UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number:
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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(Address of principal executive offices) |
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(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Accelerated filer |
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
Nucor Corporation
Quarterly Report on Form 10-Q
For the Three Months Ended April 2, 2022
Table of Contents
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Condensed Consolidated Balance Sheets – April 2, 2022 and December 31, 2021 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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i
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Nucor Corporation Condensed Consolidated Statements of Earnings (Unaudited)
(In thousands, except per share amounts)
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Three Months (13 Weeks) Ended |
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April 2, 2022 |
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April 3, 2021 |
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Net sales |
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$ |
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$ |
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Costs, expenses and other: |
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Cost of products sold |
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Marketing, administrative and other expenses |
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Equity in earnings of unconsolidated affiliates |
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( |
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( |
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Losses on assets |
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- |
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Interest expense, net |
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Earnings before income taxes and noncontrolling interests |
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Provision for income taxes |
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Net earnings |
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Earnings attributable to noncontrolling interests |
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Net earnings attributable to Nucor stockholders |
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$ |
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$ |
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Net earnings per share: |
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Basic |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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Average shares outstanding: |
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Basic |
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Diluted |
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See notes to condensed consolidated financial statements.
1
Nucor Corporation Condensed Consolidated Statements of Comprehensive Income (Unaudited)
(In thousands)
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Three Months (13 Weeks) Ended |
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April 2, 2022 |
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April 3, 2021 |
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Net earnings |
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$ |
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$ |
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Other comprehensive income: |
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Net unrealized income on hedging derivatives, net of income taxes of $ quarter of 2022 and 2021, respectively |
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Reclassification adjustment for settlement of hedging derivatives included in net earnings, net of income taxes of $( and 2021, respectively |
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( |
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Foreign currency translation gain, net of income taxes of $ |
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Comprehensive income |
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Comprehensive income attributable to noncontrolling interests |
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Comprehensive income attributable to Nucor stockholders |
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$ |
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$ |
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See notes to condensed consolidated financial statements.
2
Nucor Corporation Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
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April 2, 2022 |
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Dec 31, 2021 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
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$ |
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Short-term investments |
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Accounts receivable, net |
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Inventories, net |
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Other current assets |
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Total current assets |
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Property, plant and equipment, net |
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Restricted cash and cash equivalents |
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Goodwill |
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Other intangible assets, net |
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Other assets |
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Total assets |
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$ |
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$ |
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LIABILITIES |
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Current liabilities: |
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Short-term debt |
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$ |
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$ |
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Current portion of long-term debt and finance lease obligations |
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Accounts payable |
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Salaries, wages and related accruals |
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Accrued expenses and other current liabilities |
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Federal income taxes payable |
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Total current liabilities |
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Long-term debt and finance lease obligations due after one year |
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Deferred credits and other liabilities |
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Total liabilities |
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Commitments and contingencies |
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EQUITY |
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Nucor stockholders' equity: |
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Common stock |
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Additional paid-in capital |
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Retained earnings |
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Accumulated other comprehensive loss, net of income taxes |
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( |
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Treasury stock |
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( |
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( |
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Total Nucor stockholders' equity |
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Noncontrolling interests |
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Total equity |
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Total liabilities and equity |
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$ |
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$ |
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See notes to condensed consolidated financial statements.
3
Nucor Corporation Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
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Three Months (13 Weeks) Ended |
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April 2, 2022 |
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April 3, 2021 |
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Operating activities: |
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Net earnings |
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$ |
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$ |
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Adjustments: |
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Depreciation |
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Amortization |
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Stock-based compensation |
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Deferred income taxes |
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( |
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Distributions from affiliates |
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Equity in earnings of unconsolidated affiliates |
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( |
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( |
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Losses on assets |
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- |
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Changes in assets and liabilities (exclusive of acquisitions and dispositions): |
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Accounts receivable |
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( |
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( |
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Inventories |
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( |
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Accounts payable |
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( |
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Federal income taxes |
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Salaries, wages and related accruals |
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( |
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Other operating activities |
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Cash provided by operating activities |
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Investing activities: |
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Capital expenditures |
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( |
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( |
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Investment in and advances to affiliates |
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( |
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( |
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Disposition of plant and equipment |
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Acquisitions (net of cash acquired) |
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( |
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Purchases of investments |
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( |
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( |
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Proceeds from the sale of investments |
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Other investing activities |
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( |
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Cash used in investing activities |
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( |
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( |
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Financing activities: |
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Net change in short-term debt |
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( |
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( |
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Proceeds from issuance of long-term debt, net of discount |
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- |
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Repayment of long-term debt |
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( |
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- |
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Bond issuance costs |
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( |
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- |
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Proceeds from exercise of stock options |
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Payment of tax withholdings on certain stock-based compensation |
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( |
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( |
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Distributions to noncontrolling interests |
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( |
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( |
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Cash dividends |
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( |
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( |
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Acquisition of treasury stock |
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( |
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( |
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Other financing activities |
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( |
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( |
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Cash used in financing activities |
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( |
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( |
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Effect of exchange rate changes on cash |
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Increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents |
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( |
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Cash and cash equivalents and restricted cash and cash equivalents - beginning of year |
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Cash and cash equivalents and restricted cash and cash equivalents - end of three months |
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$ |
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$ |
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Non-cash investing activity: |
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Change in accrued plant and equipment purchases |
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$ |
( |
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$ |
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See notes to condensed consolidated financial statements.
4
Nucor Corporation – Notes to Condensed Consolidated Financial Statements (Unaudited)
1. Basis of Interim Presentation
The information furnished in this Item 1 reflects all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented and are of a normal and recurring nature unless otherwise noted. The information furnished has not been audited; however, the December 31, 2021 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited condensed consolidated financial statements included in this Item 1 should be read in conjunction with the audited consolidated financial statements and the notes thereto included in Nucor’s Annual Report on Form 10-K for the year ended December 31, 2021.
2. Inventories
Inventories consisted of approximately
3. Property, Plant and Equipment
Property, plant and equipment is recorded net of accumulated depreciation of $
4. Goodwill and Other Intangible Assets
The change in the net carrying amount of goodwill for the three months ended April 2, 2022 by segment was as follows (in thousands):
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Steel Mills |
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Steel Products |
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Raw Materials |
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Total |
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Balance at December 31, 2021 |
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$ |
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$ |
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$ |
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$ |
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Acquisitions |
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( |
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- |
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Translation |
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- |
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- |
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Balance at April 2, 2022 |
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$ |
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$ |
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$ |
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$ |
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Nucor completed its most recent annual goodwill impairment testing as of the first day of the fourth quarter of 2021 and concluded that as of such date there was
The annual assessment performed in 2021 for one of the Company’s reporting units, Rebar Fabrication, used forward-looking projections in future cash flows. The fair value of this reporting unit exceeded its carrying value by approximately
5
Intangible assets with estimated useful lives of
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April 2, 2022 |
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December 31, 2021 |
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Gross Amount |
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Accumulated Amortization |
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Gross Amount |
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Accumulated Amortization |
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Customer relationships |
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$ |
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$ |
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$ |
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$ |
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Trademarks and trade names |
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Other |
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$ |
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$ |
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$ |
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$ |
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Intangible asset amortization expense in the first quarter of 2022 and 2021 was $
5. Current Liabilities
Book overdrafts, included in accounts payable in the condensed consolidated balance sheets, were $
6. Fair Value Measurements
The following table summarizes information regarding Nucor’s financial assets and financial liabilities that were measured at fair value as of April 2, 2022 and December 31, 2021 (in thousands). Nucor does not have any non-financial assets or non-financial liabilities that are measured at fair value on a recurring basis.
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Fair Value Measurements at Reporting Date Using |
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Description |
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Carrying Amount in Condensed Consolidated Balance Sheets |
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Quoted Prices in Active Markets for Identical Assets (Level 1) |
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Significant Other Observable Inputs (Level 2) |
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Significant Unobservable Inputs (Level 3) |
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As of April 2, 2022 |
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Assets: |
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Cash equivalents |
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$ |
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$ |
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$ |
- |
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$ |
- |
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Short-term investments |
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- |
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- |
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Restricted cash and cash equivalents |
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- |
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- |
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Derivative contracts |
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- |
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- |
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Total assets |
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$ |
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$ |
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$ |
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$ |
- |
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Liabilities: |
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Derivative contracts |
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$ |
( |
) |
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$ |
- |
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$ |
( |
) |
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$ |
- |
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As of December 31, 2021 |
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Assets: |
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Cash equivalents |
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$ |
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$ |
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$ |
- |
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$ |
- |
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Short-term investments |
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- |
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- |
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Restricted cash and cash equivalents |
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- |
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- |
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Derivative contracts |
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- |
|
|
|
|
|
|
|
- |
|
|
Total assets |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
- |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative contracts |
|
$ |
( |
) |
|
$ |
- |
|
|
$ |
( |
) |
|
$ |
- |
|
6
Fair value measurements for Nucor’s cash equivalents, short-term investments and restricted cash and cash equivalents are classified under Level 1 because such measurements are based on quoted market prices in active markets for identical assets. Our short-term investments at April 2, 2022 consisted of certificates of deposit, commercial paper and corporate notes. Fair value measurements for Nucor’s derivatives, which are typically commodity or foreign exchange contracts, are classified under Level 2 because such measurements are based on published market prices for similar assets or are estimated based on observable inputs such as interest rates, yield curves, credit risks, spot and future commodity prices, and spot and future exchange rates. There were no transfers between the levels in the fair value hierarchy for the periods presented.
The fair value of short-term and long-term debt, including current maturities, was approximately $
7. Contingencies
We are from time to time a party to various lawsuits, claims and other 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 with self-insurance limits.
8. Stock-Based Compensation
Stock Options
A summary of activity under Nucor’s stock option plans for the first quarter of 2022 is as follows (shares in thousands):
|
|
|
|
|
|
|
Weighted- |
|
|
Weighted- |
|
|
|
|
|
|
|
|
|
|
|
|
Average |
|
|
Average |
|
Aggregate |
|
||
|
|
|
|
|
|
|
Exercise |
|
|
Remaining |
|
Intrinsic |
|
||
|
|
|
Shares |
|
|
Price |
|
|
Contractual Life |
|
Value |
|
|||
|
Number of shares under stock options: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at beginning of year |
|
|
|
|
|
$ |
|
|
|
|
|
|
|
|
|
Granted |
|
|
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
Exercised |
|
|
( |
) |
|
$ |
|
|
|
|
|
$ |
|
|
|
Canceled |
|
|
- |
|
|
$ |
- |
|
|
|
|
|
|
|
|
Outstanding at April 2, 2022 |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
|
Stock options exercisable at April 2, 2022 |
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
Compensation expense for stock options was $
Restricted Stock Units
A summary of Nucor’s restricted stock unit (“RSU”) activity for the first quarter of 2022 is as follows (shares in thousands):
|
|
|
Shares |
|
|
Grant Date Fair Value |
|
||
|
Restricted stock units: |
|
|
|
|
|
|
|
|
|
Unvested at beginning of year |
|
|
|
|
|
$ |
|
|
|
Granted |
|
|
- |
|
|
$ |
- |
|
|
Vested |
|
|
( |
) |
|
$ |
|
|
|
Canceled |
|
|
( |
) |
|
$ |
|
|
|
Unvested at April 2, 2022 |
|
|
|
|
|
$ |
|
|
7
Compensation expense for RSUs was $
Restricted Stock Awards
A summary of Nucor’s restricted stock activity under the Nucor Corporation Senior Officers Annual Incentive Plan (a supplement to the Nucor Corporation 2014 Omnibus Incentive Compensation Plan, the “AIP”) and the Nucor Corporation Senior Officers Long-Term Incentive Plan (a supplement to the Nucor Corporation 2014 Omnibus Incentive Compensation Plan, the “LTIP”) for the first quarter of 2022 is as follows (shares in thousands):
|
|
|
|
|
|
|
Grant Date |
|
|
|
|
|
Shares |
|
|
Fair Value |
|
||
|
Restricted stock units and restricted stock awards: |
|
|
|
|
|
|
|
|
|
Unvested at beginning of year |
|
|
|
|
|
$ |
|
|
|
Granted |
|
|
|
|
|
$ |
|
|
|
Vested |
|
|
( |
) |
|
$ |
|
|
|
Canceled |
|
|
- |
|
|
$ |
- |
|
|
Unvested at April 2, 2022 |
|
|
|
|
|
$ |
|
|
Compensation expense for common stock and common stock units awarded under the AIP and the LTIP is recorded over the performance measurement and vesting periods based on the anticipated number and market value of shares of common stock and common stock units to be awarded. Compensation expense for anticipated awards based upon Nucor’s financial performance, exclusive of amounts payable in cash, was $
9. Employee Benefit Plan
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 $
10. Interest Expense (Income)
The components of net interest expense for the first quarter of 2022 and 2021 are as follows (in thousands):
|
|
|
Three Months (13 Weeks) Ended |
|
|||||
|
|
|
April 2, 2022 |
|
|
April 3, 2021 |
|
||
|
Interest expense |
|
$ |
|
|
|
$ |
|
|
|
Interest income |
|
|
( |
) |
|
|
( |
) |
|
Interest expense, net |
|
$ |
|
|
|
$ |
|
|
11. Income Taxes
The effective tax rate for the first quarter of 2022 was
Nucor has concluded U.S. federal income tax matters for tax years through 2014 and for tax year 2016. The tax years 2015 and 2017 through 2020 remain open to examination by the Internal Revenue Service. The 2015 and 2018 Canadian income tax returns for Harris Steel Group Inc. and certain related affiliates are currently under examination by the Canada Revenue Agency. The tax years 2015 through 2020 remain open to examination by other major taxing jurisdictions to which Nucor is subject (primarily Canada and other state and local jurisdictions).
Non-current deferred tax liabilities included in deferred credits and other liabilities in the condensed consolidated balance sheets were $
8
12. Stockholders’ Equity
The following tables reflect the changes in stockholders’ equity attributable to Nucor and the noncontrolling interests of Nucor’s joint ventures, Nucor-Yamato Steel Company (Limited Partnership) (“NYS”) and California Steel Industries, Inc. (“CSI”), both of which Nucor owns
|
|
|
|
|
|
|
Three Months (13 Weeks) Ended April 2, 2022 |
|
|
|
|
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
|
Other |
|
|
Treasury Stock |
|
|
Nucor |
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
Common Stock |
|
|
Paid-in |
|
|
Retained |
|
|
Comprehensive |
|
|
(at cost) |
|
|
Stockholders' |
|
|
Noncontrolling |
|
|||||||||||||||
|
|
|
Total |
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Earnings |
|
|
Income (Loss) |
|
|
Shares |
|
|
Amount |
|
|
Equity |
|
|
Interests |
|
||||||||||
|
BALANCES, December 31, 2021 |
|
$ |
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
|
|
|
|
$ |
( |
) |
|
$ |
|
|
|
$ |
|
|
|
Net earnings |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
Stock options exercised |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
- |
|
|
Stock option expense |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
Issuance of stock under award plans, net of forfeitures |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
- |
|
|
Amortization of unearned compensation |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
Treasury stock acquired |
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
- |
|
|
Cash dividends declared |
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
Distributions to noncontrolling interests |
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
Acquisition of noncontrolling interest in CSI |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
BALANCES, April 2, 2022 |
|
$ |
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
|
|
|
|
$ |
( |
) |
|
$ |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
Three Months (13 Weeks) Ended April 3, 2021 |
|
|
|
|
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional |
|
|
|
|
|
|
Other |
|
|
Treasury Stock |
|
|
Nucor |
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
Common Stock |
|
|
Paid-in |
|
|
Retained |
|
|
Comprehensive |
|
|
(at cost) |
|
|
Stockholders' |
|
|
Noncontrolling |
|
|||||||||||||||
|
|
|
Total |
|
|
Shares |
|
|
Amount |
|
|
Capital |
|
|
Earnings |
|
|
Income (Loss) |
|
|
Shares |
|
|
Amount |
|
|
Equity |
|
|
Interests |
|
||||||||||
|
BALANCES, December 31, 2020 |
|
$ |
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
|
|
|
|
$ |
( |
) |
|
$ |
|
|
|
$ |
|
|
|
Net earnings |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
Stock options exercised |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
- |
|
|
Stock option expense |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
Issuance of stock under award plans, net of forfeitures |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
- |
|
|
Amortization of unearned compensation |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
Treasury stock acquired |
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
- |
|
|
Cash dividends declared |
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
|
- |
|
|
Distributions to noncontrolling interests |
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
BALANCES, April 3, 2021 |
|
$ |
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
( |
) |
|
|
|
|
|
$ |
( |
) |
|
$ |
|
|
|
$ |
|
|
Dividends declared per share were $
9
On December 2, 2021, the Company announced that the Board of Directors had approved a new share repurchase program under which the Company is authorized to repurchase up to $
10
13. Accumulated Other Comprehensive Income (Loss)
The following tables reflect the changes in accumulated other comprehensive income (loss) by component for the three months ended April 2, 2022 and April 3, 2021 (in thousands):
|
|
|
Three-Month (13-Week) Period Ended |
|
|||||||||||||
|
|
|
April 2, 2022 |
|
|||||||||||||
|
|
|
Gains and (Losses) on |
|
|
Foreign Currency |
|
|
Adjustment to Early |
|
|
|
|
|
|||
|
|
|
Hedging Derivatives |
|
|
Gains (Losses) |
|
|
Retiree Medical Plan |
|
|
Total |
|
||||
|
Accumulated other comprehensive income (loss) at December 31, 2021 |
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
|
$ |
( |
) |
|
Other comprehensive income (loss) before reclassifications |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Amounts reclassified from accumulated other comprehensive income (loss) into earnings (1) |
|
|
( |
) |
|
|
- |
|
|
|
- |
|
|
|
( |
) |
|
Net current-period other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Accumulated other comprehensive income (loss) at April 2, 2022 |
|
$ |
|
|
|
$ |
( |
) |
|
$ |
|
|
|
$ |
( |
) |
|
|
|
Three-Month (13-Week) Period Ended |
|
|||||||||||||
|
|
|
April 3, 2021 |
|
|||||||||||||
|
|
|
Gains and (Losses) on |
|
|
Foreign Currency |
|
|
Adjustment to Early |
|
|
|
|
|
|||
|
|
|
Hedging Derivatives |
|
|
Gains (Losses) |
|
|
Retiree Medical Plan |
|
|
Total |
|
||||
|
Accumulated other comprehensive income (loss) at December 31, 2020 |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
|
$ |
( |
) |
|
Other comprehensive income (loss) before reclassifications |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Amounts reclassified from accumulated other comprehensive income (loss) into earnings (1) |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
Net current-period other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Accumulated other comprehensive income (loss) at April 3, 2021 |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
|
$ |
( |
) |
(1)
14. Segments
Nucor reports its results in the following segments: steel mills, steel products and raw materials. The steel mills segment includes carbon and alloy steel in sheet, bars, structural and plate; steel trading businesses; rebar distribution businesses; and Nucor’s equity method investments in NuMit LLC (“NuMit”) and Nucor-JFE Steel Mexico, S. de R.L. de C.V. (“Nucor-JFE”). The steel products segment includes steel joists and joist girders, steel deck, fabricated concrete reinforcing steel, cold finished steel, precision castings, steel fasteners, metal building systems, insulated metal panels, steel grating, tubular products, steel racking, piling products, and wire and wire mesh. The raw materials segment includes The David J. Joseph Company and its affiliates (“DJJ”), primarily a scrap broker and processor; Nu-Iron Unlimited and Nucor Steel Louisiana LLC (“Nucor Steel Louisiana”), two facilities that produce direct reduced iron (“DRI”) used by the steel mills; and our natural gas production operations.
Corporate/eliminations include items such as net interest expense on long-term debt, charges and credits associated with changes in allowances to eliminate intercompany profit in inventory, profit sharing expense and stock-based compensation. Corporate assets primarily include cash and cash equivalents, short-term investments, restricted cash and
11
cash equivalents, allowances to eliminate intercompany profit in inventory, deferred income tax assets, federal and state income taxes receivable and investments in and advances to affiliates.
Nucor’s results by segment for the first quarter of 2022 and 2021 were as follows (in thousands):
|
|
|
Three Months (13 Weeks) Ended |
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|||||
|
|
|
April 2, 2022 |
|
|
April 3, 2021 |
|
||
|
Net sales to external customers: |
|
|
|
|
|
|
|
|
|
Steel mills |
|
$ |
|
|
|
$ |
|
|
|
Steel products |
|
|
|
|
|
|
|
|
|
Raw materials |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
Intercompany sales: |
|
|
|
|
|
|
|
|
|
Steel mills |
|
$ |
|
|
|
$ |
|
|
|
Steel products |
|
|
|
|
|
|
|
|
|
Raw materials |
|
|
|
|
|
|
|
|
|
Corporate/eliminations |
|
|
( |
) |
|
|
( |
) |
|
|
|
$ |
- |
|
|
$ |
- |
|
|
Earnings before income taxes and noncontrolling interests: |
|
|
|
|
|
|
|
|
|
Steel mills |
|
$ |
|
|
|
$ |
|
|
|
Steel products |
|
|
|
|
|
|
|
|
|
Raw materials |
|
|
|
|
|
|
|
|
|
Corporate/eliminations |
|
|
( |
) |
|
|
( |
) |
|
|
|
$ |
|
|
|
$ |
|
|
|
|
|
April 2, 2022 |
|
|
Dec. 31, 2021 |
|
||
|
Segment assets: |
|
|
|
|
|
|
|
|
|
Steel mills |
|
$ |
|
|
|
$ |
|
|
|
Steel products |
|
|
|
|
|
|
|
|
|
Raw materials |
|
|
|
|
|
|
|
|
|
Corporate/eliminations |
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
15. Revenue
The following tables disaggregate our revenue by major source for the first quarter of 2022 and 2021 (in thousands):
|
|
|
Three Months (13 Weeks) Ended April 2, 2022 |
|
|||||||||||||
|
|
|
Steel Mills |
|
|
Steel Products |
|
|
Raw Materials |
|
|
Total |
|
||||
|
Sheet |
|
$ |
|
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
|
|
|
Bar |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
Structural |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
Plate |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
Tubular Products |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Rebar Fabrication |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Joist |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Deck |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Other Steel Products |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Raw Materials |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
12
|
|
|
Three Months (13 Weeks) Ended April 3, 2021 |
|
|||||||||||||
|
|
|
Steel Mills |
|
|
Steel Products |
|
|
Raw Materials |
|
|
Total |
|
||||
|
Sheet |
|
$ |
|
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
|
|
|
Bar |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
Structural |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
Plate |
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
Tubular Products |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Rebar Fabrication |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Joist |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Deck |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Other Steel Products |
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
Raw Materials |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Contract liabilities are primarily related to deferred revenue resulting from cash payments received in advance from customers to protect against credit risk. Contract liabilities totaled $
16. Earnings Per Share
The computations of basic and diluted net earnings per share for the first quarter of 2022 and 2021 are as follows (in thousands, except per share amounts):
|
|
|
Three Months (13 Weeks) Ended |
|
|||||
|
|
|
April 2, 2022 |
|
|
April 3, 2021 |
|
||
|
Basic net earnings per share: |
|
|
|
|
|
|
|
|
|
Basic net earnings |
|
$ |
|
|
|
$ |
|
|
|
Earnings allocated to participating securities |
|
|
( |
) |
|
|
( |
) |
|
Net earnings available to common stockholders |
|
$ |
|
|
|
$ |
|
|
|
Basic average shares outstanding |
|
|
|
|
|
|
|
|
|
Basic net earnings per share |
|
$ |
|
|
|
$ |
|
|
|
Diluted net earnings per share: |
|
|
|
|
|
|
|
|
|
Diluted net earnings |
|
$ |
|
|
|
$ |
|
|
|
Earnings allocated to participating securities |
|
|
( |
) |
|
|
( |
) |
|
Net earnings available to common stockholders |
|
$ |
|
|
|
$ |
|
|
|
Diluted average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic average shares outstanding |
|
|
|
|
|
|
|
|
|
Dilutive effect of stock options and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net earnings per share |
|
$ |
|
|
|
$ |
|
|
The following stock options were excluded from the computation of diluted net earnings per share for the first quarter of 2022 and 2021 because their effect would have been anti-dilutive (shares in thousands):
|
|
|
Three Months (13 Weeks) Ended |
|
|||||
|
|
|
April 2, 2022 |
|
|
April 3, 2021 |
|
||
|
Anti-dilutive stock options: |
|
|
|
|
|
|
|
|
|
Weighted-average shares |
|
|
- |
|
|
|
|
|
|
Weighted-average exercise price |
|
$ |
- |
|
|
$ |
|
|
13
17. Debt and Other Financing Arrangements
On March 11, 2022, Nucor completed the issuance and sale of $
On April 25, 2022, Nucor redeemed all $
14
18. Acquisitions
On February 1, 2022, Nucor used cash on hand to acquire a
We allocated the purchase price for CSI to its individual assets acquired and liabilities assumed. While the purchase price allocation is substantially complete, it is still preliminary and subject to change, including for the final working capital settlement.
The following table summarizes the fair values of
|
Cash |
|
$ |
|
|
|
Accounts receivable |
|
|
|
|
|
Inventory |
|
|
|
|
|
Other current assets |
|
|
|
|
|
Property, plant and equipment |
|
|
|
|
|
Goodwill |
|
|
|
|
|
Other intangible assets |
|
— |
|
|
|
Other assets |
|
|
|
|
|
Total assets acquired |
|
|
|
|
|
Current portion of long-term debt |
|
|
|
|
|
Other current liabilities |
|
|
|
|
|
Long-term debt due after one year |
|
|
|
|
|
Other liabilities |
|
|
|
|
|
Total liabilities assumed |
|
|
|
|
|
Net assets acquired at 100% |
|
|
|
|
|
Less: Fair value of noncontrolling interest |
|
|
|
|
|
Net assets acquired at 51% |
|
$ |
|
|
The determination of the fair value of the noncontrolling interest was calculated using the implied value of
The goodwill of $
The results of operations for CSI upon the effective date of the acquisition have been included in the accompanying financial statements. Pro-forma results of operations for the Company would not be materially different as a result of the acquisition of CSI and, therefore, this information is not presented.
15
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Certain statements made in this report, or in other public filings, press releases, or other written or oral communications made by Nucor, which are not historical facts are forward-looking statements subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties which we expect will or may occur in the future and may impact our business, financial condition and results of operations. The words “anticipate,” “believe,” “expect,” “intend,” “project,” “may,” “will,” “should,” “could” and similar expressions are intended to identify those forward-looking statements. These forward-looking statements reflect the Company’s best judgment based on current information, and, although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this report. Factors that might cause the Company’s actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including pressure from imports and substitute materials; (2) U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to prevailing market steel prices and changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (4) the availability and cost of electricity and natural gas, which could negatively affect our cost of steel production or result in a delay or cancellation of existing or future drilling within our natural gas drilling programs; (5) critical equipment failures and business interruptions; (6) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity in the United States; (7) impairment in the recorded value of inventory, equity investments, fixed assets, goodwill or other long-lived assets; (8) uncertainties surrounding the global economy, including excess world capacity for steel production, inflation and interest rate changes; (9) fluctuations in currency conversion rates; (10) significant changes in laws or government regulations affecting environmental compliance, including legislation and regulations that result in greater regulation of greenhouse gas emissions that could increase our energy costs, capital expenditures and operating costs or cause one or more of our permits to be revoked or make it more difficult to obtain permit modifications; (11) the cyclical nature of the steel industry; (12) capital investments and their impact on our performance; (13) our safety performance; (14) the impact of the COVID-19 pandemic and any variants of the virus; and (15) the risks discussed in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and elsewhere in this report.
