Segments

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segments

22. Segments

Nucor reports its results in the following segments: steel mills, steel products and raw materials. The steel mills segment includes carbon and alloy steel in sheet, bars, structural and plate; steel foundation distributors; tubular products businesses; steel trading businesses; rebar distribution businesses; and Nucor’s equity method investments in Duferdofin Nucor and NuMit. The steel products segment includes steel joists and joist girders, steel deck, fabricated concrete reinforcing steel, cold finished steel, steel fasteners, metal building systems, steel grating, and wire and wire mesh. The raw materials segment includes The David J. Joseph Company and its affiliates (DJJ), primarily a scrap broker and processor; Nu-Iron Unlimited and Nucor Steel Louisiana, two facilities that produce Direct Reduced Iron (DRI) used by the steel mills; our natural gas production operations; and Nucor’s equity method investment in Hunter Ridge. Nucor sold its 50% interest in Hunter Ridge during the third quarter of 2016. The steel mills, steel products and raw materials segments are consistent with the way Nucor manages its business, which is primarily based upon the similarity of the types of products produced and sold by each segment.

Net interest expense, other income, profit sharing expense and stock-based compensation are shown under Corporate/eliminations. Corporate assets primarily include cash and cash equivalents, short-term investments, allowances to eliminate intercompany profit in inventory, deferred income tax assets, federal and state income taxes receivable and investments in and advances to affiliates. The balance of Corporate assets at December 31, 2015 and 2014 was adjusted due to the adoption of new accounting guidance requiring the reclassification of debt issuance costs into liabilities in the first quarter of 2016 (see Note 2). The balance of Corporate assets and earnings (loss) before income taxes and noncontrolling interests as of and for the periods ending December 31, 2015 and 2014 was adjusted due to the change in accounting principle from LIFO to FIFO for certain inventories (see Note 2), as previously the impact of LIFO was recognized in Corporate/eliminations consistent with our internal reporting.

Nucor’s results by segment are as follows (in thousands):

	Year Ended December 31,
	2016			2015			2014
Net sales to external customers:
Steel mills	$	11,312,048		$	11,084,331		$	14,723,642
Steel products		3,687,448			3,966,895			4,032,385
Raw materials		1,208,626			1,388,050			2,349,114
	$	16,208,122		$	16,439,276		$	21,105,141
Intercompany sales:
Steel mills	$	2,070,077		$	2,152,157		$	2,904,317
Steel products		106,838			90,969			105,383
Raw materials		5,997,498			6,279,316			9,618,145
Corporate/eliminations		(8,174,413	)		(8,522,442	)		(12,627,845	)
	$	—		$	—		$	—
Depreciation expense:
Steel mills	$	377,627		$	381,352		$	366,568
Steel products		36,906			39,512			42,777
Raw materials		191,466			198,705			235,443
Corporate		7,193			6,188			7,212
	$	613,192		$	625,757		$	652,000
Amortization expense:
Steel mills	$	22,479		$	18,789		$	15,269
Steel products		21,998			23,932			27,644
Raw materials		29,385			31,539			29,510
	$	73,862		$	74,260		$	72,423
Earnings (loss) before income taxes and noncontrolling interests:
Steel mills	$	1,724,168		$	629,256		$	1,594,352
Steel products		249,970			276,048			166,323
Raw materials		(95,121	)		(283,938	)		(29,053	)
Corporate/eliminations		(580,358	)		(379,500	)		(584,334	)
	$	1,298,659		$	241,866		$	1,147,288
Segment assets:
Steel mills	$	8,084,773		$	7,318,169		$	8,528,623
Steel products		2,544,344			2,485,122			2,731,320
Raw materials		3,235,237			3,123,190			3,858,254
Corporate/eliminations		1,359,164			1,400,488			838,270
	$	15,223,518		$	14,326,969		$	15,956,467
Capital expenditures:
Steel mills	$	375,996		$	248,532		$	343,767
Steel products		30,698			41,291			27,262
Raw materials		194,112			74,607			197,252
Corporate		16,871			338			586
	$	617,677		$	364,768		$	568,867

Net sales by product were as follows (in thousands). Further product group breakdown is impracticable.

	Year Ended December 31,
	2016		2015		2014
Net sales to external customers:
Sheet	$	5,178,467	$	4,628,805	$	5,988,303
Bar		2,886,648		3,005,450		4,051,171
Structural		1,982,642		2,137,413		2,617,196
Plate		1,204,185		1,312,663		2,066,972
Tubular products		60,106		—		—
Steel products		3,687,448		3,966,895		4,032,385
Raw materials		1,208,626		1,388,050		2,349,114
	$	16,208,122	$	16,439,276	$	21,105,141