Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Steel Dynamics Inc., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Current income tax expense	643,639)	88,914)	149,106)	304,726)	269,387)
Deferred income tax expense (benefit)	318,617)	45,736)	48,331)	59,243)	(139,948)
Income tax expense	962,256)	134,650)	197,437)	363,969)	129,439)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
Current income tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Steel Dynamics Inc. current income tax expense decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Deferred income tax expense (benefit)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Steel Dynamics Inc. deferred income tax expense (benefit) decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Income tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Steel Dynamics Inc. income tax expense decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Steel Dynamics Inc., effective income tax rate (EITR) reconciliation

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Statutory federal tax rate	21.00%	21.00%	21.00%	21.00%	35.00%
State income taxes, net of federal benefit	2.50%	2.60%	2.10%	2.60%	1.40%
Release of valuation allowance	0.00%	-2.90%	0.00%	0.00%	0.00%
Noncontrolling interests	0.00%	0.00%	0.00%	0.00%	0.30%
Audit settlements	0.00%	0.00%	0.00%	-0.30%	0.00%
Federal research & development credits	-0.70%	-2.10%	-0.60%	-0.30%	0.00%
Domestic manufacturing deduction	0.00%	0.00%	0.00%	0.00%	-2.60%
Other permanent differences	0.10%	0.50%	0.10%	-0.50%	-1.00%
Effective tax rate, before impact from Tax Reform	22.90%	19.10%	22.60%	22.50%	33.10%
Impact from Tax Reform	0.00%	0.00%	0.00%	0.00%	-19.30%
Effective tax rate	22.90%	19.10%	22.60%	22.50%	13.80%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
Effective tax rate, before impact from Tax Reform	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Steel Dynamics Inc. effective tax rate, before impact from Tax Reform decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Steel Dynamics Inc., components of deferred tax assets and liabilities

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Accrued expenses and allowances	24,324)	22,912)	19,731)	19,020)	16,322)
Inventories	9,088)	5,670)	5,599)	9,599)	4,109)
Net operating loss carryforwards	20,333)	25,089)	27,541)	30,109)	33,693)
Other	8,776)	7,077)	8,020)	7,639)	8,074)
Gross deferred tax assets	62,521)	60,748)	60,891)	66,367)	62,198)
Valuation allowance	(805)	(805)	(21,958)	(21,788)	(20,714)
Net deferred tax assets	61,716)	59,943)	38,933)	44,579)	41,484)
Property, plant and equipment	(846,942)	(538,746)	(487,634)	(455,935)	(344,511)
Intangible assets	(62,339)	(51,835)	(33,322)	(22,748)	(1,292)
Other	(7,340)	(5,650)	(2,146)	(1,734)	(1,630)
Deferred tax liabilities	(916,621)	(596,231)	(523,102)	(480,417)	(347,433)
Net deferred tax asset (liability)	(854,905)	(536,288)	(484,169)	(435,838)	(305,949)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Steel Dynamics Inc. gross deferred tax assets decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Net deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Steel Dynamics Inc. net deferred tax assets increased from 2019 to 2020 and from 2020 to 2021.
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Steel Dynamics Inc. net deferred tax asset (liability) decreased from 2019 to 2020 and from 2020 to 2021.

Steel Dynamics Inc., deferred tax assets and liabilities, classification

US$ in thousands

		Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
	Deferred tax liabilities	854,905)	536,288)	484,169)	435,838)	305,949)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

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Item	Description	The company
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Steel Dynamics Inc. deferred tax liabilities increased from 2019 to 2020 and from 2020 to 2021.

Steel Dynamics Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Adjustment to Total Liabilities
Total liabilities (as reported)	6,211,063)	4,917,336)	4,210,910)	3,816,334)	3,549,424)
Less: Noncurrent deferred tax liabilities, net	854,905)	536,288)	484,169)	435,838)	305,949)
Total liabilities (adjusted)	5,356,158)	4,381,048)	3,726,741)	3,380,496)	3,243,475)
Adjustment to Total Steel Dynamics, Inc. Equity
Total Steel Dynamics, Inc. equity (as reported)	6,304,641)	4,345,164)	4,075,834)	3,935,071)	3,351,574)
Less: Net deferred tax assets (liabilities)	(854,905)	(536,288)	(484,169)	(435,838)	(305,949)
Total Steel Dynamics, Inc. equity (adjusted)	7,159,546)	4,881,452)	4,560,003)	4,370,909)	3,657,523)
Adjustment to Net Income Attributable To Steel Dynamics, Inc.
Net income attributable to Steel Dynamics, Inc. (as reported)	3,214,066)	550,822)	671,103)	1,258,379)	812,741)
Add: Deferred income tax expense (benefit)	318,617)	45,736)	48,331)	59,243)	(139,948)
Net income attributable to Steel Dynamics, Inc. (adjusted)	3,532,683)	596,558)	719,434)	1,317,622)	672,793)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Steel Dynamics Inc., Financial Data: Reported vs. Adjusted

