Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 26, 2015 | Feb. 17, 2016 | Jun. 27, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | VALMONT INDUSTRIES INC | ||
Entity Central Index Key | 102,729 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 26, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-26 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 2,720,907,768 | ||
Entity Common Stock, Shares Outstanding | 22,786,996 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Income Statement [Abstract] | |||
Product sales | $ 2,338,132 | $ 2,824,456 | $ 2,976,359 |
Services sales | 280,792 | 298,687 | 327,852 |
Net sales | 2,618,924 | 3,123,143 | 3,304,211 |
Product cost of sales | 1,804,055 | 2,118,687 | 2,144,942 |
Services cost of sales | 193,836 | 196,339 | 214,041 |
Total cost of sales | 1,997,891 | 2,315,026 | 2,358,983 |
Gross profit | 621,033 | 808,117 | 945,228 |
Selling, general and administrative expenses | 447,368 | 450,401 | 472,159 |
Impairment of goodwill and intangible assets | 41,970 | 0 | 0 |
Operating income | 131,695 | 357,716 | 473,069 |
Other income (expenses): | |||
Interest expense | (44,621) | (36,790) | (32,502) |
Interest income | 3,296 | 6,046 | 6,477 |
Costs associated with refinancing of debt | 0 | (38,705) | 0 |
Other | 2,637 | (4,084) | 2,373 |
Total other income (expenses) | (38,688) | (73,533) | (23,652) |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 93,007 | 284,183 | 449,417 |
Income tax expense (benefit): | |||
Current | 42,569 | 89,643 | 167,922 |
Deferred | 4,858 | 5,251 | (10,141) |
Total income tax expense (benefit) | 47,427 | 94,894 | 157,781 |
Comprehensive income (loss) | (91,836) | 99,748 | 181,633 |
Earnings before equity in earnings of nonconsolidated subsidiaries | 45,580 | 189,289 | 291,636 |
Equity in earnings of nonconsolidated subsidiaries | (247) | 29 | 835 |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 0 | 0 | (12,011) |
Net earnings | 45,333 | 189,318 | 280,460 |
Less: Earnings attributable to noncontrolling interests | (5,216) | (5,342) | (1,971) |
Net earnings attributable to Valmont Industries, Inc. | $ 40,117 | $ 183,976 | $ 278,489 |
Earnings per share: | |||
Basic (in dollars per share) | $ 1.72 | $ 7.15 | $ 10.45 |
Diluted (in dollars per share) | 1.71 | 7.09 | 10.35 |
Cash dividends declared per share (in dollars per share) | $ 1.500 | $ 1.375 | $ 0.975 |
Weighted average number of shares of common stock outstanding - Basic (in shares) | 23,288 | 25,719 | 26,641 |
Weighted average number of shares of common stock outstanding - Diluted (in shares) | 23,405 | 25,932 | 26,899 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 45,333 | $ 189,318 | $ 280,460 |
Foreign currency translation adjustments: | |||
Unrealized translation gains (losses) | (96,694) | (82,275) | (71,698) |
Realized loss on sale of investment in foreign entity included in other expense | 0 | 0 | 5,194 |
Realized loss on deconsolidation of subsidiary | 0 | 0 | 8,559 |
Foreign currency translation adjustments | (96,694) | (82,275) | (57,945) |
Unrealized gain/(loss) on cash flow hedge: | |||
Amortization cost included in interest expense | 74 | 594 | 400 |
Realized (gain) loss included in net earnings | (3,130) | 983 | 0 |
Unrealized gain (loss) on cash flow hedge | 2,855 | 4,837 | 0 |
Derivative adjustment | (201) | 6,414 | 400 |
Actuarial gain (loss) in defined benefit pension plan, net of tax expense (benefit) of ($10,732) in 2015, ($3,450) in 2014, and ($10,143) in 2013 | (40,274) | (13,709) | (41,282) |
Other comprehensive income (loss) | (137,169) | (89,570) | (98,827) |
Comprehensive income (loss) | (91,836) | 99,748 | 181,633 |
Comprehensive loss (income) attributable to noncontrolling interests | (832) | (2,520) | (9,174) |
Comprehensive income (loss) attributable to Valmont Industries, Inc. | $ (92,668) | $ 97,228 | $ 172,459 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Actuarial gain (loss) in defined benefit pension plan liability, tax | $ (10,732) | $ (3,450) | $ (10,143) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 26, 2015 | Dec. 27, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 349,074 | $ 371,579 |
Receivables, less allowance of $10,055 in 2015 and $6,672 in 2014 | 466,443 | 536,918 |
Inventories | 340,672 | 359,522 |
Prepaid expenses | 46,137 | 56,912 |
Refundable and deferred income taxes | 24,526 | 68,010 |
Total current assets | 1,226,852 | 1,392,941 |
Property, plant and equipment, at cost | 1,081,056 | 1,139,569 |
Less accumulated depreciation and amortization | 548,567 | 533,116 |
Net property, plant and equipment | 532,489 | 606,453 |
Goodwill | 336,916 | 385,111 |
Other intangible assets, net | 170,197 | 202,004 |
Other assets, less allowance for doubtful receivables of $10,953 in 2015 and $3,250 in 2014 | 132,974 | 143,159 |
Total assets | 2,399,428 | 2,729,668 |
Current liabilities: | ||
Current installments of long-term debt | 1,077 | 1,181 |
Notes payable to banks | 976 | 13,952 |
Accounts payable | 179,983 | 196,565 |
Accrued employee compensation and benefits | 70,354 | 87,950 |
Accrued expenses | 105,593 | 88,480 |
Dividends payable | 8,571 | 9,086 |
Total current liabilities | 366,554 | 397,214 |
Deferred income taxes | 35,669 | 71,797 |
Long-term debt, excluding current installments | 763,964 | 766,654 |
Defined benefit pension liability | 179,323 | 150,124 |
Deferred compensation | 48,417 | 47,932 |
Other noncurrent liabilities | 40,290 | 45,542 |
Shareholders’ equity: | ||
Preferred stock of $1 par value - Authorized 500,000 shares; none issued | 0 | 0 |
Common stock of $1 par value - Authorized 75,000,000 shares; issued 27,900,000 issued | 27,900 | 27,900 |
Retained earnings | 1,729,679 | 1,718,662 |
Accumulated other comprehensive income (loss) | (267,218) | (134,433) |
Cost of treasury stock, common shares of 5,042,775 in 2015 and 3,670,781 in 2014 | (571,920) | (410,296) |
Total Valmont Industries, Inc. shareholders’ equity | 918,441 | 1,201,833 |
Noncontrolling interest in consolidated subsidiaries | 46,770 | 48,572 |
Total shareholders’ equity | 965,211 | 1,250,405 |
Total liabilities and shareholders’ equity | $ 2,399,428 | $ 2,729,668 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 26, 2015 | Dec. 27, 2014 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 10,055 | $ 6,672 |
Other assets, allowance for doubtful accounts receivable | $ 10,953 | $ 3,250 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized shares (in shares) | 500,000 | 500,000 |
Preferred stock, issued shares (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized shares (in shares) | 75,000,000 | 75,000,000 |
Common stock, issued shares (in shares) | 27,900,000 | 27,900,000 |
Common shares in treasury, shares | 5,042,775 | 3,670,781 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | 19 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 26, 2015 | |
Cash flows from operating activities: | ||||
Net earnings | $ 45,333 | $ 189,318 | $ 280,460 | |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 91,144 | 89,328 | 77,436 | |
Noncash loss on trading securities | 4,555 | 3,795 | 0 | |
Non-cash after-tax loss on deconsolidation | 0 | 0 | 12,011 | |
Impairment of assets - restructuring activities | 19,836 | 12,161 | ||
Impairment of goodwill & intangible assets | 41,970 | 0 | 0 | |
Non-cash debt refinancing costs | 0 | (2,478) | 0 | |
Stock-based compensation | 7,244 | 6,730 | 6,513 | |
Change in fair value of contingent consideration | 0 | (4,300) | 0 | |
Defined benefit pension plan expense (benefit) | (610) | 2,638 | 6,569 | |
Contribution to defined benefit pension plan | (16,500) | (18,173) | (17,619) | |
(Gain) loss on sale of property, plant and equipment | 2,327 | 392 | (4,318) | |
Equity in earnings in nonconsolidated subsidiaries | 247 | (29) | (835) | |
Deferred income taxes | 4,858 | 5,251 | (10,141) | |
Changes in assets and liabilities (net of acquisitions): | ||||
Receivables | 50,267 | 907 | (12,708) | |
Inventories | 3,296 | 21,458 | 13,431 | |
Prepaid expenses | 10,844 | (13,594) | 4,115 | |
Accounts payable | (6,805) | (34,321) | 12,448 | |
Accrued expenses | 8,918 | (34,778) | 21,698 | |
Other noncurrent liabilities | (1,764) | 1,755 | (1,474) | |
Income taxes payable (refundable) | 7,107 | (39,803) | (3,305) | |
Net cash flows from operating activities | 272,267 | 174,096 | 396,442 | |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (45,468) | (73,023) | (106,753) | |
Proceeds from sale of assets | 3,249 | 2,489 | 37,582 | |
Acquisitions, net of cash acquired | (12,778) | (185,710) | (63,152) | |
Other, net | 6,826 | (619) | 602 | |
Net cash flows from investing activities | (48,171) | (256,863) | (131,721) | |
Cash flows from financing activities: | ||||
Net borrowings under short-term agreements | (12,853) | (4,472) | 5,510 | |
Proceeds from long-term borrowings | 68,000 | 652,211 | 274 | |
Principal payments on long-term borrowings | (69,098) | (357,858) | (591) | |
vmi_PaymentsOnDeconsolidationOfSubsidiary | 0 | 0 | (11,615) | |
Settlement of financial derivatives | 0 | 4,981 | 0 | |
Dividends paid | (35,357) | (32,443) | (25,414) | |
Dividends to noncontrolling interest | (2,634) | (2,919) | (1,767) | |
Payments to Acquire Additional Interest in Subsidiaries | 0 | 0 | (9,324) | |
Debt issuance costs | 0 | (7,644) | 0 | |
Purchase of treasury shares | (168,983) | (395,045) | 0 | $ (564,000) |
Proceeds from exercises under stock plans | 13,075 | 14,572 | 16,348 | |
Excess tax benefits from stock option exercises | 1,699 | 4,264 | 5,306 | |
Purchase of common treasury shares—stock plan exercises | (13,854) | (15,403) | (16,107) | |
Net cash flows from financing activities | (220,005) | (139,756) | (37,380) | |
Effect of exchange rate changes on cash and cash equivalents | (26,596) | (19,604) | (27,764) | |
Net change in cash and cash equivalents | (22,505) | (242,127) | 199,577 | |
Cash and cash equivalents—beginning of year | 371,579 | 613,706 | 414,129 | |
Cash and cash equivalents—end of period | $ 349,074 | $ 371,579 | $ 613,706 | $ 349,074 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | DS SM | AgSense LLC | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Noncontrolling interest in consolidated subsidiaries | Noncontrolling interest in consolidated subsidiariesDS SM | Noncontrolling interest in consolidated subsidiariesAgSense LLC |
Beginning balance at Dec. 29, 2012 | $ 1,407,010 | $ 27,900 | $ 0 | $ 1,300,529 | $ 43,938 | $ (22,455) | $ 57,098 | ||||
Increase (Decrease) in Shareholders' Equity | |||||||||||
Net earnings | 280,460 | 278,489 | 1,971 | ||||||||
Other comprehensive income (loss) | (98,827) | (91,623) | (7,204) | ||||||||
Cash dividends declared | 26,118 | 26,118 | |||||||||
Dividends to noncontrolling interests | (1,767) | (1,767) | |||||||||
Purchase of noncontrolling interest | (9,324) | (2,038) | (7,286) | ||||||||
Deconsolidation of EMD | (20,316) | (20,316) | |||||||||
Acquisition | 325 | 325 | |||||||||
Stock plan exercises | (16,107) | (16,107) | |||||||||
Stock options exercised | 16,348 | (9,781) | 9,770 | 16,359 | |||||||
Tax benefit from stock option exercises | 5,306 | 5,306 | |||||||||
Stock option expense | 5,194 | 5,194 | |||||||||
Stock awards | 2,662 | 1,319 | 1,343 | ||||||||
Ending balance at Dec. 28, 2013 | 1,544,846 | 27,900 | 0 | 1,562,670 | (47,685) | (20,860) | 22,821 | ||||
Increase (Decrease) in Shareholders' Equity | |||||||||||
Net earnings | 189,318 | 183,976 | 5,342 | ||||||||
Other comprehensive income (loss) | (89,570) | (86,748) | (2,822) | ||||||||
Cash dividends declared | 35,036 | 35,036 | |||||||||
Dividends to noncontrolling interests | (2,919) | (2,919) | |||||||||
Acquisition | $ 9,309 | $ 16,333 | $ 9,309 | $ 16,333 | |||||||
Addition of noncontrolling interest | 508 | 508 | |||||||||
Purchase of treasury shares | (395,045) | (395,045) | |||||||||
Stock plan exercises | (15,403) | (15,403) | |||||||||
Stock options exercised | 14,572 | (10,994) | 7,052 | 18,514 | |||||||
Tax benefit from stock option exercises | 4,264 | 4,264 | |||||||||
Stock option expense | 4,461 | 4,461 | |||||||||
Stock awards | 4,767 | 2,269 | 2,498 | ||||||||
Ending balance at Dec. 27, 2014 | 1,250,405 | 27,900 | 0 | 1,718,662 | (134,433) | (410,296) | 48,572 | ||||
Increase (Decrease) in Shareholders' Equity | |||||||||||
Net earnings | 45,333 | 40,117 | 5,216 | ||||||||
Other comprehensive income (loss) | (137,169) | (132,785) | (4,384) | ||||||||
Cash dividends declared | 34,816 | 34,816 | |||||||||
Dividends to noncontrolling interests | (2,634) | (2,634) | |||||||||
Purchase of treasury shares | (168,983) | (168,983) | |||||||||
Stock plan exercises | (13,854) | (13,854) | |||||||||
Stock options exercised | 13,075 | (12,895) | 5,716 | 20,254 | |||||||
Tax benefit from stock option exercises | 1,699 | 1,699 | |||||||||
Stock option expense | 5,137 | 5,137 | |||||||||
Stock awards | 7,018 | 6,059 | 959 | ||||||||
Ending balance at Dec. 26, 2015 | $ 965,211 | $ 27,900 | $ 0 | $ 1,729,679 | $ (267,218) | $ (571,920) | $ 46,770 |
CONDENSED CONSOLIDATED STATEME9
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per share (in dollars per share) | $ 1.50 | $ 1.375 | $ 0.975 |
Number of shares acquired | 1,435,488 | 2,711,149 | |
Stock plan exercises; shares acquired (in shares) | 112,995 | 97,974 | 103,023 |
Stock options exercised; shares issued (in shares) | 169,493 | 194,627 | 216,105 |
Stock awards; shares issued (in shares) | 10,329 | 22,010 | 33,721 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 26, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of Valmont Industries, Inc. and its wholly and majority‑owned subsidiaries (the Company). The investment in Delta EMD Pty. Ltd ("EMD") is recorded at fair value subsequent to its deconsolidation in 2013. Investments in other 20% to 50% owned affiliates and joint ventures are accounted for by the equity method. Investments in less than 20% owned affiliates are accounted for by the cost method. All intercompany items have been eliminated. Cash overdrafts Cash book overdrafts totaling $15,536 and $18,038 were classified as accounts payable at December 26, 2015 and December 27, 2014 , respectively. The Company’s policy is to report the change in book overdrafts as an operating activity in the Consolidated Statements of Cash Flows. Segments The Company has five reportable segments based on its management structure. Each segment is global in nature with a manager responsible for segment operational performance and allocation of capital within the segment. Reportable segments are as follows: ENGINEERED SUPPORT STRUCTURES: This segment consists of the manufacture of engineered metal structures and components for the global lighting and traffic, wireless communication, and roadway safety; UTILITY SUPPORT STRUCTURES: This segment consists of the manufacture of engineered steel and concrete structures for the global utility industry; ENERGY AND MINING: This segment consists of the manufacture of access systems applications, forged steel grinding media, and offshore oil and gas and wind energy structures. COATINGS: This segment consists of galvanizing, anodizing and powder coating services on a global basis; and IRRIGATION: This segment consists of the manufacture of agricultural irrigation equipment and related parts and services for the global agricultural industry as well as tubular products for industrial customers. In addition to these five reportable segments, there are other businesses and activities that individually are not more than 10% of consolidated sales. These operations include the distribution of industrial fasteners. These operations collectively are reported in the “Other” category. Fiscal Year The Company operates on a 52 or 53 week fiscal year with each year ending on the last Saturday in December. Accordingly, the Company’s fiscal years ended December 26, 2015 , December 27, 2014 , and December 28, 2013 consisted of 52 weeks. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Accounts Receivable Accounts receivable are reported on the balance sheet net of any allowance for doubtful accounts. Allowances are maintained in amounts considered to be appropriate in relation to the outstanding receivables based on age of the receivable, economic conditions and customer credit quality. As the Company’s international Irrigation business has grown, the exposure to potential losses in international markets has also increased. These exposures can be difficult to estimate, particularly in areas of political instability, or with governments with which the Company has limited experience, or where there is a lack of transparency as to the current credit condition of governmental units. As of December 26, 2015 , the Company had approximately $10 million in delinquent accounts receivable with Chinese municipal entities with a specific allowance recorded against it based on our estimation of what will not be fully collected. The Company’s allowance for doubtful accounts related to both current and long-term accounts receivables increased to $21.0 million at December 26, 2015 from $9.9 million at December 27, 2014. Inventories Approximately 39% and 44% of inventory is valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market as of December 26, 2015 and December 27, 2014 , respectively. All other inventory is valued at the lower of cost, determined on the first-in, first-out (FIFO) method or market. Finished goods and manufactured goods inventories include the costs of acquired raw materials and related factory labor and overhead charges required to convert raw materials to manufactured and finished goods. The excess of replacement cost of inventories over the LIFO value is approximately $35,075 and $47,178 at December 26, 2015 and December 27, 2014 , respectively. Long-Lived Assets Property, plant and equipment are recorded at historical cost. The Company generally uses the straight-line method in computing depreciation and amortization for financial reporting purposes and accelerated methods for income tax purposes. The annual provisions for depreciation and amortization have been computed principally in accordance with the following ranges of asset lives: buildings and improvements 15 to 40 years, machinery and equipment 3 to 12 years, transportation equipment 3 to 24 years, office furniture and equipment 3 to 7 years and intangible assets 5 to 20 years. Depreciation expense in fiscal 2015 , 2014 and 2013 was $72,805 , $73,395 and $62,291 , respectively. An impairment loss is recognized if the carrying amount of an asset may not be recoverable and exceeds estimated future undiscounted cash flows of the asset. A recognized impairment loss reduces the carrying amount of the asset to its estimated fair value. The Company recognized a $4.1 million impairment of the Melbourne galvanizing site's equipment in 2015 as the Company determined that our galvanizing operation in Melbourne, Australia would not generate sufficient cash flows on an undiscounted cash flow basis to recover its carrying value. Other impairment losses were recorded in 2015 as facilities were closed and future plans for certain fixed assets changed in connection with the Company's restructuring plans. In November 2013, it was determined that the carrying amount of certain fixed assets of Delta EMD, Ltd. were not recoverable and an impairment loss of $12,161 was recorded to reduce the carrying amount of the fixed assets to fair value. The impairment was a result of continued global oversupply of manganese dioxide in the market, increased price competition and increasing input costs. In addition, a major customer advised us that its purchases from EMD in 2014 would be substantially below prior years. This charge was recorded in Product Cost of Sales in the Consolidated Statements of Earnings. No impairment losses were recorded in 2014. The Company evaluates its reporting units for impairment of goodwill during the third fiscal quarter of each year, or when events or changes in circumstances indicate the carrying value may not be recoverable. Reporting units are evaluated using after-tax operating cash flows (less capital expenditures) discounted to present value. Indefinite‑lived intangible assets are assessed separately from goodwill as part of the annual impairment testing, using a relief-from-royalty method. If the underlying assumptions related to the valuation of a reporting unit’s goodwill or an indefinite‑lived intangible asset change materially before or after the annual impairment testing, the reporting unit or asset is evaluated for potential impairment. In (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) these evaluations, management considers recent operating performance, expected future performance, industry conditions and other indicators of potential impairment. The Company performed an interim test of its Access Systems reporting unit and the Webforge and Locker trade names as of year-end (after the 2015 annual impairment test) based on changes in expected future performance. Please see footnote 7 for details of impairments recognized during 2015. Income Taxes The Company uses the asset and liability method to calculate deferred income taxes. Deferred tax assets and liabilities are recognized on temporary differences between financial statement and tax bases of assets and liabilities using enacted tax rates. The effect of tax rate changes on deferred tax assets and liabilities is recognized in income during the period that includes the enactment date. Warranties The Company's provision for product warranty reflects management's best estimate of probable liability under its product warranties. Estimated future warranty costs are recorded at the time a sale is recognized. Future warranty liability is determined based on applying historical claim rate experience to units sold that are still within the warranty period. In addition, the Company records provisions for known warranty claims. Pension Benefits Certain expenses are incurred in connection with a defined benefit pension plan. In order to measure expense and the related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as current facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits. Derivative Instrument The Company may enter into derivative financial instruments to manage risk associated with fluctuation in interest rates, foreign currency rates or commodities. Where applicable, the Company may elect to account for such derivatives as either a cash flow or fair value hedge. Comprehensive Income (Loss) Comprehensive income includes net income, currency translation adjustments, certain derivative-related activity and changes in net actuarial gains/losses from a pension plan. Results of operations for foreign subsidiaries are translated using the average exchange rates during the period. Assets and liabilities are translated at the exchange rates in effect on the balance sheet dates. The components of accumulated other comprehensive income (loss) consisted of the following: Foreign Currency Translation Adjustments Unrealized Gain on Cash Flow Hedge Defined Benefit Pension Plan Accumulated Other Comprehensive Income (Loss) Balance at December 27, 2014 $ (99,618 ) $ 3,879 $ (38,694 ) $ (134,433 ) Current-period comprehensive income (loss) (92,310 ) (201 ) (40,274 ) (132,785 ) Balance at December 26, 2015 $ (191,928 ) $ 3,678 $ (78,968 ) $ (267,218 ) (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue Recognition Revenue is recognized upon shipment of the product or delivery of the service to the customer, which coincides with passage of title and risk of loss to the customer. Customer acceptance provisions exist only in the design stage of our products. Acceptance of the design by the customer is required before the product is manufactured and delivered to the customer. We are not entitled to any compensation solely based on design of the product and we do not recognize any revenue associated with the design stage. No general rights of return exist for customers once the product has been delivered. Shipping and handling costs associated with sales are recorded as cost of goods sold. Sales discounts and rebates are estimated based on past experience and are recorded as a reduction of net sales in the period in which the sale is recognized. Service revenues predominantly consist of coatings services provided by our Coatings segment to its customers. Revenue from our offshore and other complex steel structures products is recognized using the percentage-of-completion method, based primarily on contract cost incurred to date compared to total estimated contract cost. Use of Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the reported amounts of revenue and expenses and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. Equity Method Investments The Company has equity method investments in non-consolidated subsidiaries which are recorded within "Other assets" on the Consolidated Balance Sheet. In February 2013, the Company sold its nonconsolidated investment in Manganese Materials Company Pty. Ltd. to the majority owner of the business for approximately $29,250 . The profit on the sale was not significant, which included the recognition of $5,194 in currency translation adjustments previously recorded as part of "Accumulated other comprehensive income" on the Consolidated Balance Sheet. The Company also recognized certain deferred tax benefits of approximately $3,200 associated with the sale in the first quarter of 2013. Treasury Stock Repurchased shares are recorded as “Treasury Stock” and result in a reduction of “Shareholders’ Equity.” When treasury shares are reissued, the Company uses the last-in, first-out method, and the difference between the repurchase cost and re-issuance price is charged or credited to “Additional Paid-In Capital.” In May 2014, the Company announced a capital allocation philosophy which covered a share repurchase program. Specifically, the Board of Directors authorized the purchase of up to $500 million of the Company's outstanding common stock from time to time over twelve months at prevailing market prices, through open market or privately-negotiated transactions. In February 2015, the Board of Directors authorized an additional purchase of up to $250 million of the Company's outstanding common stock with no stated expiration date. As of December 26, 2015, we have acquired 4,146,637 shares for approximately $564.0 million under this share repurchase program. Research and Development Research and development costs are charged to operations in the year incurred. These costs are a component of “Selling, general and administrative expenses” on the Consolidated Statements of Earnings. Research and development expenses were approximately $11,600 in 2015 , $13,900 in 2014 , and $10,200 in 2013 . (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification ("ASC") 605, Revenue Recognition. The new revenue recognition standard requires entities to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 is effective for interim and annual reporting periods beginning after December 15, 2017 and is to be applied retrospectively. Early application is not permitted. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated results of operations and financial position. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory.” Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. Management is evaluating the provisions of this statement, including which period to adopt, and has not determined what impact the adoption of ASU 2015-11 will have on the Company's financial position or results of operations. In April 2015, the FASB issued ASU 2015-04, "Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets." Under this ASU, an entity with a fiscal year-end that differs from a calendar month-end can apply a practical expedient that permits an entity to measure defined benefit plan assets and obligations using the month-end closest to the entity's fiscal year-end consistently going forward. The Company early adopted this accounting policy effective with year-end 2015. The pension plan obligation recorded on the balance sheet as of December 26, 2015 has been measured based on the pension plan assets and obligation as of December 31, 2015. In April 2015, the FASB issued ASU 2015-03 which provides guidance requiring debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability and further clarification guidance allows the cost of securing a revolving line of credit to be recorded as a deferred asset regardless of whether a balance is outstanding. This guidance is effective for the Company's first quarter of fiscal year 2016 with early adoption permitted, and requires the use of the retrospective transition method. At December 26, 2015, the Company has approximately $7 million of debt issuance cost for its long-term debt (excluding its revolving line of credit) which will be reclassified as a direct reduction of long-term debt instead of an other asset in the consolidated balance sheets when this ASU is adopted in fiscal 2016. In November 2015, the FASB issued ASU 2015-17 which provides guidance on simplifying the balance sheet classification of deferred taxes. The guidance requires the classification of deferred tax assets and liabilities as noncurrent in a classified balance sheet. The current requirement that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not affected by this update. The guidance is effective for the Company's first quarter of fiscal year 2017 financial statements with early adoption permitted, and allows for the use of either a prospective or retrospective transition method. The Company early adopted this guidance on a prospective basis starting with its December 26, 2015 consolidated financial statements. |
ACQUISITIONS AND DECONSOLIDATIO
ACQUISITIONS AND DECONSOLIDATION | 12 Months Ended |
Dec. 26, 2015 | |
ACQUISITIONS AND DECONSOLIDATION | |
ACQUISITIONS AND DECONSOLIDATION | ACQUISITIONS AND DECONSOLIDATION Acquisitions of Businesses On September 30, 2015, the Company purchased American Galvanizing for $12,778 in cash, net of cash acquired, plus assumed liabilities. American Galvanizing operates a custom galvanizing operation in New Jersey with annual sales of approximately $10,000 . Potential pro-forma disclosures were omitted as this business did not have a significant impact on the Company's 2015 financial results. In the preliminary purchase price allocation, goodwill of $3,019 and $2,178 of customer relationships, trade name and other intangible assets were recorded. Goodwill is not deductible for tax purposes. This business is included in the Coatings segment and was acquired to expand the Company's geographic presence in the Northeast United States. We expect to finalize the purchase price allocation in the first quarter of 2016 once all management reviews have been completed. On March 3, 2014, the Company purchased 90% of the outstanding shares of DS SM A/S, which was renamed Valmont SM. Valmont SM is a manufacturer of heavy complex steel structures for a diverse range of industries including wind energy, offshore oil and gas, and electricity transmission. Valmont SM operates two manufacturing locations in Denmark and its operations are reported in the Energy and Mining segment. The purchase price paid for the business at closing (net of $56 cash acquired) was $120,483 , including the payoff of an intercompany note payable by Valmont SM to its prior affiliates. The purchase is subject to an earn-out clause that is contingent on meeting future operational metrics for which no liability has been established based on expectations. The earn-out clause expires on December 31, 2016. The acquisition, which was funded by cash held by the Company, was completed to participate in markets for wind energy, oil and gas exploration, power transmission and other related infrastructure projects and to increase the Company's geographic footprint in Europe. The Company also funded a portion of the acquisition with an intercompany note payable. The excess purchase price over the fair value of assets resulted in goodwill, which is not deductible for tax purposes. The following table summarizes the fair values of the assets acquired and liabilities assumed as of the date of acquisition, which was finalized in the fourth quarter of 2014. At March 3, 2014 Current assets $ 73,421 Property, plant and equipment 85,638 Intangible assets 30,340 Goodwill 16,803 Total fair value of assets acquired $ 206,202 Current liabilities 47,754 Deferred income taxes 19,715 Intercompany note payable 37,448 Long-term debt 8,941 Total fair value of liabilities assumed 113,858 Non-controlling interests 9,309 Net assets acquired $ 83,035 (2) ACQUISITIONS AND DECONSOLIDATION (Continued) Based on the fair value assessments, the Company allocated $30,340 of the purchase price to acquired intangible assets. The following table summarizes the major classes of Valmont SM's acquired intangible assets and the respective weighted average amortization periods: Amount Weighted Average Amortization Period (Years) Trade Names $ 11,470 Indefinite Backlog 3,145 1.5 Customer Relationships 15,725 12.0 Total Intangible Assets $ 30,340 On October 6, 2014, the Company acquired Shakespeare Composite Structures (Shakespeare) for $48,272 in cash, plus assumed liabilities. Shakespeare is a manufacturer of fiberglass reinforced composite structures and products with two manufacturing facilities in South Carolina. Shakespeare's annual sales are approximately $55,000 and its operations are included in the Engineered Support Structures segment. The acquisition of Shakespeare was completed to expand our product offering of composite structure solutions. The fair value measurement process and purchase price allocation for Shakespeare were finalized in the third quarter of 2015. The following table summarizes the fair values of the assets acquired and liabilities assumed as of the date of the Shakespeare acquisition (goodwill is deductible for tax purposes): At October 6, 2014 Current assets $ 12,532 Property, plant and equipment 10,694 Intangible assets 13,500 Goodwill 15,416 Total fair value of assets acquired $ 52,142 Current liabilities 3,870 Net assets acquired $ 48,272 Based on the fair value assessments, the Company allocated $13,500 of the purchase price to acquired intangible assets. The following table summarizes the major classes of Shakespeare acquired intangible assets and the respective weighted-average amortization periods: Amount Weighted Average Amortization Period (Years) Trade Names $ 4,000 Indefinite Customer Relationships 9,500 12.0 Total Intangible Assets $ 13,500 (2) ACQUISITIONS AND DECONSOLIDATION (Continued) On August 25, 2014, the Company acquired 51% of AgSense, LLC (AgSense) for $17 million in cash. AgSense operates in South Dakota and is the creator of global WagNet network which provides growers with a more complete view of their entire farming operation by tying irrigation decision making to field, crop and weather conditions. In the measurement of fair values of assets acquired and liabilities assumed, goodwill of $17,193 and $16,083 of customer relationships, trade name and other intangible assets were recorded. A portion of the goodwill is deductible for tax purposes. AgSense is included in the Irrigation Segment. The fair value measurement process and purchase price allocation for AgSense were finalized in the second quarter of 2015. On February 5, 2013, the Company purchased 100% of the outstanding shares of Locker Group Holdings Pty. Ltd. ("Locker"). Locker is a manufacturer of perforated and expanded metal for the non-residential market, industrial flooring and handrails for the access systems market, and screening media for applications in the industrial and mining sectors in Australia and Asia. Locker's operations are reported in the Energy and Mining segment. The acquisition, which was funded by cash held by the Company, was completed to expand our product offering and sales coverage for access systems and related products in Asia Pacific. The purchase price paid for the business at closing (net of $116 cash acquired) was $53,152 . In addition, a maximum of $7,911 additional purchase price could be paid to the sellers upon the achievement of certain gross profit and inventory targets over the two years following date of acquisition and the Company recognized an estimated liability of $7,178 at February 5, 2013. During 2014 and 2013, the Company made payments of approximately $2,300 to the sellers with respect to achievement of these targets. The Company determined that the additional purchase price tied to a gross profit target for the twelve months ending February 2015 would not be achieved and therefore the additional purchase price with respect to that target was not paid. As such, approximately $4,000 of this liability was reversed and recognized against cost of goods sold during the third quarter of 2014. In December 2013, the Company purchased 100% of the outstanding shares of Armorflex International Ltd. ("Armorflex") for $10,000 . Armorflex is a company holding proprietary intellectual property for products serving the highway safety market. In the measurement of fair values of assets acquired and liabilities assumed, we recorded goodwill of $6,823 and an aggregate of $3,792 for customer relationships, patented technology and other intangible assets. The goodwill is not deductible for tax purposes. Armorflex is included in the Engineered Support Structures segment and was acquired to expand the Company's highway safety product offering in the Asia Pacific region. This acquisition did not have a significant effect on the Company's fiscal 2013 financial results. The Company’s Condensed Consolidated Statement of Earnings for the year ended December 26, 2015 included net sales of $179,132 and net earnings of $8,209 resulting from the Valmont SM, AgSense, and Shakespeare acquisitions. The pro-forma effect of these acquisitions on the 2014 Statement of Earnings was as follows: Year ended December 27, 2014 Net sales $ 3,201,947 Net earnings $ 189,391 Earnings per share—diluted $ 7.30 Acquisitions of Noncontrolling Interests In October 2013, the Company acquired the remaining 40% of Valley Irrigation South Africa Pty. Ltd. that it did not own for $9,324 . As this transaction was an acquisition of the remaining shares of a consolidated subsidiary with no change in control, it was recorded within shareholders' equity and as a financing cash flow in the Consolidated Statement of Cash Flows. (2) ACQUISITIONS AND DECONSOLIDATION (Continued) Deconsolidation In December 2013, the Company's ownership in Delta EMD, Ltd. ("EMD"), a consolidated subsidiary located in South Africa, was reduced below 50% through a supplementary contribution of 1,500,000 shares to the Delta Pension Plan ("DPP"). The DPP is managed by independent trustees whose fiduciary responsibility is to make decisions for the DPP based on the best interests of the participants. The loss recognized on the deconsolidation of EMD was $12,011 , or $0.45 per share, which consisted of $8,559 realized losses on foreign currency translation adjustments previously reported in shareholders' equity and $3,452 in losses due to remeasurement of the remaining investment to fair value based on the market value of EMD shares, which are publicly traded on the Johannesburg stock exchange (JSE:DTA). The Company made a fair value election with respect to its remaining ownership interest in EMD and will report its investment at fair value going forward, using the quoted market price of the EMD shares as fair value. In 2014, the Company recorded a non-cash mark to market loss of $3.8 million due to the decrease in fair value of the shares. In 2015, the Company received a $5.0 million special dividend that was fully offset by a non-cash mark to market loss; the EMD investment then appreciated approximately $0.5 million in 2015. The net sales and net loss of EMD included in the Company's Consolidated Statements of Earnings in 2013 was $38,621 and $3,535 , respectively. |
