Certain statements made in this report, or in other public filings, press releases, or other written or oral communications made byNucor , which are not historical facts are forward-looking statements subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties which we expect will or may occur in the future and may impact our business, financial condition and results of operations. The words "anticipate," "believe," "expect," "intend," "project," "may," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. These forward-looking statements reflect the Company's best judgment based on current information, and, although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this report. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including pressure from imports and substitute materials; (2)U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to general market conditions, and in particular, prevailing market steel prices and changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (4) the availability and cost of electricity and natural gas, which could negatively affect our cost of steel production or result in a delay or cancellation of existing or future drilling within our natural gas drilling programs; (5) critical equipment failures and business interruptions; (6) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity inthe United States ; (7) impairment in the recorded value of inventory, equity investments, fixed assets, goodwill or other long-lived assets; (8) uncertainties and volatility surrounding the global economy, including excess world capacity for steel production, inflation and interest rate changes; (9) fluctuations in currency conversion rates; (10) significant changes in laws or government regulations affecting environmental compliance, including legislation and regulations that result in greater regulation of greenhouse gas emissions that could increase our energy costs, capital expenditures and operating costs or cause one or more of our permits to be revoked or make it more difficult to obtain permit modifications; (11) the cyclical nature of the steel industry; (12) capital investments and their impact on our performance; (13) our safety performance; (14) our ability to integrate businesses we acquire; (15) the impact of the COVID-19 pandemic and any variants of the virus; and (16) the risks discussed in "Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K for the year endedDecember 31, 2021 and elsewhere in this report. Caution should be taken not to place undue reliance on the forward-looking statements included in this report. We assume no obligation to update any forward-looking statements except as may be required by law. In evaluating forward-looking statements, these risks and uncertainties should be considered, together with the other risks described from time to time in our reports and other filings with theUnited States Securities and Exchange Commission . The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this report, as well as the audited consolidated financial statements and the notes thereto, "Item 1A. Risk Factors" and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" contained inNucor's Annual Report on Form 10-K for the year endedDecember 31, 2021 .
Overview
Nucor and its affiliates manufacture steel and steel products.Nucor also produces DRI for use in its steel mills. Through DJJ, the Company also processes ferrous and nonferrous metals and brokers ferrous and nonferrous metals, pig iron, hot briquetted iron and DRI. Most ofNucor's operating facilities and customers are located inNorth America .Nucor's operations include international trading and sales companies that buy and sell steel and steel products manufactured by the Company and others.Nucor isNorth America's largest recycler, using scrap steel as the primary raw material in producing steel and steel products.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 and rebar distribution businesses; andNucor's equity method investments inNuMit and Nucor-JFE. The steel products segment includes steel joists and joist girders, steel deck, fabricated concrete reinforcing steel, cold finished steel, precision castings, steel fasteners, metal building systems, insulated metal panels, overhead doors, steel grating, tubular products, steel racking, piling products, wire and wire mesh, and utility towers and structures. The raw materials segment includes DJJ, primarily a scrap broker and processor;Nu-Iron Unlimited and Nucor SteelLouisiana , two facilities that produce DRI used by the steel mills; and our natural gas production operations. 19
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OnFebruary 1, 2022 ,Nucor used cash on hand to acquire a 51% controlling ownership position in CSI for a cash purchase price of approximately$400.0 million , adjusted for net debt and working capital at closing. CSI is a flat-rolled steel converter with the capability to produce more than two million tons of finished steel and steel products annually. The company has five product lines, including hot rolled, pickled and oiled, cold rolled, galvanized and ERW pipe. Key end-use markets served by CSI include customers in the construction, service center and energy industries. We believe this acquisition helps giveNucor a strong presence in the Western region ofthe United States and grows our ability to produce a wide range of value-added sheet products. The CSI business financial results were included as part of the steel mills segment beginning onFebruary 1, 2022 , the date of the acquisition ofNucor's 51% controlling ownership position. OnJune 24, 2022 ,Nucor used cash on hand to acquire the assets of C.H.I. for a purchase price, net of cash acquired, of approximately$3.00 billion . C.H.I. is a leading manufacturer of overhead doors for residential and commercial markets inthe United States andCanada . Commercial overhead doors are used in warehousing and retail, areas thatNucor has focused its attention on recently through other value-added products such as insulated metal panels (CENTRIA, Metl-Span and TrueCore brands) and steel racking solutions (Nucor Warehouse Systems). It is expected that the C.H.I. acquisition will also benefit fromNucor's recent paint line investments at its Hickman,Arkansas andCrawfordsville, Indiana sheet mills. The C.H.I. business financial results are included as part of the steel products segment. The average utilization rates of all operating facilities in the steel mills, steel products and raw materials segments were approximately 80%, 76% and 73%, respectively, in the first nine months of 2022 compared with approximately 96%, 77% and 75%, respectively, in the first nine months of 2021.
