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What changed in Nucor's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Nucor's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+243 added−270 removedSource: 10-K (2024-02-27) vs 10-K (2023-03-01)

Top changes in Nucor's 2023 10-K

243 paragraphs added · 270 removed · 198 edited across 4 sections

Item 1. Business

Business — how the company describes what it does

181 edited+42 added−39 removed86 unchanged
Biggest changeDepending on our customers’ end use of our products, there are often other materials, such as concrete, aluminum, plastics, composites and wood that compete with our steel products. When the price of steel relative to other raw materials rises, these alternatives can become more attractive to our customers. Competition in our scrap and raw materials business is also vigorous.
Biggest changeImports of finished steel in 2023 were down approximately 14% from 2022 levels and finished steel imports accounted for approximately 21% of U.S. market share. We also experience competition from other materials. Depending on our customers’ end use of our products, there are often other materials, such as concrete, aluminum, plastics, composites and wood that compete with our steel products.
We have undertaken these initiatives to support the ongoing transition of the U.S. power grid to a greater reliance on renewable power. As part of these arrangements, we will also receive Renewable Energy Credits (“RECs”) commensurate with the power we purchase.
We have undertaken these initiatives to support the ongoing transition of the U.S. power grid to a greater reliance on renewable power. As part of these arrangements, we will also receive Renewable Energy Credits (“RECs”) commensurate with the renewable power we purchase.
When operational, the new mill will be equipped to produce 84-inch sheet products, and among other features, will include a 76-inch tandem cold mill and two galvanizing lines capable of producing advanced high-end automotive and construction grades. • Structural mills - Nucor operates two structural mills that produce wide-flange steel beams, pilings and heavy structural steel products for fabricators, construction companies, manufacturers and steel service centers.
When operational, the new mill will be equipped to produce 84-inch sheet products, and among other features, will include a 76-inch tandem cold mill and two galvanizing lines capable of producing advanced high-end automotive and construction grades. 2 • Structural mills - Nucor operates two structural mills that produce wide-flange steel beams, pilings and heavy structural steel products for fabricators, construction companies, manufacturers and steel service centers.
Nucor owns a 51% interest in Nucor-Yamato Steel Company (Limited Partnership) (“Nucor-Yamato”) located in Blytheville, Arkansas. Nucor-Yamato is the only North American producer of high-strength, low-alloy beams. Common applications for the high-strength, low-alloy beams include gravity columns for high-rise buildings, long-span trusses for stadiums and convention centers, and for all projects where seismic design is a critical factor.
Nucor owns a 51% interest in Nucor-Yamato Steel Company (Limited Partnership) (“Nucor-Yamato”) located in Blytheville, Arkansas. Nucor-Yamato is the only North American producer of high-strength, low-alloy beams. Common applications for the high-strength, low-alloy beams include gravity columns for high-rise buildings, long-span trusses for stadiums and convention centers, and for use in all projects where seismic design is a critical factor.
These facilities produce cold-drawn, turned, ground and polished steel bars that are used extensively for shafting and other precision machined applications. NCF produces rounds, hexagons, flats and squares in carbon, alloy and leaded steels. These bars are purchased by the appliance, 5 automotive, construction equipment, electric motor, farm machinery and fluid power industries, as well as by service centers.
These facilities produce cold-drawn, turned, ground and polished steel bars that are used extensively for shafting and other precision machined applications. NCF produces rounds, hexagons, flats and squares in carbon, alloy and leaded steels. These bars are purchased by the appliance, automotive, construction equipment, electric motor, farm machinery and fluid power industries, as well as by service centers.
Most notably, the uncertainty of policies, enforcement priorities, legislation and regulations related to climate change mitigation strategies pose the greatest risk. 21 As a carbon steel producer, Nucor could be increasingly affected both directly and indirectly by new or changing carbon policy decisions and mandates . Carbon is an essential raw material in Nucor’s steel production processes.
Most notably, the uncertainty of policies, enforcement priorities, legislation and regulations related to climate change mitigation strategies pose the greatest risk. As a carbon steel producer, Nucor could be increasingly affected both directly and indirectly by new or changing carbon policy decisions and mandates. Carbon is an essential raw material in Nucor’s steel production processes.
Considering Nucor’s production capabilities and the mix of bar products generally produced and marketed, the capacity of the bar mills is estimated at approximately 9,560,000 tons per year. 2 Reinforcing and merchant bar steel are sold in standard sizes and grades, which allows us to maintain inventory levels of these products to meet our customers’ expected orders.
Considering Nucor’s production capabilities and the mix of bar products generally produced and marketed, the capacity of the bar mills is estimated at approximately 9,560,000 tons per year. Reinforcing and merchant bar steel are sold in standard sizes and grades, which allows us to maintain inventory levels of these products to meet our customers’ expected orders.
Securities and Exchange Commission (the “SEC”). We use the investor relations portion of our website, www.nucor.com/investors, to distribute information, including as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. We routinely post and make accessible financial and other information regarding the Company on our website.
Securities and Exchange Commission (the “SEC”). 19 We use the investor relations portion of our website, www.nucor.com/investors, to distribute information, including as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. We routinely post and make accessible financial and other information regarding the Company on our website.
Except for our overhead doors business, which at present is focused primarily on the garage door repair and replacement market, our steel products businesses primarily serve the nonresidential construction and infrastructure markets. • Vulcraft/Verco – The Vulcraft/Verco group is the nation’s leading producer of open-web steel joists, joist girders and steel decking, which are used primarily for nonresidential building construction.
Except for our overhead doors business, which at present is focused primarily on the garage door repair and replacement market, our steel products businesses primarily serve the nonresidential construction and infrastructure markets. • Vulcraft/Verco – The Vulcraft/Verco group is the nation’s leading producer of open-web steel joists, joist girders and steel decking, which are used primarily for nonresidential building 3 construction.
We believe that the Expand Beyond growth opportunities we are pursuing leverage our core competency as a highly efficient, industrial manufacturer working primarily with steel and steel products, while positioning us to generate attractive profit margins and returns on our invested capital selling products into growing end markets.
We believe that the Expand Beyond growth opportunities we are pursuing leverage our core competency as a highly efficient, industrial manufacturer working primarily with steel and steel products, while positioning us to generate attractive profit margins and returns on our invested capital selling products into growing end-use markets.
It also processes and fabricates spiral weld pipe piling, rolled and welded pipe piling, and cold-formed sheet piling. • Cold finish - Nucor Cold Finish (“NCF”) is the largest and most diversified producer of cold finished bar products for a wide range of industrial markets in North America, with assets in Canada, Mexico and throughout the United States.
It also processes and fabricates spiral weld pipe piling, rolled and welded pipe piling, and cold-formed sheet piling. 4 • Cold finish - Nucor Cold Finish (“NCF”) is the largest and most diversified producer of cold finished bar products for a wide range of industrial markets in North America, with assets in Canada, Mexico and throughout the United States.
Our business, results of operations, financial condition and cash flows could be materially adversely affected if we are unable to successfully integrate these businesses or otherwise fail to realize the anticipated benefits of acquisitions or other transactions. 23 Risks associated with operating in international markets could adversely affect our business, financial position and results of operations.
Our business, results of operations, financial condition and cash flows could be materially adversely affected if we are unable to successfully integrate these businesses or otherwise fail to realize the anticipated benefits of acquisitions or other transactions. Risks associated with operating in international markets could adversely affect our business, financial position and results of operations.
Not only does the RCRA establish standards for the management of solid and hazardous wastes, the RCRA also addresses the environmental impact of contamination from waste disposal activities and from recycling and storage of most wastes. Periodically, past waste disposal activities that were legal when conducted but now may pose a contamination threat are discovered. When the U.S.
Not only does the RCRA establish standards for the management of solid and hazardous wastes, the RCRA also addresses the environmental impact of contamination from waste disposal activities and from recycling and storage of most wastes. Periodically, past waste disposal activities that were legal when conducted that may now pose a contamination threat are discovered. When the U.S.
Our industry is cyclical and both recessions and prolonged periods of slow economic growth could have an adverse effect on our business. Demand for most of our products is cyclical in nature and sensitive to general economic conditions. Our business supports cyclical industries, such as the commercial construction, energy, metals service centers, appliance and automotive industries.
