Nucor 2013 Annual Report Download - page 62

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61
15. FAIR VALUE MEASUREMENTS
The following table summarizes information regarding Nucor’s financial assets and financial liabilities that are measured at fair value as
of December 31, 2013 and 2012. Nucor does not currently have any non-financial assets or liabilities that are measured at fair value on
a recurring basis.
(in thousands)
Fair Value Measurements at Reporting Date Using
December 31,
Carrying
Amount in
Consolidated
Balance Sheets
Quoted Prices
in Active Markets
for Identical Assets
(Level 1)
Significant
Other Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
2013
Assets:
Cash equivalents $1,269,465 $1,269,465
Short-term investments 28,191 28,191
Total assets $1,297,656 $1,297,656 ——
Liabilities:
Foreign exchange and
commodity contracts $ (555) — $ (555) —
2012
Assets:
Cash equivalents $ 830,011 $ 830,011
Short-term investments 104,167 104,167
Restricted cash and investments 275,163 275,163
Total assets $1,209,341 $1,209,341 ——
Liabilities:
Foreign exchange and
commodity contracts $ (318) — $ (318) —
Fair value measurements for Nucor’s cash equivalents, short-term investments and restricted cash and investments are classified under
Level 1 because such measurements are based on quoted market prices in active markets for identical assets. Fair value measurements
for Nucor’s derivatives are classified under Level 2 because such measurements are based on published market prices for similar assets
or are estimated based on published market prices for similar assets or are estimated based on observable inputs such as interest rates,
yield curves, credit risks, spot and future commodity prices and spot and future exchange rates.
The fair value of short-term and long-term debt, including current maturities, was approximately $4.61 billion at December 31, 2013
($4.24 billion at December 31, 2012). The debt fair value estimates are classified under Level 2 because such estimates are based
on readily available market prices of our debt at December 31, 2013 and 2012, or similar debt with the same maturities, rating and
interest rates.
16. CONTINGENCIES
Nucor is subject to environmental laws and regulations established by federal, state and local authorities, and, accordingly, makes
provision for the estimated costs of compliance. Of the undiscounted total of $22.9 million of accrued environmental costs at
December 31, 2013 ($26.5 million at December 31, 2012), $6.9 million was classified in accrued expenses and other current
liabilities ($9.5 million at December 31, 2012) and $16.0 million was classified in deferred credits and other liabilities ($17.0 million
at December 31, 2012). Inherent uncertainties exist in these estimates primarily due to unknown conditions, evolving remediation
technology and changing governmental regulations and legal standards.