Caution should be taken not to place undue reliance on the forward-looking statements included in this report. We assume no obligation to update any forward-looking statements except as may be required by law. In evaluating forward-looking statements, these risks and uncertainties should be considered, together with the other risks described from time to time in our reports and other filings with the United States Securities and Exchange Commission.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this report, as well as the audited consolidated financial statements and the notes thereto, “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in Nucor’s Annual Report on Form 10-K for the year ended December 31, 2021.
Overview
Nucor and its affiliates manufacture steel and steel products. Nucor also produces DRI for use in its steel mills. Through DJJ, the Company also processes ferrous and nonferrous metals and brokers ferrous and nonferrous metals, pig iron, hot briquetted iron and DRI. Most of Nucor’s operating facilities and customers are located in North America. Nucor’s operations include international trading and sales companies that buy and sell steel and steel products manufactured by the Company and others. Nucor is North America’s largest recycler, using scrap steel as the primary raw material in producing steel and steel products.
Nucor reports its results in the following segments: steel mills, steel products and raw materials. The steel mills segment includes carbon and alloy steel in sheet, bars, structural and plate; steel trading businesses; rebar distribution businesses; and Nucor’s equity method investments in NuMit and Nucor-JFE. The steel products segment includes steel joists and joist girders, steel deck, fabricated concrete reinforcing steel, cold finished steel, precision castings, steel fasteners, metal building systems, insulated metal panels, steel grating, tubular products, steel racking, piling products, and wire and wire mesh. The raw materials segment includes DJJ, primarily a scrap broker and processor; Nu-Iron Unlimited and Nucor Steel Louisiana, two facilities that produce DRI used by the steel mills; and our natural gas production operations.
16
On February 1, 2022, Nucor used cash on hand to acquire a 51% controlling ownership position in CSI for a cash purchase price of approximately $400.0 million, adjusted for net debt and working capital at closing. CSI is a flat-rolled steel converter with the capability to produce more than two million tons of finished steel and steel products annually. The company has five product lines, including hot rolled, pickled and oiled, cold rolled, galvanized and ERW pipe. Key end-use markets served by CSI include customers in the construction, service center and energy industries. This acquisition gives Nucor a strong presence in the Western region of the United States and grows our ability to produce an even wider range of value-added sheet products. CSI financial results were included as part of the steel mills segment beginning on February 1, 2022, the date of the acquisition of Nucor’s 51% controlling ownership position.
The average utilization rates of all operating facilities in the steel mills, steel products and raw materials segments were approximately 77%, 73% and 72%, respectively, in the first quarter of 2022 compared with approximately 95%, 74% and 79%, respectively, in the first quarter of 2021.
Results of Operations
Nucor reported consolidated net earnings of $2.10 billion, or $7.67 per diluted share, in the first quarter of 2022, making it the most profitable first quarter in the Company’s history. By comparison, Nucor reported consolidated net earnings of $942.4 million, or $3.10 per diluted share in the first quarter of 2021, which was the Company’s previous record for first quarter earnings. Nucor reported consolidated net earnings of $2.25 billion, or $7.97 per diluted share, in the fourth quarter of 2021, which was the most profitable quarter in the Company’s history.
Demand remained robust in the first quarter of 2022 across the key end-use markets we serve, a continuation of the trend that we saw throughout 2021. Average selling prices for our steel mills and steel products segments increased rapidly during 2021, and the Company’s profitability increased during the first quarter of 2022 as compared to the first quarter of 2021.
Earnings in the first quarter of 2022 decreased from the fourth quarter of 2021 primarily due to the decreased earnings of the steel mills segment, which was impacted by some demand softening at our sheet mills. This softening demand, combined with increased imports and higher customer inventory levels, led to decreased average selling prices for sheet products in the first quarter of 2022. However, overall selling prices in the steel mills segment increased later in the first quarter due in part to the supply chain disruptions caused by the conflict in Ukraine. The steel products segment had a record quarter for profitability in the first quarter of 2022 as demand in nonresidential construction markets continued to be strong. Earnings in the raw materials segment increased in the first quarter of 2022 as compared to the fourth quarter of 2021 due to volatility and market conditions.
The following discussion provides a greater quantitative and qualitative analysis of Nucor’s performance in the first quarter of 2022 as compared to the first quarter of 2021.
Net Sales
Net sales to external customers by segment for the first quarter of 2022 and 2021 were as follows (in thousands):
|
|
|
Three Months (13 Weeks) Ended |
||||
|
|
|
April 2, 2022 |
|
April 3, 2021 |
|
% Change |
|
Steel mills |
|
$6,518,609 |
|
$4,608,777 |
|
41% |
|
Steel products |
|
3,323,088 |
|
1,810,055 |
|
84% |
|
Raw materials |
|
651,585 |
|
598,308 |
|
9% |
|
Total net sales to external customers |
|
$10,493,282 |
|
$7,017,140 |
|
50% |
Net sales for the first quarter of 2022 increased 50% from the first quarter of 2021. Average sales price per ton increased 68% from $978 in the first quarter of 2021 to $1,641 in the first quarter of 2022. Total tons shipped to outside customers in the first quarter of 2022 were 6,394,000 tons, an 11% decrease from the first quarter of 2021.
17
In the steel mills segment, sales tons for the first quarter of 2022 and 2021 were as follows (in thousands):
|
|
|
Three Months (13 Weeks) Ended |
||||
|
|
|
April 2, 2022 |
|
April 3, 2021 |
|
% Change |
|
Outside steel shipments |
|
4,539 |
|
5,190 |
|
-13% |
|
Inside steel shipments |
|
1,275 |
|
1,354 |
|
-6% |
|
Total steel shipments |
|
5,814 |
|
6,544 |
|
-11% |
Net sales for the steel mills segment increased 41% in the first quarter of 2022 from the first quarter of 2021, due primarily to a 61% increase in the average sales price per ton, from $891 to $1,436, partially offset by a 13% decrease in tons sold to outside customers. Average selling prices increased across all product groups within the steel mills segment in the first quarter of 2022 as compared to the first quarter of 2021.
Outside sales tonnage for the steel products segment for the first quarter of 2022 and 2021 was as follows (in thousands):
|
|
|
Three Months (13 Weeks) Ended |
||||
|
|
|
April 2, 2022 |
|
April 3, 2021 |
|
% Change |
|
Joist sales |
|
179 |
|
172 |
|
4% |
|
Deck sales |
|
136 |
|
135 |
|
1% |
|
Cold finished sales |
|
133 |
|
132 |
|
1% |
|
Rebar fabrication sales |
|
291 |
|
282 |
|
3% |
|
Piling products sales |
|
111 |
|
136 |
|
-18% |
|
Tubular products sales |
|
255 |
|
250 |
|
2% |
|
Other steel products sales |
|
130 |
|
100 |
|
30% |
|
Total steel products sales |
|
1,235 |
|
1,207 |
|
2% |
Net sales for the steel products segment increased 84% in the first quarter of 2022 compared to the first quarter of 2021, due to a 79% increase in the average sales price per ton from $1,499 to $2,689 and a 2% increase in tons sold to outside customers. Average selling prices increased across all businesses within the steel products segment in the first quarter of 2022 as compared to the first quarter of 2021.
Net sales for the raw materials segment increased 9% in the first quarter of 2022 compared to the first quarter of 2021. The increase in net sales was due primarily to increased average selling prices, which were partially offset by a decrease in volumes at DJJ’s brokerage and scrap processing operations. In the first quarter of 2022, approximately 91% of outside sales for the raw materials segment were from the brokerage operations of DJJ, and approximately 7% of outside sales were from the scrap processing operations of DJJ (88% and 9%, respectively, in the first quarter of 2021).
Gross Margins
Nucor recorded gross margins of $3.46 billion (33%) in the first quarter of 2022, which was a significant increase compared with $1.62 billion (23%) in the first quarter of 2021.
|
|
• |
The primary driver for the increase in gross margins in the first quarter of 2022 as compared to the first quarter of 2021 was increased metal margins in the steel mills segment. Metal margin is the difference between the selling price of steel and the cost of scrap and scrap substitutes. |
Scrap and scrap substitutes are the most significant element in the total cost of steel production. The average scrap and scrap substitute cost per gross ton used in the first quarter of 2022 was $495, a 22% increase compared to $405 in the first quarter of 2021. The increase in the average scrap and scrap substitute cost per gross ton used was more than offset by the previously mentioned increases in average selling prices.
Scrap prices are driven by the global supply and demand for scrap and other iron-based raw materials used to make steel. Scrap prices have been volatile as the conflict in Ukraine has disrupted global supply chains. We believe that scrap markets will continue to be volatile in the second quarter of 2022.
|
|
• |
Pre-operating and start-up costs of new facilities were approximately $62 million in the first quarter of 2022 and approximately $19 million in the first quarter of 2021. Pre-operating and start-up costs in the first quarter of 2022 included costs related to the sheet mill expansion in Kentucky, the plate mill being built in Kentucky and the galvanizing line at our sheet mill expansion in Arkansas. Pre-operating and start-up costs in the first quarter of 2021 included costs related to the plate mill being built in Kentucky, the sheet mill expansion in Kentucky, the |
18
|
|
merchant bar quality mill expansion at our bar mill in Illinois and the galvanizing line at our sheet mill expansion in Arkansas. Nucor defines pre-operating and start-up costs, all of which are expensed, as the losses attributable to facilities or major projects that are either under construction or in the early stages of operation. Once these facilities or projects have attained a utilization rate that is consistent with our similar operating facilities, they are no longer considered by Nucor to be in start-up. |
|
|
• |
Gross margins in the steel products segment increased in the first quarter of 2022 as compared to the first quarter of 2021. The largest increase in gross margins was at our joist and deck businesses. Demand in nonresidential construction markets continues to be strong. As we enter the second quarter of 2022, backlogs for the steel products segment are strong. |
|
|
• |
Gross margins in the raw materials segment decreased in the first quarter of 2022 as compared to the first quarter of 2021, primarily due to decreased margins at our DRI facilities, which had strong profitability in the first quarter of 2021. |
Marketing, Administrative and Other Expenses
A major component of marketing, administrative and other expenses is profit sharing and other incentive compensation costs. These costs, which are based upon and fluctuate with Nucor’s financial performance, increased by $157.1 million in the first quarter of 2022 as compared to the first quarter of 2021. This increase was due to Nucor’s increased profitability in the first quarter of 2022 as compared to the prior year period, which resulted in significantly increased accruals related to profit sharing.
Equity in Earnings of Unconsolidated Affiliates
Equity in earnings of unconsolidated affiliates was $7.7 million and $13.2 million in the first quarter of 2022 and 2021, respectively. The decrease in equity method investment earnings was primarily due to decreased earnings at Nucor-JFE.
Interest Expense (Income)
Net interest expense for the first quarter of 2022 and 2021 was as follows (in thousands):
|
|
|
Three Months (13 Weeks) Ended |
|
|||||
|
|
|
April 2, 2022 |
|
|
April 3, 2021 |
|
||
|
Interest expense |
|
$ |
44,076 |
|
|
$ |
40,970 |
|
|
Interest income |
|
|
(941 |
) |
|
|
(1,326 |
) |
|
Interest expense, net |
|
$ |
43,135 |
|
|
$ |
39,644 |
|
Interest expense increased in the first quarter of 2022 compared to the first quarter of 2021 due primarily to an increase in average debt outstanding. Interest income decreased in the first quarter of 2022 compared to the first quarter of 2021 due to a decrease in average interest rates on investments.
Earnings Before Income Taxes and Noncontrolling Interests
The table below presents earnings before income taxes and noncontrolling interests by segment for the first quarter of 2022 and 2021 (in thousands). The changes between periods were driven by the quantitative and qualitative factors previously discussed.
|
|
|
|
|
|||||
|
|
|
Three Months (13 Weeks) Ended |
|
|||||
|
|
|
April 2, 2022 |
|
|
April 3, 2021 |
|
||
|
Steel mills |
|
$ |
2,578,854 |
|
|
$ |
1,314,974 |
|
|
Steel products |
|
|
684,867 |
|
|
|
211,812 |
|
|
Raw materials |
|
|
95,853 |
|
|
|
223,235 |
|
|
Corporate/eliminations |
|
|
(461,459 |
) |
|
|
(451,775 |
) |
|
|
|
$ |
2,898,115 |
|
|
$ |
1,298,246 |
|
19
Noncontrolling Interests
Noncontrolling interests represent the income attributable to the holders of noncontrolling interests in Nucor’s joint ventures, NYS and CSI, in both of which Nucor owns 51% controlling interests. The increase in earnings attributable to noncontrolling interests in the first quarter of 2022 as compared to the first quarter of 2021 was due to the increased earnings of NYS, which was a result of the increased metal margins, as well as the earnings of CSI, for which results were consolidated beginning on February 1, 2022, the date of the acquisition of Nucor’s 51% controlling ownership position.
Under the NYS limited partnership agreement, the minimum amount of cash to be distributed each year to the partners is the amount needed by each partner to pay applicable U.S. federal and state income taxes. In the first quarter of 2022 and 2021, the amount of cash distributed to noncontrolling interest holders exceeded the earnings attributable to noncontrolling interests based on mutual agreement of the general partners.
Provision for Income Taxes
The effective tax rate for the first quarter of 2022 was 23.2% compared to 23.9% for the first quarter of 2021. The expected effective rate for the full year of 2022 is approximately 23.5%.
We estimate that in the next 12 months our gross unrecognized tax benefits, which totaled $118.0 million at April 2, 2022, exclusive of interest, could decrease by as much as $10.4 million as a result of the expiration of the statute of limitations and the closures of examinations, substantially all of which would impact the effective tax rate.
Nucor has concluded U.S. federal income tax matters for tax years through 2014 and for tax year 2016. The tax years 2015 and 2017 through 2020 remain open to examination by the Internal Revenue Service. The 2015 and 2018 Canadian income tax returns for Harris Steel Group Inc. and certain related affiliates are currently under examination by the Canada Revenue Agency. The tax years 2015 through 2020 remain open to examination by other major taxing jurisdictions to which Nucor is subject (primarily Canada and other state and local jurisdictions).
Net Earnings Attributable to Nucor Stockholders and Return on Equity
Nucor reported consolidated net earnings of $2.10 billion, or $7.67 per diluted share, in the first quarter of 2022 as compared to consolidated net earnings of $942.4 million, or $3.10 per diluted share, in the first quarter of 2021. Net earnings attributable to Nucor stockholders as a percentage of net sales were 20.0% and 13.4% in the first quarter of 2022 and 2021, respectively. Annualized return on average stockholders’ equity was 57.4% and 33.9% in the first quarter of 2022 and 2021, respectively.
Outlook
End-use market demand remains strong for steel and steel products, and we remain confident that 2022 will be another year of strong earnings and cash flow for Nucor.
We expect that the second quarter of 2022 will be the most profitable quarter in Nucor's history, surpassing the previous record set in the fourth quarter of 2021.
We expect that second quarter earnings will be driven by increased profitability in the steel products segment, which continues to benefit from robust demand in nonresidential construction markets. In addition, the steel mills segment earnings are expected to strengthen due primarily to increased profitability at our sheet and plate mills. Similarly, Nucor's raw materials segment is expected to generate increased profits in the second quarter due to relatively higher selling prices for raw materials.
Nucor’s largest exposure to market risk is in our steel mills and steel products segments. Our largest single customer in the first quarter of 2022 represented approximately 5% of sales and has consistently paid within terms. In the raw materials segment, we are exposed to price fluctuations related to the purchase of scrap and scrap substitutes, pig iron and iron ore. Our exposure to market risk is mitigated by the fact that our steel mills use a significant portion of the products of the raw materials segment.
20
Liquidity and Capital Resources
We believe our financial strength is a key strategic advantage among domestic steel producers, particularly during recessionary business cycles. We carry the highest credit ratings of any steel producer headquartered in North America, with an A- long-term rating from Standard & Poor’s and a Baa1 long-term rating from Moody’s. Our credit ratings are dependent, however, upon a number of factors, both qualitative and quantitative, and are subject to change at any time. The disclosure of our credit ratings is made in order to enhance investors’ understanding of our sources of liquidity and the impact of our credit ratings on our cost of funds.
Our liquidity position as of April 2, 2022 remained strong, consisting of total cash and cash equivalents, short-term investments and restricted cash and cash equivalents of $4.26 billion as of such date compared to $2.76 billion as of December 31, 2021. Of these totals, the amount of restricted cash and cash equivalents was $88.2 million at April 2, 2022 and $143.8 million at December 31, 2021. Approximately $504.6 million of the cash and cash equivalents position at April 2, 2022, was held by our majority-owned and controlled subsidiaries, including CSI which was acquired on February 1, 2022, as compared to $540.3 million at December 31, 2021.
Cash provided by operating activities was $2.47 billion in the first quarter of 2022 as compared to $530.4 million in the first quarter of 2021. The $1.94 billion increase was primarily driven by net earnings of $2.23 billion for the first quarter of 2022, an increase of $1.24 billion over net earnings in the prior year period of $987.5 million. In addition, changes in operating assets and operating liabilities (exclusive of acquisitions) provided cash of $6.7 million in the first quarter of 2022 as compared to using cash of $734.2 million in the first quarter of 2021.
The funding of our working capital in the first quarter of 2022 decreased over the first quarter of 2021 mainly due to accounts receivable and inventories only increasing by 7% and 4%, respectively, as compared to 23% and 22%, respectively, in the first quarter of 2021. As a result, the change in accounts receivable only used cash of $92.4 million in the first quarter of 2022 as compared to $524.6 million in the first quarter of 2021. The change in inventories provided cash of $124.2 million in the first quarter of 2022 as compared to using cash of $795.9 million in the same period of 2021. The increase in accrued federal income taxes provided cash of $672.1 million compared to the change in federal income taxes providing cash of $200.9 million in the first quarter of 2021. These changes were offset primarily by the following: (i) the change in salaries, wages and related accruals using cash of $658.3 million in the first quarter of 2022 as 2021 incentive compensation was paid versus providing cash of $69.8 million in the first quarter of 2021; and (ii) the change in accounts payable using cash of $165.5 million in the first quarter of 2022 as compared to providing cash of $225.3 million in the same period of 2021.
The current ratio was 2.9 at the end of the first quarter of 2022 and 2.5 at year-end 2021. The current ratio increased primarily due to the following increases in current assets: a 58%, or $1.36 billion, increase in cash and cash equivalents, a 77%, or $193.9 million, increase in short-term investments, a 7%, or $257.5 million, increase in accounts receivable, and a 4%, or $234.5 million, increase in inventories. Additionally, salaries, wages and related accruals decreased by 44%, or $662.2 million, as 2021 incentive compensation accrued as of year-end 2021 was paid in the first quarter of 2022.
Cash used in investing activities during the first quarter of 2022 was $981.7 million as compared to $302.0 million in the prior year period. Cash used for acquisitions (net of cash acquired) increased by $347.5 million due to the acquisition of CSI on February 1, 2022. Additionally, cash used to purchase investments increased by $59.8 million and cash proceeds from the sale of investments decreased by $139.4 million over the same period of 2021. Finally, cash used for capital expenditures of $447.7 million in the first quarter of 2022 increased by $134.2 million over the same period of 2021 primarily due to the plate mill under construction in Kentucky, the sheet mill expansion in Kentucky and the sheet mill in West Virginia. Capital expenditures for 2022 are estimated to be around $2.35 billion as compared to $1.62 billion in 2021. The projects that we anticipate will have the largest capital expenditures in 2022 are the plate mill under construction in Brandenburg, Kentucky and the sheet mill in West Virginia.
Cash used in financing activities during the first quarter of 2022 was $189.3 million as compared to $410.7 million in the prior year period. Stock repurchases were $905.3 million in the first quarter of 2022 as compared to $301.9 million in the first quarter of 2021 and distributions to noncontrolling interests were $211.6 million in the first quarter of 2022 as compared to $73.8 million in the first quarter of 2021. Offsetting these uses of cash was cash provided from the issuance and sale of the Notes, net of the discount, of $1.09 billion in the first quarter of 2022 (none in the same period of 2021). In the first quarter of 2022, Nucor issued $550.0 million of the 2032 Notes and $550.0 million of the 2052 Notes. In April 2022, we redeemed all $500.0 million aggregate principal of the 2023 Notes.
Nucor’s $1.75 billion revolving credit facility matures on November 5, 2026. The revolving credit facility includes only one financial covenant, which is a limit of 60% on the ratio of funded debt to total capital. In addition, the revolving credit
21
facility contains customary non-financial covenants, including a limit on Nucor’s ability to pledge the Company’s assets and a limit on consolidations, mergers and sales of assets. As of April 2, 2022, the funded debt to total capital ratio was 29.7% and we were in compliance with all non-financial covenants under the revolving credit facility. No borrowings were outstanding under the revolving credit facility as of April 2, 2022.
In February 2022, Nucor’s Board of Directors declared a quarterly cash dividend on Nucor’s common stock of $0.50 per share payable on May 11, 2022 to stockholders of record on March 31, 2022. This dividend is Nucor’s 196th consecutive quarterly cash dividend.
Funds provided from operations, cash and cash equivalents, short-term investments, restricted cash and cash equivalents and new borrowings under our existing credit facilities are expected to be adequate to meet future capital expenditure and working capital requirements for existing operations for at least the next 24 months. We also believe we have adequate access to capital markets for liquidity purposes. In September 2022, $600.0 million aggregate principal amount of the 2022 Notes will mature, which we expect to redeem in-full prior to that time using a portion of the net proceeds from the sale of the Notes, along with cash on hand, if necessary.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
In the ordinary course of business, Nucor is exposed to a variety of market risks. We continually monitor these risks and develop strategies to manage them.
Interest Rate Risk
Nucor manages interest rate risk by using a combination of variable-rate and fixed-rate debt. Nucor also occasionally makes use of interest rate swaps to manage net exposure to interest rate changes. Management does not believe that Nucor’s exposure to interest rate risk has significantly changed since December 31, 2021. There were no interest rate swaps outstanding at April 2, 2022.
Commodity Price Risk
In the ordinary course of business, Nucor is exposed to market risk for price fluctuations of raw materials and energy, principally scrap steel, other ferrous and nonferrous metals, alloys and natural gas. We attempt to negotiate the best prices for our raw material and energy requirements and to obtain prices for our steel products that match market price movements in response to supply and demand. In periods of strong or stable demand for our products, we are more likely to be able to effectively reduce the normal time lag in passing through higher raw material costs so that we can maintain our gross margins. When demand for our products is weaker, this becomes more challenging. Our DRI facilities in Trinidad and Louisiana provide us with flexibility in managing our raw materials requirements and our input costs. DRI is particularly important for operational flexibility when demand for prime scrap increases due to increased domestic steel production.
Natural gas produced by Nucor’s drilling operations is being sold to third parties to partially offset our exposure to changes in the price of natural gas consumed by our Louisiana DRI facility and our steel mills in the United States.
Nucor also periodically uses derivative financial instruments to hedge a portion of our exposure to price risk related to natural gas purchases used in the production process and to hedge a portion of our scrap, aluminum and copper purchases and sales. Gains and losses from derivatives designated as hedges are deferred in accumulated other comprehensive loss, net of income taxes on the condensed consolidated balance sheets and recognized in net earnings in the same period as the underlying physical transaction. At April 2, 2022, accumulated other comprehensive loss, net of income taxes included $49.2 million in unrealized net-of-tax gains for the fair value of these derivative instruments. Changes in the fair values of derivatives not designated as hedges are recognized in net earnings each period.
22
The following table presents the negative effect on pre-tax earnings of a hypothetical change in the fair value of the derivative instruments outstanding at April 2, 2022, due to an assumed 10% and 25% change in the market price of each of the indicated commodities (in thousands):
|
Commodity Derivative |
|
10% Change |
|
|
25% Change |
|
||
|
Natural gas |
|
$ |
23,216 |
|
|
$ |
58,041 |
|
|
Aluminum |
|
$ |
7,430 |
|
|
$ |
18,574 |
|
|
Copper |
|
$ |
4,257 |
|
|
$ |
10,668 |
|
Any resulting changes in fair value would be recorded as adjustments to accumulated other comprehensive loss, net of income taxes or recognized in net earnings, as appropriate. These hypothetical losses would be partially offset by the benefit of lower prices paid or higher prices received for the physical commodities.
Foreign Currency Risk
Nucor is exposed to foreign currency risk primarily through its operations in Canada, Europe and Mexico. We periodically use derivative contracts to mitigate the risk of currency fluctuations. Open foreign currency derivative contracts at April 2, 2022 were insignificant.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of the evaluation date.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting during the quarter ended April 2, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
23
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Nucor is from time to time a party to various lawsuits, claims and other 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 with self-insurance limits for certain risks.
There were no proceedings that were pending or contemplated under federal, state or local environmental laws that the Company reasonably believes may result in monetary sanctions of at least $1.0 million (the threshold chosen by Nucor as permitted by Item 103 of Regulation S-K promulgated under the Securities Exchange Act of 1934, as amended, and which Nucor believes is reasonably designed to result in disclosure of any such proceeding that is material to its business or financial condition).
