10-Q 1 nue-20240330.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 30, 2024

OR

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: 1-4119

 

NUCOR CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

13-1860817

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

1915 Rexford Road, Charlotte, North Carolina

 

28211

(Address of principal executive offices)

 

(Zip Code)

(704) 366-7000

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.40 per share

 

NUE

 

New York Stock Exchange

 

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. Yes No

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). Yes No

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.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

 

 

Emerging growth company

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 No

239,761,770 shares of the registrant’s common stock were outstanding at March 30, 2024.

 


Nucor Corporation

Quarterly Report on Form 10-Q

For the Three Months Ended March 30, 2024

Table of Contents

 

 

 

 

 

 

 

Page

Part I

 

Financial Information

 

 

 

 

 

 

 

 

 

 

 

Item 1

 

Financial Statements (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Earnings – Three Months (13 Weeks) Ended March 30, 2024 and April 1, 2023

 

1

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income – Three Months (13 Weeks) Ended March 30, 2024 and April 1, 2023

 

2

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets – March 30, 2024 and December 31, 2023

 

3

 

 

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows – Three Months (13 Weeks) Ended March 30, 2024 and April 1, 2023

 

4

 

 

 

 

 

 

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements

 

5

 

 

 

 

 

 

 

 

 

Item 2

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

15

 

 

 

 

 

 

 

 

 

Item 3

 

Quantitative and Qualitative Disclosures About Market Risk

 

22

 

 

 

 

 

 

 

 

 

Item 4

 

Controls and Procedures

 

23

 

 

 

 

 

 

 

Part II

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

Item 1

 

Legal Proceedings

 

24

 

 

 

 

 

 

 

 

 

Item 1A

 

Risk Factors

 

24

 

 

 

 

 

 

 

 

 

Item 2

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

24

 

 

 

 

 

 

 

 

 

Item 5

 

Other Information

 

24

 

 

 

 

 

 

 

 

 

Item 6

 

Exhibits

 

25

 

 

 

 

 

 

 

Signatures

 

26

 

 

 

 

 

 

 

 

 

i


 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Nucor Corporation Condensed Consolidated Statements of Earnings (Unaudited)

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

Three Months (13 Weeks) Ended

 

 

 

March 30, 2024

 

 

April 1, 2023

 

Net sales

 

$

8,137,083

 

 

$

8,709,980

 

Costs, expenses and other:

 

 

 

 

 

 

Cost of products sold

 

 

6,613,903

 

 

 

6,711,778

 

Marketing, administrative and other expenses

 

 

345,395

 

 

 

389,895

 

Equity in (earnings) losses of unconsolidated affiliates

 

 

(9,769

)

 

 

1,340

 

Interest (income) expense, net

 

 

(37,787

)

 

 

10,183

 

 

 

6,911,742

 

 

 

7,113,196

 

Earnings before income taxes and noncontrolling interests

 

 

1,225,341

 

 

 

1,596,784

 

Provision for income taxes

 

 

266,379

 

 

 

365,155

 

Net earnings before noncontrolling interests

 

 

958,962

 

 

 

1,231,629

 

Earnings attributable to noncontrolling interests

 

 

114,121

 

 

 

95,087

 

Net earnings attributable to Nucor stockholders

 

$

844,841

 

 

$

1,136,542

 

Net earnings per share:

 

 

 

 

 

 

Basic

 

$

3.46

 

 

$

4.47

 

Diluted

 

$

3.46

 

 

$

4.45

 

Average shares outstanding:

 

 

 

 

 

 

Basic

 

 

243,098

 

 

 

253,608

 

Diluted

 

 

243,497

 

 

 

254,397

 

 

 

 

 

 

 

 

See notes to condensed consolidated financial statements.