RESTRUCTURING ACTIVITIES
RESTRUCTURING ACTIVITIES | 12 Months Ended |
Dec. 26, 2015 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING ACTIVITIES | RESTRUCTURING ACTIVITIES In April 2015, the Company's Board of Directors authorized a broad restructuring plan (the "Plan") of up to $60 million to respond to the market environment in certain businesses. The following pre-tax expenses were recognized in 2015: ESS Energy & Mining Utility Coatings Irrigation Other/ Corporate TOTAL Severance $ 2,305 $ 2,112 $ 1,555 $ 508 $ 724 $ — $ 7,204 Other cash restructuring expenses 1,467 882 1,853 175 — — 4,377 Asset impairments/net loss on disposals 333 3,361 1,142 5,291 — — 10,127 Total cost of sales 4,105 6,355 4,550 5,974 724 — 21,708 Severance 2,951 714 404 270 423 1,957 6,719 Other cash restructuring expenses — — 238 336 — 1,142 1,716 Asset impairments/net loss on disposals 2,223 — — — 130 7,356 9,709 Total selling, general and administrative expenses 5,174 714 642 606 553 10,455 18,144 Consolidated total $ 9,279 $ 7,069 $ 5,192 $ 6,580 $ 1,277 $ 10,455 $ 39,852 The $60 million Plan contemplated that the Company may have to recognize an impairment of goodwill in its APAC galvanizing reporting unit, dependent on future financial projections factoring the restructuring activities taking place in that reporting unit. The Company recognized $17.3 million of impairments in the APAC galvanizing reporting unit during fiscal 2015 which was comparable to the amount included in the $60 million original estimate. (3) RESTRUCTURING ACTIVITIES (Continued) Liabilities recorded for the Plan in 2015 and changes therein were as follows: Balance at December 27, 2014 Recognized Restructuring Expense Costs Paid or Otherwise Settled Balance at December 26, 2015 Severance $ — $ 13,923 $ 12,616 $ 1,307 Other cash restructuring expenses — 6,093 4,667 1,426 Total $ — $ 20,016 $ 17,283 $ 2,733 A significant change in market conditions in any of the Company's segments may affect the Company's assessment of the restructuring activities. |
CASH FLOW SUPPLEMENTARY INFORMA
CASH FLOW SUPPLEMENTARY INFORMATION | 12 Months Ended |
Dec. 26, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
CASH FLOW SUPPLEMENTARY INFORMATION | CASH FLOW SUPPLEMENTARY INFORMATION The Company considers all highly liquid temporary cash investments purchased with an original maturity of three months or less at the time of purchase to be cash equivalents. Cash payments for interest and income taxes (net of refunds) for the fifty-two weeks ended December 26, 2015 , December 27, 2014 , and December 28, 2013 were as follows: 2015 2014 2013 Interest $ 44,974 $ 32,601 $ 32,655 Income taxes 33,046 111,174 167,146 Share Repurchase Programs On May 13, 2014, the Company announced a capital allocation philosophy which increased the dividend by 50% and covered a share repurchase program of up to $500 million of the Company's outstanding common stock to be acquired from time to time over twelve months at prevailing market prices, through open market or privately-negotiated transactions. On February 24, 2015, the Board of Directors authorized an additional purchase of up to $250 million of the Company's outstanding common stock with no stated expiration date. As of December 26, 2015 , the Company has acquired 4,146,637 shares for approximately $564.0 million under the share repurchase program. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 26, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | (5) INVENTORIES Inventories consisted of the following at December 26, 2015 and December 27, 2014 : 2015 2014 Raw materials and purchased parts $ 162,977 $ 179,093 Work-in-process 25,644 27,835 Finished goods and manufactured goods 187,126 199,772 Subtotal 375,747 406,700 Less: LIFO reserve 35,075 47,178 $ 340,672 $ 359,522 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 26, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, at cost, consist of the following: 2015 2014 Land and improvements $ 79,450 $ 82,372 Buildings and improvements 323,469 327,863 Machinery and equipment 565,771 593,387 Transportation equipment 17,774 35,205 Office furniture and equipment 77,054 76,589 Construction in progress 17,538 24,153 $ 1,081,056 $ 1,139,569 The Company leases certain facilities, machinery, computer equipment and transportation equipment under operating leases with unexpired terms ranging from one to fifteen years. Rental expense for operating leases amounted to $25,546 , $28,580 , and $26,567 for fiscal 2015 , 2014 , and 2013 , respectively. Minimum lease payments under operating leases expiring subsequent to December 26, 2015 are: Fiscal year ending 2016 $ 20,816 2017 17,824 2018 13,587 2019 9,510 2020 7,894 Subsequent 31,986 Total minimum lease payments $ 101,617 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 26, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Amortized Intangible Assets The components of amortized intangible assets at December 26, 2015 and December 27, 2014 were as follows: December 26, 2015 Gross Accumulated Weighted Customer Relationships $ 201,801 $ 101,614 13 years Proprietary Software & Database 3,571 2,966 8 years Patents & Proprietary Technology 6,815 3,421 11 years Other 3,752 3,671 3 years $ 215,939 $ 111,672 (7) GOODWILL AND INTANGIBLE ASSETS (Continued) December 27, 2014 Gross Accumulated Weighted Customer Relationships $ 207,509 $ 88,538 13 years Proprietary Software & Database 3,769 2,977 8 years Patents & Proprietary Technology 12,394 8,537 8 years Other 4,355 2,998 3 years $ 228,027 $ 103,050 Amortization expense for intangible assets was $ 18,339 , $ 18,414 and $ 15,233 for the fiscal years ended December 26, 2015 , December 27, 2014 and December 28, 2013 , respectively. Estimated annual amortization expense related to finite‑lived intangible assets is as follows: Estimated 2016 $ 15,945 2017 15,905 2018 14,259 2019 13,452 2020 12,430 The useful lives assigned to finite‑lived intangible assets included consideration of factors such as the Company’s past and expected experience related to customer retention rates, the remaining legal or contractual life of the underlying arrangement that resulted in the recognition of the intangible asset and the Company’s expected use of the intangible asset. Non-amortized intangible assets Intangible assets with indefinite lives are not amortized. The carrying values of trade names at December 26, 2015 and December 27, 2014 were as follows: December 26, December 27, Year Acquired Webforge $ 10,430 $ 16,801 2010 Valmont SM 8,919 10,818 2014 Newmark 11,111 11,111 2004 Ingal EPS/Ingal Civil Products 8,504 8,867 2010 Donhad 6,415 6,689 2010 Shakespeare 4,000 4,000 2014 Industrial Galvanizers 2,662 3,889 2010 Other 13,889 14,852 $ 65,930 $ 77,027 (7) GOODWILL AND INTANGIBLE ASSETS (Continued) In its determination of these intangible assets as indefinite‑lived, the Company considered such factors as its expected future use of the intangible asset, legal, regulatory, technological and competitive factors that may impact the useful life or value of the intangible asset and the expected costs to maintain the value of the intangible asset. The Company expects that these intangible assets will maintain their value indefinitely. Accordingly, these assets are not amortized. The Company’s trade names were tested for impairment in the third quarter of 2015. The values of the trade names were determined using the relief-from-royalty method. Based on this evaluation, the Company recorded a $5,000 impairment of the Webforge trade name (in Energy and Mining segment) and a $1,100 impairment of the Industrial Galvanizing trade name (in Coatings segment) during 2015. The lower price of oil and natural gas in the fourth quarter of 2015 was a qualitative event requiring the Company to re-assess the fair value of the Webforge trade name. As a result, the Company recognized an additional $830 impairment of that trade name. No other trade names were determined to be impaired during 2015. Goodwill The carrying amount of goodwill by segment as of December 26, 2015 and December 27, 2014 was as follows: Engineered Energy and Mining Segment Utility Coatings Irrigation Total Balance at December 27, 2014 $ 107,868 $ 106,770 $ 75,404 $ 75,533 $ 19,536 $ 385,111 Impairment — (18,670 ) — (16,222 ) — (34,892 ) Acquisition — — — 3,019 — 3,019 Foreign currency translation (4,856 ) (6,941 ) — (2,611 ) (177 ) (14,585 ) Divestiture of business (1,737 ) — — — — (1,737 ) Balance at December 26, 2015 $ 101,275 $ 81,159 $ 75,404 $ 59,719 $ 19,359 $ 336,916 Engineered Energy and Mining Segment Utility Coatings Irrigation Total Balance at December 28, 2013 $ 97,253 $ 96,759 $ 75,404 $ 77,796 $ 2,420 $ 349,632 Acquisition 15,416 16,803 — — 17,193 49,412 Foreign currency translation (4,801 ) (6,792 ) — (2,263 ) (77 ) (13,933 ) Balance at December 27, 2014 $ 107,868 $ 106,770 $ 75,404 $ 75,533 $ 19,536 $ 385,111 During the second quarter of 2015, the Company divested of a small business in its ESS segment. The goodwill allocated to that business was $1,737 and was required to be written off based on the selling price of the divested business. The Company’s annual impairment test of goodwill was performed during the third quarter of 2015, using the discounted cash flow method. In step one of the annual evaluation of the APAC Coatings reporting, we determined that the estimated fair value was lower than the carrying value. As a result, the Company recorded a preliminary $9,100 impairment of goodwill on the APAC Coatings reporting unit. The Company finalized step two of the impairment analysis during the fourth quarter of 2015 recording an additional impairment of $7,122 , which was the remaining goodwill on this reporting unit. The additional impairment resulted from the estimated fair values of the land of this reporting unit's owned facilities appraising higher than carrying value. The goodwill impairment was a result of difficulties in the Australian market over the last couple of years, including a general slowdown in manufacturing. (7) GOODWILL AND INTANGIBLE ASSETS (Continued) At the end of the third quarter, the Company determined that its goodwill for all other reporting units was not impaired, as the valuation of the reporting units exceeded their respective carrying values. In December 2015, the price of a barrel of oil began a steady decline to below $40 . The lower price of oil and natural gas required the Company to re-assess the financial projections used for the annual impairment of goodwill analysis performed for the Access Systems reporting unit. Specifically, research reports project that oil prices will not rebound above $50 a barrel for the near term. This required lowering the net sales and cash flow projections for this reporting unit. The result of this interim impairment test of goodwill was the carrying value of the reporting unit was higher than its estimated fair value. Accordingly, the Company recorded a $18,670 million impairment of Access System's goodwill in the fourth quarter of 2015. |
BANK CREDIT ARRANGEMENTS
BANK CREDIT ARRANGEMENTS | 12 Months Ended |
Dec. 26, 2015 | |
BANK CREDIT ARRANGEMENTS | |
BANK CREDIT ARRANGEMENTS | (8) BANK CREDIT ARRANGEMENTS The Company maintains various lines of credit for short-term borrowings totaling $103,484 at December 26, 2015 . As of December 26, 2015 and December 27, 2014, $199 and $13,058 was outstanding, respectively. The interest rates charged on these lines of credit vary in relation to the banks’ costs of funds. The unused and available borrowings under the lines of credit were $103,285 at December 26, 2015 . The lines of credit can be modified at any time at the option of the banks. The Company pays no fees in connection with these lines of credit. In addition to the lines of credit, the Company also maintains other short-term bank loans. The weighted average interest rate on short-term borrowings was 5.23% at December 26, 2015 , and 6.56% at December 27, 2014 . Other notes payable of $777 and $894 were outstanding at December 26, 2015 and December 27, 2014 , respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 26, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | (9) INCOME TAXES Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries are as follows: 2015 2014 2013 United States $ 99,175 $ 168,975 $ 338,163 Foreign (6,168 ) 115,208 111,254 $ 93,007 $ 284,183 $ 449,417 Income tax expense (benefit) consists of: 2015 2014 2013 Current: Federal $ 23,130 $ 52,588 $ 110,847 State 4,431 5,059 16,398 Foreign 15,077 32,443 39,285 42,638 90,090 166,530 Non-current: (69 ) (447 ) 1,392 Deferred: Federal 3,382 447 (8,661 ) State (333 ) 1,376 (307 ) Foreign 1,809 3,428 (1,173 ) 4,858 5,251 (10,141 ) $ 47,427 $ 94,894 $ 157,781 (9) INCOME TAXES (Continued) The reconciliations of the statutory federal income tax rate and the effective tax rate follows: 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 3.1 1.8 2.4 Carryforwards, credits and changes in valuation allowances (0.1 ) (0.4 ) (0.2 ) Foreign tax rate differences (5.7 ) (4.4 ) (2.4 ) Changes in unrecognized tax benefits (0.1 ) (0.2 ) 0.3 Domestic production activities deduction (3.8 ) (1.6 ) (2.1 ) Goodwill impairment 11.3 — — UK tax rate reduction 7.7 — 1.8 Other 3.6 3.2 0.3 51.0 % 33.4 % 35.1 % Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating loss and tax credit carryforwards. The tax effects of significant items comprising the Company’s net deferred income tax liabilities are as follows: 2015 2014 Deferred income tax assets: Accrued expenses and allowances $ 18,320 $ 17,446 Accrued insurance 1,408 882 Tax credits and loss carryforwards 130,743 148,484 Defined benefit pension liability 32,278 30,025 Inventory allowances 911 4,804 Accrued warranty 12,818 6,920 Deferred compensation 36,672 40,348 Gross deferred income tax assets 233,150 248,909 Valuation allowance (90,837 ) (104,487 ) Net deferred income tax assets 142,313 144,422 Deferred income tax liabilities: Work in progress 3,087 5,352 Property, plant and equipment 41,147 43,084 Intangible assets 54,162 60,316 Other liabilities 3,517 6,738 Total deferred income tax liabilities 101,913 115,490 Net deferred income tax asset/(liability) $ 40,400 $ 28,932 (9) INCOME TAXES (Continued) Deferred income tax assets (liabilities) are presented as follows on the Consolidated Balance Sheets: Balance Sheet Caption 2015 2014 Refundable and deferred income taxes $ — $ 30,239 Other assets 76,069 70,490 Deferred income taxes (35,669 ) (71,797 ) Net deferred income tax asset/(liability) $ 40,400 $ 28,932 In November 2015, the FASB issued ASU 2015-17 which provides guidance on simplifying the balance sheet classification of deferred taxes. Currently, GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts for balance sheet presentation. ASU 2015-17 simplifies the presentation by classifying all deferred tax liabilities and assets as noncurrent. Valmont adopted ASU 2015-17 as of December 26, 2015 on a prospective basis. The net amount of current deferred tax assets being classified as noncurrent at December 26, 2015 is $31,967 . Management of the Company has reviewed recent operating results and projected future operating results. The Company's belief that realization of its net deferred tax assets is more likely than not is based on, among other factors, changes in operations that have occurred in recent years and available tax planning strategies. At December 26, 2015 and December 27, 2014 respectively, there were $130,743 and $148,484 relating to tax credits and loss carryforwards and $32,278 and $30,025 related to the defined benefit pension obligation. Valuation allowances have been established for certain losses that reduce deferred tax assets to an amount that will, more likely than not, be realized. The deferred tax assets at December 26, 2015 that are associated with tax loss and tax credit carryforwards not reduced by valuation allowances expire in periods starting 2016. Uncertain tax positions included in other non-current liabilities are evaluated in a two-step process, whereby (1) the Company determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more likely than not recognition threshold, the Company would recognize the largest amount of tax benefit that is greater than fifty percent likely to be realized upon ultimate settlement with the related tax authority. The following summarizes the activity related to our unrecognized tax benefits in 2015 and 2014 , in thousands: 2015 2014 Gross unrecognized tax benefits—beginning of year $ 4,268 $ 4,727 Gross decreases—tax positions in prior period (173 ) (456 ) Gross increases—current‑period tax positions 687 610 Settlements with taxing authorities (361 ) — Lapse of statute of limitations (545 ) (613 ) Gross unrecognized tax benefits—end of year $ 3,876 $ 4,268 There are approximately $1,304 of uncertain tax positions for which reversal is reasonably possible during the next 12 months due to the closing of the statute of limitations. The nature of these uncertain tax positions is generally the computation of a tax deduction or tax credit. During 2015, the Company recorded a reduction of its gross unrecognized tax benefit of $545 with $511 recorded as a reduction of income tax expense, due to the expiration of statutes of limitation in the United States. During 2014, the company recorded a reduction of its gross unrecognized tax benefit of $613 , with $399 recorded as a reduction of its income tax expense, due to the expiration of statutes of limitation in the United States. In addition to these amounts, there was an aggregate of $280 and $298 of interest and penalties at December 26, 2015 and December 27, 2014 , respectively. The Company’s policy is to record interest and penalties directly related to income taxes as income tax expense in the Consolidated Statements of Earnings. (9) INCOME TAXES (Continued) The Company files income tax returns in the U.S. and various states as well as foreign jurisdictions. Tax years 2011 and forward remain open under U.S. statutes of limitation. Generally, tax years 2012 and forward remain open under state statutes of limitation. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $3,813 and $4,056 at December 26, 2015 and December 27, 2014 , respectively. All foreign subsidiaries are considered permanently invested at December 26, 2015 . Provision has not been made for United States income taxes on the undistributed earnings of the Company’s foreign subsidiaries (approximately $415,400 at December 26, 2015 and $432,700 at December 27, 2014 , respectively) because the Company intends to reinvest those earnings. Such earnings would become taxable upon the sale or liquidation of these foreign subsidiaries or upon remittance of dividends. Furthermore, the currency translation adjustments in “Accumulated other comprehensive income (loss)” are not adjusted for income taxes as they relate to indefinite investments in foreign subsidiaries. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 26, 2015 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | (10) LONG-TERM DEBT On September 22, 2014, the Company issued and sold $250,000 aggregate principal amount of the Company’s 5.00% senior notes due 2044 and $250,000 aggregate principal amount of the Company’s 5.25% senior notes due 2054. On September 22, 2014, the Company repurchased through a partial tender offer $199,800 in aggregate principal amount of the Company’s 6.625% senior notes due 2020, and $250,200 of the notes remain outstanding following the conclusion of the tender offer. Long-term debt is as follows: December 26, December 27, 5.00% senior unsecured notes due 2044(a) $ 250,000 $ 250,000 5.25% senior unsecured notes due 2054(b) 250,000 250,000 Unamortized discount on 5.00% and 5.25% senior unsecured notes (a)(b) (4,405 ) (4,449 ) 6.625% senior unsecured notes due 2020(c) 250,200 250,200 Unamortized premium on 6.625% senior unsecured notes(c) 4,518 5,429 Revolving credit agreement (d) — — IDR Bonds(e) 8,500 8,500 Other notes 6,228 8,155 Long-term debt 765,041 767,835 Less current installments of long-term debt 1,077 1,181 Long-term debt, excluding current installments $ 763,964 $ 766,654 ______________________________________________ (a) The 5.00% senior unsecured notes due 2044 include an aggregate principle amount of $250,000 on which interest is paid and an unamortized discount balance of $1,138 at December 26, 2015. The notes bear interest at 5.000% per annum and are due on October 1, 2044. The discount will be amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. (b) The 5.25% senior unsecured notes due 2054 include an aggregate principle amount of $250,000 on which interest is paid and an unamortized discount balance of $3,267 at December 26, 2015. The notes bear interest at 5.250% per annum and are due on October 1, 2054. The discount will be amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. (10) LONG-TERM DEBT (Continued) (c) The 6.625% senior unsecured notes due 2020, following a partial tender offer in September 2014, include a remaining aggregate principal amount of $250,200 on which interest is paid and an unamortized premium balance of $4,518 at December 26, 2015. The notes bear interest at 6.625% per annum and are due on April 1, 2020. In September 2014, the Company repurchased by partial tender $199,800 in aggregate principal amount of these notes and incurred cash prepayment expenses of approximately $41,200 . In addition, $4,439 of the unamortized premium was recognized as income which is the proportionate amount of debt that was repaid. The remaining premium will be amortized against interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. (d) On October 17, 2014, the Company entered into a First Amendment to our Credit Agreement with JPMorgan Chase Bank, as Administrative Agent, and the other lenders party thereto, dated as of August 15, 2012, which increased the committed unsecured revolving credit facility from $400 million to $600 million and extended the maturity date from August 15, 2017 to October 17, 2019. The Company may increase the credit facility by up to an additional $200 million at any time, subject to lenders increasing the amount of their commitments. The interest rate on our borrowings will be, at our option, either: (i) LIBOR (based on a 1, 2, 3 or 6 month interest period, as selected by the Company) plus 100 to 162.5 basis points, depending on the credit rating of the our senior debt published by Standard & Poor's Rating Services and Moody's Investors Service, Inc., or; (ii) the higher of • the prime lending rate , • the Federal Funds rate plus 50 basis points, and • LIBOR (based on a 1 month interest period) plus 100 basis points, plus, in each case, 0 to 62.5 basis points, depending on the credit rating of our senior debt published by Standard & Poor's Rating Services and Mood's Investors Service, Inc. At December 26, 2015, the Company had no outstanding borrowings under the revolving credit facility. The revolving credit facility has a maturity date of October 17, 2019 and contains certain financial covenants that may limit additional borrowing capability under the agreement. At December 26, 2015, the Company had the ability to borrow $581.7 million under this facility, after consideration of standby letters of credit of $18.3 million associated with certain insurance obligations. We also maintain certain short-term bank lines of credit totaling $103.5 million , $103.3 million of which was unused at December 26, 2015. (e) The Industrial Development Revenue Bonds were issued to finance the construction of a manufacturing facility in Jasper, Tennessee. Variable interest is payable until final maturity on June 1, 2025. The effective interest rates at December 26, 2015 and December 27, 2014 were 1.22% and 1.16% , respectively. The lending agreements include certain maintenance covenants, including financial leverage and interest coverage. The Company was in compliance with all financial debt covenants at December 26, 2015 . The minimum aggregate maturities of long-term debt for each of the five years following 2015 are: $1,102 , $893 , $894 , $752 and $250,958 . The obligations arising under the 5.00% senior unsecured notes due 2044, the 5.25% senior unsecured notes due 2054, the 6.625% senior unsecured notes due 2020, and the revolving credit facility are guaranteed by the Company and its wholly-owned subsidiaries PiRod, Inc., Valmont Coatings, Inc., Valmont Newmark, Inc., and Valmont Queensland Pty. Ltd. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 26, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | (11) STOCK-BASED COMPENSATION The Company maintains stock‑based compensation plans approved by the shareholders, which provide that the Compensation Committee of the Board of Directors may grant incentive stock options, nonqualified stock options, stock appreciation rights, non-vested stock awards and bonuses of common stock. At December 26, 2015 , 868,157 shares of common stock remained available for issuance under the plans. Shares and options issued and available are subject to changes in capitalization. The Company’s policy is to issue shares upon exercise of stock options from treasury shares held by the Company. Under the stock option plans, the exercise price of each option equals the market price at the time of the grant. Options vest beginning on the first anniversary of the grant in equal amounts over three to six years or on the fifth anniversary of the grant. Expiration of grants is from six to ten years from the date of grant. The Company recorded $5,137 , $4,461 and $5,194 of compensation expense (included in selling, general and administrative expenses) in the 2015 , 2014 and 2013 fiscal years, respectively. The associated tax benefits recorded in the 2015 , 2014 and 2013 fiscal years was $1,952 , $1,695 and $1,974 , respectively. At December 26, 2015 , the amount of unrecognized stock option compensation expense, to be recognized over a weighted average period of 2.42 years, was approximately $12,939 . The Company uses a binomial option pricing model to value its stock options. The fair value of each option grant made in 2015 , 2014 and 2013 was estimated using the following assumptions: 2015 2014 2013 Expected volatility 34.13 % 32.27 % 33.26 % Risk-free interest rate 1.58 % 1.43 % 1.16 % Expected life from vesting date 3.0 yrs 3.0 yrs 3.0 yrs Dividend yield 0.94 % 0.75 % 0.72 % Following is a summary of the activity of the stock plans during 2013 , 2014 and 2015 : Number of Weighted Weighted Aggregate Outstanding at December 29, 2012 868,992 $ 84.91 Granted 155,254 144.86 Exercised (216,105 ) (72.17 ) Forfeited (12,920 ) (129.08 ) Outstanding at December 28, 2013 795,221 $ 99.29 4.56 $ 39,994 Options vested or expected to vest at December 28, 2013 775,237 $ 98.41 4.51 39,678 Options exercisable at December 28, 2013 464,377 $ 81.73 3.58 31,508 The weighted average per share fair value of options granted during 2013 , was $ 37.88 . (11) STOCK-BASED COMPENSATION (Continued) Number of Weighted Weighted Aggregate Outstanding at December 28, 2013 795,221 $ 99.29 Granted 177,717 132.94 Exercised (194,627 ) (71.67 ) Forfeited (9,716 ) (126.23 ) Outstanding at December 27, 2014 768,595 $ 113.72 4.74 $ 15,983 Options vested or expected to vest at December 27, 2014 746,974 $ 113.06 4.69 15,981 Options exercisable at December 27, 2014 450,539 $ 97.29 3.59 15,944 The weighted average per share fair value of options granted during 2014 was $ 33.94 . Number of Weighted Weighted Aggregate Outstanding at December 27, 2014 768,595 $ 113.72 Granted 291,708 104.89 Exercised (169,493 ) 74.37 Forfeited (41,201 ) 137.02 Outstanding at December 26, 2015 849,609 $ 117.42 5.18 $ 4,536 Options vested or expected to vest at December 26, 2015 818,300 $ 117.61 5.13 4,456 Options exercisable at December 26, 2015 409,068 $ 119.43 3.74 3,376 The weighted average per share fair value of options granted during 2015 was $ 27.91 . Following is a summary of the status of stock options outstanding at December 26, 2015 : Outstanding and Exercisable By Price Range Options Outstanding Options Exercisable Exercise Price Number Weighted Weighted Number Weighted $60.97 - 85.32 136,288 2.08 years $ 83.78 136,103 $ 83.78 $104.47 - 110.33 297,221 6.78 years 104.68 12,181 109.50 $120.91 - 151.45 416,100 5.05 years 137.55 260,784 138.51 849,609 409,068 In accordance with shareholder-approved plans, the Company grants stock under various stock‑based compensation arrangements, including non-vested stock and stock issued in lieu of cash bonuses. Under such arrangements, stock is issued without direct cost to the employee. In addition, the Company grants restricted stock units. The restricted stock units are (11) STOCK-BASED COMPENSATION (Continued) settled in Company stock when the restriction period ends. During fiscal 2015 , 2014 and 2013 , the Company granted non-vested stock and restricted stock units to directors and certain management employees as follows (which are not included in the above stock plan activity tables): 2015 2014 2013 Shares issued 47,038 35,885 47,271 Weighted‑average per share price on grant date $ 108.97 $ 136.91 $ 146.72 Compensation expense $ 4,511 $ 3,978 $ 3,667 At December 26, 2015 the amount of deferred stock‑based compensation granted, to be recognized over a weighted‑average period of 1.74 years, was approximately $7,772 . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 26, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table provides a reconciliation between Basic and Diluted earnings per share (EPS): Basic EPS Dilutive Diluted EPS 2015: Net earnings attributable to Valmont Industries, Inc. $ 40,117 $ — $ 40,117 Weighted average shares outstanding (000's) 23,288 117 23,405 Per share amount $ 1.72 $ 0.01 $ 1.71 2014: Net earnings attributable to Valmont Industries, Inc. $ 183,976 $ — $ 183,976 Weighted average shares outstanding (000's) 25,719 213 25,932 Per share amount $ 7.15 $ 0.06 $ 7.09 2013: Net earnings attributable to Valmont Industries, Inc. $ 278,489 $ — $ 278,489 Weighted average shares outstanding (000's) 26,641 258 26,899 Per share amount $ 10.45 $ 0.10 $ 10.35 Basic and diluted net earnings and earnings per share in fiscal 2015 included impairments of goodwill and intangible assets of $40,140 after-tax ( $1.72 per share), asset impairments arising from restructuring activities of $14,545 after-tax ( $0.62 per share), and $13,622 of cash restructuring expenses ( $0.58 per share). Fiscal 2014 included costs associated with refinancing of our long-term debt of $24.2 million after tax ( $0.93 per share). Fiscal 2013 included a non-cash after-tax loss of $12,011 ( $0.45 per share) associated with the deconsolidation of Delta EMD Pty. Ltd. (EMD) and a non-cash after-tax loss of $4,569 ( $0.17 per share) related to a fixed asset impairment loss recorded by EMD in the fourth quarter of 2013. Earnings per share are computed independently for each of the quarters. Therefore, the sum of the quarterly earnings per share may not equal the total for the year primarily due to the share buyback program that began in the second quarter of 2014. At the end of fiscal years 2015 , 2014 , and 2013 there were approximately 426,338 , 449,000 , and 1,200 outstanding stock options, respectively, with exercise prices exceeding the market price of common stock that were excluded from the computation of diluted earnings per share, respectively. |
EMPLOYEE RETIREMENT SAVINGS PLA
EMPLOYEE RETIREMENT SAVINGS PLAN | 12 Months Ended |
Dec. 26, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE RETIREMENT SAVINGS PLAN | 13) EMPLOYEE RETIREMENT SAVINGS PLAN Established under Internal Revenue Code Section 401(k), the Valmont Employee Retirement Savings Plan (“VERSP”) is a defined contribution plan available to all eligible employees. Participants can elect to contribute up to 50% of annual pay, on a pretax and/or after-tax basis. The Company also makes contributions to the Plan and a non-qualified deferred compensation plan for certain Company executives. The 2015 , 2014 and 2013 Company contributions to these plans amounted to approximately $11,700 , $12,600 and $11,600 respectively. The Company sponsors a fully‑funded, non-qualified deferred compensation plan for certain Company executives who otherwise would be limited in receiving company contributions into VERSP under Internal Revenue Service regulations. The invested assets and related liabilities of these participants were approximately $37,963 and $36,439 at December 26, 2015 and December 27, 2014 , respectively. Such amounts are included in “Other assets” and “Other noncurrent liabilities” on the Consolidated Balance Sheets. Amounts distributed from the Company’s non-qualified deferred compensation plan to participants under the transition rules of section 409A of the Internal Revenue Code were approximately $2,439 and $1,519 at December 26, 2015 and December 27, 2014 , respectively. All distributions were made in cash. |
DISCLOSURES ABOUT THE FAIR VALU
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 26, 2015 | |
Fair Value Disclosures [Abstract] | |
