Nucor 2015 Annual Report Download - page 73

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71
At December 31, 2015, Nucor had approximately $50.5 million of unrecognized tax benefits, of which $49.8 million would affect
Nucor’s effective tax rate, if recognized. At December 31, 2014, Nucor had approximately $63.0 million of unrecognized tax benefits,
of which $62.9 million would affect Nucor’s effective tax rate, if recognized.
A reconciliation of the beginning and ending amounts of unrecognized tax benefits recorded in deferred credits and other liabilities
is as follows:
(in thousands)
Year Ended December 31, 2015 2014 2013
Balance at beginning of year $ 63,001 $ 65,975 $ 80,862
Additions based on tax positions related to current year 6,508 6,295 4,849
Reductions based on tax positions related to current year — — (55)
Additions based on tax positions related to prior years 241 5,673 2,307
Reductions based on tax positions related to prior years (13,294) (7,449) (6,248)
Additions due to settlements with taxing authorities 930 — —
Reductions due to statute of limitations lapse (6,876) (7,493) (15,740)
Balance at end of year $ 50,510 $ 63,001 $ 65,975
We estimate that in the next twelve months, our gross uncertain tax positions, exclusive of interest, could decrease by as much as
$10.6 million, as a result of the expiration of the statute of limitations.
During 2015, Nucor recognized $7.0 million of benefit in interest and penalties ($9.0 million of benefit in 2014 and $0.9 million of
expense in 2013). The interest and penalties are included in interest expense and other expenses, respectively, in the consolidated
statements of earnings. As of December 31, 2015, Nucor has approximately $21.2 million of accrued interest and penalties related
to uncertain tax positions on the consolidated balance sheet (approximately $28.2 million at December 31, 2014).
Nucor has substantially concluded U.S. federal income tax matters for years through 2012. The 2013 and 2014 tax years remain
open to examination by the Internal Revenue Service. The Canada Revenue Agency is examining the 2012 Canadian returns for
Harris Steel Group Inc. and certain related affiliates. The tax years 2009 through 2014 remain open to examination by other major
taxing jurisdictions to which Nucor is subject (primarily Canada and other state and local jurisdictions).