Nucor 2013 Annual Report Download - page 59

Download and view the complete annual report

Please find page 59 of the 2013 Nucor annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

58
significantly impacted the financial results of Duferdofin Nucor through the first half of 2012. After completing its assessment, Nucor
determined that the carrying amount exceeded its estimated fair value and recorded a $30.0 million impairment charge against
the Company’s investment in Duferdofin Nucor. This charge is included in impairment of non-current assets in the consolidated
statements of earnings.
Although the operating results of Duferdofin Nucor have improved since 2012 and there have been no significant deteriorations in
near-term financial projections or other key assumptions since the last impairment test performed in the fourth quarter of 2012, Nucor
concluded that it was appropriate to reassess its equity investment in Duferdofin Nucor for impairment during the fourth quarter of
2013 due to the protracted challenging steel market conditions in Europe. After completing its assessment, the Company determined
that the estimated fair value exceeded its carrying amount by a sufficient amount and that there was no indication of impairment.
The assumptions that most significantly affect the fair value determination include projected revenues and the discount rate. It is
reasonably possible that material deviation of future performance from the estimates used in our most recent valuation could result in
further impairment of our investment in Duferdofin Nucor.
In the third quarter of 2011, the Company concluded that an equity investment in a dust recycling project had been impaired, resulting
in an impairment charge of $13.9 million. This charge is included in impairment of non-current assets in the consolidated statements
of earnings.
11. CURRENT LIABILITIES
Book overdrafts, included in accounts payable in the consolidated balance sheets, were $81.6 million at December 31, 2013
($53.8 million at December 31, 2012). Dividends payable, included in accrued expenses and other current liabilities in the
consolidated balance sheets, were $118.7 million at December 31, 2013 ($117.6 million at December 31, 2012).
12. DEBT AND OTHER FINANCING ARRANGEMENTS
(in thousands)
December 31, 2013 2012
Industrial revenue bonds:
0.20% to 1.5%, variable,
due from 2014 to 2040 $1,030,200 $1,030,200
Notes, 5.0%, due 2013 — 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, 4.0%, due 2023 500,000 —
Notes, 6.40%, due 2037 650,000 650,000
Notes, 5.20%, due 2043 500,000 —
4,380,200 3,630,200
Less current maturities (3,300) (250,000)
$4,376,900 $3,380,200
Annual aggregate long-term debt maturities are: $3.3 million in 2014; $16.3 million in 2015; none in 2016; $600.0 million in 2017;
$500.0 million in 2018; and $3.261 billion thereafter.
In July 2013, Nucor issued $500.0 million of 4.00% notes due in 2023 and $500.0 million of 5.20% notes due in 2043. Net
proceeds of the issuances were $991.5 million. Costs of $8.5 million associated with the issuances have been capitalized and will
be amortized over the life of the notes.