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | (14) DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amount of cash and cash equivalents, receivables, accounts payable, notes payable to banks and accrued expenses approximate fair value because of the short maturity of these instruments. The fair values of each of the Company’s long-term debt instruments are based on the amount of future cash flows associated with each instrument discounted using the Company’s current borrowing rate for similar debt instruments of comparable maturity (Level 2). The fair value estimates are made at a specific point in time and the underlying assumptions are subject to change based on market conditions. At December 26, 2015 the carrying amount of the Company’s long-term debt was $765,041 with an estimated fair value of approximately $724,020 . At December 27, 2014 the carrying amount of the Company’s long-term debt was $767,835 with an estimated fair value of approximately $813,333 . For financial reporting purposes, a three‑level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date is used. Inputs refers broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: • Level 1: Quoted market prices in active markets for identical assets or liabilities. • Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. • Level 3: Unobservable inputs that are not corroborated by market data. The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value. Trading Securities: The assets and liabilities recorded for the investments held in the Valmont Deferred Compensation Plan of $37,963 ( $36,439 in 2014 ) represent mutual funds, invested in debt and equity securities, classified as trading securities, considering the employee’s ability to change investment allocation of their deferred compensation at any time. The Company's remaining ownership in Delta EMD Pty. Ltd. (JSE:DTA) of $4,734 ( $9,034 in 2014 ) is recorded at fair value at December 26, 2015 . Quoted market prices are available for these securities in an active market and therefore categorized as a Level 1 input. (14) DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued) Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 42,697 $ 42,697 $ — $ — Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 45,473 $ 45,473 $ — $ — |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 26, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company manages risk from foreign currency rate risk related to foreign currency denominated transactions and from natural gas supply pricing. From time to time, the Company manages these risks using derivative financial instruments. Some of these derivative financial instruments are marked to market and recorded in the Company’s consolidated statements of earnings, while others may be accounted for as a fair value or cash flow hedge. Derivative financial instruments have credit risk and market risk. To manage credit risk, the Company only enters into derivative transactions with counterparties who are recognized, stable multinational banks. Natural Gas Prices: Natural gas supplies to meet production requirements of production facilities are purchased at market prices. Natural gas market prices are volatile and the Company effectively fixes prices for a portion of its natural gas usage requirements of certain of its U.S. facilities through the use of swaps. These contracts reference physical natural gas prices or appropriate NYMEX futures contract prices. While there is a strong correlation between the NYMEX futures contract prices and the Company’s delivered cost of natural gas, the use of financial derivatives may not exactly offset the change in the price of physical gas. The contracts are traded in months forward and settlement dates are scheduled to coincide with gas purchases during that future period. The financial effects of these derivatives in 2015 and 2014 were minimal. Interest Rate Fluctuations: In prior years, the Company executed contracts to lock in the treasury rate related to the issuance of each of their unsecured notes due in 2020, 2044, and 2054. These contracts were executed to hedge the risk of potential fluctuations in the treasury rates which would change the amount of net proceeds received from the debt offering. As the benchmark rate component of the fixed rate debt issuance and the cash flow hedged risk is based on that same benchmark, each was deemed an effective hedge at inception. The settlement with each of the counterparties was recorded in accumulated other comprehensive income and at December 26, 2015, the Company has a $4.5 million deferred loss and a $4.4 million deferred gain remaining in accumulated other comprehensive loss related to the past settlement of these forward contracts. The amount is amortized as a reduction of interest expense (for the deferred gain) or an increase in interest expense (for the deferred loss) over the term of the debt. Foreign Currency Fluctuations: The Company operates in a number of different foreign countries and may enter into business transactions that are in currencies that are different from a given operation’s functional currency. In certain cases, the Company may enter into foreign currency exchange contracts to manage a portion of the foreign exchange risk associated with either a receivable or payable denominated in a foreign currency, a forecasted transaction or a series of forecasted transactions denominated in a foreign currency. (15) DERIVATIVE FINANCIAL INSTRUMENTS (Continued) At December 26, 2015 , the Company had a number of open foreign currency forward contracts, which are generally accounted for as cash flow hedges if hedge accounting is utilized. The Company has one open forward contract related to interest payments on a large intercompany note denominated in Australian dollars. The interest from these notes are used to fund the delta pension plan in the United Kingdom with a functional currency of the British pound. The derivative is accounted for as a cash flow hedge and has a notional amount to sell Australian dollars of $36,590 , which was settled in January 2016. Total gains on the forward contract related to the intercompany note interest payments in fiscal 2015 was $1,821 . There is no gain or loss recorded in accumulated other comprehensive income in the consolidated balance sheets related to foreign currency forward contracts at December 26, 2015. At December 27, 2014 , the Company had open foreign currency forward contracts, including one related to a large sales contract that was settled in Canadian dollars and was accounted for as a cash flow hedge. The notional amount of the open Canadian forward contracts at the end of 2014 was $14,757 with unrealized gains of $424 , and $242 was recorded in accumulated other comprehensive income in the consolidated balance sheets. The forward contracts were settled by September 2015. |
GUARANTEES
GUARANTEES | 12 Months Ended |
Dec. 26, 2015 | |
Guarantees [Abstract] | |
GUARANTEES | GUARANTEES The Company’s product warranty accrual reflects management’s best estimate of probable liability under its product warranties. Historical product claims data is used to estimate the cost of product warranties at the time revenue is recognized. The Company recorded a $17.0 million reserve in the fourth quarter of 2015 for a commercial settlement with a large customer that requires ongoing quality monitoring. Changes in the product warranty accrual, which is recorded in “Accrued expenses”, for the years ended December 26, 2015 and December 27, 2014 , were as follows: 2015 2014 Balance, beginning of period $ 19,760 $ 20,711 Payments made (11,203 ) (13,900 ) Change in liability for warranties issued during the period 28,608 13,130 Change in liability for pre-existing warranties (512 ) (181 ) Balance, end of period $ 36,653 $ 19,760 |
DEFINED BENEFIT RETIREMENT PLAN
DEFINED BENEFIT RETIREMENT PLAN | 12 Months Ended |
Dec. 26, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
DEFINED BENEFIT RETIREMENT PLAN | (17) DEFINED BENEFIT RETIREMENT PLAN Delta Ltd., a wholly-owned subsidiary of the Company, is the sponsor of the Delta Pension Plan ("Plan"). The Plan provides defined benefit retirement income to eligible employees in the United Kingdom. Pension retirement benefits to qualified employees are 1.67% of final salary per year of service upon reaching the age of 65 years. This Plan has no active employees as members at December 26, 2015 . Funded Status The Company recognizes the overfunded or underfunded status of the pension plan as an asset or liability. The funded status represents the difference between the projected benefit obligation (PBO) and the fair value of the plan assets. The PBO is the present value of benefits earned to date by plan participants, including the effect of assumed future salary increases (if applicable) and inflation. Plan assets are measured at fair value. Effective with year-end 2015, the Company early adopted the practical expedient accounting guidance that permits an entity to measure defined benefit plan assets and obligations using the month-end closest to the entity's fiscal year-end consistently going forward. The pension plan obligation recorded on the balance sheet as of December 26, 2015 has been measured based on the pension plan assets and obligation as of December 31, 2015. Because the pension plan is denominated in British pounds sterling, the Company used exchange (17) DEFINED BENEFIT RETIREMENT PLAN (Continued) rates of $ 1.5557 /£ and $1.4919 /£ to translate the net pension liability into U.S. dollars at December 27, 2014 and December 26, 2015 , respectively. Projected Benefit Obligation and Fair Value of Plan Assets —The accumulated benefit obligation (ABO) is the present value of benefits earned to date, assuming no future compensation growth. As there are no active employees in the plan, the ABO is equal to the PBO. The underfunded ABO represents the difference between the PBO and the fair value of plan assets. Changes in the PBO and fair value of plan assets for the pension plan for the period from December 28, 2013 to December 27, 2014 were as follows: Projected Plan Funded Fair Value at December 28, 2013 $ 651,857 $ 497,460 $ (154,397 ) Employer contributions — 18,173 Interest cost 28,667 — Actual return on plan assets — 72,820 Benefits paid (14,498 ) (14,498 ) Actuarial loss 66,889 — Currency translation (40,632 ) (31,796 ) Fair Value at December 27, 2014 $ 692,283 $ 542,159 $ (150,124 ) Changes in the PBO and fair value of plan assets for the pension plan for the period from December 27, 2014 to December 31, 2015 were as follows: Projected Plan Funded Fair Value at December 27, 2014 $ 692,283 $ 542,159 $ (150,124 ) Employer contributions — 16,500 Interest cost 24,614 — Actual return on plan assets — (306 ) Benefits paid (18,346 ) (18,346 ) Actuarial loss 28,130 — Currency translation (29,232 ) (21,881 ) Fair Value at December 31, 2015 $ 697,449 $ 518,126 $ (179,323 ) Pre-tax amounts recognized in accumulated other comprehensive income (loss) as of December 26, 2015 and December 27, 2014 consisted of actuarial gains (losses): Balance December 29, 2013 $ (38,808 ) Actuarial loss (18,980 ) Currency translation loss 1,835 Balance December 27, 2014 (55,953 ) Actuarial loss (53,661 ) Currency translation gain 2,655 Balance December 26, 2015 $ (106,959 ) (17) DEFINED BENEFIT RETIREMENT PLAN (Continued) The estimated amount to be amortized from accumulated other comprehensive income into net periodic benefit cost in 2016 is $1,500 . Assumptions —The weighted-average actuarial assumptions used to determine the benefit obligation at December 31, 2015 and December 27, 2014 were as follows: Percentages 2015 2014 Discount rate 3.75 % 3.65 % Salary increase N/A N/A CPI inflation 2.15 % 2.10 % RPI inflation 3.25 % 3.20 % Expense Pension expense is determined based upon the annual service cost of benefits (the actuarial cost of benefits earned during a period) and the interest cost on those liabilities, less the expected return on plan assets. The expected long-term rate of return on plan assets is applied to the fair value of plan assets. Differences in actual experience in relation to assumptions are not recognized in net earnings immediately, but are deferred and, if necessary, amortized as pension expense. The components of the net periodic pension expense for the fiscal years ended December 26, 2015 and December 27, 2014 were as follows: 2015 2014 Net Periodic Benefit Cost: Interest cost 24,614 28,667 Expected return on plan assets (25,224 ) (26,029 ) Net periodic benefit expense (benefit) $ (610 ) $ 2,638 Assumptions —The weighted-average actuarial assumptions used to determine expense are as follows for fiscal 2015 and 2014: Percentages 2015 2014 Discount rate 3.65 % 4.45 % Expected return on plan assets 5.00 % 5.50 % CPI Inflation 2.10 % 2.70 % RPI Inflation 3.20 % 3.60 % The discount rate is based on the yields of AA-rated corporate bonds with durational periods similar to that of the pension liabilities. The expected return on plan assets is based on our asset allocation mix and our historical return, taking into account current and expected market conditions. Inflation is based on expected changes in the consumer price index or the retail price index in the U.K. depending on the relevant plan provisions. (17) DEFINED BENEFIT RETIREMENT PLAN (Continued) Cash Contributions The Company completed negotiations with Plan trustees in 2013 regarding annual funding for the Plan. The annual contributions into the Plan are $14,919 (/£ 10,000 ) per annum as part of the Plan’s recovery plan, along with a contribution to cover the administrative costs of the Plan of approximately $1,641 (/£ 1,100 ) per annum. Benefit Payments The following table details expected pension benefit payments for the years 2016 through 2025: 2016 $ 18,500 2017 19,100 2018 19,700 2019 20,300 2020 20,900 Years 2021 - 2025 114,725 Asset Allocation Strategy The investment strategy for pension plan assets is to maintain a diversified portfolio consisting of • Long-term fixed‑income securities that are investment grade or government‑backed in nature; • Common stock mutual funds in U.K. and non-U.K. companies, and; • Diversified growth funds, which are invested in a number of investments, including common stock, fixed income funds, properties and commodities. The plan, as required by U.K. law, has an independent trustee that sets investment policy. The general strategy is to invest approximately 50% of the assets of the plan in common stock mutual funds and diversified growth funds, with the remainder of the investments in long-term fixed income securities, including corporate bonds and index-linked U.K. gilts. The trustees regularly consult with representatives of the plan sponsor and independent advisors on such matters. The pension plan investments are held in a trust. The weighted‑average maturity of the corporate bond portfolio was 13 years at December 31, 2015. Fair Value Measurements The pension plan assets are valued at fair value. The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Index-linked gilts —Index-linked gilts are U.K. government-backed securities consisting of bills, notes, bonds, and other fixed income securities issued directly by the U.K. Treasury or by government-sponsored enterprises. Corporate Bonds —Corporate bonds and debentures consist of fixed income securities issued by U.K. corporations. Corporate Stock —This investment category consists of common and preferred stock, including mutual funds, issued by U.K. and non-U.K. corporations. (17) DEFINED BENEFIT RETIREMENT PLAN (Continued) Diversified growth funds - This investment category consists of diversified investment funds, whose holdings include common stock, fixed income funds, properties and commodities of U.K. and non-U.K. securities. These assets are pooled investment funds whereby the underlying investments can be valued using quoted market prices. As the fair values of the pooled investment funds themselves are not publicly quoted, they are classified as Level 2 investments. At December 31, 2015 and December 27, 2014 , the pension plan assets measured at fair value on a recurring basis were as follows: December 31, 2015 Quoted Prices in Significant Other Significant Total Plan net assets: Temporary cash investments $ — $ 5,181 $ — $ 5,181 Index-linked gilts — 123,257 — 123,257 Corporate bonds — 100,701 — 100,701 Corporate stock — 172,456 — 172,456 Diversified growth funds — 116,531 — 116,531 Total plan net assets at fair value $ — $ 518,126 $ — $ 518,126 December 27, 2014 Quoted Prices in Significant Other Significant Total Plan net assets: Temporary cash investments $ — $ 12,320 $ — $ 12,320 Index-linked gilts — 135,229 — 135,229 Corporate bonds — 107,880 — 107,880 Corporate stock — 176,010 — 176,010 Diversified growth funds — 110,720 — 110,720 Total plan net assets at fair value $ — $ 542,159 $ — $ 542,159 |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 26, 2015 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS In the fourth quarter of 2015, the Company changed its reportable segment structure to improve transparency. The Company now has five reportable segments and its management structure was changed to align with this new reporting structure. A new reportable segment, Energy & Mining, includes the businesses primarily serving the energy and mining end markets. This segment includes the access systems applications businesses and offshore structures business that was formerly part of the Engineered Infrastructure Products (EIP) segment, and the grinding media business that was formerly included in the "Other" category. The remaining businesses from the EIP segment was also renamed "Engineered Support Structures". The last change in the reporting structure was moving the tubing business from the "Other" category to the Irrigation segment. Prior year information in this footnote has been updated to match the new reportable segment structure. Each segment is global in nature with a manager responsible for segment operational performance and the allocation of capital within the segment. Net corporate expense is net of certain service‑related expenses that are allocated to business units generally on the basis of employee headcounts and sales dollars. Reportable segments are as follows: ENGINEERED SUPPORT STRUCTURES: This segment consists of the manufacture of engineered metal structures and components for the global lighting and traffic, wireless communication, and roadway safety industries; ENERGY AND MINING: This segment, all outside of the United States, consists of the manufacture of access systems applications, forged steel grinding media, on and off shore oil, gas, and wind energy structures; UTILITY SUPPORT STRUCTURES: This segment consists of the manufacture of engineered steel and concrete structures for the global utility industry; COATINGS: This segment consists of galvanizing, anodizing and powder coating services on a global basis; and IRRIGATION: This segment consists of the manufacture of agricultural irrigation equipment and related parts and services for the global agricultural industry and tubular products for industrial customers. In addition to these five reportable segments, the Company has other businesses and activities that individually are not more than 10% of consolidated sales. This includes the distribution of industrial fasteners and are reported in the "Other" category. The accounting policies of the reportable segments are the same as those described in Note 1. The Company evaluates the performance of its business segments based upon operating income and invested capital. The Company does not allocate interest expense, non-operating income and deductions, or income taxes to its business segments. (18) BUSINESS SEGMENTS (Continued) Summary by Business 2015 2014 2013 SALES: Engineered Support Structures segment: Lighting, Traffic, and Roadway Products $ 600,280 $ 648,352 $ 660,423 Communication Products 171,173 161,618 139,888 Engineered Support Structures segment 771,453 809,970 800,311 Energy and Mining segment: Offshore and Other Complex Steel Structures 103,068 146,432 — Grinding Media 96,442 116,056 138,634 Access Systems 138,349 181,495 201,498 Energy and Mining segment 337,859 443,983 340,132 Utility Support Structures segment: Steel 578,996 714,427 853,459 Concrete 95,581 110,589 108,579 Utility Support Structures segment 674,577 825,016 962,038 Coatings segment 302,385 333,853 357,635 Irrigation segment 612,201 846,326 970,890 Other 7,247 10,108 51,645 Total 2,705,722 3,269,256 3,482,651 INTERSEGMENT SALES: Engineered Support Structures 23,003 74,963 103,974 Energy and Mining 4,652 295 332 Utility Support Structures 1,239 2,451 2,343 Coatings 46,912 55,418 56,649 Irrigation 6,430 6,609 6,523 Other 4,562 6,377 8,619 Total 86,798 146,113 178,440 NET SALES: Engineered Support Structures segment 748,450 735,007 696,337 Energy and Mining segment 333,207 443,688 339,800 Utility Support Structures segment 673,338 822,565 959,695 Coatings segment 255,473 278,435 300,986 Irrigation segment 605,771 839,717 964,367 Other 2,685 3,731 43,026 Total $ 2,618,924 $ 3,123,143 $ 3,304,211 (18) BUSINESS SEGMENTS (Continued) 2015 2014 2013 OPERATING INCOME (LOSS): Engineered Support Structures $ 59,592 $ 66,024 $ 65,861 Energy and Mining (18,762 ) 41,342 35,087 Utility Support Structures 37,847 95,118 174,740 Coatings 27,369 60,921 74,917 Irrigation 84,537 151,508 206,394 Other (9,802 ) (1,535 ) (7,213 ) Corporate (49,086 ) (55,662 ) (76,717 ) Total 131,695 357,716 473,069 Interest expense, net (41,325 ) (30,744 ) (26,025 ) Costs associated with refinancing of debt — (38,705 ) — Other 2,637 (4,084 ) 2,373 Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries $ 93,007 $ 284,183 $ 449,417 TOTAL ASSETS: Engineered Support Structures $ 611,201 $ 640,132 $ 616,231 Energy and Mining 396,366 500,407 353,018 Utility Support Structures 422,021 470,720 524,113 Coatings 270,793 301,707 315,663 Irrigation 310,967 360,883 351,742 Other 2,267 4,930 2,538 Corporate 385,813 450,889 613,189 Total $ 2,399,428 $ 2,729,668 $ 2,776,494 CAPITAL EXPENDITURES: Engineered Support Structures $ 11,445 $ 11,849 $ 12,905 Energy and Mining 3,544 4,893 4,515 Utility Support Structures 11,815 9,014 39,347 Coatings 6,836 14,029 12,206 Irrigation 7,756 21,113 26,039 Other 1,396 1,181 105 Corporate 2,676 10,944 11,636 Total $ 45,468 $ 73,023 $ 106,753 (18) BUSINESS SEGMENTS (Continued) 2015 2014 2013 DEPRECIATION AND AMORTIZATION: Engineered Support Structures $ 22,810 $ 22,363 $ 22,037 Energy and Mining 20,733 22,146 13,167 Utility Support Structures 17,959 17,811 14,375 Coatings 12,962 14,615 14,656 Irrigation 11,746 10,471 7,859 Other 570 123 2,336 Corporate 4,364 1,799 3,006 Total $ 91,144 $ 89,328 $ 77,436 Summary by Geographical Area by Location of Valmont Facilities: 2015 2014 2013 NET SALES: United States $ 1,586,702 $ 1,808,427 $ 2,077,812 Australia 347,975 439,530 492,698 Denmark 98,628 146,432 — Other 585,619 728,754 733,701 Total $ 2,618,924 $ 3,123,143 $ 3,304,211 LONG-LIVED ASSETS: United States $ 582,783 $ 616,718 $ 530,042 Australia 259,326 316,382 342,320 Denmark 90,463 111,161 — Other 240,004 292,466 306,293 Total $ 1,172,576 $ 1,336,727 $ 1,178,655 No single customer accounted for more than 10% of net sales in 2015 , 2014 , or 2013 . Net sales by geographical area are based on the location of the facility producing the sales and do not include sales to other operating units of the company. While Australia accounted for approximately 13% of the Company's net sales in 2015 , no other foreign country accounted for more than 5% of the Company’s net sales. Operating income by business segment are based on net sales less identifiable operating expenses and allocations and includes profits recorded on sales to other operating units of the company. Long-lived assets consist of property, plant and equipment, net of depreciation, goodwill, other intangible assets and other assets. Long-lived assets by geographical area are based on location of facilities. |
COMMITMENTS & CONTINGENCIES
COMMITMENTS & CONTINGENCIES | 12 Months Ended |
Dec. 26, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS & CONTINGENCIES | (19) COMMITMENTS & CONTINGENCIES Various claims and lawsuits are pending against Company and certain of its subsidiaries. The Company cannot fully determine the effect of all asserted and unasserted claims on its consolidated results of operations, financial condition, or liquidity. Where asserted and unasserted claims are considered probable and reasonably estimable, a liability has been recorded. We do not expect that any known lawsuits, claims, environmental costs, commitments, or contingent liabilities will have a material adverse effect on our consolidated results of operations, financial condition, or liquidity. |
GUARANTOR_NON-GUARANTOR FINANCI
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | 12 Months Ended |
Dec. 26, 2015 | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION The Company has three tranches of senior unsecured notes. All of the senior notes are guaranteed, jointly, severally, fully and unconditionally (subject to certain customary release provisions, including sale of the subsidiary guarantor, or sale of all or substantially all of its assets) by certain of the Company’s current and future direct and indirect domestic and foreign subsidiaries (collectively the “Guarantors”), excluding its other current domestic and foreign subsidiaries which do not guarantee the debt (collectively referred to as the “Non-Guarantors”). All Guarantors are 100% owned by the parent company. Consolidated financial information for the Company ("Parent"), the Guarantor subsidiaries and the Non-Guarantor subsidiaries is as follows: CONSOLIDATED STATEMENTS OF EARNINGS For the Year ended December 26, 2015 Parent Guarantors Non- Eliminations Total Net sales $ 1,169,674 $ 423,928 $ 1,238,609 $ (213,287 ) $ 2,618,924 Cost of sales 890,242 332,847 987,729 (212,927 ) 1,997,891 Gross profit 279,432 91,081 250,880 (360 ) 621,033 Selling, general and administrative expenses 194,335 45,549 207,484 — 447,368 Impairment of goodwill and intangible assets — — 41,970 — 41,970 Operating income 85,097 45,532 1,426 (360 ) 131,695 Other income (expense): Interest expense (43,552 ) — (1,069 ) — (44,621 ) Interest income 9 103 3,184 — 3,296 Other (2,374 ) 60 4,951 — 2,637 (45,917 ) 163 7,066 — (38,688 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 39,180 45,695 8,492 (360 ) 93,007 Income tax expense (benefit): Current 863 23,261 18,446 (1 ) 42,569 Deferred 10,042 (6,224 ) 1,040 — 4,858 10,905 17,037 19,486 (1 ) 47,427 Earnings before equity in earnings of nonconsolidated subsidiaries 28,275 28,658 (10,994 ) (359 ) 45,580 Equity in earnings of nonconsolidated subsidiaries 11,842 (39,418 ) (247 ) 27,576 (247 ) Net earnings 40,117 (10,760 ) (11,241 ) 27,217 45,333 Less: Earnings attributable to noncontrolling interests — — (5,216 ) — (5,216 ) Net earnings attributable to Valmont Industries, Inc $ 40,117 $ (10,760 ) $ (16,457 ) $ 27,217 $ 40,117 (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED STATEMENTS OF EARNINGS For the Year ended December 27, 2014 Parent Guarantors Non- Eliminations Total Net sales $ 1,392,509 $ 496,326 $ 1,456,053 $ (221,745 ) $ 3,123,143 Cost of sales 1,040,808 371,639 1,124,813 (222,234 ) 2,315,026 Gross profit 351,701 124,687 331,240 489 808,117 Selling, general and administrative expenses 196,987 49,171 204,243 — 450,401 Operating income 154,714 75,516 126,997 489 357,716 Other income (expense): Interest expense (34,267 ) (5 ) (2,518 ) — (36,790 ) Interest income 38 359 5,649 — 6,046 Costs associated with refinancing of debt (38,705 ) — — — (38,705 ) Other 2,021 (511 ) (5,594 ) — (4,084 ) (70,913 ) (157 ) (2,463 ) — (73,533 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 83,801 75,359 124,534 489 284,183 Income tax expense (benefit): Current 30,330 25,277 33,898 138 89,643 Deferred (1,474 ) 1,866 4,859 — 5,251 28,856 27,143 38,757 138 94,894 Earnings before equity in earnings of nonconsolidated subsidiaries 54,945 48,216 85,777 351 189,289 Equity in earnings of nonconsolidated subsidiaries 129,031 19,509 63 (148,574 ) 29 Net earnings 183,976 67,725 85,840 (148,223 ) 189,318 Less: Earnings attributable to noncontrolling interests — — (5,342 ) — (5,342 ) Net earnings attributable to Valmont Industries, Inc $ 183,976 $ 67,725 $ 80,498 $ (148,223 ) $ 183,976 (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED STATEMENTS OF EARNINGS For the Year ended December 28, 2013 Parent Guarantors Non- Eliminations Total Net sales $ 1,540,266 $ 689,230 $ 1,402,191 $ (327,476 ) $ 3,304,211 Cost of sales 1,107,020 503,431 1,078,695 (330,163 ) 2,358,983 Gross profit 433,246 185,799 323,496 2,687 945,228 Selling, general and administrative expenses 209,350 59,368 203,441 — 472,159 Operating income 223,896 126,431 120,055 2,687 473,069 Other income (expense): Interest expense (30,801 ) (2 ) (1,699 ) — (32,502 ) Interest income 55 1,032 5,390 — 6,477 Other 4,791 9 (2,427 ) — 2,373 (25,955 ) 1,039 1,264 — (23,652 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 197,941 127,470 121,319 2,687 449,417 Income tax expense (benefit): Current 78,912 45,951 42,379 680 167,922 Deferred (8,948 ) (19 ) (1,174 ) — (10,141 ) 69,964 45,932 41,205 680 157,781 Earnings before equity in earnings of nonconsolidated subsidiaries 127,977 81,538 80,114 2,007 291,636 Equity in earnings of nonconsolidated subsidiaries 150,512 16,417 494 (166,588 ) 835 Loss from deconsolidation of subsidiary — — (12,011 ) — (12,011 ) Net earnings 278,489 97,955 68,597 (164,581 ) 280,460 Less: Earnings attributable to noncontrolling interests — — (1,971 ) — (1,971 ) Net earnings attributable to Valmont Industries, Inc $ 278,489 $ 97,955 $ 66,626 $ (164,581 ) $ 278,489 (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Year ended December 26, 2015 Parent Guarantors Non- Eliminations Total Net earnings $ 40,117 $ (10,760 ) $ (11,241 ) $ 27,217 $ 45,333 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gains (losses) — (15,166 ) (81,528 ) — (96,694 ) — (15,166 ) (81,528 ) — (96,694 ) Gain (loss) on cash flow hedge: Amortization cost included in interest expense 74 — — — 74 Realized (gain) loss included in net earnings (3,130 ) — — — (3,130 ) Unrealized gain on cash flow hedges 2,855 — — — 2,855 (201 ) — — — (201 ) Actuarial gain (loss) in defined benefit pension plan liability — — (40,274 ) — (40,274 ) Equity in other comprehensive income (132,584 ) — — 132,584 — Other comprehensive income (loss) (132,785 ) (15,166 ) (121,802 ) 132,584 (137,169 ) Comprehensive income (loss) (92,668 ) (25,926 ) (133,043 ) 159,801 (91,836 ) Comprehensive income attributable to noncontrolling interests — — (832 ) — (832 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ (92,668 ) $ (25,926 ) $ (133,875 ) $ 159,801 $ (92,668 ) (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Year ended December 27, 2014 Parent Guarantors Non- Eliminations Total Net earnings $ 183,976 $ 67,725 $ 85,840 $ (148,223 ) $ 189,318 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gains (losses) — (51,536 ) (30,739 ) — (82,275 ) — (51,536 ) (30,739 ) — (82,275 ) Gain (loss) on cash flow hedge: Amortization cost included in interest expense 594 — — — 594 Realized (gain) loss included in net earnings 983 — — — 983 Unrealized gain on cash flow hedges 4,837 — — — 4,837 6,414 — — — 6,414 Actuarial gain (loss) in defined benefit pension plan liability — — (13,709 ) — (13,709 ) Equity in other comprehensive income (93,162 ) — — 93,162 — Other comprehensive income (loss) (86,748 ) (51,536 ) (44,448 ) 93,162 (89,570 ) Comprehensive income 97,228 16,189 41,392 (55,061 ) 99,748 Comprehensive income attributable to noncontrolling interests — — (2,520 ) — (2,520 ) Comprehensive income attributable to Valmont Industries, Inc. $ 97,228 $ 16,189 $ 38,872 $ (55,061 ) $ 97,228 (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Year ended December 28, 2013 Parent Guarantors Non- Eliminations Total Net earnings $ 278,489 $ 97,955 $ 68,597 $ (164,581 ) $ 280,460 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gains (losses) — (4,772 ) (66,926 ) — (71,698 ) Realized loss on sale of investment in foreign entity included in other expense — — 5,194 — 5,194 Realized loss on deconsolidation of subsidiary — — 8,559 — 8,559 — (4,772 ) (53,173 ) — (57,945 ) Gain (loss) on cash flow hedge: Amortization cost included in interest expense 400 — — — 400 400 — — — 400 Actuarial gain (loss) in defined benefit pension plan liability — — (41,282 ) — (41,282 ) Equity in other comprehensive income (106,430 ) — — 106,430 — Other comprehensive income (loss) (106,030 ) (4,772 ) (94,455 ) 106,430 (98,827 ) Comprehensive income 172,459 93,183 (25,858 ) (58,151 ) 181,633 Comprehensive income attributable to noncontrolling interests — — (9,174 ) — (9,174 ) Comprehensive income attributable to Valmont Industries, Inc. $ 172,459 $ 93,183 $ (35,032 ) $ (58,151 ) $ 172,459 (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED BALANCE SHEETS December 26, 2015 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 62,281 $ 4,008 $ 282,785 $ — $ 349,074 Receivables, net 130,741 66,387 269,315 — 466,443 Inventories 132,222 38,379 173,064 (2,993 ) 340,672 Prepaid expenses 9,900 766 35,471 — 46,137 Refundable and deferred income taxes 24,526 — — — 24,526 Total current assets 359,670 109,540 760,635 (2,993 ) 1,226,852 Property, plant and equipment, at cost 541,536 132,864 406,656 — 1,081,056 Less accumulated depreciation and amortization 334,471 69,956 144,140 — 548,567 Net property, plant and equipment 207,065 62,908 262,516 — 532,489 Goodwill 20,108 110,562 206,246 — 336,916 Other intangible assets 238 40,959 129,000 — 170,197 Investment in subsidiaries and intercompany accounts 1,239,228 813,779 939,177 (2,992,184 ) — Other assets 47,113 — 85,861 — 132,974 Total assets $ 1,873,422 $ 1,137,748 $ 2,383,435 $ (2,995,177 ) $ 2,399,428 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ 215 $ — $ 862 $ — $ 1,077 Notes payable to banks — — 976 — 976 Accounts payable 66,723 13,680 99,580 — 179,983 Accrued employee compensation and benefits 32,272 6,347 31,735 — 70,354 Accrued expenses 31,073 22,802 51,718 — 105,593 Dividends payable 8,571 — — — 8,571 Total current liabilities 138,854 42,829 184,871 — 366,554 Deferred income taxes 9,686 — 25,983 — 35,669 Long-term debt, excluding current installments 758,811 — 5,153 — 763,964 Defined benefit pension liability — — 179,323 — 179,323 Deferred compensation 43,485 — 4,932 — 48,417 Other noncurrent liabilities 4,145 — 36,145 — 40,290 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,683 (1,106,633 ) 27,900 Additional paid-in capital — 159,414 1,107,536 (1,266,950 ) — Retained earnings 1,729,679 541,917 354,727 (896,644 ) 1,729,679 Accumulated other comprehensive income (loss) (267,218 ) (64,362 ) (210,688 ) 275,050 (267,218 ) Treasury stock (571,920 ) — — — (571,920 ) Total Valmont Industries, Inc. shareholders’ equity 918,441 1,094,919 1,900,258 (2,995,177 ) 918,441 Noncontrolling interest in consolidated subsidiaries — — 46,770 — 46,770 Total shareholders’ equity 918,441 1,094,919 1,947,028 (2,995,177 ) 965,211 Total liabilities and shareholders’ equity $ 1,873,422 $ 1,137,748 $ 2,383,435 $ (2,995,177 ) $ 2,399,428 (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED BALANCE SHEETS December 27, 2014 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 69,869 $ 2,157 $ 299,553 $ — $ 371,579 Receivables, net 158,316 68,414 310,188 — 536,918 Inventories 127,859 54,914 177,512 (763 ) 359,522 Prepaid expenses 7,087 502 49,323 — 56,912 Refundable and deferred income taxes 53,307 6,194 8,509 — 68,010 Total current assets 416,438 132,181 845,085 (763 ) 1,392,941 Property, plant and equipment, at cost 556,658 124,182 458,729 — 1,139,569 Less accumulated depreciation and amortization 319,899 65,493 147,724 — 533,116 Net property, plant and equipment 236,759 58,689 311,005 — 606,453 Goodwill 20,108 107,542 257,461 — 385,111 Other intangible assets 292 43,644 158,068 — 202,004 Investment in subsidiaries and intercompany accounts 1,446,989 825,236 887,055 (3,159,280 ) — Other assets 46,587 — 96,572 — 143,159 Total assets $ 2,167,173 $ 1,167,292 $ 2,555,246 $ (3,160,043 ) $ 2,729,668 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ 213 $ — $ 968 $ — $ 1,181 Notes payable to banks — — 13,952 — 13,952 Accounts payable 59,893 15,151 121,521 — 196,565 Accrued employee compensation and benefits 48,169 5,385 34,396 — 87,950 Accrued expenses 32,616 6,052 49,812 — 88,480 Dividends payable 9,086 — — — 9,086 Total current liabilities 149,977 26,588 220,649 — 397,214 Deferred income taxes 5,584 28,988 37,225 — 71,797 Long-term debt, excluding current installments 759,895 — 6,759 — 766,654 Defined benefit pension liability — — 150,124 — 150,124 Deferred compensation 41,803 — 6,129 — 47,932 Other noncurrent liabilities 8,081 — 37,461 — 45,542 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,682 (1,106,632 ) 27,900 Additional paid-in capital — 150,286 1,098,408 (1,248,694 ) — Retained earnings 1,718,662 552,676 397,302 (949,978 ) 1,718,662 Accumulated other comprehensive income (134,433 ) (49,196 ) (96,065 ) 145,261 (134,433 ) Treasury stock (410,296 ) — — — (410,296 ) Total Valmont Industries, Inc. shareholders’ equity 1,201,833 1,111,716 2,048,327 (3,160,043 ) 1,201,833 Noncontrolling interest in consolidated subsidiaries — — 48,572 — 48,572 Total shareholders’ equity 1,201,833 1,111,716 2,096,899 (3,160,043 ) 1,250,405 Total liabilities and shareholders’ equity $ 2,167,173 $ 1,167,292 $ 2,555,246 $ (3,160,043 ) $ 2,729,668 (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year ended December 26, 2015 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 40,117 $ (10,760 ) $ (11,241 ) $ 27,217 $ 45,333 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 29,433 12,611 49,100 — 91,144 Noncash loss on trading