Our industry is cyclical and both recessions and prolonged periods of slow economic growth could have an adverse effect on our business. Demand for most of our products is cyclical in nature and sensitive to general economic conditions. Our business supports cyclical industries, such as the construction, energy, metals service centers, appliance and automotive industries.
While our insurance coverage could offset a portion of the losses relating to some of those types of events, our results of operations and cash flows could be adversely impacted to the extent that any such losses are not covered by our insurance, or that there are significant delays in resolving our claims with our insurance providers.
Therefore, while our insurance coverage could offset a portion of the losses relating to some of those types of events, our results of operations and cash flows could be adversely impacted to the extent that any such losses are not covered by our insurance, or that there are significant delays in resolving our claims with our insurance providers.
The Vulcraft/Verco group also has two plants in Canada—one in Eastern Canada and one in Western Canada—that produce both joist and deck. The annual joist production capacity is approximately 745,000 tons and the annual deck production capacity is approximately 560,000 tons. 4 Sales of steel joists, joist girders and steel decking are dependent on the nonresidential building construction market.
The Vulcraft/Verco group also has two plants in Canada—one in Eastern Canada and one in Western Canada—that produce both joist and deck. The annual joist production capacity is approximately 745,000 tons and the annual deck production capacity is approximately 560,000 tons. Sales of steel joists, joist girders and steel decking are dependent on the nonresidential building construction market.
DJJ’s scrap recycling operations use industry-leading expertise and technology to maximize metal recovery and minimize waste. DJJ is the leading broker of ferrous scrap in North America and is a global trader of scrap metal, pig iron and other metallics. In addition to sourcing steel scrap for Nucor’s mills, DJJ is a global trader of ferro-alloys and nonferrous metals.
DJJ’s scrap recycling operations use expertise and technology to maximize metal recovery and minimize waste. DJJ is the leading broker of ferrous scrap in North America and is a global trader of scrap metal, pig iron and other metallics. In addition to sourcing steel scrap for Nucor’s mills, DJJ is a global trader of ferro-alloys and nonferrous metals.
We engage with policymakers to provide technical information that can inform policy decisions and avoid unintended adverse consequences of legislative and regulatory actions. We believe that a thoughtful approach to domestic energy policy can help ensure that steel and steel products manufactured in the United States remain competitive in the increasingly global marketplace.
We engage with policymakers to provide technical information that can inform policy decisions and avoid unintended adverse consequences of legislative and regulatory actions. We believe that a thoughtful approach to domestic energy policy can help ensure that steel and steel products manufactured in the United States remain competitive in the global marketplace.
DJJ’s logistics team owns and operates one of the largest independent fleets of railcars in the United States dedicated to the movement of scrap and steel and also offers railcar leasing and railcar fleet management services. These activities have strategic value to Nucor as the leading and most diversified North American steel producer.
DJJ’s logistics team owns and operates one of the largest independent fleets of railcars in the United States dedicated to the movement of scrap and steel and also offers railcar leasing and railcar fleet management services. These activities have value to Nucor as the leading and most diversified North American steel producer.
These risks include, but are not limited to: unfavorable political or economic factors; local labor and social issues; changes in regulatory requirements; fluctuations in foreign currency exchange rates, interest rates and inflation; and complex foreign laws, treaties including tax laws, and the Foreign Corrupt Practices Act of 1977 (FCPA).
These risks include, but are not limited to: unfavorable political or economic factors; local labor and social issues; changes in regulatory requirements; fluctuations in foreign currency exchange rates, interest rates and inflation; and complex foreign laws, treaties including tax laws, and the Foreign Corrupt Practices Act of 1977.
In April 2022, Nucor expanded its steel racking capabilities by acquiring Elite Storage Solutions for $75 million. This acquisition combined with Nucor’s initial steel racking business, Hannibal, form the NWS group . 10 • In June 2022, Nucor completed the largest acquisition in its history with the purchase of CHI for approximately $3 billion.
In April 2022, Nucor expanded its steel racking capabilities by acquiring Elite Storage Solutions for $75 million. This acquisition combined with Nucor’s initial steel racking business, Hannibal, form the NWS group. • In June 2022, Nucor completed the largest acquisition in its history with the purchase of CHI for approximately $3 billion.
Order backlog within our raw materials segment is not meaningful because the vast majority of the raw materials that segment produces are used internally. 12 Sources and Availability of Raw Materials An ample supply of high-quality scrap and scrap substitutes is critical to support Nucor’s ability to produce high-quality steel.
Order backlog within our raw materials segment is not meaningful because the vast majority of the raw materials that segment produces are used internally. Sources and Availability of Raw Materials An ample supply of high-quality scrap and scrap substitutes is critical to support Nucor’s ability to produce high-quality steel.
These RECs can be applied against a portion of our GHG emissions, enabling us to receive credit for reducing them. The pay fixed, received floating nature of this arrangement also offsets a portion of our exposure to higher prices for electricity over the life of the contract.
These RECs can be applied against a portion of our GHG emissions, enabling us to receive credit for reducing them. The pay-fixed, receive-floating nature of this arrangement also offsets a portion of our exposure to higher prices for electricity over the life of the contract.
Nucor’s DRI production and brokering capabilities provide our steel mills flexibility to quickly adjust their metallic input mix to changing market conditions, enabling them to maintain cost competitiveness in the often-volatile ferrous scrap market.
Nucor’s DRI production and brokering capabilities provide our steel mills flexibility to quickly adjust their metallic input mix to changing market conditions, enabling them to maintain competitiveness in the often-volatile ferrous scrap market.
Furthermore, Nucor steel mills use significant amounts of electricity as all of its mills utilize EAFs for 100% of their steel melting operations and the decarbonization of electricity generation may lead to high power costs and decreased reliability.
Furthermore, Nucor steel mills use significant amounts of electricity as all of its mills utilize EAFs for 100% of their steel melting operations and the decarbonization of electricity 22 generation may lead to high power costs and decreased reliability.
When the Section 232 or other import tariffs, quotas or duties expire or if others are further relaxed or repealed, or if relatively higher U.S. steel prices make it attractive for foreign steelmakers to export their steel products to the U.S., despite the presence of import tariffs, quotas or duties, the resurgence of substantial imports of foreign steel could create downward pressure on U.S. steel prices. 19 Our business requires substantial capital investment and maintenance expenditures, and our capital resources may not be adequate to provide for all of our cash requirements.
When the Section 232 or other import tariffs, quotas or duties expire or if others are further relaxed or repealed, or if relatively higher U.S. steel prices make it attractive for foreign steelmakers to export their steel products to the U.S., despite the presence of import tariffs, quotas or duties, the resurgence of substantial imports of foreign steel could create downward pressure on U.S. steel prices. 20 Our business requires substantial capital investment and maintenance expenditures, and our capital resources may not be adequate to provide for all of our cash requirements.
We sell and install fabricated reinforcing products primarily on a construction contract bid basis. Reinforcing products are essential to concrete construction. They supply tensile strength, as well as additional compressive strength, and protect the concrete from cracking.
We sell and install fabricated reinforcing products primarily on a construction contract bid basis. Reinforcing products are essential to concrete construction. They supply tensile strength, as well as additional compressive strength, and protect concrete from cracking.
EAF-based steel producers also typically emit fewer GHGs per ton of steel produced than integrated steel producers. 11 Global steel production overcapacity continues to be an ongoing risk to Nucor and the entire steel industry.
EAF-based steel producers also typically emit fewer GHGs per ton of steel produced than integrated steel producers. Global steel production overcapacity continues to be an ongoing risk to Nucor and the entire steel industry.
Natural gas produced by Nucor’s drilling operations is being sold to partially offset our exposure to changes in the price of natural gas consumed by our DRI plant in Louisiana, and by our steel mills in the United States.
Natural gas produced by Nucor’s drilling operations is sold to partially offset our exposure to changes in the price of natural gas consumed by our DRI plant in Louisiana, and by our steel mills in the United States.
