Derivatives

9 Months Ended

Oct. 01, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

8. DERIVATIVES: Nucor periodically uses derivative financial instruments primarily to partially manage its exposure to price risk related to natural gas purchases used in the production process as well as to scrap, copper and aluminum purchased for resale to its customers. In addition, Nucor periodically uses derivatives to partially manage its exposure to changes in interest rates on outstanding debt instruments and uses forward foreign exchange contracts to hedge cash flows associated with certain assets and liabilities, firm commitments and anticipated transactions.

Nucor recognizes all derivative instruments in the condensed consolidated balance sheets at fair value. Any resulting changes in fair value are recorded as adjustments to other comprehensive income (loss), net of tax, or recognized in net earnings, as appropriate.

At October 1, 2016, natural gas swaps covering approximately 6.8 million MMBTUs (extending through June 2017) were outstanding.

The following tables summarize information regarding Nucor’s derivative instruments (in thousands):

Fair Value of Derivative Instruments

		Fair Value at
	Balance Sheet Location	Oct. 1, 2016			Dec. 31, 2015
Asset derivatives not designated as hedging instruments:
Foreign exchange contracts	Other current assets	$	204		$	909
Liability derivatives designated as hedging instruments:
Commodity contracts	Accrued expenses and other current liabilities	$	(3,900	)	$	(15,700	)
Commodity contracts	Deferred credits and other liabilities		—			(2,800	)
Total liability derivatives designated as hedging instruments			(3,900	)		(18,500	)
Liability derivatives not designated as hedging instruments:
Commodity contracts	Accrued expenses and other current liabilities		(546	)		(353	)
Total liability derivatives		$	(4,446	)	$	(18,853	)

The Effect of Derivative Instruments on the Condensed Consolidated Statements of Earnings

Derivatives Designated as Hedging Instruments

Derivatives in Cash Flow Hedging Relationships	Statement of Earnings Location	Amount of Gain or (Loss), net of tax, Recognized in OCI on Derivatives (Effective Portion)						Amount of Gain or (Loss), net of tax, Reclassified from Accumulated OCI  into Earnings on Derivatives (Effective Portion)						Amount of Gain or (Loss), net of tax, Recognized in Earnings on Derivatives (Ineffective Portion)
		Three Months (13 Weeks) Ended						Three Months (13 Weeks) Ended						Three Months (13 Weeks) Ended
		Oct. 1, 2016			Oct. 3, 2015			Oct. 1, 2016			Oct. 3, 2015			Oct. 1, 2016		Oct. 3, 2015
Commodity contracts	Cost of products sold	$	(600	)	$	(3,985	)	$	(2,000	)	$	(1,685	)	$	—	$	—
Derivatives in Cash Flow Hedging Relationships	Statement of Earnings Location	Amount of Gain or (Loss), net of tax, Recognized in OCI on Derivatives (Effective Portion)						Amount of Gain or (Loss), net of tax, Reclassified from Accumulated OCI into Earnings  on Derivatives (Effective Portion)						Amount of Gain or (Loss), net of tax, Recognized in Earnings on Derivatives (Ineffective Portion)
		Nine Months (39 Weeks) Ended						Nine Months (39 Weeks) Ended						Nine Months (39 Weeks) Ended
		Oct. 1, 2016			Oct. 3, 2015			Oct. 1, 2016			Oct. 3, 2015			Oct. 1, 2016		Oct. 3, 2015
Commodity contracts	Cost of products sold	$	912		$	(6,717	)	$	(8,288	)	$	(3,017	)	$	—	$	—

Derivatives Not Designated as Hedging Instruments

Derivatives Not Designated as Hedging Instruments	Statement of Earnings Location	Amount of Gain or (Loss) Recognized in Earnings on Derivatives
		Three Months (13 Weeks) Ended					Nine Months (39 Weeks) Ended
		Oct. 1, 2016			Oct. 3, 2015		Oct. 1, 2016			Oct. 3, 2015
Commodity contracts	Cost of products sold	$	155		$	658	$	(719	)	$	2,314
Foreign exchange contracts	Cost of products sold		(47	)		602		(878	)		1,364
Total		$	108		$	1,260	$	(1,597	)	$	3,678