Nucor 2015 Annual Report Download - page 63

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All Equity Investments Nucor reviews its equity investments for impairment if and when circumstances indicate that a decline in value
below their carrying amounts may have occurred. In the fourth quarter of 2015, Nucor assessed its equity investment in Duferdofin
Nucor for impairment due to the protracted challenging steel market conditions caused by excess global overcapacity, which increased
in 2015, and the difficult economic environment in Europe. Our assessment was negatively impacted by unfavorable operating
performance and deterioration in financial projections due to the increased global oversupply in 2015. After completing its assessment,
Nucor determined that the carrying amount exceeded its estimated fair value. The impairment condition was considered to be
other than temporary and therefore the Company recorded a $153.0 million impairment charge against the Company’s investment
in Duferdofin Nucor in the fourth quarter of 2015. This charge is included in impairments and losses on assets in the consolidated
statements of earnings. The assumptions that most significantly affect the fair value determination include projected revenues, metal
margins and the discount rate. The Company-specific inputs for measuring fair value are considered “Level 3” or unobservable inputs
that are not corroborated by market data under applicable fair value authoritative guidance, as quoted market prices are not available.
Steel market conditions in Europe have continued to be challenging through the fourth quarter of 2015, and, therefore, 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. We will continue to monitor for potential triggering events that could affect the
carrying value of our investment in Duferdofin Nucor as a result of future market conditions and any changes in business strategy.
It is possible that the future performance of Duferdofin Nucor could affect the recorded value of the note receivable the Company
has with Duferdofin Nucor and any potential liability associated with the Company’s guarantees of the indebtedness of Duferdofin
Nucor as discussed above.
11. CURRENT LIABILITIES
Book overdrafts, included in accounts payable in the consolidated balance sheets, were $62.8 million at December 31, 2015
($107.9 million at December 31, 2014). Accrued vacation and holiday pay, included in salaries, wages and related accruals in
the consolidated balance sheets, was $80.4 million at December 31, 2015 ($75.3 million at December 31, 2014). Dividends
payable, included in accrued expenses and other current liabilities in the consolidated balance sheets, were $120.2 million at
December 31, 2015 ($119.7 million at December 31, 2014).
12. DEBT AND OTHER FINANCING ARRANGEMENTS
(in thousands)
December 31, 2015 2014
Industrial revenue bonds:
0.17% to 0.42%, variable,
due from 2015 to 2040 $1,010,600 $1,026,935
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 500,000 500,000
Notes, 6.40%, due 2037 650,000 650,000
Notes, 5.20%, due 2043 500,000 500,000
4,360,600 4,376,935
Less current maturities — (16,335)
Total long-term debt due after one year $4,360,600 $4,360,600
Annual aggregate long-term debt maturities are: none in 2016, $600.0 million in 2017, $500.0 million in 2018, none in 2019,
$20.0 million in 2020 and $3.241 billion thereafter.
In October 2014, Nucor issued approximately $300 million of commercial paper to partially fund the acquisition of Gallatin. All
commercial paper instruments matured within 90 days. The balance outstanding and presented in short-term debt in the consolidated
balance sheet at December 31, 2014, was $151.4 million. As of December 31, 2015, no commercial paper was outstanding.