 

1


 

Nucor Corporation Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(In thousands)

 

 

 

Three Months (13 Weeks) Ended

 

 

 

March 30, 2024

 

 

April 1, 2023

 

Net earnings before noncontrolling interests

 

$

958,962

 

 

$

1,231,629

 

Other comprehensive loss:

 

 

 

 

 

 

Net unrealized loss on hedging derivatives, net
   of income taxes of $(
1,700) and $(7,800) for the first
   quarter of 2024 and 2023, respectively

 

 

(5,241

)

 

 

(24,575

)

Reclassification adjustment for settlement of hedging
   derivatives included in net earnings, net of income
   taxes of $
1,800 and $100 for the first quarter of
   2024 and 2023, respectively

 

 

5,341

 

 

 

175

 

Foreign currency translation gain (loss), net of income
   taxes of $
0 for the first quarter of 2024 and 2023

 

 

(15,468

)

 

 

(3,441

)

 

 

(15,368

)

 

 

(27,841

)

Comprehensive income

 

 

943,594

 

 

 

1,203,788

 

Comprehensive income attributable to noncontrolling
   interests

 

 

114,121

 

 

 

95,087

 

Comprehensive income attributable to Nucor stockholders

 

$

829,473

 

 

$

1,108,701

 

 

See notes to condensed consolidated financial statements.

2


 

Nucor Corporation Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)

 

 

 

March 30, 2024

 

 

Dec. 31, 2023

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,557,759

 

 

$

6,383,298

 

Short-term investments

 

 

981,179

 

 

 

747,479

 

Accounts receivable, net

 

 

3,157,184

 

 

 

2,953,311

 

Inventories, net

 

 

5,589,675

 

 

 

5,577,758

 

Other current assets

 

 

356,882

 

 

 

724,012

 

Total current assets

 

 

14,642,679

 

 

 

16,385,858

 

Property, plant and equipment, net

 

 

11,456,683

 

 

 

11,049,767

 

Restricted cash and cash equivalents

 

 

46

 

 

 

3,494

 

Goodwill

 

 

3,956,062

 

 

 

3,968,847

 

Other intangible assets, net

 

 

3,049,070

 

 

 

3,108,015

 

Other assets

 

 

827,985

 

 

 

824,518

 

Total assets

 

$

33,932,525

 

 

$

35,340,499

 

LIABILITIES

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Short-term debt

 

$

130,002

 

 

$

119,211

 

Current portion of long-term debt and finance lease obligations

 

 

73,890

 

 

 

74,102

 

Accounts payable

 

 

1,616,366

 

 

 

2,020,289

 

Salaries, wages and related accruals

 

 

686,186

 

 

 

1,326,390

 

Accrued expenses and other current liabilities

 

 

1,139,532

 

 

 

1,054,517

 

Total current liabilities

 

 

3,645,976

 

 

 

4,594,509

 

Long-term debt and finance lease obligations due after one year

 

 

6,647,560

 

 

 

6,648,873

 

Deferred credits and other liabilities

 

 

1,913,470

 

 

 

1,973,363

 

Total liabilities

 

 

12,207,006

 

 

 

13,216,745

 

Commitments and contingencies

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

Nucor stockholders' equity:

 

 

 

 

 

 

Common stock

 

 

152,061

 

 

 

152,061

 

Additional paid-in capital

 

 

2,210,823

 

 

 

2,176,243

 

Retained earnings

 

 

29,476,087

 

 

 

28,762,045

 

Accumulated other comprehensive loss,
   net of income taxes

 

 

(177,440

)

 

 

(162,072

)

Treasury stock

 

 

(10,967,818

)

 

 

(9,987,643

)

Total Nucor stockholders' equity

 

 

20,693,713

 

 

 

20,940,634

 

Noncontrolling interests

 

 

1,031,806

 

 

 

1,183,120

 

Total equity

 

 

21,725,519

 

 

 

22,123,754

 

Total liabilities and equity

 

$

33,932,525

 

 

$

35,340,499

 

 

See notes to condensed consolidated financial statements.

