Nucor 2015 Annual Report Download - page 66

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64
15. FAIR VALUE MEASUREMENTS
The following table summarizes information regarding Nucor’s financial assets and liabilities that are measured at fair value as of December 31,
2015 and 2014. Nucor does not have any non-financial assets or liabilities that are measured at fair value on a recurring basis.
(in thousands)
Fair Value Measurements at Reporting Date Using
December 31,
Carrying
Amount in
Consolidated
Balance Sheets
Quoted Prices
in Active Markets
for Identical Assets
(Level 1)
Significant
Other Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
2015
Assets:
Cash equivalents $ 1,668,567 $ 1,668,567 $ —
Short-term investments 100,000 100,000 —
Foreign exchange contracts 909 — 909 —
Total assets $ 1,769,476 $ 1,768,567 $ 909 —
Liabilities:
Commodity contracts $ (18,853) — $ (18,853) —
2014
Assets:
Cash equivalents $ 861,656 $ 861,656 $ —
Short-term investments 100,000 100,000 —
Foreign exchange and
commodity contracts 2,228 — 2,228 —
Total assets $ 963,884 $ 961,656 $ 2,228 —
Liabilities:
Commodity contracts $ (12,700) — $ (12,700) —
Fair value measurements for Nucor’s cash equivalents and short-term investments are classified under Level 1 because such
measurements are based on quoted market prices in active markets for identical assets. Fair value measurements for Nucor’s
derivatives are classified under Level 2 because such measurements are based on published market prices for similar assets or are
estimated based on published market prices for similar assets or are estimated based on observable inputs such as interest rates,
yield curves, credit risks, spot and future commodity prices and spot and future exchange rates. There were no transfers between
levels in the fair value hierarchy for the periods presented.
The fair value of short-term and long-term debt, including current maturities, was approximately $4.47 billion at December 31, 2015
($4.97 billion at December 31, 2014). The debt fair value estimates are classified under Level 2 because such estimates are based
on readily available market prices of our debt at December 31, 2015 and 2014, or similar debt with the same maturities, ratings and
interest rates.
Disclosures are required for certain assets and liabilities that are measured at fair value, but are recognized and disclosed on a
nonrecurring basis in periods subsequent to initial recognition. For Nucor, our equity investment in Duferdofin Nucor was measured
at fair value as a result of the impairment recorded in 2015 (see Note 10).
16. CONTINGENCIES
Nucor is subject to environmental laws and regulations established by federal, state and local authorities and, accordingly, makes
provision for the estimated costs of compliance. Of the undiscounted total of $21.1 million of accrued environmental costs at
December 31, 2015 ($27.2 million at December 31, 2014), $9.7 million was classified in accrued expenses and other current
liabilities ($11.3 million at December 31, 2014) and $11.4 million was classified in deferred credits and other liabilities ($15.9 million
at December 31, 2014). Inherent uncertainties exist in these estimates primarily due to unknown conditions, evolving remediation
technology and changing governmental regulations and legal standards.