2004 ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
40
A reconciliation of the federal statutory tax rate (35%) to the total provision is as follows:
Year Ended December 31, 2004 2003 2002
Taxes computed at statutory rate 35.00% 35.00% 35.00%
State income taxes, net of
federal income tax benefit 1.07 (8.65) (4.92)
Resolution of prior year contingencies (0.65) (15.93) —
Federal research credit (0.12) (4.07) (0.62)
Other, net (0.08) (0.23) 0.09
Provision for income taxes 35.22% 6.12% 29.55%
Deferred tax assets and liabilities resulted from the following (in thousands):
December 31, 2004 2003
Deferred tax assets:
Accrued liabilities and reserves $ 108,177 $ 99,125
Allowance for doubtful accounts 12,816 6,683
Inventory 105,737 74,543
Credit carryforwards — 10,843
Post retirement benefits 17,224 15,817
Total deferred tax assets 243,954 207,011
Deferred tax liabilities:
Property, plant and equipment (390,754) (349,618)
Total net deferred tax liabilities $(146,800) $(142,607)
Current deferred tax assets were $163.0 million at December 31, 2004 ($115.2 million at December 31, 2003). Non-current
deferred tax liabilities were $309.8 million at December 31, 2004 ($257.8 million at December 31, 2003). Nucor paid $550.1
million in net federal and state income taxes in 2004, received $54.9 million in refunds in 2003 and paid $31.7 million in 2002.
14. EARNINGS PER SHARE:
The computations of basic and diluted earnings per share are as follows (in thousands, except per share data):
Year Ended December 31, 2004 2003 2002
Basic earnings per share:
Basic net earnings $1,121,485 $62,781 $162,080
Average shares outstanding 158,383 156,531 156,179
Basic net earnings per share $7.08 $0.40 $1.04
Diluted earnings per share:
Diluted net earnings $1,121,485 $62,781 $162,080
Diluted average shares outstanding:
Basic shares outstanding 158,383 156,531 156,179
Dilutive effect of stock options
and other 1,371 302 320
159,754 156,833 156,499
Diluted net earnings per share $7.02 $0.40 $1.04