Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Oct. 23, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | VALMONT INDUSTRIES INC | |
Entity Central Index Key | 102,729 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,552,073 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Income Statement [Abstract] | ||
Product sales | $ 620,486 | $ 572,952 |
Services sales | 78,198 | 64,521 |
Net sales | 698,684 | 637,473 |
Product cost of sales | 476,264 | 426,847 |
Services cost of sales | 53,180 | 46,021 |
Total cost of sales | 529,444 | 472,868 |
Gross profit | 169,240 | 164,605 |
Selling, general and administrative expenses | 105,280 | 99,949 |
Operating income | 63,960 | 64,656 |
Other income (expenses): | ||
Interest expense | (11,074) | (11,304) |
Interest income | 1,267 | 927 |
Other | (1,141) | 1,045 |
Total other income (expenses) | (10,948) | (9,332) |
Earnings before income taxes | 53,012 | 55,324 |
Income tax expense: | ||
Current | 7,713 | 1,298 |
Deferred | 4,819 | 14,065 |
Total income tax expense (benefit) | 12,532 | 15,363 |
Earnings before equity in earnings of nonconsolidated subsidiaries | 40,480 | 39,961 |
Equity in earnings of nonconsolidated subsidiaries | 0 | 0 |
Net earnings | 40,480 | 39,961 |
Less: Earnings attributable to noncontrolling interests | (1,199) | (982) |
Net earnings attributable to Valmont Industries, Inc. | $ 39,281 | $ 38,979 |
Earnings per share: | ||
Basic (in dollars per share) | $ 1.74 | $ 1.73 |
Diluted (in dollars per share) | 1.72 | 1.72 |
Cash dividends declared per share (in dollars per share) | $ 0.375 | $ 0.375 |
Weighted average number of shares of common stock outstanding - Basic (in shares) | 22,609 | 22,472 |
Weighted average number of shares of common stock outstanding - Diluted (in shares) | 22,796 | 22,660 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Derivatives used in Net Investment Hedge, Increase (Decrease), Gross of Tax | $ 3 | $ 5,123 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 479,663 | $ 492,805 |
Receivables, net | 467,010 | 503,677 |
Inventories | 370,005 | 420,948 |
Prepaid expenses and other assets | 127,251 | 43,643 |
Assets Held-for-sale, Not Part of Disposal Group, Current, Other | 72,665 | 0 |
Refundable income taxes | 6,749 | 11,492 |
Total current assets | 1,523,343 | 1,472,565 |
Property, plant and equipment, at cost | 1,137,152 | 1,165,687 |
Less accumulated depreciation and amortization | 633,440 | 646,759 |
Net property, plant and equipment | 503,712 | 518,928 |
Goodwill | 327,874 | 337,720 |
Other intangible assets, net | 129,540 | 138,599 |
Other assets | 133,595 | 134,438 |
Total assets | 2,618,064 | 2,602,250 |
Current liabilities: | ||
Current installments of long-term debt | 951 | 966 |
Notes payable to banks | 377 | 161 |
Accounts payable | 190,902 | 227,906 |
Accrued employee compensation and benefits | 67,928 | 84,426 |
Accrued expenses | 92,651 | 81,029 |
Disposal Group, Including Discontinued Operation, Liabilities, Current | 12,960 | 0 |
Liabilities held for sale | 8,493 | 8,510 |
Dividends Payable, Current | 8,493 | 8,510 |
Total current liabilities | 374,262 | 402,998 |
Deferred income taxes | 39,669 | 34,906 |
Long-term debt, excluding current installments | 753,647 | 753,888 |
Defined benefit pension liability | 195,490 | 189,552 |
Deferred compensation | 48,597 | 48,526 |
Other noncurrent liabilities | 21,043 | 20,585 |
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 | 1,996,474 | 1,954,344 |
Accumulated other comprehensive loss | (276,629) | (279,022) |
Treasury stock | (602,504) | (590,386) |
Total Valmont Industries, Inc. shareholders’ equity | 1,145,241 | 1,112,836 |
Noncontrolling interest in consolidated subsidiaries | 40,115 | 38,959 |
Total shareholders’ equity | 1,185,356 | 1,151,795 |
Total liabilities and shareholders’ equity | $ 2,618,064 | $ 2,602,250 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
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 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Cash flows from operating activities: | ||
Net earnings | $ 40,480 | $ 39,961 |
Adjustments to reconcile net earnings to net cash flows from operations: | ||
Depreciation and amortization | 21,178 | 20,827 |
Noncash loss on trading securities | 71 | 70 |
Stock-based compensation | 2,775 | 2,494 |
Defined benefit pension plan expense | (594) | 154 |
Contribution to defined benefit pension plan | (731) | (25,379) |
(Gain)/loss on sale of property, plant and equipment | (280) | (102) |
Equity in earnings of nonconsolidated subsidiaries | 0 | 0 |
Deferred income taxes | 4,819 | 14,065 |
Changes in assets and liabilities: | ||
Receivables | 29,794 | (12,729) |
Inventories | (1,201) | (34,817) |
Prepaid expenses and other assets | (32,025) | (9,798) |
Accounts payable | (29,449) | 14,124 |
Accrued expenses | (6,407) | 14,020 |
Other noncurrent liabilities | 440 | 612 |
Income taxes refundable | 3,033 | (87) |
Net cash flows from operating activities | 33,048 | 23,415 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (16,248) | (14,168) |
Proceeds from sale of assets | 714 | 302 |
Payments to Acquire Businesses, Net of Cash Acquired | (4,800) | 0 |
Loss from settlement of net investment hedge | (863) | 0 |
Other, net | (1,782) | (1,715) |
Net cash flows from investing activities | (22,979) | (15,581) |
Cash flows from financing activities: | ||
Borrowings under short-term agreements | 219 | 198 |
Principal payments on long-term borrowings | (249) | (215) |
Dividends paid | (8,510) | (8,445) |
Dividends to noncontrolling interest | (1,281) | (422) |
Purchase of noncontrolling interest | (5,510) | 0 |
Purchase of treasury shares | (14,790) | 0 |
Proceeds from exercises under stock plans | 2,972 | 8,894 |
Purchase of common treasury shares—stock plan exercises | (1,504) | (2,870) |
Net cash flows from financing activities | (28,653) | (2,860) |
Effect of exchange rate changes on cash and cash equivalents | 5,442 | 7,726 |
Net change in cash and cash equivalents | (13,142) | 12,700 |
Cash, cash equivalents, and restricted cash—beginning of year | 492,805 | 412,516 |
Cash, cash equivalents, and restricted cash—end of period | 479,663 | 425,216 |
Restructuring Costs | $ 1,145 | $ 0 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Noncontrolling interest in consolidated subsidiaries |
Beginning balance at Dec. 31, 2016 | $ 982,586 | $ 27,900 | $ 0 | $ 1,874,722 | $ (346,359) | $ (612,781) | $ 39,104 |
Increase (Decrease) in Shareholders' Equity | |||||||
Net earnings | 39,961 | 38,979 | 982 | ||||
Other comprehensive income (loss) | 18,883 | 20,106 | (1,223) | ||||
Cash dividends declared | (8,468) | (8,468) | 0 | ||||