Item 1A. Risk Factors
There have been no material changes in Nucor’s risk factors from those included in “Item 1A. Risk Factors” in Nucor’s Annual Report on Form 10-K for the year ended December 31, 2021.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Our share repurchase program activity for each of the three months and the quarter ended April 2, 2022 was as follows (in thousands, except per share amounts):
|
|
|
Total Number of Shares Purchased |
|
|
Average Price Paid per Share (1) |
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) |
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2) |
|
||||
|
January 1, 2022 - January 29, 2022 |
|
|
- |
|
|
$ |
- |
|
|
|
- |
|
|
$ |
3,849,489 |
|
|
January 30, 2022 - February 26, 2022 |
|
|
4,298 |
|
|
$ |
115.62 |
|
|
|
4,298 |
|
|
$ |
3,352,566 |
|
|
February 27, 2022 - April 2, 2022 |
|
|
2,750 |
|
|
$ |
148.51 |
|
|
|
2,750 |
|
|
$ |
2,944,165 |
|
|
For the Quarter Ended April 2, 2022 |
|
|
7,048 |
|
|
|
|
|
|
|
7,048 |
|
|
|
|
|
|
(1) |
Includes commissions of $0.17 per share. |
|
(2) |
On December 2, 2021, the Company announced that the Board of Directors had approved a new share repurchase program under which the Company is authorized to repurchase up to $4.00 billion of the Company’s common stock and terminated all previously authorized share repurchase programs. The share repurchase authorization is discretionary and has no expiration date. |
24
Item 6. Exhibits
|
Exhibit No. |
|
Description of Exhibit |
|
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
|
|
3.1 |
|
|
|
4 |
|
|
|
4.1 |
|
|
|
4.2 |
|
|
|
4.3 |
|
|
|
10* |
|
2014 Omnibus Incentive Compensation Plan, as amended and restated effective February 21, 2022 (#)
|
|
10.1* |
|
|
|
10.2* |
|
|
|
|
|
|
|
10.3* |
|
|
|
|
|
|
|
10.4* |
|
|
|
|
|
|
|
10.5 |
|
|
|
|
|
|
|
31* |
|
|
|
|
|
|
|
31.1* |
|
|
|
|
|
|
|
32** |
|
|
|
|
|
|
|
32.1** |
|
|
|
|
|
|
|
101* |
|
Financial Statements (Unaudited) from the Quarterly Report on Form 10-Q of Nucor Corporation for the quarter ended April 2, 2022, filed May 11, 2022, formatted in Inline XBRL: (i) the Condensed Consolidated Statements of Earnings, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows and (v) the Notes to Condensed Consolidated Financial Statements. |
|
|
|
|
|
104* |
|
Cover Page from the Quarterly Report on Form 10-Q of Nucor Corporation for the quarter ended April 2, 2022, filed May 11, 2022, formatted in Inline XBRL (included in Exhibit 101 above). |
|
* |
Filed herewith. |
|
** |
Furnished (and not filed) herewith pursuant to Item 601(b)(32)(ii) of Regulation S-K. |
|
(#) |
Indicates a management contract or compensatory plan or arrangement. |
25
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
NUCOR CORPORATION |
||
|
|
|
|
|
|
|
By: |
|
/s/ Stephen D. Laxton |
|
|
|
|
Stephen D. Laxton |
|
|
|
|
Chief Financial Officer, Treasurer and Executive |
|
|
|
|
Vice President |
Dated: May 11, 2022
26
Exhibit 10
NUCOR CORPORATION
2014 OMNIBUS INCENTIVE COMPENSATION PLAN
as amended and restated effective February 21, 2022
2014 OMNIBUS INCENTIVE COMPENSATION PLAN
Table of Contents
|
ARTICLE I INTRODUCTION |
1 |
|
|
ARTICLE II DEFINITIONS; CONSTRUCTION |
1 |
|
|
Section 2.1 |
Definitions |
1 |
|
Appreciation Right |
1 |
|
|
Award |
1 |
|
|
Award Agreement |
1 |
|
|
Base Price |
1 |
|
|
Board |
1 |
|
|
Cause |
1 |
|
|
Change in Control |
2 |
|
|
Code |
3 |
|
|
Committee |
3 |
|
|
Company |
3 |
|
|
Common Share |
3 |
|
|
Date of Grant |
3 |
|
|
DGCL |
3 |
|
|
Disability |
3 |
|
|
Effective Date |
3 |
|
|
Exchange Act |
3 |
|
|
Fair Market Value |
3 |
|
|
Good Reason |
4 |
|
|
Incentive Award |
4 |
|
|
Incentive Stock Options |
4 |
|
|
Option Price |
4 |
|
|
Optionee |
4 |
|
|
Other Award |
4 |
|
|
Outside Director |
4 |
|
|
Participant |
4 |
|
|
Performance Objectives |
4 |
|
|
Performance Period |
4 |
|
|
Performance Share |
5 |
|
|
Performance Unit |
5 |
|
|
Plan |
5 |
|
|
Restricted Share |
5 |
|
|
Restricted Share Unit |
5 |
|
|
Retirement |
5 |
|
|
Spread |
5 |
|
|
Stock Option |
5 |
|
|
Subsidiary |
5 |
|
|
Section 2.2 |
Construction |
5 |
|
ARTICLE III COMMON SHARES SUBJECT TO THE PLAN |
6 |
|
|
Section 3.1 |
General |
6 |
i
|
Section 3.2 |
Share Counting |
6 |
|
Section 3.3 |
Award Limitations |
6 |
|
ARTICLE IV STOCK OPTIONS |
7 |
|
|
ARTICLE V RESTRICTED SHARES AND RESTRICTED SHARE UNITS |
8 |
|
|
ARTICLE VI APPRECIATION RIGHTS |
9 |
|
|
ARTICLE VII PERFORMANCE UNITS AND PERFORMANCE SHARES |
10 |
|
|
ARTICLE VIII INCENTIVE AWARDS |
12 |
|
|
ARTICLE IX OTHER AWARDS |
12 |
|
|
ARTICLE X RESTRICTIVE COVENANTS |
13 |
|
|
Section 10.1 |
Noncompetition |
13 |
|
Section 10.2 |
Non-solicitation |
13 |
|
ARTICLE XI ADJUSTMENTS |
13 |
|
|
ARTICLE XII ADMINISTRATION OF THE PLAN |
14 |
|
|
Section 12.1 |
Committee Authority |
14 |
|
Section 12.2 |
Indemnification |
15 |
|
ARTICLE XII AMENDMENTS AND TERMINATION |
15 |
|
|
Section 13.1 |
Amendments to the Plan |
15 |
|
Section 13.2 |
Amendments to Awards |
15 |
|
Section 13.3 |
Prohibition of Certain Amendments and Re-Pricings |
16 |
|
ARTICLE XIV OTHER MATTERS |
16 |
|
|
Section 14.1 |
Nontransferability |
16 |
|
Section 14.2 |
No Rights to Awards |
17 |
|
Section 14.3 |
Share Certificates |
17 |
|
Section 14.4 |
Withholding |
17 |
|
Section 14.5 |
Award Agreements |
17 |
|
Section 14.6 |
No Limit on Other Compensation Arrangements |
17 |
|
Section 14.7 |
No Right to Employment |
17 |
|
Section 14.8 |
No Rights as Stockholder |
18 |
|
Section 14.9 |
Governing Law |
18 |
|
Section 14.10 |
Severability |
18 |
|
Section 14.11 |
Other Laws |
18 |
|
Section 14.12 |
No Trust or Fund Created |
18 |
|
Section 14.13 |
No Fractional Shares |
19 |
|
Section 14.14 |
Requirement of Consent and Notification of Election Under Section 83(b) of the Code or Similar Provision |
19 |
|
Section 14.15 |
Requirement of Notification Upon Disqualifying Disposition Under Section 421(b) of the Code |
19 |
|
Section 14.16 |
Recoupment of Awards |
19 |
|
Section 14.17 |
International Employees |
19 |
|
Section 14.18 |
Compliance with Code Section 409A |
20 |
|
Section 14.19 |
Limited Effect of Restatement |
20 |
|
ARTICLE XV DURATION OF THE PLAN |
20 |
|
|
|
|
|
|
APPENDIX A |
Nucor Corporation Senior Officers Annual Incentive Plan |
|
|
APPENDIX B |
Nucor Corporation Senior Officers Long-Term Incentive Plan |
|
ii
NUCOR CORPORATION
2014 OMNIBUS INCENTIVE COMPENSATION PLAN
The Company adopted and established the Nucor Corporation 2014 Omnibus Incentive Compensation Plan effective as of January 1, 2014, and the Plan was subsequently approved by the Company’s stockholders at the 2014 annual meeting held on May 8, 2014 and at the 2020 annual meeting held on May 14, 2020. The Company desires to amend and restate the Plan to (a) eliminate the single trigger Change in Control vesting provisions for Awards made after the Effective Date and (b) otherwise meet current needs.
ARTICLE II
Definitions; Construction
Section 2.1Definitions. For purposes of the Plan, capitalized terms used herein shall have the following meanings:
“Appreciation Right” means a right granted pursuant to Article VI.
“Award” means an award of Stock Options, Appreciation Rights, Performance Units, Performance Shares, Restricted Shares, Restricted Share Units or Incentive Awards under the Plan.
“Award Agreement” means an agreement, certificate, resolution or other type or form of writing or other evidence approved by the Committee which sets forth the terms and conditions of an Award. An Award Agreement may be in an electronic medium, may be limited to a notation on the books and records of the Company and, with the approval of the Committee, need not be signed by a representative of the Company or a Participant.
“Base Price” means the price used as the basis for determining the Spread upon the exercise of an Appreciation Right.
“Board” means the Board of Directors of the Company.
“Cause” means a Participant’s (a) continued willful failure to substantially perform and fulfill the Participant’s duties to the Company, (b) willfully engaging in gross misconduct materially and demonstrably injurious to the Company or (c) material breach of any written agreement between the Participant and the Company, provided, that with respect to an event giving the Company Cause for termination described in either of the foregoing clauses (a) or (c), as determined by the Committee in good faith, the Company has provided the Participant written notice thereof and the Participant has not cured such event, as determined by the Committee in good faith within fifteen (15) days following the date the Company provides such notice.
“Change in Control” means the occurrence of any one of the following events:
(a)individuals who, at the Effective Date, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director after the Effective Date and whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest (as described in Rule 14a-11 under the Exchange Act (“Election Contest”) or other actual or threatened solicitation of proxies or consents by or on behalf of any “person” (as such term is defined in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act) other than the Board (“Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be an Incumbent Director;
(b)any person becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing twenty-five percent (25%) or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of the Board (the “Company Voting Securities”); provided, however, that the event described in this subsection (b) shall not be a Change in Control if it is the result of any of the following acquisitions: (i) an acquisition directly by or from the Company or any Subsidiary; (ii) an acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, (iii) an acquisition by an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) an acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection (c) below); or
(c)the consummation of a reorganization, merger, consolidation, statutory share exchange, liquidation, dissolution or similar form of corporate transaction involving the Company that requires the approval of the Company’s stockholders, whether for such transaction or the issuance of securities in the transaction (a “Reorganization”), or the sale or other disposition of all or substantially all of the Company’s assets (a “Sale”), unless immediately following such Reorganization or Sale: (i) more than fifty percent (50%) of the total voting power of (x) the corporation resulting from such Reorganization or the corporation which has acquired all or substantially all of the assets of the Company (in either case, the “Surviving Corporation”), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of one hundred percent (100%) of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is represented by the Company Voting Securities that were outstanding immediately prior to such Reorganization or Sale (or, if applicable, is represented by shares into which Company Voting Securities were converted pursuant to such Reorganization or Sale), and such voting power among the holders thereof is in substantially the same proportion as the voting power of such Company Voting Securities among the holders thereof immediately prior to the Reorganization or Sale, (ii) no person (other than (x) the Company, (y) any employee benefit plan (or related trust) sponsored
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or maintained by the Surviving Corporation or the Parent Corporation, or (z) a person who immediately prior to the Reorganization or Sale was the beneficial owner of twenty-five percent (25%) or more of the outstanding Company Voting Securities) is the beneficial owner, directly or indirectly, of twenty-five percent (25%) or more of the total voting power of the outstanding voting securities eligible to elect directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation), and (iii) at least a majority of the members of the board of directors of the Parent Corporation (or, if there is no Parent Corporation, the Surviving Corporation) following the consummation of the Reorganization or Sale were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Reorganization or Sale (any Reorganization or Sale which satisfies all of the foregoing criteria, a “Non-Qualifying Transaction”).
“Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute, and applicable regulations.
“Committee” means the Compensation and Executive Development Committee of the Board.
“Company” means Nucor Corporation, a Delaware corporation and any successor thereto, together with its Subsidiaries, collectively or individually, as the contest requires.
“Common Share” means a share of the common stock, par value of $0.40, of the Company or any security into which such share may be changed by reason of any transaction or event of the type referred to in Article XI.
“Date of Grant” means the date specified by the Committee on which an Award shall become effective.
“DGCL” is defined in Section 12.1.
“Disability” means “disability” or “disabled” as defined in any long-term disability plan sponsored by the Company in which the Participant participates. In the event the Participant does not participate in any long-term disability plan sponsored by the Company, “disability” means the Participant is unable to engage in substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. No Participant shall be considered to have a Disability unless he or she furnishes proof of the existence thereof in such form and manner, and at such times, as the Committee may require.
“Effective Date” means February 21, 2022 with respect to the amended and restated Plan set forth in this instrument.
“Exchange Act” means the Securities Exchange Act of 1934 and the rules and regulations thereunder, as such law, rules and regulations may be amended from time to time.
“Fair Market Value” of a Common Share on any given date means (a) the closing price of such Common Share as reported on the New York Stock Exchange composite tape on the
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immediately preceding day or (b) if Common Shares were not traded on the New York Stock Exchange on such day, then on the next preceding day that Common Shares were traded on such exchange, all as reported by such source as the Committee may select.
“Good Reason” means, with respect to a Participant’s termination of employment with the following a Change in Control any of the following acts by the Company without the consent of the Participant (in each case, other than an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company within 10 days after receipt of notice thereof given by the Participant): (i) diminution of the Participant’s position, authority, title, reporting requirements, duties or responsibilities as in effect on the date immediately prior to the Change in Control, (ii) a reduction by the Company in the Participant’s base salary or target bonus opportunity as in effect on the date immediately prior to the Change in Control, or (iii) the Company’s requiring the Participant, without his or her consent, to be based at any office or location more than thirty-five (35) miles from the office or location at which the Participant was based on the date immediately prior to the Change in Control, or to travel on Company business to a substantially greater extent than required immediately prior to the Change in Control.
“Incentive Award” means a cash award to a Participant pursuant to Article VIII.
“Incentive Stock Options” means Stock Options that are intended to qualify as “incentive stock options” under Section 422 of the Code or any successor provision.
“Option Price” means the purchase price payable on exercise of a Stock Option.
“Optionee” means the optionee named in an Award Agreement evidencing an outstanding Stock Option.
“Other Award” means an award to a Participant pursuant to Article IX.
“Outside Director” means a member of the Board who is not also an employee of the Company.
“Participant” means any director, officer, employee or consultant of the Company or its Subsidiaries who is selected by the Committee to receive an award under the Plan.
“Performance Objectives” means the measurable performance objective or objectives established pursuant to the Plan for Participants who have received grants of Performance Units or Performance Shares, Incentive Awards or, when so determined by the Committee, Stock Options, Appreciation Rights, Restricted Shares and Restricted Share Units. Performance Objectives may be described in terms of Company-wide objectives or objectives that are related to the performance of the individual Participant or of the Subsidiary, division, department, region or function within the Company in which the Participant is employed. The Performance Objectives may be made relative to the performance of other corporations.
“Performance Period” means, in respect of a Performance Unit, Performance Share or Incentive Award, a period of time established pursuant to Article VII or VIII within which the Performance Objectives relating to such Performance Share, Performance Unit or Incentive Award are to be achieved.
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“Performance Share” means a bookkeeping entry that records the equivalent of one Common Share awarded pursuant to Article VII.
“Performance Unit” means a bookkeeping entry that records a unit equivalent to $1.00 awarded pursuant to Article VII.
“Plan” means the Nucor Corporation 2014 Omnibus Incentive Compensation Plan, as set forth herein and as amended from time to time.
“Restricted Share” means a Common Share granted or sold pursuant to Article V of the Plan as to which neither the substantial risk of forfeiture nor the prohibition on transfers referred to in such Article V has expired.
“Restricted Share Unit” means a bookkeeping entry that records the equivalent of one Common Share awarded pursuant to Article V.
“Retirement” means the voluntary termination of a Participant’s employment after the date the Participant has attained such age and completed such years of service as may be specified by the Committee, and if required in the Award Agreement, with the approval of the Committee.
“Spread” means the excess of the Fair Market Value on the date when an Appreciation Right is exercised over the Base Price provided for in the Appreciation Right.
“Stock Option” means the right to purchase Common Shares from the Company upon the exercise of an option granted pursuant to Article IV.
“Subsidiary” means any corporation (other than the Company), limited liability company, or other business organization in an unbroken chain of entities beginning with the Company in which each of such entities other than the last one in the unbroken chain owns stock, units, or other interests possessing fifty percent (50%) or more of the total combined voting power of all classes of stock, units, or other interests in one of the other entities in that chain.
Section 2.2Construction. To the extent the definitions ascribed to the terms in Section 2.1 are different from the definitions ascribed to the same or similar terms in any other employee benefit plan sponsored or maintained by the Company, the definitions in Section 2.1 shall govern and control for purposes of administering this Plan only and shall not affect or modify or otherwise be used for the administration of any such other employee benefit plan. Whenever used herein, unless the context clearly indicates otherwise, a pronoun in the masculine gender shall include the feminine gender, and the singular shall include the plural and the plural the singular. The conjunction “or” shall include both the conjunctive and disjunctive, and the adjective “any” shall mean one or more or all. Article, section and paragraph headings in the Plan have been inserted for convenience of reference only and are to be ignored in any construction of the provisions hereof. A reference to a “Section” or an “Article” means a Section or Article of the Plan and not of another source unless another source is specified or clearly indicated. Any reference in the Plan to the masculine gender is for convenience of expression only and includes the feminine gender unless the context clearly indicates otherwise.
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ARTICLE III
Common Shares Subject to the plan
Section 3.1General. Subject to adjustment as provided in Article XI, the number of Common Shares that may be issued or transferred from and after January 1, 2014 (a) upon the exercise of Stock Options or Appreciation Rights, (b) as Restricted Shares and released from substantial risks of forfeiture thereof, (c) in payment of Restricted Share Units that have become vested, (d) in payment of Performance Units or Performance Shares that have been earned, (e) in payment of awards granted under Article IX or (f) in payment of dividend equivalents paid with respect to awards made under the Plan shall not exceed in the aggregate 19,000,000 (which amount represents the sum of 13,000,000 (the number of Common Shares available for issuance under the Plan when it was initially adopted effective January 1, 2014) plus 6,000,000 (the increase in the number of Common Shares available for issuance under the Plan made by the first amendment and restatement of the Plan effective February 17, 2020)). Such Common Shares may be shares of original issuance, treasury shares or a combination of the foregoing.
Section 3.2Share Counting. The Committee may adopt reasonable counting procedures to ensure appropriate counting, avoid double counting (as, for example, in the case of tandem or substitute awards) and make adjustments in the number of Common Shares available under Section 3.1 or otherwise specified in the Plan or in any award granted hereunder if the number of Common Shares actually delivered differs from the number of Common Shares previously counted in connection with an award, provided such counting procedures comply with the requirements of this Section 3.2. Common Shares subject to an award that is canceled, expired, forfeited, settled in cash or is otherwise terminated without a delivery of Common Shares to the Participant will again be available for awards. Common Shares withheld in payment of the exercise price or taxes relating to an award and Common Shares surrendered in payment of any exercise price or taxes relating to an award shall be considered Common Shares delivered to the Participant and shall not be available for awards under the Plan. In addition, if the amount payable upon exercise of an Appreciation Right is paid in Common Shares, the total number of Common Shares subject to the Appreciation Right shall be considered Common Shares delivered to the Participant (regardless of the number of Common Shares actually delivered to the Participant) and shall not be available for awards under the Plan. This Section 3.2 shall apply to the number of Common Shares reserved and available for Incentive Stock Options only to the extent consistent with applicable regulations relating to Incentive Stock Options under the Code.
Section 3.3Award Limitations. Notwithstanding any other provision of the Plan to the contrary:
(a)in no event shall any Participant in any calendar year receive:
(i)an award of Stock Options, Appreciation Rights and Other Awards, in the aggregate, for more than 1,000,000 Common Shares, subject to adjustment as provided in Article XI;
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(ii)an award of Performance Shares, Restricted Shares or Restricted Share Units specifying Performance Objectives covering more than 500,000 Common Shares, subject to adjustment as provided in Article XI;
(iii)Performance Units having an aggregate maximum value as of their respective Dates of Grant in excess of $10,000,000; or
(iv)an Incentive Award of more than $10,000,000; and
(b)the sum of the grant date value of equity-based awards and cash fees that may be granted or paid to an Outside Director as compensation for services as an Outside Director in any calendar year shall not exceed $750,000.
The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the granting to Participants of Stock Options. Each such grant may utilize any or all of the authorizations, and shall be subject to all of the limitations, contained in the following provisions:
(a)Each grant shall specify the number of Common Shares to which it pertains, subject to adjustments as provided in Article XI.
(b)Each grant shall specify an Option Price per share, which shall be equal to or greater than the Fair Market Value on the Date of Grant.
(c)Each grant shall specify whether the Option Price shall be payable (i) in cash or by check acceptable to the Company, (ii) by the actual or constructive transfer to the Company of Common Shares owned by the Optionee, or (iii) by a combination of such methods of payment.
(d)To the extent permitted by applicable laws, any grant may provide for deferred payment of the Option Price from the proceeds of sale through a bank or broker on a date satisfactory to the Company of some or all of the Common Shares to which such exercise relates.
(e)Successive grants may be made to the same Participant whether or not any Stock Options previously granted to such Participant remain unexercised.
(f)Each grant shall specify the period or periods of continuous service by the Optionee with the Company that is necessary before the Stock Options or installments thereof will become exercisable.
(g)Any grant of Stock Options may specify Performance Objectives that must be achieved as a condition to the exercise of such rights.
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(h)Stock Options granted under the Plan may be (i) options, including, without limitation, Incentive Stock Options, that are intended to qualify under particular provisions of the Code, (ii) options that are not intended so to qualify, or (iii) combinations of the foregoing.
(i)No Stock Option shall be exercisable more than 10 years from the Date of Grant.
(j)Each grant of Stock Options shall be evidenced by an Award Agreement which shall contain such terms and provisions, consistent with the Plan and applicable sections of the Code, as the Committee may approve.
(k)No Stock Option may provide for the payment of dividend equivalents to the Optionee.
ARTICLE V
Restricted Shares and RESTRICTED SHARE UNITS
The Committee may authorize the grant of Restricted Shares and Restricted Share Units or the sale of Restricted Shares to Participants. Each such grant or sale may utilize any or all of the authorizations, and shall be subject to all of the limitations, contained in the following provisions:
(a)Each grant or sale of Restricted Shares shall constitute an immediate transfer of the ownership of Common Shares to the Participant in consideration of the performance of services, entitling such Participant to voting, dividend and other ownership rights, but subject to the substantial risk of forfeiture and restrictions on transfer hereinafter referred to.
(b)Each grant or sale of Restricted Shares may be made without additional consideration or in consideration of a payment by such Participant that is less than the Fair Market Value of a Restricted Share at the Date of Grant.
(c)The Restricted Shares covered by each such grant or sale shall be subject to a “substantial risk of forfeiture” within the meaning of Section 83 of the Code over a period of time and the Restricted Share Units covered by each such grant shall be subject to a vesting period determined by the Committee at the Date of Grant provided that the period for which such substantial risk of forfeiture or vesting is to continue shall not be less than three years with respect to grants to Participants who are employees, except, in either case, (i) in the event of the Participant’s death, Disability or Retirement or a Change in Control, (ii) a maximum of one hundred (100) Restricted Shares or Restricted Share Units may be granted to an employee who is not an officer without minimum vesting if such award is based on the length of the employee’s continuous full-time service and (iii) up to five percent (5%) of the Common Shares authorized under the Plan may be awarded as Restricted Shares or Restricted Share Units without any minimum vesting requirements.
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(d)Each such grant or sale shall provide that during the period for which such substantial risk of forfeiture or vesting is to continue (i) the transferability of the Restricted Shares shall be prohibited or restricted in the manner and to the extent prescribed by the Committee at the Date of Grant (which restrictions may include, without limitation, rights of repurchase or first refusal in the Company or provisions subjecting the Restricted Shares to a continuing substantial risk of forfeiture in the hands of any transferee) and (ii) the Restricted Share Units shall not be transferable.
(e)Any grant of Restricted Shares or Restricted Share Units may specify Performance Objectives that, if achieved, shall result in termination or early termination of the restrictions applicable to such shares or vested or early vesting of such units. Each grant may specify in respect of such Performance Objectives a minimum acceptable level of achievement and, if so specified, may also set forth a formula for determining the number of Restricted Shares on which restrictions will terminate or the number of Restricted Share Units which will become vested if performance is at or above the minimum level, but falls short of full achievement of the specified Performance Objectives. The grant of Restricted Shares or Restricted Share Units subject to Performance Objectives shall specify that, before the restrictions period with respect to the Restricted Shares is terminated or the Restricted Share Units become vested, the Committee must determine that the Performance Objectives have been satisfied.
(f)Each grant Restricted Share Units shall specify the time and manner of payment of Restricted Share Units that have become vested. Any grant may specify that the amount payable with respect thereto may be paid by the Company to the Participant in cash, in Common Shares or in any combination thereof, and may either grant to the Participant or retain in the Committee the right to elect among those alternatives.
(g)Any such grant or sale of Restricted Shares or Restricted Share Units may require that any or all dividends or other distributions paid thereon during the period of such restrictions be automatically deferred and reinvested in additional Restricted Shares or Restricted Share Units, which may be subject to the same restrictions as the underlying award.
(h)Each grant or sale of Restricted Shares or Restricted Share Units shall be evidenced by an Award Agreement, which shall contain such terms and provisions, consistent with the Plan and applicable sections of the Code, as the Committee may approve. Unless otherwise directed by the Committee, each certificate representing a Restricted Share shall be held in custody by the Company until all restrictions thereon shall have lapsed, together with a stock power executed by the Participant in whose name such certificate is registered, endorsed in blank and covering such Restricted Share.
The Committee may authorize the granting to any Participant of Appreciation Rights. An Appreciation Right shall be a right of the Participant to receive from the Company an amount determined by the Committee, which shall be expressed as a percentage of the Spread (not
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exceeding 100%) at the time of exercise. Each grant of Appreciation Rights may utilize any or all of the authorizations, and shall be subject to all of the requirements, contained in the following provisions:
(a)Any grant may specify that the amount payable on exercise of an Appreciation Right may be paid by the Company in cash, in Common Shares or in any combination thereof and may either grant to the Participant or retain in the Committee the right to elect among those alternatives.
(b)Any grant may specify that the amount payable on exercise of an Appreciation Right may not exceed a maximum specified by the Committee at the Date of Grant.
(c)Any grant may specify waiting periods before exercise and permissible exercise dates or periods.
(d)Each grant of an Appreciation Right shall be evidenced by an Award Agreement, which shall (i) describe such Appreciation Right, (ii) state that such Appreciation Right is subject to all the terms and conditions of the Plan and (iii) contain such other terms and provisions, consistent with the Plan and applicable sections of the Code, as the Committee may approve.
(e)No Appreciation Right may provide for the payment of dividend equivalents to the Participant.
(f)Each grant shall specify a Base Price, which shall be equal to or greater than the Fair Market Value on the Date of Grant.
(g)Successive grants may be made to the same Participant regardless of whether any Appreciation Rights previously granted to the Participant remain unexercised.
(h)No Appreciation Right granted under the Plan may be exercised more than 10 years from the Date of Grant.
ARTICLE VII
Performance Units and Performance Shares
The Committee may authorize the granting to Participants of Performance Units and Performance Shares that will become payable (or payable early) to a Participant upon achievement of specified Performance Objectives. Each such grant may utilize any or all of the authorizations, and shall be subject to all of the limitations, contained in the following provisions:
(a)Each grant shall specify the number of Performance Units or Performance Shares to which it pertains, which number may be subject to adjustment to reflect changes in compensation or other factors.
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(b)The Performance Period with respect to each Performance Unit or Performance Share shall be such period of time (not less than one year, except in the event of a Change in Control) commencing with the Date of Grant as shall be determined by the Committee at the time of grant.
(c)Any grant of Performance Units or Performance Shares shall specify Performance Objectives which, if achieved, shall result in payment or early payment of the award, and each grant may specify in respect of such specified Performance Objectives a minimum acceptable level of achievement and may also set forth a formula for determining the number of Performance Units or Performance Shares that will be earned if performance is at or above the minimum level, but falls short of full achievement of the specified Performance Objectives. The grant of Performance Units or Performance Shares shall specify that, before the Performance Shares or Performance Units shall be earned and paid, the Committee must determine that the Performance Objectives have been satisfied. The grant of Performance Units or Performance Shares shall specify that, before the Performance Units or Performance Shares shall be earned and paid, the Committee must determine that the Performance Objectives have been satisfied.
