filings.toolsItem 1. Financial Statements
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Item 1. Financial Statements
Nucor Corporation Condensed Consolidat****ed Statements of Earnings (Unaudited)
(In thousands, except per share amounts)
| Three Months (13 Weeks) Ended | Six Months (26 Weeks) Ended | |||||||||||||||
| June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | |||||||||||||
| Net sales | $ | 8,077,172 | $ | 9,523,256 | $ | 16,214,255 | $ | 18,233,236 | ||||||||
| Costs, expenses and other: | ||||||||||||||||
| Cost of products sold | 6,883,117 | 7,021,582 | 13,497,020 | 13,733,360 | ||||||||||||
| Marketing, administrative and other expenses | 307,230 | 453,388 | 652,625 | 843,283 | ||||||||||||
| Equity in earnings of unconsolidated affiliates | (9,032 | ) | (6,094 | ) | (18,801 | ) | (4,754 | ) | ||||||||
| Interest (income) expense, net | (2,306 | ) | 4,598 | (40,093 | ) | 14,781 | ||||||||||
| 7,179,009 | 7,473,474 | 14,090,751 | 14,586,670 | |||||||||||||
| Earnings before income taxes and noncontrolling interests | 898,163 | 2,049,782 | 2,123,504 | 3,646,566 | ||||||||||||
| Provision for income taxes | 186,020 | 462,707 | 452,399 | 827,862 | ||||||||||||
| Net earnings before noncontrolling interests | 712,143 | 1,587,075 | 1,671,105 | 2,818,704 | ||||||||||||
| Earnings attributable to noncontrolling interests | 66,926 | 125,721 | 181,047 | 220,808 | ||||||||||||
| Net earnings attributable to Nucor stockholders | $ | 645,217 | $ | 1,461,354 | $ | 1,490,058 | $ | 2,597,896 | ||||||||
| Net earnings per share: | ||||||||||||||||
| Basic | $ | 2.68 | $ | 5.82 | $ | 6.15 | $ | 10.28 | ||||||||
| Diluted | $ | 2.68 | $ | 5.81 | $ | 6.14 | $ | 10.26 | ||||||||
| Average shares outstanding: | ||||||||||||||||
| Basic | 239,580 | 250,144 | 241,329 | 251,876 | ||||||||||||
| Diluted | 239,935 | 250,524 | 241,528 | 252,334 |
See notes to condensed consolidated financial statements.
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Nucor Corporation Condensed Consolidated Sta****tements of Comprehensive Income (Unaudited)
(In thousands)
| Three Months (13 Weeks) Ended | Six Months (26 Weeks) Ended | |||||||||||||||
| June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | |||||||||||||
| Net earnings before noncontrolling interests | $ | 712,143 | $ | 1,587,075 | $ | 1,671,105 | $ | 2,818,704 | ||||||||
| Other comprehensive (loss) income: | ||||||||||||||||
| Net unrealized income (loss) on hedging derivatives, net of income taxes of $0 and $(1,400) for the second quarter of 2024 and 2023, respectively, and $(1,700) and $(9,200) for the first six months of 2024 and 2023, respectively | 125 | (4,428 | ) | (5,116 | ) | (29,003 | ) | |||||||||
| Reclassification adjustment for settlement of hedging derivatives included in net earnings, net of income taxes of $2,400 and $1,900 for the second quarter of 2024 and 2023, respectively, and $4,200 and $2,000 for the first six months of 2024 and 2023, respectively | 7,475 | 6,228 | 12,816 | 6,403 | ||||||||||||
| Foreign currency translation (loss) gain, net of income taxes of $0 for the second quarter and first six months of 2024 and 2023 | (7,798 | ) | 34,586 | (23,266 | ) | 31,145 | ||||||||||
| (198 | ) | 36,386 | (15,566 | ) | 8,545 | |||||||||||
| Comprehensive income | 711,945 | 1,623,461 | 1,655,539 | 2,827,249 | ||||||||||||
| Comprehensive income attributable to noncontrolling interests | 66,926 | 125,721 | 181,047 | 220,808 | ||||||||||||
| Comprehensive income attributable to Nucor stockholders | $ | 645,019 | $ | 1,497,740 | $ | 1,474,492 | $ | 2,606,441 |
See notes to condensed consolidated financial statements.