3


 

Nucor Corporation Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

 

 

 

Three Months (13 Weeks) Ended

 

 

 

March 30, 2024

 

 

April 1, 2023

 

Operating activities:

 

 

 

 

 

 

Net earnings before noncontrolling interests

 

$

958,962

 

 

$

1,231,629

 

Adjustments:

 

 

 

 

 

 

Depreciation

 

 

256,938

 

 

 

221,089

 

Amortization

 

 

58,683

 

 

 

58,769

 

Stock-based compensation

 

 

21,341

 

 

 

20,401

 

Deferred income taxes

 

 

(39,627

)

 

 

(28,193

)

Distributions from affiliates

 

 

7,241

 

 

 

17,394

 

Equity in (earnings) losses of unconsolidated affiliates

 

 

(9,769

)

 

 

1,340

 

Changes in assets and liabilities (exclusive of acquisitions and dispositions):

 

 

 

 

 

 

Accounts receivable

 

 

(207,682

)

 

 

(67,505

)

Inventories

 

 

(13,980

)

 

 

(138,694

)

Accounts payable

 

 

(392,403

)

 

 

394,602

 

Federal income taxes

 

 

247,783

 

 

 

330,781

 

Salaries, wages and related accruals

 

 

(595,861

)

 

 

(858,925

)

Other operating activities

 

 

168,027

 

 

 

24,485

 

Cash provided by operating activities

 

 

459,653

 

 

 

1,207,173

 

Investing activities:

 

 

 

 

 

 

Capital expenditures

 

 

(670,340

)

 

 

(531,733

)

Investment in and advances to affiliates

 

 

(79

)

 

 

-

 

Disposition of plant and equipment

 

 

4,439

 

 

 

2,276

 

Acquisitions (net of cash acquired)

 

 

991

 

 

 

-

 

Purchases of investments

 

 

(646,570

)

 

 

(468,412

)

Proceeds from the sale of investments

 

 

421,831

 

 

 

228,086

 

Cash used in investing activities

 

 

(889,728

)

 

 

(769,783

)

Financing activities:

 

 

 

 

 

 

Net change in short-term debt

 

 

10,791

 

 

 

(19,765

)

Repayment of long-term debt

 

 

(2,500

)

 

 

(2,500

)

Proceeds from exercise of stock options

 

 

3,165

 

 

 

7,123

 

Payment of tax withholdings on certain stock-based compensation

 

 

(3,280

)

 

 

(7,105

)

Distributions to noncontrolling interests

 

 

(265,435

)

 

 

(337,810

)

Cash dividends

 

 

(133,568

)

 

 

(130,525

)

Acquisition of treasury stock

 

 

(1,001,300

)

 

 

(425,820

)

Other financing activities

 

 

(3,419

)

 

 

(4,272

)

Cash used in financing activities

 

 

(1,395,546

)

 

 

(920,674

)

Effect of exchange rate changes on cash

 

 

(3,366

)

 

 

3,243

 

Decrease in cash and cash equivalents and
   restricted cash and cash equivalents

 

 

(1,828,987

)

 

 

(480,041

)

Cash and cash equivalents and restricted cash and cash
   equivalents - beginning of year

 

 

6,386,792

 

 

 

4,361,220

 

Cash and cash equivalents and restricted cash and cash
   equivalents - end of three months

 

$

4,557,805

 

 

$

3,881,179

 

Non-cash investing activity:

 

 

 

 

 

 

Change in accrued plant and equipment purchases

 

$

(10,880

)

 

$

(36,280

)

 

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, 2023 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, 2023.

 

Recent Accounting Pronouncements

In November 2023, new accounting guidance was issued that updates reportable segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are regularly provided to the Chief Operating Decision Maker (the “CODM”) and included within each reported measure of a segment's profit or loss. This new guidance also requires disclosure of the title and position of the individual identified as the CODM and an explanation of how the CODM uses the reported measures of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources. The new guidance is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The new guidance is required to be applied retrospectively to all prior periods presented in the financial statements. Early adoption is also permitted. This new guidance will likely result in additional required disclosures when adopted. The Company is evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements.

In December 2023, new accounting guidance was issued related to income tax disclosures. The new guidance requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The new guidance is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. This new guidance will likely result in additional required disclosures when adopted. The Company is evaluating the impact that the adoption of this new guidance will have on its consolidated financial statements.

2. Inventories

Inventories consisted of approximately 32% raw materials and supplies and 68% finished and semi-finished products at March 30, 2024 (37% and 63%, respectively, at December 31, 2023). 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.

3. Property, Plant and Equipment

Property, plant and equipment is recorded net of accumulated depreciation of $12.00 billion at March 30, 2024 ($11.79 billion at December 31, 2023).