Results of Operations
Nucor reported consolidated net earnings of$1.69 billion , or$6.50 per diluted share, for the third quarter of 2022, as compared to consolidated net earnings of$2.56 billion , or$9.67 per diluted share, for the second quarter of 2022, and$2.13 billion , or$7.28 per diluted share, for the third quarter of 2021. The second quarter of 2022 was the most profitable quarter inNucor's history, and the third quarter of 2021 was the most profitable quarter inNucor's history at that time. The decline in third quarter of 2022 earnings as compared to the second quarter of 2022 was due primarily to the decreased earnings of the steel mills segment. The steel mills segment experienced lower shipping volumes in the third quarter of 2022 compared to the second quarter of 2022. Average selling prices in the steel mills segment decreased more rapidly than raw materials costs in the third quarter of 2022, resulting in contracted metal margins when compared to the second quarter of 2022. The decreased shipping volumes and metal margin contractions were most pronounced at our sheet and plate mills. The steel products segment reported another strong quarter of profitability in the third quarter of 2022 due to continued robust demand in nonresidential construction markets. The raw materials segment's earnings increased in the third quarter of 2022 compared to the second quarter of 2022 due to the increased profitability of our DRI facilities which more than offset declines at our scrap brokerage and processing businesses. The decline in earnings in the third quarter of 2022 as compared to the third quarter of 2021 also was due primarily to the decreased earnings of the steel mills segment, which had decreased shipping volumes and average selling prices in the third quarter of 2022. The steel products segment earnings increased significantly in the third quarter of 2022 as compared to the third quarter of 2021 due to increased average selling prices and margin expansion. The earnings of the raw materials segment in the third quarter of 2022 as compared to the third quarter of 2021 increased due to the increased profitability of our DRI facilities.Nucor reported consolidated net earnings of$6.35 billion , or$23.85 per diluted share, for the first nine months of 2022, which established a new record for earnings in the first nine months of a year. By comparison,Nucor reported consolidated net earnings of$4.58 billion , or$15.34 per diluted share, for the first nine months of 2021, which was the previous Company record for earnings in the first nine months of a year.Nucor had Company record-setting quarterly profitability in the first quarter of 2021, which increased significantly in the second half of 2021 due to strong demand in most of the end markets we serve and increased average selling prices. The trend of strong profitability continued into 2022, and began to decline in the third quarter of 2022, a trend that we expect to continue into the fourth quarter of the year. The primary driver for the increase in earnings in the first nine months of 2022 was the increased profitability of the steel products segment. After a strong year of profitability in 2021 fueled by robust demand in nonresidential construction markets, the steel products segment experienced increases in margin expansion due to higher average selling prices, particularly at our joist and deck businesses, in the first nine months of 2022. The profitability of the steel mills segment in the first nine months of 2022 increased from the first nine months of 2021, due to the much stronger start to 2022 as compared to the first nine months of 2021. The primary driver for the increase in the raw materials segment earnings in the first nine months of 2022 as compared to the first nine months of 2021 was the increased profitability of our DRI facilities. 20
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The ongoing conflict inUkraine , other geopolitical tensions and rapidU.S. and international monetary policy actions attempting to lower inflation likely mean tempered near-term demand and a strongerU.S. dollar, both of which are challenging elements forNucor's customer base. Service centers in particular are cautious at this time, negatively impacting pricing and volumes for the steel mills segment. Even with this uncertainty, we believe that the medium- and long-term outlook for our business is positive. We continue to see good demand in our steel products segment largely due to nonresidential construction markets.