(d)Each grant shall specify the time and manner of payment of Performance Units or Performance Shares that have been earned. Any grant may specify that the amount payable with respect thereto may be paid by the Company to the Participant in cash, in Common Shares or in any combination thereof, and may either grant to the Participant or retain in the Committee the right to elect among those alternatives.
(e)Any grant of Performance Units may specify that the amount payable or the number of Common Shares issued with respect thereto may not exceed maximums specified by the Committee at the Date of Grant. Any grant of Performance Shares may specify that the amount payable with respect thereto may not exceed a maximum specified by the Committee at the Date of Grant.
(f)Each grant of Performance Units or Performance Shares shall be evidenced by an Award Agreement, which shall contain such terms and provisions, consistent with the Plan and applicable sections of the Code, as the Committee may approve.
(g)The Committee may, at or after the Date of Grant of Performance Units or Performance Shares, provide for the payment of contingent dividends or dividend equivalents to the holder thereof either in cash or in additional Common Shares, provided such dividends or dividend equivalents shall be paid to the Participant only if the Performance Units or Performance Shares with respect to which such dividends or dividend equivalents are payable are earned by the Participant.
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The Committee may authorize the granting to Participants of Incentive Awards that will become payable to a Participant upon achievement of specified Performance Objectives. Each such grant may utilize any or all of the authorizations, and shall be subject to all of the limitations, contained in the following provisions:
(a)The Performance Period with respect to each Incentive Award shall be such period of time commencing with the Date of Grant as shall be determined by the Committee at the time of grant.
(b)Any grant of an Incentive Award shall specify Performance Objectives which, if achieved, will result in payment of the award, and each grant may specify in respect of such specified Performance Objectives a minimum acceptable level of achievement and may also set forth a formula for determining the amount of the Incentive Award that will be earned if performance is at or above the minimum level, but falls short of full achievement of the specified Performance Objectives. The grant of an Incentive Award shall specify that, before the Incentive Award shall be earned and paid, the Committee must determine that the Performance Objectives have been satisfied.
(c)Each grant shall specify the time and manner of payment of the Incentive Award that has been earned. Any grant may specify that the amount payable with respect thereto may be paid by the Company to the Participant in cash, in Common Shares or in any combination thereof, and may either grant to the Participant or retain in the Committee the right to elect among those alternatives.
(d)Any grant of an Incentive Award may specify that the amount payable or the number of Common Shares issued with respect thereto may not exceed maximums specified by the Committee at the Date of Grant.
The Committee is authorized, subject to limitations under applicable law, to grant to any Participant Other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Common Shares or factors that may influence the value of Common Shares, including, without limitation, convertible or exchangeable debt securities, other rights convertible or exchangeable into Common Shares, purchase rights for Common Shares, awards with value and payment contingent upon performance of the Company or business units thereof or any other factors designated by the Committee, and awards valued by reference to the book value of Common Shares or the value of securities of, or the performance of specified Subsidiaries or other business units of, the Company. The Committee shall determine the terms and conditions of such Other Awards. Common Shares delivered pursuant to an Other Award in the nature of a purchase right granted under this Article IX shall be purchased for such consideration, paid for at such times, by such methods, and in such forms, including, without limitation, cash, Common Shares, notes or other property, as the Committee
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shall determine. Cash awards may also be granted as an element of, or as a supplement to, any Other Award granted under the Plan. The Committee is authorized to grant Common Shares as a bonus, or to grant Common Shares or other awards in lieu of obligations of the Company to pay cash or deliver other property under the Plan or under other plans or compensatory arrangements, subject to such terms as shall be determined by the Committee.
ARTICLE X
restrictive covenants
Section 10.1Noncompetition. An Award Agreement may require, as determined by the Committee in its sole discretion, that in the event a Participant, at any time during the Participant’s employment with the Company and for a period of up to two (2) years thereafter, directly or indirectly (whether for compensation or otherwise), alone or as an agent, principal, partner, officer, employee, trustee, director, stockholder or in any other capacity, owns, manages, operates, joins, controls or participates in the ownership, management, operation or control of, or furnishes any capital to, or is connected in any manner with, or provides any services as a consultant for, any business which Competes with the Company, the Participant shall (a) immediately forfeit any portion of the award subject to the Award Agreement that is then outstanding and (b) return to the Company the economic value of the award subject to the Award Agreement that was realized or obtained by the Participant since the date that is six (6) months before the date of the Participant’s action as described in this section.
Section 10.2Non-solicitation. An Award Agreement may also require, as determined by the Committee in its sole discretion, that for a period of up to two (2) years from the date of termination of employment, in the event the Participant who received the award subject to the Award Agreement, on his or her own behalf or on behalf of any person, firm or company, directly or indirectly, solicits or offers employment to any person who has been employed by the Company at any time during the six (6) months immediately preceding such solicitation or solicits, contacts or attempts to influence any “Customer” or “Prospective Customer” of the Company to alter its business with the Company or to conduct business with another business which Competes with the Company, the Participant shall (a) immediately forfeit all of the award subject to the Award Agreement that is then outstanding and (b) return to the Company the economic value of the award subject to the Award Agreement that was realized or obtained by the Participant since the date that is six (6) months before the date of the Participant’s solicitation under this section. “Customer” means any customer of the Company with whom the Participant or the Participant’s direct reports had significant contact during the six (6) month period preceding the Participant’s termination of employment. “Prospective Customer” means any person or entity targeted by the Company as a potential user of the Company’s products or services, and whom the Participant or the Participant’s direct reports participated in the solicitation of during the six (6) month period preceding the Participant’s termination of employment.
The Committee shall make or provide for such adjustments in the numbers of Common Shares covered by outstanding Common Share-based awards outstanding hereunder, in the
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Option Price and Base Price provided in outstanding Stock Options or Appreciation Rights, and in the kind of shares covered thereby, as the Committee, in its sole discretion, exercised in good faith, shall determine is equitably required to prevent dilution or enlargement of the rights of Participants that otherwise would result from (a) any stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, (b) any merger, consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or complete liquidation or other distribution of assets (including, without limitation, a special or large non-recurring dividend), issuance of rights or warrants to purchase securities, or (c) any other corporate transaction or event having an effect similar to any of the foregoing (a “Corporate Transaction”). Notwithstanding the foregoing, to the extent that a Corporate Transaction involves a nonreciprocal transaction between the Company and its stockholders that causes the per-share value of the Common Shares underlying outstanding awards under the Plan to change, such as a stock dividend, stock split, spin-off, rights offering or recapitalization through a large, nonrecurring cash dividend (an “Equity Restructuring”), the Committee shall be required to make or provide for such adjustments set forth in the preceding sentence that, in its sole discretion, are required to equalize the value of the outstanding awards under the Plan before and after the Equity Restructuring. In the event of any Corporate Transaction, the Committee, in its discretion, may provide in substitution for any or all outstanding awards under the Plan such alternative consideration as it, in good faith, may determine to be equitable in the circumstances and may require in connection therewith the surrender of all awards so replaced. The Committee may also make or provide for such adjustments in the numbers of shares specified in Article III as the Committee in its sole discretion, exercised in good faith, may determine is appropriate to reflect any transaction or event described in this Article XI; provided, however, that any such adjustment to a Stock Option intended to qualify as an Incentive Stock Option shall be made only if and to the extent such adjustment would not cause such Stock Option to fail to so qualify. Notwithstanding the foregoing, no adjustment shall be required pursuant to this Article XI if such action would cause an award to fail to satisfy the conditions of any applicable exception from the requirements of Article 409A of the Code or otherwise could subject a Participant to the additional tax imposed under Article 409A of the Code with respect to an outstanding award.
ARTICLE XII
Administration of the Plan
Section 12.1Committee Authority. The Plan shall be administered by the Committee. The Committee shall have all of the powers necessary to enable it to properly carry out its duties under the Plan. Not in limitation of the foregoing, the Committee shall have the power to construe and interpret the Plan and to determine all questions that shall arise thereunder and to make all other determinations necessary or advisable for the administration of the Plan. The Committee shall have such other and further specified duties, powers, authority and discretion as are elsewhere in the Plan either expressly or by necessary implication conferred upon it. The Committee may appoint such agents, who need not be members of the Committee, as it may deem necessary for the effective performance of its duties, and may delegate to such agents such powers and duties as the Committee may deem expedient or appropriate that are not inconsistent with the intent of the Plan to the fullest extent permitted under Delaware General Corporation Law (“DGCL”) Section 157 (or any successor provisions thereto) and related applicable DGCL Sections. The decision of the Committee or any agent of the Committee upon all matters within the scope of its authority shall be final and conclusive on all persons.
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Section 12.2Indemnification. No member of the Board, the Committee or any employee of the Company (each such person, an “Indemnified Person”) shall be liable for any action taken or omitted to be taken or any determination made in good faith with respect to the Plan or any award hereunder. Each Indemnified Person shall be indemnified and held harmless by the Company against and from (a) any loss, cost, liability or expense (including attorneys’ fees) that may be imposed upon or incurred by such Indemnified Person in connection with or resulting from any action, suit or proceeding to which such Indemnified Person may be a party or in which such Indemnified Person may be involved by reason of any action taken or omitted to be taken under the Plan or any Award Agreement and (b) any and all amounts paid by such Indemnified Person, with the Company’s approval, in settlement thereof, or paid by such Indemnified Person in satisfaction of any judgment in any such action, suit or proceeding against such Indemnified Person, provided that the Company shall have the right, at its own expense, to assume and defend any such action, suit or proceeding, and, once the Company gives notice of its intent to assume the defense, the Company shall have sole control over such defense with counsel of the Company’s choice. The foregoing right of indemnification shall not be available to an Indemnified Person to the extent that a court of competent jurisdiction in a final judgment or other final adjudication, in either case not subject to further appeal, determines that the acts or omissions of such Indemnified Person giving rise to the indemnification claim resulted from such Indemnified Person’s bad faith, fraud or willful criminal act or omission or that such right of indemnification is otherwise prohibited by law or by the Company’s Certificate of Incorporation or Bylaws. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which Indemnified Persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any other power that the Company may have to indemnify such Indemnified Persons or hold them harmless.
ARTICLE XIII
Amendments and Termination
Section 13.1Amendments to the Plan. Subject to any government regulation, to any requirement that must be satisfied if the Plan is intended to be a shareholder approved plan for purposes of the rules of the New York Stock Exchange or any successor exchange or quotation system on which the Common Shares may be listed or quoted, the Plan may be amended, modified or terminated by the Board or the Committee without the approval of the stockholders of the Company, except that stockholder approval shall be required for any amendment that would (a) increase the maximum number of Common Shares for which awards may be granted under the Plan or (b) change the class of employees or other individuals eligible to participate in the Plan. No modification, amendment or termination of the Plan may, without the consent of the Participant to whom any award has been granted, materially and adversely affect the rights of such Participant (or his or her transferee) under such award, unless otherwise provided by the Committee in the applicable Award Agreement. Notwithstanding the foregoing, the Company reserves the right to amend the Plan, by action of the Board or the Committee without the consent of any affected Participant, to the extent deemed necessary or appropriate for purposes of maintaining compliance with Section 409A of the Code.
Section 13.2Amendments to Awards. The Committee may waive any conditions or rights under, amend any terms of, or alter, suspend, discontinue, cancel or terminate any award
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theretofor granted, prospectively or retroactively; provided, however, that, except as set forth in the Plan, unless otherwise provided by the Committee in the applicable Award Agreement, any such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would materially and adversely impair the rights of any Participant or any holder or beneficiary of any award theretofor granted shall not to that extent be effective without the consent of the impaired Participant, holder or beneficiary. Notwithstanding the foregoing, the Company reserves the right to amend any award granted under the Plan, by action of the Board or the Committee without the consent of any affected Participant, to the extent deemed necessary or appropriate for purposes of maintaining compliance with Section 409A of the Code.
Section 13.3Prohibition of Certain Amendments and Re-Pricings. Notwithstanding any provision herein to the contrary, the repricing of Stock Options or Appreciation Rights is prohibited without prior approval of the Company’s stockholders. For this purpose, a “repricing” means any of the following (or any other action that has the same effect as any of the following): (a) changing the terms of a Stock Option or Appreciation Right to lower its Option Price or Base Price; (b) any other action that is treated as a “repricing” under generally accepted accounting principles; and (c) repurchasing for cash or canceling a Stock Option or Appreciation Right at a time when its Option Price or Base Price is greater than the Fair Market Value of the underlying Shares in exchange for another award, unless the cancellation and exchange occurs in connection with a change in capitalization or similar change under Article XI. Such cancellation and exchange would be considered a “repricing” regardless of whether it is treated as a “repricing” under generally accepted accounting principles and regardless of whether it is voluntary on the part of the Participant. Furthermore, neither the Board nor the Committee shall, without further approval of the stockholders of the Company, authorize any Stock Option grant to provide for automatic “reload” rights, the automatic grant of Stock Options to the Optionee upon the exercise of Stock Options using Shares or other equity.
Section 14.1Nontransferability. Except as otherwise specified in the applicable Award Agreement, during the Participant’s lifetime an award (and any rights and obligations thereunder) shall be exercisable only by the Participant, or, if permissible under applicable law, by the Participant’s legal guardian or representative, and no award (or any rights and obligations thereunder) may be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by a Participant otherwise than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company; provided, that (a) the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance and (b) the Board or the Committee may permit further transferability, on a general or specific basis, and may impose conditions and limitations on any permitted transferability; provided, however, that (i) Incentive Stock Options granted under the Plan shall not be transferable in any way that would violate Section 1.422-2(a)(2) of the Treasury Regulations and (ii) in no event may a Stock Option or Appreciation Right be transferred for consideration. All terms and conditions of the Plan and all Award Agreements shall be binding upon any permitted successors and assigns.
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Section 14.2No Rights to Awards. No Participant or other person shall have any claim to be granted any award, and there is no obligation for uniformity of treatment of Participants or holders or beneficiaries of awards. The terms and conditions of awards and the Committee’s determinations and interpretations with respect thereto need not be the same with respect to each Participant and may be made selectively among Participants, whether or not such Participants are similarly situated.
Section 14.3Share Certificates. All certificates for Common Shares or other securities of the Company delivered under the Plan pursuant to any award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan, the applicable Award Agreement or the rules, regulations and other requirements of the Securities and Exchange Commission, the New York Stock Exchange or any other stock exchange or quotation system upon which such Common Shares or other securities are then listed or reported and any applicable federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. Notwithstanding any other provision of this Plan to the contrary, the Company may elect to satisfy any requirement under this Plan for the delivery of stock certificates through the use of book-entry.
Section 14.4Withholding. A Participant may be required to pay to the Company, and the Company has the right and is hereby authorized to withhold from any award, from any payment due or transfer made under any award or under the Plan or from any compensation or other amount owing to a Participant, the amount (in cash, Common Shares, other securities, other awards or other property) of any applicable withholding taxes in respect of an award, its exercise or any payment or transfer under an award or under the Plan and to take such other action as may be necessary in the opinion of the Committee or the Company to satisfy all obligations for the payment of such taxes. If Common Share withholding is applied, to the extent necessary to avoid adverse accounting consequences, the Company will withhold Common Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax which could be imposed on the transaction.
Section 14.5Award Agreements. Each award hereunder shall be evidenced by an Award Agreement, which shall be delivered to the Participant and shall specify the terms and conditions of the award and any rules applicable thereto, including, but not limited to, the effect on such award of the death, Disability, Retirement or termination of employment or service of a Participant and the effect, if any, of such other events as may be determined by the Committee.
Section 14.6No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall prevent the Company from adopting or continuing in effect other compensation arrangements, which may, but need not, provide for the grant of options, restricted stock, shares and other types of equity-based awards (subject to stockholder approval if such approval is required), and such arrangements may be either generally applicable or applicable only in specific cases.
Section 14.7No Right to Employment. The grant of an award shall not be construed as giving a Participant the right to be retained as a director, officer, employee or consultant of or to the Company, nor shall it be construed as giving a Participant any rights to continued service
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on the Board. Further, the Company may at any time dismiss a Participant from employment or discontinue any consulting relationship, free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan or in any Award Agreement.
Section 14.8No Rights as Stockholder. No Participant or holder or beneficiary of any award has any rights as a stockholder with respect to any Common Shares to be distributed under the Plan until he or she has become the holder of such Common Shares. In connection with each grant of Restricted Shares, except as provided in the applicable Award Agreement, the Participant shall be entitled to the rights of a stockholder in respect of such Restricted Shares. Except as otherwise provided in Article XI, Section 13.2 or the applicable Award Agreement, no adjustments shall be made for dividends or distributions on (whether ordinary or extraordinary, and whether in cash, Common Shares, other securities or other property), or other events relating to, Common Shares subject to an award for which the record date is prior to the date such Shares are delivered.
Section 14.9Governing Law. The validity, construction and effect of the Plan and any rules and regulations relating to the Plan and any Award Agreement shall be determined in accordance with the laws of the State of Delaware, without giving effect to the conflict of laws provisions thereof.
Section 14.10Severability. If any provision of the Plan or any award is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or as to any person or award, or would disqualify the Plan or any award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the award, such provision shall be construed or deemed stricken as to such jurisdiction, person or award and the remainder of the Plan and any such award shall remain in full force and effect.
Section 14.11Other Laws. The Committee may refuse to issue or transfer any Common Shares or other consideration under an award if, acting in its sole and plenary discretion, it determines that the issuance or transfer of such Common Shares or such other consideration might violate any applicable law or regulation or entitle the Company to recover the same under Section 16(b) of the Exchange Act, and any payment tendered to the Company by a Participant, other holder or beneficiary in connection with the exercise of such award shall be promptly refunded to the relevant Participant, holder or beneficiary. Without limiting the generality of the foregoing, no award granted hereunder shall be construed as an offer to sell securities of the Company, and no such offer shall be outstanding, unless and until the Committee in its sole and plenary discretion has determined that any such offer, if made, would be in compliance with all applicable requirements of the federal and any other applicable securities laws.
Section 14.12No Trust or Fund Created. Neither the Plan nor any award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company, on one hand, and a Participant or any other person, on the other hand. To the extent that any person acquires a right to receive payments from the Company pursuant to an
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Award, such right shall be no greater than the right of any unsecured general creditor of the Company.
Section 14.13No Fractional Shares. No fractional Common Shares shall be issued or delivered pursuant to the Plan or any award, and the Committee shall determine whether cash, other securities or other property shall be paid or transferred in lieu of any fractional Common Shares or whether such fractional Common Shares or any rights thereto shall be canceled, terminated or otherwise eliminated.
Section 14.14Requirement of Consent and Notification of Election Under Section 83(b) of the Code or Similar Provision. No election under Section 83(b) of the Code (to include in gross income in the year of transfer the amounts specified in Section 83(b) of the Code) or under a similar provision of law may be made unless expressly permitted by the terms of the applicable Award Agreement or by action of the Committee in writing prior to the making of such election. If an award recipient, in connection with the acquisition of Shares under the Plan or otherwise, is expressly permitted under the terms of the applicable Award Agreement or by such Committee action to make such an election and the Participant makes the election, the Participant shall notify the Committee of such election within ten days of filing notice of the election with the Internal Revenue Service or other governmental authority, in addition to any filing and notification required pursuant to regulations issued under Section 83(b) of the Code or other applicable provision.
Section 14.15Requirement of Notification Upon Disqualifying Disposition Under Section 421(b) of the Code. If any Participant makes any disposition of Common Shares delivered pursuant to the exercise of an Incentive Stock Option under the circumstances described in Section 421(b) of the Code (relating to certain disqualifying dispositions) or any successor provision of the Code, such Participant shall notify the Company of such disposition within ten (10) days of such disposition.
Section 14.16Recoupment of Awards. The Committee may require in any Award Agreement that any current or former Participant reimburse the Company for all or any portion of any award, terminate any outstanding, unexercised, unexpired or unpaid award, rescind any exercise, payment or delivery pursuant to an award or recapture any Common Shares (whether restricted or unrestricted) or proceeds from the Participant’s sale of Common Shares issued pursuant to an award to the extent required by any recoupment or clawback policy adopted by the Committee in its discretion or to comply with the requirements of any applicable laws.
Section 14.17International Employees. In order to facilitate the making of any grant or combination of grants under the Plan, the Committee may provide for such special terms for awards to Participants who are nationals of an country other than the United States of America or who are employed by the Company outside of the United States of America as the Committee may consider necessary or appropriate to accommodate differences in local law, tax policy or custom. Moreover, the Committee may approve such supplements to or amendments, restatements or alternative versions of the Plan as it may consider necessary or appropriate for such purposes, without thereby affecting the terms of the Plan as in effect for any other purpose, and the Corporate Secretary or other appropriate officer of the Company may certify any such document as having been approved and adopted in the same manner as the Plan. No such special
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terms, supplements, amendments or restatements, however, shall include any provisions that are inconsistent with the terms of the Plan as then in effect unless the Plan could have been amended to eliminate such inconsistency without further approval by the stockholders of the Company.
Section 14.18Compliance with Code Section 409A.
(a)The Plan is intended to comply with Section 409A of the Code. Notwithstanding any provision of the Plan to the contrary, the Plan shall be interpreted, operated and administered consistent with this intent. For each award intended to comply with the short-term deferral exception provided for under Section 409A of the Code, the related Award Agreement shall provide that such award shall be paid out by the later of (a) the 15th day of the third month following the Participant’s first taxable year in which the award is no longer subject to a substantial risk of forfeiture or (b) the 15th day of the third month following the end of the Company’s first taxable year in which the award is no longer subject to a substantial risk of forfeiture. To the extent that the Committee determines that a Participant would be subject to the additional 20% tax imposed on certain deferred compensation arrangements pursuant to Section 409A of the Code as a result of any provision of any award, to the extent permitted by Section 409A of the Code, such provision shall be deemed amended to the minimum extent necessary to avoid application of such additional tax. The Committee shall determine the nature and scope of such amendment. To the extent required by Section 409A of the Code, any payment under the Plan made in connection with the separation from service of a “specified employee” (within the meaning of Section 409A of the Code) of an award that is deferred compensation that is subject to Section 409A of the Code shall not be made earlier than six (6) months after the date of such separation from service.
(b)If an award under the Plan is subject to Section 409A of the Code and a Change in Control is a payment event for the award under Section 409A of the Code, then for purposes of determining whether a payment event has occurred with respect to the award, a Change in Control will not be deemed to have occurred unless it also constitutes a “change in the ownership or effective control” of the Company as defined in Section 409A of the Code.
Section 14.19Limited Effect of Restatement. This instrument amends and restates the Plan effective as of the Effective Date. Nothing in this instrument shall in any way change, alter or affect the terms of any award made under the Plan prior to the Effective Date or the time or amount of any Plan benefit or payment due with respect to awards made under the Plan prior to such date.
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ARTICLE XV
Duration of the Plan
No awards shall be made under the Plan after February 16, 2030, but all awards made on or prior to such date shall continue in effect thereafter subject to the terms thereof and of the Plan.
IN WITNESS WHEREOF, the undersigned authorized officer of the Company has executed this instrument on behalf of the Company as of the 21st day of February, 2022.
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NUCOR CORPORATION |
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/s/ James D. Frias |
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James D. Frias |
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Chief Financial Officer, Treasurer and |
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Executive Vice President |
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APPENDIX A
NUCOR CORPORATION
SENIOR OFFICERS ANNUAL INCENTIVE PLAN
as amended and restated effective February 21, 2022
SENIOR OFFICERS ANNUAL INCENTIVE PLAN
Table of Contents
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ARTICLE I INTRODUCTION |
1 |
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ARTICLE II DEFINITIONS |
1 |
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Adjusted Net Earnings |
1 |
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Average Invested Capital |
1 |
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Average Stockholders’ Equity |
1 |
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Beneficiary |
1 |
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Change in Control Acceleration Event |
1 |
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Compensation |
1 |
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Deferral Account |
2 |
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Deferral Agreement |
2 |
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Deferral Amount |
2 |
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Deferral Incentive |
2 |
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Eligible Employee |
2 |
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Employee |
2 |
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Peer Group |
2 |
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Performance Award |
2 |
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Performance Objectives |
2 |
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Performance Period |
3 |
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Plan |
3 |
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Return on Average Invested Capital |
3 |
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Return on Average Stockholders’ Equity |
3 |
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Separation from Service |
3 |
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Stockholders’ Equity |
3 |
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ARTICLE III PERFORMANCE AWARDS |
4 |
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3.1 |
Performance Awards |
4 |
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3.2 |
Performance Award Payments |
5 |
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3.3 |
Deferrals of Performance Awards |
5 |
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ARTICLE IV MISCELLANEOUS |
8 |
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4.1 |
Amendment or Termination |
8 |
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4.2 |
Code Section 409A |
9 |
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4.3 |
Special Provisions for Certain Eligible Employees |
9 |
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4.4 |
Limited Effect of Restatement |
9 |
NUCOR CORPORATION
SENIOR OFFICERS ANNUAL INCENTIVE PLAN
This Plan constitutes a supplement to the Nucor Corporation 2014 Omnibus Incentive Compensation Plan (the “Omnibus Plan”) and sets for the terms and provisions applicable to annual incentive compensation that may be earned by the Company’s senior officers. The terms and provisions of the Omnibus Plan, including its definitions, are incorporated into this Plan by reference. In the event of any conflict or inconsistency between the Plan and this Plan, the terms and provisions of the Omnibus Plan shall govern and control.
As used herein, the following words and phrases shall have meanings set forth below unless the context clearly indicates otherwise:
Adjusted Net Earnings for a Performance Period means the consolidated net earnings attributable to stockholders reported by the Company for the Performance Period in accordance with generally accepted accounting principles, before reported extraordinary items, but after charges or credits for taxes measured by income and Performance Awards under this Plan and performance awards under the Nucor Corporation Senior Officers Long-Term Incentive Plan.
Average Invested Capital for a Performance Period means the average of the Invested Capital of the Company as of the last day of the immediately preceding Performance Period and the last day of each fiscal quarter in the Performance Period.
Average Stockholders’ Equity for a Performance Period means the average of the Stockholders’ Equity of the Company as of the last day of the immediately preceding Performance Period and the last day of each month in the Performance Period.
Beneficiary means the person or persons designated by an Eligible Employee who are to receive any amounts payable under the Plan following the death of the Eligible Employee.
Change in Control Acceleration Event means a Change in Control that also constitutes a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company under Section 409A of the Code.
Compensation for a Performance Period means the base salary earned by the Eligible Employee during that portion of the Performance Period the Eligible Employee was employed by the Company and participating in the Plan, before reduction pursuant to any plan or agreement between the Eligible Employee and the Company or any Subsidiary whereby base salary is deferred, including, without limitation, a plan whereby compensation is deferred in accordance with Code Section 401(k) or reduced in accordance with Code Section 125. Compensation shall not include any other form of compensation, whether taxable or non-taxable,
including, but not limited to, annual or long-term incentive compensation, commissions, gains from the exercise or vesting of stock options, restricted stock or other equity-based awards or any other forms of additional compensation.