securities — — 4,555 — 4,555 Impairment of property, plant and equipment 7,486 542 11,808 — 19,836 Impairment of goodwill & intangibles assets — — 41,970 — 41,970 Stock-based compensation 7,244 — — — 7,244 Defined benefit pension plan expense (benefit) — — (610 ) — (610 ) Contribution to defined benefit pension plan — — (16,500 ) — (16,500 ) (Gain) loss on sale of property, plant and equipment 983 319 1,025 — 2,327 Equity in earnings in nonconsolidated subsidiaries (11,842 ) 39,418 247 (27,576 ) 247 Deferred income taxes 10,042 (6,224 ) 1,040 — 4,858 Changes in assets and liabilities (net of acquisitions): Receivables 27,576 3,547 19,144 — 50,267 Inventories (4,364 ) 18,130 (12,698 ) 2,228 3,296 Prepaid expenses 2,337 (172 ) 8,679 — 10,844 Accounts payable 6,831 (1,970 ) (11,666 ) — (6,805 ) Accrued expenses (16,485 ) 17,713 7,366 324 8,918 Other noncurrent liabilities 177 — (1,941 ) — (1,764 ) Income taxes payable (refundable) 7,895 (306 ) (482 ) — 7,107 Net cash flows from operating activities 107,430 72,848 89,796 2,193 272,267 Cash flows from investing activities: Purchase of property, plant and equipment (14,362 ) (7,718 ) (23,388 ) — (45,468 ) Proceeds from sale of assets 3,996 302 (1,049 ) — 3,249 Acquisitions, net of cash acquired — (12,778 ) — — (12,778 ) Other, net 72,866 (50,447 ) (13,400 ) (2,193 ) 6,826 Net cash flows from investing activities 62,500 (70,641 ) (37,837 ) (2,193 ) (48,171 ) Cash flows from financing activities: Net borrowings under short-term agreements — — (12,853 ) — (12,853 ) Proceeds from long-term borrowings 68,000 — — — 68,000 Principal payments on long-term borrowings (68,213 ) — (885 ) — (69,098 ) Dividends paid (35,357 ) — — — (35,357 ) Intercompany dividends 26,115 — (26,115 ) — — Dividends to noncontrolling interest — — (2,634 ) — (2,634 ) Proceeds from exercises under stock plans 13,075 — — — 13,075 Excess tax benefits from stock option exercises 1,699 — — — 1,699 Purchase of treasury shares (168,983 ) — — — (168,983 ) Purchase of common treasury shares - stock plan exercises (13,854 ) — — — (13,854 ) Net cash flows from financing activities (177,518 ) — (42,487 ) — (220,005 ) Effect of exchange rate changes on cash and cash equivalents — (356 ) (26,240 ) — (26,596 ) Net change in cash and cash equivalents (7,588 ) 1,851 (16,768 ) — (22,505 ) Cash and cash equivalents—beginning of year 69,869 2,157 299,553 — 371,579 Cash and cash equivalents—end of period $ 62,281 $ 4,008 $ 282,785 $ — $ 349,074 (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year ended December 27, 2014 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 183,976 $ 67,725 $ 85,840 $ (148,223 ) $ 189,318 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 24,509 12,926 51,893 — 89,328 Loss on investment — — 3,795 — 3,795 Non-cash debt refinancing costs (2,478 ) — — — (2,478 ) Stock-based compensation 6,730 — — — 6,730 Defined benefit pension plan expense — — 2,638 — 2,638 Contribution to defined benefit pension plan — — (18,173 ) — (18,173 ) Change in fair value of contingent consideration — — (4,300 ) — (4,300 ) (Gain) loss on sale of property, plant and equipment 145 143 104 — 392 Equity in earnings in nonconsolidated subsidiaries (129,031 ) (19,509 ) (63 ) 148,574 (29 ) Deferred income taxes (1,474 ) 1,866 4,859 — 5,251 Changes in assets and liabilities (net of the effect from acquisitions): Receivables (19,136 ) 40,186 (20,143 ) — 907 Inventories 5,094 15,317 1,047 — 21,458 Prepaid expenses (2,352 ) 429 (11,671 ) — (13,594 ) Accounts payable (2,260 ) (5,212 ) (26,849 ) — (34,321 ) Accrued expenses (21,448 ) (9,590 ) (3,740 ) — (34,778 ) Other noncurrent liabilities 622 — 1,133 — 1,755 Income taxes payable (24,945 ) (19,417 ) 4,559 — (39,803 ) Net cash flows from operating activities 17,952 84,864 70,929 351 174,096 Cash flows from investing activities: Purchase of property, plant and equipment (41,260 ) (2,823 ) (28,940 ) — (73,023 ) Acquisitions, net of cash acquired — — (185,710 ) — (185,710 ) Proceeds from sale of assets 43 126 2,320 — 2,489 Other, net 34,735 (73,799 ) 38,796 (351 ) (619 ) Net cash flows from investing activities (6,482 ) (76,496 ) (173,534 ) (351 ) (256,863 ) Cash flows from financing activities: Net borrowings under short-term agreements — — (4,472 ) — (4,472 ) Proceeds from long-term borrowings 652,540 — (329 ) — 652,211 Principal payments on long-term obligations (356,994 ) — (864 ) — (357,858 ) Settlement of financial derivative 4,981 — — — 4,981 Dividends paid (32,443 ) — — — (32,443 ) Intercompany dividends 116,995 (36,600 ) (80,395 ) — — Intercompany interest on long-term note — 648 (648 ) — — Intercompany capital contribution (143,000 ) — 143,000 — — Dividends to noncontrolling interest — — (2,919 ) — (2,919 ) Debt issuance fees (7,644 ) — — — (7,644 ) Proceeds from exercises under stock plans 14,572 — — — 14,572 Excess tax benefits from stock option exercises 4,264 — — — 4,264 Purchase of treasury shares (395,045 ) — — — (395,045 ) Purchase of common treasury shares - stock plan exercises (15,403 ) — — — (15,403 ) Net cash flows from financing activities (157,177 ) (35,952 ) 53,373 — (139,756 ) Effect of exchange rate changes on cash and cash equivalents — (56 ) (19,548 ) — (19,604 ) Net change in cash and cash equivalents (145,707 ) (27,640 ) (68,780 ) — (242,127 ) Cash and cash equivalents—beginning of year 215,576 29,797 368,333 — 613,706 Cash and cash equivalents—end of year $ 69,869 $ 2,157 $ 299,553 $ — $ 371,579 (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year ended December 28, 2013 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 278,489 $ 97,955 $ 68,597 $ (164,581 ) $ 280,460 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 21,270 12,862 43,304 — 77,436 Deconsolidation of subsidiary — — 12,011 — 12,011 Impairment of property, plant and equipment — — 12,161 — 12,161 Stock-based compensation 6,513 — — — 6,513 Defined benefit pension plan expense — — 6,569 — 6,569 Contribution to defined benefit pension plan — — (17,619 ) — (17,619 ) (Gain) loss on sale of property, plant and equipment 885 42 (5,245 ) — (4,318 ) Equity in earnings in nonconsolidated subsidiaries (150,512 ) (16,417 ) (494 ) 166,588 (835 ) Deferred income taxes (8,948 ) (19 ) (1,174 ) — (10,141 ) Changes in assets and liabilities (net of the effect from acquisitions): Receivables 6,181 (22,259 ) 3,370 — (12,708 ) Inventories 12,966 1,757 (1,292 ) — 13,431 Prepaid expenses 2,417 98 1,600 — 4,115 Accounts payable (10,458 ) (1,643 ) 24,549 — 12,448 Accrued expenses 19,191 5,824 (3,317 ) — 21,698 Other noncurrent liabilities 3,201 — (4,675 ) — (1,474 ) Income taxes payable (5,908 ) (3,251 ) 5,029 825 (3,305 ) Net cash flows from operating activities 175,287 74,949 143,374 2,832 396,442 Cash flows from investing activities: Purchase of property, plant and equipment (76,582 ) (4,439 ) (25,732 ) — (106,753 ) Acquisitions, net of cash acquired — — (63,152 ) — (63,152 ) Proceeds from sale of assets 794 35 36,753 — 37,582 Other, net 86,258 (83,327 ) 503 (2,832 ) 602 Net cash flows from investing activities 10,470 (87,731 ) (51,628 ) (2,832 ) (131,721 ) Cash flows from financing activities: Net borrowings under short-term agreements — — 5,510 — 5,510 Proceeds from long-term borrowings — — 274 — 274 Principal payments on long-term obligations (187 ) — (404 ) — (591 ) Cash decrease due to deconsolidation of subsidiary — — (11,615 ) — (11,615 ) Dividends paid (25,414 ) — — — (25,414 ) Intercompany dividends 8,947 20,133 (29,080 ) — — Intercompany interest on long-term note — 1,229 (1,229 ) — — Intercompany principal payment on long-term note — 22,430 (22,430 ) — — Dividends to noncontrolling interest — — (1,767 ) — (1,767 ) Purchase of noncontrolling interest — — (9,324 ) — (9,324 ) Proceeds from exercises under stock plans 16,348 — — — 16,348 Excess tax benefits from stock option exercises 5,306 — — — 5,306 Purchase of common treasury shares - stock plan exercises (16,107 ) — — — (16,107 ) Net cash flows from financing activities (11,107 ) 43,792 (70,065 ) — (37,380 ) Effect of exchange rate changes on cash and cash equivalents — (7,927 ) (19,837 ) — (27,764 ) Net change in cash and cash equivalents 174,650 23,083 1,844 — 199,577 Cash and cash equivalents—beginning of year 40,926 6,714 366,489 — 414,129 Cash and cash equivalents—end of year $ 215,576 $ 29,797 $ 368,333 $ — $ 613,706 |
QUARTERLY FINANCIAL DATA (Unaud
QUARTERLY FINANCIAL DATA (Unaudited) | 12 Months Ended |
Dec. 26, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (Unaudited) | 21) QUARTERLY FINANCIAL DATA (Unaudited) Net Earnings Gross Per Share Stock Price Dividends Net Sales Profit Amount Basic Diluted High Low Declared 2015 First $ 670,398 $ 165,454 $ 30,739 $ 1.29 $ 1.28 $ 130.26 $ 117.56 $ 0.375 Second (1) 682,123 169,548 27,873 1.19 1.19 128.26 118.09 0.375 Third (2) 632,575 156,751 12,066 0.52 0.52 121.23 97.44 0.375 Fourth (3) 633,828 129,280 (30,561 ) (1.34 ) (1.34 ) 117.94 93.99 0.375 Year $ 2,618,924 $ 621,033 $ 40,117 $ 1.72 $ 1.71 $ 130.26 $ 93.99 $ 1.500 2014 First $ 751,740 $ 206,982 $ 55,980 $ 2.10 $ 2.08 $ 155.64 $ 141.74 $ 0.250 Second 842,599 220,477 63,976 2.40 2.38 163.23 143.02 0.375 Third (4) 765,668 199,500 23,559 0.93 0.92 155.62 131.68 0.375 Fourth 763,136 181,158 40,461 1.67 1.66 139.31 123.44 0.375 Year $ 3,123,143 $ 808,117 $ 183,976 $ 7.15 $ 7.09 $ 163.23 $ 123.44 $ 1.375 Earnings per share are computed independently for each of the quarters. Therefore, the sum of the quarterly earnings per share may not equal the total for the year. _______________________________ (1) The second quarter of 2015 included costs associated with the restructuring plan (the "Plan") that was approved by the Board of Directors in April 2015 of $9.8 million after tax ( $0.42 per share). (2) The third quarter of 2015 included costs associated with the Plan of $6.3 million after tax ( $0.27 per share) and non- cash impairments of goodwill and trade names of $13.4 million after tax ( $0.58 per share). (3) The fourth quarter of 2015 included costs associated with the Plan of $11.5 million after tax ( $0.50 per share) and non-cash impairments of goodwill and intangibles of $ 7.1 million and $19.6 million after tax (combined $1.16 per share) related to our APAC Coatings and Access Systems businesses, respectively. In addition, the Company recorded a one time increase in its warranty reserve related to one large utility project of $11.5 million after tax ( $0.50 per share) and an increase to the bad debt allowance for a large international irrigation receivable of $4.8 million after tax ( $0.21 per share). Lastly, U.K. corporate tax rates were collectively reduced from 20% to 18% which reduced the value of our deferred tax assets associated with net operating loss carryforwards and certain timing differences which increased the Company's tax expense by $7.1 million ( $0.31 per share). (4) The third quarter of 2014 included costs associated with refinancing of our long-term debt of $24.2 million after tax ( $0.95 per share) and a non-cash fair market value adjustment for Delta EMD shares of $1.4 million after tax ( $.05 per share). |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 26, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | RIES Valuation and Qualifying Accounts (Dollars in thousands) Balance at Charged to Deductions Balance at Fifty-two weeks ended December 26, 2015 Reserve deducted in balance sheet from the asset to which it applies— Allowance for doubtful receivables $ 9,922 12,420 (1,334 ) $ 21,008 Allowance for deferred income tax asset valuation 104,487 (13,650 ) — 90,837 Fifty-two weeks ended December 27, 2014 Reserve deducted in balance sheet from the asset to which it applies— Allowance for doubtful receivables $ 10,369 1,780 (2,227 ) $ 9,922 Allowance for deferred income tax asset valuation 107,767 (3,280 ) — 104,487 Fifty-two weeks ended December 28, 2013 Reserve deducted in balance sheet from the asset to which it applies— Allowance for doubtful receivables $ 7,898 4,674 (2,203 ) $ 10,369 Allowance for deferred income tax asset valuation 120,979 (13,212 ) — 107,767 ______________________________________________ * The deductions from reserves are net of recoveries. |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 26, 2015 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification ("ASC") 605, Revenue Recognition. The new revenue recognition standard requires entities to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 is effective for interim and annual reporting periods beginning after December 15, 2017 and is to be applied retrospectively. Early application is not permitted. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated results of operations and financial position. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory.” Under this ASU, inventory will be measured at the “lower of cost and net realizable value” and options that currently exist for “market value” will be eliminated. The ASU defines net realizable value as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” No other changes were made to the current guidance on inventory measurement. ASU 2015-11 is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. Management is evaluating the provisions of this statement, including which period to adopt, and has not determined what impact the adoption of ASU 2015-11 will have on the Company's financial position or results of operations. In April 2015, the FASB issued ASU 2015-04, "Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets." Under this ASU, an entity with a fiscal year-end that differs from a calendar month-end can apply a practical expedient that permits an entity to measure defined benefit plan assets and obligations using the month-end closest to the entity's fiscal year-end consistently going forward. The Company early adopted this accounting policy effective with year-end 2015. The pension plan obligation recorded on the balance sheet as of December 26, 2015 has been measured based on the pension plan assets and obligation as of December 31, 2015. In April 2015, the FASB issued ASU 2015-03 which provides guidance requiring debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability and further clarification guidance allows the cost of securing a revolving line of credit to be recorded as a deferred asset regardless of whether a balance is outstanding. This guidance is effective for the Company's first quarter of fiscal year 2016 with early adoption permitted, and requires the use of the retrospective transition method. At December 26, 2015, the Company has approximately $7 million of debt issuance cost for its long-term debt (excluding its revolving line of credit) which will be reclassified as a direct reduction of long-term debt instead of an other asset in the consolidated balance sheets when this ASU is adopted in fiscal 2016. In November 2015, the FASB issued ASU 2015-17 which provides guidance on simplifying the balance sheet classification of deferred taxes. The guidance requires the classification of deferred tax assets and liabilities as noncurrent in a classified balance sheet. The current requirement that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not affected by this update. The guidance is effective for the Company's first quarter of fiscal year 2017 financial statements with early adoption permitted, and allows for the use of either a prospective or retrospective transition method. The Company early adopted this guidance on a prospective basis starting with its December 26, 2015 consolidated financial statements. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Valmont Industries, Inc. and its wholly and majority‑owned subsidiaries (the Company). The investment in Delta EMD Pty. Ltd ("EMD") is recorded at fair value subsequent to its deconsolidation in 2013. Investments in other 20% to 50% owned affiliates and joint ventures are accounted for by the equity method. Investments in less than 20% owned affiliates are accounted for by the cost method. All intercompany items have been eliminated. |
Cash overdrafts | Cash overdrafts Cash book overdrafts totaling $15,536 and $18,038 were classified as accounts payable at December 26, 2015 and December 27, 2014 , respectively. The Company’s policy is to report the change in book overdrafts as an operating activity in the Consolidated Statements of Cash Flows. |
Segments | Segments The Company has five reportable segments based on its management structure. Each segment is global in nature with a manager responsible for segment operational performance and allocation of capital within the segment. Reportable segments are as follows: ENGINEERED SUPPORT STRUCTURES: This segment consists of the manufacture of engineered metal structures and components for the global lighting and traffic, wireless communication, and roadway safety; UTILITY SUPPORT STRUCTURES: This segment consists of the manufacture of engineered steel and concrete structures for the global utility industry; ENERGY AND MINING: This segment consists of the manufacture of access systems applications, forged steel grinding media, and offshore oil and gas and wind energy structures. COATINGS: This segment consists of galvanizing, anodizing and powder coating services on a global basis; and IRRIGATION: This segment consists of the manufacture of agricultural irrigation equipment and related parts and services for the global agricultural industry as well as tubular products for industrial customers. In addition to these five reportable segments, there are other businesses and activities that individually are not more than 10% of consolidated sales. These operations include the distribution of industrial fasteners. These operations collectively are reported in the “Other” category. |
Fiscal Year | Fiscal Year The Company operates on a 52 or 53 week fiscal year with each year ending on the last Saturday in December. Accordingly, the Company’s fiscal years ended December 26, 2015 , December 27, 2014 , and December 28, 2013 consisted of 52 weeks. |
Accounts Receivable | Accounts Receivable Accounts receivable are reported on the balance sheet net of any allowance for doubtful accounts. Allowances are maintained in amounts considered to be appropriate in relation to the outstanding receivables based on age of the receivable, economic conditions and customer credit quality. As the Company’s international Irrigation business has grown, the exposure to potential losses in international markets has also increased. These exposures can be difficult to estimate, particularly in areas of political instability, or with governments with which the Company has limited experience, or where there is a lack of transparency as to the current credit condition of governmental units. As of December 26, 2015 , the Company had approximately $10 million in delinquent accounts receivable with Chinese municipal entities with a specific allowance recorded against it based on our estimation of what will not be fully collected. The Company’s allowance for doubtful accounts related to both current and long-term accounts receivables increased to $21.0 million at December 26, 2015 from $9.9 million at December 27, 2014. |
Inventories | Inventories Approximately 39% and 44% of inventory is valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market as of December 26, 2015 and December 27, 2014 , respectively. All other inventory is valued at the lower of cost, determined on the first-in, first-out (FIFO) method or market. Finished goods and manufactured goods inventories include the costs of acquired raw materials and related factory labor and overhead charges required to convert raw materials to manufactured and finished goods. The excess of replacement cost of inventories over the LIFO value is approximately $35,075 and $47,178 at December 26, 2015 and December 27, 2014 , respectively. |
Long-Lived Assets | Long-Lived Assets Property, plant and equipment are recorded at historical cost. The Company generally uses the straight-line method in computing depreciation and amortization for financial reporting purposes and accelerated methods for income tax purposes. The annual provisions for depreciation and amortization have been computed principally in accordance with the following ranges of asset lives: buildings and improvements 15 to 40 years, machinery and equipment 3 to 12 years, transportation equipment 3 to 24 years, office furniture and equipment 3 to 7 years and intangible assets 5 to 20 years. Depreciation expense in fiscal 2015 , 2014 and 2013 was $72,805 , $73,395 and $62,291 , respectively. An impairment loss is recognized if the carrying amount of an asset may not be recoverable and exceeds estimated future undiscounted cash flows of the asset. A recognized impairment loss reduces the carrying amount of the asset to its estimated fair value. The Company recognized a $4.1 million impairment of the Melbourne galvanizing site's equipment in 2015 as the Company determined that our galvanizing operation in Melbourne, Australia would not generate sufficient cash flows on an undiscounted cash flow basis to recover its carrying value. Other impairment losses were recorded in 2015 as facilities were closed and future plans for certain fixed assets changed in connection with the Company's restructuring plans. In November 2013, it was determined that the carrying amount of certain fixed assets of Delta EMD, Ltd. were not recoverable and an impairment loss of $12,161 was recorded to reduce the carrying amount of the fixed assets to fair value. The impairment was a result of continued global oversupply of manganese dioxide in the market, increased price competition and increasing input costs. In addition, a major customer advised us that its purchases from EMD in 2014 would be substantially below prior years. This charge was recorded in Product Cost of Sales in the Consolidated Statements of Earnings. No impairment losses were recorded in 2014. The Company evaluates its reporting units for impairment of goodwill during the third fiscal quarter of each year, or when events or changes in circumstances indicate the carrying value may not be recoverable. Reporting units are evaluated using after-tax operating cash flows (less capital expenditures) discounted to present value. Indefinite‑lived intangible assets are assessed separately from goodwill as part of the annual impairment testing, using a relief-from-royalty method. If the underlying assumptions related to the valuation of a reporting unit’s goodwill or an indefinite‑lived intangible asset change materially before or after the annual impairment testing, the reporting unit or asset is evaluated for potential impairment. In (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) these evaluations, management considers recent operating performance, expected future performance, industry conditions and other indicators of potential impairment. The Company performed an interim test of its Access Systems reporting unit and the Webforge and Locker trade names as of year-end (after the 2015 annual impairment test) based on changes in expected future performance. Please see footnote 7 for details of impairments recognized during 2015. |
Income Taxes | Income Taxes The Company uses the asset and liability method to calculate deferred income taxes. Deferred tax assets and liabilities are recognized on temporary differences between financial statement and tax bases of assets and liabilities using enacted tax rates. The effect of tax rate changes on deferred tax assets and liabilities is recognized in income during the period that includes the enactment date. |
Warranties | Warranties The Company's provision for product warranty reflects management's best estimate of probable liability under its product warranties. Estimated future warranty costs are recorded at the time a sale is recognized. Future warranty liability is determined based on applying historical claim rate experience to units sold that are still within the warranty period. In addition, the Company records provisions for known warranty claims. |
Pension Benefits | Pension Benefits Certain expenses are incurred in connection with a defined benefit pension plan. In order to measure expense and the related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as current facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits. |
Derivative Instrument | Derivative Instrument The Company may enter into derivative financial instruments to manage risk associated with fluctuation in interest rates, foreign currency rates or commodities. Where applicable, the Company may elect to account for such derivatives as either a cash flow or fair value hedge. |
Comprehensive Income | Comprehensive Income (Loss) Comprehensive income includes net income, currency translation adjustments, certain derivative-related activity and changes in net actuarial gains/losses from a pension plan. Results of operations for foreign subsidiaries are translated using the average exchange rates during the period. Assets and liabilities are translated at the exchange rates in effect on the balance sheet dates. The components of accumulated other comprehensive income (loss) consisted of the following: Foreign Currency Translation Adjustments Unrealized Gain on Cash Flow Hedge Defined Benefit Pension Plan Accumulated Other Comprehensive Income (Loss) Balance at December 27, 2014 $ (99,618 ) $ 3,879 $ (38,694 ) $ (134,433 ) Current-period comprehensive income (loss) (92,310 ) (201 ) (40,274 ) (132,785 ) Balance at December 26, 2015 $ (191,928 ) $ 3,678 $ (78,968 ) $ (267,218 ) |
Revenue Recognition | Revenue Recognition Revenue is recognized upon shipment of the product or delivery of the service to the customer, which coincides with passage of title and risk of loss to the customer. Customer acceptance provisions exist only in the design stage of our products. Acceptance of the design by the customer is required before the product is manufactured and delivered to the customer. We are not entitled to any compensation solely based on design of the product and we do not recognize any revenue associated with the design stage. No general rights of return exist for customers once the product has been delivered. Shipping and handling costs associated with sales are recorded as cost of goods sold. Sales discounts and rebates are estimated based on past experience and are recorded as a reduction of net sales in the period in which the sale is recognized. Service revenues predominantly consist of coatings services provided by our Coatings segment to its customers. Revenue from our offshore and other complex steel structures products is recognized using the percentage-of-completion method, based primarily on contract cost incurred to date compared to total estimated contract cost. |
Use of Estimates | Use of Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the reported amounts of revenue and expenses and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. |
Equity Method Investments | Equity Method Investments The Company has equity method investments in non-consolidated subsidiaries which are recorded within "Other assets" on the Consolidated Balance Sheet. In February 2013, the Company sold its nonconsolidated investment in Manganese Materials Company Pty. Ltd. to the majority owner of the business for approximately $29,250 . The profit on the sale was not significant, which included the recognition of $5,194 in currency translation adjustments previously recorded as part of "Accumulated other comprehensive income" on the Consolidated Balance Sheet. The Company also recognized certain deferred tax benefits of approximately $3,200 associated with the sale in the first quarter of 2013. |
Treasury Stock | Treasury Stock Repurchased shares are recorded as “Treasury Stock” and result in a reduction of “Shareholders’ Equity.” When treasury shares are reissued, the Company uses the last-in, first-out method, and the difference between the repurchase cost and re-issuance price is charged or credited to “Additional Paid-In Capital.” In May 2014, the Company announced a capital allocation philosophy which covered a share repurchase program. Specifically, the Board of Directors authorized the purchase of up to $500 million of the Company's outstanding common stock from time to time over twelve months at prevailing market prices, through open market or privately-negotiated transactions. In February 2015, the Board of Directors authorized an additional purchase of up to $250 million of the Company's outstanding common stock with no stated expiration date. As of December 26, 2015, we have acquired 4,146,637 shares for approximately $564.0 million under this share repurchase program. |
Research and Development | Research and Development Research and development costs are charged to operations in the year incurred. These costs are a component of “Selling, general and administrative expenses” on the Consolidated Statements of Earnings. Research and development expenses were approximately $11,600 in 2015 , $13,900 in 2014 , and $10,200 in 2013 . |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Accounting Policies [Abstract] | |
Components of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive income (loss) consisted of the following: Foreign Currency Translation Adjustments Unrealized Gain on Cash Flow Hedge Defined Benefit Pension Plan Accumulated Other Comprehensive Income (Loss) Balance at December 27, 2014 $ (99,618 ) $ 3,879 $ (38,694 ) $ (134,433 ) Current-period comprehensive income (loss) (92,310 ) (201 ) (40,274 ) (132,785 ) Balance at December 26, 2015 $ (191,928 ) $ 3,678 $ (78,968 ) $ (267,218 ) |
ACQUISITIONS AND DECONSOLIDAT34
ACQUISITIONS AND DECONSOLIDATION (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Pro forma results of operations | he pro-forma effect of these acquisitions on the 2014 Statement of Earnings was as follows: Year ended December 27, 2014 Net sales $ 3,201,947 Net earnings $ 189,391 Earnings per share—diluted $ 7.30 |
Valmont SM | |
Summary of fair values of the assets acquired and liabilities assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed as of the date of acquisition, which was finalized in the fourth quarter of 2014. At March 3, 2014 Current assets $ 73,421 Property, plant and equipment 85,638 Intangible assets 30,340 Goodwill 16,803 Total fair value of assets acquired $ 206,202 Current liabilities 47,754 Deferred income taxes 19,715 Intercompany note payable 37,448 Long-term debt 8,941 Total fair value of liabilities assumed 113,858 Non-controlling interests 9,309 Net assets acquired $ 83,035 |
Summary of the major classes of acquired intangible assets and the respective weighted-average amortization periods | The following table summarizes the major classes of Valmont SM's acquired intangible assets and the respective weighted average amortization periods: Amount Weighted Average Amortization Period (Years) Trade Names $ 11,470 Indefinite Backlog 3,145 1.5 Customer Relationships 15,725 12.0 Total Intangible Assets $ 30,340 |
Shakespeare | |
Summary of fair values of the assets acquired and liabilities assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed as of the date of the Shakespeare acquisition (goodwill is deductible for tax purposes): At October 6, 2014 Current assets $ 12,532 Property, plant and equipment 10,694 Intangible assets 13,500 Goodwill 15,416 Total fair value of assets acquired $ 52,142 Current liabilities 3,870 Net assets acquired $ 48,272 |
Summary of the major classes of acquired intangible assets and the respective weighted-average amortization periods | The following table summarizes the major classes of Shakespeare acquired intangible assets and the respective weighted-average amortization periods: Amount Weighted Average Amortization Period (Years) Trade Names $ 4,000 Indefinite Customer Relationships 9,500 12.0 Total Intangible Assets $ 13,500 |
RESTRUCTURING ACTIVITIES (Table
RESTRUCTURING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of liabilities recorded for the restructuring plan and changes | Liabilities recorded for the Plan in 2015 and changes therein were as follows: Balance at December 27, 2014 Recognized Restructuring Expense Costs Paid or Otherwise Settled Balance at December 26, 2015 Severance $ — $ 13,923 $ 12,616 $ 1,307 Other cash restructuring expenses — 6,093 4,667 1,426 Total $ — $ 20,016 $ 17,283 $ 2,733 |
Broad Restructuring Plan | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of restructuring activities | he following pre-tax expenses were recognized in 2015: ESS Energy & Mining Utility Coatings Irrigation Other/ Corporate TOTAL Severance $ 2,305 $ 2,112 $ 1,555 $ 508 $ 724 $ — $ 7,204 Other cash restructuring expenses 1,467 882 1,853 175 — — 4,377 Asset impairments/net loss on disposals 333 3,361 1,142 5,291 — — 10,127 Total cost of sales 4,105 6,355 4,550 5,974 724 — 21,708 Severance 2,951 714 404 270 423 1,957 6,719 Other cash restructuring expenses — — 238 336 — 1,142 1,716 Asset impairments/net loss on disposals 2,223 — — — 130 7,356 9,709 Total selling, general and administrative expenses 5,174 714 642 606 553 10,455 18,144 Consolidated total $ 9,279 $ 7,069 $ 5,192 $ 6,580 $ 1,277 $ 10,455 $ 39,852 |
CASH FLOW SUPPLEMENTARY INFOR36
CASH FLOW SUPPLEMENTARY INFORMATION (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash payments for interest and income taxes (net of refunds) | Cash payments for interest and income taxes (net of refunds) for the fifty-two weeks ended December 26, 2015 , December 27, 2014 , and December 28, 2013 were as follows: 2015 2014 2013 Interest $ 44,974 $ 32,601 $ 32,655 Income taxes 33,046 111,174 167,146 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Inventory Disclosure [Abstract] | |
Components of inventories | Inventories consisted of the following at December 26, 2015 and December 27, 2014 : 2015 2014 Raw materials and purchased parts $ 162,977 $ 179,093 Work-in-process 25,644 27,835 Finished goods and manufactured goods 187,126 199,772 Subtotal 375,747 406,700 Less: LIFO reserve 35,075 47,178 $ 340,672 $ 359,522 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment, at cost | Property, plant and equipment, at cost, consist of the following: 2015 2014 Land and improvements $ 79,450 $ 82,372 Buildings and improvements 323,469 327,863 Machinery and equipment 565,771 593,387 Transportation equipment 17,774 35,205 Office furniture and equipment 77,054 76,589 Construction in progress 17,538 24,153 $ 1,081,056 $ 1,139,569 |
Schedule of minimum lease payments under operating leases | Minimum lease payments under operating leases expiring subsequent to December 26, 2015 are: Fiscal year ending 2016 $ 20,816 2017 17,824 2018 13,587 2019 9,510 2020 7,894 Subsequent 31,986 Total minimum lease payments $ 101,617 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of components of amortized intangible assets | The components of amortized intangible assets at December 26, 2015 and December 27, 2014 were as follows: December 26, 2015 Gross Accumulated Weighted Customer Relationships $ 201,801 $ 101,614 13 years Proprietary Software & Database 3,571 2,966 8 years Patents & Proprietary Technology 6,815 3,421 11 years Other 3,752 3,671 3 years $ 215,939 $ 111,672 (7) GOODWILL AND INTANGIBLE ASSETS (Continued) December 27, 2014 Gross Accumulated Weighted Customer Relationships $ 207,509 $ 88,538 13 years Proprietary Software & Database 3,769 2,977 8 years Patents & Proprietary Technology 12,394 8,537 8 years Other 4,355 2,998 3 years $ 228,027 $ 103,050 |
Schedule of future estimated amortization expense | Estimated annual amortization expense related to finite‑lived intangible assets is as follows: Estimated 2016 $ 15,945 2017 15,905 2018 14,259 2019 13,452 2020 12,430 |
Schedule of non-amortized intangible assets | The carrying values of trade names at December 26, 2015 and December 27, 2014 were as follows: December 26, December 27, Year Acquired Webforge $ 10,430 $ 16,801 2010 Valmont SM 8,919 10,818 2014 Newmark 11,111 11,111 2004 Ingal EPS/Ingal Civil Products 8,504 8,867 2010 Donhad 6,415 6,689 2010 Shakespeare 4,000 4,000 2014 Industrial Galvanizers 2,662 3,889 2010 Other 13,889 14,852 $ 65,930 $ 77,027 |
Schedule of carrying amount of goodwill | The carrying amount of goodwill by segment as of December 26, 2015 and December 27, 2014 was as follows: Engineered Energy and Mining Segment Utility Coatings Irrigation Total Balance at December 27, 2014 $ 107,868 $ 106,770 $ 75,404 $ 75,533 $ 19,536 $ 385,111 Impairment — (18,670 ) — (16,222 ) — (34,892 ) Acquisition — — — 3,019 — 3,019 Foreign currency translation (4,856 ) (6,941 ) — (2,611 ) (177 ) (14,585 ) Divestiture of business (1,737 ) — — — — (1,737 ) Balance at December 26, 2015 $ 101,275 $ 81,159 $ 75,404 $ 59,719 $ 19,359 $ 336,916 Engineered Energy and Mining Segment Utility Coatings Irrigation Total Balance at December 28, 2013 $ 97,253 $ 96,759 $ 75,404 $ 77,796 $ 2,420 $ 349,632 Acquisition 15,416 16,803 — — 17,193 49,412 Foreign currency translation (4,801 ) (6,792 ) — (2,263 ) (77 ) (13,933 ) Balance at December 27, 2014 $ 107,868 $ 106,770 $ 75,404 $ 75,533 $ 19,536 $ 385,111 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense (benefit) | Income tax expense (benefit) consists of: 2015 2014 2013 Current: Federal $ 23,130 $ 52,588 $ 110,847 State 4,431 5,059 16,398 Foreign 15,077 32,443 39,285 42,638 90,090 166,530 Non-current: (69 ) (447 ) 1,392 Deferred: Federal 3,382 447 (8,661 ) State (333 ) 1,376 (307 ) Foreign 1,809 3,428 (1,173 ) 4,858 5,251 (10,141 ) $ 47,427 $ 94,894 $ 157,781 |