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Nucor Corporation Condensed Consol****idated Balance Sheets (Unaudited)
(In thousands)
| June 29, 2024 | Dec. 31, 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 4,638,978 | $ | 6,383,298 | ||||
| Short-term investments | 795,180 | 747,479 | ||||||
| Accounts receivable, net | 3,113,079 | 2,953,311 | ||||||
| Inventories, net | 5,255,843 | 5,577,758 | ||||||
| Other current assets | 455,042 | 724,012 | ||||||
| Total current assets | 14,258,122 | 16,385,858 | ||||||
| Property, plant and equipment, net | 11,999,189 | 11,049,767 | ||||||
| Restricted cash and cash equivalents | - | 3,494 | ||||||
| Goodwill | 4,000,144 | 3,968,847 | ||||||
| Other intangible assets, net | 3,051,479 | 3,108,015 | ||||||
| Other assets | 876,291 | 824,518 | ||||||
| Total assets | $ | 34,185,225 | $ | 35,340,499 | ||||
| LIABILITIES | ||||||||
| Current liabilities: | ||||||||
| Short-term debt | $ | 168,510 | $ | 119,211 | ||||
| Current portion of long-term debt and finance lease obligations | 1,075,203 | 74,102 | ||||||
| Accounts payable | 1,744,657 | 2,020,289 | ||||||
| Salaries, wages and related accruals | 857,481 | 1,326,390 | ||||||
| Accrued expenses and other current liabilities | 1,019,410 | 1,054,517 | ||||||
| Total current liabilities | 4,865,261 | 4,594,509 | ||||||
| Long-term debt and finance lease obligations due after one year | 5,648,555 | 6,648,873 | ||||||
| Deferred credits and other liabilities | 1,898,901 | 1,973,363 | ||||||
| Total liabilities | 12,412,717 | 13,216,745 | ||||||
| Commitments and contingencies | ||||||||
| EQUITY | ||||||||
| Nucor stockholders' equity: | ||||||||
| Common stock | 152,061 | 152,061 | ||||||
| Additional paid-in capital | 2,189,371 | 2,176,243 | ||||||
| Retained earnings | 29,991,834 | 28,762,045 | ||||||
| Accumulated other comprehensive loss, net of income taxes | (177,638 | ) | (162,072 | ) | ||||
| Treasury stock | (11,432,103 | ) | (9,987,643 | ) | ||||
| Total Nucor stockholders' equity | 20,723,525 | 20,940,634 | ||||||
| Noncontrolling interests | 1,048,983 | 1,183,120 | ||||||
| Total equity | 21,772,508 | 22,123,754 | ||||||
| Total liabilities and equity | $ | 34,185,225 | $ | 35,340,499 |
See notes to condensed consolidated financial statements.
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Nucor Corporation Condensed Consolidate****d Statements of Cash Flows (Unaudited)
(In thousands)
| Six Months (26 Weeks) Ended | ||||||||
| June 29, 2024 | July 1, 2023 | |||||||
| Operating activities: | ||||||||
| Net earnings before noncontrolling interests | $ | 1,671,105 | $ | 2,818,704 | ||||
| Adjustments: | ||||||||
| Depreciation | 527,626 | 448,836 | ||||||
| Amortization | 119,850 | 117,231 | ||||||
| Stock-based compensation | 82,725 | 83,587 | ||||||
| Deferred income taxes | (77,611 | ) | (44,609 | ) | ||||
| Distributions from affiliates | 7,877 | 18,621 | ||||||
| Equity in earnings of unconsolidated affiliates | (18,801 | ) | (4,754 | ) | ||||
| Changes in assets and liabilities (exclusive of acquisitions and dispositions): | ||||||||
| Accounts receivable | (153,856 | ) | (270,314 | ) | ||||
| Inventories | 333,247 | (174,437 | ) | |||||
| Accounts payable | (314,761 | ) | 242,071 | |||||
| Federal income taxes | 132,931 | 396,341 | ||||||
| Salaries, wages and related accruals | (426,098 | ) | (573,993 | ) | ||||
| Other operating activities | 60,697 | 70,313 | ||||||
| Cash provided by operating activities | 1,944,931 | 3,127,597 | ||||||
| Investing activities: | ||||||||
| Capital expenditures | (1,471,234 | ) | (1,057,086 | ) | ||||
| Investment in and advances to affiliates | (79 | ) | (35,078 | ) | ||||
| Disposition of plant and equipment | 9,530 | 5,289 | ||||||
| Acquisitions (net of cash acquired) | (108,943 | ) | - | |||||
| Purchases of investments | (886,892 | ) | (701,639 | ) | ||||
| Proceeds from the sale of investments | 855,965 | 408,854 | ||||||
| Other investing activities | 1,324 | - | ||||||
| Cash used in investing activities | (1,600,329 | ) | (1,379,660 | ) | ||||
| Financing activities: | ||||||||
| Net change in short-term debt | 49,299 | (15,742 | ) | |||||
| Repayment of long-term debt | (5,000 | ) | (5,000 | ) | ||||
| Proceeds from exercise of stock options | 3,357 | 7,123 | ||||||
| Payment of tax withholdings on certain stock-based compensation | (47,018 | ) | (42,120 | ) | ||||
| Distributions to noncontrolling interests | (315,184 | ) | (388,771 | ) | ||||
| Cash dividends | (264,367 | ) | (259,894 | ) | ||||
| Acquisition of treasury stock | (1,501,283 | ) | (876,698 | ) | ||||
| Other financing activities | (7,070 | ) | (8,296 | ) | ||||
| Cash used in financing activities | (2,087,266 | ) | (1,589,398 | ) | ||||
| Effect of exchange rate changes on cash | (5,150 | ) | 3,469 | |||||
| (Decrease) increase in cash and cash equivalents and restricted cash and cash equivalents | (1,747,814 | ) | 162,008 | |||||
| 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 six months | $ | 4,638,978 | $ | 4,523,228 | ||||
| Non-cash investing activity: | ||||||||
| Change in accrued plant and equipment purchases | $ | 37,106 | $ | (36,580 | ) |
See notes to condensed consolidated financial statements.