The following discussion provides a greater quantitative and qualitative
analysis of
Net sales to external customers by segment for the third quarter and first nine months of 2022 and 2021 were as follows (in thousands):
Three Months (13 Weeks) Ended
Nine Months (39 Weeks) Ended
October 1, 2022 October 2, 2021 % Change October 1, 2022 October 2, 2021 % Change Steel mills$5,908,153 $6,862,133 -14%$19,682,829 $17,380,819 13% Steel products 4,087,107 2,744,279 49% 11,253,143 6,795,441 66% Raw materials 505,495 706,811 -28% 1,852,539 1,943,267 -5% Total net sales to external customers$10,500,755 $10,313,223 2%$32,788,511 $26,119,527 26% Net sales for the third quarter of 2022 increased 2% from the third quarter of 2021. Average sales price per ton increased 14% from$1,438 in the third quarter of 2021 to$1,637 in the third quarter of 2022. Total tons shipped to outside customers in the third quarter of 2022 were 6,415,000 tons, an 11% decrease from the third quarter of 2021. Net sales for the first nine months of 2022 increased 26% from the first nine months of 2021. Average sales price per ton increased 39% from$1,196 in the first nine months of 2021 to$1,657 in the first nine months of 2022. Total tons shipped to outside customers in the first nine months of 2022 were 19,786,000 tons, a 9% decrease from the first nine months of 2021.
In the steel mills segment, sales tons for the third quarter and first nine months of 2022 and 2021 were as follows (in thousands):
Three Months (13 Weeks) Ended Nine Months (39 Weeks) Ended October October October October 1, 2022 2, 2021 % Change 1, 2022 2, 2021 % Change Outside steel shipments 4,553 5,144 -11% 14,133 15,690 -10% Inside steel shipments 1,316 1,399 -6% 3,998 4,131 -3% Total steel shipments 5,869 6,543 -10% 18,131 19,821 -9% Net sales for the steel mills segment decreased 14% in the third quarter of 2022 from the third quarter of 2021, due primarily to a 3% decrease in the average sales price per ton, from$1,339 to$1,296 , and an 11% decrease in tons sold to outside customers. Net sales for the steel mills segment increased 13% in the first nine months of 2022 from the first nine months of 2021, due to a 25% increase in the average sales price per ton from$1,112 to$1,388 , partially offset by a 10% decrease in tons sold to outside customers. 21
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Outside sales tonnage for the steel products segment for the third quarter and first nine months of 2022 and 2021 was as follows (in thousands):
Three Months (13 Weeks) Ended Nine Months (39 Weeks) Ended October October October October 1, 2022 2, 2021 % Change 1, 2022 2, 2021 % Change Joist sales 160 190 -16% 497 529 -6% Deck sales 129 139 -7% 388 404 -4% Cold finished sales 112 123 -9% 368 383 -4% Rebar fabrication sales 350 323 8% 980 943 4% Piling products sales 119 144 -17% 349 451 -23% Tubular products sales 231 260 -11% 735 779 -6% Other steel products sales 190 128 48% 520 337 54% Total steel products sales 1,291 1,307 -1% 3,837 3,826 - Net sales for the steel products segment increased 49% in the third quarter of 2022 compared to the third quarter of 2021, due to a 51% increase in the average sales price per ton, from$2,101 to$3,167 , which was partially offset by a 1% decrease in shipping volumes. Average selling prices increased across most businesses within the steel products segment in the third quarter of 2022 as compared to the third quarter of 2021, most notably at our joist and deck businesses. Net sales for the steel products segment increased 66% in the first nine months of 2022 compared to the first nine months of 2021, due to a 65% increase in the average sales price per ton, from$1,776 to$2,933 . Average selling prices increased across all businesses within the steel products segment in the first nine months of 2022 as compared to the first nine months of 2021, most notably at our joist and deck businesses. Net sales for the raw materials segment decreased 28% in the third quarter of 2022 compared to the third quarter of 2021, due to decreases for both DJJ brokerage and scrap processing operations in average sales price per ton and tons shipped to outside customers. In the third quarter of 2022, approximately 90% of outside sales for the raw materials segment were from the brokerage operations of DJJ, and approximately 6% of outside sales were from the scrap processing operations of DJJ (91% and 7%, respectively, in the third quarter of 2021). Net sales for the raw materials segment decreased 5% in the first nine months of 2022 compared to the first nine months of 2021, due to decreased average sales price per ton in the scrap processing operations and decreased tons shipped to outside customers in both the DJJ brokerage and scrap processing operations. In the first nine months of 2022, approximately 91% of outside sales for the raw materials segment were from the brokerage operations of DJJ, and approximately 7% of outside sales were from the scrap processing operations of DJJ (90% and 8%, respectively, in the first nine months of 2021). 22
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Table of Contents Gross Margins
• The primary driver of the decrease in gross margin in the third quarter of
2022 as compared to the third quarter of 2021 was lower metal margins in the
steel mills segment. Metal margin is the difference between the selling
price of steel and the cost of scrap and scrap substitutes.