Solar torque tube is an essential component for ground-mount solar systems. • Rebar fabrication – Nucor Harris Rebar (“Harris”) fabricates, installs and distributes rebar for a wide variety of construction work classified as infrastructure (e.g., highways, bridges, reservoirs, utilities and airports) and various building projects, including manufacturing facilities, warehouses, data centers, hospitals, schools, stadiums, commercial office buildings and multi-tenant residential construction.
Solar torque tube is an essential component for ground-mount solar systems. • Rebar fabrication – Nucor Rebar Fabrication fabricates, installs and distributes rebar for a wide variety of construction work classified as infrastructure (e.g., highways, bridges, reservoirs, utilities and airports) and various building projects, including manufacturing facilities, warehouses, data centers, hospitals, schools, stadiums, commercial office buildings and multi-tenant residential construction.
Nucor’s raw materials investments are focused on creating an advantage for its steelmaking operations, through a global information network and a multi-pronged and flexible approach to raw materials supply. • Scrap recycling and brokerage operations - DJJ operates six regional scrap recycling companies across the United States that together have shredders capable of processing approximately 5,824,000 tons of ferrous scrap annually.
Nucor’s raw materials investments are focused on creating an advantage for its steelmaking operations, through a global information network and a multi-pronged and flexible approach to raw materials supply. • Scrap recycling and brokerage operations - DJJ operates six regional scrap recycling companies across the United States that together have shredders capable of processing approximately 5,878,000 tons of ferrous scrap annually.
In recent years we have come to see our EAF-based steelmaking method, with its lower GHG intensity when compared with blast furnace technology reliant on mined or extracted virgin iron ore and coking coal, as a competitive advantage for reasons beyond its flexible, highly variable cost base.
In recent years, we have come to see our EAF-based steelmaking method, with its lower GHG intensity when compared with blast furnace technology that is reliant on mined or extracted virgin iron ore and coking coal, as a competitive advantage for reasons beyond its flexible, highly variable cost base.
We expect this $350 million investment to have an annual capacity of approximately 430,000 tons and we expect it to be in operation in 2024. These mills are referred to as micro mills because they have a smaller operational footprint than our older rebar mills, as well as less productive capacity – typically about 400,000 tons per year.
We expect this $350 million investment to have an annual capacity of approximately 430,000 tons and we expect it to be in operation in 2024. These mills are referred to as micro mills because they have a smaller operational footprint than our traditional rebar mills, as well as less productive capacity – typically about 400,000 tons per year.
Micro mills also have a lower environmental footprint due to their smaller size and the fact that their plant design does not typically include a natural gas fired reheat furnace that is common in many steel mills. Nucor has made strategic acquisitions in the steel products segment over the last two years.
Micro mills also have a lower environmental footprint due to their smaller size and the fact that their plant design does not typically include a natural gas fired reheat furnace that is common in many steel mills. Nucor has made strategic acquisitions in the steel products segment over the last three years.
Depending on a variety of factors, including the cost and availability of raw materials, energy, technology, labor, transportation and capital costs, currency exchange rates, government subsidies of foreign steel producers and other global political and economic factors, our business may be materially adversely affected by competitive forces.
Depending on a variety of factors, including the cost and availability of raw materials, energy, technology, labor, transportation and capital costs, currency exchange rates, government subsidies of foreign steel producers and other global political and economic factors, our business may be materially adversely affected by more intense competitive forces.
We have also invested in people and processes to organize more of our commercial activities around large customers and end-use markets (e.g., automotive, construction, wind energy and solar energy). We have developed dedicated teams who are tasked with developing relationships and educating decision makers in these sectors.
We have also invested in people and processes to organize more of our commercial activities around large customers and end-use markets (e.g., automotive, construction, wind energy and solar energy). We have developed dedicated teams tasked with developing relationships and educating decision makers in these sectors.
These were largely to further the Expand Beyond component of our strategy. • In August 2021, Nucor acquired the assets of the IMP business of Cornerstone for a cash purchase price of approximately $1.00 billion. The acquired IMP business is comprised of two industry leading brands, CENTRIA and Metl-Span.
These were largely to further the Expand Beyond component of our strategy. • In August 2021, Nucor acquired the assets of the IMP business of Cornerstone for a cash purchase price of approximately $1.0 billion. The acquired IMP business is comprised of two industry leading brands, CENTRIA and Metl-Span.
Segments, Principal Products Produced, and Markets and Marketing Nucor reports its results in three segments: steel mills, steel products and raw materials. The steel mills segment is Nucor’s largest segment, representing 58% of the Company’s sales to external customers in the year ended December 31, 2022.
Segments, Principal Products Produced, and Markets and Marketing Nucor reports its results in three segments: steel mills, steel products and raw materials. The steel mills segment is Nucor’s largest segment, representing 58% of the Company’s sales to external customers in the year ended December 31, 2023.
It is expected that the CHI acquisition also will benefit from supply chain efficiencies due to Nucor’s recent paint line investments at its Hickman, Arkansas and Crawfordsville, Indiana sheet mills. CHI has approximately 750 teammates across two manufacturing plants in Arthur, Illinois, and Terre Haute, Indiana, and regional warehouses located in California, Colorado, New Hampshire and New Jersey.
It is expected that the CHI acquisition also will benefit from supply chain efficiencies due to Nucor’s paint line investments at its Hickman, Arkansas and Crawfordsville, Indiana sheet mills. CHI has approximately 800 teammates across two manufacturing plants in Arthur, Illinois, and Terre Haute, Indiana, and regional warehouses located in California, Colorado, New Hampshire and New Jersey.
Total annual rebar fabrication capacity is approximately 1,736,000 tons. • Piling products - Skyline Steel LLC and its subsidiaries (“Skyline”) are primarily a steel foundation distributor serving the North American market. Skyline distributes products to service marine construction, bridge and highway construction, heavy civil construction, flood protection, underground commercial parking and environmental containment projects in the infrastructure and construction industries.
Total annual rebar fabrication capacity is approximately 1,736,000 tons. • Piling products - Skyline Steel LLC and its subsidiaries (“Skyline”) are primarily steel foundation distributors serving the North American market. Skyline distributes products to service marine construction, bridge and highway construction, heavy civil construction, flood protection, underground commercial parking and environmental containment projects in the infrastructure and construction industries.
The remaining 22% of the steel mills segment’s shipments went to our steel products segment. • Bar mills - Nucor has 15 bar mills strategically located across the United States that manufacture a broad range of steel products, including concrete reinforcing bars, hot-rolled bars, rounds, light shapes, structural angles, channels, wire rod and highway products in carbon and alloy steels.
The remaining 20% of the steel mills segment’s shipments went to our steel products segment. • Bar mills - Nucor has 15 bar mills located across the United States that manufacture a broad range of products, including concrete reinforcing bars, hot-rolled bars, rounds, light shapes, structural angles, channels, wire rod and highway products in carbon and alloy steels.
We market scrap metal products and related services to our external customers through in-house sales forces. In 2022, approximately 8% of the ferrous and nonferrous metals and scrap substitute tons we brokered and processed were sold to external customers.
We market scrap metal products and related services to our external customers through in-house sales forces. In 2023, approximately 8% of the ferrous and nonferrous metals and scrap substitute tons we brokered and processed were sold to external customers.
In recent years we have embarked on a strategy to advance Nucor’s growth and further its value creation, as summarized in our Mission Statement: Grow the Core, Expand Beyond and Live Our Culture.
In recent years we have embarked on a strategy to advance Nucor’s capabilities and further its value creation, as summarized in our Mission Statement: Grow the Core, Expand Beyond and Live Our Culture.
These are the two largest end-use markets for steel in the United States. • Our Elcyon TM line of sustainable heavy gauge steel plate product will be made specifically for America’s offshore wind energy producers. We launched Elcyon TM in January 2023 and will manufacture this product at our new plate mill in Brandenburg, Kentucky.
These are the two largest end-use markets for steel in the United States. • Our Elcyon TM line of sustainable heavy gauge steel plate product will be made specifically for America’s wind energy producers. We launched Elcyon TM in January 2023 and plan to manufacture this product at our new plate mill in Brandenburg, Kentucky.
We believe the continued successful implementation of our raw material strategy, including key investments in DRI production, as well as in the scrap brokerage and processing services performed by our team at DJJ, gives us greater control over our metallic inputs and thus helps us mitigate the risk of significant fluctuations in the availability and costs of critical inputs.