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Nucor Corporation – Notes to Condensed Con****solidated 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 make 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 33% raw materials and supplies and 67% finished and semi-finished products at June 29, 2024 (approximately 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 $12.25 billion at June 29, 2024 ($11.79 billion at December 31, 2023).
Included within property, plant and equipment, net, of the steel mills segment at June 29, 2024 is $244.2 million of assets, net of accumulated depreciation, related to our joint venture Nucor-JFE Steel Mexico, S. de R.L. de C.V. (“NJSM”). If NJSM’s financial performance continues to underperform its forecasts, management may determine that a triggering event has occurred and will perform an impairment assessment to determine if the carrying amount of NJSM’s property, plant and equipment, net, exceeds its projected undiscounted cash flows. A future assessment may result in the impairment of part or all of the carrying value of NJSM’s property, plant and equipment, net.
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4. Goodwill and Other Intangible Assets
The change in the net carrying amount of goodwill for the six months ended June 29, 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 | - | 46,063 | (8,166 | ) | 37,897 | |||||||||||
| Translation | - | (6,600 | ) | - | (6,600 | ) | ||||||||||
| Balance at June 29, 2024 | $ | 675,186 | $ | 2,553,635 | $ | 771,323 | $ | 4,000,144 |
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 June 29, 2024 and December 31, 2023 (in thousands):
| June 29, 2024 | December 31, 2023 | |||||||||||||||
| Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | |||||||||||||
| Customer relationships | $ | 4,247,487 | $ | 1,402,082 | $ | 4,190,156 | $ | 1,295,778 | ||||||||
| Trademarks and trade names | 378,136 | 180,061 | 372,153 | 168,363 | ||||||||||||
| Other | 109,747 | 101,748 | 109,747 | 99,900 | ||||||||||||
| $ | 4,735,370 | $ | 1,683,891 | $ | 4,672,056 | $ | 1,564,041 |
Intangible asset amortization expense in the second quarter of 2024 and 2023 was $61.2 million and $58.4 million, respectively, and $119.9 million and $117.2 million in the first six months of 2024 and 2023, respectively. Annual amortization expense is estimated to be $242.1 million in 2024; $243.8 million in 2025; $240.6 million in 2026; $237.2 million in 2027; and $231.1 million in 2028.
5. Current Liabilities
Book overdrafts included in accounts payable in the condensed consolidated balance sheets were $148.1 million at June 29, 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 $129.5 million at June 29, 2024 ($133.6 million at December 31, 2023).
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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 June 29, 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 June 29, 2024 | ||||||||||||||||
| Assets: | ||||||||||||||||
| Cash equivalents | $ | 3,995,267 | $ | 3,995,267 | $ | - | $ | - | ||||||||
| Short-term investments | 795,180 | 795,180 | - | - | ||||||||||||
| Derivative contracts | 2,796 | - | 2,796 | - | ||||||||||||
| Other assets | 60,310 | 17,535 | - | 42,775 | ||||||||||||
| Total assets | $ | 4,853,553 | $ | 4,807,982 | $ | 2,796 | $ | 42,775 | ||||||||
| Liabilities: | ||||||||||||||||
| Derivative contracts | $ | (8,100 | ) | $ | - | $ | (8,100 | ) | $ | - | ||||||
| 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 | - | - | ||||||||||||
| Derivative contracts | - | - | - | - | ||||||||||||
| 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 | ) | $ | - |
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 $6.12 billion at June 29, 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 June 29, 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.
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8. Stock-Based Compensation
Stock Options
A summary of activity under Nucor’s stock option plans for the first six months 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 | 73 | $ | 168.85 | |||||||||||
| Exercised | (58 | ) | $ | 49.94 | $ | 8,211 | ||||||||
| Canceled | (3 | ) | $ | 168.85 | ||||||||||
| Outstanding at June 29, 2024 | 730 | $ | 89.25 | 7.0 years | $ | 51,023 | ||||||||
| Stock options exercisable at June 29, 2024 | 497 | $ | 64.24 | 6.1 years | $ | 46,641 |
For the 2024 stock option grant, the grant date fair value of $67.83 per share was calculated using the Black-Scholes options pricing model with the following assumptions:
| Exercise price | $ | 168.85 | ||
| Expected dividend yield | 1.28 | % | ||
| Expected stock price volatility | 37.69 | % | ||
| Risk-free interest rate | 4.52 | % | ||
| Expected life (in years) | 6.5 |
Compensation expense for stock options was $3.6 million and $3.4 million in the second quarter of 2024 and 2023, respectively, and $4.0 million and $3.9 million in the first six months of 2024 and 2023, respectively. As of June 29, 2024, unrecognized compensation expense related to stock options was $2.9 million, which we expect to recognize over a weighted-average period of 2.4 years.
