INVENTORIES: Inventories consisted of approximately 38% raw materials and supplies and 62% finished and semi-finished products at both July 2, 2016 and December 31, 2015. 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 44% of total inventories as of July 2, 2016 (48% as of December 31, 2015). If the first-in, first-out (FIFO) method of accounting had been used, inventories would have been $147.1 million higher at July 2, 2016 ($100.6 million higher at December 31, 2015). Use of the lower of cost or market methodology reduced inventories by $4.3 million at July 2, 2016 ($5.1 million at December 31, 2015).