We believe the continued successful implementation of our raw material strategy, including key investments in DRI production, as well as in the scrap brokerage and processing services performed by our team at DJJ, gives us greater control over our metallic inputs and thus helps us navigate significant fluctuations in the availability and costs of critical inputs.
Steel Technologies transforms flat-rolled steel into products that meet the exact specifications for customers in a wide range of industries, including the automotive, agricultural and consumer goods markets.
Steel Technologies transforms flat-rolled steel into products that meet exacting specifications for customers in a wide range of industries, including the automotive, agricultural and consumer goods markets.
Even with this economic recovery, challenges from global production overcapacity in the steel industry and ongoing uncertainties, both in the United States and in other regions of the world, remain. 20 We are unable to predict with certainty the duration of current economic conditions or the magnitude and timing of changes in economic activity .
Even with this economic recovery, challenges from global production overcapacity in the steel industry and ongoing uncertainties, both in the United States and in other regions of the world, remain. 21 We are unable to predict the duration of current economic conditions or the magnitude or timing of changes in economic activity.
Capital expenditures at our existing facilities that are associated with environmental regulation compliance for 2022 and 2023 are estimated to be less than $100 million per year.
Capital expenditures at our existing facilities that are associated with environmental regulation compliance for 2023 and 2024 are estimated to be less than $100 million per year.
While Nucor seeks to hire qualified and talented individuals as teammates, we also believe in developing the skills of our workforce by providing educational and on-the-job training, in addition to safety training. Further, Nucor believes it is important for senior management to also be familiar with, and have had direct experience running, Nucor’s mills and other operational divisions.
While Nucor seeks to hire qualified and talented individuals as new teammates, we also believe in developing the skills of our existing team by providing educational and on-the-job training, in addition to safety training. Further, Nucor believes it is important for senior management to also be familiar with, and have had direct experience running, Nucor’s mills and other operational divisions.
In many markets, Harris sells reinforcing products on an installed basis (i.e., Harris fabricates the reinforcing products for a specific application and performs the installation). Harris operates nearly 70 fabrication facilities across the United States and Canada, with each facility serving a local market.
In many markets, Nucor Rebar Fabrication sells reinforcing products on an installed basis (i.e., Nucor Rebar Fabrication fabricates the reinforcing products for a specific application and performs the installation). Nucor Rebar Fabrication operates nearly 70 fabrication facilities across the United States and Canada, with each facility serving a local market.
Our investment in DRI production facilities and scrap yards, as well as our access to international raw materials markets, provides Nucor with significant flexibility in optimizing our raw material costs.
Our investment in DRI production facilities and scrap yards, as well as our access to international raw materials markets, provides Nucor with significant flexibility in optimizing our raw material mix.
Our operations are highly automated, allowing us to take advantage of lower employment costs while still providing our teammates with compensation that we believe is highly competitive as compared to businesses in our industry. At Nucor, we believe in “Pay-for-Performance.” Nucor teammates typically earn a significant part of their compensation based on their productivity.
Our operations are highly automated, allowing us to improve safety outcomes and take advantage of lower employment costs while still providing our teammates with compensation that we believe is highly competitive as compared to businesses in our industry. At Nucor, we believe in “Pay-for-Performance.” Nucor teammates typically earn a significant part of their compensation based on their productivity.
Raw materials segment In the raw materials segment, Nucor produces DRI; brokers ferrous and nonferrous metals, pig iron, HBI and DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap metal. The raw materials segment also includes our natural gas production operations and our industrial gas business, Universal Industrial Gases.
Raw materials segment In the raw materials segment, Nucor produces DRI and, through our DJJ subsidiary, brokers ferrous and nonferrous metals, pig iron, HBI and DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap metal. The raw materials segment also includes our natural gas production operations and our industrial gas business, Universal Industrial Gases.
We face strong competition from other steel producers and imports that compete with our products on price, quality and service. The steel markets are highly competitive and a number of firms, domestic and foreign, participate in the steel, steel products and raw materials markets.
We face ongoing competition from other steel producers and imports that compete with our products on price, quality and service. The markets for our products are highly competitive and a number of firms, domestic and foreign, participate in the steel, steel products and raw materials markets.
We market products from the steel mills and steel products segments mainly through in-house sales forces. We also utilize our internal distribution and trading companies to market our products abroad. The markets for these products are largely tied to nonresidential construction, durable goods and capital spending that are affected by changes in general economic conditions.
We market products from the steel mills and steel products segments mainly through in-house sales forces. We also utilize our internal distribution and trading companies to market our products abroad. The markets for these products are largely tied to end-use markets such as nonresidential construction, durable goods and capital spending that are affected by changes in general economic conditions.
In addition to its advanced capabilities and strategic location, the new greenfield mill’s product mix is anticipated to have a significantly lower GHG intensity than competitors who have historically supplied the region. 9 • In February 2022, Nucor completed its acquisition of a majority ownership position in California Steel Industries, Inc.
In addition to its advanced capabilities and strategic location, the new greenfield mill’s product mix is anticipated to have a significantly lower GHG intensity than blast furnace based competitors who have historically supplied the region. • In February 2022, Nucor completed its acquisition of a majority ownership position in California Steel Industries, Inc.
We have examined and prioritized high return on investment growth opportunities across our core steelmaking, steel products and raw materials operations, and we have identified and executed on several acquisitions and investments to expand the products and services we offer beyond our traditional capabilities.
We have examined and prioritized growth opportunities across our core steelmaking, steel products and raw materials operations, and we have identified and executed on several acquisitions and investments to expand the products and services we offer beyond our traditional capabilities.
The brands are now part of the Nucor Insulated Panel group, which also includes the Company's initial IMP business, TrueCore. We believe this acquisition will broaden the value-added solutions that the Nucor Buildings group provides to targeted end markets such as warehousing, distribution and data centers.
The brands are now part of the Nucor Insulated Panel group, which also includes the Company's initial IMP business, TrueCore. We believe this acquisition has broadened the value-added solutions that the Nucor Buildings group provides to targeted end markets such as warehousing, distribution and data centers.
The scrap metals market consists of many firms and is highly fragmented. Firms typically compete on price and geographic proximity to the sources of scrap metal. Backlog In the steel mills segment, Nucor’s backlog of orders was approximately $2.33 billion and $3.79 billion at December 31, 2022 and 2021, respectively.
The scrap metals market consists of many firms and is highly fragmented. Firms typically compete on price and geographic proximity to the sources of scrap metal. Backlog In the steel mills segment, Nucor’s backlog of orders was approximately $3.27 billion and $2.33 billion at December 31, 2023 and 2022, respectively.
Its annual capacity is estimated at approximately 2,500,000 tons. • In April 2022, Nucor announced that it will build its new rebar micro mill, with spooling capabilities, in Lexington, North Carolina. This will be Nucor's third rebar micro mill, joining its existing micro mills in Missouri and Florida.
Its annual capacity is approximately 2,000,000 tons. 8 • In April 2022, Nucor announced that it will build its new rebar micro mill, with spooling capabilities, in Lexington, North Carolina. This will be Nucor's third rebar micro mill, joining its existing micro mills in Missouri and Florida.
The availability and prices of raw materials may also be negatively affected by new laws and regulations, allocation by suppliers, interruptions in production, accidents or natural disasters, war and other forms of armed conflict or political instability, changes in exchange rates, worldwide price fluctuations, including due to global political and economic factors, changes in governmental, business and consumer spending, inflation, increases in interest rates, labor shortages, and the availability and cost of transportation, including as a result of the COVID-19 pandemic.
The availability and prices of raw materials may also be negatively affected by new laws and regulations, allocation by suppliers, interruptions in production, accidents or natural disasters, war and other forms of armed conflict or political instability, changes in exchange rates, worldwide price fluctuations, including due to global political and economic factors, changes in governmental, business and consumer spending, inflation, increases in interest rates, labor shortages, and the availability and cost of transportation.
Over the past two years, approximately 35% of Nucor teammates hired or promoted to the Manager or General Manager level were diverse.
Over the past two years, approximately 31% of Nucor teammates hired or promoted to the Manager or General Manager level were diverse.