Restricted Stock Units
A summary of Nucor’s restricted stock unit (“RSU”) activity for the first six months 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 | 749 | $ | 168.85 | |||||
| Vested | (624 | ) | $ | 143.15 | ||||
| Canceled | (17 | ) | $ | 149.26 | ||||
| Unvested at June 29, 2024 | 1,055 | $ | 144.91 |
Compensation expense for RSUs was $53.9 million and $48.5 million in the second quarter of 2024 and 2023, respectively, and $66.8 million and $60.7 million in the first six months of 2024 and 2023, respectively. As of June 29, 2024, unrecognized compensation expense related to unvested RSUs was $141.1 million, which we expect to recognize over a weighted-average period of 1.6 years.
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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 six months 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 | (358 | ) | $ | 176.61 | ||||
| Canceled | - | $ | - | |||||
| Unvested at June 29, 2024 | 273 | $ | 169.53 |
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 $3.9 million and $11.7 million in the second quarter of 2024 and 2023, respectively, and $11.9 million and $19.4 million in the first six months of 2024 and 2023, respectively. As of June 29, 2024, unrecognized compensation expense related to unvested restricted stock awards was $14.7 million, which we expect to recognize over a weighted-average period of 2.0 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 $88.3 million and $194.4 million in the second quarter of 2024 and 2023, respectively, and $211.6 million and $356.6 million in the first six months 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 second quarter and first six months of 2024 and 2023 are as follows (in thousands):
| Three Months (13 Weeks) Ended | Six Months (26 Weeks) Ended | |||||||||||||||
| June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | |||||||||||||
| Interest expense | $ | 66,852 | $ | 60,806 | $ | 110,339 | $ | 123,488 | ||||||||
| Interest income | (69,158 | ) | (56,208 | ) | (150,432 | ) | (108,707 | ) | ||||||||
| Interest (income) expense, net | $ | (2,306 | ) | $ | 4,598 | $ | (40,093 | ) | $ | 14,781 |
11. Income Taxes
The effective tax rate for the second quarter of 2024 was 20.7% compared to 22.6% for the second quarter of 2023. The decrease in the effective tax rate for the second quarter of 2024 as compared to the second 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 2023 remain open to examination by other major taxing jurisdictions to which Nucor is subject (primarily Canada, Trinidad & Tobago, and other state and local jurisdictions).
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Non-current deferred tax assets included in other assets in the condensed consolidated balance sheets were $34.2 million at June 29, 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 $1.26 billion at June 29, 2024 ($1.33 billion at December 31, 2023).
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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 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 its total equity ownership to a 51% controlling interest), for the three months and six months ended June 29, 2024 and July 1, 2023 (in thousands):
| Three Months (13 Weeks) Ended June 29, 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, 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 | ||||||||||||||||||||
| Net earnings before noncontrolling interests | 712,143 | - | - | - | 645,217 | - | - | - | 645,217 | 66,926 | ||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (198 | ) | - | - | - | - | (198 | ) | - | - | (198 | ) | - | |||||||||||||||||||||||||||
| Stock options exercised | 192 | - | - | (121 | ) | - | - | (4 | ) | 313 | 192 | - | ||||||||||||||||||||||||||||
| Stock option expense | 3,626 | - | - | 3,626 | - | - | - | - | 3,626 | - | ||||||||||||||||||||||||||||||
| Issuance of stock under award plans, net of forfeitures | 12,326 | - | - | (27,457 | ) | - | - | (501 | ) | 39,783 | 12,326 | - | ||||||||||||||||||||||||||||
| Amortization of unearned compensation | 2,500 | - | - | 2,500 | - | - | - | - | 2,500 | - | ||||||||||||||||||||||||||||||
| Treasury stock acquired | (504,381 | ) | - | - | - | - | - | 2,929 | (504,381 | ) | (504,381 | ) | - | |||||||||||||||||||||||||||
| Cash dividends declared | (129,470 | ) | - | - | - | (129,470 | ) | - | - | - | (129,470 | ) | - | |||||||||||||||||||||||||||
| Distributions to noncontrolling interests | (49,749 | ) | - | - | - | - | - | - | - | - | (49,749 | ) | ||||||||||||||||||||||||||||
| BALANCES, June 29, 2024 | $ | 21,772,508 | 380,154 | $ | 152,061 | $ | 2,189,371 | $ | 29,991,834 | $ | (177,638 | ) | 142,816 | $ | (11,432,103 | ) | $ | 20,723,525 | $ | 1,048,983 |