Deferral Account means the individual bookkeeping account maintained by the Company for an Eligible Employee to record the Eligible Employee’s Deferral Amounts and Deferral Incentive credits under this Plan and any amounts previously deferred under the substantially similar provisions of the predecessors to this Plan.
Deferral Agreement means the agreement or agreements entered into by an Eligible Employee which specify the Eligible Employee’s Deferral Amount.
Deferral Amount means the amount of a Performance Award that an Eligible Employee elects to defer under a Deferral Agreement.
Deferral Incentive means the incentive amount the Company will credit to an Eligible Employee’s Deferral Account pursuant to Section 3.3(b) based on the Eligible Employee’s Deferral Amount.
Eligible Employee means any Employee who is a senior officer of the Company or a Subsidiary and designated by the Committee as an Eligible Employee.
Employee means any person who is employed by the Company, including any such person who also serves as a member of the Board.
Peer Group for a Performance Period means a group of not less than five (5) steel industry competitors (or such other minimum number as may be selected by the Committee) designated by the Committee not later than ninety (90) days after the beginning of the Performance Period.
Performance Award means the incentive compensation awarded and payable to an Eligible Employee pursuant to Section 3.1 for a Performance Period.
Performance Objectives means the achievement of one or more of the following criteria, or such other criteria, as may be determined by the Committee: (a) Return on Average Stockholders’ Equity; (b) Return on Average Invested Capital; (c) revenue performance; (d) earnings before interest, taxes, depreciation and amortization; (e) earnings before interest, taxes and amortization; (f) operating income; (g) pre- or after-tax income; (h) cash flow; (i) cash flow per share; (j) net earnings attributable to stockholders; (k) earnings per share; (l) return on invested capital; (m) return on assets; (n) economic value added (or an equivalent metric); (o) stock price performance; (p) total stockholder return; (q) improvement in or attainment of expense levels; (r) improvement in or attainment of working capital levels; or (s) debt reduction. Any of the Performance Objectives set forth above may measure performance on a Company-wide basis or with respect to one or more business units, divisions or Subsidiaries, and either in absolute terms, relative to the performance of one or more similarly situated companies, relative to the performance of an index covering a peer group of companies, relative to the performance of a group of designated companies, or other external measures of the selected Performance Objective.
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Performance Period means the fiscal year of the Company beginning on January 1 and ending on December 31.
Plan , as used in this Appendix A, means the Nucor Corporation Senior Officers Annual Incentive Plan, as set forth herein and as amended from time to time.
Return on Average Invested Capital for a Performance Period means an amount, expressed as a percentage, determined by dividing (a) the Company’s Adjusted Net Earnings for the Performance Period by (b) the Company’s Average Invested Capital for the Performance Period.
Return on Average Stockholders’ Equity means an amount, expressed as a percentage, determined by dividing (a) the Company’s Adjusted Net Earnings for the Performance Period by (b) the Company’s Average Stockholders’ Equity for the Performance Period.
Separation from Service means the termination of an Eligible Employee’s employment with the Company, provided such termination also constitutes a separation from service under Section 409A of the Code.
Stockholders’ Equity means the sum of (a) issued capital stock, (b) additional paid-in capital and (c) earnings retained in the business and reserves created by appropriations therefrom, minus the cost of treasury stock, all as shown in the Company’s consolidated balance sheet.
3.1Performance Awards.
(a)Performance Objectives. Performance Awards shall be earned under the Plan for a Performance Period based on the level of the Company’s achievement of Performance Objectives selected by the Committee.
(b)Performance Objectives Adjustments; Reduction or Forfeiture of Performance Awards. Notwithstanding the foregoing provisions of this Section 3.1:
(i)The Committee may adjust, modify or amend the Performance Objectives, either in establishing the criteria or in determining the extent to which any Performance Objectives has been achieved. In particular, the Committee shall have the discretionary authority to make equitable adjustments to the Performance Objectives where necessary (A) in response to any reduction in the number of members of the Peer Group that may occur during a Performance Period, (B) in response to changes in applicable laws or regulations, (C) to account for items of gain, loss or expense that are related to the disposal (or acquisition) of a business or change in accounting principles that was not anticipated, (D) to account for unusual or non-recurring transactions that were not anticipated, or (E) to reflect other unusual, non-recurring or unexpected items similar in nature to the foregoing as determined in good faith by the Committee.
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Any such adjustments may be made with respect to the performance of any Subsidiary, division or operating unit, as applicable, and shall be made in a consistent manner for year-to-year.
(ii)If the Company has no reported net earnings for a Performance Period that ends prior to a Change in Control, no Performance Awards will be made with respect to the Performance Period.
(iii)The Committee in its sole and exclusive discretion may reduce (including a reduction to zero) the amount of the Performance Awards otherwise payable to Eligible Employees under the Plan for a Performance Period that ends prior to a Change in Control, provided the same percentage reduction is made to all of the Performance Awards otherwise payable for the Performance Period.
(iv)If an Eligible Employee ceases to be a senior officer of the Company or a Subsidiary during a Performance Period (but remains an Employee), the Employee’s Performance Award for the Performance Period shall be prorated for the portion of the Performance Period the Employee was employed as an Eligible Employee during the Performance Period, and if the Employee has not attained age fifty-five (55) prior to the date the Employee ceased to be a senior officer of the Company or a Subsidiary, the Employee shall not be eligible to receive the deferral incentive described in Section 3.3(b) with respect to any portion of the prorated Performance Award deferred under Section 3.3.
(v)If the employment of an Eligible Employee is terminated during a Performance Period prior to the Eligible Employee’s attainment of age fifty-five (55) for any reason other than the Eligible Employee’s death or disability, the Eligible Employee shall not receive any Performance Award under the Plan for the Performance Period.
(c)Performance Awards Following a Change in Control. The Plan, and all Performance Periods then in progress, shall terminate upon a Change in Control. The Performance Award due for the Performance Period ending upon a Change in Control shall be equal to the amount determined by multiplying the greater of:
(i)the Performance Award for the Performance Period but calculated under Section 3.1(a) based on the Company’s achievement of the Performance Objectives for the Performance Period through the end of the calendar quarter immediately preceding the date of the Change in Control; or
(ii)the Eligible Employee’s target Performance Award for the Performance Period;
by a fraction, the numerator of which is the number of days during the Performance Period prior to the date of the Change in Control during which the Eligible Employee was employed by the Company and participating in the Plan, and the denominator of which is (A) three hundred sixty-five (365), if the Eligible Employee was employed by the
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Company and participating in the Plan as of the first day of the Performance Period or (B) if the Eligible Employee commenced participation in the Plan after the beginning of the Performance Period, the number of days from the date the Eligible Employee commenced participation in the Plan through the last day of the Performance Period.
3.2Performance Award Payments.
Subject to an Eligible Employee’s election in accordance with Section 3.3 to defer the payment of a Performance Award, an Eligible Employee’s Performance Award shall be paid by the Company to the Eligible Employee in cash, less applicable payroll and withholding taxes, within thirty (30) days after the later of (i) the completion of the independent audit of the Company’s financial statements for the Performance Period or (ii) the date the Committee certifies in writing the amount of Performance Awards payable under Section 3.1. In no event, however, shall payment of a Performance Award be made later than two and one-half (2½) months after the end of the Performance Period for the Performance Award. Notwithstanding the foregoing, all Performance Awards for the Performance Period ending upon a Change in Control shall be paid in cash within sixty (60) days after the Change in Control.
3.3Deferrals of Performance Awards.
(a)Deferral Agreement. Each Eligible Employee may elect, by entering into a Deferral Agreement with the Company, to defer any portion up to fifty percent (50%) (in increments of ten percent (10%)) of the Performance Award otherwise payable to the Eligible Employee for a Performance Period. To be effective to defer the payment of a Performance Award, an Eligible Employee must complete and return a Deferral Agreement to the Company in accordance with procedures established by the Committee before the beginning of the Performance Period. For the avoidance of doubt, an Employee who first becomes an Eligible Employee during a Performance Period shall not be permitted to enter into a Deferral Agreement for the deferral of a Performance Award for such Performance Period. The amount of any Performance Award that is deferred pursuant to the Eligible Employee’s Deferral Agreement is referred to in the Plan as the Deferral Amount.
An Eligible Employee’s Deferral Agreement shall be effective for one Performance Period. An Eligible Employee must complete and sign a Deferral Agreement and return the agreement to the representative of the Company designated by the Committee before the beginning of each Performance Period for which a deferral of a Performance Award is intended to be made.
(b)Deferral Accounts; Deferral Incentive. An Eligible Employee’s Deferral Amount shall be converted to a number of common stock units determined by dividing the Deferral Amount by the closing price at which shares of the Company’s common stock are sold regular way on the New York Stock Exchange on the first trading day immediately preceding the date the Deferral Amount would otherwise be paid to the Eligible Employee. Such common stock units shall be credited to a Deferral Account established and maintained on the books and records of the Company. In the event an Eligible Employee defers a Performance Award under the Plan, the Company shall credit
5
a Deferral Incentive in the form of additional common stock units to the Eligible Employee’s Deferral Account. The number of common stock units comprising the Deferral Incentive for an Eligible Employee shall be determined by multiplying twenty-five percent (25%) by the number of common stock units resulting from the conversion of the Eligible Employee’s Deferral Amount into common stock units.
(c)Dividend Equivalent Payments; Adjustments to Common Stock Units. The Company shall pay to each Eligible Employee in cash, less applicable payroll and withholding taxes, within thirty (30) days after the payment date of any cash dividend with respect to shares of the Company’s common stock, a dividend equivalent payment equal to the number of common stock units credited to the Eligible Employee’s Deferral Account as of the record date for such dividend multiplied by the per share amount of the dividend.
In the event a dividend with respect to shares of the Company’s common stock shall be declared and paid in additional shares or in the event the outstanding shares of the Company’s common stock shall be changed into or exchanged for a different number or kind of shares of stock or other securities of the Company or of another corporation or changed into or exchanged for cash or property or the right to receive cash or property, then the Committee shall in its discretion equitably adjust the common stock units credited to the Deferral Accounts under the Plan to prevent substantial dilution or enlargement of the rights of Eligible Employees under the Plan.
(d)Vesting. An Eligible Employee shall be fully vested in the portion of the Eligible Employee’s Deferral Account attributable to the Eligible Employee’s Deferral Amounts. An Eligible Employee shall become fully vested in the portion of the Eligible Employee’s Deferral Account attributable to the Company’s Deferral Incentives upon the earliest of (i) attainment of age fifty-five (55) while employed by the Company or a Subsidiary, (ii) the date the Eligible Employee dies or becomes disabled while employed by the Company or a Subsidiary, or (iii) a Change in Control. In the event an Eligible Employee terminates employment prior to a Change in Control and prior to attaining age fifty-five (55) for any reason other than death or disability, the portion of the Eligible Employee’s Deferral Account that is not vested shall be forfeited.
(e)Payment of Deferral Accounts. Subject to Section 4.6, the vested portion of an Eligible Employee’s Deferral Account shall be paid to the Eligible Employee no earlier than fifteen (15) days and no later than ninety (90) days after the Eligible Employee’s Separation from Service. The form of payment shall be one share of the Company’s common stock for each common stock unit and cash for any fractional unit credited to the vested portion of the Deferral Account.
In accordance with procedures established by the Committee, but in no event later than the date an Eligible Employee enters into his or her first Deferral Agreement with the Company under the Plan, the Eligible Employee may elect a single sum payment of the Eligible Employee’s Deferral Account or payment in installments over a term certain of not more than five (5) years. In the event an Eligible Employee fails to make a valid method of payment election, the Eligible Employee shall be deemed to have elected
6
payment of the Eligible Employee’s Deferral Account in a single sum payment of shares of Company common stock and cash for any fractional unit credited to the vested portion of the Deferral Account. Subject to the immediately succeeding paragraph, an Eligible Employee’s method of payment election shall be irrevocable and remain in effect for all Deferral Amounts and Deferral Incentives credited to the Eligible Employee’s Deferral Account for all Performance Periods beginning after the date the election is made.
Notwithstanding the immediately preceding paragraph, each Eligible Employee who made a method of payment election prior to January 1, 2019 may make a new payment election during the period beginning November 1, 2019 and ending December 31, 2019, and if an Eligible Employee makes a new payment election, the new payment election shall be irrevocable and remain in effect for all Deferral Amounts and Deferral Incentives credited to the Eligible Employee’s Deferral Account for all Performance Periods beginning on and after January 1, 2020.
(f)Cancellation of Deferral Agreements and Payment Elections upon Change in Control Acceleration Event. Notwithstanding the foregoing provisions of this Section 3.3, upon a Change in Control Acceleration Event, (i) an Eligible Employee’s Deferral Agreement shall be terminated and no portion of the Performance Award due for the Performance Period in which the Change in Control Acceleration Event occurs shall be deferred, (ii) any payment election made by an Eligible Employee under Section 3.3(e) shall be null and void, and (iii) subject to Section 4.2, the value of the Eligible Employee’s Deferral Account shall be paid to the Eligible Employee in a single cash payment, less applicable withholding taxes, within sixty (60) days following the Change in Control Acceleration Event (the “CIC Payment Date”). The value of an Eligible Employees’ Deferral Account for purposes of clause (iii) of the immediately preceding sentence shall be equal to the number of common stock units credited to the Eligible Employee’s Deferral Account as of the date of the Change in Control Acceleration Event multiplied by the closing price at which shares of the Company’s stock are sold regular way on the New York Stock Exchange on the last trading day prior to the date of the Change in Control Acceleration Event. In the event payment to an Eligible Employee is delayed beyond the CIC Payment Date due to the requirements of Section 4.2, the amount due to such Eligible Employee as of the CIC Payment Date shall be increased with interest at the prime rate, as published in The Wall Street Journal, plus 1% per annum, from the CIC Payment Date to the date the Eligible Employee receives payment of the amount due.
(g)Payment Following Death. An Eligible Employee may designate and change at any time the Beneficiary who is to receive distribution of the vested portion of the Eligible Employee’s Deferral Account in the event of the Eligible Employee’s death. Any such designation or change shall not be effective until received by the representative of the Company designated by the Committee. If an Eligible Employee has not properly designated a Beneficiary, if for any reason such designation shall not be legally effective, or if the designated Beneficiary shall predecease the Eligible Employee, then the Eligible Employee’s estate shall be treated as the Beneficiary.
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In the event of an Eligible Employee’s death prior to distribution of all common stock units credited to the Eligible Employee’s Deferral Account, the Eligible Employee’s Beneficiary shall receive a distribution of the vested portion of such units (in the form of shares of Company common stock and cash for any fractional unit credited to the Deferral Account) as soon as practicable (but in no event later than ninety (90) days) following the Eligible Employee’s death in a single sum payment.
4.1Amendment or Termination.
The Plan may be terminated or amended in any respect by resolution adopted by a majority of the Board, unless a Change in Control has previously occurred. If a Change in Control occurs, the Plan shall not be subject to amendment, change, substitution, deletion, revocation or termination in any respect which adversely affects the rights of Eligible Employees with respect to any Performance Period that began before the date of the Change in Control.
4.2Code Section 409A.
Notwithstanding anything in the Plan to the contrary, if any amount or benefit that the Company determines would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable under this Plan by reason of an Eligible Employee’s Separation from Service, then to the extent necessary to comply with Code Section 409A:
(a)if the payment or distribution is payable in a lump sum, the Eligible Employee’s right to receive payment or distribution of such non-exempt deferred compensation will be delayed until the earlier of the Eligible Employee’s death or the seventh month following the Eligible Employee’s Separation from Service; and
(b)if the payment or distribution is payable over time, the amount of such non-exempt deferred compensation that would otherwise be payable during the six (6) month period immediately following the Eligible Employee’s Separation from Service will be accumulated and the Eligible Employee’s right to receive payment or distribution of such accumulated amount will be delayed until the earlier of the Eligible Employee’s death or the seventh month following the Eligible Employee’s Separation from Service and paid on the earlier of such dates, without interest, and the normal payment or distribution schedule for any remaining payments or distributions will commence.
4.3Special Provisions for Certain Eligible Employees.
All Performance Awards for Eligible Employees subject to Section 16(b) of the Securities Exchange Act of 1934 shall be deemed to include any such additional terms, conditions, limitations and provisions as Rule 16b-3 requires.
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4.4Limited Effect of Restatement.
This instrument amends and restates the Plan effective for Performance Periods beginning after the Effective Date. Nothing in this instrument shall in any way change, alter or affect the terms of any Performance Award or the time, amount or payment due with respect to any Performance Award earned under the Plan for any Performance Period that began prior to the Effective Date.
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APPENDIX B
NUCOR CORPORATION
SENIOR OFFICERS LONG-TERM INCENTIVE PLAN
as amended and restated effective February 21, 2022
NUCOR CORPORATION
SENIOR OFFICERS LONG-TERM INCENTIVE PLAN
Table of Contents
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ARTICLE I INTRODUCTION |
1 |
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ARTICLE II DEFINITIONS |
1 |
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Adjusted Net Earnings |
1 |
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Average Invested Capital |
1 |
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Beneficiary |
1 |
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Change in Control Accleration Event |
1 |
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Compensation |
1 |
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Deferral Account |
2 |
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Deferral Agreement |
2 |
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Eligible Employee |
2 |
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Employee |
2 |
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General Industry Group |
2 |
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Invested Capital |
2 |
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Performance Award |
2 |
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Performance Objectives |
2 |
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Performance Period |
3 |
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Plan |
3 |
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Restricted Stock Performance Award |
3 |
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Return on Average Invested Capital |
3 |
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Separation from Service |
3 |
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Steel Peer Group |
3 |
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Target Performance Award |
3 |
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ARTICLE III PERFORMANCE AWARDS |
4 |
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3.1 |
Performance Awards |
4 |
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3.2 |
Performance Award Payments |
7 |
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3.3 |
Deferrals of Restricted Stock Performance Awards |
8 |
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ARTICLE IV MISCELLANEOUS |
10 |
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4.1 |
Amendment or Termination |
10 |
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4.2 |
Code Section 409A |
10 |
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4.3 |
Local Law Adjustments; Sub-Plans |
11 |
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4.4 |
Special Provisions for Certain Eligible Employees |
11 |
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4.5 |
Limited Effect of Restatement |
11 |
NUCOR CORPORATION
SENIOR OFFICERS LONG-TERM INCENTIVE PLAN
This Plan constitutes a supplement to the Nucor Corporation 2014 Omnibus Incentive Compensation Plan (the “Omnibus Plan”) and sets for the terms and provisions applicable to annual incentive compensation that may be earned by the Company’s senior officers. The terms and provisions of the Omnibus Plan, including its definitions, are incorporated into this Plan by reference. In the event of any conflict or inconsistency between the Plan and this Plan, the terms and provisions of the Omnibus Plan shall govern and control.
As used herein, the following words and phrases shall have meanings set forth below unless the context clearly indicates otherwise:
Adjusted Net Earnings for a Performance Period means the consolidated net earnings attributable to stockholders reported by the Company for the Performance Period in accordance with generally accepted accounting principles, before reported extraordinary items, but after charges or credits for taxes measured by income and Performance Awards under this Plan and performance awards under the Nucor Corporation Senior Officers Annual Incentive Plan.
Average Invested Capital for a Performance Period means the average of the Invested Capital of the Company as of the last day of the immediately preceding Performance Period and the last day of each fiscal quarter in the Performance Period.
Beneficiary means the person or persons designated by an Eligible Employee who are to receive any amounts payable under the Plan following the death of the Eligible Employee.
Change in Control Acceleration Event means a Change in Control that also constitutes a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company under Section 409A of the Code.
Compensation for a Performance Period means the annual base salary rate payable to an Eligible Employee as of the beginning of a Performance Period (or, if later, the date the Eligible Employee commences participation in the Plan), before reduction pursuant to any plan or agreement between the Eligible Employee and the Company or any Subsidiary whereby compensation is deferred, including, without limitation, a plan whereby compensation is deferred in accordance with Code Section 401(k) or reduced in accordance with Code Section 125. Compensation shall not include any other form of compensation, whether taxable or non-taxable, including, but not limited to, annual or long-term incentive compensation, commissions, gains from the exercise or vesting of stock options, restricted stock or other equity-based awards or any other forms of additional compensation.
Deferral Account means the individual bookkeeping account maintained by the Company for an Eligible Employee to record the deferral of the Eligible Employee’s Restricted Stock Performance Awards and any restricted stock awards previously deferred under the substantially similar provisions of the predecessors to this Plan.
Deferral Agreement means the agreement or agreements entered into by an Eligible Employee which provide for the deferral of the Eligible Employee’s Restricted Stock Performance Award for a Performance Period.
Eligible Employee means any Employee who is a senior officer of the Company or a Subsidiary and designated by the Committee as an Eligible Employee.
Employee. Employee means any person who is employed by the Company, including any such person who also serves as a member of the Board.
General Industry Group for a Performance Period means a group of not less than ten (10) companies designated by the Committee not later than ninety (90) days after the beginning of the Performance Period which are engaged in capital intensive industries and classified in either the Materials Sector or the Industrials Sector of the Global Industry Classification Standard.
Invested Capital means the sum of (a) long-term debt (comprising bonds, debentures and promissory notes having a maturity at the time of execution of more than one (1) year), (b) issued capital stock, (c) additional paid-in capital and (d) earnings retained in the business and reserves created by appropriations therefrom, minus the cost of treasury stock, all as shown in the Company’s consolidated balance sheet.
Performance Award means the incentive compensation awarded and payable to an Eligible Employee pursuant to Section 3.1 for a Performance Period.
Performance Objectives means the achievement of one or more of the following criteria, or such other criteria, as may be determined by the Committee: (a) Return on Average Invested Capital; (b) revenue performance; (c) earnings before interest, taxes, depreciation and amortization; (d) earnings before interest, taxes and amortization; (e) operating income; (f) pre- or after-tax income; (g) cash flow; (h) cash flow per share; (i) net earnings attributable to stockholders; (j) earnings per share; (k) return on invested capital; (l) return on assets; (m) economic value added (or an equivalent metric); (n) stock price performance; (o) total stockholder return; (p) improvement in or attainment of expense levels; (q) improvement in or attainment of working capital levels; or (r) debt reduction. Any of the Performance Objectives set forth above may measure performance on a Company-wide basis or with respect to one or more business units, divisions or Subsidiaries, and either in absolute terms, relative to the performance of one or more similarly situated companies, relative to the performance of an index covering a peer group of companies, relative to the performance of a group of designated companies, or other external measures of the selected Performance Objective.
Performance Period means:
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(a)the one (1) fiscal year period commencing on the January 1 coinciding with or immediately preceding the date an Eligible Employee commences participation in the Plan and ending on the immediately succeeding December 31;
(b)the two (2) fiscal year period commencing on the January 1 coinciding with or immediately preceding the date an Eligible Employee commences participation in the Plan and ending on December 31 of the immediately succeeding fiscal year; and
(c)each period of three (3) consecutive fiscal years of the Company commencing on the January 1 coinciding with or immediately preceding the date an Eligible Employee commences participation in the Plan and on each January 1 thereafter.
Plan,as used in this Appendix B, means the Nucor Corporation Senior Officers Long-Term Incentive Plan, as set forth herein and as amended from time to time.
Restricted Stock Performance Award is defined in Section 4.2.
Return on Average Invested Capital for a Performance Period means an amount, expressed as a percentage, determined by dividing (a) the Company’s Adjusted Net Earnings for the Performance Period by (b) the Company’s Average Invested Capital for the Performance Period.
Separation from Service means the termination of an Eligible Employee’s employment with the Company, provided such termination also constitutes a separation from service under Section 409A of the Code.
Steel Peer Group for a Performance Period means a group of not less than five (5) steel industry competitors (or such other minimum number as may be selected by the Committee) designated by the Committee not later than ninety (90) days after the beginning of the Performance Period.
Target Performance Award for an Eligible Employee for a Performance Period means that number of shares of the Company’s common stock determined by dividing (a) the target award percentage of the Eligible Employee’s Compensation set by the Committee for the Performance Period by (b) the closing price at which shares of the Company’s common stock are sold regular way on the New York Stock Exchange on the last trading day immediately preceding the beginning of the Performance Period. The Target Performance Award shall not be rounded up or down to a whole number of shares.
Notwithstanding the foregoing, in the event (i) an Eligible Employee commences participation in the Plan effective as of any day other than January 1, (ii) the employment of an Eligible Employee terminates during a Performance Period on or after the date the Eligible Employee attains age fifty-five (55) or due to the Eligible Employee’s death or disability, or (iii) an Employee ceases for any reason to be an Eligible Employee during a Performance Period on or after the date the Eligible Employee attains age fifty-five (55) (but remains an Employee), then in any of such events, the Eligible Employee’s Target Performance Award shall be adjusted by multiplying such Target Performance Award by a fraction, the numerator of which is the number of complete calendar months during the Performance Period that the Eligible Employee
3
was employed by the Company and participating in the Plan, and the denominator of which is the total number of calendar months in the Performance Period.
3.1Performance Awards.
(a)Performance Objectives. Performance Awards shall be earned under the Plan for a Performance Period based on the level of the Company’s achievement of Performance Objectives selected by the Committee. The maximum Performance Award that may be made to an Eligible Employee with respect to any Performance Period shall be two (2) times the Eligible Employee’s Target Performance Award for the Performance Period.
(b)Awards Based on Relative Return on Average Invested Capital. To the extent the Committee determines to base Performance Awards under the Plan on the Company’s relative Return on Average Invested Capital, such Performance Awards shall be determined in accordance with this Section 3.1(b).
(i)Steel Peer Group. Fifty percent (50%) of the maximum Performance Award for a Performance Period (i.e., 100% of the number of shares of the Company’s common stock comprising the Eligible Employee’s Target Performance Award for the Performance Period) shall be available for award based on the Company’s Return on Average Invested Capital for the Performance Period relative to the return on average invested capital of each company in the Steel Peer Group for the Performance Period. Not later than ninety (90) days after the beginning of each Performance Period, the Committee shall designate, in writing, the amount of the Performance Award that will be made to each Eligible Employee, expressed as a percentage of the number of shares comprising the Eligible Employee’s Target Performance Award for the Performance Period, for levels of Return on Average Invested Capital for the Performance Period when ranked against the return on average invested capital of the members of the Steel Peer Group for the Performance Period.
(ii)General Industry Group. The remaining fifty percent (50%) of the maximum Performance Award for a Performance Period (i.e., 100% of the number of shares of the Company’s common stock comprising the Eligible Employee’s Target Performance Award for the Performance Period) shall be available for award based on the Company’s Return on Average Invested Capital for the Performance Period relative to the return on average invested capital of each company in the General Industry Group for the Performance Period. Not later than ninety (90) days after the beginning of each Performance Period, the Committee shall designate, in writing, the amount of the Performance Award that will be made to each Eligible Employee, expressed as a percentage of the number of shares comprising the Eligible Employee’s Target Performance Award for the Performance Period, for levels of Return on Average Invested Capital for the
4
Performance Period when ranked against the return on average invested capital of the members of the General Industry Group for the Performance Period.
The Committee’s designation of the amount of the Performance Award for the Company’s rankings against the Steel Peer Group and the General Industry Group shall provide approximately equal progression in the amount of the award from the minimum to the maximum amount that may be awarded under Section 3.1(b). The Company’s Steel Peer Group and General Industry Group rankings shall be based on the most recent available financial information for the members of the Steel Peer Group and General Industry Group.