Schedule of reconciliation of statutory federal income tax rate and effective tax rate | The reconciliations of the statutory federal income tax rate and the effective tax rate follows: 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 3.1 1.8 2.4 Carryforwards, credits and changes in valuation allowances (0.1 ) (0.4 ) (0.2 ) Foreign tax rate differences (5.7 ) (4.4 ) (2.4 ) Changes in unrecognized tax benefits (0.1 ) (0.2 ) 0.3 Domestic production activities deduction (3.8 ) (1.6 ) (2.1 ) Goodwill impairment 11.3 — — UK tax rate reduction 7.7 — 1.8 Other 3.6 3.2 0.3 51.0 % 33.4 % 35.1 % |
Schedule of tax effects of significant items comprising net deferred income tax liabilities | Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating loss and tax credit carryforwards. The tax effects of significant items comprising the Company’s net deferred income tax liabilities are as follows: 2015 2014 Deferred income tax assets: Accrued expenses and allowances $ 18,320 $ 17,446 Accrued insurance 1,408 882 Tax credits and loss carryforwards 130,743 148,484 Defined benefit pension liability 32,278 30,025 Inventory allowances 911 4,804 Accrued warranty 12,818 6,920 Deferred compensation 36,672 40,348 Gross deferred income tax assets 233,150 248,909 Valuation allowance (90,837 ) (104,487 ) Net deferred income tax assets 142,313 144,422 Deferred income tax liabilities: Work in progress 3,087 5,352 Property, plant and equipment 41,147 43,084 Intangible assets 54,162 60,316 Other liabilities 3,517 6,738 Total deferred income tax liabilities 101,913 115,490 Net deferred income tax asset/(liability) $ 40,400 $ 28,932 |
Schedule of deferred income tax assets (liabilities) presented on the Consolidated Balance Sheets | Deferred income tax assets (liabilities) are presented as follows on the Consolidated Balance Sheets: Balance Sheet Caption 2015 2014 Refundable and deferred income taxes $ — $ 30,239 Other assets 76,069 70,490 Deferred income taxes (35,669 ) (71,797 ) Net deferred income tax asset/(liability) $ 40,400 $ 28,932 |
Schedule of activity related to unrecognized tax benefits | The following summarizes the activity related to our unrecognized tax benefits in 2015 and 2014 , in thousands: 2015 2014 Gross unrecognized tax benefits—beginning of year $ 4,268 $ 4,727 Gross decreases—tax positions in prior period (173 ) (456 ) Gross increases—current‑period tax positions 687 610 Settlements with taxing authorities (361 ) — Lapse of statute of limitations (545 ) (613 ) Gross unrecognized tax benefits—end of year $ 3,876 $ 4,268 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Debt Disclosure [Abstract] | |
Long-term debt | December 26, December 27, 5.00% senior unsecured notes due 2044(a) $ 250,000 $ 250,000 5.25% senior unsecured notes due 2054(b) 250,000 250,000 Unamortized discount on 5.00% and 5.25% senior unsecured notes (a)(b) (4,405 ) (4,449 ) 6.625% senior unsecured notes due 2020(c) 250,200 250,200 Unamortized premium on 6.625% senior unsecured notes(c) 4,518 5,429 Revolving credit agreement (d) — — IDR Bonds(e) 8,500 8,500 Other notes 6,228 8,155 Long-term debt 765,041 767,835 Less current installments of long-term debt 1,077 1,181 Long-term debt, excluding current installments $ 763,964 $ 766,654 ______________________________________________ (a) The 5.00% senior unsecured notes due 2044 include an aggregate principle amount of $250,000 on which interest is paid and an unamortized discount balance of $1,138 at December 26, 2015. The notes bear interest at 5.000% per annum and are due on October 1, 2044. The discount will be amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. (b) The 5.25% senior unsecured notes due 2054 include an aggregate principle amount of $250,000 on which interest is paid and an unamortized discount balance of $3,267 at December 26, 2015. The notes bear interest at 5.250% per annum and are due on October 1, 2054. The discount will be amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. (10) LONG-TERM DEBT (Continued) (c) The 6.625% senior unsecured notes due 2020, following a partial tender offer in September 2014, include a remaining aggregate principal amount of $250,200 on which interest is paid and an unamortized premium balance of $4,518 at December 26, 2015. The notes bear interest at 6.625% per annum and are due on April 1, 2020. In September 2014, the Company repurchased by partial tender $199,800 in aggregate principal amount of these notes and incurred cash prepayment expenses of approximately $41,200 . In addition, $4,439 of the unamortized premium was recognized as income which is the proportionate amount of debt that was repaid. The remaining premium will be amortized against interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. (d) On October 17, 2014, the Company entered into a First Amendment to our Credit Agreement with JPMorgan Chase Bank, as Administrative Agent, and the other lenders party thereto, dated as of August 15, 2012, which increased the committed unsecured revolving credit facility from $400 million to $600 million and extended the maturity date from August 15, 2017 to October 17, 2019. The Company may increase the credit facility by up to an additional $200 million at any time, subject to lenders increasing the amount of their commitments. The interest rate on our borrowings will be, at our option, either: (i) LIBOR (based on a 1, 2, 3 or 6 month interest period, as selected by the Company) plus 100 to 162.5 basis points, depending on the credit rating of the our senior debt published by Standard & Poor's Rating Services and Moody's Investors Service, Inc., or; (ii) the higher of • the prime lending rate , • the Federal Funds rate plus 50 basis points, and • LIBOR (based on a 1 month interest period) plus 100 basis points, plus, in each case, 0 to 62.5 basis points, depending on the credit rating of our senior debt published by Standard & Poor's Rating Services and Mood's Investors Service, Inc. At December 26, 2015, the Company had no outstanding borrowings under the revolving credit facility. The revolving credit facility has a maturity date of October 17, 2019 and contains certain financial covenants that may limit additional borrowing capability under the agreement. At December 26, 2015, the Company had the ability to borrow $581.7 million under this facility, after consideration of standby letters of credit of $18.3 million associated with certain insurance obligations. We also maintain certain short-term bank lines of credit totaling $103.5 million , $103.3 million of which was unused at December 26, 2015. (e) The Industrial Development Revenue Bonds were issued to finance the construction of a manufacturing facility in Jasper, Tennessee. Variable interest is payable until final maturity on June 1, 2025. The effective interest rates at December 26, 2015 and December 27, 2014 were 1.22% and 1.16% , respectively. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of assumptions used in estimating fair value of each option grant | 2015 2014 2013 Expected volatility 34.13 % 32.27 % 33.26 % Risk-free interest rate 1.58 % 1.43 % 1.16 % Expected life from vesting date 3.0 yrs 3.0 yrs 3.0 yrs Dividend yield 0.94 % 0.75 % 0.72 % |
Summary of activity of stock plans | Following is a summary of the activity of the stock plans during 2013 , 2014 and 2015 : Number of Weighted Weighted Aggregate Outstanding at December 29, 2012 868,992 $ 84.91 Granted 155,254 144.86 Exercised (216,105 ) (72.17 ) Forfeited (12,920 ) (129.08 ) Outstanding at December 28, 2013 795,221 $ 99.29 4.56 $ 39,994 Options vested or expected to vest at December 28, 2013 775,237 $ 98.41 4.51 39,678 Options exercisable at December 28, 2013 464,377 $ 81.73 3.58 31,508 The weighted average per share fair value of options granted during 2013 , was $ 37.88 . (11) STOCK-BASED COMPENSATION (Continued) Number of Weighted Weighted Aggregate Outstanding at December 28, 2013 795,221 $ 99.29 Granted 177,717 132.94 Exercised (194,627 ) (71.67 ) Forfeited (9,716 ) (126.23 ) Outstanding at December 27, 2014 768,595 $ 113.72 4.74 $ 15,983 Options vested or expected to vest at December 27, 2014 746,974 $ 113.06 4.69 15,981 Options exercisable at December 27, 2014 450,539 $ 97.29 3.59 15,944 The weighted average per share fair value of options granted during 2014 was $ 33.94 . Number of Weighted Weighted Aggregate Outstanding at December 27, 2014 768,595 $ 113.72 Granted 291,708 104.89 Exercised (169,493 ) 74.37 Forfeited (41,201 ) 137.02 Outstanding at December 26, 2015 849,609 $ 117.42 5.18 $ 4,536 Options vested or expected to vest at December 26, 2015 818,300 $ 117.61 5.13 4,456 Options exercisable at December 26, 2015 409,068 $ 119.43 3.74 3,376 The weighted average per share fair value of options granted during 2015 was $ 27.91 . |
Summary of status of stock options outstanding | Following is a summary of the status of stock options outstanding at December 26, 2015 : Outstanding and Exercisable By Price Range Options Outstanding Options Exercisable Exercise Price Number Weighted Weighted Number Weighted $60.97 - 85.32 136,288 2.08 years $ 83.78 136,103 $ 83.78 $104.47 - 110.33 297,221 6.78 years 104.68 12,181 109.50 $120.91 - 151.45 416,100 5.05 years 137.55 260,784 138.51 849,609 409,068 |
Schedule of non-vested stock and restricted stock units | 2015 2014 2013 Shares issued 47,038 35,885 47,271 Weighted‑average per share price on grant date $ 108.97 $ 136.91 $ 146.72 Compensation expense $ 4,511 $ 3,978 $ 3,667 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted earnings per share (EPS) | The following table provides a reconciliation between Basic and Diluted earnings per share (EPS): Basic EPS Dilutive Diluted EPS 2015: Net earnings attributable to Valmont Industries, Inc. $ 40,117 $ — $ 40,117 Weighted average shares outstanding (000's) 23,288 117 23,405 Per share amount $ 1.72 $ 0.01 $ 1.71 2014: Net earnings attributable to Valmont Industries, Inc. $ 183,976 $ — $ 183,976 Weighted average shares outstanding (000's) 25,719 213 25,932 Per share amount $ 7.15 $ 0.06 $ 7.09 2013: Net earnings attributable to Valmont Industries, Inc. $ 278,489 $ — $ 278,489 Weighted average shares outstanding (000's) 26,641 258 26,899 Per share amount $ 10.45 $ 0.10 $ 10.35 |
DISCLOSURES ABOUT THE FAIR VA44
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Trading Securities measured at fair value | Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 42,697 $ 42,697 $ — $ — Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 45,473 $ 45,473 $ — $ — |
GUARANTEES (Tables)
GUARANTEES (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Guarantees [Abstract] | |
Schedule of changes in the product warranty accrual | 2015 2014 Balance, beginning of period $ 19,760 $ 20,711 Payments made (11,203 ) (13,900 ) Change in liability for warranties issued during the period 28,608 13,130 Change in liability for pre-existing warranties (512 ) (181 ) Balance, end of period $ 36,653 $ 19,760 |
DEFINED BENEFIT RETIREMENT PL46
DEFINED BENEFIT RETIREMENT PLAN (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of changes in PBO and fair value of plan assets for pension plan | Changes in the PBO and fair value of plan assets for the pension plan for the period from December 27, 2014 to December 31, 2015 were as follows: Projected Plan Funded Fair Value at December 27, 2014 $ 692,283 $ 542,159 $ (150,124 ) Employer contributions — 16,500 Interest cost 24,614 — Actual return on plan assets — (306 ) Benefits paid (18,346 ) (18,346 ) Actuarial loss 28,130 — Currency translation (29,232 ) (21,881 ) Fair Value at December 31, 2015 $ 697,449 $ 518,126 $ (179,323 ) Projected Benefit Obligation and Fair Value of Plan Assets —The accumulated benefit obligation (ABO) is the present value of benefits earned to date, assuming no future compensation growth. As there are no active employees in the plan, the ABO is equal to the PBO. The underfunded ABO represents the difference between the PBO and the fair value of plan assets. Changes in the PBO and fair value of plan assets for the pension plan for the period from December 28, 2013 to December 27, 2014 were as follows: Projected Plan Funded Fair Value at December 28, 2013 $ 651,857 $ 497,460 $ (154,397 ) Employer contributions — 18,173 Interest cost 28,667 — Actual return on plan assets — 72,820 Benefits paid (14,498 ) (14,498 ) Actuarial loss 66,889 — Currency translation (40,632 ) (31,796 ) Fair Value at December 27, 2014 $ 692,283 $ 542,159 $ (150,124 ) |
Schedule of pre-tax amounts recognized in accumulated other comprehensive income (loss) | Balance December 29, 2013 $ (38,808 ) Actuarial loss (18,980 ) Currency translation loss 1,835 Balance December 27, 2014 (55,953 ) Actuarial loss (53,661 ) Currency translation gain 2,655 Balance December 26, 2015 $ (106,959 ) |
Schedule of weighted-average actuarial assumptions used to determine the benefit obligation | Percentages 2015 2014 Discount rate 3.75 % 3.65 % Salary increase N/A N/A CPI inflation 2.15 % 2.10 % RPI inflation 3.25 % 3.20 % |
Schedule of components of the net periodic pension (benefit) expense | 2015 2014 Net Periodic Benefit Cost: Interest cost 24,614 28,667 Expected return on plan assets (25,224 ) (26,029 ) Net periodic benefit expense (benefit) $ (610 ) $ 2,638 |
Schedule of weighted-average actuarial assumptions used to determine expense | Percentages 2015 2014 Discount rate 3.65 % 4.45 % Expected return on plan assets 5.00 % 5.50 % CPI Inflation 2.10 % 2.70 % RPI Inflation 3.20 % 3.60 % |
Schedule of expected pension benefit payments | 2016 $ 18,500 2017 19,100 2018 19,700 2019 20,300 2020 20,900 Years 2021 - 2025 114,725 |
Schedule of pension plan assets measured at fair value on a recurring basis | December 31, 2015 Quoted Prices in Significant Other Significant Total Plan net assets: Temporary cash investments $ — $ 5,181 $ — $ 5,181 Index-linked gilts — 123,257 — 123,257 Corporate bonds — 100,701 — 100,701 Corporate stock — 172,456 — 172,456 Diversified growth funds — 116,531 — 116,531 Total plan net assets at fair value $ — $ 518,126 $ — $ 518,126 December 27, 2014 Quoted Prices in Significant Other Significant Total Plan net assets: Temporary cash investments $ — $ 12,320 $ — $ 12,320 Index-linked gilts — 135,229 — 135,229 Corporate bonds — 107,880 — 107,880 Corporate stock — 176,010 — 176,010 Diversified growth funds — 110,720 — 110,720 Total plan net assets at fair value $ — $ 542,159 $ — $ 542,159 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Segment Reporting [Abstract] | |
Segment reporting information of sales and operating income | Summary by Business 2015 2014 2013 SALES: Engineered Support Structures segment: Lighting, Traffic, and Roadway Products $ 600,280 $ 648,352 $ 660,423 Communication Products 171,173 161,618 139,888 Engineered Support Structures segment 771,453 809,970 800,311 Energy and Mining segment: Offshore and Other Complex Steel Structures 103,068 146,432 — Grinding Media 96,442 116,056 138,634 Access Systems 138,349 181,495 201,498 Energy and Mining segment 337,859 443,983 340,132 Utility Support Structures segment: Steel 578,996 714,427 853,459 Concrete 95,581 110,589 108,579 Utility Support Structures segment 674,577 825,016 962,038 Coatings segment 302,385 333,853 357,635 Irrigation segment 612,201 846,326 970,890 Other 7,247 10,108 51,645 Total 2,705,722 3,269,256 3,482,651 INTERSEGMENT SALES: Engineered Support Structures 23,003 74,963 103,974 Energy and Mining 4,652 295 332 Utility Support Structures 1,239 2,451 2,343 Coatings 46,912 55,418 56,649 Irrigation 6,430 6,609 6,523 Other 4,562 6,377 8,619 Total 86,798 146,113 178,440 NET SALES: Engineered Support Structures segment 748,450 735,007 696,337 Energy and Mining segment 333,207 443,688 339,800 Utility Support Structures segment 673,338 822,565 959,695 Coatings segment 255,473 278,435 300,986 Irrigation segment 605,771 839,717 964,367 Other 2,685 3,731 43,026 Total $ 2,618,924 $ 3,123,143 $ 3,304,211 (18) BUSINESS SEGMENTS (Continued) 2015 2014 2013 OPERATING INCOME (LOSS): Engineered Support Structures $ 59,592 $ 66,024 $ 65,861 Energy and Mining (18,762 ) 41,342 35,087 Utility Support Structures 37,847 95,118 174,740 Coatings 27,369 60,921 74,917 Irrigation 84,537 151,508 206,394 Other (9,802 ) (1,535 ) (7,213 ) Corporate (49,086 ) (55,662 ) (76,717 ) Total 131,695 357,716 473,069 Interest expense, net (41,325 ) (30,744 ) (26,025 ) Costs associated with refinancing of debt — (38,705 ) — Other 2,637 (4,084 ) 2,373 Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries $ 93,007 $ 284,183 $ 449,417 TOTAL ASSETS: Engineered Support Structures $ 611,201 $ 640,132 $ 616,231 Energy and Mining 396,366 500,407 353,018 Utility Support Structures 422,021 470,720 524,113 Coatings 270,793 301,707 315,663 Irrigation 310,967 360,883 351,742 Other 2,267 4,930 2,538 Corporate 385,813 450,889 613,189 Total $ 2,399,428 $ 2,729,668 $ 2,776,494 CAPITAL EXPENDITURES: Engineered Support Structures $ 11,445 $ 11,849 $ 12,905 Energy and Mining 3,544 4,893 4,515 Utility Support Structures 11,815 9,014 39,347 Coatings 6,836 14,029 12,206 Irrigation 7,756 21,113 26,039 Other 1,396 1,181 105 Corporate 2,676 10,944 11,636 Total $ 45,468 $ 73,023 $ 106,753 (18) BUSINESS SEGMENTS (Continued) 2015 2014 2013 DEPRECIATION AND AMORTIZATION: Engineered Support Structures $ 22,810 $ 22,363 $ 22,037 Energy and Mining 20,733 22,146 13,167 Utility Support Structures 17,959 17,811 14,375 Coatings 12,962 14,615 14,656 Irrigation 11,746 10,471 7,859 Other 570 123 2,336 Corporate 4,364 1,799 3,006 Total $ 91,144 $ 89,328 $ 77,436 |
Summary by Geographical Area by Location | Summary by Geographical Area by Location of Valmont Facilities: 2015 2014 2013 NET SALES: United States $ 1,586,702 $ 1,808,427 $ 2,077,812 Australia 347,975 439,530 492,698 Denmark 98,628 146,432 — Other 585,619 728,754 733,701 Total $ 2,618,924 $ 3,123,143 $ 3,304,211 LONG-LIVED ASSETS: United States $ 582,783 $ 616,718 $ 530,042 Australia 259,326 316,382 342,320 Denmark 90,463 111,161 — Other 240,004 292,466 306,293 Total $ 1,172,576 $ 1,336,727 $ 1,178,655 |
GUARANTOR_NON-GUARANTOR FINAN48
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | |
Condensed Consolidated Statements of Earnings | CONSOLIDATED STATEMENTS OF EARNINGS For the Year ended December 26, 2015 Parent Guarantors Non- Eliminations Total Net sales $ 1,169,674 $ 423,928 $ 1,238,609 $ (213,287 ) $ 2,618,924 Cost of sales 890,242 332,847 987,729 (212,927 ) 1,997,891 Gross profit 279,432 91,081 250,880 (360 ) 621,033 Selling, general and administrative expenses 194,335 45,549 207,484 — 447,368 Impairment of goodwill and intangible assets — — 41,970 — 41,970 Operating income 85,097 45,532 1,426 (360 ) 131,695 Other income (expense): Interest expense (43,552 ) — (1,069 ) — (44,621 ) Interest income 9 103 3,184 — 3,296 Other (2,374 ) 60 4,951 — 2,637 (45,917 ) 163 7,066 — (38,688 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 39,180 45,695 8,492 (360 ) 93,007 Income tax expense (benefit): Current 863 23,261 18,446 (1 ) 42,569 Deferred 10,042 (6,224 ) 1,040 — 4,858 10,905 17,037 19,486 (1 ) 47,427 Earnings before equity in earnings of nonconsolidated subsidiaries 28,275 28,658 (10,994 ) (359 ) 45,580 Equity in earnings of nonconsolidated subsidiaries 11,842 (39,418 ) (247 ) 27,576 (247 ) Net earnings 40,117 (10,760 ) (11,241 ) 27,217 45,333 Less: Earnings attributable to noncontrolling interests — — (5,216 ) — (5,216 ) Net earnings attributable to Valmont Industries, Inc $ 40,117 $ (10,760 ) $ (16,457 ) $ 27,217 $ 40,117 (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED STATEMENTS OF EARNINGS For the Year ended December 27, 2014 Parent Guarantors Non- Eliminations Total Net sales $ 1,392,509 $ 496,326 $ 1,456,053 $ (221,745 ) $ 3,123,143 Cost of sales 1,040,808 371,639 1,124,813 (222,234 ) 2,315,026 Gross profit 351,701 124,687 331,240 489 808,117 Selling, general and administrative expenses 196,987 49,171 204,243 — 450,401 Operating income 154,714 75,516 126,997 489 357,716 Other income (expense): Interest expense (34,267 ) (5 ) (2,518 ) — (36,790 ) Interest income 38 359 5,649 — 6,046 Costs associated with refinancing of debt (38,705 ) — — — (38,705 ) Other 2,021 (511 ) (5,594 ) — (4,084 ) (70,913 ) (157 ) (2,463 ) — (73,533 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 83,801 75,359 124,534 489 284,183 Income tax expense (benefit): Current 30,330 25,277 33,898 138 89,643 Deferred (1,474 ) 1,866 4,859 — 5,251 28,856 27,143 38,757 138 94,894 Earnings before equity in earnings of nonconsolidated subsidiaries 54,945 48,216 85,777 351 189,289 Equity in earnings of nonconsolidated subsidiaries 129,031 19,509 63 (148,574 ) 29 Net earnings 183,976 67,725 85,840 (148,223 ) 189,318 Less: Earnings attributable to noncontrolling interests — — (5,342 ) — (5,342 ) Net earnings attributable to Valmont Industries, Inc $ 183,976 $ 67,725 $ 80,498 $ (148,223 ) $ 183,976 |
Condensed Consolidated Statements of Comprehensive Income | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Year ended December 26, 2015 Parent Guarantors Non- Eliminations Total Net earnings $ 40,117 $ (10,760 ) $ (11,241 ) $ 27,217 $ 45,333 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gains (losses) — (15,166 ) (81,528 ) — (96,694 ) — (15,166 ) (81,528 ) — (96,694 ) Gain (loss) on cash flow hedge: Amortization cost included in interest expense 74 — — — 74 Realized (gain) loss included in net earnings (3,130 ) — — — (3,130 ) Unrealized gain on cash flow hedges 2,855 — — — 2,855 (201 ) — — — (201 ) Actuarial gain (loss) in defined benefit pension plan liability — — (40,274 ) — (40,274 ) Equity in other comprehensive income (132,584 ) — — 132,584 — Other comprehensive income (loss) (132,785 ) (15,166 ) (121,802 ) 132,584 (137,169 ) Comprehensive income (loss) (92,668 ) (25,926 ) (133,043 ) 159,801 (91,836 ) Comprehensive income attributable to noncontrolling interests — — (832 ) — (832 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ (92,668 ) $ (25,926 ) $ (133,875 ) $ 159,801 $ (92,668 ) (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Year ended December 27, 2014 Parent Guarantors Non- Eliminations Total Net earnings $ 183,976 $ 67,725 $ 85,840 $ (148,223 ) $ 189,318 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gains (losses) — (51,536 ) (30,739 ) — (82,275 ) — (51,536 ) (30,739 ) — (82,275 ) Gain (loss) on cash flow hedge: Amortization cost included in interest expense 594 — — — 594 Realized (gain) loss included in net earnings 983 — — — 983 Unrealized gain on cash flow hedges 4,837 — — — 4,837 6,414 — — — 6,414 Actuarial gain (loss) in defined benefit pension plan liability — — (13,709 ) — (13,709 ) Equity in other comprehensive income (93,162 ) — — 93,162 — Other comprehensive income (loss) (86,748 ) (51,536 ) (44,448 ) 93,162 (89,570 ) Comprehensive income 97,228 16,189 41,392 (55,061 ) 99,748 Comprehensive income attributable to noncontrolling interests — — (2,520 ) — (2,520 ) Comprehensive income attributable to Valmont Industries, Inc. $ 97,228 $ 16,189 $ 38,872 $ (55,061 ) $ 97,228 (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Year ended December 28, 2013 Parent Guarantors Non- Eliminations Total Net earnings $ 278,489 $ 97,955 $ 68,597 $ (164,581 ) $ 280,460 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gains (losses) — (4,772 ) (66,926 ) — (71,698 ) Realized loss on sale of investment in foreign entity included in other expense — — 5,194 — 5,194 Realized loss on deconsolidation of subsidiary — — 8,559 — 8,559 — (4,772 ) (53,173 ) — (57,945 ) Gain (loss) on cash flow hedge: Amortization cost included in interest expense 400 — — — 400 400 — — — 400 Actuarial gain (loss) in defined benefit pension plan liability — — (41,282 ) — (41,282 ) Equity in other comprehensive income (106,430 ) — — 106,430 — Other comprehensive income (loss) (106,030 ) (4,772 ) (94,455 ) 106,430 (98,827 ) Comprehensive income 172,459 93,183 (25,858 ) (58,151 ) 181,633 Comprehensive income attributable to noncontrolling interests — — (9,174 ) — (9,174 ) Comprehensive income attributable to Valmont Industries, Inc. $ 172,459 $ 93,183 $ (35,032 ) $ (58,151 ) $ 172,459 |
Condensed Consolidated Balance Sheets | CONSOLIDATED BALANCE SHEETS December 26, 2015 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 62,281 $ 4,008 $ 282,785 $ — $ 349,074 Receivables, net 130,741 66,387 269,315 — 466,443 Inventories 132,222 38,379 173,064 (2,993 ) 340,672 Prepaid expenses 9,900 766 35,471 — 46,137 Refundable and deferred income taxes 24,526 — — — 24,526 Total current assets 359,670 109,540 760,635 (2,993 ) 1,226,852 Property, plant and equipment, at cost 541,536 132,864 406,656 — 1,081,056 Less accumulated depreciation and amortization 334,471 69,956 144,140 — 548,567 Net property, plant and equipment 207,065 62,908 262,516 — 532,489 Goodwill 20,108 110,562 206,246 — 336,916 Other intangible assets 238 40,959 129,000 — 170,197 Investment in subsidiaries and intercompany accounts 1,239,228 813,779 939,177 (2,992,184 ) — Other assets 47,113 — 85,861 — 132,974 Total assets $ 1,873,422 $ 1,137,748 $ 2,383,435 $ (2,995,177 ) $ 2,399,428 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ 215 $ — $ 862 $ — $ 1,077 Notes payable to banks — — 976 — 976 Accounts payable 66,723 13,680 99,580 — 179,983 Accrued employee compensation and benefits 32,272 6,347 31,735 — 70,354 Accrued expenses 31,073 22,802 51,718 — 105,593 Dividends payable 8,571 — — — 8,571 Total current liabilities 138,854 42,829 184,871 — 366,554 Deferred income taxes 9,686 — 25,983 — 35,669 Long-term debt, excluding current installments 758,811 — 5,153 — 763,964 Defined benefit pension liability — — 179,323 — 179,323 Deferred compensation 43,485 — 4,932 — 48,417 Other noncurrent liabilities 4,145 — 36,145 — 40,290 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,683 (1,106,633 ) 27,900 Additional paid-in capital — 159,414 1,107,536 (1,266,950 ) — Retained earnings 1,729,679 541,917 354,727 (896,644 ) 1,729,679 Accumulated other comprehensive income (loss) (267,218 ) (64,362 ) (210,688 ) 275,050 (267,218 ) Treasury stock (571,920 ) — — — (571,920 ) Total Valmont Industries, Inc. shareholders’ equity 918,441 1,094,919 1,900,258 (2,995,177 ) 918,441 Noncontrolling interest in consolidated subsidiaries — — 46,770 — 46,770 Total shareholders’ equity 918,441 1,094,919 1,947,028 (2,995,177 ) 965,211 Total liabilities and shareholders’ equity $ 1,873,422 $ 1,137,748 $ 2,383,435 $ (2,995,177 ) $ 2,399,428 (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED BALANCE SHEETS December 27, 2014 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 69,869 $ 2,157 $ 299,553 $ — $ 371,579 Receivables, net 158,316 68,414 310,188 — 536,918 Inventories 127,859 54,914 177,512 (763 ) 359,522 Prepaid expenses 7,087 502 49,323 — 56,912 Refundable and deferred income taxes 53,307 6,194 8,509 — 68,010 Total current assets 416,438 132,181 845,085 (763 ) 1,392,941 Property, plant and equipment, at cost 556,658 124,182 458,729 — 1,139,569 Less accumulated depreciation and amortization 319,899 65,493 147,724 — 533,116 Net property, plant and equipment 236,759 58,689 311,005 — 606,453 Goodwill 20,108 107,542 257,461 — 385,111 Other intangible assets 292 43,644 158,068 — 202,004 Investment in subsidiaries and intercompany accounts 1,446,989 825,236 887,055 (3,159,280 ) — Other assets 46,587 — 96,572 — 143,159 Total assets $ 2,167,173 $ 1,167,292 $ 2,555,246 $ (3,160,043 ) $ 2,729,668 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ 213 $ — $ 968 $ — $ 1,181 Notes payable to banks — — 13,952 — 13,952 Accounts payable 59,893 15,151 121,521 — 196,565 Accrued employee compensation and benefits 48,169 5,385 34,396 — 87,950 Accrued expenses 32,616 6,052 49,812 — 88,480 Dividends payable 9,086 — — — 9,086 Total current liabilities 149,977 26,588 220,649 — 397,214 Deferred income taxes 5,584 28,988 37,225 — 71,797 Long-term debt, excluding current installments 759,895 — 6,759 — 766,654 Defined benefit pension liability — — 150,124 — 150,124 Deferred compensation 41,803 — 6,129 — 47,932 Other noncurrent liabilities 8,081 — 37,461 — 45,542 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,682 (1,106,632 ) 27,900 Additional paid-in capital — 150,286 1,098,408 (1,248,694 ) — Retained earnings 1,718,662 552,676 397,302 (949,978 ) 1,718,662 Accumulated other comprehensive income (134,433 ) (49,196 ) (96,065 ) 145,261 (134,433 ) Treasury stock (410,296 ) — — — (410,296 ) Total Valmont Industries, Inc. shareholders’ equity 1,201,833 1,111,716 2,048,327 (3,160,043 ) 1,201,833 Noncontrolling interest in consolidated subsidiaries — — 48,572 — 48,572 Total shareholders’ equity 1,201,833 1,111,716 2,096,899 (3,160,043 ) 1,250,405 Total liabilities and shareholders’ equity $ 2,167,173 $ 1,167,292 $ 2,555,246 $ (3,160,043 ) $ 2,729,668 |
Condensed Consolidated Statements of Cash Flows | CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year ended December 26, 2015 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 40,117 $ (10,760 ) $ (11,241 ) $ 27,217 $ 45,333 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 29,433 12,611 49,100 — 91,144 Noncash loss on trading securities — — 4,555 — 4,555 Impairment of property, plant and equipment 7,486 542 11,808 — 19,836 Impairment of goodwill & intangibles assets — — 41,970 — 41,970 Stock-based compensation 7,244 — — — 7,244 Defined benefit pension plan expense (benefit) — — (610 ) — (610 ) Contribution to defined benefit pension plan — — (16,500 ) — (16,500 ) (Gain) loss on sale of property, plant and equipment 983 319 1,025 — 2,327 Equity in earnings in nonconsolidated subsidiaries (11,842 ) 39,418 247 (27,576 ) 247 Deferred income taxes 10,042 (6,224 ) 1,040 — 4,858 Changes in assets and liabilities (net of acquisitions): Receivables 27,576 3,547 19,144 — 50,267 Inventories (4,364 ) 18,130 (12,698 ) 2,228 3,296 Prepaid expenses 2,337 (172 ) 8,679 — 10,844 Accounts payable 6,831 (1,970 ) (11,666 ) — (6,805 ) Accrued expenses (16,485 ) 17,713 7,366 324 8,918 Other noncurrent liabilities 177 — (1,941 ) — (1,764 ) Income taxes payable (refundable) 7,895 (306 ) (482 ) — 7,107 Net cash flows from operating activities 107,430 72,848 89,796 2,193 272,267 Cash flows from investing activities: Purchase of property, plant and equipment (14,362 ) (7,718 ) (23,388 ) — (45,468 ) Proceeds from sale of assets 3,996 302 (1,049 ) — 3,249 Acquisitions, net of cash acquired — (12,778 ) — — (12,778 ) Other, net 72,866 (50,447 ) (13,400 ) (2,193 ) 6,826 Net cash flows from investing activities 62,500 (70,641 ) (37,837 ) (2,193 ) (48,171 ) Cash flows from financing activities: Net borrowings under short-term agreements — — (12,853 ) — (12,853 ) Proceeds from long-term borrowings 68,000 — — — 68,000 Principal payments on long-term borrowings (68,213 ) — (885 ) — (69,098 ) Dividends paid (35,357 ) — — — (35,357 ) Intercompany dividends 26,115 — (26,115 ) — — Dividends to noncontrolling interest — — (2,634 ) — (2,634 ) Proceeds from exercises under stock plans 13,075 — — — 13,075 Excess tax benefits from stock option exercises 1,699 — — — 1,699 Purchase of treasury shares (168,983 ) — — — (168,983 ) Purchase of common treasury shares - stock plan exercises (13,854 ) — — — (13,854 ) Net cash flows from financing activities (177,518 ) — (42,487 ) — (220,005 ) Effect of exchange rate changes on cash and cash equivalents — (356 ) (26,240 ) — (26,596 ) Net change in cash and cash equivalents (7,588 ) 1,851 (16,768 ) — (22,505 ) Cash and cash equivalents—beginning of year 69,869 2,157 299,553 — 371,579 Cash and cash equivalents—end of period $ 62,281 $ 4,008 $ 282,785 $ — $ 349,074 (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year ended December 27, 2014 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 183,976 $ 67,725 $ 85,840 $ (148,223 ) $ 189,318 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 24,509 12,926 51,893 — 89,328 Loss on investment — — 3,795 — 3,795 Non-cash debt refinancing costs (2,478 ) — — — (2,478 ) Stock-based compensation 6,730 — — — 6,730 Defined benefit pension plan expense — — 2,638 — 2,638 Contribution to defined benefit pension plan — — (18,173 ) — (18,173 ) Change in fair value of contingent consideration — — (4,300 ) — (4,300 ) (Gain) loss on sale of property, plant and equipment 145 143 104 — 392 Equity in earnings in nonconsolidated subsidiaries (129,031 ) (19,509 ) (63 ) 148,574 (29 ) Deferred income taxes (1,474 ) 1,866 4,859 — 5,251 Changes in assets and liabilities (net of the effect from acquisitions): Receivables (19,136 ) 40,186 (20,143 ) — 907 Inventories 5,094 15,317 1,047 — 21,458 Prepaid expenses (2,352 ) 429 (11,671 ) — (13,594 ) Accounts payable (2,260 ) (5,212 ) (26,849 ) — (34,321 ) Accrued expenses (21,448 ) (9,590 ) (3,740 ) — (34,778 ) Other noncurrent liabilities 622 — 1,133 — 1,755 Income taxes payable (24,945 ) (19,417 ) 4,559 — (39,803 ) Net cash flows from operating activities 17,952 84,864 70,929 351 174,096 Cash flows from investing activities: Purchase of property, plant and equipment (41,260 ) (2,823 ) (28,940 ) — (73,023 ) Acquisitions, net of cash acquired — — (185,710 ) — (185,710 ) Proceeds from sale of assets 43 126 2,320 — 2,489 Other, net 34,735 (73,799 ) 38,796 (351 ) (619 ) Net cash flows from investing activities (6,482 ) (76,496 ) (173,534 ) (351 ) (256,863 ) Cash flows from financing activities: Net borrowings under short-term agreements — — (4,472 ) — (4,472 ) Proceeds from long-term borrowings 652,540 — (329 ) — 652,211 Principal payments on long-term obligations (356,994 ) — (864 ) — (357,858 ) Settlement of financial derivative 4,981 — — — 4,981 Dividends paid (32,443 ) — — — (32,443 ) Intercompany dividends 116,995 (36,600 ) (80,395 ) — — Intercompany interest on long-term note — 648 (648 ) — — Intercompany capital contribution (143,000 ) — 143,000 — — Dividends to noncontrolling interest — — (2,919 ) — (2,919 ) Debt issuance fees (7,644 ) — — — (7,644 ) Proceeds from exercises under stock plans 14,572 — — — 14,572 Excess tax benefits from stock option exercises 4,264 — — — 4,264 Purchase of treasury shares (395,045 ) — — — (395,045 ) Purchase of common treasury shares - stock plan exercises (15,403 ) — — — (15,403 ) Net cash flows from financing activities (157,177 ) (35,952 ) 53,373 — (139,756 ) Effect of exchange rate changes on cash and cash equivalents — (56 ) (19,548 ) — (19,604 ) Net change in cash and cash equivalents (145,707 ) (27,640 ) (68,780 ) — (242,127 ) Cash and cash equivalents—beginning of year 215,576 29,797 368,333 — 613,706 Cash and cash equivalents—end of year $ 69,869 $ 2,157 $ 299,553 $ — $ 371,579 (20) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year ended December 28, 2013 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 278,489 $ 97,955 $ 68,597 $ (164,581 ) $ 280,460 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 21,270 12,862 43,304 — 77,436 Deconsolidation of subsidiary — — 12,011 — 12,011 Impairment of property, plant and equipment — — 12,161 — 12,161 Stock-based compensation 6,513 — — — 6,513 Defined benefit pension plan expense — — 6,569 — 6,569 Contribution to defined benefit pension plan — — (17,619 ) — (17,619 ) (Gain) loss on sale of property, plant and equipment 885 42 (5,245 ) — (4,318 ) Equity in earnings in nonconsolidated subsidiaries (150,512 ) (16,417 ) (494 ) 166,588 (835 ) Deferred income taxes (8,948 ) (19 ) (1,174 ) — (10,141 ) Changes in assets and liabilities (net of the effect from acquisitions): Receivables 6,181 (22,259 ) 3,370 — (12,708 ) Inventories 12,966 1,757 (1,292 ) — 13,431 Prepaid expenses 2,417 98 1,600 — 4,115 Accounts payable (10,458 ) (1,643 ) 24,549 — 12,448 Accrued expenses 19,191 5,824 (3,317 ) — 21,698 Other noncurrent liabilities 3,201 — (4,675 ) — (1,474 ) Income taxes payable (5,908 ) (3,251 ) 5,029 825 (3,305 ) Net cash flows from operating activities 175,287 74,949 143,374 2,832 396,442 Cash flows from investing activities: Purchase of property, plant and equipment (76,582 ) (4,439 ) (25,732 ) — (106,753 ) Acquisitions, net of cash acquired — — (63,152 ) — (63,152 ) Proceeds from sale of assets 794 35 36,753 — 37,582 Other, net 86,258 (83,327 ) 503 (2,832 ) 602 Net cash flows from investing activities 10,470 (87,731 ) (51,628 ) (2,832 ) (131,721 ) Cash flows from financing activities: Net borrowings under short-term agreements — — 5,510 — 5,510 Proceeds from long-term borrowings — — 274 — 274 Principal payments on long-term obligations (187 ) — (404 ) — (591 ) Cash decrease due to deconsolidation of subsidiary — — (11,615 ) — (11,615 ) Dividends paid (25,414 ) — — — (25,414 ) Intercompany dividends 8,947 20,133 (29,080 ) — — Intercompany interest on long-term note — 1,229 (1,229 ) — — Intercompany principal payment on long-term note — 22,430 (22,430 ) — — Dividends to noncontrolling interest — — (1,767 ) — (1,767 ) Purchase of noncontrolling interest — — (9,324 ) — (9,324 ) Proceeds from exercises under stock plans 16,348 — — — 16,348 Excess tax benefits from stock option exercises 5,306 — — — 5,306 Purchase of common treasury shares - stock plan exercises (16,107 ) — — — (16,107 ) Net cash flows from financing activities (11,107 ) 43,792 (70,065 ) — (37,380 ) Effect of exchange rate changes on cash and cash equivalents — (7,927 ) (19,837 ) — (27,764 ) Net change in cash and cash equivalents 174,650 23,083 1,844 — 199,577 Cash and cash equivalents—beginning of year 40,926 6,714 366,489 — 414,129 Cash and cash equivalents—end of year $ 215,576 $ 29,797 $ 368,333 $ — $ 613,706 |