The COVID-19 pandemic has had and may have further negative impacts on our operations, supply chain, transportation networks and customers, which may compress our margins or impact demand for our steel products, including as a result of preventative and precautionary measures that we, other businesses and governments have taken or may take in the future.
The COVID-19 pandemic had and any future similar events may have negative impacts on our operations, supply chain, transportation networks and customers, which may compress our margins or impact demand for our steel products, including as a result of preventative and precautionary measures that we, other businesses and governments have taken or may take in the future.
Our products are further used in the pipe and tube, pressure vessel, transportation and 3 construction industries. Considering Nucor’s production capabilities and the mix of plate products generally produced and marketed, the capacity of the plate mills is estimated at approximately 2,925,000 tons per year.
Our products are further used in the pipe and tube, pressure vessel, transportation and construction industries. Considering Nucor’s production capabilities and the mix of plate products generally produced and marketed, the capacity of the plate mills is estimated at approximately 4,000,000 tons per year.
The President’s Safety Cup is an additional annual award that is presented to the region that has the best safety record across all of Nucor. Not only does this reward a facility for exceeding their individual safety goals, but it encourages our teams to work with their regional teammates to share ideas and improve safety as a group.
The President’s Safety Cup is an additional annual award that is presented to the region that has the best safety record across all of Nucor. Not only does this reward a facility for exceeding their individual safety goals, but it encourages our teams to innovate and to share ideas and improve safety as a group.
While we believe that we have adopted appropriate risk management and compliance programs, the nature of our operations means that legal compliance risks will continue to exist and additional legal proceedings and other contingencies, the outcome of which cannot be predicted with certainty, will arise from time to time. 24 Item 1B. Unresolve d Staff Comments None. 25
While we believe that we have adopted appropriate risk management and compliance programs, the nature of our operations means that legal compliance risks will continue to exist and additional legal proceedings and other contingencies, the outcome of which cannot be predicted with certainty, will arise from time to time. Item 1B. Unresolved Staff Comments None.
In 2022, we achieved an annual DART Case Rate of 0.43 (0.50 in 2021). Since 1998, Nucor has used the President’s Safety Award to recognize divisions that achieve strong records of safety performance based on objective metrics.
In 2023, we achieved an annual DART Case Rate of 0.36 (0.43 in 2022). Since 1998, Nucor has used the President’s Safety Award to recognize divisions that achieve strong records of safety performance based on objective metrics.
With the potential for high-quality scrap to become scarcer, coupled with the risk of third-party supplier disruptions, Nucor’s DRI facilities provide a greater degree of certainty over metallics supply to its steel mills. 7 • Natural gas production programs - Nucor owns operating wells and leasehold interests in natural gas properties in the Piceance Basin in the Western S lope of Colorado.
With the potential for high-quality scrap to become scarcer, coupled with the risk of third-party supplier disruptions, Nucor’s DRI facilities provide a greater degree of certainty over metallics supply to its steel mills. 6 • Natural gas production programs - Nucor owns operating wells and leasehold interests in natural gas properties in the South Piceance Basin in the Western Slope of Colorado.
Where economies of scale and regional market conditions warrant, we can also sell excess output from these plants on a merchant basis. As of December 31, 2022, Nucor had five industrial gas plants operating, and five others at various stages of commissioning, construction, or planning.
Where economies of scale and regional market conditions warrant, we can also sell excess output from these plants on a merchant basis. As of December 31, 2023, Nucor had six industrial gas plants operating, and eight others at various stages of commissioning, construction, or planning.
Our acquisition of CSI expands the reach of Nucor’s sheet mill group to the west coast of the United States and increases our exposure to more value-added sheet steel. CSI’s product capabilities include hot rolled, pickled and oiled, cold rolled and galvanized sheet steels, as well as electric resistance welded (ERW) pipe.
Our acquisition of CSI expanded the reach of Nucor’s sheet mill group to the west coast of the United States and increased our exposure to more value-added sheet steel. CSI’s product capabilities include hot rolled, pickled and oiled, cold rolled and galvanized sheet steels, as well as electric resistance welded pipe.
In 2022, 20 divisions achieved the Platinum level award, 17 divisions achieved the Gold level award and 21 divisions achieved the Silver level award. Nucor also has 24 OSHA Voluntary Protection Program Sites, OSHA’s highest level of recognition. In 2020, the Company introduced the Nucor President’s Safety Cup as a way to foster more safety benchmarking throughout the Company.
In 2023, 31 divisions achieved the Platinum level award, 17 divisions achieved the Gold level award and 24 divisions achieved the Silver level award. Nucor also has 24 OSHA Voluntary Protection Program Sites, OSHA’s highest level of recognition. In 2020, the Company introduced the Nucor President’s Safety Cup as a way to foster more safety benchmarking throughout the Company.
Teammates of certain previously acquired businesses – most notably Harris, which accounted for approximately 15% of our workforce as of December 31, 2022 – complete a comparable survey that has also shown an improving trend over time. 16 Safety , Diversity, Equity and Inclusion One of Nucor’s core values is our teammates’ well-being and safety, and it is our goal to become the safest steel company in the world.
Teammates of certain previously acquired businesses – which accounted for approximately 15% of our workforce as of December 31, 2023 – complete a comparable survey that has also shown an improving trend over time. 17 Safety, Diversity, Equity and Inclusion One of Nucor’s core values is our teammates’ well-being and safety, and it is our goal to become the safest steel company in the world.
Steel products segment In the steel products segment, Nucor produces steel joists and joist girders, steel deck, hollow structural section (“HSS”) steel tubing, electrical conduit, fabricated concrete reinforcing steel, cold finished steel, steel fasteners, steel grating and expanded metal, wire and wire mesh, metal building systems, insulated metal panels, steel racking, overhead doors, and utility towers and structures for communications and energy transmission.
Steel products segment In the steel products segment, Nucor produces steel joists and joist girders, steel deck, galvanized torque tubes used in solar arrays, hollow structural section (“HSS”) steel tubing, electrical conduit, fabricated concrete reinforcing steel, cold finished steel, steel fasteners, steel grating and expanded metal, wire and wire mesh, metal building systems, insulated metal panels, steel racking, overhead doors, and utility towers and structures for communications and energy transmission.
Some of the initiatives focused on inclusion, equity and diversity we have launched include: • Conducting focused discussion groups to share experiences of the workplace and the effects of race and gender; • Taking feedback onboard to enhance training and development; • Webcasts by diverse senior leaders sharing their career progression and life experiences 17 • Increasing focus and intensity of engagement with supportive external partners, such as: • National Society of Black Engineers; • Society of Women Engineers; • National Society of Hispanic Professional Engineers; • INROADS (non-profit focused on addressing the lack of diversity in corporate America) • Tuskegee University; and • Purdue University’s Women in Engineering Program and Minorities in Engineering Program. • More proactive senior executive support for career development opportunities for diverse employees.
Some of the initiatives focused on inclusion, equity and diversity we have launched include: • Conducting focused discussion groups to share experiences of the workplace and the effects of race and gender; • Taking feedback onboard to enhance training and development; • Webcasts by diverse senior leaders sharing their career progression and life experiences 18 • Increasing focus and intensity of engagement with supportive external partners, such as: o National Society of Black Engineers; o Society of Women Engineers; o National Society of Hispanic Professional Engineers; o INROADS (non-profit focused on addressing the lack of diversity in corporate America) o Tuskegee University; and o Purdue University’s Women in Engineering Program and Minorities in Engineering Program.
The U.S. economy has experienced a strong recovery from the conditions experienced at the onset of the COVID-19 pandemic, but new variants of COVID-19 and the continued abatement of the COVID-19 pandemic, related labor shortages and supply chain disruptions, new or proposed legislation related to governmental spending, inflation and increases in interest rates have impacted, and are expected to continue to impact, economic growth.
The U.S. economy has experienced a strong recovery from the conditions experienced at the onset of the COVID-19 pandemic, but related labor shortages and supply chain disruptions, new or proposed legislation related to governmental spending, inflation and increases in interest rates have impacted, and will continue to impact, economic growth.
Further, we believe shifting our product mix to a greater pro portion of value-added products will make our overall business less volatile.