Scrap and scrap substitutes are the most significant element in the total cost of steel production. The average scrap and scrap substitute cost per gross ton used in the third quarter of 2022 was$502 , a 2% decrease compared to$511 in the third quarter of 2021. The decrease in scrap and scrap substitute cost was more than offset by decreased average selling prices and lower shipments to external customers, resulting in lower total metal margins. Scrap prices are driven by the global supply and demand for scrap and other iron-based raw materials used to make steel. Scrap prices were volatile during the first nine months of 2022 as the conflict inUkraine and other factors disrupted global supply chains. As we enter the fourth quarter of 2022, scrap prices continue to decrease.
• The decrease in total gross margin was partially offset by increases in
gross margins in the steel products segment. The largest increases in gross
margins in the steel products segment were at our joist, deck and building
systems businesses. Demand in nonresidential construction markets continues
to be strong. As we enter the fourth quarter of 2022, backlogs for the steel
products segment are strong.
• Pre-operating and start-up costs of new facilities were approximately
million in the third quarter of 2022 and approximately
third quarter of 2021. Pre-operating and start-up costs in the third quarter
of 2022 and 2021 primarily included costs related to the plate mill being
built in
defines pre-operating and start-up costs, all of which are expensed, as the
losses attributable to facilities or major projects that are either under
construction or in the early stages of operation. Once these facilities or
projects have attained a utilization rate that is consistent with our similar operating facilities,Nucor no longer considers them to be in start-up.
• Gross margins in the raw materials segment increased in the third quarter of
2022 as compared to the third quarter of 2021, primarily due to increased
gross margins at our DRI facilities, which had strong profitability in the
third quarter of 2022.
Nucor recorded gross margins of$10.41 billion (32%) in the first nine months of 2022, which was an increase compared with$7.50 billion (29%) in the first nine months of 2021.
• The primary driver of the increase in gross margin in the first nine months
of 2022 as compared to the first nine months of 2021 was gross margins in
the steel products segment, which benefitted from higher average selling
prices and continued robust demand in nonresidential construction markets.
• The steel mills segment had increased gross margins in the first nine months
of 2022 compared to the first nine months of 2021. The average scrap and
scrap substitute cost per gross ton used in the first nine months of 2022
was
The increase in scrap and scrap substitute cost was more than offset by increased average selling prices. • Pre-operating and start-up costs of new facilities increased to approximately$174 million in the first nine months of 2022 from
approximately
and start-up costs in the first nine months of 2022 and 2021 primarily
included costs related to the plate mill being built in
mill expansion in
expansion in
• Gross margins in the raw materials segment increased in the first nine
months of 2022 as compared to the first nine months of 2021, primarily due
to increased gross margins at our DRI facilities and increased average
selling prices for DJJ brokerage operations. 23
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Marketing, Administrative and Other Expenses
A major component of marketing, administrative and other expenses is profit sharing and other incentive compensation costs. These costs, which are based upon and fluctuate withNucor's financial performance, decreased by$87.1 million in the third quarter of 2022 as compared to the third quarter of 2021, and increased by$179.7 million in the first nine months of 2022 as compared to the first nine months of 2021. The decrease in the third quarter of 2022 was due to the Company's decreased earnings in the third quarter of 2022 as compared to the third quarter of 2021. The increase in the first nine months of 2022 was due toNucor's increased profitability in the first nine months of 2022 as compared to the first nine months of 2021, which resulted in significantly increased accruals related to profit sharing.