 

4. Goodwill and Other Intangible Assets

The change in the net carrying amount of goodwill for the three months ended March 30, 2024 by segment was as follows (in thousands):

 

 

 

Steel Mills

 

 

Steel Products

 

 

Raw Materials

 

 

Total

 

Balance at December 31, 2023

 

$

675,186

 

 

$

2,514,172

 

 

$

779,489

 

 

$

3,968,847

 

Acquisitions

 

 

-

 

 

 

-

 

 

 

(8,366

)

 

 

(8,366

)

Translation

 

 

-

 

 

 

(4,419

)

 

 

-

 

 

 

(4,419

)

Balance at March 30, 2024

 

$

675,186

 

 

$

2,509,753

 

 

$

771,123

 

 

$

3,956,062

 

 

5


 

Nucor completed its most recent annual goodwill impairment testing as of the first day of the fourth quarter of 2023 and concluded that as of such date there was no impairment of goodwill for any of its reporting units.

Intangible assets with estimated useful lives of five to 25 years are amortized on a straight-line or accelerated basis and consisted of the following as of March 30, 2024 and December 31, 2023 (in thousands):

 

 

 

March 30, 2024

 

 

December 31, 2023

 

 

 

Gross Amount

 

 

Accumulated
Amortization

 

 

Gross Amount

 

 

Accumulated
Amortization

 

Customer relationships

 

$

4,189,905

 

 

$

1,347,718

 

 

$

4,190,156

 

 

$

1,295,778

 

Trademarks and trade names

 

 

372,142

 

 

 

174,182

 

 

 

372,153

 

 

 

168,363

 

Other

 

 

109,747

 

 

 

100,824

 

 

 

109,747

 

 

 

99,900

 

 

 

$

4,671,794

 

 

$

1,622,724

 

 

$

4,672,056

 

 

$

1,564,041

 

 

Intangible asset amortization expense in the first quarter of 2024 and 2023 was $58.7 million and $58.8 million, respectively. Annual amortization expense is estimated to be $234.4 million in 2024; $233.5 million in 2025; $230.5 million in 2026; $227.3 million in 2027; and $221.9 million in 2028.

5. Current Liabilities

Book overdrafts, included in accounts payable in the condensed consolidated balance sheets, were $71.0 million at March 30, 2024 ($159.0 million at December 31, 2023). Dividends payable, included in accrued expenses and other current liabilities in the condensed consolidated balance sheets, were $130.8 million at March 30, 2024 ($133.6 million at December 31, 2023). Accrued vacation and holiday pay, included in salaries, wages and related accruals in the condensed consolidated balance sheets, were $208.0 million at March 30, 2024 ($202.2 million at December 31, 2023).

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 March 30, 2024 and December 31, 2023 (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 at Reporting Date Using

 

Description

 

Carrying
Amount in
Condensed
Consolidated
Balance
Sheets

 

 

Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

As of March 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

3,964,716

 

 

$

3,964,716

 

 

$

-

 

 

$

-

 

Short-term investments

 

 

981,179

 

 

 

981,179

 

 

 

-

 

 

 

-

 

Restricted cash and cash equivalents

 

 

46

 

 

 

46

 

 

 

-

 

 

 

-

 

Derivative contracts

 

 

138

 

 

 

-

 

 

 

138

 

 

 

-

 

Other assets

 

 

50,740

 

 

 

7,965

 

 

 

-

 

 

 

42,775

 

Total assets

 

$

4,996,819

 

 

$

4,953,906

 

 

$

138

 

 

 

42,775

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts

 

$

(23,056

)

 

$

-

 

 

$

(23,056

)

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

5,724,549

 

 

$

5,724,549

 

 

$

-

 

 

$

-

 

Short-term investments

 

 

747,479

 

 

 

747,479

 

 

 

-

 

 

 

-

 

Restricted cash and cash equivalents

 

 

3,494

 

 

 

3,494

 

 

 

-

 

 

 

-

 

Other assets

 

 

47,020

 

 

 

4,245

 

 

 

-

 

 

 

42,775

 

Total assets

 

$

6,522,542

 

 

$

6,479,767

 

 

$

-

 

 

 

42,775

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Derivative contracts

 

$

(23,211

)

 

$

-

 

 

$

(23,211

)

 

$

-

 