Further, we believe shifting our product mix to a greater proportion of value-added products will make our overall business less volatile.
The Company’s operations include international trading and sales companies that buy and sell steel and steel products manufactured by the Company and others. Nucor is North America’s largest recycler, using scrap steel as the primary raw material in producing steel and steel products. In 2022, we recycled approximately 17.8 million gross tons of scrap steel.
The Company’s operations include international trading and sales companies that buy and sell steel and steel products manufactured by the Company and others. Nucor is North America’s largest recycler, using scrap steel as the primary raw material in producing steel and steel products. In 2023, we recycled approximately 18.4 million gross tons of scrap steel.
Our SBQ products are hot-rolled to exacting specifications primarily servicing the automotive, energy, agricultural, heavy equipment and transportation sectors. In April 2022, Nucor announced that it will build its new rebar micro mill, with spooling capabilities, in Lexington, North Carolina.
Our SBQ products are hot-rolled to exacting specifications primarily servicing the automotive, energy, agricultural, heavy equipment and transportation sectors. In April 2022, Nucor announced that it will build a new rebar micro mill, with spooling capabilities, in Lexington, North Carolina. The new micro mill is currently under construction.
Order backlog for the steel mills segment includes only orders from external customers and excludes orders from other Nucor businesses. Nucor’s backlog of orders in the steel products segment was approximately $6.65 billion and $8.12 billion at December 31, 2022 and 2021, respectively. The majority of these orders are expected to be filled within one year.
Order backlog for the steel mills segment includes only orders from external customers and excludes orders from other Nucor businesses. Nucor’s backlog of orders in the steel products segment was approximately $4.97 billion and $6.65 billion at December 31, 11 2023 and 2022, respectively. The majority of these orders are expected to be filled within one year.
EPD legislation has caused Nucor to incur additional costs and has the potential to put domestic steel manufacturers at a disadvantage to foreign competitors unless standardized mechanisms are used to fully evaluate products produced by foreign steel producers.
EPD legislation has caused Nucor to incur additional costs and has the potential to put Nucor and its customers at a disadvantage to foreign competitors unless standardized mechanisms are used to fully evaluate products produced by foreign producers.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeFor our DRI facilities in Trinidad and Louisiana, a significant portion of the production process occurs outdoors. The Trinidad site, including leased land, is approximately 1.9 million square feet. The Louisiana site has approximately 174.2 million square feet of owned land with buildings that total approximately 72,500 square feet.
Biggest changeIn the raw materials segment, we have 93 operating facilities in 19 states with one operating facility in Point Lisas, Trinidad. For our DRI facilities in Trinidad and Louisiana, a significant portion of the production process occurs outdoors. The Trinidad site, including leased land, is approximately 1.9 million square feet.
Joe, Indiana 1,010,000 Joists, deck, fastener Brigham City, Utah 1,000,000 Joists, cold finished bar, building systems Grapeland, Texas 810,000 Joists, deck Chemung, New York 560,000 Joists, deck Marseilles, Illinois 550,000 Steel tube Florence, South Carolina 540,000 Joists, deck Birmingham, Alabama 480,000 Steel tube Fort Payne, Alabama 470,000 Joists, deck Decatur, Alabama 470,000 Steel tube Louisville, Kentucky 440,000 Steel tube Trinity, Alabama 380,000 Steel tube Eufaula, Alabama 360,000 Building systems Chicago, Illinois 350,000 Steel tube Waterloo, Indiana 350,000 Building systems 26 In the steel products segment, we have 92 operating facilities, excluding the locations listed above, in 38 states with 29 operating facilities in Canada and two in Mexico.
Joe, Indiana 1,010,000 Joists, deck, fastener Brigham City, Utah 1,000,000 Joists, cold finished bar, building systems Grapeland, Texas 810,000 Joists, deck Chemung, New York 560,000 Joists, deck Marseilles, Illinois 550,000 Steel tube Florence, South Carolina 540,000 Joists, deck Birmingham, Alabama 480,000 Steel tube Fort Payne, Alabama 470,000 Joists, deck Decatur, Alabama 470,000 Steel tube Louisville, Kentucky 440,000 Steel tube Trinity, Alabama 380,000 Steel tube Eufaula, Alabama 360,000 Building systems Chicago, Illinois 350,000 Steel tube Waterloo, Indiana 350,000 Building systems 28 In the steel products segment, we have 92 operating facilities, excluding the locations listed above, in 39 states with 29 operating facilities in Canada and two in Mexico.
These facilities, by segment, are as follows: Location Approximate square footage of facilities Principal products Steel mills: Fontana, California 4,020,000 Flat-rolled steel Hickman, Arkansas 2,730,000 Flat-rolled steel Blytheville, Arkansas 2,700,000 Structural steel Berkeley County, South Carolina 2,370,000 Flat-rolled steel, structural steel Decatur, Alabama 2,000,000 Flat-rolled steel Crawfordsville, Indiana 1,880,000 Flat-rolled steel Norfolk, Nebraska 1,530,000 Steel shapes Hertford County, North Carolina 1,350,000 Steel plate Plymouth, Utah 1,290,000 Steel shapes Ghent, Kentucky 1,260,000 Flat-rolled steel Jewett, Texas 1,170,000 Steel shapes Darlington, South Carolina 980,000 Steel shapes Kankakee, Illinois 840,000 Steel shapes Memphis, Tennessee 700,000 Steel shapes Seattle, Washington 660,000 Steel shapes Tuscaloosa, Alabama 600,000 Steel plate Auburn, New York 510,000 Steel shapes Jackson, Mississippi 490,000 Steel shapes Longview, Texas 430,000 Steel plate Marion, Ohio 430,000 Steel shapes Kingman, Arizona 380,000 Steel shapes Sedalia, Missouri 360,000 Steel shapes Frostproof, Florida 350,000 Steel shapes Birmingham, Alabama 310,000 Steel shapes Wallingford, Connecticut 240,000 Steel shapes Steel products: Norfolk, Nebraska 1,150,000 Joists, deck, cold finished bar Arthur, Illinois 1,070,000 Overhead doors St.
These facilities, by segment, are as follows: Location Approximate square footage of facilities Principal products Steel mills: Fontana, California 4,020,000 Flat-rolled steel Hickman, Arkansas 2,740,000 Flat-rolled steel Blytheville, Arkansas 2,700,000 Structural steel, sheet steel Berkeley County, South Carolina 2,430,000 Flat-rolled steel, structural steel Decatur, Alabama 2,000,000 Flat-rolled steel Crawfordsville, Indiana 1,890,000 Flat-rolled steel Norfolk, Nebraska 1,540,000 Steel shapes Hertford County, North Carolina 1,350,000 Steel plate Plymouth, Utah 1,290,000 Steel shapes Ghent, Kentucky 1,260,000 Flat-rolled steel Jewett, Texas 1,170,000 Steel shapes Darlington, South Carolina 980,000 Steel shapes Kankakee, Illinois 850,000 Steel shapes Memphis, Tennessee 700,000 Steel shapes Silao, Guanajuato, Mexico 680,000 Flat-rolled steel Seattle, Washington 660,000 Steel shapes Tuscaloosa, Alabama 610,000 Steel plate Auburn, New York 510,000 Steel shapes Jackson, Mississippi 490,000 Steel shapes Brandenburg, Kentucky 490,000 Steel plate Sedalia, Missouri 470,000 Steel shapes Marion, Ohio 430,000 Steel shapes Kingman, Arizona 380,000 Steel shapes Frostproof, Florida 350,000 Steel shapes Birmingham, Alabama 310,000 Steel shapes Wallingford, Connecticut 240,000 Steel shapes Steel products: Norfolk, Nebraska 1,150,000 Joists, deck, cold finished bar Arthur, Illinois 1,070,000 Overhead doors St.
Item 2. Properties We own most of our principal operating facilities.
Item 2. Pr operties We own most of our principal operating facilities.
Our subsidiary, Harris Steel Inc., also operates multiple sales offices in Canada and certain other foreign locations. The steel products segment also includes Skyline Steel, LLC, our steel foundation distributor.
