442
Other segments		229,096		1,154,211		225		-		269			(1,383,801)		-
		6,767,141		2,330,052		1,648,402		-		613,042			(1,383,801)		9,974,836
Operating income (loss)		1,041,627		72,693		1,013,352		(5,832)		(217,636)	(1)		(5,109)		1,899,095
Income (loss) before income taxes		1,044,758		83,774		1,013,619		(5,793)		(208,378)			(5,875)		1,922,105
Depreciation and amortization		165,233		35,126		4,753		-		13,552			-		218,664
Capital expenditures		222,497		44,956		11,634		293,918		11,594			-		584,599

Footnotes related to the six-month period ended June 30, 2023, segment results (in millions):
(1)	Corporate SG&A	$	(46.2)
	Companywide equity-based compensation		(24.8)
	Company profit sharing component		(156.9)
	Other, net		10.3
		$	(217.6)