Equity in Earnings of Unconsolidated Affiliates
Equity in earnings of unconsolidated affiliates was$8.4 million and$32.5 million in the third quarter of 2022 and 2021, respectively, and$23.2 million and$65.1 million in the first nine months of 2022 and 2021, respectively. The decreases in equity method investment earnings were primarily due to increased losses at Nucor-JFE, which is still in the start-up phase of its operations.
Losses on Assets
Included in the first nine months of 2021 earnings was a non-cash loss on assets of$42.0 million related to our leasehold interest in unproved oil and natural gas properties in the raw materials segment. Also included in the first nine months of 2021 earnings were losses on assets of$9.0 million in the steel products segment.
Interest Expense (Income)
Net interest expense for the third quarter and first nine months of 2022 and 2021 was as follows (in thousands):
Three Months (13 Weeks) Ended Nine Months (39 Weeks) Ended October 2, October 1, October 2, October 1, 2022 2021 2022 2021 Interest expense $ 54,569$ 43,908 $ 162,159 $ 122,539 Interest income (12,222 ) (623 ) (18,914 ) (3,830 ) Interest expense, net $ 42,347$ 43,285 $ 143,245 $ 118,709 Interest expense increased in the third quarter and first nine months of 2022 compared to the third quarter and first nine months of 2021, primarily due to the following: an increase in average debt outstanding; higher average interest rates on debt; and approximately$9.3 million related to the early redemption of the 2023 Notes. Interest income increased in the third quarter and first nine months of 2022 compared to the third quarter and first nine months of 2021 due to higher average interest rates on investments and an increase in average investment levels.
Earnings Before Income Taxes and Noncontrolling Interests
The table below presents earnings before income taxes and noncontrolling interests by segment for the third quarter and first nine months of 2022 and 2021 (in thousands). The changes between periods were driven by the quantitative and qualitative factors previously discussed. Three Months (13 Weeks) Ended Nine
Months (39 Weeks) Ended
Oct. 1, 2022 Oct. 2, 2021 Oct. 1, 2022 Oct. 2, 2021 Steel mills$ 1,287,855 $ 3,116,539 $ 6,682,432 $ 6,606,320 Steel products 1,196,845 368,595 3,011,644 839,737 Raw materials 279,189 161,870 638,640 505,248 Corporate/eliminations (440,967 ) (777,897 ) (1,621,277 ) (1,758,204 )$ 2,322,922 $ 2,869,107 $ 8,711,439 $ 6,193,101 24
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Table of Contents Noncontrolling Interests Noncontrolling interests represent the income attributable to the holders of noncontrolling interests inNucor's joint ventures, NYS and CSI.Nucor owns a 51% controlling interest in each of NYS and CSI. The increase in earnings attributable to noncontrolling interests in the third quarter and first nine months of 2022 as compared to the third quarter and first nine months of 2021 was due to the increased earnings of NYS, which was a result of the increased metal margins, as well as the earnings of CSI, for which results were consolidated beginning onFebruary 1, 2022 , the dateNucor acquired its 51% controlling ownership position.
Provision for Income Taxes
The effective tax rate for the third quarter of 2022 was 22.6% compared to 22.5% for the third quarter of 2021. The expected effective tax rate for the full year of 2022 is approximately 22.6%. We estimate that in the next 12 months our gross unrecognized tax benefits, which totaled$136.9 million atOctober 1, 2022 , exclusive of interest, could decrease by as much as$8.5 million as a result of the expiration of the statute of limitations and the closures of examinations, substantially all of which would impact the effective tax rate. TheIRS is currently examiningNucor's 2015, 2019 and 2020 federal income tax returns.Nucor has concludedU.S. federal income tax matters for tax years through 2014, and for tax years 2016 and 2018. The tax years 2017 and 2021 remain open to examination by theIRS . The 2015 and 2018 Canadian income tax returns forHarris Steel Group Inc. and certain related affiliates are currently under examination by theCanada Revenue Agency . The tax years 2016 through 2021 remain open to examination by other major taxing jurisdictions to whichNucor is subject (primarilyCanada and other state and local jurisdictions).
