Debt and Other Financing Arrangements

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Debt and Other Financing Arrangements

11. Debt and Other Financing Arrangements

	(in thousands)
December 31,	2022		2021
Industrial revenue bonds due from 2022 to 2061 (1)	$	1,349,230	$	1,350,230
Notes, 4.125%, due 2022		—		600,000
Notes, 4.000%, due 2023		—		500,000
Notes, 2.000%, due 2025		500,000		500,000
Notes, 3.950%, due 2025		500,000		—
Notes, 4.300%, due 2027		500,000		—
Term notes, 2.950%, due 2027 (2)		67,866		—
Notes, 3.950%, due 2028		500,000		500,000
Notes, 2.700%, due 2030		500,000		500,000
Notes, 3.125%, due 2032		550,000		—
Notes, 6.400%, due 2037		543,331		543,331
Notes, 5.200%, due 2043		338,133		338,133
Notes, 4.400%, due 2048		329,219		329,219
Notes, 3.850%, due 2052		550,000		—
Notes, 2.979%, due 2055		439,312		439,312
Finance lease obligations		188,386		179,053
Total long-term debt and finance lease obligations		6,855,477		5,779,278
Less premium on debt exchange		169,737		174,891
Less debt issuance costs		43,471		27,299
Total amounts outstanding		6,642,269		5,577,088
Less current maturities of long-term debt (2)		10,000		601,000
Less current portion of finance lease obligations		18,582		14,678
Total long-term debt and finance lease obligations due after    one year	$	6,613,687	$	4,961,410

(1) The industrial revenue bonds had variable rates ranging from 3.65% to 4.28% at December 31, 2022 and 0.14% to 0.18% at December 31, 2021.

(2)   The term notes were assumed in conjunction with the acquisition of 51% ownership of CSI on February 1, 2022.  The original principal amount of the notes was $101.0 million, with a fixed rate of 2.95% until September 30, 2026 when they will convert to a floating rate equal to LIBOR plus 1.00%. Payments of $2.5 million are due quarterly along with accrued interest. The term notes mature on March 31, 2027. (See Note 25.)

Annual aggregate long-term debt maturities are: $10.0 million in 2023, $10.0 million in 2024, $1.01 billion in 2025, $31.5 million in 2026, $527.9 million in 2027 and $5.08 billion thereafter.

On November 5, 2021, Nucor amended and restated its revolving credit facility to increase the borrowing capacity from $1.50 billion to $1.75 billion and to extend its maturity date to November 5, 2026. This facility remains undrawn. Costs associated with the amendment were immaterial. The unsecured revolving credit facility provides up to $1.75 billion in revolving loans and allows up to $500.0 million in additional commitments at Nucor’s election in accordance with the terms set forth in the credit agreement. Up to $100.0 million of the credit facility is available for the issuance of letters of credit and up to $500.0 million is available for the issuance of revolving loans for Nucor subsidiaries in accordance with the terms set forth in the credit agreement. The credit facility provides for a pricing grid based upon the credit rating of Nucor’s senior unsecured long-term debt and, alternatively, interest rates quoted by lenders in connection with competitive bidding. The credit facility includes customary financial and other covenants, including a limit on the ratio of funded debt to total capital of 60%, a limit on Nucor’s ability to pledge the Company’s assets and a limit on consolidations, mergers and sales of assets. As of December 31, 2022, Nucor’s funded debt to total capital ratio was 25%, and Nucor was in compliance with all covenants under the credit facility. No borrowings were outstanding under the credit facility as of December 31, 2022 and 2021.

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 “2032/2052 Notes”). The net proceeds from the issuance and sale of the 2032/2052 Notes were used along with cash on hand to redeem 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. The net proceeds from the issuance and sale of the 2032/2052 Notes were $1.09 billion, after expenses and the underwriting discount. Costs of $15.3 million associated with the issuance and sale of the 2032/2052 Notes have been capitalized and will be amortized over the life of the March 2022 Notes.

On April 25, 2022, Nucor redeemed all $500.0 million aggregate principal amount outstanding of the 2023 Notes using a portion of the net proceeds from the issuance and sale of the 2032/2052 Notes. On August 15, 2022, Nucor redeemed all $600.0 million aggregate principal amount outstanding of the 2022 Notes using the remaining portion of the net proceeds from the issuance and sale of the 2032/2052 Notes.

On May 23, 2022, Nucor completed the issuance and sale of $500.0 million aggregate principal amount of its 3.950% Notes due 2025 (the “2025 Notes”) and $500.0 million aggregate principal amount of its 4.300% Notes due 2027 (the “2027 Notes” and, together with the 2025 Notes, the “2025/2027 Notes”). The net proceeds from the issuance and sale of the 2025/2027 Notes were used for general corporate purposes and to pay a portion of the purchase price for the acquisition of C.H.I. The net proceeds from the issuance and sale of the 2025/2027 Notes were $991.9 million, after expenses and the underwriting discount. Costs of $5.9 million associated with the issuance and sale of the 2025/2027 Notes have been capitalized and will be amortized over the life of the 2025/2027 Notes.

Harris Steel has credit facilities totaling approximately $18.3 million, with no outstanding borrowings at December 31, 2022 and 2021. In addition, the business of Nucor Trading S.A. is financed by uncommitted trade credit arrangements with a number of European banking institutions. As of December 31, 2022, Nucor Trading S.A. had outstanding borrowings of $49.1 million, which are presented in short-term debt in the consolidated balance sheet ($107.7 million as of December 31, 2021).

Letters of credit totaling $43.5 million were outstanding as of December 31, 2022 ($98.7 million as of December 31, 2021), related to certain obligations, including workers’ compensation, utilities deposits and credit arrangements by Nucor Trading S.A. for commitments to purchase inventories.