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 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; 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.

Previously, Nucor’s tubular products and piling products businesses were reported in the steel mills segment. 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. Additionally, the composition of assets by segment for the comparable periods 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 are as follows (in thousands):


	Year Ended December 31,
	2018			2017			2016
Net sales to external customers:
Steel mills	$	16,245,218		$	12,929,709		$	10,546,847
Steel products		6,796,501			5,579,744			4,452,649
Raw materials		2,025,560			1,742,940			1,208,626

	$	25,067,279		$	20,252,393		$	16,208,122

Intercompany sales:
Steel mills	$	3,924,160		$	2,916,017		$	2,066,547
Steel products		207,003			118,249			110,368
Raw materials		11,460,645			9,191,081			5,997,498
Corporate/eliminations		(15,591,808	)		(12,225,347	)		(8,174,413	)

	$	—		$	—		$	—

Depreciation expense:
Steel mills	$	378,146		$	377,210		$	368,859
Steel products		80,681			76,992			45,674
Raw materials		161,666			172,699			191,466
Corporate		10,386			8,932			7,193

	$	630,879		$	635,833		$	613,192

Amortization expense:
Steel mills	$	9,400		$	9,706		$	7,632
Steel products		51,997			52,597			36,845
Raw materials		27,361			28,925			29,385

	$	88,758		$	91,228		$	73,862

Earnings (loss) before income taxes and noncontrolling interests:
Steel mills	$	3,500,085		$	1,953,075		$	1,680,156
Steel products		467,105			337,978			294,039
Raw materials		236,241			129,296			(95,121	)
Corporate/eliminations		(974,040	)		(670,392	)		(580,415	)

	$	3,229,391		$	1,749,957		$	1,298,659

Segment assets:
Steel mills	$	9,244,086		$	7,671,217		$	6,980,979
Steel products		4,734,636			4,323,907			3,651,118
Raw materials		3,492,126			3,396,110			3,235,237
Corporate/eliminations		449,740			450,024			1,356,184

	$	17,920,588		$	15,841,258		$	15,223,518

Capital expenditures:
Steel mills	$	720,310		$	336,760		$	357,545
Steel products		88,585			90,952			49,149
Raw materials		169,926			59,036			194,112
Corporate		18,435			20,326			16,871

	$	997,256		$	507,074		$	617,677

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


	Year Ended December 31,
	2018		2017		2016
	2018		2017		2016
Net sales to external customers:
Sheet	$	7,571,765	$	6,407,974	$	5,178,467
Bar		4,709,292		3,558,806		2,886,648
Structural		1,830,476		1,317,995		1,277,547
Plate		2,133,685		1,644,934		1,204,185
Tubular Products		1,347,577		917,235		60,106
Rebar Fabrication		1,496,194		1,306,418		1,272,338
Other Steel Products		3,952,730		3,356,091		3,120,205
Raw Materials		2,025,560		1,742,940		1,208,626

	$	25,067,279	$	20,252,393	$	16,208,122