Nucor 2011 Annual Report Download - page 53

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In December 2010, Nucor and its joint venture partners agreed to permanently close the HIsmelt plant in Kwinana, Western Australia.
Nucor has a 25% interest in the joint venture that will be terminated. Nucor recorded a pre-tax charge of $10.0 million in the fourth
quarter of 2010 (none in 2011 and 2009) in marketing, administrative and other expenses for its portion of the estimated closure costs.
11. CURRENT LIABILITIES
Book overdrafts, included in accounts payable in the consolidated balance sheets, were $53.6 million at December 31, 2011 ($63.0
million at December 31, 2010). Dividends payable, included in accrued expenses and other current liabilities in the consolidated
balance sheets, were $116.3 million at December 31, 2011 ($115.2 million at December 31, 2010).
12. DEBT AND OTHER FINANCING ARRANGEMENTS
(in thousands)
December 31, 2011 2010
Industrial revenue bonds:
0.11% to 1.7%, variable,
due from 2014 to 2040 $1,030,200 $1,030,200
Notes, 4.875%, due 2012 350,000 350,000
Notes, 5.0%, due 2012 300,000 300,000
Notes, 5.0%, due 2013 250,000 250,000
Notes, 5.75%, due 2017 600,000 600,000
Notes, 5.85%, due 2018 500,000 500,000
Notes, 4.125%, due 2022 600,000 600,000
Notes, 6.40%, due 2037 650,000 650,000
4,280,200 4,280,200
Less current maturities (650,000) —
$3,630,200 $4,280,200
Annual aggregate long-term debt maturities are: $650.0 million in 2012; $250.0 million in 2013; $3.3 million in 2014; $16.3 million in
2015; none in 2016; and $3.361 billion thereafter.
In December 2011, Nucor received increased commitments under the unsecured revolving credit facility to provide for up to $1.50
billion in revolving loans. The amended multi-year revolving credit agreement matures in December 2016 and allows up to $500.0
million in additional commitments at Nucor’s election in accordance with the terms set forth in the credit agreement. Up to the
equivalent of $850.0 million of the credit facility is available for foreign currency loans, up to $500.0 million is available for the issuance
of letters of credit, and up to $500.0 million is available for the issuance of revolving loans for Nucor subsidiaries in accordance with
terms set forth in the credit agreement. The credit facility provides for a pricing grid based upon the credit rating of Nucor’s senior
unsecured long-term debt and, alternatively, interest rates quoted by lenders in connection with competitive bidding. The credit facility
includes customary financial and other covenants, including a limit on the ratio of funded debt to capital of 60%, a limit on Nucor’s
ability to pledge the Company’s assets and a limit on consolidations, mergers and sales of assets. As of December 31, 2011, Nucor’s
funded debt to total capital ratio was 36%, and Nucor was in compliance with all covenants under the credit facility. No borrowings were
outstanding under the credit facility as of December 31, 2011 and 2010.
Harris Steel has credit facilities totaling approximately $33.8 million, with $1.6 million of borrowings outstanding at December 31,
2011. In addition, the business of Nucor Trading S.A. is financed by trade credit arrangements totaling approximately $25.0 million
with a number of Swiss-based banking institutions. These arrangements, principally trade finance facilities, are non-recourse to Nucor
and its other subsidiaries. As of December 31, 2011, Nucor Trading S.A. had outstanding borrowings of $0.3 million and outstanding
guarantees of $0.1 million.
Letters of credit totaling $29.8 million were outstanding as of December 31, 2011 related to certain obligations, including workers’
compensation, utilities deposits and credit arrangements by Nucor Trading S.A. for commitments to purchase inventories.
Nucor capitalized $3.5 million of interest expense in 2011 ($0.9 million in 2010 and $16.4 million in 2009) related to the borrowing
costs associated with various construction projects.