16.

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, primarily a scrap broker and processor; Nu-Iron Unlimited and Nucor Steel Louisiana, two facilities that produce direct reduced iron used by the steel mills; our natural gas production operations; and Nucor’s equity method investment in Hunter Ridge Energy Services LLC (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 earnings (loss) before income taxes and noncontrolling interests as of and for the periods ended October 1, 2016 was adjusted due to the change in accounting principle from LIFO to FIFO for certain inventories (see Note 1).

Nucor’s results by segment for the third quarter and first nine months of 2017 and 2016 were as follows (in thousands):

Three Months (13 Weeks) Ended

Nine Months (39 Weeks) Ended

Sept. 30, 2017

Oct. 1, 2016

Sept. 30, 2017

Oct. 1, 2016

Net sales to external customers:

Steel mills

3,639,488

2,960,642

10,982,636

8,611,553

Steel products

1,089,519

1,011,602

2,919,992

2,763,335

Raw materials

441,110

317,992

1,257,437

876,696

5,170,117

4,290,236

15,160,065

12,251,584

Intercompany sales:

Steel mills

767,268

567,854

2,189,123

1,592,512

Steel products

28,537

31,117

80,652

80,277

Raw materials

2,333,840

1,774,538

6,971,831

4,717,370

Corporate/eliminations

(3,129,645

)

(2,373,509

)

(9,241,606

)

(6,390,159

)

—

Earnings (loss) before income taxes and noncontrolling interests:

Steel mills

432,718

591,799

1,734,245

1,402,898

Steel products

59,225

72,578

131,956

197,891

Raw materials

9,957

14,313

102,575

(76,240

)

Corporate/eliminations

(131,295

)

(194,518

)

(541,060

)

(480,930

)

370,605

484,172

1,427,716

1,043,619

Sept. 30, 2017

Dec. 31, 2016

Segment assets:

Steel mills

9,272,209

8,084,773

Steel products

2,893,703

2,544,344

Raw materials

3,462,340

3,235,237

Corporate/eliminations

875,582

1,359,164

16,503,834

15,223,518