Segment Information

9 Months Ended

Sep. 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
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
As of September 30, 2022
Assets	$	9,011,489	$	1,201,017	$	1,446,405	$	2,511,506	(2)	$	(122,719)	(3)	$	14,047,698

Footnotes related to the three-month period ended September 30, 2022, segment results (in millions):
(1)	Corporate SG&A	$	(15.5)	(2)	Cash and equivalents	$	1,230.8
	Companywide equity-based compensation		(14.6)		Short-term investments		583.2
	Company profit sharing component		(103.8)		Accounts receivable		28.1
	Other, net		(3.3)		Inventories		58.0
		$	(137.2)		Property, plant and equipment, net		280.8
					Intra-company debt		35.8
					Other		294.8
						$	2,511.5
(3)	Elimination of intra-company receivables	$	(50.5)
	Elimination of intra-company debt		(35.8)
	Other		(36.4)
		$	(122.7)

Note 9. Segment Information (Continued)

			Metals		Steel
For the three-month period ended	Steel		Recycling		Fabrication
September 30, 2021	Operations		Operations		Operations		Other			Eliminations		Consolidated
Net sales - disaggregated revenue
External	$	3,503,964	$	430,087	$	493,452	$	337,011		$	-	$	4,764,514
External Non-U.S.		163,754		157,005		352		2,663			-		323,774
Other segments		243,455		625,025		122		453			(869,055)		-
		3,911,173		1,212,117		493,926		340,127			(869,055)		5,088,288
Operating income (loss)		1,346,967		43,616		89,389		(138,576)	(1)		(19,351)		1,322,045
Income (loss) before income taxes		1,341,051		43,328		88,892		(150,992)			(19,714)		1,302,565
Depreciation and amortization		65,852		14,054		2,263		5,238			-		87,407
Capital expenditures		200,721		6,870		3,458		3,580			-		214,629

Footnotes related to the three-month period ended September 30, 2021, segment results (in millions):
(1)	Corporate SG&A	$	(17.0)
	Companywide equity-based compensation		(10.7)
	Company profit sharing component		(111.1)
	Other, net		0.2
		$	(138.6)

			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)

Note 9. Segment Information (Continued)

			Metals		Steel
For the nine-month period ended	Steel		Recycling		Fabrication
September 30, 2021	Operations		Operations		Operations		Other			Eliminations		Consolidated
Net sales - disaggregated revenue
External	$	8,991,273	$	1,243,837	$	1,081,123	$	960,953		$	-	$	12,277,186
External Non-U.S.		421,648		388,961		518		9,880			-		821,007
Other segments		535,541		1,810,337		3,020		2,125			(2,351,023)		-
		9,948,462		3,443,135		1,084,661		972,958			(2,351,023)		13,098,193
Operating income (loss)		2,997,375		141,775		127,652		(357,183)	(1)		(37,640)		2,871,979
Income (loss) before income taxes		2,970,465		141,063		125,827		(398,485)			(38,648)		2,800,222
Depreciation and amortization		198,170		41,994		7,344		13,865			-		261,373
Capital expenditures		740,569		38,112		9,156		13,861			-		801,698

Footnotes related to the nine-month period ended September 30, 2021, segment results (in millions):
(1)	Corporate SG&A	$	(53.2)
	Companywide equity-based compensation		(56.6)
	Company profit sharing component		(238.2)
	Other, net		(9.2)
		$	(357.2)