QUARTERLY FINANCIAL DATA (Una49
QUARTERLY FINANCIAL DATA (Unaudited) (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data (Unaudited) | Net Earnings Gross Per Share Stock Price Dividends Net Sales Profit Amount Basic Diluted High Low Declared 2015 First $ 670,398 $ 165,454 $ 30,739 $ 1.29 $ 1.28 $ 130.26 $ 117.56 $ 0.375 Second (1) 682,123 169,548 27,873 1.19 1.19 128.26 118.09 0.375 Third (2) 632,575 156,751 12,066 0.52 0.52 121.23 97.44 0.375 Fourth (3) 633,828 129,280 (30,561 ) (1.34 ) (1.34 ) 117.94 93.99 0.375 Year $ 2,618,924 $ 621,033 $ 40,117 $ 1.72 $ 1.71 $ 130.26 $ 93.99 $ 1.500 2014 First $ 751,740 $ 206,982 $ 55,980 $ 2.10 $ 2.08 $ 155.64 $ 141.74 $ 0.250 Second 842,599 220,477 63,976 2.40 2.38 163.23 143.02 0.375 Third (4) 765,668 199,500 23,559 0.93 0.92 155.62 131.68 0.375 Fourth 763,136 181,158 40,461 1.67 1.66 139.31 123.44 0.375 Year $ 3,123,143 $ 808,117 $ 183,976 $ 7.15 $ 7.09 $ 163.23 $ 123.44 $ 1.375 Earnings per share are computed independently for each of the quarters. Therefore, the sum of the quarterly earnings per share may not equal the total for the year. _______________________________ (1) The second quarter of 2015 included costs associated with the restructuring plan (the "Plan") that was approved by the Board of Directors in April 2015 of $9.8 million after tax ( $0.42 per share). (2) The third quarter of 2015 included costs associated with the Plan of $6.3 million after tax ( $0.27 per share) and non- cash impairments of goodwill and trade names of $13.4 million after tax ( $0.58 per share). (3) The fourth quarter of 2015 included costs associated with the Plan of $11.5 million after tax ( $0.50 per share) and non-cash impairments of goodwill and intangibles of $ 7.1 million and $19.6 million after tax (combined $1.16 per share) related to our APAC Coatings and Access Systems businesses, respectively. In addition, the Company recorded a one time increase in its warranty reserve related to one large utility project of $11.5 million after tax ( $0.50 per share) and an increase to the bad debt allowance for a large international irrigation receivable of $4.8 million after tax ( $0.21 per share). Lastly, U.K. corporate tax rates were collectively reduced from 20% to 18% which reduced the value of our deferred tax assets associated with net operating loss carryforwards and certain timing differences which increased the Company's tax expense by $7.1 million ( $0.31 per share). (4) The third quarter of 2014 included costs associated with refinancing of our long-term debt of $24.2 million after tax ( $0.95 per share) and a non-cash fair market value adjustment for Delta EMD shares of $1.4 million after tax ( $.05 per share). |
SUMMARY OF SIGNIFICANT ACCOUN50
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015USD ($)segment | Dec. 27, 2014USD ($) | Dec. 28, 2013 | |
Accounting Policies [Line Items] | |||
Components of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive income (loss) consisted of the following: Foreign Currency Translation Adjustments Unrealized Gain on Cash Flow Hedge Defined Benefit Pension Plan Accumulated Other Comprehensive Income (Loss) Balance at December 27, 2014 $ (99,618 ) $ 3,879 $ (38,694 ) $ (134,433 ) Current-period comprehensive income (loss) (92,310 ) (201 ) (40,274 ) (132,785 ) Balance at December 26, 2015 $ (191,928 ) $ 3,678 $ (78,968 ) $ (267,218 ) | ||
Fiscal year | |||
Length of fiscal year | 364 days | 371 days | 364 days |
Accounts Receivable | |||
Delinquent Accounts Receivable | $ 10,000 | ||
Other assets, allowance for doubtful receivables | 21,000 | $ 9,900 | |
Cash overdrafts | |||
Cash book overdrafts | $ 15,536 | $ 18,038 | |
Segments | |||
Number of reportable segments | segment | 5 | ||
Percentage of Sales to Total Consolidated Sales of Other Business Activities, Aggregated as Other, Maximum | 10.00% | ||
Inventories | |||
Inventory valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market (as a percent) | 39.00% | 44.00% | |
Excess of replacement cost of inventories over the LIFO value | $ 35,075 | $ 47,178 | |
Minimum | |||
Principles of Consolidation | |||
Equity method investment in affiliates, ownership percentage | 20.00% | ||
Maximum | |||
Principles of Consolidation | |||
Equity method investment in affiliates, ownership percentage | 50.00% | 50.00% | |
Cost method investment in affiliates, ownership percentage | 20.00% |
SUMMARY OF SIGNIFICANT ACCOUN51
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2013 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Long-lived assets | ||||
Depreciation expense | $ 72,805 | $ 73,395 | $ 62,291 | |
Melbourne galvenizing site equipment | ||||
Long-lived assets | ||||
Impairment of long-lived assets | $ 4,100 | |||
Delta EMD, Ltd. | ||||
Long-lived assets | ||||
Impairment of long-lived assets | $ 12,161 | |||
Buildings and improvements | Minimum | ||||
Long-lived assets | ||||
Estimated useful lives | 15 years | |||
Buildings and improvements | Maximum | ||||
Long-lived assets | ||||
Estimated useful lives | 40 years | |||
Machinery and equipment | Minimum | ||||
Long-lived assets | ||||
Estimated useful lives | 3 years | |||
Machinery and equipment | Maximum | ||||
Long-lived assets | ||||
Estimated useful lives | 12 years | |||
Transportation equipment | Minimum | ||||
Long-lived assets | ||||
Estimated useful lives | 3 years | |||
Transportation equipment | Maximum | ||||
Long-lived assets | ||||
Estimated useful lives | 24 years | |||
Office furniture and equipment | Minimum | ||||
Long-lived assets | ||||
Estimated useful lives | 3 years | |||
Office furniture and equipment | Maximum | ||||
Long-lived assets | ||||
Estimated useful lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN52
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) | 12 Months Ended |
Dec. 26, 2015 | |
Minimum | |
Intangible assets | |
Intangible assets lives | 5 years |
Maximum | |
Intangible assets | |
Intangible assets lives | 20 years |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) $ in Thousands | 12 Months Ended |
Dec. 26, 2015USD ($) | |
Components of accumulated other comprehensive income (loss) | |
Balance at the beginning of the period | $ (134,433) |
Current-period comprehensive income (loss) | (132,785) |
Balance at the end of the period | (267,218) |
Foreign Currency Translation Adjustments | |
Components of accumulated other comprehensive income (loss) | |
Balance at the beginning of the period | (99,618) |
Current-period comprehensive income (loss) | (92,310) |
Balance at the end of the period | (191,928) |
Unrealized Loss on Cash Flow Hedge | |
Components of accumulated other comprehensive income (loss) | |
Balance at the beginning of the period | 3,879 |
Current-period comprehensive income (loss) | (201) |
Balance at the end of the period | 3,678 |
Defined Benefit Pension Plan | |
Components of accumulated other comprehensive income (loss) | |
Balance at the beginning of the period | (38,694) |
Current-period comprehensive income (loss) | (40,274) |
Balance at the end of the period | $ (78,968) |
SUMMARY OF SIGNIFICANT ACCOUN54
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) - USD ($) | May. 13, 2014 | May. 31, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 26, 2015 | Feb. 28, 2015 | Feb. 24, 2015 |
Equity Method Investments | ||||||||
Amount recognized in currency translation adjustments previously recorded as part of accumulated other comprehensive income | $ 0 | $ 0 | $ (5,194,000) | |||||
Research and Development | ||||||||
Research and development expenses | $ 11,600,000 | $ 13,900,000 | 10,200,000 | |||||
Stock Repurchase Program | ||||||||
Authorized amount | $ 500,000,000 | $ 500,000,000 | $ 250,000,000 | $ 250,000,000 | ||||
Length of authorization period | 12 months | 12 months | ||||||
Shares acquired under share repurchase program | 1,435,488 | 2,711,149 | 4,146,637 | |||||
Amount paid for share repurchase | $ 168,983,000 | $ 395,045,000 | 0 | $ 564,000,000 | ||||
Manganese Materials Company Pty. Ltd. | ||||||||
Equity Method Investments | ||||||||
Proceeds from sale of business | 29,250,000 | |||||||
Amount recognized in currency translation adjustments previously recorded as part of accumulated other comprehensive income | 5,194,000 | |||||||
Deferred tax benefits associated with sale of business | $ 3,200,000 |
ACQUISITIONS AND DECONSOLIDAT55
ACQUISITIONS AND DECONSOLIDATION (Details) | Sep. 30, 2015USD ($) | Oct. 06, 2014USD ($)facility | Aug. 25, 2014USD ($) | Mar. 03, 2014USD ($)facility | Feb. 05, 2013USD ($) | Dec. 28, 2013USD ($) | Oct. 31, 2013USD ($) | Sep. 27, 2014USD ($)$ / shares | Dec. 28, 2013USD ($) | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Dec. 28, 2013USD ($) | Dec. 27, 2014USD ($) |
Acquisitions | |||||||||||||
Acquisitions, net of cash acquired | $ 12,778,000 | $ 185,710,000 | $ 63,152,000 | ||||||||||
Fair values of the assets acquired and liabilities assumed | |||||||||||||
Goodwill | $ 349,632,000 | $ 349,632,000 | 336,916,000 | $ 385,111,000 | $ 349,632,000 | $ 385,111,000 | |||||||
Pro forma results of operations | |||||||||||||
Net sales | $ 3,201,947,000 | ||||||||||||
Net earnings | $ 189,391,000 | ||||||||||||
Earnings per share-diluted | $ / shares | $ 7.30 | ||||||||||||
American Galvanizing [Member] | |||||||||||||
Acquisitions | |||||||||||||
Acquisitions, net of cash acquired | $ 12,778,000 | ||||||||||||
Annual sales | 10,000,000 | ||||||||||||
Fair values of the assets acquired and liabilities assumed | |||||||||||||
Intangible assets | 2,178,000 | ||||||||||||
Goodwill | $ 3,019,000 | ||||||||||||
Valmont SM, AgSense, Locker, Armorflex and Shakespeare acquisitions | |||||||||||||
Net sales and net earnings included in Consolidated Statements of Earnings | |||||||||||||
Net sales included in Consolidated Statements of Earnings | 179,132,000 | ||||||||||||
Net earnings included in Consolidated Statements of Earnings | $ 8,209,000 | ||||||||||||
Valmont SM | |||||||||||||
Acquisitions | |||||||||||||
Ownership percentage acquired | 90.00% | ||||||||||||
Cash acquired | $ 56,000 | ||||||||||||
Annual sales | |||||||||||||
Number of manufacturing locations operated | facility | 2 | ||||||||||||
Cash paid to acquire business | $ 120,483,000 | ||||||||||||
Fair value of contingent consideration | 0 | ||||||||||||
Fair values of the assets acquired and liabilities assumed | |||||||||||||
Current assets | 73,421,000 | ||||||||||||
Property, plant and equipment | 85,638,000 | ||||||||||||
Intangible assets | 30,340,000 | ||||||||||||
Goodwill | 16,803,000 | ||||||||||||
Total fair value of assets acquired | 206,202,000 | ||||||||||||
Current liabilities | 47,754,000 | ||||||||||||
Deferred income taxes | 19,715,000 | ||||||||||||
Intercompany note payable | 37,448,000 | ||||||||||||
Long-term debt | 8,941,000 | ||||||||||||
Total fair value and liabilities assumed | 113,858,000 | ||||||||||||
Non-controlling interests | 9,309,000 | ||||||||||||
Net assets acquired | $ 83,035,000 | ||||||||||||
Shakespeare | |||||||||||||
Acquisitions | |||||||||||||
Annual sales | $ 55,000,000 | ||||||||||||
Number of manufacturing locations operated | facility | 2 | ||||||||||||
Cash paid to acquire business | $ 48,272,000 | ||||||||||||
Fair values of the assets acquired and liabilities assumed | |||||||||||||
Current assets | 12,532,000 | ||||||||||||
Property, plant and equipment | 10,694,000 | ||||||||||||
Intangible assets | 13,500,000 | ||||||||||||
Goodwill | 15,416,000 | ||||||||||||
Total fair value of assets acquired | 52,142,000 | ||||||||||||
Current liabilities | 3,870,000 | ||||||||||||
Net assets acquired | $ 48,272,000 | ||||||||||||
Locker Group Holdings Pty. Ltd. | |||||||||||||
Acquisitions | |||||||||||||
Ownership percentage acquired | 0.00% | ||||||||||||
Cash acquired | $ 116,000 | ||||||||||||
Cash paid to acquire business | $ 53,152,000 | ||||||||||||
Fair value of contingent consideration | 7,911,000 | ||||||||||||
Fair value of contingent consideration | $ 7,178,000 | $ 4,000,000 | |||||||||||
Payments Made to Sellers Upon Achievement of Certain Targets | $ 2,300,000 | ||||||||||||
Armorflex International Ltd. | |||||||||||||
Acquisitions | |||||||||||||
Ownership percentage acquired | 0.00% | 0.00% | 0.00% | ||||||||||
Cash paid to acquire business | $ 10,000,000 | ||||||||||||
Fair values of the assets acquired and liabilities assumed | |||||||||||||
Intangible assets | 3,792,000 | $ 3,792,000 | $ 3,792,000 | ||||||||||
Goodwill | $ 6,823,000 | $ 6,823,000 | $ 6,823,000 | ||||||||||
Valley Irrigation South Africa Pty. Ltd. | |||||||||||||
Acquisitions | |||||||||||||
Ownership percentage acquired | 40.00% | ||||||||||||
Cash paid to acquire business | $ 9,324,000 | ||||||||||||
AgSense LLC | |||||||||||||
Acquisitions | |||||||||||||
Ownership percentage acquired | 51.00% | ||||||||||||
Cash paid to acquire business | $ 17,000,000 | ||||||||||||
Fair values of the assets acquired and liabilities assumed | |||||||||||||
Goodwill | 17,193,000 | ||||||||||||
Net sales and net earnings included in Consolidated Statements of Earnings | |||||||||||||
Customer relationships, trade name and other intangible assets | $ 16,083,000 |
ACQUISITIONS AND DECONSOLIDAT56
ACQUISITIONS AND DECONSOLIDATION (Details 2) - USD ($) $ in Thousands | Oct. 06, 2014 | Mar. 03, 2014 |
Valmont SM | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Amount | $ 30,340 | |
Shakespeare | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Amount | $ 13,500 | |
Backlog | Valmont SM | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Amount | $ 3,145 | |
Weighted Average Amortization Period (Years) | 1 year 6 months | |
Customer Relationships | Valmont SM | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Amount | $ 15,725 | |
Weighted Average Amortization Period (Years) | 12 years | |
Customer Relationships | Shakespeare | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Amount | $ 9,500 | |
Weighted Average Amortization Period (Years) | 12 years | |
Trade Names | Valmont SM | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Amount | $ 11,470 | |
Trade Names | Shakespeare | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Amount | $ 4,000 |
ACQUISITIONS AND DECONSOLIDAT57
ACQUISITIONS AND DECONSOLIDATION (Details 3) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 28, 2013 | Sep. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Deconsolidation | |||||
Deconsolidation of subsidiary | $ 0 | $ 0 | $ 12,011 | ||
Realized loss on deconsolidation of subsidiary | $ 8,559 | ||||
Maximum | |||||
Deconsolidation | |||||
Ownership interest (as a percent) | 50.00% | 50.00% | 50.00% | ||
Delta EMD, Ltd. | |||||
Deconsolidation | |||||
Supplementary contribution to Delta Pension Plan | 1,500,000 | ||||
Deconsolidation of subsidiary | $ (12,011) | ||||
Loss on deconsolidation (in dollars per share) | $ 0.45 | ||||
Realized loss on deconsolidation of subsidiary | $ 8,559 | ||||
Losses due to remeasurement of remaining investment | $ (3,452) | $ 1,400 | $ 3,800 | ||
Proceeds from Dividends Received | $ 5,000 | ||||
Fair value of remaining ownership | $ 500 | ||||
Net sales included in Company's Consolidated Statements of Earnings | $ 38,621 | ||||
Net earnings included in Company's Consolidated Statements of Earnings | $ 3,535 |
RESTRUCTURING ACTIVITIES (Detai
RESTRUCTURING ACTIVITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 26, 2015 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Apr. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected cost remaining | $ 11,500 | $ 11,500 | $ 6,300 | ||
Goodwill impairment | 7,100 | 34,892 | |||
Restructuring, Settlement and Impairment Provisions | 60,000 | ||||
Broad Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected cost remaining | $ 39,852 | 39,852 | $ 9,800 | ||
Maximum | Broad Restructuring Plan | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and related cost, expected cost remaining | $ 60,000 | ||||
APAC Galvanizing Reporting Unit [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Goodwill impairment | $ 17,300 |
RESTRUCTURING ACTIVITIES (Det59
RESTRUCTURING ACTIVITIES (Details 2) - USD ($) $ in Thousands | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | $ 11,500 | $ 6,300 | |
Broad Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 39,852 | $ 9,800 | |
Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 21,708 | ||
Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 18,144 | ||
Severance | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 7,204 | ||
Severance | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 6,719 | ||
Other cash restructuring expenses | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 4,377 | ||
Other cash restructuring expenses | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 1,716 | ||
Asset impairments/net loss on disposals | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 10,127 | ||
Asset impairments/net loss on disposals | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 9,709 | ||
Engineered Support Structures | Broad Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 9,279 | ||
Engineered Support Structures | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 4,105 | ||
Engineered Support Structures | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 5,174 | ||
Engineered Support Structures | Severance | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 2,305 | ||
Engineered Support Structures | Severance | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 2,951 | ||
Engineered Support Structures | Other cash restructuring expenses | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 1,467 | ||
Engineered Support Structures | Other cash restructuring expenses | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 0 | ||
Engineered Support Structures | Asset impairments/net loss on disposals | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 333 | ||
Engineered Support Structures | Asset impairments/net loss on disposals | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 2,223 | ||
Energy and Mining Segment | Broad Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 7,069 | ||
Energy and Mining Segment | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 6,355 | ||
Energy and Mining Segment | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 714 | ||
Energy and Mining Segment | Severance | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 2,112 | ||
Energy and Mining Segment | Severance | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 714 | ||
Energy and Mining Segment | Other cash restructuring expenses | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 882 | ||
Energy and Mining Segment | Other cash restructuring expenses | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 0 | ||
Energy and Mining Segment | Asset impairments/net loss on disposals | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 3,361 | ||
Energy and Mining Segment | Asset impairments/net loss on disposals | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 0 | ||
Utility | Broad Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 5,192 | ||
Utility | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 4,550 | ||
Utility | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 642 | ||
Utility | Severance | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 1,555 | ||
Utility | Severance | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 404 | ||
Utility | Other cash restructuring expenses | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 1,853 | ||
Utility | Other cash restructuring expenses | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 238 | ||
Utility | Asset impairments/net loss on disposals | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 1,142 | ||
Utility | Asset impairments/net loss on disposals | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 0 | ||
Coatings | Broad Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 6,580 | ||
Coatings | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 5,974 | ||
Coatings | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 606 | ||
Coatings | Severance | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 508 | ||
Coatings | Severance | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 270 | ||
Coatings | Other cash restructuring expenses | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 175 | ||
Coatings | Other cash restructuring expenses | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 336 | ||
Coatings | Asset impairments/net loss on disposals | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 5,291 | ||
Coatings | Asset impairments/net loss on disposals | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 0 | ||
Irrigation | Broad Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 1,277 | ||
Irrigation | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 724 | ||
Irrigation | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 553 | ||
Irrigation | Severance | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 724 | ||
Irrigation | Severance | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 423 | ||
Irrigation | Other cash restructuring expenses | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 0 | ||
Irrigation | Other cash restructuring expenses | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 0 | ||
Irrigation | Asset impairments/net loss on disposals | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 0 | ||
Irrigation | Asset impairments/net loss on disposals | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 130 | ||
Other | Broad Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 10,455 | ||
Other | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 0 | ||
Other | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 10,455 | ||
Other | Severance | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 0 | ||
Other | Severance | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 1,957 | ||
Other | Other cash restructuring expenses | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 0 | ||
Other | Other cash restructuring expenses | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 1,142 | ||
Other | Asset impairments/net loss on disposals | Broad Restructuring Plan | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 0 | ||
Other | Asset impairments/net loss on disposals | Broad Restructuring Plan | Selling, General and Administrative Expenses | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | $ 7,356 |
RESTRUCTURING ACTIVITIES RESTRU
RESTRUCTURING ACTIVITIES RESTRUCTURING ACTIVITIES (Details 3) $ in Thousands | 12 Months Ended |
Dec. 26, 2015USD ($) | |
Restructuring Cost and Reserve [Roll Forward] | |
Beginning balance | $ 0 |
Recognized Restructuring Expense | 20,016 |
Costs Paid or Otherwise Settled | 17,283 |
Ending balance | 2,733 |
Severance | |
Restructuring Cost and Reserve [Roll Forward] | |
Beginning balance | 0 |
Recognized Restructuring Expense | 13,923 |
Costs Paid or Otherwise Settled | 12,616 |
Ending balance | 1,307 |
Other cash restructuring expenses | |
Restructuring Cost and Reserve [Roll Forward] | |
Beginning balance | 0 |
Recognized Restructuring Expense | 6,093 |
Costs Paid or Otherwise Settled | 4,667 |
Ending balance | $ 1,426 |
CASH FLOW SUPPLEMENTARY INFOR61
CASH FLOW SUPPLEMENTARY INFORMATION (Details) - USD ($) | May. 13, 2014 | May. 31, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 26, 2015 | Feb. 28, 2015 | Feb. 24, 2015 |
Supplemental Cash Flow Elements [Abstract] | ||||||||
Increased dividend (as a percent) | 50.00% | |||||||
Maximum amount of common stock authorized to repurchase under share repurchase program | $ 500,000,000 | $ 500,000,000 | $ 250,000,000 | $ 250,000,000 | ||||
Period over which common stock are authorized to repurchase under share repurchase program | 12 months | 12 months | ||||||
Shares acquired under share repurchase program | 1,435,488 | 2,711,149 | 4,146,637 | |||||
Amount paid for share repurchase | $ 168,983,000 | $ 395,045,000 | $ 0 | $ 564,000,000 | ||||
Supplemental Cash Flow Information [Abstract] | ||||||||
Interest | 44,974,000 | 32,601,000 | 32,655,000 | |||||
Income taxes | $ 33,046,000 | $ 111,174,000 | $ 167,146,000 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 26, 2015 | Dec. 27, 2014 |
Inventory Disclosure [Abstract] | ||
Raw materials and purchased parts | $ 162,977 | $ 179,093 |
Work-in-process | 25,644 | 27,835 |
Finished goods and manufactured goods | 187,126 | 199,772 |
Subtotal | 375,747 | 406,700 |
Less: LIFO reserve | 35,075 | 47,178 |
Net inventory | $ 340,672 | $ 359,522 |
PROPERTY, PLANT AND EQUIPMENT63
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 26, 2015 | Dec. 27, 2014 |
Long-lived assets | ||
Property, plant and equipment, at cost | $ 1,081,056 | $ 1,139,569 |
Land and improvements | ||
Long-lived assets | ||
Property, plant and equipment, at cost | 79,450 | 82,372 |
Buildings and improvements | ||
Long-lived assets | ||
Property, plant and equipment, at cost | 323,469 | 327,863 |
Machinery and equipment | ||
Long-lived assets | ||
Property, plant and equipment, at cost | 565,771 | 593,387 |
Transportation equipment | ||
Long-lived assets | ||
Property, plant and equipment, at cost | 17,774 | 35,205 |
Office furniture and equipment | ||
Long-lived assets | ||
Property, plant and equipment, at cost | 77,054 | 76,589 |
Construction in progress | ||
Long-lived assets | ||
Property, plant and equipment, at cost | $ 17,538 | $ 24,153 |
PROPERTY, PLANT AND EQUIPMENT64
PROPERTY, PLANT AND EQUIPMENT (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Operating leases | |||
Rental expense for operating leases | $ 25,546 | $ 28,580 | $ 26,567 |
Minimum lease payments under operating leases | |||
2,016 | 20,816 | ||
2,017 | 17,824 | ||
2,018 | 13,587 | ||
2,019 | 9,510 | ||
2,020 | 7,894 | ||
Subsequent | 31,986 | ||
Total minimum lease payments | $ 101,617 |
GOODWILL AND INTANGIBLE ASSET65
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Components of amortized intangible assets | |||
Gross Carrying Amount | $ 215,939 | $ 228,027 | |
Accumulated Amortization | 111,672 | 103,050 | |
Amortization expense for intangible assets | 18,339 | 18,414 | $ 15,233 |
Estimated amortization expense | |||
2,016 | 15,945 | ||
2,017 | 15,905 | ||
2,018 | 14,259 | ||
2,019 | 13,452 | ||
2,020 | 12,430 | ||
Customer Relationships | |||
Components of amortized intangible assets | |||
Gross Carrying Amount | 201,801 | 207,509 | |
Accumulated Amortization | $ 101,614 | $ 88,538 | |
Weighted Average Life | 13 years | 13 years | |
Proprietary Software And Database | |||
Components of amortized intangible assets | |||
Gross Carrying Amount | $ 3,571 | $ 3,769 | |
Accumulated Amortization | $ 2,966 | $ 2,977 | |
Weighted Average Life | 8 years | 8 years | |
Patents & Proprietary Technology | |||
Components of amortized intangible assets | |||
Gross Carrying Amount | $ 6,815 | $ 12,394 | |
Accumulated Amortization | $ 3,421 | $ 8,537 | |
Weighted Average Life | 11 years | 8 years | |
Other | |||
Components of amortized intangible assets | |||
Gross Carrying Amount | $ 3,752 | $ 4,355 | |
Accumulated Amortization | $ 3,671 | $ 2,998 | |
Weighted Average Life | 3 years | 3 years |
GOODWILL AND INTANGIBLE ASSET66
GOODWILL AND INTANGIBLE ASSETS (Details 2) - USD ($) $ in Thousands | Dec. 26, 2015 | Dec. 27, 2014 |
Webforge | ||
Non-amortized intangible assets | ||
Carrying value of trade names | $ 10,430 | $ 16,801 |
Valmont SM | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 8,919 | 10,818 |
Newmark | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 11,111 | 11,111 |
Ingal EPS/Ingal Civil Products | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 8,504 | 8,867 |
Donhad | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 6,415 | 6,689 |
Shakespeare | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 4,000 | 4,000 |
Industrial Galvanizers | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 2,662 | 3,889 |
Other | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 13,889 | 14,852 |
Trade Names | ||
Non-amortized intangible assets | ||
Carrying value of trade names | $ 65,930 | $ 77,027 |
GOODWILL AND INTANGIBLE ASSET67
GOODWILL AND INTANGIBLE ASSETS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 26, 2015 | Sep. 26, 2015 | |
Intangible assets | ||
Impairment | $ 19,600 | |
Engineered Support Structures | Webforge | ||
Intangible assets | ||
Impairment | $ 830 | $ 5,000 |
Coatings Segment | Industrial Galvanizers | ||
Intangible assets | ||
Impairment | $ 1,100 |
GOODWILL AND INTANGIBLE ASSET68
GOODWILL AND INTANGIBLE ASSETS (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Dec. 26, 2015 | Dec. 27, 2014 | |
Carrying amount of goodwill | |||||
Balance at the beginning of the period | $ 385,111 | $ 349,632 | |||
Impairment | $ (7,100) | (34,892) | |||
Acquisition | 3,019 | 49,412 | |||
Foreign currency translation | (14,585) | (13,933) | |||
Divestiture of business | (1,737) | ||||
Balance at the end of the period | 336,916 | 336,916 | 385,111 | ||
Engineered Support Structures | |||||
Carrying amount of goodwill | |||||
Balance at the beginning of the period | 107,868 | 97,253 | |||
Impairment | 0 | ||||
Acquisition | 0 | 15,416 | |||
Foreign currency translation | (4,856) | (4,801) | |||
Divestiture of business | $ (1,737) | (1,737) | |||
Balance at the end of the period | 101,275 | 101,275 | 107,868 | ||
Energy and Mining Segment | |||||
Carrying amount of goodwill | |||||
Balance at the beginning of the period | 106,770 | 96,759 | |||
Impairment | (18,670,000) | (18,670) | |||
Acquisition | 0 | 16,803 | |||
Foreign currency translation | (6,941) | (6,792) | |||
Divestiture of business | 0 | ||||
Balance at the end of the period | 81,159 | 81,159 | 106,770 | ||
Utility Support Structures Segment | |||||
Carrying amount of goodwill | |||||
Balance at the beginning of the period | 75,404 | 75,404 | |||
Impairment | 0 | ||||
Acquisition | 0 | 0 | |||
Foreign currency translation | 0 | 0 | |||
Divestiture of business | 0 | ||||
Balance at the end of the period | 75,404 | 75,404 | 75,404 | ||
Coatings Segment | |||||
Carrying amount of goodwill | |||||
Balance at the beginning of the period | 75,533 | 77,796 | |||
Impairment | (7,122) | $ (9,100) | (16,222) | ||
Acquisition | 3,019 | 0 | |||
Foreign currency translation | (2,611) | (2,263) | |||
Divestiture of business | 0 | ||||
Balance at the end of the period | 59,719 | 59,719 | 75,533 | ||
Irrigation Segment | |||||
Carrying amount of goodwill | |||||
Balance at the beginning of the period | 19,536 | 2,420 | |||
Impairment | 0 | ||||
Acquisition | 0 | 17,193 | |||
Foreign currency translation | (177) | (77) | |||
Divestiture of business | 0 | ||||
Balance at the end of the period | $ 19,359 | $ 19,359 | $ 19,536 |
GOODWILL AND INTANGIBLE ASSET69
GOODWILL AND INTANGIBLE ASSETS (Details 5) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 26, 2015$ / bbl | Dec. 26, 2015USD ($) | Sep. 26, 2015USD ($) | Jun. 27, 2015USD ($) | Dec. 26, 2015USD ($)$ / bbl | |
Goodwill [Line Items] | |||||
Impairment of intangible assets | $ 19,600 | ||||
Divestiture of business | $ 1,737 | ||||
Goodwill impairment | 7,100 | $ 34,892 | |||
Average sales price of oil (in dollars per barrel) | $ / bbl | 40 | ||||
Maximum | |||||
Goodwill [Line Items] | |||||
Estimated future sales price of oil (in dollars per barrel) | $ / bbl | 50 | ||||
Engineered Support Structures | |||||
Goodwill [Line Items] | |||||
Divestiture of business | $ 1,737 | $ 1,737 | |||
Goodwill impairment | 0 | ||||
Coatings | |||||
Goodwill [Line Items] | |||||
Divestiture of business | 0 | ||||
Goodwill impairment | 7,122 | $ 9,100 | 16,222 | ||
Energy and Mining Segment | |||||
Goodwill [Line Items] | |||||
Divestiture of business | 0 | ||||
Goodwill impairment | 18,670,000 | $ 18,670 | |||
Webforge | Engineered Support Structures | |||||
Goodwill [Line Items] | |||||
Impairment of intangible assets | $ 830 | 5,000 | |||
Industrial Galvanizers | Coatings | |||||
Goodwill [Line Items] | |||||
Impairment of intangible assets | $ 1,100 |
BANK CREDIT ARRANGEMENTS (Detai
BANK CREDIT ARRANGEMENTS (Details) - USD ($) $ in Thousands | Dec. 26, 2015 | Dec. 27, 2014 |
Bank Credit Arrangements | ||
Outstanding amount | $ 976 | $ 13,952 |
Short-term borrowings | ||
Bank Credit Arrangements | ||
Total line of credit facility for short-term borrowings | 103,484 | |
Outstanding amount | 199 | $ 13,058 |
Unused and available borrowings | $ 103,285 | |
Weighted average interest rate on short-term borrowings (as a percent) | 5.23% | 6.56% |
Other short-term bank loans | ||
Bank Credit Arrangements | ||
Outstanding amount | $ 777 | $ 894 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | |||
United States | $ 99,175 | $ 168,975 | $ 338,163 |
Foreign | (6,168) | 115,208 | 111,254 |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 93,007 | 284,183 | 449,417 |
Current: | |||
Federal | 23,130 | 52,588 | 110,847 |
State | 4,431 | 5,059 | 16,398 |
Foreign | 15,077 | 32,443 | 39,285 |
Total | 42,638 | 90,090 | 166,530 |
Non-current: | (69) | (447) | 1,392 |
Deferred: | |||
Federal | 3,382 | 447 | (8,661) |
State | (333) | 1,376 | (307) |
Foreign | 1,809 | 3,428 | (1,173) |
Total | 4,858 | 5,251 | (10,141) |
Total income tax expense (benefit) | $ 47,427 | $ 94,894 | $ 157,781 |
Reconciliations of statutory federal income tax rate and effective tax rate | |||
Statutory federal income tax rate (as a percent) | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit (as a percent) | 3.10% | 1.80% | 2.40% |
Carryforwards, credits and changes in valuation allowances (as a percent) | (0.10%) | (0.40%) | (0.20%) |
Foreign tax rate differences (as a percent) | (5.70%) | (4.40%) | (2.40%) |
Changes in unrecognized tax benefits (as a percent) | (0.10%) | (0.20%) | 0.30% |
Domestic production activities deduction (as a percent) | (3.80%) | (1.60%) | (2.10%) |
Goodwill impairment (as a percent) | 11.30% | 0.00% | 0.00% |
UK tax rate reduction (as a percent) | 7.70% | 0.00% | 1.80% |
Other (as a percent) | 3.60% | 3.20% | 0.30% |
Total (as a percent) | 51.00% | 33.40% | 35.10% |
Deferred income tax assets: | |||
Accrued expenses and allowances | $ 18,320 | $ 17,446 | |
Accrued insurance | 1,408 | 882 | |
Tax credits and loss carryforwards | 130,743 | 148,484 | |
Defined benefit pension liability | 32,278 | 30,025 | |
Inventory allowances | 911 | 4,804 | |
Accrued warranty | 12,818 | 6,920 | |
Deferred compensation | 36,672 | 40,348 | |
Gross deferred income tax assets | 233,150 | 248,909 | |
Valuation allowance | (90,837) | (104,487) | |
Net deferred income tax assets | 142,313 | 144,422 | |
Deferred income tax liabilities: | |||
Work-in-process | 3,087 | 5,352 | |
Property, plant and equipment | 41,147 | 43,084 | |
Intangible assets | 54,162 | 60,316 | |
Other liabilities | 3,517 | 6,738 | |
Total deferred income tax liabilities | 101,913 | 115,490 | |
Net deferred income tax asset/(liability) | 40,400 | 28,932 | |
Deferred income tax assets (liabilities), Balance Sheet Caption | |||
Refundable and deferred income taxes | 0 | 30,239 | |
Other assets | 76,069 | 70,490 | |
Deferred income taxes | (35,669) | (71,797) | |
Net deferred income tax asset/(liability) | 40,400 | 28,932 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Tax credit and net operating loss carryforwards related to the defined benefit pension obligation | 130,743 | 148,484 | |
Deferred tax assets related to the defined benefit pension obligation | 32,278 | 30,025 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Gross Unrecognized Tax Benefits beginning of year | 4,268 | 4,727 | |
Gross decreases tax positions in prior period | (173) | (456) | |
Gross increases current period tax positions | 687 | 610 | |
Settlements with taxing authorities | (361) | 0 | |
Lapse of statute of limitations | (545) | (613) | |
Gross Unrecognized Tax Benefits end of year | 3,876 | 4,268 | $ 4,727 |
Uncertain tax positions for which reversal is reasonably possible during the next 12 months | 1,304 | ||
Reduction of income tax expense, due to expiration of statutes of limitation | 511 | 399 | |
Accrued interest and penalties relating to unrecognized tax benefits | 280 | 298 | |
Unrecognized tax benefits that, if recognized, would affect effective tax rate | 3,813 | 4,056 | |