(c)Performance Objectives Adjustments; Reduction or Forfeiture of Performance Awards. Notwithstanding the foregoing provisions of this Section 3.1:
(i)The Committee may adjust, modify or amend the Performance Objectives, either in establishing the criteria or in determining the extent to which any Performance Objectives has been achieved. In particular, the Committee shall have the discretionary authority to make equitable adjustments to the Performance Objectives where necessary (A) in response to any reduction in the number of members of the General Industry Peer Group or Steel Peer Group that may occur during a Performance Period, (B) to account for differences in accounting principles used by members of the General Industry Peer Group or Steel Peer Group to report their financial performance, (C) in response to changes in applicable laws or regulations, (D) to account for items of gain, loss or expense that are related to the disposal (or acquisition) of a business or change in accounting principles that was not anticipated, (E) to account for unusual or non-recurring transactions that were not anticipated, or (F) to reflect other unusual, non-recurring or unexpected items similar in nature to the foregoing as determined in good faith by the Committee. Any such adjustments may be made with respect to the performance of any Subsidiary, division or operating unit, as applicable, and shall be made in a consistent manner for year-to-year.
(ii)If the Company has no reported net earnings for a Performance Period that ends prior to a Change in Control, no Performance Awards will be made with respect to the Performance Period.
(iii)The Committee in its sole and exclusive discretion may reduce (including a reduction to zero) the amount of the Performance Awards otherwise payable to Eligible Employees under the Plan for a Performance Period that ends prior to a Change in Control, provided the same percentage reduction is made to all of the Performance Awards otherwise payable for the Performance Period.
(iv)If the employment of an Eligible Employee is terminated during a Performance Period prior to the Eligible Employee’s attainment of age fifty-five (55) for any reason other than the Eligible Employee’s death or disability, the Eligible Employee shall not receive any Performance Award under the Plan for the Performance Period.
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(v)If an Employee ceases to be an Eligible Employee during a Performance Period for any reason (including due to a change in position or title) prior to the date the Eligible Employee attains age fifty-five (55), the Employee shall not receive any Performance Award under the Plan for the Performance Period.
(d)Performance Awards Following a Change in Control. Notwithstanding the foregoing provisions of this Section 3.1 or the second paragraph of the definition of Target Performance Award,
(i)the Performance Award for each Performance Period in progress when a Change in Control occurs shall be equal to the greater of (A) the Performance Award calculated based on the Company’s achievement of the Performance Objectives for the Performance Period through the end of the calendar quarter immediately preceding the Change in Control or (B) the Eligible Employee’s Target Performance Award for such Performance Period; and
(ii)if an Eligible Employee experiences a Separation from Service during any such Performance Period due to an involuntary termination of the Eligible Employee’s employment by the Company without Cause or the Eligible Employee’s resignation with Good Reason, the Eligible Employee shall be entitled to receive a Performance Award equal to the amount described in Section 3.1(d)(i) without any adjustment due to such Separation from Service, and subject to Section 4.2, such Performance Award shall be paid to the Eligible Employee in a single cash payment, less applicable withholding taxes, within sixty (60) days following the Eligible Employee’s Separation from Service. In the event payment to an Eligible Employee is delayed beyond the due date prescribed in the immediately preceding sentence due to the requirements of Section 4.2, the amount due to the Eligible Employee as of the such date shall be increased with interest at the prime rate, as published in The Wall Street Journal, plus 1% per annum, from the due date of the payment to the date the Eligible Employee receives payment of the amount due.
3.2Performance Award Payments.
(a)Time of Payments. An Eligible Employee’s Performance Award shall be paid by the Company to the Eligible Employee within thirty (30) days after the later of (i) the completion of the independent audit of the Company’s financial statements for the Performance Period or (ii) the date the Committee certifies in writing the amount of Performance Awards payable under Section 3.1. In no event, however, shall payment of a Performance Award be made later than two and one-half (2½) months after the end of the Performance Period for the Performance Award.
(b)Form of Payments Prior to a Change in Control. The value of fifty percent (50%) of the shares comprising an Eligible Employee’s Performance Award for a Performance Period ending prior to a Change in Control, determined by multiplying the number of such shares by the closing price at which shares of the Company’s common
6
stock are sold regular way on the New York Stock Exchange on the last trading day of the Performance Period, shall be paid to the Eligible Employee in cash, less applicable payroll and withholding taxes. The remaining fifty percent (50%) of the shares comprising the Eligible Employee’s Performance Award shall be rounded down to the next lower whole number of shares. Such whole number of shares shall constitute the Eligible Employee’s “Restricted Stock Performance Award” and shall be delivered to the Eligible Employee, unless the Eligible Employee makes an election in accordance with Section 3.3 to defer payment of the Restricted Stock Performance Award.
(c)Vesting of Restricted Stock Performance Awards. The Restricted Stock Performance Award shares shall become vested in the Eligible Employee (i) upon the Eligible Employee’s attainment of age fifty-five (55) while employed by the Company, (ii) in the event the Eligible Employee dies or becomes disabled while employed by the Company, (iii) in the event the Eligible Employee’s employment with the Company is terminated after a Change in Control due to an involuntary termination by the Company without Cause or the Eligible Employee’s resignation with Good Reason or (iv) if earlier than any of the foregoing events, in installments based on the Eligible Employee’s continued employment with the Company or a Subsidiary through each of the following vesting dates:
|
Vesting Date |
Vested Portion of Restricted Stock Performance Award |
|
1st anniversary of payment date |
33-1/3% |
|
2nd anniversary of payment date |
66-2/3% |
|
3rd anniversary of payment date |
100% |
In the event an Eligible Employee’s employment with the Company and its Subsidiaries terminates for any reason, the Eligible Employee shall, for no consideration, forfeit to the Company coincident with such termination all shares in the Restricted Stock Performance Award that have not become vested in the Eligible Employee pursuant to the foregoing provisions of this Section 3.2(c).
(d)Form of Payments After a Change in Control. The value of one hundred percent (100%) of the shares comprising an Eligible Employee’s Performance Award for a Performance Period ending after a Change in Control, determined by multiplying the number of such shares by the closing price at which shares of the Company’s common stock are sold regular way on the New York Stock Exchange on the last trading day prior to the Change in Control shall be paid to the Eligible Employee in cash, less applicable payroll and withholding taxes. No amount payable to an Eligible Employee under this Section 3.2(d) after a Change in Control Acceleration Event shall be subject to deferral and shall be paid to the Eligible Employee pursuant to this Section notwithstanding the terms of any Deferral Agreement that would otherwise apply to the payment in the absence of a Change in Control.
3.3Deferrals of Restricted Stock Performance Awards.
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(a)Deferral Agreement. Each Eligible Employee may elect, by entering into a Deferral Agreement with the Company, to defer payment of all (and not less than all) of the Restricted Stock Performance Award otherwise payable to the Eligible Employee for a Performance Period. To be effective to defer the payment of a Restricted Stock Performance Award, an Eligible Employee must complete and return a Deferral Agreement to the Company in accordance with procedures established by the Committee for such purpose on or before the date that is six (6) months before the end of the Performance Period; provided, however, an Employee who first becomes an Eligible Employee during a Performance Period shall not be permitted to enter into a Deferral Agreement for the deferral of a Restricted Stock Performance Award for such Performance Period.
An Eligible Employee’s Deferral Agreement shall be effective for one Performance Period. Therefore, an Eligible Employee must complete and sign a Deferral Agreement and return the agreement to the representative of the Company designated by the Committee on or before the date that is six (6) months before the end of the Performance Period for which a deferral of a Restricted Stock Performance Award is intended to be made.
(b)Deferral Accounts. In the event an Eligible Employee defers the payment of a Restricted Stock Performance Award, the number of shares comprising such award shall be converted into an equivalent number of common stock units, and such units shall be credited to a Deferral Account established and maintained in the Eligible Employee’s name on the books and records of the Company.
(c)Dividend Equivalent Payments; Adjustments to Common Stock Units. The Company shall pay to each Eligible Employee in cash, less applicable payroll and withholding taxes, within thirty (30) days after the payment date of any cash dividend with respect to shares of the Company’s common stock a dividend equivalent payment equal to the number of common stock units credited to the Eligible Employee’s Deferral Account as of the record date for such dividend multiplied by the per share amount of the dividend.
In the event a dividend with respect to shares of the Company’s common stock shall be declared and paid in additional shares or in the event the outstanding shares of the Company’s common stock shall be changed into or exchanged for a different number or kind of shares of stock or other securities of the Company or of another corporation or changed into or exchanged for cash or property or the right to receive cash or property, then the Committee shall in its discretion equitably adjust the common stock units credited to the Deferral Accounts under the Plan to prevent substantial dilution or enlargement of the rights of Eligible Employees under the Plan.
(d)Vesting. An Eligible Employee shall become vested in the common stock units credited to the Eligible Employee’s Deferral Account in accordance with the vesting provisions of Section 3.2(b) that would have applied to the Restricted Stock Performance Award shares from which such units were derived.
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(e)Payment of Deferral Accounts. Subject to Section 4.2, the vested portion of an Eligible Employee’s Deferral Account shall be paid to the Eligible Employee no earlier than fifteen (15) days and no later than ninety (90) days after the Eligible Employee’s Separation from Service. The form of payment shall be one share of the Company’s common stock for each common stock unit and cash for any fractional unit credited to the vested portion of the Deferral Account.
In accordance with procedures established by the Committee, but in no event later than the date an Eligible Employee enters into his or her first Deferral Agreement with the Company under the Plan, the Eligible Employee may elect a single sum payment of the Eligible Employee’s Deferral Account or payment in installments over a term certain of not more than five (5) years. In the event an Eligible Employee fails to make a valid method of payment election, the Eligible Employee shall be deemed to have elected payment of the Eligible Employee’s Deferral Account in a single sum payment of shares of Company common stock and cash for any fractional unit credited to the vested portion of the Deferral Account. Subject to the immediately succeeding paragraph, an Eligible Employee’s method of payment election shall be irrevocable and remain in effect for all common stock units credited to the Eligible Employee’s Deferral Account in respect of Restricted Stock Performance Awards for all Performance Periods beginning after the date the election is made.
Notwithstanding the immediately preceding paragraph, each Eligible Employee who made a method of payment election prior to January 1, 2019 may make a new payment election during the period beginning November 1, 2019 and ending December 31, 2019, and if an Eligible Employee makes a new payment election, the new payment election shall be irrevocable and remain in effect for all common stock units credited to the Eligible Employee’s Deferral Account in respect of Restricted Stock Performance Awards for all Performance Periods ending on and after December 31, 2020.
(f)Payment Following Death. An Eligible Employee may designate and change at any time the Beneficiary who is to receive distribution of the vested portion of the Eligible Employee’s Deferral Account in the event of the Eligible Employee’s death. Any such designation or change shall not be effective until received by the representative of the Company designated by the Committee. If an Eligible Employee has not properly designated a Beneficiary, if for any reason such designation shall not be legally effective, or if the designated Beneficiary shall predecease the Eligible Employee, then the Eligible Employee’s estate shall be treated as the Beneficiary.
(g)Payment Following a Change in Control. Notwithstanding the foregoing provisions of this Section 3.3, but subject to Section 4.2, the value of the Eligible Employee’s Deferral Account shall be paid to the Eligible Employee in a single cash payment, less applicable withholding taxes, within sixty (60) days following a Change in Control Acceleration Event (the “CIC Payment Date”). Such value shall be equal to the number of common stock units credited to the Eligible Employee’s Deferral Account as of the date of the Change in Control Acceleration Event multiplied by the closing price at which shares of the Company’s stock are sold regular way on the New York Stock
9
Exchange on the last trading day prior to the date of the Change in Control Acceleration Event.
In the event that payment to an Eligible Employee is delayed beyond the CIC Payment Date due to the requirements of Section 4.2, the amount due to such Eligible Employee as of the CIC Payment Date shall be increased with interest at the prime rate, as published in The Wall Street Journal, plus 1% per annum, from the CIC Payment Date to the date the Eligible Employee receives payment of the amount due.
4.1Amendment or Termination.
The Board expressly reserves for itself and for the Committee the right and the power to amend or terminate the Plan at any time. Unless the Committee otherwise expressly provides at the time the action is taken, no Performance Awards shall be paid to any Eligible Employee on or after the date of any termination of the Plan.
4.2Code Section 409A.
Notwithstanding anything in the Plan to the contrary, if any amount or benefit that the Company determines would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable under this Plan by reason of an Eligible Employee’s Separation from Service, then to the extent necessary to comply with Code Section 409A:
(a)if the payment or distribution is payable in a lump sum, the Eligible Employee’s right to receive payment or distribution of such non-exempt deferred compensation will be delayed until the earlier of the Eligible Employee’s death or the seventh month following the Eligible Employee’s Separation from Service; and
(b)if the payment or distribution is payable over time, the amount of such non-exempt deferred compensation that would otherwise be payable during the six (6) month period immediately following the Eligible Employee’s Separation from Service will be accumulated and the Eligible Employee’s right to receive payment or distribution of such accumulated amount will be delayed until the earlier of the Eligible Employee’s death or the seventh month following the Eligible Employee’s Separation from Service and paid on the earlier of such dates, without interest, and the normal payment or distribution schedule for any remaining payments or distributions will commence.
4.3Local Law Adjustments; Sub-Plans.
To facilitate the making of any Performance Award under this Plan, the Committee may adopt rules and provide for such special terms for Performance Awards to Eligible Employees who are foreign nationals or who are employed by the Company or any Subsidiary outside of the United States as the Committee may consider necessary or appropriate to accommodate differences in local law, tax policy or custom. Without limiting the foregoing, the Committee is
10
authorized to adopt rules and procedures for the conversion of local currency, taxes, withholding procedures and handling of stock certificates which vary with the customs and requirements of particular countries. The Company may adopt sub-plans and establish escrow accounts and trusts, and settle Performance Awards in cash in lieu of shares, as may be appropriate or required for particular locations and countries.
4.4Special Provisions for Certain Eligible Employees.
All Performance Awards for Eligible Employees subject to Section 16(b) of the Securities Exchange Act of 1934 shall be deemed to include any such additional terms, conditions, limitations and provisions as Rule 16b-3 requires.
4.5Limited Effect of Restatement
This instrument amends and restates the Plan effective for Performance Periods beginning after the Effective Date. Nothing in this instrument shall in any way change, alter or affect the terms of any Performance Award or the time, amount or payment due with respect to any Performance Award earned under the Plan for any Performance Period that began prior to the Effective Date.
11
Exhibit 10.3
NOTICE OF GRANT
to
___________________________________
(“Grantee”)
by
Nucor Corporation
of
___________
non-transferable Restricted Share Units (“Units”)
each of which shall represent the right to receive, when and as provided herein, one (1) Common Share.
This grant shall be subject in all respects to the provisions of the Nucor Corporation 2014 Omnibus Incentive Compensation Plan and the terms and conditions set forth in the Restricted Share Unit Award Agreement attached hereto and incorporated herein by reference.
Unless vested earlier in accordance with Section 2 of the Restricted Share Unit Award Agreement, the Units shall become vested in the Grantee as follows, provided the Grantee has been continuously employed by the Company from the Date of Grant until the applicable date of vesting:
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Percentage of Units Vested |
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Date of Vesting |
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33-1/3% |
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First Anniversary of Date of Grant |
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33-1/3% |
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Second Anniversary of Date of Grant |
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33-1/3% |
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Third Anniversary of Date of Grant |
IN WITNESS WHEREOF, Nucor Corporation, acting by and through its duly authorized officer, has caused this Notice of Grant to be executed as of the Date of Grant set forth below.
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NUCOR CORPORATION |
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By: |
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Name: |
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Title: |
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Date of Grant: |
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OGA Time Vesting 2014
NUCOR CORPORATION
2014 Omnibus Incentive Compensation Plan
Restricted Share Unit Award Agreement
THIS RESTRICTED SHARE UNIT AWARD AGREEMENT (this “Award Agreement”) is made and entered into as of _________________, by and between Nucor Corporation, a Delaware corporation (the “Company”), and the individual (the “Grantee”) identified in the accompanying Notice of Grant of Restricted Share Units (the “Notice”).
TERMS AND CONDITIONS
1.Grant of Units. The Company hereby grants to the Grantee, subject to the restrictions and the other terms and conditions set forth in the Nucor Corporation 2014 Omnibus Incentive Compensation Plan (the “Plan”) and in this Award Agreement, the number of Restricted Share Units (the “Units”) set forth in the Notice, each of which shall represent the right to receive, when and as provided herein, one (1) Common Share. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Plan.
2.Vesting of Units. The Units shall vest on the earliest to occur of the following:
(a)As of the Date of Vesting specified in the Notice;
(b)On the date of the termination of the Grantee’s employment with the Company by reason of the Grantee’s death, Disability or Retirement; or
(c)On the date of the termination of the Grantee’s employment with the Company by the Company without Cause or by Grantee’s resignation for Good Reason, in either case, within twenty-four (24) months after a Change in Control.
In the event the Grantee’s employment with the Company terminates for any reason, any Units not vested pursuant to this Section shall lapse and be cancelled without further action by the Company.
The term “Retirement” means the voluntary termination of the Grantee’s employment with the approval of the Committee after the date the Grantee has satisfied the following age and years of service eligibility requirements:
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Age |
65 |
64 |
63 |
62 |
61 |
60 |
59 |
58 |
57 |
56 |
55 |
|
Years of Service |
-0- |
2 |
4 |
6 |
8 |
10 |
12 |
14 |
16 |
18 |
20 |
3.Account; Dividend Equivalent Payments. The Units shall be credited to a bookkeeping account in the name of Grantee on the books and records of the Company (the “Restricted Share Unit Account”). The Company shall pay to the Grantee in cash, less applicable payroll and withholding taxes, within thirty (30) days after the payment date of any cash dividend with respect to Common Shares, a dividend equivalent payment equal to the number of Units credited to the Grantee’s Restricted Share Unit Account as of the record date for such dividend multiplied by the per share amount of the dividend.
4.Receipt of Shares. The Company shall issue the Common Shares represented by the Units to the Grantee, or to the Grantee’s estate in the event of Grantee’s death, as soon as administratively practicable after the Units become vested in the Grantee, and the Units in respect of which such Common Shares are issued shall be cancelled. In no event shall Common Shares be issued to the Grantee, or to any person or entity claiming by or through the Grantee, in respect of unvested Units.
OGA Time Vesting 2014
5.Limitation of Rights. The Units do not confer upon the Grantee, or the Grantee’s estate in the event of Grantee’s death, any rights as a stockholder of the Company unless and until Common Shares are in fact issued to such person in respect of the Units. Nothing in this Award Agreement shall interfere with or limit in any way the right of the Company to terminate the Grantee’s service at any time, nor confer upon the Grantee any right to continue in the service of the Company.
6.Restrictions on Transfer and Pledge. No right or interest of Grantee in the Units may be pledged, encumbered, or hypothecated to or in favor of any party other than the Company or an affiliate, or shall be subject to any lien, obligation, or liability of Grantee to any other party other than the Company or an affiliate. The Units are not assignable or transferable by Grantee other than by will or the laws of descent and distribution.
7.Plan Controls. The terms contained in the Plan (including without limitation its per annum limit on shares awarded and provisions regarding changes in capital structure of the Company) are incorporated into and made a part of this Award Agreement and this Award Agreement shall be governed by and construed in accordance with the Plan. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Award Agreement, the provisions of the Plan shall be controlling and determinative.
8.Amendment. The Company may amend or terminate this Award Agreement without the consent of Grantee; provided, however, that such amendment or termination shall not, without Grantee’s consent, reduce or diminish the value of this Award determined as if it had been fully vested (i.e., as if all restrictions on the Units hereunder had expired) on the date of such amendment or termination.
9.Successors. This Award Agreement shall be binding upon any successor of the Company, in accordance with the terms of this Award Agreement and the Plan.
10.Withholding. The Company shall deduct and withhold from the distribution of the Common Shares pursuant to Section 4 a number of Common Shares having a Fair Market Value equal to the minimum amount of any federal, state and local taxes of any kind (including the Grantee’s FICA obligation) required by law to be withheld.
11.Severability. If any one or more of the provisions contained in this Award Agreement are invalid, illegal or unenforceable, the other provisions of this Award Agreement will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included.
12.Notice. Notices and communications under this Award Agreement must be in writing and either personally delivered or sent by registered or certified United States mail, return receipt requested, postage prepaid. Notices to the Company must be addressed to:
Nucor Corporation
1915 Rexford Road
Charlotte, North Carolina 28211
Attn: Corporate Secretary
or any other address designated by the Company in a written notice to Grantee. Notices to the Grantee will be directed to the address of Grantee then currently on file with the Company, or at any other address given by Grantee in a written notice to the Company.
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OGA Time Vesting 2014
Exhibit 10.4
NOTICE OF GRANT
to
___________________________________
(“Grantee”)
by
Nucor Corporation
of
___________
Nonqualified Stock Options (“Options”)
each of which shall represent the right to purchase, when and as provided herein, one (1) Common Share of at an Option Price of ________ per share.
This grant shall be subject in all respects to the provisions of the Nucor Corporation 2014 Omnibus Incentive Compensation Plan and the terms and conditions set forth in the Nonqualified Stock Option Award Agreement attached hereto and incorporated herein by reference.
Unless vested earlier in accordance with Section 3 of the Nonqualified Stock Option Award Agreement, the Options shall become vested in and exercisable by the Grantee as follows, provided the Grantee has been continuously employed by the Company from the Date of Grant until the date of vesting:
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Percentage of Options Vested |
Date of Vesting |
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100% |
Third Anniversary of Date of Grant |
IN WITNESS WHEREOF, Nucor Corporation, acting by and through its duly authorized officer, has caused this Notice of Grant to be executed as of the Date of Grant set forth below.
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NUCOR CORPORATION |
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By: |
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Name: |
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Title: |
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Date of Grant: |
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Expiration Date: |
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OGA Stock Option Agreement 2014
NUCOR CORPORATION
2014 Omnibus Incentive Compensation Plan
Nonqualified Stock Option Award Agreement
THIS NONQUALIFIED STOCK OPTION AWARD AGREEMENT (this “Award Agreement”) is made and entered into as of the _______________, by and between Nucor Corporation, a Delaware corporation (the “Company”), and the individual (the “Grantee”) identified in the accompanying Notice of Grant of Nonqualified Stock Options (the “Notice”).
TERMS AND CONDITIONS
1.Grant of Options. The Company hereby grants to the Grantee, subject to the restrictions and the other terms and conditions set forth in the Nucor Corporation 2014 Omnibus Incentive Compensation Plan (the “Plan”) and in this Award Agreement, the number of nonqualified Stock Options (the “Options”) set forth in the Notice, each of which shall represent the right to purchase, when and as provided herein, one (1) Common Share. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Plan.
2.Date of Grant, Expiration Date and Option Price. The Date of Grant, Expiration Date and Option Price of the Options are specified in the Notice.
3.Vesting of Options. The Options shall vest in and be exercisable by the Grantee on the earliest to occur of the following:
(a)As of the Date of Vesting specified in the Notice;
(b)On the date of the termination of the Grantee’s employment with the Company by reason of the Grantee’s death, Disability or Retirement; or
(c)On the date of the termination of the Grantee’s employment with the Company by the Company without Cause or by Grantee’s resignation for Good Reason, in either case, within twenty-four (24) months after a Change in Control.
In the event the Grantee’s employment with the Company terminates for any reason, any Options not vested pursuant to this Section shall lapse and be cancelled without further action by the Company.
The term “Retirement” means the voluntary termination of the Grantee’s employment with the approval of the Committee after the date the Grantee has satisfied the following age and years of service eligibility requirements:
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Age |
65 |
64 |
63 |
62 |
61 |
60 |
59 |
58 |
57 |
56 |
55 |
|
Years of Service |
-0- |
2 |
4 |
6 |
8 |
10 |
12 |
14 |
16 |
18 |
20 |
4.Exercise of Options.
(a)General. The Grantee may exercise the Options for all or any portion (in whole shares) of the Common Shares subject to the Options at any time after the Options become vested and exercisable as prescribed in Section 3. Except to the extent otherwise provided in Section 5, once the Options have become vested and exercisable in accordance with the preceding sentence, the Options shall continue to be exercisable until the earlier of
OGA Stock Option Agreement 2014
the termination of Grantee’s rights hereunder pursuant to Section 5, or until the Expiration Date.
(b)Method of Exercise and Payment for Shares. This Option shall be exercised by written or electronic notice, in a form prescribed by the Company, delivered to the Company or its designee by mail, overnight delivery service, in person or via other means authorized by the Company. Such notice shall be accompanied by either (i) irrevocable instructions to a broker-dealer to sell or margin a sufficient portion of the shares as to which the Options are to be exercised and to deliver the sale or margin loan proceeds directly to the Company to pay the Option Price or (ii) payment in full of the Option Price in cash or cash equivalent acceptable to the Committee. The Grantee’s right to exercise the Options shall be conditioned upon and subject to satisfaction, in a manner acceptable to the Company, of any withholding tax liability under any state or federal law arising in connection with exercise of the Options.
5.Exercise Period.
(a)Normal Retirement, Death or Disability. In the event the Grantee’s employment with the Company is terminated due to the Grantee’s Retirement or Disability or the Grantee dies while employed by the Company, the vested Options may be exercised by the Grantee during the remainder of the period preceding the Expiration Date.
(b)Early Retirement. In the event the Grantee’s employment with the Company is terminated due to the Grantee’s Early Retirement, the vested Options may be exercised by the Grantee, or, in the case of the Grantee’s death, by the Grantee’s estate, or the person or persons to whom the Grantee’s rights under the Options shall pass by will or the laws of descent and distribution, until the date that is twelve (12) months after the date of such termination of employment or during the remainder of the period preceding the Expiration Date, whichever is shorter.
(b)Other Termination of Employment. In the event the Grantee’s employment with the Company is terminated by the Company without Cause or by the Grantee’s resignation for any reason other than the Grantee’s death, Disability, Early Retirement or Normal Retirement, the vested Options may be exercised by the Grantee until the date that is three (3) months after the date of such termination of employment or during the remainder of the period preceding the Expiration Date, whichever is shorter.
(c)Termination for Cause. All of the Options (whether vested or unvested) shall immediately terminate on the date the Grantee’s employment with the Company is terminated for Cause, and none of the Options shall be exercisable thereafter.
(d)Definitions. The following terms shall have the meanings set forth herein:
(i)“Early Retirement” means the Grantee’s Retirement (as defined in Section 3 above) prior to the date the Grantee has attained age sixty-three (63) and completed ten (10) years of service.
(ii)“Normal Retirement” means the Grantee’s Retirement (as defined in Section 3 above) on or after the date the Grantee has attained age sixty-three (63) and completed ten (10) years of service.
2
OGA Stock Option Agreement 2014
6.Limitation of Rights. The Options do not confer upon the Grantee, or the Grantee’s estate in the event of the Grantee’s death, any rights as a stockholder of the Company unless and until the Options are exercised and Common Shares are purchased by such person in respect of the Options. Nothing in this Award Agreement shall interfere with or limit in any way the right of the Company to terminate the Grantee’s service at any time, nor confer upon the Grantee any right to continue in the service of the Company.