| Six Months (26 Weeks) Ended June 29, 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 | 1,671,105 | - | - | - | 1,490,058 | - | - | - | 1,490,058 | 181,047 | ||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | (15,566 | ) | - | - | - | - | (15,566 | ) | - | - | (15,566 | ) | - | |||||||||||||||||||||||||||
| Stock options exercised | 2,880 | - | - | (1,570 | ) | - | - | (58 | ) | 4,450 | 2,880 | - | ||||||||||||||||||||||||||||
| Stock option expense | 4,018 | - | - | 4,018 | - | - | - | - | 4,018 | - | ||||||||||||||||||||||||||||||
| Issuance of stock under award plans, net of forfeitures | 72,290 | - | - | 5,580 | - | - | (845 | ) | 66,710 | 72,290 | - | |||||||||||||||||||||||||||||
| Amortization of unearned compensation | 5,100 | - | - | 5,100 | - | - | - | - | 5,100 | - | ||||||||||||||||||||||||||||||
| Treasury stock acquired | (1,515,620 | ) | - | - | - | - | - | 8,467 | (1,515,620 | ) | (1,515,620 | ) | - | |||||||||||||||||||||||||||
| Cash dividends declared | (260,269 | ) | - | - | - | (260,269 | ) | - | - | - | (260,269 | ) | - | |||||||||||||||||||||||||||
| Distributions to noncontrolling interests | (315,184 | ) | - | - | - | - | - | - | - | - | (315,184 | ) | ||||||||||||||||||||||||||||
| BALANCES, June 29, 2024 | $ | 21,772,508 | 380,154 | $ | 152,061 | $ | 2,189,371 | $ | 29,991,834 | $ | (177,638 | ) | 142,816 | $ | (11,432,103 | ) | $ | 20,723,525 | $ | 1,048,983 |
Table of Contents
| Three Months (13 Weeks) Ended July 1, 2023 | ||||||||||||||||||||||||||||||||||||||||
| 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, April 1, 2023 | $ | 19,929,870 | 380,154 | $ | 152,061 | $ | 2,168,770 | $ | 25,762,032 | $ | (165,358 | ) | 128,930 | $ | (8,900,124 | ) | $ | 19,017,381 | $ | 912,489 | ||||||||||||||||||||
| Net earnings before noncontrolling interests | 1,587,075 | - | - | - | 1,461,354 | - | - | - | 1,461,354 | 125,721 | ||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | 36,386 | - | - | - | - | 36,386 | - | - | 36,386 | - | ||||||||||||||||||||||||||||||
| Stock options exercised | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
| Stock option expense | 3,447 | - | - | 3,447 | - | - | - | - | 3,447 | - | ||||||||||||||||||||||||||||||
| Issuance of stock under award plans, net of forfeitures | 16,149 | - | - | (24,025 | ) | - | - | (566 | ) | 40,174 | 16,149 | - | ||||||||||||||||||||||||||||
| Amortization of unearned compensation | 1,501 | - | - | 1,501 | - | - | - | - | 1,501 | - | ||||||||||||||||||||||||||||||
| Treasury stock acquired | (454,814 | ) | - | - | - | - | - | 3,067 | (454,814 | ) | (454,814 | ) | - | |||||||||||||||||||||||||||
| Cash dividends declared | (127,725 | ) | - | - | - | (127,725 | ) | - | - | - | (127,725 | ) | - | |||||||||||||||||||||||||||
| Distributions to noncontrolling interests | (50,961 | ) | - | - | - | - | - | - | - | - | (50,961 | ) | ||||||||||||||||||||||||||||
| BALANCES, July 1, 2023 | $ | 20,940,928 | 380,154 | $ | 152,061 | $ | 2,149,693 | $ | 27,095,661 | $ | (128,972 | ) | 131,431 | $ | (9,314,764 | ) | $ | 19,953,679 | $ | 987,249 |
| Six Months (26 Weeks) Ended July 1, 2023 | ||||||||||||||||||||||||||||||||||||||||
| 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, 2022 | $ | 19,569,906 | 380,154 | $ | 152,061 | $ | 2,143,520 | $ | 24,754,873 | $ | (137,517 | ) | 126,661 | $ | (8,498,243 | ) | $ | 18,414,694 | $ | 1,155,212 | ||||||||||||||||||||
| Net earnings before noncontrolling interests | 2,818,704 | - | - | - | 2,597,896 | - | - | - | 2,597,896 | 220,808 | ||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | 8,545 | - | - | - | - | 8,545 | - | - | 8,545 | - | ||||||||||||||||||||||||||||||
| Stock options exercised | 7,123 | - | - | (1,749 | ) | - | - | (131 | ) | 8,872 | 7,123 | - | ||||||||||||||||||||||||||||
| Stock option expense | 3,922 | - | - | 3,922 | - | - | - | - | 3,922 | - | ||||||||||||||||||||||||||||||
| Issuance of stock under award plans, net of forfeitures | 59,969 | - | - | 735 | - | - | (889 | ) | 59,234 | 59,969 | - | |||||||||||||||||||||||||||||
| Amortization of unearned compensation | 3,265 | - | - | 3,265 | - | - | - | - | 3,265 | - | ||||||||||||||||||||||||||||||
| Treasury stock acquired | (884,627 | ) | - | - | - | - | - | 5,790 | (884,627 | ) | (884,627 | ) | - | |||||||||||||||||||||||||||
| Cash dividends declared | (257,108 | ) | - | - | - | (257,108 | ) | - | - | - | (257,108 | ) | - | |||||||||||||||||||||||||||
| Distributions to noncontrolling interests | (388,771 | ) | - | - | - | - | - | - | - | - | (388,771 | ) | ||||||||||||||||||||||||||||
| BALANCES, July 1, 2023 | $ | 20,940,928 | 380,154 | $ | 152,061 | $ | 2,149,693 | $ | 27,095,661 | $ | (128,972 | ) | 131,431 | $ | (9,314,764 | ) | $ | 19,953,679 | $ | 987,249 |
Dividends declared were $0.54 per share in the second quarter of 2024 ($0.51 per share in the second quarter of 2023) and $1.08 per share in the first six months of 2024 ($1.02 per share in the first six months of 2023).
