15.

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 trading businesses; rebar distribution businesses; and Nucor’s equity method investments in Duferdofin Nucor, NuMit and Nucor-JFE. 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, tubular products businesses, piling products business, 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; and our natural gas production operations.

Previously, Nucor’s tubular products and piling products businesses were reported in the steel mills segment. Beginning in the first quarter of 2018, these businesses were reclassified to the steel products segment as part of a realignment of Nucor’s reportable segments to reflect the way in which they are now viewed by management and how segment performance assessments will be made by the chief operating decision maker beginning in such period. The segment data for the comparable periods has also been reclassified into the steel products segment in order to conform to the current year presentation. 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. Additionally, the composition of assets by segment at December 31, 2017 was reclassified to conform to the current year presentation. This reclassification between segments did not have any impact on the consolidated asset balances.

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.

Nucor’s results by segment for the third quarter and first nine months of 2018 and 2017 were as follows (in thousands):

Three Months (13 Weeks) Ended

Nine Months (39 Weeks) Ended

Sept. 29, 2018

Sept. 30, 2017

Sept. 29, 2018

Sept. 30, 2017

Net sales to external customers:

Steel mills

4,401,610

3,214,921

12,151,843

9,809,492

Steel products

1,849,218

1,514,086

5,056,299

4,093,136

Raw materials

491,374

441,110

1,563,253

1,257,437

6,742,202

5,170,117

18,771,395

15,160,065

Intercompany sales:

Steel mills

1,055,093

764,977

3,019,199

2,182,582

Steel products

56,185

30,828

142,862

87,193

Raw materials

2,923,196

2,333,840

8,687,408

6,971,831

Corporate/eliminations

(4,034,474

)

(3,129,645

)

(11,849,469

)

(9,241,606

)

—

Earnings (loss) before income taxes and noncontrolling interests:

Steel mills

1,095,360

405,097

2,617,647

1,628,800

Steel products

138,688

86,908

380,268

237,463

Raw materials

(29,074

)

9,957

180,468

102,575

Corporate/eliminations

(282,472

)

(131,357

)

(826,268

)

(541,122

)

922,502

370,605

2,352,115

1,427,716

Sept. 29, 2018

Dec. 31, 2017

Segment assets:

Steel mills

8,764,717

7,671,217

Steel products

4,828,354

4,323,907

Raw materials

3,318,424

3,396,110

Corporate/eliminations

1,051,398

450,024

17,962,893

15,841,258