7.Restrictions on Transfer and Pledge. No right or interest of the Grantee in the Options may be pledged, encumbered, or hypothecated to or in favor of any party other than the Company, or shall be subject to any lien, obligation, or liability of the Grantee to any other party other than the Company. The Options may not be assigned, pledged or otherwise transferred by the Grantee other than by will or the laws of descent and distribution. During the lifetime of the Grantee, the Options may be exercised or surrendered only by the Grantee.
8.Plan Controls. The terms contained in the Plan (including without limitation provisions regarding changes in capital structure of the Company) are incorporated into and made a part of this Award Agreement and this Award Agreement shall be governed by and construed in accordance with the Plan. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Award Agreement, the provisions of the Plan shall be controlling and determinative.
9.Amendment. The Company may amend or terminate this Award Agreement without the consent of the Grantee; provided, however, that such amendment or termination shall not, without the Grantee’s consent, reduce or diminish the value of this Award determined as if it had been fully vested on the date of such amendment or termination.
10.Successors. This Award Agreement shall be binding upon any successor of the Company, in accordance with the terms of this Award Agreement and the Plan.
11.Severability. If any one or more of the provisions contained in this Award Agreement are invalid, illegal or unenforceable, the other provisions of this Award Agreement will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included.
12.Notice. Notices and communications under this Award Agreement must be in writing and either personally delivered or sent by registered or certified United States mail, return receipt requested, postage prepaid. Notices to the Company must be addressed to:
Nucor Corporation
1915 Rexford Road
Charlotte, North Carolina 28211
Attn: Corporate Secretary
or any other address designated by the Company in a written notice to the Grantee. Notices to the Grantee will be directed to the address of the Grantee then currently on file with the Company, or at any other address given by Grantee in a written notice to the Company.
3
OGA Stock Option Agreement 2014
Exhibit 31
CERTIFICATION
I, Leon J. Topalian, certify that:
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of Nucor Corporation; |
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
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3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
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4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
|
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(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
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(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
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(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
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(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
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5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
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(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
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(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
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Date: May 11, 2022 |
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/s/ Leon J. Topalian |
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Leon J. Topalian |
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President and Chief Executive Officer |
Exhibit 31.1
CERTIFICATION
I, Stephen D. Laxton, certify that:
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of Nucor Corporation; |
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
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4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
|
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(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
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(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
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(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
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(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
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5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
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(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
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(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
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Date: May 11, 2022 |
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/s/ Stephen D. Laxton |
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Stephen D. Laxton |
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Chief Financial Officer, Treasurer and Executive Vice President |
Exhibit 32
Certification Pursuant to
18 U.S.C. Section 1350,
As Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the Quarterly Report on Form 10-Q of Nucor Corporation (the “Registrant”) for the period ended April 2, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Leon J. Topalian, President and Chief Executive Officer (principal executive officer) of the Registrant, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
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(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
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(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
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/s/ Leon J. Topalian |
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Name: |
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Leon J. Topalian |
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Date: |
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May 11, 2022 |
Exhibit 32.1
Certification Pursuant to
18 U.S.C. Section 1350,
As Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the Quarterly Report on Form 10-Q of Nucor Corporation (the “Registrant”) for the period ended April 2, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Stephen D. Laxton, Chief Financial Officer, Treasurer and Executive Vice President (principal financial officer) of the Registrant, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
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(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
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(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
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/s/ Stephen D. Laxton |
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Name: |
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Stephen D. Laxton |
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Date: |
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May 11, 2022 |
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
|
| Income Statement [Abstract] | ||
| Net sales | $ 10,493,282 | $ 7,017,140 |
| Costs, expenses and other: | ||
| Cost of products sold | 7,035,143 | 5,394,703 |
| Marketing, administrative and other expenses | 524,584 | 291,124 |
| Equity in earnings of unconsolidated affiliates | (7,695) | (13,239) |
| Losses on assets | 6,662 | |
| Interest expense, net | 43,135 | 39,644 |
| Costs, expenses and other, total | 7,595,167 | 5,718,894 |
| Earnings before income taxes and noncontrolling interests | 2,898,115 | 1,298,246 |
| Provision for income taxes | 671,000 | 310,732 |
| Net earnings | 2,227,115 | 987,514 |
| Earnings attributable to noncontrolling interests | 131,492 | 45,082 |
| Net earnings attributable to Nucor stockholders | $ 2,095,623 | $ 942,432 |
| Net earnings per share: | ||
| Basic | $ 7.69 | $ 3.10 |
| Diluted | $ 7.67 | $ 3.10 |
| Average shares outstanding: | ||
| Basic | 271,564 | 301,846 |
| Diluted | 272,094 | 302,518 |
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
|
| Statement Of Comprehensive Income [Abstract] | ||
| Net unrealized income on hedging derivatives, tax | $ 16,800 | $ 400 |
| Reclassification adjustment for settlement of hedging derivatives included in net income, tax effect | (1,700) | 100 |
| Foreign currency translation gain, tax | $ 0 | $ 0 |
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands |
Apr. 02, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $ 3,725,266 | $ 2,364,858 |
| Short-term investments | 446,868 | 253,005 |
| Accounts receivable, net | 4,111,478 | 3,853,972 |
| Inventories, net | 6,245,679 | 6,011,182 |
| Other current assets | 252,060 | 316,540 |
| Total current assets | 14,781,351 | 12,799,557 |
| Property, plant and equipment, net | 8,921,263 | 8,114,818 |
| Restricted cash and cash equivalents | 88,242 | 143,800 |
| Goodwill | 2,904,134 | 2,827,344 |
| Other intangible assets, net | 1,063,210 | 1,103,759 |
| Other assets | 874,668 | 833,794 |
| Total assets | 28,632,868 | 25,823,072 |
| Current liabilities: | ||
| Short-term debt | 86,521 | 107,723 |
| Current portion of long-term debt and finance lease obligations | 629,536 | 615,678 |
| Accounts payable | 1,900,536 | 1,974,041 |
| Salaries, wages and related accruals | 832,999 | 1,495,166 |
| Accrued expenses and other current liabilities | 1,081,706 | 964,805 |
| Federal income taxes payable | 602,537 | 0 |
| Total current liabilities | 5,133,835 | 5,157,413 |
| Long-term debt and finance lease obligations due after one year | 6,112,331 | 4,961,410 |
| Deferred credits and other liabilities | 1,243,582 | 1,100,455 |
| Total liabilities | 12,489,748 | 11,219,278 |
| Commitments and contingencies | ||
| Nucor stockholders' equity: | ||
| Common stock | 152,061 | 152,061 |
| Additional paid-in capital | 2,163,129 | 2,140,608 |
| Retained earnings | 19,635,277 | 17,674,100 |
| Accumulated other comprehensive loss, net of income taxes | (44,504) | (115,282) |
| Treasury stock | (6,701,401) | (5,835,098) |
| Total Nucor stockholders' equity | 15,204,562 | 14,016,389 |
| Noncontrolling interests | 938,558 | 587,405 |
| Total equity | 16,143,120 | 14,603,794 |
| Total liabilities and equity | $ 28,632,868 | $ 25,823,072 |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
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| Operating activities: | ||
| Net earnings | $ 2,227,115 | $ 987,514 |
| Adjustments: | ||
| Depreciation | 195,478 | 179,820 |
| Amortization | 41,411 | 21,130 |
| Stock-based compensation | 26,422 | 19,859 |
| Deferred income taxes | (18,764) | 62,705 |
| Distributions from affiliates | 1,500 | 180 |
| Equity in earnings of unconsolidated affiliates | (7,695) | (13,239) |
| Losses on assets | 6,662 | |
| Changes in assets and liabilities (exclusive of acquisitions and dispositions): | ||
| Accounts receivable | (92,394) | (524,570) |
| Inventories | 124,201 | (795,940) |
| Accounts payable | (165,476) | 225,333 |
| Federal income taxes | 672,142 | 200,888 |
| Salaries, wages and related accruals | (658,267) | 69,780 |
| Other operating activities | 126,495 | 90,289 |
| Cash provided by operating activities | 2,472,168 | 530,411 |
| Investing activities: | ||
| Capital expenditures | (447,682) | (313,510) |
| Investment in and advances to affiliates | (63) | (118) |
| Disposition of plant and equipment | 7,288 | 5,735 |
| Acquisitions (net of cash acquired) | (347,177) | 300 |
| Purchases of investments | (274,197) | (214,427) |
| Proceeds from the sale of investments | 80,333 | 219,777 |
| Other investing activities | (183) | 249 |
| Cash used in investing activities | (981,681) | (301,994) |
| Financing activities: | ||
| Net change in short-term debt | (21,202) | (1,607) |
| Proceeds from issuance of long-term debt, net of discount | 1,093,059 | |
| Repayment of long-term debt | (2,500) | |
| Bond issuance costs | (8,388) | |
| Proceeds from exercise of stock options | 16,586 | 107,524 |
| Payment of tax withholdings on certain stock-based compensation | (8,512) | (14,521) |
| Distributions to noncontrolling interests | (211,558) | (73,795) |
| Cash dividends | (137,587) | (123,901) |
| Acquisition of treasury stock | (905,324) | (301,859) |
| Other financing activities | (3,883) | (2,505) |
| Cash used in financing activities | (189,309) | (410,664) |
| Effect of exchange rate changes on cash | 3,672 | 3,307 |
| Increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents | 1,304,850 | (178,940) |
| Cash and cash equivalents and restricted cash and cash equivalents - beginning of year | 2,508,658 | 2,754,929 |
| Cash and cash equivalents and restricted cash and cash equivalents - end of three months | 3,813,508 | 2,575,989 |
| Non-cash investing activity: | ||
| Change in accrued plant and equipment purchases | $ (7,789) | $ 4,461 |
Basis of Interim Presentation |
3 Months Ended |
|---|---|
Apr. 02, 2022 | |
| Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
| Basis of Interim Presentation |
1. Basis of Interim Presentation The information furnished in this Item 1 reflects all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented and are of a normal and recurring nature unless otherwise noted. The information furnished has not been audited; however, the December 31, 2021 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited condensed consolidated financial statements included in this Item 1 should be read in conjunction with the audited consolidated financial statements and the notes thereto included in Nucor’s Annual Report on Form 10-K for the year ended December 31, 2021. |
Inventories |
3 Months Ended |
|---|---|
Apr. 02, 2022 | |
| Inventory Disclosure [Abstract] | |
| Inventories |
2. Inventories Inventories consisted of approximately 43% raw materials and supplies and 57% finished and semi-finished products at both April 2, 2022 and December 31, 2021. Nucor’s manufacturing process consists of a continuous, vertically integrated process from which products are sold to customers at various stages throughout the process. Since most steel products can be classified as either finished or semi-finished products, these two categories of inventory are combined. |
Property, Plant and Equipment |
3 Months Ended |
|---|---|
Apr. 02, 2022 | |
| Property Plant And Equipment [Abstract] | |
| Property, Plant and Equipment |
3. Property, Plant and Equipment Property, plant and equipment is recorded net of accumulated depreciation of $10.57 billion at April 2, 2022 ($10.39 billion at December 31, 2021). |
Goodwill and Other Intangible Assets |
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| Goodwill And Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Other Intangible Assets |
4. Goodwill and Other Intangible Assets The change in the net carrying amount of goodwill for the three months ended April 2, 2022 by segment was as follows (in thousands):
Nucor completed its most recent annual goodwill impairment testing as of the first day of the fourth quarter of 2021 and concluded that as of such date there was no impairment of goodwill for any of its reporting units. The annual assessment performed in 2021 for one of the Company’s reporting units, Rebar Fabrication, used forward-looking projections in future cash flows. The fair value of this reporting unit exceeded its carrying value by approximately 54% in the most recent assessment. If our assessment of the relevant facts and circumstances changes, including if the expected future performance of this reporting unit declines from the most recent assessment, non-cash impairment charges may be required. Total goodwill associated with the Rebar Fabrication reporting unit was $369.8 million as of April 2, 2022 ($363.0 million as of December 31, 2021). An impairment of goodwill may also lead us to record an impairment of other intangible assets. Total finite-lived intangible assets associated with the Rebar Fabrication reporting unit were $43.5 million as of April 2, 2022 ($45.0 million as of December 31, 2021). There have been no triggering events requiring an interim assessment for impairment of the Rebar Fabrication reporting unit since the most recent annual goodwill impairment testing date. Intangible assets with estimated useful lives of five to 22 years are amortized on a straight-line or accelerated basis and were comprised of the following as of April 2, 2022 and December 31, 2021 (in thousands):
Intangible asset amortization expense in the first quarter of 2022 and 2021 was $41.4 million and $21.1 million, respectively. Annual amortization expense is estimated to be $154.6 million in 2022; $132.9 million in 2023; $132.1 million in 2024; $131.2 million in 2025; and $128.2 million in 2026. |
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Current Liabilities |
3 Months Ended |
|---|---|
Apr. 02, 2022 | |
| Payables And Accruals [Abstract] | |
| Current Liabilities |
5. Current Liabilities Book overdrafts, included in accounts payable in the condensed consolidated balance sheets, were $128.1 million at April 2, 2022 ($143.8 million at December 31, 2021). Dividends payable, included in accrued expenses and other current liabilities in the condensed consolidated balance sheets, were $134.5 million at April 2, 2022 ($137.6 million at December 31, 2021). |
Fair Value Measurements |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements |
6. Fair Value Measurements The following table summarizes information regarding Nucor’s financial assets and financial liabilities that were measured at fair value as of April 2, 2022 and December 31, 2021 (in thousands). Nucor does not have any non-financial assets or non-financial liabilities that are measured at fair value on a recurring basis.
Fair value measurements for Nucor’s cash equivalents, short-term investments and restricted cash and cash equivalents are classified under Level 1 because such measurements are based on quoted market prices in active markets for identical assets. Our short-term investments at April 2, 2022 consisted of certificates of deposit, commercial paper and corporate notes. Fair value measurements for Nucor’s derivatives, which are typically commodity or foreign exchange contracts, are classified under Level 2 because such measurements are based on published market prices for similar assets or are estimated based on observable inputs such as interest rates, yield curves, credit risks, spot and future commodity prices, and spot and future exchange rates. There were no transfers between the levels in the fair value hierarchy for the periods presented. The fair value of short-term and long-term debt, including current maturities, was approximately $6.77 billion at April 2, 2022 (approximately $6.06 billion at December 31, 2021). The debt fair value estimates are classified under Level 2 because such estimates are based on readily available market prices of our debt at April 2, 2022 and December 31, 2021, or similar debt with the same maturities, ratings and interest rates. |
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Contingencies |
3 Months Ended |
|---|---|
Apr. 02, 2022 | |
| Commitments And Contingencies Disclosure [Abstract] | |
| Contingencies |
7. Contingencies We are from time to time a party to various lawsuits, claims and other 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 with self-insurance limits. |
Stock-Based Compensation |
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| Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation |
8. Stock-Based Compensation Stock Options A summary of activity under Nucor’s stock option plans for the first quarter of 2022 is as follows (shares in thousands):
Compensation expense for stock options was $0.5 million and $0.3 million in the first quarter of 2022 and 2021, respectively. As of April 2, 2022, unrecognized compensation expense related to stock options was $2.6 million, which is expected to be recognized over a weighted-average period of 1.8 years. Restricted Stock Units A summary of Nucor’s restricted stock unit (“RSU”) activity for the first quarter of 2022 is as follows (shares in thousands):
Compensation expense for RSUs was $9.0 million and $9.3 million in the first quarter of 2022 and 2021, respectively. As of April 2, 2022, unrecognized compensation expense related to unvested RSUs was $34.6 million, which is expected to be recognized over a weighted-average period of 0.9 years. Restricted Stock Awards A summary of Nucor’s restricted stock activity under the Nucor Corporation Senior Officers Annual Incentive Plan (a supplement to the Nucor Corporation 2014 Omnibus Incentive Compensation Plan, the “AIP”) and the Nucor Corporation Senior Officers Long-Term Incentive Plan (a supplement to the Nucor Corporation 2014 Omnibus Incentive Compensation Plan, the “LTIP”) for the first quarter of 2022 is as follows (shares in thousands):
Compensation expense for common stock and common stock units awarded under the AIP and the LTIP is recorded over the performance measurement and vesting periods based on the anticipated number and market value of shares of common stock and common stock units to be awarded. Compensation expense for anticipated awards based upon Nucor’s financial performance, exclusive of amounts payable in cash, was $17.0 million and $10.2 million in the first quarter of 2022 and 2021, respectively. As of April 2, 2022, unrecognized compensation expense related to unvested restricted stock awards was $8.7 million, which is expected to be recognized over a weighted-average period of 2.4 years. |
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Employee Benefit Plan |
3 Months Ended |
|---|---|
Apr. 02, 2022 | |
| Compensation And Retirement Disclosure [Abstract] | |
| Employee Benefit Plan |
9. Employee Benefit Plan 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 $286.9 million and $129.0 million in the first quarter of 2022 and 2021, respectively. The related liability for these benefits is included in salaries, wages and related accruals in the condensed consolidated balance sheets. |
Interest Expense (Income) |
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| Banking And Thrift Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense (Income) |
10. Interest Expense (Income) The components of net interest expense for the first quarter of 2022 and 2021 are as follows (in thousands):
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Income Taxes |
3 Months Ended |
|---|---|
Apr. 02, 2022 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes |
11. Income Taxes The effective tax rate for the first quarter of 2022 was 23.2% compared to 23.9% for the first quarter of 2021. Nucor has concluded U.S. federal income tax matters for tax years through 2014 and for tax year 2016. The tax years 2015 and 2017 through 2020 remain open to examination by the Internal Revenue Service. The 2015 and 2018 Canadian income tax returns for Harris Steel Group Inc. and certain related affiliates are currently under examination by the Canada Revenue Agency. The tax years 2015 through 2020 remain open to examination by other major taxing jurisdictions to which Nucor is subject (primarily Canada and other state and local jurisdictions). Non-current deferred tax liabilities included in deferred credits and other liabilities in the condensed consolidated balance sheets were $740.4 million at April 2, 2022 ($610.3 million at December 31, 2021). |
Stockholders' Equity |
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity |
12. Stockholders’ Equity The following tables reflect the changes in stockholders’ equity attributable to Nucor and the noncontrolling interests of Nucor’s joint ventures, Nucor-Yamato Steel Company (Limited Partnership) (“NYS”) and California Steel Industries, Inc. (“CSI”), both of which Nucor owns 51%, for the three months ended April 2, 2022 and April 3, 2021 (in thousands):
Dividends declared per share were $0.50 per share in the first quarter of 2022 ($0.405 per share in the first quarter of 2021). On December 2, 2021, the Company announced that the Board of Directors had approved a new share repurchase program under which the Company is authorized to repurchase up to $4.00 billion of the Company’s common stock and terminated all previously authorized share repurchase programs. Share repurchases will be made from time to time in the open market at prevailing market prices or through private transactions or block trades. The timing and amount of repurchases will depend on market conditions, share price, applicable legal requirements and other factors. The share repurchase authorization is discretionary and has no expiration date. As of April 2, 2022, the Company had approximately $2.94 billion available for share repurchases under the program authorized by the Company’s Board of Directors. |
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Accumulated Other Comprehensive Income (Loss) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accumulated Other Comprehensive Income (Loss) |
13. Accumulated Other Comprehensive Income (Loss) The following tables reflect the changes in accumulated other comprehensive income (loss) by component for the three months ended April 2, 2022 and April 3, 2021 (in thousands):
(1) Includes $(5,390) and $501 net-of-tax impact of accumulated other comprehensive income (loss) reclassifications into cost of products sold for net (gains) losses on commodity contracts in the first quarter of 2022 and 2021, respectively. The tax impact of those reclassifications was $(1,700) and $100 in the first quarter of 2022 and 2021, respectively. |
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Segments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segments |
14. Segments Nucor reports its results in the following segments: steel mills, steel products and raw materials. The steel mills segment includes carbon and alloy steel in sheet, bars, structural and plate; steel trading businesses; rebar distribution businesses; and Nucor’s equity method investments in NuMit LLC (“NuMit”) and Nucor-JFE Steel Mexico, S. de R.L. de C.V. (“Nucor-JFE”). The steel products segment includes steel joists and joist girders, steel deck, fabricated concrete reinforcing steel, cold finished steel, precision castings, steel fasteners, metal building systems, insulated metal panels, steel grating, tubular products, steel racking, piling products, and wire and wire mesh. The raw materials segment includes The David J. Joseph Company and its affiliates (“DJJ”), primarily a scrap broker and processor; Nu-Iron Unlimited and Nucor Steel Louisiana LLC (“Nucor Steel Louisiana”), two facilities that produce direct reduced iron (“DRI”) used by the steel mills; and our natural gas production operations. Corporate/eliminations include items such as net interest expense on long-term debt, charges and credits associated with changes in allowances to eliminate intercompany profit in inventory, profit sharing expense and stock-based compensation. Corporate assets primarily include cash and cash equivalents, short-term investments, restricted cash and cash equivalents, allowances to eliminate intercompany profit in inventory, deferred income tax assets, federal and state income taxes receivable and investments in and advances to affiliates. Nucor’s results by segment for the first quarter of 2022 and 2021 were as follows (in thousands):
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Revenue |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Revenue From Contract With Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue |
The following tables disaggregate our revenue by major source for the first quarter of 2022 and 2021 (in thousands):
Contract liabilities are primarily related to deferred revenue resulting from cash payments received in advance from customers to protect against credit risk. Contract liabilities totaled $345.7 million as of April 2, 2022 ($251.9 million as of December 31, 2021) and are included in accrued expenses and other current liabilities in the condensed consolidated balance sheets. |
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Earnings Per Share |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share |
16. Earnings Per Share The computations of basic and diluted net earnings per share for the first quarter of 2022 and 2021 are as follows (in thousands, except per share amounts):
The following stock options were excluded from the computation of diluted net earnings per share for the first quarter of 2022 and 2021 because their effect would have been anti-dilutive (shares in thousands):
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Debt and Other Financing Arrangements |
3 Months Ended |
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Apr. 02, 2022 | |
| Debt Disclosure [Abstract] | |
| Debt and Other Financing Arrangements |
17. Debt and Other Financing Arrangements On March 11, 2022, Nucor completed the issuance and sale of $550.0 million aggregate principal amount of its 3.125% Notes due 2032 (the “2032 Notes”) and $550.0 million aggregate principal amount of its 3.850% Notes due 2052 (the “2052 Notes” and, together with the 2032 Notes, the “Notes”). We plan to use the net proceeds from the issuance and sale of the Notes to redeem, along with cash on hand if necessary, all of the outstanding $600.0 million aggregate principal amount of our 4.125% Notes due 2022 (the “2022 Notes”) and $500.0 million aggregate principal amount of our 4.000% Notes due 2023 (the “2023 Notes”) pursuant to the terms of the indenture governing the 2022 Notes and the 2023 Notes, with remaining proceeds, if any, to be used for general corporate purposes. Net proceeds from the issuance and sale of the Notes were $1.09 billion. Costs of $15.3 million associated with the issuance and sale of the Notes have been capitalized and will be amortized over the life of the Notes.
On April 25, 2022, Nucor redeemed all $500.0 million aggregate principal amount outstanding of the 2023 Notes. The 2023 Notes were redeemed using a portion of the net proceeds from the issuance and sale of the Notes. In September 2022, $600.0 million aggregate principal amount of the 2022 Notes will mature, which we expect to redeem in-full prior to that time using a portion of the net proceeds from the issuance and sale of the Notes, along with cash on hand, if necessary. |
Acquisitions |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisitions |
18. Acquisitions
On February 1, 2022, Nucor used cash on hand to acquire a 51% controlling ownership position in CSI by purchasing a 50% equity interest from a subsidiary of Vale S.A. (Vale) for a cash purchase price of approximately $400.0 million, adjusted for net debt and working capital at closing, as well as a 1% equity interest from JFE Steel Corporation (JFE). CSI is a flat-rolled steel converter with the capability to produce more than two million tons of finished steel and steel products annually. The company has five product lines, including hot rolled, pickled and oiled, cold rolled, galvanized and electric resistance welded (“ERW”) pipe. Key end-use markets served by CSI include customers in the construction, service center and energy industries. This acquisition gives Nucor a strong presence in the Western region of the United States and grows our ability to produce an even wider range of value-added sheet products. CSI financial results were included as part of the steel mills segment (see Note 14) beginning on February 1, 2022, the date of the acquisition of Nucor’s 51% controlling ownership position.
We allocated the purchase price for CSI to its individual assets acquired and liabilities assumed. While the purchase price allocation is substantially complete, it is still preliminary and subject to change, including for the final working capital settlement.
The following table summarizes the fair values of 100% of the assets and liabilities of CSI, as well as the fair value of the 49% noncontrolling interest not acquired by Nucor, as of February 1, 2022, the date of the acquisition of Nucor’s 51% controlling ownership position (in thousands):
The determination of the fair value of the noncontrolling interest was calculated using the implied value of 100% of the enterprise value of the business using the purchase price as the purchase price did not include a control premium on a per-share basis and the noncontrolling interest shareholder will participate equally in the economic benefits of CSI after the acquisition.
The goodwill of $69.1 million is calculated as the excess of the purchase price over the fair values of the assets acquired and liabilities assumed and has been allocated to the steel mills segment (see Note 4). The goodwill is attributable to the assembled workforce acquired, expanding our Western United States presence and CSI’s value-added product capabilities. None of the goodwill is deductible for tax purposes.
The results of operations for CSI upon the effective date of the acquisition have been included in the accompanying financial statements. Pro-forma results of operations for the Company would not be materially different as a result of the acquisition of CSI and, therefore, this information is not presented. |
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Goodwill and Other Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Change in Net Carrying Amount of Goodwill by Segment |
The change in the net carrying amount of goodwill for the three months ended April 2, 2022 by segment was as follows (in thousands):
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| Schedule of Intangible Assets |
Intangible assets with estimated useful lives of five to 22 years are amortized on a straight-line or accelerated basis and were comprised of the following as of April 2, 2022 and December 31, 2021 (in thousands):
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Financial Assets and Liabilities Measured at Fair Value |
The following table summarizes information regarding Nucor’s financial assets and financial liabilities that were measured at fair value as of April 2, 2022 and December 31, 2021 (in thousands). Nucor does not have any non-financial assets or non-financial liabilities that are measured at fair value on a recurring basis.