Nucor Rebar Fabrication also operates multiple sales offices in Canada and certain other foreign locations. The steel products segment also includes Skyline Steel, LLC, our steel foundation distributor. NWS has leased square footage of approximately 630,000 square feet in Los Angeles, California, and has leased square footage of approximately 420,000 square feet in Houston, Texas.
DJJ has 88 operating facilities in 21 states along with multiple brokerage offices in the United States and certain other foreign locations. The average utilization rates of all operating facilities in the steel mills, steel products and raw materials segments in 2022 were approximately 77%, 74% and 68% of production capacity, respectively.
The average utilization rates of all operating facilities in the steel mills, steel products and raw materials segments in 2023 were approximately 78%, 64% and 71% of production capacity, respectively. We also own our principal executive offices in Charlotte, North Carolina.
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Hannibal Industries, Inc., which we acquired during 2021, has leased square footage of approximately 630,000 square feet in Los Angeles, California, and has leased square footage of approximately 420,000 square feet in Houston, Texas. In the raw materials segment, we have 93 operating facilities in 22 states with one operating facility in Point Lisas, Trinidad.
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The Louisiana site has approximately 174.2 million square feet of owned land with buildings that total approximately 72,500 square feet. DJJ has 85 operating facilities in 18 states along with multiple brokerage offices in the United States and certain other foreign locations.
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We also own our principal executive offices in Charlotte, North Carolina. Item 3 . Legal Proceedings. Nucor is from time to time a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business.
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With respect to all such lawsuits, claims and proceedings, we record reserves when it is probable a liability has been incurred and the amount of loss can be reasonably estimated.
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We do not believe that any of these proceedings, individually or in the aggregate, would be expected to have a material adverse effect on our results of operations, financial position or cash flows. Nucor maintains liability insurance with self-insurance limits for certain risks.
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There were no proceedings that were pending or contemplated under federal, state or local environmental laws that the Company reasonably believes may result in monetary sanctions of at least $1.0 million (the threshold chosen by Nucor as permitted by Item 103 of Regulation S-K promulgated under the Securities Exchange Act of 1934, as amended, and which Nucor believes is reasonably designed to result in disclosure of any such proceeding that is material to its business or financial condition).
Removed
Item 4 . Mine Safety Disclosures Not applicable. Information About Our Executive Officers The following is a description of the names and ages of the executive officers of the Company, indicating all positions and offices with the Company held by each such person and each person’s principal occupation or employment during the past five years.
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Each executive officer of Nucor is elected by the Board of Directors and holds office from the date of election until removed by the Board. Allen C. Behr (49), Executive Vice President of Plate and Structural Products, was named EVP in May 2020. Mr.
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Behr began his career with Nucor in 1996 as Design Engineer at Nucor Building Systems-Indiana and joined the start-up team at Nucor Building Systems-Texas in 1999. In 2001, he became the Engineering Manager at Nucor Building Systems-South Carolina and was promoted to General Manager in 2008. Mr.
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Behr became the General Manager of Vulcraft-South Carolina in 2011 and was promoted to Vice President in 2012.
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He was promoted to President of the Vulcraft/Verco group in 2014 and he served as General Manager of Nucor Steel-Texas from 2017 to 2019. 27 Noah Hanners ( 43 ) , Executive Vice President of Raw Materials, became EVP in January 2023 . Mr.
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Hanners began his career with Nucor in 2011 as Melt Shop Engineer at Nucor Steel South Carolina. He next served as Shift Supervisor and was then promoted to Melt Shop Manager at Nucor Steel Auburn, Inc. Mr.
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Hanners later served as General Manager of Nucor Tubular Products and General Manager of Nucor Steel Kankakee, Inc. and was promoted to Vice President in 2019. He served as the Vice President and General Manager of The David J. Joseph Company from 2019 to 2022 .
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John Hollatz (47) , Executive Vice President of Bar, Engineered Bar, and Rebar Fabrication Products, was named EVP in May 2022. Mr. Hollatz began his career at Nucor in 1999 as Design Engineer at Vulcraft Indiana and then served as Sales Engineer and Sales Manager at Vulcraft Nebraska. Mr.
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Hollatz later served as General Manager of Nucor Building Systems South Carolina, General Manager of Vulcraft Indiana, and President of the Vulcraft/Verco group. He was promoted to Vice President and General Manager of Nucor Steel Decatur, LLC in 2016. Douglas J. Jellison (64), Executive Vice President of Strategy, was named EVP in January 2021. Mr.
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Jellison began his Nucor career in 1990 as Materials Manager at Nucor Bearing Products and has worked in various positions and businesses in his more than 30 years with Nucor, including several controller and business development roles. Mr.
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Jellison was promoted to Vice President in 2004 and served as General Manager of Nucor Bearing Products, Nucor Steel Seattle, Inc. and Nucor-Yamato. He then served as President of Nucor Tubular Products and most recently as President of Nucor’s steel piling subsidiary, Skyline Steel LLC. Stephen D.
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Laxton (52) , Chief Financial Officer, Treasurer, and Executive Vice President, became CFO in March 2022. Mr. Laxton began his career at Nucor in 2003 as General Manager of Business Development and was promoted to Vice President in 2014. Prior to joining Nucor, Mr.
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Laxton worked for Cinergy Corp., holding various positions including Director of Asset Management and Manager of Corporate Development. Prior to Cinergy, he held various financial roles with Ashland, Inc., North American Stainless and National City Bank. Gregory J. Murphy (59), Executive Vice President of Business Services and General Counsel, was named EVP in January 2021. Mr.
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Murphy began his Nucor career in 2015 as Vice President and General Counsel. In 2020, he assumed additional responsibilities and was named General Counsel and Vice President of Legal, Environmental and Public Affairs. Prior to joining Nucor, Mr.
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Murphy was a Partner with the law firm of Moore & Van Allen PLLC, where he was the team leader of the Litigation Practice Group and served for a decade on the firm’s Executive Committee. Daniel R. Needham (57), Executive Vice President of Commercial, was named EVP in May 2022. Mr.
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Needham began his career with Nucor in 2000 as Controller at Nucor Steel Hertford County. He subsequently served as Controller of Nucor Steel Decatur, LLC and Nucor Steel Utah. In 2011, Mr. Needham became General Manager of Nucor Steel Connecticut, Inc. He later served as General Manager of Nucor Steel Utah and was elected Vice President in 2016.
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In 2019, Mr. Needham was promoted to Vice President and General Manager of Nucor Steel Indiana. He served as the Executive Vice President of Bar, Engineered Bar and Rebar Fabrication Products from February 2021 to May 2022. K. Rex Query (57) , Executive Vice President of Sheet and Tubular Products, was named EVP in January 2021. Mr.
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Query joined Nucor in 1990 as a financial analyst in the Corporate Office and subsequently served as Controller at Vulcraft South Carolina, Nucor Steel Berkeley and Nucor Steel Hertford. After serving as General Manager and Corporate Controller, Mr.
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Query was elected to Vice President in 2002 and served as General Manager at Nucor Steel Auburn, Inc., Nucor Steel Decatur, LLC, Nucor Steel South Carolina and NCF as well as President of Nucor Europe. Most recently, Mr. Query served as President of Nucor’s Vulcraft/Verco group. Mr. Query is married to the sister of Mr. Topalian’s wife. 28 David A.
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Sumoski ( 56 ), was named Chief Operating Officer , in January 2021. He previously served as Executive Vice President from 2014 to 2020, most recently as EVP of Merchant and Rebar Products .
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He also served as General Manager of Nucor Steel Memphis, Inc. from 2012 to 2014 and as General Manager of Nucor Steel Marion, Inc. from 2008 to 2012. Mr. Sumoski was named Vice President in 2010. He began his career with Nucor as an electrical supervisor at Nucor Steel-Berkeley in 1995, later serving as Maintenance Manager. Leon J.
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Topalian (54), has served as President and Chief Executive Officer since January 2020 and as Chair of the Board of Directors since September 2022.
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He previously served as President and Chief Operating Officer from September 2019 to December 2019, as Executive Vice President of Beam and Plate Products from 2017 to 2019 and as Vice President of Nucor from 2013 to 2017. He began his Nucor career at Nucor Steel-Berkeley in 1996, serving as a project engineer and then as cold mill production supervisor.
