Restricted Cash And Investments

9 Months Ended

Oct. 01, 2011

Restricted Cash And Investments

Restricted Cash And Investments

4. RESTRICTED CASH AND INVESTMENTS: As of October 1, 2011, restricted cash and investments primarily consisted of net proceeds from $600.0 million 30-year variable rate Gulf Opportunity Zone bonds issued in November 2010. The restricted cash and investments are held in a trust account and are to be used to partially fund the capital costs associated with the construction of Nucor's direct reduced ironmaking facility in St. James Parish, Louisiana. Funds are disbursed as qualified expenditures for the construction of the facility are made ($21.9 million in the first nine months of 2011 and none in 2010). Restricted investments are held in similar short-term investment vehicles held by the Company as described in Note 4 to Nucor's annual report for the year ended December 31, 2010. Interest earned on these investments is subject to the same usage requirements as the bond proceeds. Since the restricted cash, investments, and interest on investments must be used for the construction of the facility, which is expected to occur through mid-2013, the entire balance has been classified as a non-current asset.