Nucor 2013 Annual Report Download - page 69

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68
A reconciliation of the beginning and ending amounts of unrecognized tax benefits recorded in deferred credits and other liabilities
is as follows:
(in thousands)
Year Ended December 31, 2013 2012 2011
Balance at beginning of year $80,862 $80,897 $92,752
Additions based on tax positions related to current year 4,849 9,456 6,733
Reductions based on tax positions related to current year (55) (132) (3,160)
Additions based on tax positions related to prior years 2,307 5,821 937
Reductions based on tax positions related to prior years (6,248) (3,296) (2,169)
Reductions due to settlements with taxing authorities — (764) (958)
Reductions due to statute of limitations lapse (15,740) (11,120) (13,238)
Balance at end of year $65,975 $80,862 $80,897
We estimate that in the next twelve months, our gross uncertain tax positions, exclusive of interest, could decrease by as much
as $13.7 million, as a result of the expiration of the statute of limitations.
During 2013, Nucor recognized $0.9 million of expense in interest and penalties ($2.1 million of expense in 2012 and $3.6 million
of expense in 2011). The interest and penalty expense is included in interest expense in the consolidated statements of earnings.
As of December 31, 2013, Nucor had approximately $37.2 million of accrued interest and penalties related to uncertain tax positions
($36.4 million at December 31, 2012).
Nucor has concluded U.S. federal income tax matters for years through 2009. The 2010 to 2013 tax years are open to examination
by the Internal Revenue Service. In 2011, the Canada Revenue Agency completed an audit examination for the periods 2006 to
2008 for Harris Steel Group Inc. and subsidiaries with immaterial adjustments to the income tax returns. The tax years 2009 through
2013 remain open to examination by other major taxing jurisdictions to which Nucor is subject (primarily Canada and other state
and local jurisdictions).