Debt and Other Financing Arrangements

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt and Other Financing Arrangements

11. Debt and Other Financing Arrangements

	(in thousands)
December 31,	2021		2020
Industrial revenue bonds due from 2022 to 2061*	$	1,350,230	$	1,153,240
Notes, 4.125%, due 2022		600,000		600,000
Notes, 4.000%, due 2023		500,000		500,000
Notes, 2.000%, due 2025		500,000		500,000
Notes, 3.950%, due 2028		500,000		500,000
Notes, 2.700%, due 2030		500,000		500,000
Notes, 6.400%, due 2037		543,331		543,331
Notes, 5.200%, due 2043		338,133		338,133
Notes, 4.400%, due 2048		329,219		329,219
Notes, 2.979%, due 2055		439,312		439,312
Finance lease obligations		179,053		90,338
Total long-term debt and finance lease obligations		5,779,278		5,493,573
Less premium on debt exchange		174,891		180,045
Less debt issuance costs		27,299		30,854
Total amounts outstanding		5,577,088		5,282,674
Less current maturities of long-term debt		601,000		—
Less current portion of finance lease obligations		14,678		10,885
Total long-term debt and finance lease obligations due after    one year	$	4,961,410	$	5,271,789

* The industrial revenue bonds had variable rates ranging from 0.14% to 0.18% at December 31, 2021 and 0.16% to 0.19% at December 31, 2020.

Annual aggregate long-term debt maturities are: $601.0 million in 2022, $500.0 million in 2023, none in 2024, $500.0 million in 2025, $21.5 million in 2026 and $3.98 billion thereafter.

In May 2020, Nucor issued $500.0 million of 2.000% Notes due 2025 and $500.0 million of 2.700% Notes due 2030. Net proceeds of the issuances were $989.4 million. Costs of $8.4 million associated with the issuances have been capitalized and will be amortized over the life of the notes.

In July 2020, Nucor became an obligor with respect to $162.6 million in 40-year variable-rate Green Bonds to partially fund the capital costs, in particular the expenditures associated with pollution prevention and control (including waste recycling and waste reduction), of the construction of Nucor’s plate mill located in Brandenburg, Kentucky. In August 2021, Nucor became an obligor with respect to an additional $197.0 million in 40-year variable-rate Green Bonds. The net proceeds from the debt issuances are being held in a trust account pending disbursement for the construction of the facility and have been accounted for as restricted cash. Funds are disbursed from the trust account as qualified expenditures for the construction of the Brandenburg facility are made.

In December 2020, Nucor exchanged $439.3 million of its 2.979% Notes due 2055 (the “2055 Notes”) and a cash component of $180.3 million for $106.7 million of its 6.400% Notes due 2037, $161.9 million of its 5.200% Notes due 2043 and $170.8 million of its 4.400% Notes due 2048 with holders of such existing notes. The December 2020 exchange offer and the 2055 notes offered thereby were not registered under the Securities Act of 1933, as amended (the “Securities Act”). This exchange transaction was accounted for as a modification and, as such, the cash component of $180.3 million was capitalized as a reduction of long-term debt and is being amortized into interest expense over the life of the new notes. In November 2021, Nucor completed an offer to exchange the 2055 Notes that were not registered under the Securities Act for a like principal amount of notes having terms substantially identical as the 2055 Notes and that are registered under the Securities Act.

On November 5, 2021, Nucor amended and restated its revolving credit facility to increase the borrowing capacity from $1.50 billion to $1.75 billion and to extend its maturity date to November 5, 2026. This facility remains undrawn. Costs associated with the amendment were immaterial. The unsecured revolving credit facility provides up to $1.75 billion in revolving loans and allows up to $500.0 million in additional commitments at Nucor’s election in accordance with the terms set forth in the credit agreement. Up to $100.0 million of the credit facility is available for the issuance of letters of credit and up to $500.0 million is available for the issuance of revolving loans for Nucor subsidiaries in accordance with the terms set forth in the credit agreement. The credit facility provides for a pricing grid based upon the credit rating of Nucor’s senior unsecured long-term debt and, alternatively, interest rates quoted by lenders in connection with competitive bidding. The credit facility includes customary financial and other covenants, including a limit on the ratio of funded debt to total capital of 60%, a limit on Nucor’s ability to pledge the Company’s assets and a limit on consolidations, mergers and sales of assets. As of December 31, 2021, Nucor’s funded debt to total capital ratio was 28%, and Nucor was in compliance with all covenants under the credit facility. No borrowings were outstanding under the credit facility as of December 31, 2021 and 2020.

Harris Steel has credit facilities totaling approximately $18.4 million, with no outstanding borrowings at December 31, 2021 and 2020. In addition, the business of Nucor Trading S.A. is financed by uncommitted trade credit arrangements with a number of European banking institutions. As of December 31, 2021, Nucor Trading S.A. had outstanding borrowings of $107.7 million, which are presented in short-term debt in the consolidated balance sheet ($57.9 million as of December 31, 2020).

Letters of credit totaling $98.7 million were outstanding as of December 31, 2021 ($63.3 million as of December 31, 2020), related to certain obligations, including workers’ compensation, utilities deposits and credit arrangements by Nucor Trading S.A. for commitments to purchase inventories.