 

6


 

Fair value measurements for Nucor’s cash equivalents, short-term investments and restricted cash and cash equivalents and an investment in a publicly traded nuclear power equipment manufacturer are classified under Level 1 because such measurements are based on quoted market prices in active markets for identical assets. 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. Fair value measurements for Nucor's investments in privately held companies, most of which are in a nuclear fusion technology company, are classified under Level 3 because such measurements are based on unobservable inputs that indicate a change in fair value, including the transaction price in the event of a change in ownership of the investee (e.g., the sale of other investors' interest in the company) or the transaction price in the event of additional equity issuances of the investee. There were no transfers between 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 $6.16 billion at March 30, 2024 (approximately $6.22 billion at December 31, 2023). The debt fair value estimates are classified under Level 2 because such estimates are based on readily available market prices of our debt at March 30, 2024 and December 31, 2023, or similar debt with the same maturities, ratings and interest rates.

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 with self-insurance limits for certain risks.

8. Stock-Based Compensation

Stock Options

A summary of activity under Nucor’s stock option plans for the first quarter of 2024 is as follows (shares and aggregate intrinsic value 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

 

 

718

 

 

$

78.33

 

 

 

 

 

 

Granted

 

 

-

 

 

$

-

 

 

 

 

 

 

Exercised

 

 

(54

)

 

$

50.09

 

 

 

 

$

7,594

 

Canceled

 

 

-

 

 

$

-

 

 

 

 

 

 

Outstanding at March 30, 2024

 

 

664

 

 

$

80.61

 

 

6.9 years

 

$

77,915

 

Stock options exercisable at March 30, 2024

 

 

380

 

 

$

48.09

 

 

6.1 years

 

$

56,861

 

 

Compensation expense for stock options was $0.4 million and $0.5 million in the first quarter of 2024 and 2023, respectively. As of March 30, 2024, unrecognized compensation expense related to stock options was $1.6 million, which we expect to recognize over a weighted-average period of 1.8 years.

7


 

Restricted Stock Units

A summary of Nucor’s restricted stock unit (“RSU”) activity for the first quarter of 2024 is as follows (shares in thousands):

 

 

 

Shares

 

 

Grant Date
Fair Value
Per Share

 

Restricted stock units:

 

 

 

 

 

 

Unvested at beginning of year

 

 

947

 

 

$

124.89

 

Granted

 

 

-

 

 

$

-

 

Vested

 

 

(8

)

 

$

130.67

 

Canceled

 

 

(5

)

 

$

129.87

 

Unvested at March 30, 2024

 

 

934

 

 

$

124.82

 

 

Compensation expense for RSUs was $12.9 million and $12.2 million in the first quarter of 2024 and 2023, respectively. As of March 30, 2024, unrecognized compensation expense related to unvested RSUs was $70.5 million, which we expect to recognize over a weighted-average period of 1.0 year.

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 2024 is as follows (shares in thousands):

 

 

 

 

 

Grant Date

 

 

 

Shares

 

 

Fair Value
Per Share

 

Restricted stock units and restricted stock awards:

 

 

 

 

 

 

Unvested at beginning of year

 

 

210

 

 

$

145.55

 

Granted

 

 

421

 

 

$

187.54

 

Vested

 

 

(350

)

 

$

176.74

 

Canceled

 

 

-

 

 

$

-

 

Unvested at March 30, 2024

 

 

281

 

 

$

169.57

 

 

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 $8.0 million and $7.7 million in the first quarter of 2024 and 2023, respectively. As of March 30, 2024, unrecognized compensation expense related to unvested restricted stock awards was $17.2 million, which we expect to recognize over a weighted-average period of 2.16 years.

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 $123.3 million and $162.2 million in the first quarter of 2024 and 2023, respectively. The related liability for these benefits is included in salaries, wages and related accruals in the condensed consolidated balance sheets.