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Mr. Topalian was promoted to Operations Manager for Nucor’s former joint venture in Australia and later served as Melting and Casting Manager at Nucor Steel-South Carolina. He then served as General Manager of Nucor Steel Kankakee, Inc. from 2011 to 2014 and as General Manager of Nucor-Yamato from 2014 to 2017. Mr. Topalian is married to the sister of Mr.
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Query’s wife. D. Chad Utermark (54), Executive Vice President of New Markets and Innovation, was named EVP in 2014. He previously served as General Manager of Nucor-Yamato from 2011 to 2014 and as General Manager of Nucor Steel-Texas from 2008 to 2011. He was named Vice President of Nucor in 2009. Mr.
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Utermark began his Nucor career as a utility operator at Nucor Steel-Arkansas in 1992, subsequently serving as shift supervisor and Hot Mill Manager at that division as well as Roll Mill Manager at Nucor Steel-Texas. 29 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIn February 2023, the Board of Directors declared Nucor’s 200 th consecutive quarterly cash dividend of $0.51 per share payable on May 11, 2023 to stockholders of record on March 31, 2023.
Biggest changeIn February 2024, the Board of Directors declared Nucor’s 204 th consecutive quarterly cash dividend of $0.54 per share payable on May 10, 2024 to stockholders of record on March 28, 2024. See Note 16 to the Company’s consolidated financial statements for a discussion regarding securities authorized for issuance under the Company’s stock-based compensation plans.
Nucor has increased its base cash dividend every year since the Company began paying dividends in 1973. Nucor paid a total dividend of $2.00 per share in 2022 compared with $1.62 per share in 2021. In December 2022, the Board of Directors increased the base quarterly cash dividend on Nucor’s common stock to $0.51 per share from $0.50 per share.
Nucor has increased its base cash dividend every year since the Company began paying dividends in 1973. Nucor paid a total dividend of $2.04 per share in 2023 compared with $2.00 per share in 2022. In December 2023, the Board of Directors increased the base quarterly cash dividend on Nucor’s common stock to $0.54 per share from $0.51 per share.
(2) On December 2, 2021, the Company announced that the Board of Directors had approved a new share repurchase program under which the Company is authorized to repurchase up to $4.00 billion of the Company’s common stock and terminated all previously authorized share repurchase programs. The share repurchase authorization is discretionary and has no expiration date.
(2) On May 11, 2023, the Company announced that its Board of Directors had approved a share repurchase program under which the Company is authorized to repurchase up to $4.00 billion of the Company’s common stock and terminated all previously authorized share repurchase programs. The share repurchase authorization is discretionary and has no expiration date.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is listed and traded on the New York Stock Exchange under the symbol “NUE.” As of January 31, 2023, there were approximately 12,000 stockholders of record of our common stock.
Item 5. Market for Registrant’s Common Equity, Related Stoc kholder Matters and Issuer Purchases of Equity Securities Our common stock is listed and traded on the New York Stock Exchange under the symbol “NUE.” As of January 31, 2024, there were approximately 11,000 stockholders of record of our common stock.
Our share repurchase program activity for each of the three months and the quarter ended December 31, 2022 was as follows (in thousands, except per share amounts): Total Number of Shares Purchased Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2) October 2, 2022—October 29, 2022 1,826 $ 122.05 1,826 $ 1,266,670 October 30, 2022—November 26, 2022 1,034 $ 138.26 1,034 $ 1,123,698 November 27, 2022—December 31, 2022 230 $ 160.07 230 $ 1,086,921 For the Quarter Ended December 31, 2022 3,090 3,090 (1) Includes commissions of $0.84 per share.
Our share repurchase program activity for each of the three months and the quarter ended December 31, 2023 was as follows (in thousands, except per share amounts): Total Number of Shares Purchased Average Price Paid per Share (1) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2) October 1, 2023—October 28, 2023 — $ - — $ 3,499,941 October 29, 2023—November 25, 2023 — $ - — $ 3,499,941 November 26, 2023—December 31, 2023 1,000 $ 177.18 1,000 $ 3,322,765 For the Quarter Ended December 31, 2023 1,000 1,000 (1) Includes commissions of $0.02 per share.
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See Note 16 to the Company’s consolidated financial statements for a discussion regarding securities authorized for issuance under the Company’s stock-based compensation plans. 30 Stock Performance This graphic comparison assumes the investment of $100 in each of Nucor common stock, the S&P 500 Index and the S&P 1500 Steel Index, all at year-end 2017.
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The stock performance graph required by Item 201(e) of Regulation S-K is incorporated into this report by reference from the Company's annual report to stockholders for the year ended December 31, 2023, which will be posted to the Company's website and furnished to the SEC subsequent to the date of this report.
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The resulting cumulative total return assumes that cash dividends were reinvested. Nucor common stock comprised 36% of the S&P 1500 Steel Index at year-end 2022 (36% at year-end 2017).
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The stock performance graph shall not be deemed to be "filed" for purposes of Section 18 of the Exchange Act, nor shall it be deemed to be "soliciting material" subject to Regulation 14A or incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe following table presents the negative effect on pre-tax earnings of a hypothetical change in the fair value of the derivative instruments outstanding at December 31, 2022, due to an assumed 10% and 25% change in the market price of each of the indicated commodities (in thousands): Commodity Derivative 10% Change 25% Change Natural gas $ 14,180 $ 35,440 Aluminum 6,341 15,849 Copper 2,042 5,117 Any resulting changes in fair value would be recorded as adjustments to accumulated other comprehensive loss, net of income taxes or recognized in net earnings, as appropriate.
Biggest changeThe following table presents the negative effect on pre-tax earnings of a hypothetical change in the fair value of the derivative instruments outstanding at December 31, 2023, due to an assumed 10% and 25% change in the market price of each of the indicated commodities (in thousands): Commodity Derivative 10% Change 25% Change Natural gas $ 12,270 $ 30,670 Aluminum 6,818 17,079 Copper 2,871 7,190 Any resulting changes in fair value would be recorded as adjustments to accumulated other comprehensive loss, net of income taxes or recognized in net earnings, as appropriate.
Nucor also occasionally makes use of interest rate swaps to manage net exposure to interest rate changes. As of December 31, 2022, there were no such contracts outstanding. Nucor’s investment practice is to invest in securities that are highly liquid with short maturities.
Nucor also occasionally makes use of interest rate swaps to manage net exposure to interest rate changes. As of December 31, 2023, there were no such contracts outstanding. Nucor’s investment practice is to invest in securities that are highly liquid with short maturities.
At December 31, 2022, approximately 20% of Nucor’s long-term debt was in industrial revenue bonds that have variable interest rates that are adjusted weekly. The remaining 80% of Nucor’s long-term debt was at fixed rates. Future changes in interest rates are not expected to significantly impact earnings.
At December 31, 2023, approximately 20% of Nucor’s long-term debt was in industrial revenue bonds that have variable interest rates that are adjusted weekly. The remaining 80% of Nucor’s long-term debt was at fixed rates. Future changes in interest rates are not expected to significantly impact earnings.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk In the ordinary course of business, Nucor is exposed to a variety of market risks. We continually monitor these risks and develop strategies to manage them. Interest Rate Risk – Nucor manages interest rate risk by using a combination of variable-rate and fixed-rate debt.
Item 7A. Quantitative and Qualitat ive Disclosures About Market Risk In the ordinary course of business, Nucor is exposed to a variety of market risks. We continually monitor these risks and develop strategies to manage them. Interest Rate Risk – Nucor manages interest rate risk by using a combination of variable-rate and fixed-rate debt.
At December 31, 2022, accumulated other comprehensive loss, net of income taxes included $26.1 million in unrealized net-of-tax gains for the fair value of these derivative instruments. Changes in the fair values of derivatives not designated as hedges are recognized in net earnings each period.
At December 31, 2023, accumulated other comprehensive loss, net of income taxes included $13.9 million in unrealized net-of-tax losses for the fair value of these derivative instruments. Changes in the fair values of derivatives not designated as hedges are recognized in net earnings each period.
Open foreign currency derivative contracts at December 31, 2022 and 2021 were insignificant. 49
Open foreign currency derivative contracts at December 31, 2023 and 2022 were insignificant. 48

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