Dividends to noncontrolling interests | (422) | (422) | |||||
Stock plan exercises | (2,870) | (2,870) | |||||
Stock options exercised | 8,894 | (2,494) | 928 | 10,460 | |||
Stock option expense | 1,289 | 1,289 | |||||
Stock awards | 1,427 | 1,205 | 222 | ||||
Ending balance at Apr. 01, 2017 | 1,041,280 | 27,900 | 0 | 1,906,161 | (326,253) | (604,969) | 38,441 |
Increase (Decrease) in Shareholders' Equity | |||||||
Cumulative impact of ASC 606 adoption | 9,771 | 9,771 | |||||
Beginning balance at Dec. 30, 2017 | 1,151,795 | 27,900 | 0 | 1,954,344 | (279,022) | (590,386) | 38,959 |
Increase (Decrease) in Shareholders' Equity | |||||||
Net earnings | 40,480 | 39,281 | 1,199 | ||||
Other comprehensive income (loss) | 5,941 | 2,393 | 3,548 | ||||
Cash dividends declared | (8,493) | (8,493) | 0 | ||||
Dividends to noncontrolling interests | (1,281) | (1,281) | |||||
Purchase of noncontrolling interests | 5,510 | 0 | 5,510 | ||||
Addition of noncontrolling interest | 3,200 | 3,200 | |||||
Purchase of treasury shares | (14,790) | (14,790) | |||||
Stock plan exercises | (1,504) | (1,504) | |||||
Stock options exercised | 2,972 | (2,545) | 1,571 | 3,946 | |||
Stock option expense | 1,090 | 1,090 | |||||
Stock awards | 1,685 | 1,455 | 230 | ||||
Ending balance at Mar. 31, 2018 | $ 1,185,356 | $ 27,900 | $ 0 | $ 1,996,474 | $ (276,629) | $ (602,504) | $ 40,115 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Purchase of treasury shares, shares acquired (in shares) | 384,622 | 245,789 |
Stock plan exercises; shares acquired (in shares) | 19,086 | 10,747 |
Stock options exercised; shares issued (in shares) | 84,432 | 62,535 |
Stock awards; shares issued (in shares) | 5,677 | 6,976 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Condensed Consolidated Financial Statements The Condensed Consolidated Balance Sheet as of March 31, 2018 , the Condensed Consolidated Statements of Earnings and Comprehensive Income for the thirteen weeks ended March 31, 2018 and April 1, 2017 , and the Condensed Consolidated Statements of Cash Flows and Shareholders' Equity for the thirteen week periods then ended have been prepared by the Company, without audit. In the opinion of management, all necessary adjustments (which include normal recurring adjustments) have been made to present fairly the financial statements as of March 31, 2018 and for all periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These Condensed Consolidated Financial Statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2017 . The accounting policies and methods of computation followed in these interim financial statements are the same as those followed in the financial statements for the year ended December 30, 2017 with the exception of the revenue recognition accounting policy which changed from adopting ASU 2014-09 and is discussed later within this footnote. The results of operations for the period ended March 31, 2018 are not necessarily indicative of the operating results for the full year. Inventories Approximately 37% and 37% of inventory is valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market as of March 31, 2018 and December 30, 2017 . 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 $44,808 and $43,727 at March 31, 2018 and December 30, 2017 , respectively. Inventories consisted of the following: March 31, December 30, Raw materials and purchased parts $ 176,554 $ 183,029 Work-in-process 20,197 30,671 Finished goods and manufactured goods 218,062 250,975 Subtotal 414,813 464,675 Less: LIFO reserve 44,808 43,727 $ 370,005 $ 420,948 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Income Taxes Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries for the thirteen weeks ended March 31, 2018 and April 1, 2017 , were as follows: Thirteen Weeks Ended 2018 2017 United States $ 41,765 $ 35,424 Foreign 11,247 19,900 $ 53,012 $ 55,324 The Company estimated and recognized provisional amounts at December 30, 2017 for the following aspect of the 2017 Tax Act: • Deemed Repatriation transition tax : The Deemed Repatriation transition tax (“Transition Tax”) is a tax on unremitted foreign earnings of certain foreign subsidiaries, which subjected the Company's unremitted foreign earnings of approximately $400,000 to tax at certain specified rates less associated foreign tax credits. The Company recorded a provisional Transition Tax obligation of $9,890 . • Indefinite reinvestment assertion : The Company's position is that unremitted foreign earnings subject to the Transition Tax are not indefinitely reinvested. The Company recorded a provisional amount of the deferred income taxes for foreign withholding taxes and U.S. state income taxes of $10,373 and $1,300 , respectively. The Company also continues to gather additional information to determine its permanently reinvested position with respect to future foreign earnings. • No adjustments to these 2017 Tax Act amounts were recognized during the first quarter of 2018. However, the Company may adjust these provisional amounts in future quarters of 2018 after assessing additional implementation guidance as it becomes available. Pension Benefits The Company incurs expenses in connection with the Delta Pension Plan ("DPP"). The DPP was acquired as part of the Delta plc acquisition in fiscal 2010 and has no members that are active employees. 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. The components of the net periodic pension (benefit) expense for the thirteen weeks ended March 31, 2018 and April 1, 2017 were as follows: Thirteen Weeks Ended Net periodic (benefit) expense: 2018 2017 Interest cost $ 4,716 $ 4,321 Expected return on plan assets (6,114 ) (4,877 ) Amortization of actuarial loss 804 710 Net periodic expense (benefit) $ (594 ) $ 154 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Stock Plans The Company maintains stock‑based compensation plans approved by the shareholders, which provide that the Human Resource 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 March 31, 2018 , 550,606 shares of common stock remained available for issuance under the plans. Under the plans, the exercise price of each option equals the closing market price at the date of the grant. Options vest beginning on the first anniversary of the grant in equal amounts over three to six years or on the grant's fifth anniversary. Expiration of grants is from seven to ten years from the date of grant. The Company's compensation expense (included in selling, general and administrative expenses) and associated income tax benefits related to stock options for the thirteen weeks ended March 31, 2018 and April 1, 2017 , respectively, were as follows: Thirteen Weeks Ended 2018 2017 Compensation expense $ 1,090 $ 1,289 Income tax benefits 273 496 Fair Value The Company applies the provisions of Accounting Standards Codification 820, Fair Value Measurements (“ASC 820”) which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The provisions of ASC 820 apply to other accounting pronouncements that require or permit fair value measurements. As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes 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. Inputs refer 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 $39,118 ( $39,091 at December 30, 2017) represent mutual funds, invested in debt and equity securities, classified as trading securities in accordance with Accounting Standards Codification 320, Accounting for Certain Investments in Debt and Equity Securities , considering the employee's ability to change investment allocation of their deferred compensation at any time. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The Company's ownership of shares in Delta EMD Pty. Ltd. (JSE:DTA) is also classified as trading securities. The shares are valued at $1,954 and $1,951 as of March 31, 2018 and December 30, 2017, respectively, which is the estimated fair value. Quoted market prices are available for these securities in an active market and therefore categorized as a Level 1 input. Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 41,072 $ 41,072 $ — $ — Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 41,042 $ 41,042 $ — $ — Comprehensive Income Comprehensive income includes net earnings, 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. Accumulated other comprehensive income (loss) consisted of the following at March 31, 2018 and December 30, 2017: Foreign Currency Translation Adjustments Gain/(Loss) on Hedging Activities Defined Benefit Pension Plan Accumulated Other Comprehensive Loss Balance at December 30, 2017 $ (171,399 ) $ 6,357 $ (113,980 ) $ (279,022 ) Current-period comprehensive income (loss) 3,256 (863 ) — 2,393 Balance at March 31, 2018 $ (168,143 ) $ 5,494 $ (113,980 ) $ (276,629 ) Revenue Recognition On December 31, 2017, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) . The Company elected to use the modified retrospective approach for the adoption of the new revenue standard. The cumulative effect of initially applying the new revenue standard was recorded as an adjustment to the opening balance of retained earnings, which impacted the Condensed Consolidated Balance Sheet as follows: (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Balance Sheet December 30, ASC 606 Adjustments December 31, Assets Inventories $ 420,948 $ (36,243 ) $ 384,705 Prepaid expenses and other current assets 43,643 51,507 95,150 Liabilities and shareholders' equity Accrued expenses 81,029 2,043 83,072 Deferred income taxes 34,906 3,450 38,356 Retained earnings 1,954,344 9,771 1,964,115 The adoption of ASC 606 had the following impact on the Consolidated Balance Sheets and Consolidated Statements of Earnings for the thirteen weeks ended March 31, 2018: Balance Sheet As Reported Balance Excluding ASC 606 Effects Change Assets Inventories $ 370,005 $ 425,956 $ (55,951 ) Prepaid expenses and other current assets 127,251 48,767 78,484 Liabilities and shareholders' equity Accrued expenses 92,651 87,626 5,025 Deferred income taxes 39,669 35,539 4,130 Retained earnings 1,996,474 1,983,096 13,378 Statement of Earnings Net Sales $ 698,684 $ 670,874 $ 27,810 Operating Income 63,960 58,886 5,074 The Company determines the appropriate revenue recognition for our contracts by analyzing the type, terms and conditions of each contract or arrangement with a customer. Contracts with customers for all businesses are fixed-price with sales tax excluded from revenue, and do not include variable consideration. Discounts included in contracts with customers, typically early pay discounts, are recorded as a reduction of net sales in the period in which the sale is recognized. Contract revenues are classified as product when the performance obligation is related to the manufacturing of goods. Contract revenues are classified as service when the performance obligation is the performance of a service. Service revenue is primarily related to the Coatings segment. Customer acceptance provisions exist only in the design stage of our products and acceptance of the design by the customer is required before the project is manufactured and delivered to the customer. The Company is not entitled to any compensation solely based on design of the product and does not recognize revenue associated with the design stage. There is one performance obligation for revenue recognition. No general rights of return exist for customers once the product has been delivered and the Company establishes provisions for estimated warranties. The Company does not sell extended warranties for any of its products. Shipping and handling costs associated with sales are recorded as cost of goods sold. The Company elected to use the practical expedient of treating freight as a fulfillment obligation instead of a separate performance obligation and ratably recognize freight expense as the structure is being manufactured, when the revenue from the associated customer contract is being recognized over time. With the exception of the Utility segment and the wireless communication structures product (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) line, the Company’s inventory is interchangeable for a variety of each segment’s customers. The Company elected the practical expedient to not disclose the partially satisfied performance obligation at the end of the period when the contract has an original expected duration of one year or less. In addition, the Company elected the practical expedient to not adjust the amount of consideration to be received in a contract for any significant financing component if payment is expected within twelve months of transfer of control of goods or services; the Company expects all consideration to be received in one year or less at contract inception. Segment and Product Line Revenue Recognition The global Utility segment revenues are derived from manufactured steel and concrete structures for the North America utility industry and offshore and other complex structures used in energy generation and distribution outside of the United States. Steel and concrete utility structures are engineered to customer specifications resulting in limited ability to sell the structure to a different customer if an order is canceled after production commences. The