Employee Benefit Plans

12 Months Ended

Dec. 31, 2021

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

17. Employee Benefit Plans

Nucor makes contributions to a Profit Sharing and Retirement Savings Plan for qualified employees based on the profitability of the Company. Nucor’s expense for these benefits totaled $869.9 million in 2021 ($86.6 million in 2020 and $181.4 million in 2019). The related liability for these benefits is included in salaries, wages and related accruals in the consolidated balance sheets.

Nucor also has a medical plan covering certain eligible early retirees. The unfunded obligation, included in deferred credits and other liabilities in the consolidated balance sheets, totaled $29.3 million at December 31, 2021 ($28.2 million at December 31, 2020). The expense associated with this early retiree medical plan totaled $1.8 million in 2021 ($2.5 million in 2020 and $2.0 million in 2019). The discount rate used by Nucor in determining its benefit obligation was 2.81% in 2021 (2.40% in 2020 and 3.23% in 2019). The health care cost increase trend rate used was 5.3% in 2021 (5.7% in 2020 and 6.0% in 2019). The health care cost increase trend rate is projected to decline gradually to 4.0% by 2047.