10. Interest (Income) Expense

The components of net interest (income) expense for the first quarter of 2024 and 2023 are as follows (in thousands):

 

 

Three Months (13 Weeks) Ended

 

 

 

March 30, 2024

 

 

April 1, 2023

 

Interest expense

 

$

43,487

 

 

$

62,682

 

Interest income

 

 

(81,274

)

 

 

(52,499

)

Interest (income) expense, net

 

$

(37,787

)

 

$

10,183

 

 

8


 

11. Income Taxes

The effective tax rate for the first quarter of 2024 was 21.7% compared to 22.9% for the first quarter of 2023. The decrease in the effective tax rate for the first quarter of 2024 as compared to the first quarter of 2023 was primarily due to increased federal tax credits and the change in relative proportions of net earnings attributable to noncontrolling interests to total pre-tax earnings between the periods.

The Internal Revenue Service (the “IRS”) is currently examining Nucor’s 2015, 2019, and 2020 federal income tax returns. Nucor has concluded U.S. federal income tax matters for the tax years through 2014, and for the tax years 2016 and 2018. The tax years 2017, 2021, and 2022 remain open to examination by the IRS. The 2015 through 2021 Canadian income tax returns for Nucor Rebar Fabrication Group Inc. (formerly known as Harris Steel Group Inc.) and certain related affiliates are currently under examination by the Canada Revenue Agency. The tax years 2016 through 2022 remain open to examination by other major taxing jurisdictions to which Nucor is subject (primarily Canada, Trinidad & Tobago, and other state and local jurisdictions).

Non-current deferred tax assets included in other assets in the condensed consolidated balance sheets were $42.0 million at March 30, 2024 ($40.7 million at December 31, 2023). Non-current deferred tax liabilities included in deferred credits and other liabilities in the condensed consolidated balance sheets were $1.29 billion at March 30, 2024 ($1.33 billion at December 31, 2023).

 

9


 

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”), California Steel Industries, Inc. (“CSI”) and Nucor-JFE Steel Mexico, S. de R.L. de C.V. ("NJSM") - in each of which Nucor owns 51% (the third of which Nucor acquired an additional 1% interest in the fourth quarter of 2023, bringing our total equity ownership to a 51% controlling interest), for the three months ended March 30, 2024 and April 1, 2023 (in thousands):

 

 

 

 

 

 

Three Months (13 Weeks) Ended March 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2023

 

$

22,123,754

 

 

 

380,154

 

 

$

152,061

 

 

$

2,176,243

 

 

$

28,762,045

 

 

$

(162,072

)

 

 

135,252

 

 

$

(9,987,643

)

 

$

20,940,634

 

 

$

1,183,120

 

Net earnings before noncontrolling interests

 

 

958,962

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

844,841

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

844,841

 

 

 

114,121

 

Other comprehensive income (loss)

 

 

(15,368

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(15,368

)

 

 

-

 

 

 

-

 

 

 

(15,368

)

 

 

-

 

Stock options exercised

 

 

2,688

 

 

 

-

 

 

 

-

 

 

 

(1,449

)

 

 

-

 

 

 

-

 

 

 

(54

)

 

 

4,137

 

 

 

2,688

 

 

 

-

 

Stock option expense

 

 

392

 

 

 

-

 

 

 

-

 

 

 

392

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

392

 

 

 

-

 

Issuance of stock under award plans,
   net of forfeitures

 

 

59,964

 

 

 

-

 

 

 

-

 

 

 

33,037

 

 

 

-

 

 

 

-

 

 

 

(344

)

 

 

26,927

 

 

 

59,964

 

 

 

-

 

Amortization of unearned
   compensation

 

 

2,600

 

 

 

-

 

 

 

-

 

 

 

2,600

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,600

 

 

 

-

 

Treasury stock acquired, and net impact of excise tax

 

 

(1,011,239

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5,538

 

 

 

(1,011,239

)

 

 

(1,011,239

)

 

 

-

 

Cash dividends declared

 

 

(130,799

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(130,799

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(130,799

)

 

 

-

 

Distributions to noncontrolling
   interests

 

 

(265,435

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(265,435

)

BALANCES, March 30, 2024

 

$

21,725,519

 

 

 

380,154

 

 

$

152,061

 

 

$

2,210,823

 

 

$

29,476,087

 

 

$

(177,440

)

 

 

140,392

 

 

$

(10,967,818

)

 

$

20,693,713

 

 

$

1,031,806

 

 

 

 

 

 

 

 

Three Months (13 Weeks) Ended April 1, 2023