NUCOR CORP Income Taxes Disclosure
19. Income Taxes
On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA") was signed into law. Nucor has reflected the enactment of the OBBBA in the 2025 financial statements as required by accounting principles generally accepted in the United States. The impact of the OBBBA on Nucor's provision for income taxes was immaterial.
Components of earnings before income taxes and noncontrolling interests are as follows (in millions):
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
United States |
|
$ |
2,514 |
|
|
$ |
2,884 |
|
|
$ |
6,204 |
|
Foreign |
|
|
54 |
|
|
|
18 |
|
|
|
69 |
|
|
|
$ |
2,568 |
|
|
$ |
2,902 |
|
|
$ |
6,273 |
|
The provision for income taxes consists of the following (in millions):
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Current: |
|
|
|
|
|
|
|
|
|
|||
Federal |
|
$ |
306 |
|
|
$ |
587 |
|
|
$ |
1,128 |
|
State |
|
|
39 |
|
|
|
77 |
|
|
|
194 |
|
Foreign |
|
|
24 |
|
|
|
35 |
|
|
|
17 |
|
Total current |
|
|
369 |
|
|
|
699 |
|
|
|
1,339 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
|||
Federal |
|
|
145 |
|
|
|
(108 |
) |
|
|
20 |
|
State |
|
|
15 |
|
|
|
(7 |
) |
|
|
(19 |
) |
Foreign |
|
|
1 |
|
|
|
(1 |
) |
|
|
20 |
|
Total deferred |
|
|
161 |
|
|
|
(116 |
) |
|
|
21 |
|
Total provision for income taxes |
|
$ |
530 |
|
|
$ |
583 |
|
|
$ |
1,360 |
|
As further described in Note 2, Summary of Significant Accounting Policies, Nucor has adopted the new guidance related to income tax disclosures on a prospective basis. The following table is a reconciliation of the federal statutory rate (21%) to the total provision for the year ended December 31, 2025 in accordance with the new guidance for income tax disclosures (dollars in millions).
|
|
Year Ended December 31, 2025 |
|
|||||
U.S. federal statutory tax rate |
|
$ |
539 |
|
|
|
21.00 |
% |
State and local income taxes, net of federal income tax effect (1) |
|
|
63 |
|
|
|
2.45 |
% |
Foreign tax effects |
|
|
14 |
|
|
|
0.55 |
% |
Effect of changes in tax laws or rates enacted in the current period |
|
|
— |
|
|
|
0.00 |
% |
Effect of cross-border tax laws |
|
|
(2 |
) |
|
|
-0.08 |
% |
Tax credits |
|
|
(9 |
) |
|
|
-0.35 |
% |
Nontaxable or nondeductible items |
|
|
|
|
|
|
||
Noncontrolling interest |
|
|
(69 |
) |
|
|
-2.70 |
% |
Other nontaxable or nondeductible items |
|
|
22 |
|
|
|
0.86 |
% |
Changes in unrecognized tax benefits |
|
|
(30 |
) |
|
|
-1.17 |
% |
Other adjustments |
|
|
2 |
|
|
|
0.08 |
% |
Provision for income taxes |
|
$ |
530 |
|
|
|
20.64 |
% |
The following table is a reconciliation of the federal statutory rate (21%) to the total provision for the years ended December 31, 2024 and 2023 as previously reported and unadjusted for the new guidance for income tax disclosures:
|
|
Year Ended December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Taxes computed at statutory rate |
|
|
21.00 |
% |
|
|
21.00 |
% |
State income taxes, net of federal income tax benefit |
|
|
1.79 |
% |
|
|
2.14 |
% |
Federal research credit |
|
|
-1.55 |
% |
|
|
-0.51 |
% |
Equity in losses of foreign joint venture |
|
|
0.00 |
% |
|
|
0.17 |
% |
Foreign rate differential |
|
|
-0.10 |
% |
|
|
0.10 |
% |
Foreign valuation allowance |
|
|
1.13 |
% |
|
|
0.08 |
% |
Noncontrolling interests |
|
|
-2.33 |
% |
|
|
-1.27 |
% |
Other, net |
|
|
0.15 |
% |
|
|
-0.03 |
% |
Provision for income taxes |
|
|
20.09 |
% |
|
|
21.68 |
% |
For the year ended December 31, 2025, the effective tax rate on continuing operations was 20.64% compared to 20.09% for the year ended December 31, 2024.
Current federal and state income taxes receivable included in other current assets in the consolidated balance sheets were $83 million at December 31, 2025 ($218 million at December 31, 2024). In 2025, Nucor paid $190 million in net federal income taxes, $22 million in net state income taxes and $47 million in net foreign income taxes (of which $32 million was paid to Canada). Net income tax payments of $508 million and $1.06 billion were paid in 2024 and 2023, respectively, to federal, state and foreign jurisdictions.