Income tax expense recorded on undistributed earnings of foreign subsidiaries which are not considered permanently invested | 415,400 | $ 432,700 | |
Adjustments for New Accounting Principle, Early Adoption | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred tax assets, current | $ 31,967 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Sep. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Oct. 17, 2014 | Sep. 22, 2014 | |
Long-term debt: | |||||
Aggregate principal amount | $ 250,200,000 | $ 250,200,000 | |||
Total long-term debt | 765,041,000 | 767,835,000 | |||
Less current installments of long-term debt | 1,077,000 | 1,181,000 | |||
Long-term debt, excluding current installments | $ 763,964,000 | $ 766,654,000 | |||
Repurchase amount through partial tender offer | $ 199,800,000 | ||||
Effective interest rate (as a percent) | 1.00% | 1.00% | |||
Minimum aggregate maturities of long-term debt | |||||
2,016 | $ 1,102,000 | ||||
2,017 | 893,000 | ||||
2,018 | 894,000 | ||||
2,019 | 752,000 | ||||
2,020 | 250,958,000 | ||||
5.00% senior unsecured notes due 2044 | |||||
Long-term debt: | |||||
Aggregate principal amount | 250,000,000 | $ 250,000,000 | $ 250,000,000 | ||
Unamortized premium on senior unsecured notes | $ 1,138,000 | ||||
Redemption price of notes, stated as a percentage of principal amount (as a percent) | 100.00% | ||||
Interest rate on notes (as a percent) | 5.00% | 5.00% | |||
5.25% senior unsecured notes due 2054 | |||||
Long-term debt: | |||||
Aggregate principal amount | $ 250,000,000 | 250,000,000 | $ 250,000,000 | ||
Unamortized premium on senior unsecured notes | $ 3,267,000 | ||||
Redemption price of notes, stated as a percentage of principal amount (as a percent) | 100.00% | ||||
Interest rate on notes (as a percent) | 5.30% | 5.00% | |||
Unamortized discount on 5.00% and 5.25% senior unsecured notes | |||||
Long-term debt: | |||||
Unamortized premium on senior unsecured notes | $ (4,405,000) | (4,449,000) | |||
6.625% senior unsecured notes due in April 2020 | |||||
Long-term debt: | |||||
Aggregate principal amount | 250,200,000 | $ 250,200,000 | |||
Unamortized premium on senior unsecured notes | $ 4,518,000 | 5,429,000 | |||
Unamortized premium recognized as revenue | $ 4,439,000 | ||||
Redemption price of notes, stated as a percentage of principal amount (as a percent) | 100.00% | ||||
Cash prepayment expenses | $ 41,200,000 | ||||
Interest rate on notes (as a percent) | 6.60% | 6.60% | |||
Repurchase amount through partial tender offer | $ 199,800,000 | ||||
Revolving credit agreement | |||||
Long-term debt: | |||||
Total long-term debt | $ 0 | 0 | |||
Previous borrowing capacity | $ 400,000,000 | ||||
Maximum borrowing capacity | $ 600,000,000 | ||||
Increase in borrowing capacity, maximum | 200,000,000 | ||||
Additional borrowing capacity | 581,700,000 | ||||
Standby letters of credit outstanding | $ 18,300,000 | ||||
Revolving credit agreement | Minimum | |||||
Long-term debt: | |||||
Basis points added to variable rate (as a percent) | 0.00% | ||||
Revolving credit agreement | Maximum | |||||
Long-term debt: | |||||
Basis points added to variable rate (as a percent) | 6250.00% | ||||
Revolving credit agreement | LIBOR | |||||
Long-term debt: | |||||
Variable interest rate basis | LIBOR (based on a 1, 2, 3 or 6 month interest period, as selected by the Company) | ||||
Basis points added to variable rate (as a percent) | 10000.00% | ||||
Variable interest rate, base period | 1 month | ||||
Revolving credit agreement | LIBOR | Minimum | |||||
Long-term debt: | |||||
Basis points added to variable rate (as a percent) | 10000.00% | ||||
Revolving credit agreement | LIBOR | Maximum | |||||
Long-term debt: | |||||
Basis points added to variable rate (as a percent) | 16250.00% | ||||
Revolving credit agreement | Prime lending rate | |||||
Long-term debt: | |||||
Variable interest rate basis | prime lending rate | ||||
Revolving credit agreement | Federal Funds rate | |||||
Long-term debt: | |||||
Variable interest rate basis | Federal Funds rate | ||||
Basis points added to variable rate (as a percent) | 5000.00% | ||||
IDR Bonds | |||||
Long-term debt: | |||||
Total long-term debt | $ 8,500,000 | 8,500,000 | |||
Other notes | |||||
Long-term debt: | |||||
Total long-term debt | 6,228,000 | $ 8,155,000 | |||
Short Term Bank Lines Of Credit | |||||
Long-term debt: | |||||
Additional borrowing capacity | 103,300,000 | ||||
Balance | $ 103,500,000 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Stock Based Compensation | |||
Shares of common stock available for issuance | 868,157,000 | ||
Number of Shares | |||
Exercised (in shares) | (169,493) | (194,627) | (216,105) |
Stock option plans | |||
Stock Based Compensation | |||
Compensation expense (included in selling, general and administrative expenses) | $ 5,137 | $ 4,461 | $ 5,194 |
Tax benefits associated with compensation expense | $ 1,952 | $ 1,695 | $ 1,974 |
Weighted average period over which unrecognized stock option compensation cost would be recognized | 2 years 5 months 1 day | ||
Unrecognized stock option compensation expense | $ 12,939 | ||
Assumptions used in estimating fair value of each option grant | |||
Expected volatility (as a percent) | 34.13% | 32.27% | 33.26% |
Risk-free interest rate (as a percent) | 1.58% | 1.43% | 1.16% |
Expected life from vesting date | 3 years | 3 years | 3 years |
Dividend yield (as a percent) | 0.94% | 0.75% | 0.72% |
Number of Shares | |||
Balance at the beginning of the period (in shares) | 768,595 | 795,221 | 868,992 |
Granted (in shares) | 291,708 | 177,717 | 155,254 |
Exercised (in shares) | (169,493) | (194,627) | (216,105) |
Forfeited (in shares) | (41,201) | (9,716) | (12,920) |
Balance at the end of the period (in shares) | 849,609 | 768,595 | 795,221 |
Options vested or expected to vest (in shares) | 818,300 | 746,974 | 775,237 |
Options exercisable (in shares) | 409,068 | 450,539 | 464,377 |
Weighted Average Exercise Price | |||
Balance at the beginning of the period (in dollars per share) | $ 113,720 | $ 99,290 | $ 84,910 |
Granted (in dollars per share) | 104,890 | 132,940 | 144,860 |
Exercised (in dollars per share) | (74,370) | (71,670) | (72,170) |
Forfeited (in dollars per share) | (137,020) | (126,230) | (129,080) |
Balance at the end of the period (in dollars per share) | 117,420 | 113,720 | 99,290 |
Options vested or expected to vest (in dollars per share) | 117,610 | 113,060 | 98,410 |
Options exercisable (in dollars per share) | $ 119,430 | $ 97,290 | $ 81,730 |
Weighted Average Remaining Contractual Term | |||
Options outstanding | 5 years 2 months 4 days | 4 years 8 months 26 days | 4 years 6 months 21 days |
Options vested or expected to vest | 5 years 1 month 16 days | 4 years 8 months 8 days | 4 years 6 months 3 days |
Options exercisable | 3 years 8 months 26 days | 3 years 7 months 2 days | 3 years 6 months 28 days |
Aggregate Intrinsic Value | |||
Options outstanding | $ 4,536 | $ 15,983 | $ 39,994 |
Options vested or expected to vest | 4,456 | 15,981 | 39,678 |
Options exercisable | $ 3,376 | $ 15,944 | $ 31,508 |
Other option disclosures | |||
Weighted average per share fair value of option granted | $ 27.91 | $ 33.94 | $ 37.88 |
Stock option plans | Maximum | |||
Stock Based Compensation | |||
Vesting period of options | 6 years | ||
Expiration period of grant | 10 years | ||
Stock option plans | Minimum | |||
Stock Based Compensation | |||
Vesting period of options | 3 years | ||
Expiration period of grant | 6 years |
STOCK-BASED COMPENSATION (Det74
STOCK-BASED COMPENSATION (Details 2) | 12 Months Ended |
Dec. 26, 2015$ / sharesshares | |
Options outstanding and exercisable by price range | |
Options Outstanding, Number (in shares) | shares | 849,609 |
Options Exercisable, Number (in shares) | shares | 409,068 |
Range of exercise price per share from $60.97 and $85.32 | |
Options outstanding and exercisable by price range | |
Exercise price range, low end of range (in dollars per share) | $ 60.97 |
Exercise price range, high end of range (in dollars per share) | $ 85.32 |
Options Outstanding, Number (in shares) | shares | 136,288 |
Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 28 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 83.78 |
Options Exercisable, Number (in shares) | shares | 136,103 |
Options Exercisable Weighted Average Exercise Price (in dollars per share) | $ 83.78 |
Range of exercise price per share from $104.47 and $110.33 | |
Options outstanding and exercisable by price range | |
Exercise price range, low end of range (in dollars per share) | 104.47 |
Exercise price range, high end of range (in dollars per share) | $ 110.33 |
Options Outstanding, Number (in shares) | shares | 297,221 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 9 months 10 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 104.68 |
Options Exercisable, Number (in shares) | shares | 12,181 |
Options Exercisable Weighted Average Exercise Price (in dollars per share) | $ 109.50 |
Range of exercise price per share from $120.91 to $151.45 | |
Options outstanding and exercisable by price range | |
Exercise price range, low end of range (in dollars per share) | 120.91 |
Exercise price range, high end of range (in dollars per share) | $ 151.45 |
Options Outstanding, Number (in shares) | shares | 416,100 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 17 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 137.55 |
Options Exercisable, Number (in shares) | shares | 260,784 |
Options Exercisable Weighted Average Exercise Price (in dollars per share) | $ 138.51 |
STOCK-BASED COMPENSATION (Det75
STOCK-BASED COMPENSATION (Details 3) - Directors and certain management employees - Non-vested stock and restricted stock units - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Stock Based Compensation | |||
Shares issued | 47,038 | 35,885 | 47,271 |
Weighted average per share price on grant date | $ 108.97 | $ 136.91 | $ 146.72 |
Compensation expense | $ 4,511 | $ 3,978 | $ 3,667 |
Weighted-average period for grant of stock-based compensation | 1 year 8 months 26 days | ||
Deferred stock-based compensation granted | $ 7,772 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Basic EPS | |||||||||||
Net earnings attributable to Valmont Industries, Inc. | $ (30,561,000) | $ 12,066,000 | $ 27,873,000 | $ 30,739,000 | $ 40,461,000 | $ 23,559,000 | $ 63,976,000 | $ 55,980,000 | $ 40,117,000 | $ 183,976,000 | $ 278,489,000 |
Shares outstanding basic (in shares) | 23,288 | 25,719 | 26,641 | ||||||||
Per share amount basic (in dollars per share) | $ (1.34) | $ 0.52 | $ 1.19 | $ 1.29 | $ 1.67 | $ 0.93 | $ 2.40 | $ 2.10 | $ 1.72 | $ 7.15 | $ 10.45 |
Dilutive Effect of Stock Options | |||||||||||
Dilutive Effect of Stock Options | $ 0 | $ 0 | $ 0 | ||||||||
Dilutive effect of stock options number of shares (in shares) | 117 | 213 | 258 | ||||||||
Dilutive effect of stock options (in dollars per share) | $ 0.01 | $ 0.06 | $ 0.10 | ||||||||
Diluted EPS | |||||||||||
Diluted EPS | $ 40,117,000 | $ 183,976,000 | $ 278,489,000 | ||||||||
Shares outstanding dilutive (in shares) | 23,405 | 25,932 | 26,899 | ||||||||
Per share amount diluted (in dollars per share) | $ (1.34) | $ 0.52 | $ 1.19 | $ 1.28 | $ 1.66 | $ 0.92 | $ 2.38 | $ 2.08 | $ 1.71 | $ 7.09 | $ 10.35 |
EARNINGS PER SHARE (Details 2)
EARNINGS PER SHARE (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 26, 2015 | Sep. 26, 2015 | Sep. 27, 2014 | Sep. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Earnings Per Share [Abstract] | |||||||
Impairment of goodwill and intangible assets | $ 40,140 | ||||||
Impairment of goodwill and intangible assets (in dollars per share | $ 1.16 | $ 0.58 | $ 1.72 | ||||
Restructuring impairment | $ 14,545 | ||||||
Restructuring impairment (in dollars per share) | $ 0.62 | ||||||
Restructuring expenses | $ 13,622 | ||||||
Restructuring expenses (in dollars per share) | $ 0.58 | ||||||
Refinancing of long-term debt | $ 24,200 | $ 24,200 | |||||
Refinancing of long-term debt (in dollars per share) | $ 0.95 | $ 0.93 | |||||
After-tax loss on deconsolidation | $ 12,011 | ||||||
After-tax loss on deconsolidation (in dollars per share) | $ 0.45 | ||||||
Asset impairment loss related to deconsolidation | $ 4,569 | ||||||
Asset impairment loss related to deconsolidation (in dollars per share) | $ 0.17 | ||||||
Outstanding stock options with exercise prices exceeding the market price of common stock, excluded from the computation of diluted earnings per share (in shares) | 449,000 | 426,338 | 1,200 |
EMPLOYEE RETIREMENT SAVINGS P78
EMPLOYEE RETIREMENT SAVINGS PLAN (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Employee contribution limit per calendar year to 401 (k) plan | 50.00% | ||
Company contributions | $ 11,700,000 | $ 12,600,000 | $ 11,600,000 |
Assets related to non-qualified deferred compensation plan included in other assets | 37,963,000 | 36,439,000 | |
Liabilities related to non-qualified deferred compensation plan included in other noncurrent liabilities | 37,963 | 36,439 | |
Total amount distributed from non-qualified deferred compensation plan | $ 2,439,000 | $ 1,519,000 |
DISCLOSURES ABOUT THE FAIR VA79
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | Dec. 26, 2015 | Dec. 27, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets recorded for the investments held | $ 37,963,000 | $ 36,439,000 |
Liabilities recorded for the investments held | 37,963 | 36,439 |
Level 1 member | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 42,697,000 | 45,473,000 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 765,041,000 | 767,835,000 |
Trading Securities | 42,697,000 | 45,473,000 |
Estimated fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 724,020,000 | 813,333 |
EMD | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of remaining ownership | 4,734,000 | 9,034,000 |
Valmont Deferred Compensation Plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets recorded for the investments held | $ 37,963,000 | $ 36,439,000 |
DERIVATIVE FINANCIAL INSTRUME80
DERIVATIVE FINANCIAL INSTRUMENTS (Details) | 12 Months Ended | |
Dec. 26, 2015USD ($)contract | Dec. 27, 2014USD ($)contract | |
Derivative Contract, Counterparty One | ||
Derivative Instrument | ||
Deferred gain (loss) on discontinuation of interest rate fair value hedge | $ (4,500,000) | |
Derivative Contract, Counterparty Two | ||
Derivative Instrument | ||
Deferred gain (loss) on discontinuation of interest rate fair value hedge | $ 4,400,000 | |
Forward contracts | Cash flow hedging | ||
Derivative Instrument | ||
Derivative, number of instruments held | contract | 1 | |
Notional amount of derivative instrument | $ 36,590,000 | |
Derivative, gain (loss) | 1,821,000 | |
Derivative instruments, gain (loss) recognized in accumulated other comprehensive income | $ 0 | |
Foreign currency forward contract | Cash flow hedging | ||
Derivative Instrument | ||
Derivative, number of instruments held | contract | 1 | |
Notional amount of derivative instrument | $ 14,757,000 | |
Derivative instruments, gain (loss) recognized in accumulated other comprehensive income | 242,000 | |
Unrealized gain (loss) on derivatives | $ 424,000 |
GUARANTEES (Details)
GUARANTEES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 26, 2015 | Dec. 26, 2015 | Dec. 27, 2014 | |
Guarantees [Abstract] | |||
Warranty Reserve | $ 17,000 | ||
Changes in the product warranty accrual recorded in accrued expenses | |||
Balance, beginning of period | $ 19,760 | $ 20,711 | |
Payments made | 11,203 | 13,900 | |
Change in liability for warranties issued during the period | 28,608 | 13,130 | |
Change in liability for pre-existing warranties | (512) | (181) | |
Balance, end of period | $ 36,653 | $ 36,653 | $ 19,760 |
DEFINED BENEFIT RETIREMENT PL82
DEFINED BENEFIT RETIREMENT PLAN (Details) £ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 26, 2015USD ($)item$ / £ | Dec. 26, 2015GBP (£)item | Dec. 27, 2014USD ($)$ / £ | Dec. 28, 2013USD ($) | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||||
Pension retirement benefits to qualified employees as percent of final salary per year of service | 1.67% | 1.67% | ||
Eligibility age | 65 years | 65 years | ||
Active members of defined benefit retirement income plan | item | 0 | 0 | ||
Foreign currency exchange rate used to translate the net pension liability | $ / £ | 1.4919 | 1.5557 | ||
Change in Projected Benefit Obligation | ||||
Beginning balance | $ 692,283 | $ 651,857 | ||
Interest cost | 24,614 | 28,667 | ||
Benefits paid | (18,346) | (14,498) | ||
Actuarial loss | (28,130) | (66,889) | ||
Currency translation | (29,232) | (40,632) | ||
Ending balance | 697,449 | 692,283 | ||
Plan Assets | ||||
Fair value beginning balance | 542,159 | 497,460 | ||
Employer contributions | 16,500 | 18,173 | ||
Actual return on plan assets | (306) | 72,820 | ||
Settlements | (14,498) | |||
Benefits paid | (18,346) | (14,498) | ||
Currency translation | (21,881) | (31,796) | ||
Fair Value ending balance | 518,126 | 542,159 | ||
Funded status | ||||
Funded status | (179,323) | (150,124) | $ (154,397) | |
Accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | (55,953) | (38,808) | ||
Actuarial loss | (53,661) | (18,980) | ||
Currency translation gain (loss) | 2,655 | 1,835 | ||
Balance at the end of the period | (106,959) | $ (55,953) | ||
The estimated amount to be amortized from accumulated other comprehensive income into net periodic benefit cost in 2015 | $ 1,500 | |||
Weighted average actuarial assumptions used to determine the benefit obligation | ||||
Discount rate (as a percent) | 3.75% | 3.65% | ||
CPI index (as a percent) | 2.15% | 2.10% | ||
RPI Inflation (as a percent) | 3.25% | 3.20% | ||
Net periodic benefit expense: | ||||
Interest cost | $ 24,614 | $ 28,667 | ||
Expected return on plan assets | (25,224) | (26,029) | ||
Net periodic benefit expense | $ (610) | $ 2,638 | ||
Weighted average actuarial assumptions used to determine expense | ||||
Discount rate (as a percent) | 3.65% | 3.65% | 4.45% | |
Expected return on plan assets (as a percent) | 5.00% | 5.00% | 5.50% | |
RPI index (as a percent) | 2.10% | 2.10% | 2.70% | |
CPI index (as a percent) | 3.20% | 3.20% | 3.60% | |
Limit on employer contributions per annum | $ 14,919 | £ 10,000 | ||
Administrative costs of the Plan | 1,641 | £ 1,100 | ||
Expected pension benefit payments | ||||
2,016 | 18,500 | |||
2,017 | 19,100 | |||
2,018 | 19,700 | |||
2,019 | 20,300 | |||
2,020 | 20,900 | |||
2021-2025 | $ 114,725 | |||
Weighted average maturity period of corporate bond portfolio | 13 years | 13 years |
DEFINED BENEFIT RETIREMENT PL83
DEFINED BENEFIT RETIREMENT PLAN (Details 2) - USD ($) $ in Thousands | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value pension plans | $ 518,126 | $ 542,159 | $ 497,460 |
Level 2 member | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value pension plans | 518,126 | 542,159 | |
Temporary cash investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value pension plans | 5,181 | 12,320 | |
Temporary cash investments | Level 2 member | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value pension plans | 5,181 | 12,320 | |
Index linked gilts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value pension plans | 123,257 | 135,229 | |
Index linked gilts | Level 2 member | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value pension plans | 123,257 | 135,229 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value pension plans | 100,701 | 107,880 | |
Corporate bonds | Level 2 member | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value pension plans | 100,701 | 107,880 | |
Corporate stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value pension plans | 172,456 | 176,010 | |
Corporate stock | Level 2 member | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value pension plans | 172,456 | 176,010 | |
Diversified growth funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value pension plans | 116,531 | 110,720 | |
Diversified growth funds | Level 2 member | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value pension plans | $ 116,531 | $ 110,720 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2015USD ($) | Sep. 26, 2015USD ($) | Jun. 27, 2015USD ($) | Mar. 28, 2015USD ($) | Dec. 27, 2014USD ($) | Sep. 27, 2014USD ($) | Jun. 28, 2014USD ($) | Mar. 29, 2014USD ($) | Dec. 26, 2015USD ($)segment | Dec. 27, 2014USD ($) | Dec. 28, 2013USD ($) | |
Business Segments | |||||||||||
Number of reportable segments | segment | 5 | ||||||||||
Maximum percentage of sales of other businesses and activities to consolidated sales as basis for aggregation | 10.00% | ||||||||||
Net sales | $ 633,828,000 | $ 632,575,000 | $ 682,123,000 | $ 670,398,000 | $ 763,136,000 | $ 765,668,000 | $ 842,599,000 | $ 751,740,000 | $ 2,618,924,000 | $ 3,123,143,000 | $ 3,304,211,000 |
Operating Income | 131,695,000 | 357,716,000 | 473,069,000 | ||||||||
Interest expense, net | (41,325,000) | (30,744,000) | (26,025,000) | ||||||||
Costs associated with refinancing of debt | 0 | (38,705,000) | 0 | ||||||||
Other | 2,637,000 | (4,084,000) | 2,373,000 | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 93,007,000 | 284,183,000 | 449,417,000 | ||||||||
Total assets | 2,399,428,000 | 2,729,668,000 | 2,399,428,000 | 2,729,668,000 | 2,776,494,000 | ||||||
Capital expenditures | 45,468,000 | 73,023,000 | 106,753,000 | ||||||||
Depreciation and amortization | 91,144,000 | 89,328,000 | 77,436,000 | ||||||||
Engineered Support Structures | |||||||||||
Business Segments | |||||||||||
Net sales | 748,450,000 | 735,007,000 | 696,337,000 | ||||||||
Operating Income | 59,592,000 | 66,024,000 | 65,861,000 | ||||||||
Total assets | 611,201,000 | 640,132,000 | 611,201,000 | 640,132,000 | 616,231,000 | ||||||
Capital expenditures | 11,445,000 | 11,849,000 | 12,905,000 | ||||||||
Depreciation and amortization | 22,810,000 | 22,363,000 | 22,037,000 | ||||||||
Energy and Mining Segment | |||||||||||
Business Segments | |||||||||||
Net sales | 333,207,000 | 443,688,000 | 339,800,000 | ||||||||
Operating Income | (18,762,000) | 41,342,000 | 35,087,000 | ||||||||
Total assets | 396,366,000 | 500,407,000 | 396,366,000 | 500,407,000 | 353,018,000 | ||||||
Capital expenditures | 3,544,000 | 4,893,000 | 4,515,000 | ||||||||
Depreciation and amortization | 20,733,000 | 22,146,000 | 13,167,000 | ||||||||
Utility Support Structures Segment | |||||||||||
Business Segments | |||||||||||
Net sales | 673,338,000 | 822,565,000 | 959,695,000 | ||||||||
Operating Income | 37,847,000 | 95,118,000 | 174,740,000 | ||||||||
Total assets | 422,021,000 | 470,720,000 | 422,021,000 | 470,720,000 | 524,113,000 | ||||||
Capital expenditures | 11,815,000 | 9,014,000 | 39,347,000 | ||||||||
Depreciation and amortization | 17,959,000 | 17,811,000 | 14,375,000 | ||||||||
Coatings | |||||||||||
Business Segments | |||||||||||
Net sales | 255,473,000 | 278,435,000 | 300,986,000 | ||||||||
Operating Income | 27,369,000 | 60,921,000 | 74,917,000 | ||||||||
Total assets | 270,793,000 | 301,707,000 | 270,793,000 | 301,707,000 | 315,663,000 | ||||||
Capital expenditures | 6,836,000 | 14,029,000 | 12,206,000 | ||||||||
Depreciation and amortization | 12,962,000 | 14,615,000 | 14,656,000 | ||||||||
Irrigation Segment | |||||||||||
Business Segments | |||||||||||
Net sales | 605,771,000 | 839,717,000 | 964,367,000 | ||||||||
Operating Income | 84,537,000 | 151,508,000 | 206,394,000 | ||||||||
Total assets | 310,967,000 | 360,883,000 | 310,967,000 | 360,883,000 | 351,742,000 | ||||||
Capital expenditures | 7,756,000 | 21,113,000 | 26,039,000 | ||||||||
Depreciation and amortization | 11,746,000 | 10,471,000 | 7,859,000 | ||||||||
Other | |||||||||||
Business Segments | |||||||||||
Net sales | 2,685,000 | 3,731,000 | 43,026,000 | ||||||||
Operating Income | (9,802,000) | (1,535,000) | (7,213,000) | ||||||||
Total assets | 2,267,000 | 4,930,000 | 2,267,000 | 4,930,000 | 2,538,000 | ||||||
Capital expenditures | 1,396,000 | 1,181,000 | 105,000 | ||||||||
Depreciation and amortization | 570,000 | 123,000 | 2,336,000 | ||||||||
Corporate | |||||||||||
Business Segments | |||||||||||
Operating Income | (49,086,000) | (55,662,000) | (76,717,000) | ||||||||
Total assets | 385,813,000 | 450,889,000 | 385,813,000 | 450,889,000 | 613,189,000 | ||||||
Capital expenditures | 2,676,000 | 10,944,000 | 11,636,000 | ||||||||
Depreciation and amortization | 4,364,000 | 1,799,000 | 3,006,000 | ||||||||
Parent | |||||||||||
Business Segments | |||||||||||
Net sales | 1,169,674,000 | 1,392,509,000 | 1,540,266,000 | ||||||||
Operating Income | 85,097,000 | 154,714,000 | 223,896,000 | ||||||||
Other | (2,374,000) | 2,021,000 | 4,791,000 | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 39,180,000 | 83,801,000 | 197,941,000 | ||||||||
Total assets | $ 1,873,422,000 | $ 2,167,173,000 | 1,873,422,000 | 2,167,173,000 | |||||||
Capital expenditures | 14,362,000 | 41,260,000 | 76,582,000 | ||||||||
Depreciation and amortization | 29,433,000 | 24,509,000 | 21,270,000 | ||||||||
Operating segment | |||||||||||
Business Segments | |||||||||||
Sales | 2,705,722,000 | 3,269,256,000 | 3,482,651,000 | ||||||||
Operating segment | Engineered Support Structures | |||||||||||
Business Segments | |||||||||||
Sales | 771,453,000 | 809,970,000 | 800,311,000 | ||||||||
Operating segment | Engineered Support Structures | Lighting, Traffic, and Roadway Products | |||||||||||
Business Segments | |||||||||||
Sales | 600,280,000 | 648,352,000 | 660,423,000 | ||||||||
Operating segment | Engineered Support Structures | Communication Products | |||||||||||
Business Segments | |||||||||||
Sales | 171,173,000 | 161,618,000 | 139,888,000 | ||||||||
Operating segment | Energy and Mining Segment | |||||||||||
Business Segments | |||||||||||
Sales | 337,859,000 | 443,983,000 | 340,132,000 | ||||||||
Operating segment | Energy and Mining Segment | Offshore and Other Complex Steel Structures | |||||||||||
Business Segments | |||||||||||
Sales | 103,068,000 | 146,432,000 | 0 | ||||||||
Operating segment | Energy and Mining Segment | Grinding Media | |||||||||||
Business Segments | |||||||||||
Sales | 96,442,000 | 116,056,000 | 138,634,000 | ||||||||
Operating segment | Energy and Mining Segment | Access Systems | |||||||||||
Business Segments | |||||||||||
Sales | 138,349,000 | 181,495,000 | 201,498,000 | ||||||||
Operating segment | Utility Support Structures Segment | |||||||||||
Business Segments | |||||||||||
Sales | 674,577,000 | 825,016,000 | 962,038,000 | ||||||||
Operating segment | Utility Support Structures Segment | Steel | |||||||||||
Business Segments | |||||||||||
Sales | 578,996,000 | 714,427,000 | 853,459,000 | ||||||||
Operating segment | Utility Support Structures Segment | Concrete | |||||||||||
Business Segments | |||||||||||
Sales | 95,581,000 | 110,589,000 | 108,579,000 | ||||||||
Operating segment | Coatings | |||||||||||
Business Segments | |||||||||||
Sales | 302,385,000 | 333,853,000 | 357,635,000 | ||||||||
Operating segment | Irrigation Segment | |||||||||||
Business Segments | |||||||||||
Sales | 612,201,000 | 846,326,000 | 970,890,000 | ||||||||
Operating segment | Other | |||||||||||
Business Segments | |||||||||||
Sales | 7,247,000 | 10,108,000 | 51,645,000 | ||||||||
Intersegment | |||||||||||
Business Segments | |||||||||||
Sales | 86,798,000 | 146,113,000 | 178,440,000 | ||||||||
Intersegment | Engineered Support Structures | |||||||||||
Business Segments | |||||||||||
Sales | 23,003,000 | 74,963,000 | 103,974,000 | ||||||||
Intersegment | Energy and Mining Segment | |||||||||||
Business Segments | |||||||||||
Sales | 4,652,000 | 295,000 | 332,000 | ||||||||
Intersegment | Utility Support Structures Segment | |||||||||||
Business Segments | |||||||||||
Sales | 1,239,000 | 2,451,000 | 2,343,000 | ||||||||
Intersegment | Coatings | |||||||||||
Business Segments | |||||||||||
Sales | 46,912,000 | 55,418,000 | 56,649,000 | ||||||||
Intersegment | Irrigation Segment | |||||||||||
Business Segments | |||||||||||
Sales | 6,430,000 | 6,609,000 | 6,523,000 | ||||||||
Intersegment | Other | |||||||||||
Business Segments | |||||||||||
Sales | $ 4,562,000 | $ 6,377,000 | $ 8,619,000 |
BUSINESS SEGMENTS (Details 2)
BUSINESS SEGMENTS (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Summary by Geographical Area by Location | |||||||||||
Net sales | $ 633,828 | $ 632,575 | $ 682,123 | $ 670,398 | $ 763,136 | $ 765,668 | $ 842,599 | $ 751,740 | $ 2,618,924 | $ 3,123,143 | $ 3,304,211 |
Long-lived assets | 1,172,576 | 1,336,727 | 1,172,576 | 1,336,727 | 1,178,655 | ||||||
United States | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Net sales | 1,586,702 | 1,808,427 | 2,077,812 | ||||||||
Long-lived assets | 582,783 | 616,718 | 582,783 | 616,718 | 530,042 | ||||||
Australia | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Net sales | 347,975 | 439,530 | 492,698 | ||||||||
Long-lived assets | $ 259,326 | 316,382 | $ 259,326 | 316,382 | 342,320 | ||||||
Australia | Foreign country | Net Sales | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Threshold for disclosure as percentage of net sales by customer | 13.00% | 13.00% | |||||||||
Denmark | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Net sales | $ 98,628 | 146,432 | 0 | ||||||||
Long-lived assets | $ 90,463 | 111,161 | 90,463 | 111,161 | 0 | ||||||
Other | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Net sales | 585,619 | 728,754 | 733,701 | ||||||||
Long-lived assets | $ 240,004 | $ 292,466 | $ 240,004 | $ 292,466 | $ 306,293 |
GUARANTOR_NON-GUARANTOR FINAN86
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | |||||||||||
Parent company's percentage ownership of Guarantors | 100.00% | 100.00% | |||||||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||||||||||
Net sales | $ 633,828 | $ 632,575 | $ 682,123 | $ 670,398 | $ 763,136 | $ 765,668 | $ 842,599 | $ 751,740 | $ 2,618,924 | $ 3,123,143 | $ 3,304,211 |
Cost of sales | 1,997,891 | 2,315,026 | 2,358,983 | ||||||||
Gross profit | 129,280 | 156,751 | 169,548 | 165,454 | 181,158 | 199,500 | 220,477 | 206,982 | 621,033 | 808,117 | 945,228 |
Selling, general and administrative expenses | 447,368 | 450,401 | 472,159 | ||||||||
Impairment of goodwill and intangible assets | 13,400 | 41,970 | 0 | 0 | |||||||
Operating income | 131,695 | 357,716 | 473,069 | ||||||||
Other income (expense): | |||||||||||
Interest expense | (44,621) | (36,790) | (32,502) | ||||||||
Interest income | 3,296 | 6,046 | 6,477 | ||||||||
Costs associated with refinancing of debt | 0 | (38,705) | 0 | ||||||||
Other | 2,637 | (4,084) | 2,373 | ||||||||
Total other income (expenses) | (38,688) | (73,533) | (23,652) | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 93,007 | 284,183 | 449,417 | ||||||||
Income tax expense (benefit): | |||||||||||
Current | 42,569 | 89,643 | 167,922 | ||||||||
Deferred income taxes | 4,858 | 5,251 | (10,141) | ||||||||
Total income tax expense (benefit) | 47,427 | 94,894 | 157,781 | ||||||||
Earnings before equity in earnings of nonconsolidated subsidiaries | 45,580 | 189,289 | 291,636 | ||||||||
Equity in earnings of nonconsolidated subsidiaries | (247) | 29 | 835 | ||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 0 | 0 | (12,011) | ||||||||
Deconsolidation, Gain (Loss), Amount | (12,011) | ||||||||||
Net earnings | 45,333 | 189,318 | 280,460 | ||||||||
Less: Earnings attributable to noncontrolling interests | (5,216) | (5,342) | (1,971) | ||||||||
Net earnings attributable to Valmont Industries, Inc. | $ (30,561) | $ 12,066 | $ 27,873 | $ 30,739 | $ 40,461 | $ 23,559 | $ 63,976 | $ 55,980 | 40,117 | 183,976 | 278,489 |
Parent | |||||||||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||||||||||
Net sales | 1,169,674 | 1,392,509 | 1,540,266 | ||||||||
Cost of sales | 890,242 | 1,040,808 | 1,107,020 | ||||||||
Gross profit | 279,432 | 351,701 | 433,246 | ||||||||
Selling, general and administrative expenses | 194,335 | 196,987 | 209,350 | ||||||||
Impairment of goodwill and intangible assets | 0 | ||||||||||
Operating income | 85,097 | 154,714 | 223,896 | ||||||||
Other income (expense): | |||||||||||
Interest expense | (43,552) | (34,267) | (30,801) | ||||||||
Interest income | 9 | 38 | 55 | ||||||||
Costs associated with refinancing of debt | (38,705) | ||||||||||
Other | (2,374) | 2,021 | 4,791 | ||||||||
Total other income (expenses) | (45,917) | (70,913) | (25,955) | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 39,180 | 83,801 | 197,941 | ||||||||
Income tax expense (benefit): | |||||||||||
Current | 863 | 30,330 | 78,912 | ||||||||
Deferred income taxes | 10,042 | (1,474) | (8,948) | ||||||||
Total income tax expense (benefit) | 10,905 | 28,856 | 69,964 | ||||||||
Earnings before equity in earnings of nonconsolidated subsidiaries | 28,275 | 54,945 | 127,977 | ||||||||
Equity in earnings of nonconsolidated subsidiaries | 11,842 | 129,031 | 150,512 | ||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 0 | ||||||||||
Net earnings | 40,117 | 183,976 | 278,489 | ||||||||
Less: Earnings attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net earnings attributable to Valmont Industries, Inc. | 40,117 | 183,976 | 278,489 | ||||||||
Guarantors | |||||||||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||||||||||
Net sales | 423,928 | 496,326 | 689,230 | ||||||||
Cost of sales | 332,847 | 371,639 | 503,431 | ||||||||
Gross profit | 91,081 | 124,687 | 185,799 | ||||||||
Selling, general and administrative expenses | 45,549 | 49,171 | 59,368 | ||||||||
Impairment of goodwill and intangible assets | 0 | ||||||||||
Operating income | 45,532 | 75,516 | 126,431 | ||||||||
Other income (expense): | |||||||||||
Interest expense | 0 | (5) | (2) | ||||||||
Interest income | 103 | 359 | 1,032 | ||||||||
Costs associated with refinancing of debt | 0 | ||||||||||
Other | 60 | (511) | 9 | ||||||||
Total other income (expenses) | 163 | (157) | 1,039 | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 45,695 | 75,359 | 127,470 | ||||||||
Income tax expense (benefit): | |||||||||||
Current | 23,261 | 25,277 | 45,951 | ||||||||
Deferred income taxes | (6,224) | 1,866 | (19) | ||||||||
Total income tax expense (benefit) | 17,037 | 27,143 | 45,932 | ||||||||
Earnings before equity in earnings of nonconsolidated subsidiaries | 28,658 | 48,216 | 81,538 | ||||||||
Equity in earnings of nonconsolidated subsidiaries | (39,418) | 19,509 | 16,417 | ||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 0 | ||||||||||
Net earnings | (10,760) | 67,725 | 97,955 | ||||||||
Less: Earnings attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net earnings attributable to Valmont Industries, Inc. | (10,760) | 67,725 | 97,955 | ||||||||
Non- Guarantors | |||||||||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||||||||||
Net sales | 1,238,609 | 1,456,053 | 1,402,191 | ||||||||
Cost of sales | 987,729 | 1,124,813 | 1,078,695 | ||||||||
Gross profit | 250,880 | 331,240 | 323,496 | ||||||||
Selling, general and administrative expenses | 207,484 | 204,243 | 203,441 | ||||||||
Impairment of goodwill and intangible assets | 41,970 | ||||||||||
Operating income | 1,426 | 126,997 | 120,055 | ||||||||
Other income (expense): | |||||||||||
Interest expense | (1,069) | (2,518) | (1,699) | ||||||||
Interest income | 3,184 | 5,649 | 5,390 | ||||||||
Costs associated with refinancing of debt | 0 | ||||||||||
Other | 4,951 | (5,594) | (2,427) | ||||||||
Total other income (expenses) | 7,066 | (2,463) | 1,264 | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 8,492 | 124,534 | 121,319 | ||||||||
Income tax expense (benefit): | |||||||||||
Current | 18,446 | 33,898 | 42,379 | ||||||||
Deferred income taxes | 1,040 | 4,859 | (1,174) | ||||||||
Total income tax expense (benefit) | 19,486 | 38,757 | 41,205 | ||||||||
Earnings before equity in earnings of nonconsolidated subsidiaries | (10,994) | 85,777 | 80,114 | ||||||||
Equity in earnings of nonconsolidated subsidiaries | (247) | 63 | 494 | ||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | (12,011) | ||||||||||
Net earnings | (11,241) | 85,840 | 68,597 | ||||||||
Less: Earnings attributable to noncontrolling interests | (5,216) | (5,342) | (1,971) | ||||||||
Net earnings attributable to Valmont Industries, Inc. | (16,457) | 80,498 | 66,626 | ||||||||
Eliminations | |||||||||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||||||||||
Net sales | (213,287) | (221,745) | (327,476) | ||||||||
Cost of sales | (212,927) | (222,234) | (330,163) | ||||||||
Gross profit | (360) | 489 | 2,687 | ||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||
Impairment of goodwill and intangible assets | 0 | ||||||||||
Operating income | (360) | 489 | 2,687 | ||||||||
Other income (expense): | |||||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Interest income | 0 | 0 | 0 | ||||||||
Costs associated with refinancing of debt | 0 | ||||||||||
Other | 0 | 0 | 0 | ||||||||
Total other income (expenses) | 0 | 0 | 0 | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | (360) | 489 | 2,687 | ||||||||
Income tax expense (benefit): | |||||||||||
Current | (1) | 138 | 680 | ||||||||