continuous transfer of control to the customer is evidenced either by contractual termination clauses or by our rights to payment for work performed to-date plus a reasonable profit as the products do not have an alternative use to the Company. Since control is transferring over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment. For our steel and concrete utility and wireless communication structure product lines, we generally recognize revenue on an inputs basis, using total production hours incurred to-date for each order as a percentage of total hours estimated to produce the order. The completion percentage is applied to the order’s total revenue and total estimated costs to determine reported revenue, cost of goods sold and gross profit. Production of an order, once started, is typically completed within three months. Revenue from the offshore and other complex structures business is also recognized using an inputs method, based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. External sales agents are used in certain sales of steel and concrete structures; the Company has chosen to use the practical expedient to expense estimated commissions owed to third parties by recognizing them proportionately as the goods are manufactured. The global ESS segment revenues are derived from the manufacture and distribution of engineered metal, composite structures and components for lighting and traffic and roadway safety, engineered access systems, and wireless communication. For the lighting and traffic and roadway safety product lines, revenue is recognized upon shipment or delivery of goods to the customer depending on contract terms, which is the same point in time that the customer is billed. For Access Systems, revenue is generally recognized upon delivery of goods to the customer which is the same point in time that the customer is billed. The wireless communication product line has large regional customers who have unique product specifications for communication structures. When the customer contract includes a cancellation clause that would require them to pay for work completed plus a reasonable margin if an order was canceled, revenue is recognized over time based on hours worked as a percent of total estimated hours to complete production. For the remaining wireless communication product line customers which do not provide a contractual right to bill for work completed on a canceled order, revenue is recognized upon shipment or delivery of the goods to the customer which is the same point in time that the customer is billed. The global Coatings segment revenues are derived by providing coating services to customers’ products, which include galvanizing, anodizing, and powder coating. Revenue is recognized once the coating service has been performed and the goods are ready to be picked up or delivered to the customer which is the same time that the customer is billed. The global Irrigation segment revenues are derived from the manufacture of agricultural irrigation equipment and related parts and services for the agricultural industry and tubular products for industrial customers. Revenue recognition for the irrigation segment is generally upon shipment of the goods to the customer which is the same point in time that the customer is billed. The remote monitoring subscription services are primarily billed annually and revenue is recognized on a straight-line basis over the subsequent twelve months. Disaggregation of revenue by product line is disclosed in the Segment footnote. A breakdown by segment of revenue recognized over time and revenue recognized at a point in time for the thirteen weeks ended March 31, 2018 is as follows: (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Point in Time Over Time March 31, 2018 March 31, 2018 Utility Support Structures $ — $ 209,859 Engineered Support Structures 207,194 8,722 Coatings 68,458 — Irrigation 183,234 2,818 Other 18,399 — Total $ 477,285 $ 221,399 The Company's contract asset as of March 31, 2018 is $95,209 . This amount is included within prepaid expenses and other assets line item within current assets. The contract assets attributable to the cumulative effect from the adoption of the new revenue recognition guidance was $51,507 ; the contract asset at December 30, 2017, attributable to the offshore and other complex structures product line, was $16,165 . Both steel and concrete utility customers are generally invoiced upon shipment or delivery of the goods to the customer's specified location and there are normally no up-front or progress payments. The offshore and complex steel structures business invoices customers a number of ways including advanced billings, progress billings, and billings upon shipment. At March 31, 2018 and December 30, 2017, the contract liability for revenue recognized over time was $6,301 and $7,368 . The contract liability is included in Accrued Expenses on the Condensed Consolidated Balance Sheets. During the quarter ended March 31, 2018, the Company recognized $2,824 of revenue that was included in the liability as of December 30, 2017. The revenue recognized was due to applying advance payments received for projects completed during the quarter. Hedging Activities In the second quarter of 2016, the Company entered into a one-year foreign currency forward contract which qualified as a net investment hedge, in order to mitigate foreign currency risk on a portion of our investments denominated in British pounds. The forward contract had a notional amount to sell British pounds and receive $44,000 , and matured in May 2017. The realized gain of $5,123 ( $3,150 after tax) has been deferred in other comprehensive income where it will remain until the Company's net investments in its British subsidiaries are divested. No ineffectiveness resulted from the hedge prior to its maturity. In the third quarter of 2017, the Company entered into two six-month foreign currency forward contracts which qualified as net investment hedges, in order to mitigate foreign currency risk on our grinding media business that is denominated in both Australian dollars and British pounds. The Company announced its intention to divest of this business in August 2017 and regulatory approval in Australia was received at the end of March 2018. The forward contracts had a maturity date of January 2018 and a notional amount to sell British pounds and Australian dollars to receive $24,059 and $21,222 , respectively. The two forward contracts matured at the end of January 2018 with a combined loss of $2,671 . As regulatory approval was still pending at maturity of the