Net Earnings Attributable to Nucor Stockholders and Return on Equity
Nucor reported consolidated net earnings of$1.69 billion , or$6.50 per diluted share, in the third quarter of 2022 as compared to consolidated net earnings of$2.13 billion , or$7.28 per diluted share, in the third quarter of 2021. Net earnings attributable toNucor stockholders as a percentage of net sales were 16.1% and 20.6% in the third quarter of 2022 and 2021, respectively.Nucor reported consolidated net earnings of$6.35 billion , or$23.85 per diluted share, in the first nine months of 2022 as compared to consolidated net earnings of$4.58 billion , or$15.34 per diluted share, in the first nine months of 2021. Net earnings attributable toNucor stockholders as a percentage of net sales were 19.4% and 17.5% in the first nine months of 2022 and 2021, respectively. Annualized return on average stockholders' equity was 53.4% and 50.4% in the first nine months of 2022 and 2021, respectively.
Outlook
We continue to believe that 2022 will be the most profitable year for earnings
in
We expect fourth quarter of 2022 earnings to be decreased from the third quarter of 2022. In the steel mills segment, we expect considerably lower earnings in the fourth quarter of 2022 as compared to the third quarter of 2022 due to lower average selling prices and lower volumes, with the largest decrease in profitability expected at our sheet mills. The steel products segment is expected to have another strong quarter in the fourth quarter of 2022, but the segment's profitability is anticipated to decrease from the third quarter of 2022 primarily due to typical seasonality experienced in the fourth quarter. The raw materials segment is expected to have significantly decreased earnings in the fourth quarter of 2022 as compared to the third quarter of 2022 due to decreased selling prices for raw materials.Nucor's largest exposure to market risk is in our steel mills and steel products segments. Our largest single customer in the third quarter of 2022 represented approximately 5% of sales and has consistently paid within terms. In the raw materials segment, we are exposed to price fluctuations related to the purchase of scrap and scrap substitutes, pig iron and iron ore. Businesses within the steel mills segment account for the majority of the raw materials segment's sales. 25
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Liquidity and Capital Resources
We believe our financial strength is a key strategic advantage among domestic steel producers, particularly during recessionary business cycles. We carry the highest credit ratings of any steel producer headquartered inNorth America , with an A- long-term rating fromStandard & Poor's and a Baa1 long-term rating from Moody's. Our credit ratings are dependent, however, upon a number of factors, both qualitative and quantitative, and are subject to change at any time. The disclosure of our credit ratings is made in order to enhance investors' understanding of our sources of liquidity and the impact of our credit ratings on our cost of funds. Our liquidity position as ofOctober 1, 2022 remained strong, consisting of total cash and cash equivalents, short-term investments and restricted cash and cash equivalents of$3.51 billion as of such date compared to$2.76 billion as ofDecember 31, 2021 . Of these totals, the amount of restricted cash and cash equivalents was$79.9 million atOctober 1, 2022 and$143.8 million atDecember 31, 2021 . Approximately$896.3 million of the cash and cash equivalents position atOctober 1, 2022 , was held by our majority-owned and controlled subsidiaries, including CSI which was acquired onFebruary 1, 2022 , as compared to$540.3 million atDecember 31, 2021 . Cash provided by operating activities was$7.54 billion in the first nine months of 2022 as compared to$3.62 billion in the first nine months of 2021. The$3.92 billion increase was primarily driven by net earnings of$6.75 billion for the first nine months of 2022, an increase of$1.97 billion over net earnings in the prior year period of$4.78 billion . In addition, changes in operating assets and operating liabilities (exclusive of acquisitions) only used cash of$58.3 million in the first nine months of 2022 as compared to$2.04 billion in the first nine months of 2021. The funding of our working capital in the first nine months of 2022 decreased by$1.98 billion over the first nine months of 2021 mainly due to the change in accounts receivable using$1.52 billion less cash and the change in inventories using$2.35 billion less cash as compared to the same period in 2021. The change in accounts receivable used cash of$104.8 million in the first nine months of 2022 as compared to$1.62 billion in the first nine months of 2021. The change in inventories provided cash of$371.1 million in the first nine months of 2022 as compared to using cash of$1.98 billion in the same period of 2021. These changes were offset by the changes in accounts payable, federal income taxes and salaries, wages and related