Deferred tax assets and liabilities resulted from the following (in millions):
|
|
December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Deferred tax assets: |
|
|
|
|
|
|
||
Accrued liabilities and reserves |
|
$ |
262 |
|
|
$ |
248 |
|
Allowance for doubtful accounts |
|
|
35 |
|
|
|
40 |
|
Inventory |
|
|
83 |
|
|
|
87 |
|
Research and development expenditures |
|
|
12 |
|
|
|
207 |
|
Post-retirement benefits |
|
|
12 |
|
|
|
9 |
|
Hedges |
|
|
4 |
|
|
|
— |
|
Net operating loss carryforward |
|
|
134 |
|
|
|
113 |
|
Tax credit carryforwards |
|
|
255 |
|
|
|
127 |
|
Other deferred tax assets |
|
|
18 |
|
|
|
14 |
|
Valuation allowance (1) |
|
|
(275 |
) |
|
|
(152 |
) |
Total deferred tax assets |
|
|
540 |
|
|
|
693 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
||
Holdbacks and amounts not due under contracts |
|
|
(14 |
) |
|
|
(12 |
) |
Hedges |
|
|
— |
|
|
|
(1 |
) |
Intangibles |
|
|
(681 |
) |
|
|
(690 |
) |
Property, plant and equipment |
|
|
(1,103 |
) |
|
|
(1,085 |
) |
Other deferred tax liabilities |
|
|
(50 |
) |
|
|
(53 |
) |
Book/Tax differences on debt modifications |
|
|
(41 |
) |
|
|
(44 |
) |
Total deferred tax liabilities |
|
|
(1,889 |
) |
|
|
(1,885 |
) |
Total net deferred tax liabilities |
|
$ |
(1,349 |
) |
|
$ |
(1,192 |
) |
Non-current deferred tax assets included in other assets in the consolidated balance sheets were $30 million at December 31, 2025 ($44 million at December 31, 2024). Non-current deferred tax liabilities included in deferred credits and other liabilities in the consolidated balance sheets were $1.38 billion at December 31, 2025 ( $1.24 billion at December 31, 2024).
Nucor has not recognized deferred tax liabilities on its investment in foreign subsidiaries with undistributed earnings that satisfy the permanent reinvestment requirements (the deferred tax liabilities on the investments not permanently reinvested are immaterial). While Nucor considers future earnings to be permanently reinvested, it is expected that potential future distributions will likely be nontaxable. If this assertion of permanent reinvestment were to change, there may be deferred tax liabilities related to the withholding tax impacts on the actual distribution of certain cumulative undistributed foreign earnings, but the Company believes this amount to be immaterial.
State net operating loss ("NOL") carryforwards were $230 million at December 31, 2025 ($200 million at December 31, 2024). If unused, they will expire between 2026 and 2045. Foreign NOL carryforwards were $402 million at December 31, 2025 ($355 million at December 31, 2024). If unused, the foreign NOL carryforwards will expire between 2026 and 2035.
At December 31, 2025, Nucor had approximately $173 million of unrecognized tax benefits, of which $173 million would affect Nucor's effective tax rate, if recognized. At December 31, 2024, Nucor had approximately $212 million of unrecognized tax benefits, of which $209 million would affect Nucor's effective tax rate, if recognized.
A reconciliation of the beginning and ending amounts of unrecognized tax benefits recorded in deferred credits and other liabilities in the consolidated balance sheets is as follows (in millions):
|
|
December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Balance at beginning of year |
|
$ |
212 |
|
|
$ |
188 |
|
|
$ |
142 |
|
Additions based on tax positions related to current year |
|
|
11 |
|
|
|
31 |
|
|
|
44 |
|
Reductions based on tax positions related to |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Additions based on tax positions related to prior years |
|
|
— |
|
|
|
7 |
|
|
|
10 |
|
Reductions based on tax positions related to |
|
|
(13 |
) |
|
|
(8 |
) |
|
|
(1 |
) |
Reductions due to settlements with taxing authorities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Reductions due to statute of limitations lapse |
|
|
(37 |
) |
|
|
(6 |
) |
|
|
(7 |
) |
Balance at end of year |
|
$ |
173 |
|
|
$ |
212 |
|
|
$ |
188 |
|
During 2025, Nucor recognized $1 million of expense in interest and penalties ($12 million of expense in 2024 and $10 million of expense in 2023). The interest and penalties are included in interest expense, net and marketing, administrative and other expenses, respectively, in the consolidated statements of earnings. As of December 31, 2025, Nucor had approximately $49 million of accrued interest and penalties related to uncertain tax positions (approximately $50 million as of December 31, 2024). The accrued interest and penalties are included in accrued expenses and other current liabilities and deferred credits and other liabilities, respectively, in the consolidated balance sheets.
Nucor has concluded U.S. federal income tax matters for tax years through 2021. The tax years 2022 through 2024 remain open to examination by the Internal Revenue Service. 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 2017 through 2024 remain open to examination by other major taxing jurisdictions to which Nucor is subject (primarily Canada, Trinidad & Tobago, and other state and local jurisdictions).
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 27, 2024 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.