contracts, the Company chose to extend the Australian dollar contract through April 2018 which is the planned date of divestiture. The gain recorded on the contract extended through April at March 31, 2018 is $792 . No ineffectiveness has resulted from the hedge and the balance is recorded in the Consolidated Statement of Other Comprehensive Income within gain/(loss) on hedging activities. The gain/(loss) will be deferred in Other Comprehensive Income where it will remain until the grinding media business is divested in the second quarter of 2018. In the first quarter of 2018, the Company entered into a steel hot rolled coil forward contract which qualified as a cash flow hedge of the variability in the cash flows attributable to future steel purchases. The forward contract has a notional amount of $7,142 for the hedge of 1,500 short tons for each month from July 2018 to December 2018. The unrealized loss at March 31, 2018 is $93 and is included in Accounts Payable on the Condensed Consolidated Balance Sheets. The balance is recorded in the Consolidated Statement of Other Comprehensive Income within gain/(loss) on hedging activities. The gain/(loss) will be recognized in the income statement when the hedged inventory is used in customer orders. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-9, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification ("ASC") 605, Revenue Recognition . Effective December 31, 2017, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). The Company elected the modified retrospective approach for the adoption of the new revenue standard, resulting in a credit to retained earnings being recognized for $9,771 . The Company calculated the cumulative effect on revenue of approximately $51,507 with $13,121 of pre-tax operating income; these were customer orders for the steel utility, concrete utility, and wireless communication structures product lines at various stages of production at December 30, 2017. In March 2017, the FASB issued ASU 2017-07, Presentation of Net Periodic Benefit Cost Related to Defined Benefit Plans, which amends the income statement presentation requirements for the components of net periodic benefit cost for an entity's defined benefit pension and post-retirement plans. The Company adopted this ASU in the first quarter of 2018, recognizing the DPP net periodic pension expense within Other income (expense). The Company also reclassified $154 of DPP net periodic pension expense for first quarter 2017 out of selling, general, and administrative expense and into Other (expense). In December 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires amounts generally described as restricted cash and restricted cash equivalents to be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The Company adopted the ASU in the first quarter of 2018, recasting the beginning-of-period and end-of-period total cash and cash equivalent amounts on the statement of cash flows to include the £10,000 restricted cash account for the pension plan at December 31, 2016, thus reducing cash flows from operating activities by $12,568 for the first quarter of 2017. The Company did not have any restricted cash at March 31, 2018 or December 30, 2017. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS On January 26, 2018, the Company acquired 60% of the assets of Torrent Engineering and Equipment ("Torrent") for $4,800 in cash. Torrent operates in Indiana and is an integrator of prefabricated pump stations that involves designing high pressure water and compressed air process systems. Torrent has annual sales of approximately $9,000 . In the preliminary purchase price allocation, goodwill of $3,922 and $4,020 of customer relationships and other intangible assets were recorded. A portion of the goodwill is deductible for tax purposes. Torrent is included in the Irrigation segment and was acquired to expand the Company's water management capabilities. The Company expects to finalize the purchase price allocation in the second quarter of 2018. On July 31, 2017, the Company purchased Aircon Guardrails Private Limited ("Aircon") for $5,362 in cash, net of cash acquired, plus assumed liabilities. Aircon produces highway safety systems including guardrails, structural metal products, and solar structural products in India with annual sales of approximately $10,000 . In the purchase price allocation, goodwill of $3,327 and $2,109 of customer relationships and other intangible assets were recorded. Goodwill is not deductible for tax purposes. This business is included in the Engineered Support Structures segment and was acquired to expand the Company's geographic presence in the Asia-Pacific region. The purchase price allocation was finalized in the fourth quarter of 2017. Proforma disclosures were omitted as this business does not have a significant impact on the Company's financial results. Acquisitions of Noncontrolling Interests In March 2018, the Company acquired the remaining 10% of Valmont Industria e Commercio Ltda. that it did not own for $5,510 . As this transaction was for the acquisition of all of the remaining shares of consolidated subsidiaries with no change in control, they were recorded within shareholders' equity and as a financing cash flow in the Consolidated Statements of Cash Flows. |
ASSETS AND LIABILITIES HELD FOR
ASSETS AND LIABILITIES HELD FOR SALE | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
ASSETS AND LIABILITIES HELD FOR SALE | ASSETS AND LIABILITIES HELD FOR SALE During the first quarter of 2018, the Company received regulatory approval to sell Donhad, its grinding media business in Australia, which is reported in the Other segment. The grinding media business had pre-tax income/(loss) of ($579) and $2,086 for the thirteen weeks ended March 31, 2018 and April 1, 2017, respectively. The business is being sold because it does not fit the long-term strategic plans for the Company. The Company expects the sale to close during the second quarter of 2018. The expected proceeds from the sale are greater than its carrying value as of March 31, 2018. The grinding media business historical annual sales, operating profit, and net assets did not meet the quantitative thresholds for discontinued operations presentation. The carrying value of the assets and liabilities are separately presented within the captions "Assets held for sale" and "Liabilities held for sale" in the Condensed Consolidated Balance Sheet. The assets and liabilities of the grinding media business as of March 31, 2018 are as follows: Receivables, net $ 9,978 Inventories 16,155 Net property, plant, and equipment 14,013 Goodwill and intangible assets 27,607 Other assets 4,912 Total assets $ 72,665 Accounts payable $ 9,201 Accrued expenses 1,536 Deferred income taxes 2,223 Total liabilities $ 12,960 Net assets 59,705 |
