10.

CONTINGENCIES: Nucor is subject to environmental laws and regulations established by federal, state and local authorities and, accordingly, makes provision for the estimated costs of compliance. Of the undiscounted total of $21.2 million of accrued environmental costs at October 1, 2016 ($21.1 million at December 31, 2015), $9.8 million was classified in accrued expenses and other current liabilities ($9.7 million at December 31, 2015) and $11.4 million was classified in deferred credits and other liabilities at October 1, 2016 and December 31, 2015. Inherent uncertainties exist in these estimates primarily due to unknown conditions, evolving remediation technology and changing governmental regulations and legal standards.

Since 2008, Nucor has been a defendant, along with other major steel producers, in several related antitrust class-action proceedings filed by Standard Iron Works and other steel purchasers in the United States District Court for the Northern District of Illinois. The majority of these complaints were filed in September and October of 2008, with two additional complaints being filed in July and December of 2010. Two of these complaints were voluntarily dismissed and are no longer pending. The plaintiffs allege that from April 1, 2005 through December 31, 2007, eight steel manufacturers, including Nucor, engaged in anticompetitive activities with respect to the production and sale of steel. Nucor denies those allegations. The plaintiffs seek monetary and other relief on behalf of themselves and classes of direct and indirect purchasers of steel products from the defendants in the U.S. between April 1, 2005 and December 31, 2007.

On September 30, 2016, Nucor entered into an agreement to settle the claims of the class of direct purchasers of steel products for the amount of $23.4 million. The accrual associated with the settlement was included in accrued expenses and other current liabilities in the condensed consolidated balance sheets at October 1, 2016 (none at December 31, 2015). Nucor continues to believe the plaintiffs’ claims are without merit and did not admit liability or the validity of the plaintiffs’ claims as part of the settlement, but we entered into the settlement in order to avoid the burden, expense and distraction of further litigation. The settlement is subject to court approval. On November 3, 2016, the court granted preliminary approval of the settlement agreement. A final approval hearing has been scheduled for February 16, 2017. Direct purchasers of steel products will be given notice of the settlement and will have the opportunity to opt out. The settlement does not resolve claims asserted by a separate putative class of indirect purchasers of steel products. We will continue to vigorously defend against the indirect purchasers’ claims and any other claims relating to these allegations. We cannot at this time predict the outcome of the remaining litigation or estimate the range of Nucor’s potential exposure (if any) and, consequently, have not recorded any additional reserves or contingencies related to the class of indirect purchasers.

We are from time to time a party to various other lawsuits, claims and legal proceedings that arise in the ordinary course of business. With respect to all such lawsuits, claims and proceedings, we record reserves when it is probable a liability has been incurred and the amount of loss can be reasonably estimated. We do not believe that any of these proceedings, individually or in the aggregate, would be expected to have a material adverse effect on our results of operations, financial position or cash flows. Nucor maintains liability insurance for certain risks that is subject to certain self-insurance limits.