On May 11, 2023, the Company announced that its Board of Directors had approved a 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 are 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 June 29, 2024, the Company had approximately $1.82 billion available for share repurchases under the program authorized by the Company’s Board of Directors.
Table of Contents
1****3. Accumulated Other Comprehensive Income (Loss)
The following tables reflect the changes in accumulated other comprehensive income (loss) by component for the three months and six months ended June 29, 2024 and July 1, 2023 (in thousands):
| Three-Month (13-Week) Period Ended | ||||||||||||||||
| June 29, 2024 | ||||||||||||||||
| Gains and (Losses) on | Foreign Currency | Adjustment to Early | ||||||||||||||
| Hedging Derivatives | Gains (Losses) | Retiree Medical Plan | Total | |||||||||||||
| Accumulated other comprehensive income (loss) at March 30, 2024 | $ | (13,800 | ) | $ | (174,643 | ) | $ | 11,003 | $ | (177,440 | ) | |||||
| Other comprehensive income (loss) before reclassifications | 125 | (7,798 | ) | - | (7,673 | ) | ||||||||||
| Amounts reclassified from accumulated other comprehensive income (loss) into earnings (1) | 7,475 | - | - | 7,475 | ||||||||||||
| Net current-period other comprehensive income (loss) | 7,600 | (7,798 | ) | - | (198 | ) | ||||||||||
| Accumulated other comprehensive income (loss) at June 29, 2024 | $ | (6,200 | ) | $ | (182,441 | ) | $ | 11,003 | $ | (177,638 | ) |
| Six-Month (26-Week) Period Ended | ||||||||||||||||
| June 29, 2024 | ||||||||||||||||
| 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, 2023 | $ | (13,900 | ) | $ | (159,175 | ) | $ | 11,003 | $ | (162,072 | ) | |||||
| Other comprehensive income (loss) before reclassifications | (5,116 | ) | (23,266 | ) | - | (28,382 | ) | |||||||||
| Amounts reclassified from accumulated other comprehensive income (loss) into earnings (1) | 12,816 | - | - | 12,816 | ||||||||||||
| Net current-period other comprehensive income (loss) | 7,700 | (23,266 | ) | - | (15,566 | ) | ||||||||||
| Accumulated other comprehensive income (loss) at June 29, 2024 | $ | (6,200 | ) | $ | (182,441 | ) | $ | 11,003 | $ | (177,638 | ) |
(1)
Includes $7,475 and $12,816 net-of-tax impact of accumulated other comprehensive income (loss) reclassifications into cost of products sold for net losses on commodity contracts in the second quarter and first six months of 2024, respectively. The tax impact of those reclassifications was $2,400 and $4,200 in the second quarter and first six months of 2024, respectively.
Table of Contents
| Three-Month (13-Week) Period Ended | ||||||||||||||||
| July 1, 2023 | ||||||||||||||||
| Gains and (Losses) on | Foreign Currency | Adjustment to Early | ||||||||||||||
| Hedging Derivatives | Gains (Losses) | Retiree Medical Plan | Total | |||||||||||||
| Accumulated other comprehensive income (loss) at April 1, 2023 | $ | 1,700 | $ | (183,657 | ) | $ | 16,599 | $ | (165,358 | ) | ||||||
| Other comprehensive income (loss) before reclassifications | (4,428 | ) | 34,586 | - | 30,158 | |||||||||||
| Amounts reclassified from accumulated other comprehensive income (loss) into earnings (2) | 6,228 | - | - | 6,228 | ||||||||||||
| Net current-period other comprehensive income (loss) | 1,800 | 34,586 | - | 36,386 | ||||||||||||
| Accumulated other comprehensive income (loss) at July 1, 2023 | $ | 3,500 | $ | (149,071 | ) | $ | 16,599 | $ | (128,972 | ) |
| Six-Month (26-Week) Period Ended | ||||||||||||||||
| July 1, 2023 | ||||||||||||||||
| 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, 2022 | $ | 26,100 | $ | (180,216 | ) | $ | 16,599 | $ | (137,517 | ) | ||||||
| Other comprehensive income (loss) before reclassifications | (29,003 | ) | 31,145 | - | 2,142 | |||||||||||
| Amounts reclassified from accumulated other comprehensive income (loss) into earnings (2) | 6,403 | - | - | 6,403 | ||||||||||||
| Net current-period other comprehensive income (loss) | (22,600 | ) | 31,145 | - | 8,545 | |||||||||||
| Accumulated other comprehensive income (loss) at July 1, 2023 | $ | 3,500 | $ | (149,071 | ) | $ | 16,599 | $ | (128,972 | ) |
(2)
Includes $6,228 and $6,403 net-of-tax impact of accumulated other comprehensive income (loss) reclassifications into cost of products sold for net gains on commodity contracts in the second quarter and first six months of 2023, respectively. The tax impact of those reclassifications was $1,900 and $2,000 in the second quarter and first six months of 2023, respectively.
