Nucor 2015 Annual Report Download - page 72

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The 2015 provision included a $9.7 million out-of-period non-cash gain related to a correction to tax balances. The 2014 and 2013
provisions included out-of-period non-cash gains related to corrections to tax balances of $13.2 million and $21.3 million, respectively.
These out-of-period adjustments were not material to the period of correction or any previously reported periods.
Deferred tax assets and liabilities resulted from the following:
(in thousands)
December 31, 2015 2014
Deferred tax assets:
Accrued liabilities and reserves $ 209,854 $ 154,381
Allowance for doubtful accounts 12,912 24,741
Inventory 208,799 189,120
Post-retirement benefits 9,773 898
Commodity hedges 7,149 4,773
Net operating loss carryforward 14,690 9,880
Tax credit carryforwards 19,601 29,142
Total deferred tax assets 482,778 412,935
Deferred tax liabilities:
Holdbacks and amounts not due
under contracts (10,479) (14,945)
Cumulative translation adjustments (3,325) (1,819)
Intangibles (244,496) (236,618)
Property, plant and equipment (673,676) (698,567)
Total deferred tax liabilities (931,976) (951,949)
Total net deferred tax liabilities $(449,198) $(539,014)
In November 2015, new accounting guidance was issued that requires deferred tax liabilities and assets to be classified as noncurrent
in a classified statement of financial position. The standard is effective for annual and interim periods beginning after December 15,
2016, with early adoption permitted. We have early adopted this new guidance prospectively beginning with the consolidated balance
sheet at December 31, 2015. Prior periods were not retrospectively adjusted.
As a result of the prospective adoption of the new accounting guidance, there were no current deferred tax assets at December 31,
2015. Current deferred tax assets included in other current assets were $253.4 million at December 31, 2014. Also as a result of
the prospective adoption of the new accounting guidance, there were no current deferred tax liabilities at December 31, 2015.
Current deferred tax liabilities included in other current liabilities were $13.1 million at December 31, 2014. Non-current deferred tax
liabilities included in deferred credits and other liabilities were $449.2 million at December 31, 2015 ($779.3 million at December 31,
2014). Nucor paid $260.3 million in net federal, state and foreign income taxes in 2015 ($398.7 million and $64.8 million in 2014
and 2013, respectively).
Cumulative undistributed foreign earnings for which U.S. taxes have not been provided are included in consolidated retained earnings
in the amount of $169.6 million at December 31, 2015 ($194.0 million at December 31, 2014). These earnings are considered to
be indefinitely reinvested and, accordingly, no provisions for U.S. federal and state income taxes are required. It is not practicable to
determine the amount of unrecognized deferred tax liability related to the unremitted earnings.
State net operating loss carryforwards were $487.9 million at December 31, 2015 ($462.8 million at December 31, 2014). If unused,
they will expire between 2016 and 2035. Foreign net operating loss carryforwards were $22.3 million at December 31, 2015
($44.9 million at December 31, 2014). If unused, they will expire between 2027 and 2035.