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Steel Dynamics Inc., adjusted financial ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net Profit Margin
Reported net profit margin	17.46%	5.74%	6.41%	10.64%	8.52%
Adjusted net profit margin	19.19%	6.21%	6.87%	11.15%	7.05%
Financial Leverage
Reported financial leverage	1.99	2.13	2.03	1.96	2.05
Adjusted financial leverage	1.75	1.90	1.81	1.76	1.87
Return on Equity (ROE)
Reported ROE	50.98%	12.68%	16.47%	31.98%	24.25%
Adjusted ROE	49.34%	12.22%	15.78%	30.15%	18.39%
Return on Assets (ROA)
Reported ROA	25.65%	5.94%	8.11%	16.34%	11.85%
Adjusted ROA	28.19%	6.44%	8.69%	17.10%	9.81%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Steel Dynamics Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Steel Dynamics Inc. adjusted financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Steel Dynamics Inc. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Steel Dynamics Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Steel Dynamics Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Steel Dynamics, Inc.	3,214,066)	550,822)	671,103)	1,258,379)	812,741)
Net sales	18,408,850)	9,601,482)	10,464,991)	11,821,839)	9,538,797)
Profitability Ratio
Net profit margin¹	17.46%	5.74%	6.41%	10.64%	8.52%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Steel Dynamics, Inc.	3,532,683)	596,558)	719,434)	1,317,622)	672,793)
Net sales	18,408,850)	9,601,482)	10,464,991)	11,821,839)	9,538,797)
Profitability Ratio
Adjusted net profit margin²	19.19%	6.21%	6.87%	11.15%	7.05%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Net profit margin = 100 × Net income attributable to Steel Dynamics, Inc. ÷ Net sales
= 100 × 3,214,066 ÷ 18,408,850 = 17.46%

² Adjusted net profit margin = 100 × Adjusted net income attributable to Steel Dynamics, Inc. ÷ Net sales
= 100 × 3,532,683 ÷ 18,408,850 = 19.19%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Steel Dynamics Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets	12,531,234)	9,265,562)	8,275,765)	7,703,563)	6,855,732)
Total Steel Dynamics, Inc. equity	6,304,641)	4,345,164)	4,075,834)	3,935,071)	3,351,574)
Solvency Ratio
Financial leverage¹	1.99	2.13	2.03	1.96	2.05
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Total assets	12,531,234)	9,265,562)	8,275,765)	7,703,563)	6,855,732)
Adjusted total Steel Dynamics, Inc. equity	7,159,546)	4,881,452)	4,560,003)	4,370,909)	3,657,523)
Solvency Ratio
Adjusted financial leverage²	1.75	1.90	1.81	1.76	1.87

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ Financial leverage = Total assets ÷ Total Steel Dynamics, Inc. equity
= 12,531,234 ÷ 6,304,641 = 1.99

² Adjusted financial leverage = Total assets ÷ Adjusted total Steel Dynamics, Inc. equity
= 12,531,234 ÷ 7,159,546 = 1.75

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Steel Dynamics Inc. adjusted financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Steel Dynamics, Inc.	3,214,066)	550,822)	671,103)	1,258,379)	812,741)
Total Steel Dynamics, Inc. equity	6,304,641)	4,345,164)	4,075,834)	3,935,071)	3,351,574)
Profitability Ratio
ROE¹	50.98%	12.68%	16.47%	31.98%	24.25%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Steel Dynamics, Inc.	3,532,683)	596,558)	719,434)	1,317,622)	672,793)
Adjusted total Steel Dynamics, Inc. equity	7,159,546)	4,881,452)	4,560,003)	4,370,909)	3,657,523)
Profitability Ratio
Adjusted ROE²	49.34%	12.22%	15.78%	30.15%	18.39%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROE = 100 × Net income attributable to Steel Dynamics, Inc. ÷ Total Steel Dynamics, Inc. equity
= 100 × 3,214,066 ÷ 6,304,641 = 50.98%

² Adjusted ROE = 100 × Adjusted net income attributable to Steel Dynamics, Inc. ÷ Adjusted total Steel Dynamics, Inc. equity
= 100 × 3,532,683 ÷ 7,159,546 = 49.34%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Steel Dynamics Inc. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income attributable to Steel Dynamics, Inc.	3,214,066)	550,822)	671,103)	1,258,379)	812,741)
Total assets	12,531,234)	9,265,562)	8,275,765)	7,703,563)	6,855,732)
Profitability Ratio
ROA¹	25.65%	5.94%	8.11%	16.34%	11.85%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to Steel Dynamics, Inc.	3,532,683)	596,558)	719,434)	1,317,622)	672,793)
Total assets	12,531,234)	9,265,562)	8,275,765)	7,703,563)	6,855,732)
Profitability Ratio
Adjusted ROA²	28.19%	6.44%	8.69%	17.10%	9.81%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

2021 Calculations

¹ ROA = 100 × Net income attributable to Steel Dynamics, Inc. ÷ Total assets
= 100 × 3,214,066 ÷ 12,531,234 = 25.65%

² Adjusted ROA = 100 × Adjusted net income attributable to Steel Dynamics, Inc. ÷ Total assets
= 100 × 3,532,683 ÷ 12,531,234 = 28.19%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Steel Dynamics Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Steel Dynamics Inc. (NASDAQ:STLD)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Steel Dynamics Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Steel Dynamics Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)