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 and rebar distribution businesses; and Nucor’s equity method investment in NuMit LLC (“NuMit”). 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, overhead doors, steel grating, tubular products, steel racking, piling products, wire and wire mesh, and utility towers and structures. 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 (income) expense, 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.
Table of Contents
Nucor’s results by segment for the second quarter and first six months of 2024 and 2023 were as follows (in thousands):
| Three Months (13 Weeks) Ended | Six Months (26 Weeks) Ended | |||||||||||||||
| June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | |||||||||||||
| Net sales to external customers: | ||||||||||||||||
| Steel mills | $ | 4,858,205 | $ | 5,565,772 | $ | 10,026,983 | $ | 10,545,029 | ||||||||
| Steel products | 2,702,776 | 3,442,862 | 5,219,644 | 6,718,859 | ||||||||||||
| Raw materials | 516,191 | 514,622 | 967,628 | 969,348 | ||||||||||||
| $ | 8,077,172 | $ | 9,523,256 | $ | 16,214,255 | $ | 18,233,236 | |||||||||
| Intercompany sales: | ||||||||||||||||
| Steel mills | $ | 1,171,861 | $ | 1,361,066 | $ | 2,422,724 | $ | 2,524,698 | ||||||||
| Steel products | 155,025 | 100,257 | 292,469 | 200,618 | ||||||||||||
| Raw materials | 2,749,174 | 3,588,629 | 5,859,203 | 6,759,521 | ||||||||||||
| Corporate/eliminations | (4,076,060 | ) | (5,049,952 | ) | (8,574,396 | ) | (9,484,837 | ) | ||||||||
| $ | - | $ | - | $ | - | $ | - | |||||||||
| Earnings before income taxes and noncontrolling interests: | ||||||||||||||||
| Steel mills | $ | 645,315 | $ | 1,403,547 | $ | 1,747,566 | $ | 2,241,935 | ||||||||
| Steel products | 441,391 | 1,010,789 | 952,950 | 1,981,591 | ||||||||||||
| Raw materials | 39,396 | 138,411 | 48,977 | 196,551 | ||||||||||||
| Corporate/eliminations | (227,939 | ) | (502,965 | ) | (625,989 | ) | (773,511 | ) | ||||||||
| $ | 898,163 | $ | 2,049,782 | $ | 2,123,504 | $ | 3,646,566 |
| June 29, 2024 | Dec. 31, 2023 | |||||||
| Segment assets: | ||||||||
| Steel mills | $ | 15,754,570 | $ | 15,407,266 | ||||
| Steel products | 11,063,154 | 10,914,870 | ||||||
| Raw materials | 3,477,728 | 3,546,759 | ||||||
| Corporate/eliminations | 3,889,773 | 5,471,604 | ||||||
| $ | 34,185,225 | $ | 35,340,499 |
15. Revenue
The following tables disaggregate our revenue by major source for the second quarter and first six months of 2024 and 2023 (in thousands):
| Three Months (13 Weeks) Ended June 29, 2024 | Six Months (26 Weeks) Ended June 29, 2024 | |||||||||||||||||||||||||||||||
| Steel Mills | Steel Products | Raw Materials | Total | Steel Mills | Steel Products | Raw Materials | Total | |||||||||||||||||||||||||
| Sheet | $ | 2,395,932 | $ | - | $ | - | $ | 2,395,932 | $ | 5,106,269 | $ | - | $ | - | $ | 5,106,269 | ||||||||||||||||
| Bar | 1,361,315 | - | - | 1,361,315 | 2,696,213 | - | - | 2,696,213 | ||||||||||||||||||||||||
| Structural | 559,007 | - | - | 559,007 | 1,170,014 | - | - | 1,170,014 | ||||||||||||||||||||||||
| Plate | 541,951 | - | - | 541,951 | 1,054,487 | - | - | 1,054,487 | ||||||||||||||||||||||||
| Tubular Products | - | 344,735 | - | 344,735 | - | 713,459 | - | 713,459 | ||||||||||||||||||||||||
| Rebar Fabrication | - | 462,325 | - | 462,325 | - | 874,666 | - | 874,666 | ||||||||||||||||||||||||
| Joist | - | 338,723 | - | 338,723 | - | 669,324 | - | 669,324 | ||||||||||||||||||||||||
| Deck | - | 259,437 | - | 259,437 | - | 528,067 | - | 528,067 | ||||||||||||||||||||||||
| Building Systems | - | 360,519 | - | 360,519 | - | 674,532 | - | 674,532 | ||||||||||||||||||||||||
| Other Steel Products | - | 937,037 | - | 937,037 | - | 1,759,596 | - | 1,759,596 | ||||||||||||||||||||||||
| Raw Materials | - | - | 516,191 | 516,191 | - | - | 967,628 | 967,628 | ||||||||||||||||||||||||
| $ | 4,858,205 | $ | 2,702,776 | $ | 516,191 | $ | 8,077,172 | $ | 10,026,983 | $ | 5,219,644 | $ | 967,628 | $ | 16,214,255 |
Table of Contents