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Stock-Based Compensation (Tables) |
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Apr. 02, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Stock Option Plans Activity |
A summary of activity under Nucor’s stock option plans for the first quarter of 2022 is as follows (shares in thousands):
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| Summary of Nucor's Restricted Stock Unit ("RSU") Activity |
A summary of Nucor’s restricted stock unit (“RSU”) activity for the first quarter of 2022 is as follows (shares in thousands):
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| Summary of Nucor's Restricted Stock Activity under AIP and LTIP |
A summary of Nucor’s restricted stock activity under the Nucor Corporation Senior Officers Annual Incentive Plan (a supplement to the Nucor Corporation 2014 Omnibus Incentive Compensation Plan, the “AIP”) and the Nucor Corporation Senior Officers Long-Term Incentive Plan (a supplement to the Nucor Corporation 2014 Omnibus Incentive Compensation Plan, the “LTIP”) for the first quarter of 2022 is as follows (shares in thousands):
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Interest Expense (Income) (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
| Banking And Thrift Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Components of Net Interest Expense |
The components of net interest expense for the first quarter of 2022 and 2021 are as follows (in thousands):
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Stockholders' Equity (Tables) |
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| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Changes in Stockholders' Equity |
The following tables reflect the changes in stockholders’ equity attributable to Nucor and the noncontrolling interests of Nucor’s joint ventures, Nucor-Yamato Steel Company (Limited Partnership) (“NYS”) and California Steel Industries, Inc. (“CSI”), both of which Nucor owns 51%, for the three months ended April 2, 2022 and April 3, 2021 (in thousands):
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Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Accumulated Other Comprehensive Income (Loss) |
The following tables reflect the changes in accumulated other comprehensive income (loss) by component for the three months ended April 2, 2022 and April 3, 2021 (in thousands):
(1) Includes $(5,390) and $501 net-of-tax impact of accumulated other comprehensive income (loss) reclassifications into cost of products sold for net (gains) losses on commodity contracts in the first quarter of 2022 and 2021, respectively. The tax impact of those reclassifications was $(1,700) and $100 in the first quarter of 2022 and 2021, respectively. |
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Segments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segments |
Nucor’s results by segment for the first quarter of 2022 and 2021 were as follows (in thousands):
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Revenue (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue From Contract With Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Net Sales Disaggregates by Major Source |
The following tables disaggregate our revenue by major source for the first quarter of 2022 and 2021 (in thousands):
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Earnings Per Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Computations of Basic and Diluted Net Earnings Per Share |
The computations of basic and diluted net earnings per share for the first quarter of 2022 and 2021 are as follows (in thousands, except per share amounts):
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| Anti-dilutive Stock Options |
The following stock options were excluded from the computation of diluted net earnings per share for the first quarter of 2022 and 2021 because their effect would have been anti-dilutive (shares in thousands):
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Acquisitions (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Fair Values of Assets and Liabilities |
The following table summarizes the fair values of 100% of the assets and liabilities of CSI, as well as the fair value of the 49% noncontrolling interest not acquired by Nucor, as of February 1, 2022, the date of the acquisition of Nucor’s 51% controlling ownership position (in thousands):
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Inventories - Additional Information (Detail) |
Apr. 02, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Inventory Disclosure [Abstract] | ||
| Raw materials and supplies in inventory, percentage | 43.00% | 43.00% |
| Finished and semi-finished products in inventory, percentage | 57.00% | 57.00% |
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Millions |
Apr. 02, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Property Plant And Equipment [Abstract] | ||
| Accumulated depreciation | $ 10,570 | $ 10,390 |
Goodwill and Other Intangible Assets - Schedule of Change in Net Carrying Amount of Goodwill by Segment (Detail) $ in Thousands |
3 Months Ended |
|---|---|
|
Apr. 02, 2022
USD ($)
| |
| Goodwill [Line Items] | |
| Balance, beginning of period | $ 2,827,344 |
| Acquisitions | 69,035 |
| Translation | 7,755 |
| Balance, end of period | 2,904,134 |
| Steel Mills [Member] | |
| Goodwill [Line Items] | |
| Balance, beginning of period | 613,175 |
| Acquisitions | 69,097 |
| Balance, end of period | 682,272 |
| Steel Products [Member] | |
| Goodwill [Line Items] | |
| Balance, beginning of period | 1,439,874 |
| Acquisitions | (62) |
| Translation | 7,755 |
| Balance, end of period | 1,447,567 |
| Raw Materials [Member] | |
| Goodwill [Line Items] | |
| Balance, beginning of period | 774,295 |
| Balance, end of period | $ 774,295 |
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) |
3 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|
Apr. 02, 2022 |
Dec. 31, 2021 |
Apr. 03, 2021 |
Dec. 31, 2021 |
|
| Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
| Impairment of goodwill | $ 0 | |||
| Goodwill | $ 2,904,134,000 | 2,827,344,000 | $ 2,827,344,000 | |
| Finite-lived intangible assets | 1,063,210,000 | 1,103,759,000 | $ 1,103,759,000 | |
| Intangible asset amortization expense | 41,400,000 | $ 21,100,000 | ||
| Future amortization expense, in 2022 | 154,600,000 | |||
| Future amortization expense, in 2023 | 132,900,000 | |||
| Future amortization expense, in 2024 | 132,100,000 | |||
| Future amortization expense, in 2025 | 131,200,000 | |||
| Future amortization expense, in 2026 | $ 128,200,000 | |||
| Minimum [Member] | ||||
| Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
| Intangible assets, useful life | 5 years | |||
| Maximum [Member] | ||||
| Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
| Intangible assets, useful life | 22 years | |||
| Rebar Fabrication [Member] | ||||
| Finite And Indefinite Lived Intangible Assets [Line Items] | ||||
| Percentage of fair value exceeded carrying value | 54.00% | |||
| Goodwill | $ 369,800,000 | 363,000,000 | $ 363,000,000 | |
| Finite-lived intangible assets | $ 43,500,000 | $ 45,000,000 | $ 45,000,000 | |
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands |
Apr. 02, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Finite-Lived Intangible Assets [Line Items] | ||
| Intangible assets, Gross Amount | $ 2,195,987 | $ 2,195,125 |
| Intangible assets, Accumulated Amortization | 1,132,777 | 1,091,366 |
| Customer Relationships [Member] | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Intangible assets, Gross Amount | 1,872,636 | 1,872,348 |
| Intangible assets, Accumulated Amortization | 952,967 | 924,506 |
| Trademarks and Trade Names [Member] | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Intangible assets, Gross Amount | 217,829 | 217,255 |
| Intangible assets, Accumulated Amortization | 104,161 | 99,906 |
| Other [Member] | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Intangible assets, Gross Amount | 105,522 | 105,522 |
| Intangible assets, Accumulated Amortization | $ 75,649 | $ 66,954 |
Current Liabilities - Additional Information (Detail) - USD ($) $ in Millions |
Apr. 02, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Liabilities Current [Abstract] | ||
| Book overdrafts | $ 128.1 | $ 143.8 |
| Dividends payable, current | $ 134.5 | $ 137.6 |
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands |
Apr. 02, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Short-term investments | $ 446,868 | $ 253,005 |
| Total assets | 28,632,868 | 25,823,072 |
| Reported Value Measurement [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Cash equivalents | 3,129,506 | 1,776,477 |
| Short-term investments | 446,868 | 253,005 |
| Restricted cash and cash equivalents | 88,242 | 143,800 |
| Derivative contracts, assets | 69,020 | 6,633 |
| Total assets | 3,733,636 | 2,179,915 |
| Derivative contracts, liabilities | (5,457) | (2,666) |
| Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Cash equivalents | 3,129,506 | 1,776,477 |
| Short-term investments | 446,868 | 253,005 |
| Restricted cash and cash equivalents | 88,242 | 143,800 |
| Total assets | 3,664,616 | 2,173,282 |
| Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Derivative contracts, assets | 69,020 | 6,633 |
| Total assets | 69,020 | 6,633 |
| Derivative contracts, liabilities | $ (5,457) | $ (2,666) |
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions |
Apr. 02, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Fair Value Disclosures [Abstract] | ||
| Fair value of short-term and long-term debt, including current maturities | $ 6,770 | $ 6,060 |
Stock-Based Compensation - Schedule of Stock Option Plans Activity (Detail) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended |
|---|---|
|
Apr. 02, 2022
USD ($)
$ / shares
shares
| |
| Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
| Outstanding at beginning of year, Shares | shares | 1,186 |
| Exercised, Shares | shares | (310) |
| Outstanding at April 2, 2022, Shares | shares | 876 |
| Stock options exercisable at April 2, 2022, Shares | shares | 213 |
| Outstanding at beginning of year, Weighted - Average Exercise Price | $ / shares | $ 55.58 |
| Exercised, Weighted - Average Exercise Price | $ / shares | 53.51 |
| Outstanding at April 2, 2022, Weighted - Average Exercise Price | $ / shares | 56.31 |
| Stock options exercisable at April 2, 2022, Weighted - Average Exercise Price | $ / shares | $ 56.46 |
| Outstanding, Weighted - Average Remaining Contractual Life | 7 years 6 months |
| Stock options exercisable, Weighted - Average Remaining Contractual Life | 5 years 8 months 12 days |
| Exercised, Aggregate Intrinsic Value | $ | $ 20,040 |
| Outstanding at April 2, 2022, Aggregate Intrinsic Value | $ | 81,417 |
| Stock options exercisable, Aggregate Intrinsic Value | $ | $ 19,761 |
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Compensation expenses for stock options | $ 0.5 | $ 0.3 |
| Stock Options [Member] | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Unrecognized compensation expense related to stock | $ 2.6 | |
| Weighted-average recognition period for unrecognized compensation expense related to stock (years) | 1 year 9 months 18 days | |
| Restricted Stock Units [Member] | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Unrecognized compensation expense related to stock | $ 34.6 | |
| Weighted-average recognition period for unrecognized compensation expense related to stock (years) | 10 months 24 days | |
| Compensation expense | $ 9.0 | 9.3 |
| Restricted Stock Awards and Units [Member] | AIP and LTIP [Member] | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Unrecognized compensation expense related to stock | $ 8.7 | |
| Weighted-average recognition period for unrecognized compensation expense related to stock (years) | 2 years 4 months 24 days | |
| Compensation expense | $ 17.0 | $ 10.2 |
Stock-Based Compensation - Summary of Nucor's Restricted Stock Unit ("RSU") Activity (Detail) - Restricted Stock Units [Member] shares in Thousands |
3 Months Ended |
|---|---|
|
Apr. 02, 2022
$ / shares
shares
| |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Unvested at beginning of year, Shares | shares | 1,167 |
| Vested, Shares | shares | (14) |
| Canceled, Shares | shares | (3) |
| Unvested at April 2, 2022, Shares | shares | 1,150 |
| Unvested at beginning of year, Grant Date Fair Value | $ / shares | $ 60.45 |
| Vested, Grant Date Fair Value | $ / shares | 60.40 |
| Canceled, Grant Date Fair Value | $ / shares | 66.00 |
| Unvested at April 2,2022, Grant Date Fair Value | $ / shares | $ 60.44 |
Stock-Based Compensation - Summary of Nucor's Restricted Stock Activity under AIP and LTIP (Detail) - Restricted Stock Units and Restricted Stock Awards [Member] shares in Thousands |
3 Months Ended |
|---|---|
|
Apr. 02, 2022
$ / shares
shares
| |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Unvested at beginning of year, Shares | shares | 107 |
| Granted, Shares | shares | 465 |
| Vested, Shares | shares | (341) |
| Unvested at April 2, 2022, Shares | shares | 231 |
| Unvested at beginning of year, Grant Date Fair Value | $ / shares | $ 57.17 |
| Granted, Grant Date Fair Value | $ / shares | 128.62 |
| Vested, Grant Date Fair Value | $ / shares | 119.52 |
| Unvested at April 2,2022, Grant Date Fair Value | $ / shares | $ 109.02 |
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
|
| Employee Benefit Plan [Abstract] | ||
| Profit Sharing and Retirement Savings Plan, plan expense | $ 286.9 | $ 129.0 |
Interest Expense (Income) - Schedule of Components of Net Interest Expense (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
|
| Interest Revenue Or Expense Net [Abstract] | ||
| Interest expense | $ 44,076 | $ 40,970 |
| Interest income | (941) | (1,326) |
| Interest expense, net | $ 43,135 | $ 39,644 |
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | ||
|---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
Dec. 31, 2021 |
|
| Income Tax Disclosure [Abstract] | |||
| Effective income tax rate | 23.20% | 23.90% | |
| Non-current deferred tax liabilities included in deferred credits and other liabilities | $ 740.4 | $ 610.3 | |
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | ||
|---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
Dec. 02, 2021 |
|
| Dividends declared per share | $ 0.50 | $ 0.405 | |
| Common Stock [Member] | |||
| Share repurchase program, available repurchase amount | $ 2,940 | ||
| Common Stock [Member] | Maximum [Member] | |||
| Stock Repurchase Program, Authorized Amount | $ 4,000 | ||
| Nucor-Yamato Steel Company and California Steel Industries [Member] | |||
| Noncontrolling interest, ownership percentage by parent | 51.00% | 51.00% | |
Stockholders' Equity - Schedule of Change in Stockholder's Equity (Detail) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
|
| BALANCES, beginning of period | $ 14,603,794 | $ 11,231,861 |
| Net earnings | 2,227,115 | 987,514 |
| Other comprehensive income (loss) | 70,778 | 15,301 |
| Stock options exercised | $ 16,586 | 107,524 |
| Stock options exercised (in shares) | 310 | |
| Stock option expense | $ 458 | 333 |
| Issuance of stock under award plans, net of forfeitures | 43,098 | 15,602 |
| Amortization of unearned compensation | 1,400 | 1,900 |
| Treasury stock value acquired | (905,324) | (301,859) |
| Cash dividends declared | (134,446) | (122,658) |
| Distributions to noncontrolling interests | (211,558) | (73,795) |
| Acquisition of noncontrolling interest in CSI | 431,219 | |
| BALANCES, end of period | 16,143,120 | 11,861,723 |
| Common Stock [Member] | ||
| BALANCES, beginning of period | $ 152,061 | $ 152,061 |
| BALANCES, shares at beginning of period | 380,154 | 380,154 |
| BALANCES, end of period | $ 152,061 | $ 152,061 |
| BALANCES, shares at end of period | 380,154 | 380,154 |
| Additional Paid-in Capital [Member] | ||
| BALANCES, beginning of period | $ 2,140,608 | $ 2,121,288 |
| Stock options exercised | (507) | 30,488 |
| Stock option expense | 458 | 333 |
| Issuance of stock under award plans, net of forfeitures | 21,170 | 6,900 |
| Amortization of unearned compensation | 1,400 | 1,900 |
| BALANCES, end of period | 2,163,129 | 2,160,909 |
| Retained Earnings [Member] | ||
| BALANCES, beginning of period | 17,674,100 | 11,343,852 |
| Net earnings | 2,095,623 | 942,432 |
| Cash dividends declared | (134,446) | (122,658) |
| BALANCES, end of period | 19,635,277 | 12,163,626 |
| Accumulated Other Comprehensive Income (Loss) [Member] | ||
| BALANCES, beginning of period | (115,282) | (118,861) |
| Other comprehensive income (loss) | 70,778 | 15,301 |
| BALANCES, end of period | (44,504) | (103,560) |
| Treasury Stock (at cost) [Member] | ||
| BALANCES, beginning of period | $ (5,835,098) | $ (2,709,675) |
| BALANCES, shares at beginning of period | 107,742 | 77,909 |
| Stock options exercised | $ 17,093 | $ 77,036 |
| Stock options exercised (in shares) | (310) | (2,135) |
| Issuance of stock under award plans, net of forfeitures | $ 21,928 | $ 8,702 |
| Issuance of stock under award plans, net of forfeitures, shares | (388) | (242) |
| Treasury stock value acquired | $ (905,324) | $ (301,859) |
| Treasury stock acquired (in shares) | 7,048 | 5,380 |
| BALANCES, end of period | $ (6,701,401) | $ (2,925,796) |
| BALANCES, shares at end of period | 114,092 | 80,912 |
| Total Nucor Stockholders' Equity [Member] | ||
| BALANCES, beginning of period | $ 14,016,389 | $ 10,788,665 |
| Net earnings | 2,095,623 | 942,432 |
| Other comprehensive income (loss) | 70,778 | 15,301 |
| Stock options exercised | 16,586 | 107,524 |
| Stock option expense | 458 | 333 |
| Issuance of stock under award plans, net of forfeitures | 43,098 | 15,602 |
| Amortization of unearned compensation | 1,400 | 1,900 |
| Treasury stock value acquired | (905,324) | (301,859) |
| Cash dividends declared | (134,446) | (122,658) |
| BALANCES, end of period | 15,204,562 | 11,447,240 |
| Noncontrolling Interests [Member] | ||
| BALANCES, beginning of period | 587,405 | 443,196 |
| Net earnings | 131,492 | 45,082 |
| Distributions to noncontrolling interests | (211,558) | (73,795) |
| Acquisition of noncontrolling interest in CSI | 431,219 | |
| BALANCES, end of period | $ 938,558 | $ 414,483 |
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands |
3 Months Ended | |||
|---|---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
|||
| Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||||
| Beginning Balance, Gains and (Losses) on Hedging Derivatives | $ 1,112 | $ (4,700) | ||
| Other comprehensive income (loss) before reclassifications, Gains and (Losses) on Hedging Derivatives | 53,476 | 999 | ||
| Amounts reclassified from accumulated other comprehensive income (loss) into earnings, Gains and (Losses) on Hedging Derivatives | [1] | (5,390) | 501 | |
| Net current-period other comprehensive income (loss), Gains and (Losses) on Hedging Derivatives | 48,086 | 1,500 | ||
| Ending Balance, Gains and (Losses) on Hedging Derivatives | 49,198 | (3,200) | ||
| Beginning Balance, Foreign Currency Gains (Losses) | (124,868) | (120,827) | ||
| Other comprehensive income (loss) before reclassifications, Foreign Currency Gains (Losses) | 22,692 | 13,801 | ||
| Net current-period other comprehensive income (loss), Foreign Currency Gains (Losses) | 22,692 | 13,801 | ||
| Ending Balance, Foreign Currency Gains (Losses) | (102,176) | (107,026) | ||
| Beginning Balance, Adjustment to Early Retiree Medical Plan | 8,474 | 6,666 | ||
| Ending Balance, Adjustment to Early Retiree Medical Plan | 8,474 | 6,666 | ||
| Beginning Balance | (115,282) | (118,861) | ||
| Other comprehensive income (loss) before reclassifications | 76,168 | 14,800 | ||
| Amounts reclassified from accumulated other comprehensive income (loss) into earnings | [1] | (5,390) | 501 | |
| Net current-period other comprehensive income (loss) | 70,778 | 15,301 | ||
| Ending Balance | $ (44,504) | $ (103,560) | ||
| ||||
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Thousands |
3 Months Ended | |||
|---|---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
|||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
| Amounts reclassified from accumulated other comprehensive income (loss) into earnings, Gains and (Losses) on Hedging Derivatives | [1] | $ (5,390) | $ 501 | |
| Reclassification adjustment for (gain) loss on settlement of hedging derivatives included in net earnings, tax effect | (1,700) | 100 | ||
| Cost of Products Sold [Member] | ||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
| Amounts reclassified from accumulated other comprehensive income (loss) into earnings, Gains and (Losses) on Hedging Derivatives | (5,390) | 501 | ||
| Reclassification adjustment for (gain) loss on settlement of hedging derivatives included in net earnings, tax effect | $ (1,700) | $ 100 | ||
| ||||
Segments - Segments (Detail) - USD ($) $ in Thousands |
3 Months Ended | ||
|---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
Dec. 31, 2021 |
|
| Segment Reporting Information [Line Items] | |||
| Net sales | $ 10,493,282 | $ 7,017,140 | |
| Earnings (losses) before income taxes and noncontrolling interests | 2,898,115 | 1,298,246 | |
| Total assets | 28,632,868 | $ 25,823,072 | |
| Operating Segments [Member] | Steel Mills [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Net sales | 6,518,609 | 4,608,777 | |
| Earnings (losses) before income taxes and noncontrolling interests | 2,578,854 | 1,314,974 | |
| Total assets | 14,458,171 | 13,235,463 | |
| Operating Segments [Member] | Steel Products [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Net sales | 3,323,088 | 1,810,055 | |
| Earnings (losses) before income taxes and noncontrolling interests | 684,867 | 211,812 | |
| Total assets | 8,014,507 | 7,845,010 | |
| Operating Segments [Member] | Raw Materials [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Net sales | 651,585 | 598,308 | |
| Earnings (losses) before income taxes and noncontrolling interests | 95,853 | 223,235 | |
| Total assets | 3,709,087 | 3,870,806 | |
| Intercompany Eliminations [Member] | Steel Mills [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Net sales | 1,593,258 | 1,225,113 | |
| Intercompany Eliminations [Member] | Steel Products [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Net sales | 134,706 | 71,219 | |
| Intercompany Eliminations [Member] | Raw Materials [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Net sales | 3,546,519 | 3,646,195 | |
| Corporate and Eliminations Items [Member] | |||
| Segment Reporting Information [Line Items] | |||
| Net sales | (5,274,483) | (4,942,527) | |
| Earnings (losses) before income taxes and noncontrolling interests | (461,459) | $ (451,775) | |
| Total assets | $ 2,451,103 | $ 871,793 | |
Revenue - Schedule of Net Sales Disaggregates by Major Source (Detail) - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
|
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | $ 10,493,282 | $ 7,017,140 |
| Sheet [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 3,183,063 | 2,351,455 |
| Bar [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 1,827,731 | 1,261,042 |
| Structural [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 783,271 | 477,195 |
| Plate [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 724,544 | 519,085 |
| Tubular Products [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 610,300 | 374,653 |
| Rebar Fabrication [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 445,232 | 386,557 |
| Joist [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 612,235 | 229,129 |
| Deck [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 550,909 | 193,413 |
| Other Steel Products [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 1,104,412 | 626,303 |
| Raw Materials [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 651,585 | 598,308 |
| Steel Mills [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 6,518,609 | 4,608,777 |
| Steel Mills [Member] | Sheet [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 3,183,063 | 2,351,455 |
| Steel Mills [Member] | Bar [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 1,827,731 | 1,261,042 |
| Steel Mills [Member] | Structural [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 783,271 | 477,195 |
| Steel Mills [Member] | Plate [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 724,544 | 519,085 |
| Steel Products [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 3,323,088 | 1,810,055 |
| Steel Products [Member] | Tubular Products [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 610,300 | 374,653 |
| Steel Products [Member] | Rebar Fabrication [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 445,232 | 386,557 |
| Steel Products [Member] | Joist [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 612,235 | 229,129 |
| Steel Products [Member] | Deck [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 550,909 | 193,413 |
| Steel Products [Member] | Other Steel Products [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 1,104,412 | 626,303 |
| Raw Materials [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | 651,585 | 598,308 |
| Raw Materials [Member] | Raw Materials [Member] | ||
| Revenue from Contract with Customers [Line Items] | ||
| Revenues | $ 651,585 | $ 598,308 |
Revenue - Additional Information (Detail) - USD ($) $ in Millions |
Apr. 02, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Revenue From Contract With Customer [Abstract] | ||
| Contract liabilities | $ 345.7 | $ 251.9 |
Earnings Per Share - Computations of Basic and Diluted Net Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
|
| Earnings Per Share [Abstract] | ||
| Basic net earnings | $ 2,095,623 | $ 942,432 |
| Earnings allocated to participating securities, Basic | (8,420) | (5,376) |
| Net earnings available to common stockholders, Basic | $ 2,087,203 | $ 937,056 |
| Basic average shares outstanding | 271,564 | 301,846 |
| Basic net earnings per share | $ 7.69 | $ 3.10 |
| Diluted net earnings | $ 2,095,623 | $ 942,432 |
| Earnings allocated to participating securities, Diluted | (8,385) | (5,363) |
| Net earnings available to common stockholders, Diluted | $ 2,087,238 | $ 937,069 |
| Dilutive effect of stock options and other | 530 | 672 |
| Diluted average shares outstanding | 272,094 | 302,518 |
| Diluted net earnings per share | $ 7.67 | $ 3.10 |
Earnings Per Share - Anti-dilutive Stock Options (Detail) shares in Thousands |
3 Months Ended |
|---|---|
|
Apr. 03, 2021
$ / shares
shares
| |
| Earnings Per Share [Abstract] | |
| Weighted-average shares | shares | 249 |
| Weighted-average exercise price | $ / shares | $ 65.80 |
Debt and Other Financing Arrangements - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | |||
|---|---|---|---|---|
Apr. 25, 2022 |
Mar. 11, 2022 |
Apr. 02, 2022 |
Sep. 30, 2022 |
|
| Debt Instrument [Line Items] | ||||
| Net proceeds of debt issuance and sale of Notes | $ 1,090,000 | |||
| Debt issuance and sale costs of Notes | 15,300 | |||
| Redemption amount | $ 2,500 | |||
| Notes, 3.125%, due 2032 [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Debt instrument face amount | $ 550,000 | |||
| Debt instrument interest rate | 3.125% | |||
| Debt instrument - maturity year | 2032 | |||
| Notes, 3.850%, due 2052 [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Debt instrument face amount | $ 550,000 | |||
| Debt instrument interest rate | 3.85% | |||
| Debt instrument - maturity year | 2052 | |||
| Notes, 4.125%, due 2022 [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Debt instrument face amount | $ 600,000 | |||
| Debt instrument interest rate | 4.125% | |||
| Debt instrument - maturity year | 2022 | |||
| Notes, 4.125%, due 2022 [Member] | Scenario Forecast [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Debt instrument face amount | $ 600,000 | |||
| Notes, 4.000%, due 2023 [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Debt instrument face amount | $ 500,000 | |||
| Debt instrument interest rate | 4.00% | |||
| Debt instrument - maturity year | 2023 | |||
| Notes, 4.000%, due 2023 [Member] | Subsequent Event [Member] | ||||
| Debt Instrument [Line Items] | ||||
| Redemption amount | $ 500,000 |
Acquisitions - Additional Information (Details) - USD ($) $ in Thousands |
Feb. 01, 2022 |
Apr. 02, 2022 |
Dec. 31, 2021 |
|---|---|---|---|
| Business Acquisition [Line Items] | |||
| Goodwill | $ 2,904,134 | $ 2,827,344 | |
| CSI [Member] | |||
| Business Acquisition [Line Items] | |||
| Acquired controlling ownership percentage | 51.00% | ||
| Business acquisition, purchase price | $ 400,000 | ||
| Percentage of assets and liabilities | 100.00% | ||
| Business combination noncontrolling interest fair value percentage not acquired by Nucor | 49.00% | ||
| Implied percentage to determine fair value of noncontrolling interest | 100.00% | ||
| Goodwill | $ 69,097 | ||
| CSI [Member] | Vale S.A [Member] | |||
| Business Acquisition [Line Items] | |||
| Acquired controlling ownership percentage | 50.00% | ||
| CSI [Member] | JFE Steel Corporation [Member] | |||
| Business Acquisition [Line Items] | |||
| Acquired controlling ownership percentage | 1.00% |
Acquisitions - Summary of Fair Values of Assets and Liabilities (Detail) - USD ($) $ in Thousands |
Apr. 02, 2022 |
Feb. 01, 2022 |
Dec. 31, 2021 |
|---|---|---|---|
| Business Acquisition [Line Items] | |||
| Goodwill | $ 2,904,134 | $ 2,827,344 | |
| CSI [Member] | |||
| Business Acquisition [Line Items] | |||
| Cash | $ 98,537 | ||
| Accounts receivable | 159,257 | ||
| Inventory | 354,614 | ||
| Other current assets | 5,298 | ||
| Property, plant and equipment | 561,812 | ||
| Goodwill | 69,097 | ||
| Other assets | 11,973 | ||
| Total assets acquired | 1,260,588 | ||
| Current portion of long-term debt | 9,826 | ||
| Other current liabilities | 162,808 | ||
| Long-term debt due after one year | 67,866 | ||
| Other liabilities | 140,050 | ||
| Total liabilities assumed | 380,550 | ||
| Net assets acquired at 100% | 880,038 | ||
| Less: Fair value of noncontrolling interest | 431,219 | ||
| Net assets acquired at 51% | $ 448,819 |