INVENTORIES: Inventories consisted of approximately 42% raw materials and supplies and 58% finished and semi-finished products at October 3, 2015 (40% and 60%, respectively, at December 31, 2014). Nucor’s manufacturing process consists of a continuous, vertically integrated process from which products are sold to customers at various stages throughout the process. Since most steel products can be classified as either finished or semi-finished products, these two categories of inventory are combined.

Inventories valued using the last-in, first-out (LIFO) method of accounting represented approximately 47% of total inventories as of October 3, 2015 (43% as of December 31, 2014). If the first-in, first-out (FIFO) method of accounting had been used, inventories would have been $318.4 million higher at October 3, 2015 ($567.4 million higher at December 31, 2014). Use of the lower of cost or market methodology reduced inventories by $12.5 million at October 3, 2015 ($2.7 million at December 31, 2014).