| Three Months (13 Weeks) Ended July 1, 2023 | Six Months (26 Weeks) Ended July 1, 2023 | |||||||||||||||||||||||||||||||
| Steel Mills | Steel Products | Raw Materials | Total | Steel Mills | Steel Products | Raw Materials | Total | |||||||||||||||||||||||||
| Sheet | $ | 2,645,817 | $ | - | $ | - | $ | 2,645,817 | $ | 4,748,511 | $ | - | $ | - | $ | 4,748,511 | ||||||||||||||||
| Bar | 1,599,724 | - | - | 1,599,724 | 3,197,852 | - | - | 3,197,852 | ||||||||||||||||||||||||
| Structural | 581,952 | - | - | 581,952 | 1,220,259 | - | - | 1,220,259 | ||||||||||||||||||||||||
| Plate | 738,279 | - | - | 738,279 | 1,378,407 | - | - | 1,378,407 | ||||||||||||||||||||||||
| Tubular Products | - | 436,551 | - | 436,551 | - | 875,534 | - | 875,534 | ||||||||||||||||||||||||
| Rebar Fabrication | - | 615,814 | - | 615,814 | - | 1,113,931 | - | 1,113,931 | ||||||||||||||||||||||||
| Joist | - | 638,975 | - | 638,975 | - | 1,274,791 | - | 1,274,791 | ||||||||||||||||||||||||
| Deck | - | 473,775 | - | 473,775 | - | 959,218 | - | 959,218 | ||||||||||||||||||||||||
| Building Systems | - | 343,138 | - | 343,138 | - | 625,048 | - | 625,048 | ||||||||||||||||||||||||
| Other Steel Products | - | 934,609 | - | 934,609 | - | 1,870,337 | - | 1,870,337 | ||||||||||||||||||||||||
| Raw Materials | - | - | 514,622 | 514,622 | - | - | 969,348 | 969,348 | ||||||||||||||||||||||||
| $ | 5,565,772 | $ | 3,442,862 | $ | 514,622 | $ | 9,523,256 | $ | 10,545,029 | $ | 6,718,859 | $ | 969,348 | $ | 18,233,236 |
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 $243.6 million as of June 29, 2024 ($313.8 million as of December 31, 2023) and are included in accrued expenses and other current liabilities in the condensed consolidated balance sheets.
16. Earnings Per Share
The computations of basic and diluted net earnings per share for the second quarter and first six months of 2024 and 2023 are as follows (in thousands, except per share amounts):
| Three Months (13 Weeks) Ended | Six Months (26 Weeks) Ended | |||||||||||||||
| June 29, 2024 | July 1, 2023 | June 29, 2024 | July 1, 2023 | |||||||||||||
| Basic net earnings per share: | ||||||||||||||||
| Basic net earnings | $ | 645,217 | $ | 1,461,354 | $ | 1,490,058 | $ | 2,597,896 | ||||||||
| Earnings allocated to participating securities | (3,053 | ) | (6,029 | ) | (6,362 | ) | (9,251 | ) | ||||||||
| Net earnings available to common stockholders | $ | 642,164 | $ | 1,455,325 | $ | 1,483,696 | $ | 2,588,645 | ||||||||
| Basic average shares outstanding | 239,580 | 250,144 | 241,329 | 251,876 | ||||||||||||
| Basic net earnings per share | $ | 2.68 | $ | 5.82 | $ | 6.15 | $ | 10.28 | ||||||||
| Diluted net earnings per share: | ||||||||||||||||
| Diluted net earnings | $ | 645,217 | $ | 1,461,354 | $ | 1,490,058 | $ | 2,597,896 | ||||||||
| Earnings allocated to participating securities | (3,048 | ) | (6,013 | ) | (6,350 | ) | (9,223 | ) | ||||||||
| Net earnings available to common stockholders | $ | 642,169 | $ | 1,455,341 | $ | 1,483,708 | $ | 2,588,673 | ||||||||
| Diluted average shares outstanding: | ||||||||||||||||
| Basic average shares outstanding | 239,580 | 250,144 | 241,329 | 251,876 | ||||||||||||
| Dilutive effect of stock options and other | 355 | 380 | 199 | 458 | ||||||||||||
| 239,935 | 250,524 | 241,528 | 252,334 | |||||||||||||
| Diluted net earnings per share | $ | 2.68 | $ | 5.81 | $ | 6.14 | $ | 10.26 |
The number of shares that were not included in the diluted net earnings per share calculation, because to do so would have been anti-dilutive, was immaterial for all periods presented.
17. Subsequent Events
On July 23, 2024, Nucor acquired Rytec Corporation ("Rytec"), a manufacturer and seller of high-speed, high-performance commercial doors, for a cash purchase price of approximately $565 million. Rytec has two manufacturing facilities in Wisconsin. The Company believes this acquisition further executes its strategy to expand beyond its core steelmaking businesses into related downstream businesses. Rytec will be included in the steel products segment.
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