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63
14. DERIVATIVE FINANCIAL INSTRUMENTS
The following tables summarize information regarding Nucor’s derivative instruments:
Fair Value of Derivative Instruments
(in thousands)
Fair Value
December 31, Consolidated Balance Sheet Location 2015 2014
Asset derivatives not designated
as hedging instruments:
Commodity contracts Other current assets $ — $ 1,856
Foreign exchange contracts Other current assets 909 372
Total asset derivatives $ 909 $ 2,228
Liability derivatives designated
as hedging instruments:
Commodity contracts Accrued expenses and other current liabilities $ (15,700) $ (6,400)
Commodity contracts Deferred credits and other liabilities (2,800) (6,300)
Total liability derivatives
designated as hedging instruments (18,500) (12,700)
Liability derivatives not designated
as hedging instruments:
Commodity contracts Accrued expenses and other current liabilities (353) —
Total liability derivatives not
designated as hedging instruments (353) —
Total liability derivatives $ (18,853) $(12,700)
The Effect of Derivative Instruments on the Consolidated Statements of Earnings
Derivatives Designated as Hedging Instruments (in thousands)
Derivatives
in Cash
Flow Hedging
Relationships
Statement of
Earnings
Location
Amount of Gain or (Loss),
net of tax, Recognized
in OCI on Derivatives
(Effective Portion)
Amount of Gain or (Loss),
net of tax, Reclassified from
Accumulated OCI into Earnings
on Derivatives (Effective Portion)
Amount of Gain or (Loss),
net of tax, Recognized
in Earnings on Derivatives
(Ineffective Portion)
2015 2014 2013 2015 2014 2013 2015 2014 2013
Commodity
contracts
Cost of
products
sold $(9,498) $(8,542) $ — $(5,798) $(542) $ — $ — $ — $ —
Derivatives Not Designated as Hedging Instruments
(in thousands)
Derivatives Not Designated
as Hedging Instruments
Statement of Earnings
Location
Amount of Gain or (Loss) Recognized
in Earnings on Derivatives
2015 2014 2013
Commodity contracts Cost of products sold $2,894 $1,890 $4,622
Foreign exchange contracts Cost of products sold 2,392 748 112
Total $5,286 $2,638 $4,734
At December 31, 2015, natural gas swaps covering approximately 13.8 million MMBTUs (extending through June 2017)
were outstanding.