Deferred income taxes | 0 | 0 | 0 | ||||||||
Total income tax expense (benefit) | (1) | 138 | 680 | ||||||||
Earnings before equity in earnings of nonconsolidated subsidiaries | (359) | 351 | 2,007 | ||||||||
Equity in earnings of nonconsolidated subsidiaries | 27,576 | (148,574) | (166,588) | ||||||||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 0 | ||||||||||
Net earnings | 27,217 | (148,223) | (164,581) | ||||||||
Less: Earnings attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net earnings attributable to Valmont Industries, Inc. | $ 27,217 | $ (148,223) | $ (164,581) |
GUARANTOR_NON-GUARANTOR FINAN87
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | $ 45,333 | $ 189,318 | $ 280,460 |
Foreign currency translation adjustments: | |||
Unrealized translation gains (losses) | (96,694) | (82,275) | (71,698) |
Realized loss on sale of investment in foreign entity included in other expense | 0 | 0 | 5,194 |
Realized loss on deconsolidation of subsidiary | 8,559 | ||
Foreign currency translation adjustment | (96,694) | (82,275) | (57,945) |
Unrealized gain/(loss) on cash flow hedge: | |||
Amortization cost included in interest expense | 74 | 594 | 400 |
Realized (gain) loss included in net earnings | (3,130) | 983 | 0 |
Unrealized gain (loss) on cash flow hedge | 2,855 | 4,837 | 0 |
Derivative adjustment | (201) | 6,414 | 400 |
Actuarial gain (loss) in defined benefit pension plan | (40,274) | (13,709) | (41,282) |
Equity in other comprehensive income | 0 | 0 | 0 |
Other comprehensive income (loss) | (137,169) | (89,570) | (98,827) |
Comprehensive income (loss) | (91,836) | 99,748 | 181,633 |
Comprehensive loss (income) attributable to noncontrolling interests | (832) | (2,520) | (9,174) |
Comprehensive income (loss) attributable to Valmont Industries, Inc. | (92,668) | 97,228 | 172,459 |
Parent | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | 40,117 | 183,976 | 278,489 |
Foreign currency translation adjustments: | |||
Unrealized translation gains (losses) | 0 | 0 | 0 |
Realized loss on sale of investment in foreign entity included in other expense | 0 | ||
Realized loss on deconsolidation of subsidiary | 0 | ||
Foreign currency translation adjustment | 0 | 0 | 0 |
Unrealized gain/(loss) on cash flow hedge: | |||
Amortization cost included in interest expense | 74 | 594 | 400 |
Realized (gain) loss included in net earnings | (3,130) | 983 | |
Unrealized gain (loss) on cash flow hedge | 2,855 | 4,837 | |
Derivative adjustment | (201) | 6,414 | 400 |
Actuarial gain (loss) in defined benefit pension plan | 0 | 0 | 0 |
Equity in other comprehensive income | (132,584) | (93,162) | (106,430) |
Other comprehensive income (loss) | (132,785) | (86,748) | (106,030) |
Comprehensive income (loss) | (92,668) | 97,228 | 172,459 |
Comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Valmont Industries, Inc. | (92,668) | 97,228 | 172,459 |
Guarantors | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | (10,760) | 67,725 | 97,955 |
Foreign currency translation adjustments: | |||
Unrealized translation gains (losses) | (15,166) | (51,536) | (4,772) |
Realized loss on sale of investment in foreign entity included in other expense | 0 | ||
Realized loss on deconsolidation of subsidiary | 0 | ||
Foreign currency translation adjustment | (15,166) | (51,536) | (4,772) |
Unrealized gain/(loss) on cash flow hedge: | |||
Amortization cost included in interest expense | 0 | 0 | 0 |
Realized (gain) loss included in net earnings | 0 | 0 | |
Unrealized gain (loss) on cash flow hedge | 0 | 0 | |
Derivative adjustment | 0 | 0 | 0 |
Actuarial gain (loss) in defined benefit pension plan | 0 | 0 | 0 |
Equity in other comprehensive income | 0 | 0 | 0 |
Other comprehensive income (loss) | (15,166) | (51,536) | (4,772) |
Comprehensive income (loss) | (25,926) | 16,189 | 93,183 |
Comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Valmont Industries, Inc. | (25,926) | 16,189 | 93,183 |
Non- Guarantors | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | (11,241) | 85,840 | 68,597 |
Foreign currency translation adjustments: | |||
Unrealized translation gains (losses) | (81,528) | (30,739) | (66,926) |
Realized loss on sale of investment in foreign entity included in other expense | 5,194 | ||
Realized loss on deconsolidation of subsidiary | 8,559 | ||
Foreign currency translation adjustment | (81,528) | (30,739) | (53,173) |
Unrealized gain/(loss) on cash flow hedge: | |||
Amortization cost included in interest expense | 0 | 0 | 0 |
Realized (gain) loss included in net earnings | 0 | 0 | |
Unrealized gain (loss) on cash flow hedge | 0 | 0 | |
Derivative adjustment | 0 | 0 | 0 |
Actuarial gain (loss) in defined benefit pension plan | (40,274) | (13,709) | (41,282) |
Equity in other comprehensive income | 0 | 0 | 0 |
Other comprehensive income (loss) | (121,802) | (44,448) | (94,455) |
Comprehensive income (loss) | (133,043) | 41,392 | (25,858) |
Comprehensive loss (income) attributable to noncontrolling interests | (832) | (2,520) | (9,174) |
Comprehensive income (loss) attributable to Valmont Industries, Inc. | (133,875) | 38,872 | (35,032) |
Eliminations | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | 27,217 | (148,223) | (164,581) |
Foreign currency translation adjustments: | |||
Unrealized translation gains (losses) | 0 | 0 | 0 |
Realized loss on sale of investment in foreign entity included in other expense | 0 | ||
Realized loss on deconsolidation of subsidiary | 0 | ||
Foreign currency translation adjustment | 0 | 0 | 0 |
Unrealized gain/(loss) on cash flow hedge: | |||
Amortization cost included in interest expense | 0 | 0 | 0 |
Realized (gain) loss included in net earnings | 0 | 0 | |
Unrealized gain (loss) on cash flow hedge | 0 | 0 | |
Derivative adjustment | 0 | 0 | 0 |
Actuarial gain (loss) in defined benefit pension plan | 0 | 0 | 0 |
Equity in other comprehensive income | 132,584 | 93,162 | 106,430 |
Other comprehensive income (loss) | 132,584 | 93,162 | 106,430 |
Comprehensive income (loss) | 159,801 | (55,061) | (58,151) |
Comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Valmont Industries, Inc. | $ 159,801 | $ (55,061) | $ (58,151) |
GUARANTOR_NON-GUARANTOR FINAN88
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Details 3) - USD ($) $ in Thousands | Dec. 26, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Current assets: | |||||
Cash and cash equivalents | $ 349,074 | $ 371,579 | $ 371,579 | $ 613,706 | $ 414,129 |
Receivables, less allowance of $10,055 in 2015 and $6,672 in 2014 | 466,443 | 536,918 | |||
Inventories | 340,672 | 359,522 | |||
Prepaid expenses | 46,137 | 56,912 | |||
Refundable and deferred income taxes | 24,526 | 68,010 | |||
Total current assets | 1,226,852 | 1,392,941 | |||
Property, plant and equipment, at cost | 1,081,056 | 1,139,569 | |||
Less accumulated depreciation and amortization | 548,567 | 533,116 | |||
Net property, plant and equipment | 532,489 | 606,453 | |||
Goodwill | 336,916 | 385,111 | 349,632 | ||
Other intangible assets | 170,197 | 202,004 | |||
Investment in subsidiaries and intercompany accounts | 0 | 0 | |||
Other assets, less allowance for doubtful receivables of $10,953 in 2015 and $3,250 in 2014 | 132,974 | 143,159 | |||
Total assets | 2,399,428 | 2,729,668 | 2,776,494 | ||
Current liabilities: | |||||
Current installments of long-term debt | 1,077 | 1,181 | |||
Notes payable to banks | 976 | 13,952 | |||
Accounts payable | 179,983 | 196,565 | |||
Accrued employee compensation and benefits | 70,354 | 87,950 | |||
Accrued expenses | 105,593 | 88,480 | |||
Dividends payable | 8,571 | 9,086 | |||
Total current liabilities | (366,554) | (397,214) | |||
Deferred income taxes | 35,669 | 71,797 | |||
Long-term debt, excluding current installments | 763,964 | 766,654 | |||
Defined benefit pension liability | 179,323 | 150,124 | |||
Deferred compensation | 48,417 | 47,932 | |||
Other noncurrent liabilities | 40,290 | 45,542 | |||
Shareholders’ equity: | |||||
Common stock of $1 par value | 27,900 | 27,900 | |||
Additional paid-in capital | 0 | 0 | |||
Retained earnings | 1,729,679 | 1,718,662 | |||
Accumulated other comprehensive income (loss) | (267,218) | (134,433) | |||
Cost of treasury stock, common shares of 5,042,775 in 2015 and 3,670,781 in 2014 | (571,920) | (410,296) | |||
Total Valmont Industries, Inc. shareholders’ equity | 918,441 | 1,201,833 | |||
Noncontrolling interest in consolidated subsidiaries | 46,770 | 48,572 | |||
Total shareholders’ equity | 965,211 | 1,250,405 | 1,544,846 | 1,407,010 | |
Total liabilities and shareholders’ equity | 2,399,428 | 2,729,668 | |||
Parent | |||||
Current assets: | |||||
Cash and cash equivalents | 62,281 | 69,869 | 215,576 | 40,926 | |
Receivables, less allowance of $10,055 in 2015 and $6,672 in 2014 | 130,741 | 158,316 | |||
Inventories | 132,222 | 127,859 | |||
Prepaid expenses | 9,900 | 7,087 | |||
Refundable and deferred income taxes | 24,526 | 53,307 | |||
Total current assets | 359,670 | 416,438 | |||
Property, plant and equipment, at cost | 541,536 | 556,658 | |||
Less accumulated depreciation and amortization | 334,471 | 319,899 | |||
Net property, plant and equipment | 207,065 | 236,759 | |||
Goodwill | 20,108 | 20,108 | |||
Other intangible assets | 238 | 292 | |||
Investment in subsidiaries and intercompany accounts | 1,239,228 | 1,446,989 | |||
Other assets, less allowance for doubtful receivables of $10,953 in 2015 and $3,250 in 2014 | 47,113 | 46,587 | |||
Total assets | 1,873,422 | 2,167,173 | |||
Current liabilities: | |||||
Current installments of long-term debt | 215 | 213 | |||
Notes payable to banks | 0 | 0 | |||
Accounts payable | 66,723 | 59,893 | |||
Accrued employee compensation and benefits | 32,272 | 48,169 | |||
Accrued expenses | 31,073 | 32,616 | |||
Dividends payable | 8,571 | 9,086 | |||
Total current liabilities | (138,854) | (149,977) | |||
Deferred income taxes | 9,686 | 5,584 | |||
Long-term debt, excluding current installments | 758,811 | 759,895 | |||
Defined benefit pension liability | 0 | 0 | |||
Deferred compensation | 43,485 | 41,803 | |||
Other noncurrent liabilities | 4,145 | 8,081 | |||
Shareholders’ equity: | |||||
Common stock of $1 par value | 27,900 | 27,900 | |||
Additional paid-in capital | 0 | 0 | |||
Retained earnings | 1,729,679 | 1,718,662 | |||
Accumulated other comprehensive income (loss) | (267,218) | (134,433) | |||
Cost of treasury stock, common shares of 5,042,775 in 2015 and 3,670,781 in 2014 | (571,920) | (410,296) | |||
Total Valmont Industries, Inc. shareholders’ equity | 918,441 | 1,201,833 | |||
Noncontrolling interest in consolidated subsidiaries | 0 | 0 | |||
Total shareholders’ equity | 918,441 | 1,201,833 | |||
Total liabilities and shareholders’ equity | 1,873,422 | 2,167,173 | |||
Guarantors | |||||
Current assets: | |||||
Cash and cash equivalents | 4,008 | 2,157 | 29,797 | 6,714 | |
Receivables, less allowance of $10,055 in 2015 and $6,672 in 2014 | 66,387 | 68,414 | |||
Inventories | 38,379 | 54,914 | |||
Prepaid expenses | 766 | 502 | |||
Refundable and deferred income taxes | 0 | 6,194 | |||
Total current assets | 109,540 | 132,181 | |||
Property, plant and equipment, at cost | 132,864 | 124,182 | |||
Less accumulated depreciation and amortization | 69,956 | 65,493 | |||
Net property, plant and equipment | 62,908 | 58,689 | |||
Goodwill | 110,562 | 107,542 | |||
Other intangible assets | 40,959 | 43,644 | |||
Investment in subsidiaries and intercompany accounts | 813,779 | 825,236 | |||
Other assets, less allowance for doubtful receivables of $10,953 in 2015 and $3,250 in 2014 | 0 | 0 | |||
Total assets | 1,137,748 | 1,167,292 | |||
Current liabilities: | |||||
Current installments of long-term debt | 0 | 0 | |||
Notes payable to banks | 0 | 0 | |||
Accounts payable | 13,680 | 15,151 | |||
Accrued employee compensation and benefits | 6,347 | 5,385 | |||
Accrued expenses | 22,802 | 6,052 | |||
Dividends payable | 0 | 0 | |||
Total current liabilities | (42,829) | (26,588) | |||
Deferred income taxes | 0 | 28,988 | |||
Long-term debt, excluding current installments | 0 | 0 | |||
Defined benefit pension liability | 0 | 0 | |||
Deferred compensation | 0 | 0 | |||
Other noncurrent liabilities | 0 | 0 | |||
Shareholders’ equity: | |||||
Common stock of $1 par value | 457,950 | 457,950 | |||
Additional paid-in capital | 159,414 | 150,286 | |||
Retained earnings | 541,917 | 552,676 | |||
Accumulated other comprehensive income (loss) | (64,362) | (49,196) | |||
Cost of treasury stock, common shares of 5,042,775 in 2015 and 3,670,781 in 2014 | 0 | 0 | |||
Total Valmont Industries, Inc. shareholders’ equity | 1,094,919 | 1,111,716 | |||
Noncontrolling interest in consolidated subsidiaries | 0 | 0 | |||
Total shareholders’ equity | 1,094,919 | 1,111,716 | |||
Total liabilities and shareholders’ equity | 1,137,748 | 1,167,292 | |||
Non- Guarantors | |||||
Current assets: | |||||
Cash and cash equivalents | 282,785 | 299,553 | 368,333 | 366,489 | |
Receivables, less allowance of $10,055 in 2015 and $6,672 in 2014 | 269,315 | 310,188 | |||
Inventories | 173,064 | 177,512 | |||
Prepaid expenses | 35,471 | 49,323 | |||
Refundable and deferred income taxes | 0 | 8,509 | |||
Total current assets | 760,635 | 845,085 | |||
Property, plant and equipment, at cost | 406,656 | 458,729 | |||
Less accumulated depreciation and amortization | 144,140 | 147,724 | |||
Net property, plant and equipment | 262,516 | 311,005 | |||
Goodwill | 206,246 | 257,461 | |||
Other intangible assets | 129,000 | 158,068 | |||
Investment in subsidiaries and intercompany accounts | 939,177 | 887,055 | |||
Other assets, less allowance for doubtful receivables of $10,953 in 2015 and $3,250 in 2014 | 85,861 | 96,572 | |||
Total assets | 2,383,435 | 2,555,246 | |||
Current liabilities: | |||||
Current installments of long-term debt | 862 | 968 | |||
Notes payable to banks | 976 | 13,952 | |||
Accounts payable | 99,580 | 121,521 | |||
Accrued employee compensation and benefits | 31,735 | 34,396 | |||
Accrued expenses | 51,718 | 49,812 | |||
Dividends payable | 0 | 0 | |||
Total current liabilities | (184,871) | (220,649) | |||
Deferred income taxes | 25,983 | 37,225 | |||
Long-term debt, excluding current installments | 5,153 | 6,759 | |||
Defined benefit pension liability | 179,323 | 150,124 | |||
Deferred compensation | 4,932 | 6,129 | |||
Other noncurrent liabilities | 36,145 | 37,461 | |||
Shareholders’ equity: | |||||
Common stock of $1 par value | 648,683 | 648,682 | |||
Additional paid-in capital | 1,107,536 | 1,098,408 | |||
Retained earnings | 354,727 | 397,302 | |||
Accumulated other comprehensive income (loss) | (210,688) | (96,065) | |||
Cost of treasury stock, common shares of 5,042,775 in 2015 and 3,670,781 in 2014 | 0 | 0 | |||
Total Valmont Industries, Inc. shareholders’ equity | 1,900,258 | 2,048,327 | |||
Noncontrolling interest in consolidated subsidiaries | 46,770 | 48,572 | |||
Total shareholders’ equity | 1,947,028 | 2,096,899 | |||
Total liabilities and shareholders’ equity | 2,383,435 | 2,555,246 | |||
Eliminations | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |
Receivables, less allowance of $10,055 in 2015 and $6,672 in 2014 | 0 | 0 | |||
Inventories | (2,993) | (763) | |||
Prepaid expenses | 0 | 0 | |||
Refundable and deferred income taxes | 0 | 0 | |||
Total current assets | (2,993) | (763) | |||
Property, plant and equipment, at cost | 0 | 0 | |||
Less accumulated depreciation and amortization | 0 | 0 | |||
Net property, plant and equipment | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Other intangible assets | 0 | 0 | |||
Investment in subsidiaries and intercompany accounts | (2,992,184) | (3,159,280) | |||
Other assets, less allowance for doubtful receivables of $10,953 in 2015 and $3,250 in 2014 | 0 | 0 | |||
Total assets | (2,995,177) | (3,160,043) | |||
Current liabilities: | |||||
Current installments of long-term debt | 0 | 0 | |||
Notes payable to banks | 0 | 0 | |||
Accounts payable | 0 | 0 | |||
Accrued employee compensation and benefits | 0 | 0 | |||
Accrued expenses | 0 | 0 | |||
Dividends payable | 0 | 0 | |||
Total current liabilities | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Long-term debt, excluding current installments | 0 | 0 | |||
Defined benefit pension liability | 0 | 0 | |||
Deferred compensation | 0 | 0 | |||
Other noncurrent liabilities | 0 | 0 | |||
Shareholders’ equity: | |||||
Common stock of $1 par value | (1,106,633) | (1,106,632) | |||
Additional paid-in capital | (1,266,950) | (1,248,694) | |||
Retained earnings | (896,644) | (949,978) | |||
Accumulated other comprehensive income (loss) | 275,050 | 145,261 | |||
Cost of treasury stock, common shares of 5,042,775 in 2015 and 3,670,781 in 2014 | 0 | 0 | |||
Total Valmont Industries, Inc. shareholders’ equity | (2,995,177) | (3,160,043) | |||
Noncontrolling interest in consolidated subsidiaries | 0 | 0 | |||
Total shareholders’ equity | (2,995,177) | (3,160,043) | |||
Total liabilities and shareholders’ equity | $ (2,995,177) | $ (3,160,043) |
GUARANTOR_NON-GUARANTOR FINAN89
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Details 4) - $ / shares | Dec. 26, 2015 | Dec. 27, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
GUARANTOR_NON-GUARANTOR FINAN90
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Details 5) - USD ($) $ in Thousands | 12 Months Ended | 19 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 26, 2015 | |
Cash flows from operating activities: | ||||
Net earnings | $ 45,333 | $ 189,318 | $ 280,460 | |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 91,144 | 89,328 | 77,436 | |
Non-cash after-tax loss on deconsolidation | 0 | 0 | 12,011 | |
vmi_ImpairmentOfPropertyPlantAndEquipment | 12,161 | |||
Noncash loss on trading securities | 4,555 | 3,795 | 0 | |
Non-cash debt refinancing costs | 0 | (2,478) | 0 | |
Impairment of assets - restructuring activities | 19,836 | 12,161 | ||
Impairment of goodwill & intangibles assets | 41,970 | 0 | 0 | |
Stock-based compensation | 7,244 | 6,730 | 6,513 | |
Change in fair value of contingent consideration | 0 | (4,300) | 0 | |
Defined benefit pension plan expense | (610) | 2,638 | 6,569 | |
Contribution to defined benefit pension plan | (16,500) | (18,173) | (17,619) | |
(Gain) loss on sale of property, plant and equipment | 2,327 | 392 | (4,318) | |
Equity in earnings in nonconsolidated subsidiaries | 247 | (29) | (835) | |
Deferred income taxes | 4,858 | 5,251 | (10,141) | |
Changes in assets and liabilities (net of acquisitions): | ||||
Receivables | 50,267 | 907 | (12,708) | |
Inventories | 3,296 | 21,458 | 13,431 | |
Prepaid expenses | 10,844 | (13,594) | 4,115 | |
Accounts payable | (6,805) | (34,321) | 12,448 | |
Accrued expenses | 8,918 | (34,778) | 21,698 | |
Other noncurrent liabilities | (1,764) | 1,755 | (1,474) | |
Income taxes payable (refundable) | 7,107 | (39,803) | (3,305) | |
Net cash flows from operating activities | 272,267 | 174,096 | 396,442 | |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (45,468) | (73,023) | (106,753) | |
Proceeds from sale of assets | 3,249 | 2,489 | 37,582 | |
Acquisitions, net of cash acquired | (12,778) | (185,710) | (63,152) | |
Other, net | 6,826 | (619) | 602 | |
Net cash flows from investing activities | (48,171) | (256,863) | (131,721) | |
Cash flows from financing activities: | ||||
Net borrowings under short-term agreements | (12,853) | (4,472) | 5,510 | |
Proceeds from long-term borrowings | 68,000 | 652,211 | 274 | |
Principal payments on long-term borrowings | (69,098) | (357,858) | (591) | |
vmi_PaymentsOnDeconsolidationOfSubsidiary | 0 | 0 | (11,615) | |
Settlement of financial derivative | 0 | 4,981 | 0 | |
Dividends paid | (35,357) | (32,443) | (25,414) | |
Intercompany dividends | 0 | 0 | 0 | |
vmi_ProceedsFromRepaymentOfIntercompanyCapitalContribution | 0 | |||
vmi_ProceedsFromRepaymentOfIntercompanyInterestOnLongTermNote | 0 | 0 | ||
Increase (Decrease) in Notes Receivable, Related Parties | 0 | |||
Dividends to noncontrolling interest | (2,634) | (2,919) | (1,767) | |
Debt issuance costs | 0 | (7,644) | 0 | |
Intercompany capital contribution | 0 | 0 | (9,324) | |
Proceeds from exercises under stock plans | 13,075 | 14,572 | 16,348 | |
Excess tax benefits from stock option exercises | 1,699 | 4,264 | 5,306 | |
Purchase of treasury shares | (168,983) | (395,045) | 0 | $ (564,000) |
Purchase of common treasury shares - stock plan exercises | (13,854) | (15,403) | (16,107) | |
Net cash flows from financing activities | (220,005) | (139,756) | (37,380) | |
Effect of exchange rate changes on cash and cash equivalents | (26,596) | (19,604) | (27,764) | |
Net change in cash and cash equivalents | (22,505) | (242,127) | 199,577 | |
Cash and cash equivalents—beginning of year | 371,579 | 613,706 | 414,129 | |
Cash and cash equivalents—end of period | 349,074 | 371,579 | 613,706 | 349,074 |
Parent | ||||
Cash flows from operating activities: | ||||
Net earnings | 40,117 | 183,976 | 278,489 | |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 29,433 | 24,509 | 21,270 | |
Non-cash after-tax loss on deconsolidation | 0 | |||
vmi_ImpairmentOfPropertyPlantAndEquipment | 0 | |||
Noncash loss on trading securities | 0 | 0 | ||
Non-cash debt refinancing costs | (2,478) | |||
Impairment of assets - restructuring activities | 7,486 | |||
Impairment of goodwill & intangibles assets | 0 | |||
Stock-based compensation | 7,244 | 6,730 | 6,513 | |
Change in fair value of contingent consideration | 0 | |||
Defined benefit pension plan expense | 0 | 0 | 0 | |
Contribution to defined benefit pension plan | 0 | 0 | 0 | |
(Gain) loss on sale of property, plant and equipment | 983 | 145 | 885 | |
Equity in earnings in nonconsolidated subsidiaries | (11,842) | (129,031) | (150,512) | |
Deferred income taxes | 10,042 | (1,474) | (8,948) | |
Changes in assets and liabilities (net of acquisitions): | ||||
Receivables | 27,576 | (19,136) | 6,181 | |
Inventories | (4,364) | 5,094 | 12,966 | |
Prepaid expenses | 2,337 | (2,352) | 2,417 | |
Accounts payable | 6,831 | (2,260) | (10,458) | |
Accrued expenses | (16,485) | (21,448) | 19,191 | |
Other noncurrent liabilities | 177 | 622 | 3,201 | |
Income taxes payable (refundable) | 7,895 | (24,945) | (5,908) | |
Net cash flows from operating activities | 107,430 | 17,952 | 175,287 | |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (14,362) | (41,260) | (76,582) | |
Proceeds from sale of assets | 3,996 | 43 | 794 | |
Acquisitions, net of cash acquired | 0 | 0 | 0 | |
Other, net | 72,866 | 34,735 | 86,258 | |
Net cash flows from investing activities | 62,500 | (6,482) | 10,470 | |
Cash flows from financing activities: | ||||
Net borrowings under short-term agreements | 0 | 0 | 0 | |
Proceeds from long-term borrowings | 68,000 | 652,540 | 0 | |
Principal payments on long-term borrowings | (68,213) | (356,994) | (187) | |
vmi_PaymentsOnDeconsolidationOfSubsidiary | 0 | |||
Settlement of financial derivative | 4,981 | |||
Dividends paid | (35,357) | (32,443) | (25,414) | |
Intercompany dividends | 26,115 | 116,995 | 8,947 | |
vmi_ProceedsFromRepaymentOfIntercompanyCapitalContribution | (143,000) | |||
vmi_ProceedsFromRepaymentOfIntercompanyInterestOnLongTermNote | 0 | 0 | ||
Increase (Decrease) in Notes Receivable, Related Parties | 0 | |||
Dividends to noncontrolling interest | 0 | 0 | 0 | |
Debt issuance costs | (7,644) | |||
Intercompany capital contribution | 0 | |||
Proceeds from exercises under stock plans | 13,075 | 14,572 | 16,348 | |
Excess tax benefits from stock option exercises | 1,699 | 4,264 | 5,306 | |
Purchase of treasury shares | (168,983) | (395,045) | ||
Purchase of common treasury shares - stock plan exercises | (13,854) | (15,403) | (16,107) | |
Net cash flows from financing activities | (177,518) | (157,177) | (11,107) | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | |
Net change in cash and cash equivalents | (7,588) | (145,707) | 174,650 | |
Cash and cash equivalents—beginning of year | 69,869 | 215,576 | 40,926 | |
Cash and cash equivalents—end of period | 62,281 | 69,869 | 215,576 | 62,281 |
Guarantors | ||||
Cash flows from operating activities: | ||||
Net earnings | (10,760) | 67,725 | 97,955 | |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 12,611 | 12,926 | 12,862 | |
Non-cash after-tax loss on deconsolidation | 0 | |||
vmi_ImpairmentOfPropertyPlantAndEquipment | 0 | |||
Noncash loss on trading securities | 0 | 0 | ||
Non-cash debt refinancing costs | 0 | |||
Impairment of assets - restructuring activities | 542 | |||
Impairment of goodwill & intangibles assets | 0 | |||
Stock-based compensation | 0 | 0 | 0 | |
Change in fair value of contingent consideration | 0 | |||
Defined benefit pension plan expense | 0 | 0 | 0 | |
Contribution to defined benefit pension plan | 0 | 0 | 0 | |
(Gain) loss on sale of property, plant and equipment | 319 | 143 | 42 | |
Equity in earnings in nonconsolidated subsidiaries | 39,418 | (19,509) | (16,417) | |
Deferred income taxes | (6,224) | 1,866 | (19) | |
Changes in assets and liabilities (net of acquisitions): | ||||
Receivables | 3,547 | 40,186 | (22,259) | |
Inventories | 18,130 | 15,317 | 1,757 | |
Prepaid expenses | (172) | 429 | 98 | |
Accounts payable | (1,970) | (5,212) | (1,643) | |
Accrued expenses | 17,713 | (9,590) | 5,824 | |
Other noncurrent liabilities | 0 | 0 | 0 | |
Income taxes payable (refundable) | (306) | (19,417) | (3,251) | |
Net cash flows from operating activities | 72,848 | 84,864 | 74,949 | |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (7,718) | (2,823) | (4,439) | |
Proceeds from sale of assets | 302 | 126 | 35 | |
Acquisitions, net of cash acquired | (12,778) | 0 | 0 | |
Other, net | (50,447) | (73,799) | (83,327) | |
Net cash flows from investing activities | (70,641) | (76,496) | (87,731) | |
Cash flows from financing activities: | ||||
Net borrowings under short-term agreements | 0 | 0 | 0 | |
Proceeds from long-term borrowings | 0 | 0 | 0 | |
Principal payments on long-term borrowings | 0 | 0 | 0 | |
vmi_PaymentsOnDeconsolidationOfSubsidiary | 0 | |||
Settlement of financial derivative | 0 | |||
Dividends paid | 0 | 0 | 0 | |
Intercompany dividends | 0 | (36,600) | 20,133 | |
vmi_ProceedsFromRepaymentOfIntercompanyCapitalContribution | 0 | |||
vmi_ProceedsFromRepaymentOfIntercompanyInterestOnLongTermNote | 648 | 1,229 | ||
Increase (Decrease) in Notes Receivable, Related Parties | 22,430 | |||
Dividends to noncontrolling interest | 0 | 0 | 0 | |
Debt issuance costs | 0 | |||
Intercompany capital contribution | 0 | |||
Proceeds from exercises under stock plans | 0 | 0 | 0 | |
Excess tax benefits from stock option exercises | 0 | 0 | 0 | |
Purchase of treasury shares | 0 | 0 | ||
Purchase of common treasury shares - stock plan exercises | 0 | 0 | 0 | |
Net cash flows from financing activities | 0 | (35,952) | 43,792 | |
Effect of exchange rate changes on cash and cash equivalents | (356) | (56) | (7,927) | |
Net change in cash and cash equivalents | 1,851 | (27,640) | 23,083 | |
Cash and cash equivalents—beginning of year | 2,157 | 29,797 | 6,714 | |
Cash and cash equivalents—end of period | 4,008 | 2,157 | 29,797 | 4,008 |
Non- Guarantors | ||||
Cash flows from operating activities: | ||||
Net earnings | (11,241) | 85,840 | 68,597 | |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 49,100 | 51,893 | 43,304 | |
Non-cash after-tax loss on deconsolidation | 12,011 | |||
vmi_ImpairmentOfPropertyPlantAndEquipment | 12,161 | |||
Noncash loss on trading securities | 4,555 | 3,795 | ||
Non-cash debt refinancing costs | 0 | |||
Impairment of assets - restructuring activities | 11,808 | |||
Impairment of goodwill & intangibles assets | 41,970 | |||
Stock-based compensation | 0 | 0 | 0 | |
Change in fair value of contingent consideration | (4,300) | |||
Defined benefit pension plan expense | (610) | 2,638 | 6,569 | |
Contribution to defined benefit pension plan | (16,500) | (18,173) | (17,619) | |
(Gain) loss on sale of property, plant and equipment | 1,025 | 104 | (5,245) | |
Equity in earnings in nonconsolidated subsidiaries | 247 | (63) | (494) | |
Deferred income taxes | 1,040 | 4,859 | (1,174) | |
Changes in assets and liabilities (net of acquisitions): | ||||
Receivables | 19,144 | (20,143) | 3,370 | |
Inventories | (12,698) | 1,047 | (1,292) | |
Prepaid expenses | 8,679 | (11,671) | 1,600 | |
Accounts payable | (11,666) | (26,849) | 24,549 | |
Accrued expenses | 7,366 | (3,740) | (3,317) | |
Other noncurrent liabilities | (1,941) | 1,133 | (4,675) | |
Income taxes payable (refundable) | (482) | 4,559 | 5,029 | |
Net cash flows from operating activities | 89,796 | 70,929 | 143,374 | |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (23,388) | (28,940) | (25,732) | |
Proceeds from sale of assets | (1,049) | 2,320 | 36,753 | |
Acquisitions, net of cash acquired | 0 | (185,710) | (63,152) | |
Other, net | (13,400) | 38,796 | 503 | |
Net cash flows from investing activities | (37,837) | (173,534) | (51,628) | |
Cash flows from financing activities: | ||||
Net borrowings under short-term agreements | (12,853) | (4,472) | 5,510 | |
Proceeds from long-term borrowings | 0 | (329) | 274 | |
Principal payments on long-term borrowings | (885) | (864) | (404) | |
vmi_PaymentsOnDeconsolidationOfSubsidiary | (11,615) | |||
Settlement of financial derivative | 0 | |||
Dividends paid | 0 | 0 | 0 | |
Intercompany dividends | (26,115) | (80,395) | (29,080) | |
vmi_ProceedsFromRepaymentOfIntercompanyCapitalContribution | 143,000 | |||
vmi_ProceedsFromRepaymentOfIntercompanyInterestOnLongTermNote | (648) | (1,229) | ||
Increase (Decrease) in Notes Receivable, Related Parties | (22,430) | |||
Dividends to noncontrolling interest | (2,634) | (2,919) | (1,767) | |
Debt issuance costs | 0 | |||
Intercompany capital contribution | (9,324) | |||
Proceeds from exercises under stock plans | 0 | 0 | 0 | |
Excess tax benefits from stock option exercises | 0 | 0 | 0 | |
Purchase of treasury shares | 0 | 0 | ||
Purchase of common treasury shares - stock plan exercises | 0 | 0 | 0 | |
Net cash flows from financing activities | (42,487) | 53,373 | (70,065) | |
Effect of exchange rate changes on cash and cash equivalents | (26,240) | (19,548) | (19,837) | |
Net change in cash and cash equivalents | (16,768) | (68,780) | 1,844 | |
Cash and cash equivalents—beginning of year | 299,553 | 368,333 | 366,489 | |
Cash and cash equivalents—end of period | 282,785 | 299,553 | 368,333 | 282,785 |
Eliminations | ||||
Cash flows from operating activities: | ||||
Net earnings | 27,217 | (148,223) | (164,581) | |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 0 | 0 | 0 | |
Non-cash after-tax loss on deconsolidation | 0 | |||
vmi_ImpairmentOfPropertyPlantAndEquipment | 0 | |||
Noncash loss on trading securities | 0 | 0 | ||
Non-cash debt refinancing costs | 0 | |||
Impairment of assets - restructuring activities | 0 | |||
Impairment of goodwill & intangibles assets | 0 | |||
Stock-based compensation | 0 | 0 | 0 | |
Change in fair value of contingent consideration | 0 | |||
Defined benefit pension plan expense | 0 | 0 | 0 | |
Contribution to defined benefit pension plan | 0 | 0 | 0 | |
(Gain) loss on sale of property, plant and equipment | 0 | 0 | 0 | |
Equity in earnings in nonconsolidated subsidiaries | (27,576) | 148,574 | 166,588 | |
Deferred income taxes | 0 | 0 | 0 | |
Changes in assets and liabilities (net of acquisitions): | ||||
Receivables | 0 | 0 | 0 | |
Inventories | 2,228 | 0 | 0 | |
Prepaid expenses | 0 | 0 | 0 | |
Accounts payable | 0 | 0 | 0 | |
Accrued expenses | 324 | 0 | 0 | |
Other noncurrent liabilities | 0 | 0 | 0 | |
Income taxes payable (refundable) | 0 | 0 | 825 | |
Net cash flows from operating activities | 2,193 | 351 | 2,832 | |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | 0 | 0 | 0 | |
Proceeds from sale of assets | 0 | 0 | 0 | |
Acquisitions, net of cash acquired | 0 | 0 | 0 | |
Other, net | (2,193) | (351) | (2,832) | |
Net cash flows from investing activities | (2,193) | (351) | (2,832) | |
Cash flows from financing activities: | ||||
Net borrowings under short-term agreements | 0 | 0 | 0 | |
Proceeds from long-term borrowings | 0 | 0 | 0 | |
Principal payments on long-term borrowings | 0 | 0 | 0 | |
vmi_PaymentsOnDeconsolidationOfSubsidiary | 0 | |||
Settlement of financial derivative | 0 | |||
Dividends paid | 0 | 0 | 0 | |
Intercompany dividends | 0 | 0 | 0 | |
vmi_ProceedsFromRepaymentOfIntercompanyCapitalContribution | 0 | |||
vmi_ProceedsFromRepaymentOfIntercompanyInterestOnLongTermNote | 0 | 0 | ||
Increase (Decrease) in Notes Receivable, Related Parties | 0 | |||
Dividends to noncontrolling interest | 0 | 0 | 0 | |
Debt issuance costs | 0 | |||
Intercompany capital contribution | 0 | |||
Proceeds from exercises under stock plans | 0 | 0 | 0 | |
Excess tax benefits from stock option exercises | 0 | 0 | 0 | |
Purchase of treasury shares | 0 | 0 | ||
Purchase of common treasury shares - stock plan exercises | 0 | 0 | 0 | |
Net cash flows from financing activities | 0 | 0 | 0 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | |
Net change in cash and cash equivalents | 0 | 0 | 0 | |
Cash and cash equivalents—beginning of year | 0 | 0 | 0 | |
Cash and cash equivalents—end of period | $ 0 | $ 0 | $ 0 | $ 0 |
QUARTERLY FINANCIAL DATA (Una91
QUARTERLY FINANCIAL DATA (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2013 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Net sales | $ 633,828 | $ 632,575 | $ 682,123 | $ 670,398 | $ 763,136 | $ 765,668 | $ 842,599 | $ 751,740 | $ 2,618,924 | $ 3,123,143 | $ 3,304,211 | |
Gross profit | 129,280 | 156,751 | 169,548 | 165,454 | 181,158 | 199,500 | 220,477 | 206,982 | 621,033 | 808,117 | 945,228 | |
Net Earnings, Amount | $ (30,561) | $ 12,066 | $ 27,873 | $ 30,739 | $ 40,461 | $ 23,559 | $ 63,976 | $ 55,980 | $ 40,117 | $ 183,976 | $ 278,489 | |
Net Earnings, Per Share, Basic (in dollars per share) | $ (1.34) | $ 0.52 | $ 1.19 | $ 1.29 | $ 1.67 | $ 0.93 | $ 2.40 | $ 2.10 | $ 1.72 | $ 7.15 | $ 10.45 | |
Net Earnings, Per Share, Diluted (in dollars per share) | (1.34) | 0.52 | 1.19 | 1.28 | 1.66 | 0.92 | 2.38 | 2.08 | 1.71 | 7.09 | 10.35 | |
Stock Price, High (in dollars per share) | 117.94 | 121.23 | 128.26 | 130.26 | 139.31 | 155.62 | 163.23 | 155.64 | 130.26 | 163.23 | ||
Stock Price, Low (in dollars per share) | 93.99 | 97.44 | 118.09 | 117.56 | 123.44 | 131.68 | 143.02 | 141.74 | 93.99 | 123.44 | ||
Dividends Declared (in dollars per share) | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.250 | $ 1.500 | $ 1.375 | $ 0.975 | |
Quarterly Financial Data | ||||||||||||
Restructuring and related cost, expected cost remaining | $ 11,500 | $ 6,300 | $ 11,500 | |||||||||
Restructuring expenses (in dollars per share) | $ 0.58 | |||||||||||
Impairment of goodwill and intangible assets | $ 13,400 | $ 41,970 | $ 0 | $ 0 | ||||||||
Impairment of goodwill and intangible assets (in dollars per share | $ 1.16 | $ 0.58 | $ 1.72 | |||||||||
Goodwill impairment | $ 7,100 | $ 34,892 | ||||||||||
Impairment of intangible assets | 19,600 | |||||||||||
Increase (decrease) in product warranty reserve | $ 11,500 | |||||||||||
Increase (decrease) in product warranty reserve (in dollars per share) | $ 0.50 | |||||||||||
Increase (decrease) in allowance for bad debt | $ 4,800 | |||||||||||
Increase (decrease) in allowance for bad debt (in dollars per share) | $ 0.21 | |||||||||||
Foreign corporate income tax rate | 18.00% | 20.00% | ||||||||||
Increase (decrease) in income taxes | $ 7,100 | |||||||||||
Increase (decrease) in income taxes (in dollars per share) | $ 0.31 | |||||||||||
Refinancing of long-term debt | $ 24,200 | $ 24,200 | ||||||||||
Refinancing of long-term debt (in dollars per share) | $ 0.95 | $ 0.93 | ||||||||||
Delta EMD, Ltd. | ||||||||||||
Quarterly Financial Data | ||||||||||||
Fair market value gain (loss) on remaining investment | $ 3,452 | $ (1,400) | $ (3,800) | |||||||||
Fair market value gain (loss) on remaining investment (in dollars per share) | $ 0.05 | |||||||||||
Broad Restructuring Plan | ||||||||||||
Quarterly Financial Data | ||||||||||||
Restructuring and related cost, expected cost remaining | $ 39,852 | $ 9,800 | $ 39,852 | |||||||||
Restructuring expenses (in dollars per share) | $ 0.50 | $ 0.27 | $ 0.42 |
Schedule II-Valuation and Qua92
Schedule II-Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Movement in Valuation and Qualifying Accounts | ||||
Balance at beginning of period | $ 10,369 | |||
Balance at close of period | $ 10,369 | $ 10,369 | ||
Allowance for doubtful receivables | ||||
Movement in Valuation and Qualifying Accounts | ||||
Balance at beginning of period | $ 9,922 | 10,369 | 7,898 | |
Charged to profit and loss | 4,674 | 12,420 | 1,780 | |
Deductions from reserves | 1,334 | 2,227 | 2,203 | |
Balance at close of period | 10,369 | 21,008 | 9,922 | 10,369 |
Allowance for deferred income tax asset valuation | ||||
Movement in Valuation and Qualifying Accounts | ||||
Balance at beginning of period | 104,487 | 107,767 | 120,979 | |
Charged to profit and loss | (13,650) | (3,280) | (13,212) | |
Deductions from reserves | 0 | 0 | ||
Balance at close of period | $ 107,767 | $ 90,837 | $ 104,487 | $ 107,767 |