accruals in the first nine months of 2022 as compared to the first nine months of 2021. The change in accounts payable used cash of$299.8 million in the first nine months of 2022 as compared to providing cash of$343.0 million in the first nine months of 2021, a decrease of$642.8 million . The change in federal income taxes used cash of$302.3 million in the first nine months of 2022 as compared to providing cash of$262.2 million in the first nine months of 2021, a decrease of$564.5 million . The change in salaries, wages and related accruals provided cash of$121.2 million in the first nine months of 2022 as compared to$835.4 million in the first nine months of 2021, a decrease of$714.1 million , due primarily to the payout in the first nine months of 2022 of the incentive compensation for 2021, which was higher than the incentive compensation for 2020 that was paid out in the first nine months of 2021 due to higher earnings in 2021. The current ratio was 3.1 at the end of the third quarter of 2022 and 2.5 at year-end 2021. The increase in the current ratio at the end of the third quarter of 2022 compared to year-end 2021 was due to the increase in cash and cash equivalents and short-term investments and the decrease in the current portion of long-term debt due to the payment of the$600.0 million aggregate principal amount outstanding of the 2022 Notes in the third quarter of 2022. Cash used in investing activities during the first nine months of 2022 was$4.99 billion as compared to$2.38 billion in the prior year period, an increase of$2.61 billion . The primary reason for the change was an increase in cash used for acquisitions (net of cash acquired) of$2.20 billion for the acquisitions of CSI onFebruary 1, 2022 and C.H.I. onJune 24, 2022 . Cash used for capital expenditures of$1.43 billion in the first nine months of 2022 increased by$223.0 million over the same period of 2021 primarily due to the plate mill under construction inKentucky , the sheet mill expansion inIndiana and the sheet mill under construction inWest Virginia . Capital expenditures for 2022 are estimated to be approximately$2.0 billion as compared to$1.70 billion in 2021. The projects that we anticipate will have the largest capital expenditures in 2022 are the plate mill under construction inKentucky , the sheet mill expansions inKentucky andIndiana and the sheet mill under construction inWest Virginia . Cash used in financing activities during the first nine months of 2022 was$1.93 billion as compared to$1.95 billion in the first nine months of 2021. The primary uses of cash were: (i) stock repurchases of$2.36 billion in the first nine months of 2022 as compared to$1.77 billion in the first nine months of 2021, an increase of$586.1 million ; (ii) repayments of long-term debt of$1.11 billion in the first nine months of 2022 (none in the same period of 2021); and (iii) distributions to noncontrolling interests of$300.8 million in the first nine months of 2022 as compared to$120.6 million in the first nine months of 2021, an increase of$180.2 million . The primary source of cash offsetting these uses of cash was proceeds from long-term debt, net of discount to the public, of$2.09 billion in the first nine months of 2022 as compared to$197.0 million in the first nine months of 2021, an increase of$1.89 billion . In the first nine months of 2022,Nucor issued$500.0 million aggregate principal amount of the 2025 Notes,$500.0 million aggregate principal amount of the 2027 Notes,$550.0 million aggregate 26
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principal amount of the 2032 Notes and$550.0 million aggregate principal amount of the 2052 Notes. OnApril 25, 2022 ,Nucor redeemed all$500.0 million aggregate principal amount outstanding of the 2023 Notes. OnAugust 15, 2022 ,Nucor redeemed all$600.0 million aggregate principal amount outstanding of the 2022 Notes.Nucor's $1.75 billion revolving credit facility matures onNovember 5, 2026 . The revolving credit facility includes only one financial covenant, which is a limit of 60% on the ratio of funded debt to total capital. In addition, the revolving credit facility contains customary non-financial covenants, including a limit onNucor's ability to pledge the Company's assets and a limit on consolidations, mergers and sales of assets. As ofOctober 1, 2022 , the funded debt to total capital ratio was 26.3% and we were in compliance with all non-financial covenants under the revolving credit facility. No borrowings were outstanding under the revolving credit facility as ofOctober 1, 2022 .
In
Funds provided from operations, cash and cash equivalents, short-term investments, restricted cash and cash equivalents and new borrowings under our existing credit facilities are expected to be adequate to meet future capital expenditure and working capital requirements for existing operations for at least the next 24 months. We also believe we have adequate access to capital markets for liquidity purposes.
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