Nucor 2013 Annual Report Download - page 54

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Stock-Based Compensation The Company recognizes the cost of stock-based compensation as an expense using fair value
measurement methods. The assumptions used to calculate the fair value of stock-based compensation granted are evaluated and
revised, as necessary, to reflect market conditions and experience.
Foreign Currency Translation For Nucor’s operations where the functional currency is other than the U.S. dollar, assets and liabilities
have been translated at year-end exchange rates, and income and expenses translated using average exchange rates for the
respective periods. Adjustments resulting from the process of translating an entity’s financial statements into the U.S. dollar have been
recorded in accumulated other comprehensive income (loss) and are included in net earnings only upon sale or liquidation of the
underlying investments. Foreign currency transaction gains and losses are included in net earnings in the period they occur.
Recently Adopted Accounting Pronouncements In the first quarter of 2013, Nucor adopted new accounting guidance requiring
additional disclosures on reclassifications from accumulated other comprehensive income into net income. The new accounting
guidance requires entities to report either parenthetically on the face of the financial statements or in the notes to the financial
statements these reclassifications for each financial statement line item. Nucor elected to report this information within the notes
to the financial statements (see Note 21). This new guidance only impacts disclosures and has no impact on Nucor’s consolidated
financial position, results of operations or cash flows.
In the first quarter of 2014, Nucor will adopt new accounting guidance, which requires unrecognized tax benefits to be presented as
a decrease in net operating loss, similar tax loss or tax credit carryforward if certain criteria are met. The new guidance may affect
balance sheet classification of certain unrecognized tax benefits and will have no impact on Nucor’s consolidated results of operations
or cash flows.
3. ACQUISITIONS AND DISPOSITIONS
On June 20, 2012, Nucor completed the acquisition of the entire equity interest in Skyline Steel LLC (Skyline) and its subsidiaries
for the cash purchase price of approximately $675.4 million. No cash was received nor was any debt assumed as a result of the
acquisition. Skyline’s financial results are included as part of the steel mills segment (see Note 23).
Skyline is a steel foundation manufacturer and distributor serving the U.S., Canada, Mexico and the Caribbean. Skyline’s steel
products are used in marine construction, bridge and highway construction, heavy civil construction, storm protection, underground
commercial parking and environmental containment projects in the infrastructure and construction industries. Skyline is a significant
consumer of H-piling and sheet piling from Nucor-Yamato Steel Company.
We have allocated the purchase price for Skyline to its individual assets acquired and liabilities assumed.
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed of Skyline as of the date
of acquisition:
(in thousands)
Accounts receivable $128,004
Inventory 260,473
Other current assets 4,410
Property, plant and equipment 70,100
Goodwill 138,579
Other intangible assets 215,600
Total assets acquired 817,166
Current liabilities 137,654
Deferred credits and other liabilities 4,078
Total liabilities assumed 141,732
Net assets acquired $675,434