Nucor 2015 Annual Report Download - page 70

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68
A summary of Nucor’s restricted stock activity under the AIP and the LTIP is as follows:
(shares in thousands)
Year Ended December 31, 2015 2014 2013
Shares
Grant Date
Fair Value Shares
Grant Date
Fair Value Shares
Grant Date
Fair Value
Restricted stock awards and units:
Unvested at beginning of year 65 $48.20 73 $45.49 72 $43.72
Granted 136 $47.07 127 $50.35 122 $47.36
Vested (138) $47.15 (135) $48.76 (121) $46.32
Canceled — — — — — —
Unvested at end of year 63 $48.07 65 $48.20 73 $45.49
Shares reserved for future grants 975 1,111 1,238
Compensation expense for common stock and common stock units awarded under the AIP and the 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 $3.4 million in 2015 ($6.1 million in 2014 and $6.3 million in 2013).
The total fair value of shares vested during 2015 was $6.5 million ($6.8 million in 2014 and $5.7 million in 2013). As of
December 31, 2015, unrecognized compensation expense related to unvested restricted stock awards was $0.8 million,
which is expected to be recognized over a weighted-average period of 1.6 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 $60.5 million in 2015 ($110.1 million in 2014 and $71.7 million in 2013). 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 $15.6 million at December 31, 2015 ($14.1 million at December 31, 2014). The
expense associated with this early retiree medical plan totaled $1.1 million in 2015 (benefits of $0.6 million in 2014 and 2013.)
The discount rate used was 4.4% in 2015 (3.8% in 2014 and 4.6% in 2013). The health care cost increase trend rate used was 7.1% in
2015 (6.5% in 2014 and 6.6% in 2013). The health care cost increase in the trend rate is projected to decline gradually to 4.5% by 2037.
19. INTEREST EXPENSE (INCOME)
The components of net interest expense are as follows:
(in thousands)
Year Ended December 31, 2015 2014 2013
Interest expense $ 177,5 4 3 $ 174,142 $ 151,986
Interest income (4,012) (4,886) (5,091)
Interest expense, net $ 173,531 $ 169,256 $ 146,895
Interest paid was $180.0 million in 2015 ($180.5 million in 2014 and $141.2 million in 2013).