Nucor 2013 Annual Report Download - page 66

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65
Compensation expense for common stock and common stock units awarded under the AIP and LTIP is recorded over the performance
measurement and vesting periods based on the anticipated number and market value of shares of common stock and common stock
units to be awarded. Compensation expense for anticipated awards based upon Nucor’s financial performance, exclusive of amounts
payable in cash, was $6.3 million in 2013 ($6.6 million in 2012 and $7.4 million in 2011). The total fair value of shares vested during
2013 was $5.7 million ($6.0 million in 2012 and $7.3 million in 2011). As of December 31, 2013, unrecognized compensation
expense related to unvested restricted stock awards was $0.6 million, which is expected to be recognized over a weighted-average
period of 1.7 years.
18. EMPLOYEE BENEFIT PLANS
Nucor makes contributions to a Profit Sharing and Retirement Savings Plan for qualified employees based on the profitability of
the Company. Nucor’s expense for these benefits totaled $71.7 million in 2013 ($77.7 million in 2012 and $117.7 million in 2011).
The related liability for these benefits is included in salaries, wages and related accruals.
Nucor also has a medical plan covering certain eligible early retirees. The unfunded obligation, included in deferred credits and other
liabilities in the consolidated balance sheets, totaled $9.9 million at December 31, 2013 ($13.5 million at December 31, 2012). The
benefit associated with this early retiree medical plan totaled $0.6 million in 2013 (benefit of $1.9 million in 2012 and expense of
$3.5 million in 2011). We also recorded a non-cash gain of $29.0 million in cost of products sold in 2011 as a result of a correction
of an error in the actuarial calculation for the plan. The error also resulted in a $7.6 million reduction of other comprehensive income.
This error did not have a material impact on that period or any previously reported periods.
The discount rate used was 4.6% in 2013 (3.7% in 2012 and 4.5% in 2011). The health care cost increase trend rate used was 6.6% in
2013 (6.6% in 2012 and 6.7% in 2011). The health care cost increase in the trend rate is projected to decline gradually to 4.5% by 2027.
19. INTEREST EXPENSE (INCOME)
The components of net interest expense are as follows:
(in thousands)
Year Ended December 31, 2013 2012 2 011
Interest expense $151,986 $173,503 $178,812
Interest income (5,091) (11,128) (12,718)
Interest expense, net $146,895 $162,375 $166,094
Interest paid was $141.2 million in 2013 ($178.0 million in 2012 and $177.6 million in 2011).
20. INCOME TAXES
Components of earnings from continuing operations before income taxes and noncontrolling interests are as follows:
(in thousands)
Year Ended December 31, 2013 2012 2 011
United States $755,921 $854,705 $1,241,465
Foreign 35,202 (1,765) 10,347
$791,123 $852,940 $1,251,812