Nucor 2013 Annual Report Download - page 63

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62
Nucor has been named, along with other major steel producers, as a co-defendant in several related antitrust class-action complaints
filed by Standard Iron Works and other steel purchasers in the United States District Court for the Northern District of Illinois. The
majority of these complaints were filed in September and October of 2008, with two additional complaints being filed in July and
December of 2010. Two of these complaints have been voluntarily dismissed and are no longer pending. The plaintiffs allege that
from April 1, 2005 through December 31, 2007, eight steel manufacturers, including Nucor, engaged in anticompetitive activities with
respect to the production and sale of steel. The plaintiffs seek monetary and other relief. Although we believe the plaintiffs’ claims
are without merit and will vigorously defend against them, we cannot at this time predict the outcome of this litigation or estimate the
range of Nucor’s potential exposure.
We are from time to time a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business.
With respect to all such lawsuits, claims and proceedings, we record reserves when it is probable a liability has been incurred and the
amount of loss can be reasonably estimated. We do not believe that any of these proceedings, individually or in the aggregate, would
be expected to have a material adverse effect on our results of operations, financial position or cash flows. Nucor maintains liability
insurance for certain risks that is subject to certain self-insurance limits.
17. STOCK-BASED COMPENSATION
Stock Options Stock options may be granted to Nucor’s key employees, officers and non-employee directors with exercise prices
at 100% of the market value on the date of the grant. The stock options granted since 2010 are generally exercisable at the end
of three years and have a term of 10 years. All stock options granted prior to the beginning of 2010 were fully exercised as of
December 31, 2013. New shares are issued upon exercise of stock options.
A summary of activity under Nucor’s stock option plans is as follows:
(shares in thousands)
Year Ended December 31, 2013 2012 2 011
Shares
Weighted-
Average
Exercise
Price Shares
Weighted-
Average
Exercise
Price Shares
Weighted-
Average
Exercise
Price
Number of shares under option:
Outstanding at beginning of year 1,543 $39.03 1,156 $38.26 983 $29.14
Granted 546 $44.51 741 $35.76 560 $42.34
Exercised — — (354) $29.67 (387) $20.96
Canceled — — — — — —
Outstanding at end of year 2,089 $40.47 1,543 $39.03 1,156 $38.26
Options exercisable at end of year 1,012 $39.75 — — 354 $29.67