RESTRUCTURING ACTIVITIES
RESTRUCTURING ACTIVITIES | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING ACTIVITIES | RESTRUCTURING ACTIVITIES In February 2018, the Company decided upon certain regional restructuring activities (the "2018 Plan") of approximately $10,000 , primarily in the ESS segment. The Company expects to incur $7,500 of pre-tax restructuring expenses in cost of sales and $2,500 of pre-tax restructuring expense in SG&A in 2018. Within the $10,000 are expected pre-tax asset impairments of approximately $2,000 . The following pre-tax expense were recognized during the first quarter of 2018: ESS Utility Total Severance $ 423 $ — $ 423 Other cash restructuring expenses — 772 772 Asset impairments/net loss on disposals 1,145 — 1,145 Total cost of sales 1,568 772 2,340 Severance 1,978 — 1,978 Other cash restructuring expenses 82 — 82 Total selling, general and administrative expenses 2,060 — 2,060 Consolidated total $ 3,628 $ 772 $ 4,400 Liabilities recorded for the restructuring plans and changes therein for the first quarter of fiscal 2018 were as follows: Balance at December 30, 2017 Recognized Restructuring Expense Costs Paid or Otherwise Settled Balance at March 31, 2018 Severance $ — $ 2,401 $ (2,251 ) $ 150 Other cash restructuring expenses 1,216 772 (1,988 ) — Total $ 1,216 $ 3,173 $ (4,239 ) $ 150 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Amortized Intangible Assets The components of amortized intangible assets at March 31, 2018 and December 30, 2017 were as follows: March 31, 2018 Gross Accumulated Weighted Customer Relationships $ 191,117 $ 126,168 13 years Proprietary Software & Database 3,659 3,115 8 years Patents & Proprietary Technology 6,748 4,115 11 years Other 5,035 4,248 3 years $ 206,559 $ 137,646 December 30, 2017 Gross Accumulated Weighted Customer Relationships $ 200,810 $ 131,062 13 years Proprietary Software & Database 3,671 3,107 8 years Patents & Proprietary Technology 6,693 3,999 11 years Other 4,861 4,121 3 years $ 216,035 $ 142,289 Amortization expense for intangible assets for the thirteen weeks ended March 31, 2018 and April 1, 2017 , respectively was as follows: Thirteen Weeks Ended 2018 2017 3,883 3,863 Estimated annual amortization expense related to finite‑lived intangible assets is as follows: Estimated 2018 $ 14,167 2019 12,986 2020 11,879 2021 9,796 2022 7,494 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. (5) GOODWILL AND INTANGIBLE ASSETS (Continued) Non-amortized intangible assets Intangible assets with indefinite lives are not amortized. The carrying values of trade names at March 31, 2018 and December 30, 2017 were as follows: March 31, December 30, Year Acquired Webforge $ 9,793 $ 9,432 2010 Valmont SM 10,243 9,973 2014 Newmark 11,111 11,111 2004 Ingal EPS/Ingal Civil Products 7,985 7,690 2010 Shakespeare 4,000 4,000 2014 Other 17,495 22,647 $ 60,627 $ 64,853 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 2017. The values of each trade name was determined using the relief-from-royalty method. Based on this evaluation, no trade names were determined to be impaired. Goodwill The carrying amount of goodwill by segment as of March 31, 2018 and December 30, 2017 was as follows: Engineered Utility Coatings Irrigation Other Total Gross Balance at December 30, 2017 $ 170,076 $ 90,248 $ 76,696 $ 19,778 $ 15,814 $ 372,612 Accumulated impairment losses (18,670 ) $ — (16,222 ) $ — $ — $ (34,892 ) Balance at December 30, 2017 $ 151,406 $ 90,248 $ 60,474 $ 19,778 $ 15,814 $ 337,720 Acquisitions — — — 3,922 — 3,922 Assets held for sale — — — — (16,420 ) (16,420 ) Foreign currency translation 1,984 402 (200 ) (140 ) 606 2,652 Balance at March 31, 2018 $ 153,390 $ 90,650 $ 60,274 $ 23,560 $ — $ 327,874 The Company’s annual impairment test of goodwill was performed during the third quarter of 2017. As a result of that testing, the Company determined that its goodwill was not impaired, as the valuation of the reporting units exceeded their respective carrying values. The Company's offshore and other complex steel structures reporting unit with $15,245 of goodwill, is the reporting unit that did not have a substantial excess of estimated fair value over its carrying value. The Company monitors the outlook for wind energy in Europe which would affect the sales demand assumptions in the five year (5) GOODWILL AND INTANGIBLE ASSETS (Continued) impairment model for this reporting unit. If demand for off and onshore structures for wind energy declines significantly and recent increases to oil prices do not drive demand for new exploration structures, the Company may be required to perform an interim goodwill impairment test. The Company continues to monitor changes in global market conditions, including commodity prices, which could impact future results of any of its reporting units. |
CASH FLOW SUPPLEMENTARY INFORMA
CASH FLOW SUPPLEMENTARY INFORMATION | 3 Months Ended |
Mar. 31, 2018 | |
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 thirteen weeks ended March 31, 2018 and April 1, 2017 were as follows: 2018 2017 Interest $ 439 $ 925 Income taxes 2,912 1,898 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2018 | |
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 Thirteen weeks ended March 31, 2018: Net earnings attributable to Valmont Industries, Inc. $ 39,281 $ — $ 39,281 Shares outstanding (000 omitted) 22,609 187 22,796 Per share amount $ 1.74 $ (0.02 ) $ 1.72 Thirteen weeks ended April 1, 2017: Net earnings attributable to Valmont Industries, Inc. $ 38,979 $ — $ 38,979 Shares outstanding (000 omitted) 22,472 188 22,660 Per share amount $ 1.73 $ (0.01 ) $ 1.72 At March 31, 2018, there were 147,554 outstanding stock options with exercise prices exceeding the market price of common stock that were excluded from the computation of diluted earnings per share. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS In the fourth quarter of 2017, the Company's management structure and reporting was changed to reflect management's expectations of the future growth of certain product lines and to take into consideration the expected divestiture of the grinding media business which historically was reported in the Energy and Mining segment. Grinding media will be reported in "Other" pending the completion of its divestiture. The access systems applications product line is now part of the Engineered Support Structures ("ESS") segment and the offshore and other complex structures product line is now part of the Utility segment. The segment financial information have been accordingly reclassified in this report to reflect these changes, for all periods presented. The Company has four reportable segments based on its management 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. Reportable segments are as follows: ENGINEERED SUPPORT STRUCTURES: This segment consists of the manufacture and distribution of engineered metal and composite structures and components for lighting, traffic, and wireless communication markets, engineered access systems, and highway safety products; UTILITY SUPPORT STRUCTURES: This segment consists of the manufacture of engineered steel and concrete structures for the global utility transmission, distribution, and generation applications and on and offshore and other complex steel structures used in energy generation and distribution outside the United States, and inspection services; COATINGS: This segment consists of galvanizing, anodizing and powder coating services; and IRRIGATION: This segment consists of the manufacture of agricultural irrigation equipment, parts, services and tubular products and technology for precision agriculture. In addition to these four reportable segments, the Company had other businesses and activities that individually are not more than 10% of consolidated sales, operating income or assets. This includes the manufacture of forged steel grinding media for the mining industry and is reported in the "Other" category. The Company evaluates the performance of its business segments based upon operating income and invested capital. The Company does not allocate LIFO expense, interest expense, non-operating income and deductions, or income taxes to its business segments. (8) BUSINESS SEGMENTS (Continued) Summary by Business Thirteen Weeks Ended March 31, April 1, SALES: Engineered Support Structures segment: Lighting, Traffic, and Highway Safety Products $ 160,444 $ 140,802 Communication Products 34,113 31,476 Access Systems 30,397 32,671 Engineered Support Structures segment 224,954 204,949 Utility Support Structures segment: Steel 163,983 148,354 Concrete 23,662 26,204 Offshore and Other Complex Steel Structures 22,217 25,707 Utility Support Structures segment 209,862 200,265 Coatings segment 84,947 73,468 Irrigation segment 187,953 167,224 Other 18,399 19,594 Total 726,115 665,500 INTERSEGMENT SALES: Engineered Support Structures segment 9,038 11,873 Utility Support Structures segment 3 235 Coatings segment 16,489 14,136 Irrigation segment 1,901 1,783 Other — — Total 27,431 28,027 NET SALES: Engineered Support Structures segment 215,916 193,076 Utility Support Structures segment 209,859 200,030 Coatings segment 68,458 59,332 Irrigation segment 186,052 165,441 Other 18,399 19,594 Total $ 698,684 $ 637,473 OPERATING INCOME: Engineered Support Structures segment $ 6,947 $ 9,464 Utility Support Structures segment 23,367 24,207 Coatings segment 11,867 9,406 Irrigation segment 33,887 30,291 Other (579 ) 2,086 Adjustment to LIFO inventory valuation method (1,081 ) (779 ) Corporate (10,448 ) (10,019 ) Total $ 63,960 $ 64,656 |
GUARANTOR_NON-GUARANTOR FINANCI
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2018 | |
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: CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Thirteen weeks ended March 31, 2018 Parent Guarantors Non- Eliminations Total Net sales $ 315,992 $ 121,171 $ 332,136 $ (70,615 ) $ 698,684 Cost of sales 235,596 94,459 271,716 (72,327 ) 529,444 Gross profit 80,396 26,712 60,420 1,712 169,240 Selling, general and administrative expenses 46,531 11,917 46,832 — 105,280 Operating income 33,865 14,795 13,588 1,712 63,960 Other income (expense): Interest expense (10,881 ) (3,880 ) (193 ) 3,880 (11,074 ) Interest income 176 10 4,961 (3,880 ) 1,267 Other (106 ) 12 (1,047 ) — (1,141 ) (10,811 ) (3,858 ) 3,721 — (10,948 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 23,054 10,937 17,309 1,712 53,012 Income tax expense (benefit): Current 2,769 886 3,921 137 7,713 Deferred 5,591 1,791 (2,563 ) — 4,819 8,360 2,677 1,358 137 12,532 Earnings before equity in earnings of nonconsolidated subsidiaries 14,694 8,260 15,951 1,575 40,480 Equity in earnings of nonconsolidated subsidiaries 24,587 2,729 — (27,316 ) — Net earnings 39,281 10,989 15,951 (25,741 ) 40,480 Less: Earnings attributable to noncontrolling interests — — (1,199 ) — (1,199 ) Net earnings attributable to Valmont Industries, Inc $ 39,281 $ 10,989 $ 14,752 $ (25,741 ) $ 39,281 (9) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Thirteen weeks ended April 1, 2017 Parent Guarantors Non- Eliminations Total Net sales $ 293,265 $ 117,225 $ 295,296 $ (68,313 ) $ 637,473 Cost of sales 216,486 91,489 232,490 (67,597 ) 472,868 Gross profit 76,779 25,736 62,806 (716 ) 164,605 Selling, general and administrative expenses 50,217 11,660 38,072 — 99,949 Operating income 26,562 14,076 24,734 (716 ) 64,656 Other income (expense): Interest expense (11,142 ) (2,266 ) (162 ) 2,266 (11,304 ) Interest income 151 14 3,028 (2,266 ) 927 Other 1,354 16 (325 ) — 1,045 (9,637 ) (2,236 ) 2,541 — (9,332 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 16,925 11,840 27,275 (716 ) 55,324 Income tax expense (benefit): Current (4,887 ) 5,320 1,109 (244 ) 1,298 Deferred 11,327 — 2,738 — 14,065 6,440 5,320 3,847 (244 ) 15,363 Earnings before equity in earnings of nonconsolidated subsidiaries 10,485 6,520 23,428 (472 ) 39,961 Equity in earnings of nonconsolidated subsidiaries 28,494 (980 ) — (27,514 ) — Net earnings 38,979 5,540 23,428 (27,986 ) 39,961 Less: Earnings attributable to noncontrolling interests — — (982 ) — (982 ) Net earnings attributable to Valmont Industries, Inc $ 38,979 $ 5,540 $ 22,446 $ (27,986 ) $ 38,979 (9) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirteen weeks ended March 31, 2018 Parent Guarantors Non- Eliminations Total Net earnings $ 39,281 $ 10,989 $ 15,951 $ (25,741 ) $ 40,480 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — (8,680 ) 15,484 — 6,804 Unrealized gain/(loss) on hedging activities: Net investment hedge (789 ) — — — (789 ) Amortization cost included in interest expense 19 — — — 19 Cash flow hedges (93 ) — — — (93 ) Equity in other comprehensive income 3,256 — — (3,256 ) — Other comprehensive income (loss) 2,393 (8,680 ) 15,484 (3,256 ) 5,941 Comprehensive income (loss) 41,674 2,309 31,435 (28,997 ) 46,421 Comprehensive income attributable to noncontrolling interests — — (4,747 ) — (4,747 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 41,674 $ 2,309 $ 26,688 $ (28,997 ) $ 41,674 (9) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirteen weeks ended April 1, 2017 Parent Guarantors Non- Eliminations Total Net earnings $ 38,979 $ 5,540 $ 23,428 $ (27,986 ) $ 39,961 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — 69,383 (49,993 ) — 19,390 Unrealized gain/(loss) on hedging activities: Net investment hedge (526 ) — — — (526 ) Amortization cost included in interest expense 19 — — — 19 Equity in other comprehensive income 20,613 — — (20,613 ) — Other comprehensive income (loss) 20,106 69,383 (49,993 ) (20,613 ) 18,883 Comprehensive income (loss) 59,085 74,923 (26,565 ) (48,599 ) 58,844 Comprehensive income attributable to noncontrolling interests — — 241 — 241 Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 59,085 $ 74,923 $ (26,324 ) $ (48,599 ) $ 59,085 (9) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2018 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 71,423 $ 3,409 $ 404,831 $ — $ 479,663 Receivables, net 139,677 67,545 259,788 — 467,010 Inventories 135,973 38,734 197,998 (2,700 ) 370,005 Prepaid expenses and other assets 42,926 37,527 46,798 — 127,251 Assets held for sale — — 72,665 — 72,665 Refundable income taxes 6,749 — — — 6,749 Total current assets 396,748 147,215 982,080 (2,700 ) 1,523,343 Property, plant and equipment, at cost 560,719 165,996 410,437 — 1,137,152 Less accumulated depreciation and amortization 374,716 87,080 171,644 — 633,440 Net property, plant and equipment 186,003 78,916 238,793 — 503,712 Goodwill 20,108 110,562 197,204 — 327,874 Other intangible assets 117 30,057 99,366 — 129,540 Investment in subsidiaries and intercompany accounts 1,430,127 1,178,134 947,570 (3,555,831 ) — Other assets 50,467 — 83,128 — 133,595 Total assets $ 2,083,570 $ 1,544,884 $ 2,548,141 $ (3,558,531 ) $ 2,618,064 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 951 $ — $ 951 Notes payable to banks — — 377 — 377 Accounts payable 51,996 14,047 124,859 — 190,902 Accrued employee compensation and benefits 33,685 5,623 28,620 — 67,928 Accrued expenses 37,633 6,571 48,447 — 92,651 Liabilities held for sale — — 12,960 — 12,960 Dividends payable 8,493 — — — 8,493 Total current liabilities 131,807 26,241 216,214 — 374,262 Deferred income taxes 925 16,883 21,861 — 39,669 Long-term debt, excluding current installments 750,705 182,065 9,601 (188,724 ) 753,647 Defined benefit pension liability — — 195,490 — 195,490 Deferred compensation 42,988 — 5,609 — 48,597 Other noncurrent liabilities 11,904 5 9,134 — 21,043 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,682 (1,106,632 ) 27,900 Additional paid-in capital — 162,906 1,107,536 (1,270,442 ) — Retained earnings 1,996,474 633,032 630,982 (1,264,014 ) 1,996,474 Accumulated other comprehensive income (loss) (276,629 ) 65,802 (337,083 ) 271,281 (276,629 ) Treasury stock (602,504 ) — — — (602,504 ) Total Valmont Industries, Inc. shareholders’ equity 1,145,241 1,319,690 2,050,117 (3,369,807 ) 1,145,241 Noncontrolling interest in consolidated subsidiaries — — 40,115 — 40,115 Total shareholders’ equity 1,145,241 1,319,690 2,090,232 (3,369,807 ) 1,185,356 Total liabilities and shareholders’ equity $ 2,083,570 $ 1,544,884 $ 2,548,141 $ (3,558,531 ) $ 2,618,064 (9) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS December 30, 2017 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 83,329 $ 5,304 $ 404,172 $ — $ 492,805 Receivables, net 149,221 82,995 271,461 — 503,677 Inventories 160,444 46,801 217,551 (3,848 ) 420,948 Prepaid expenses and other assets 8,607 970 34,066 — 43,643 Refundable income taxes 11,492 — — — 11,492 Total current assets 413,093 136,070 927,250 (3,848 ) 1,472,565 Property, plant and equipment, at cost 557,371 160,767 447,549 — 1,165,687 Less accumulated depreciation and amortization 368,668 84,508 193,583 — 646,759 Net property, plant and equipment 188,703 76,259 253,966 — 518,928 Goodwill 20,108 110,562 207,050 — 337,720 Other intangible assets 130 30,955 107,514 — 138,599 Investment in subsidiaries and intercompany accounts 1,416,446 1,181,537 927,179 (3,525,162 ) — Other assets 50,773 — 83,665 — 134,438 Total assets $ 2,089,253 $ 1,535,383 $ 2,506,624 $ (3,529,010 ) $ 2,602,250 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 966 $ — $ 966 Notes payable to banks — — 161 — 161 Accounts payable 69,915 18,039 139,952 — 227,906 Accrued employee compensation and benefits 44,086 8,749 31,591 — 84,426 Accrued expenses 28,198 9,621 43,210 — 81,029 Dividends payable 8,510 — — — 8,510 Total current liabilities 150,709 36,409 215,880 — 402,998 Deferred income taxes 20,885 — 14,021 — 34,906 Long-term debt, excluding current installments 750,821 185,078 9,836 (191,847 ) 753,888 Defined benefit pension liability — — 189,552 — 189,552 Deferred compensation 42,928 — 5,598 — 48,526 Other noncurrent liabilities 11,074 6 9,505 — 20,585 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,682 (1,106,632 ) 27,900 Additional paid-in capital — 159,414 1,107,536 (1,266,950 ) — Retained earnings 1,954,344 622,044 619,622 (1,241,666 ) 1,954,344 Accumulated other comprehensive income (279,022 ) 74,482 (352,567 ) 278,085 (279,022 ) Treasury stock (590,386 ) — — — (590,386 ) Total Valmont Industries, Inc. shareholders’ equity 1,112,836 1,313,890 2,023,273 (3,337,163 ) 1,112,836 Noncontrolling interest in consolidated subsidiaries — — 38,959 — 38,959 Total shareholders’ equity 1,112,836 1,313,890 2,062,232 (3,337,163 ) 1,151,795 Total liabilities and shareholders’ equity $ 2,089,253 $ 1,535,383 $ 2,506,624 $ (3,529,010 ) $ 2,602,250 (9) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Thirteen Weeks Ended March 31, 2018 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 39,281 $ 10,989 $ 15,951 $ (25,741 ) $ 40,480 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 6,444 3,478 11,256 — 21,178 Noncash loss on trading securities — — 71 — 71 Impairment of property, plant and equipment — — 1,145 — 1,145 Stock-based compensation 2,775 — — — 2,775 Defined benefit pension plan expense — — (594 ) — (594 ) Contribution to defined benefit pension plan — — (731 ) — (731 ) Loss (gain) on sale of property, plant and equipment — 4 (284 ) — (280 ) Equity in earnings in nonconsolidated subsidiaries (24,587 ) (2,729 ) — 27,316 — Deferred income taxes 5,591 1,791 (2,563 ) — 4,819 Changes in assets and liabilities: Receivables 10,407 15,450 3,937 — 29,794 Inventories (934 ) 4,089 (3,208 ) (1,148 ) (1,201 ) Prepaid expenses and other assets 2,202 (31,130 ) (3,097 ) — (32,025 ) Accounts payable (17,919 ) (3,992 ) (7,538 ) — (29,449 ) Accrued expenses (2,606 ) (6,178 ) 2,377 — (6,407 ) Other noncurrent liabilities 861 — (421 ) — 440 Income taxes payable (refundable) (7,862 ) (514 ) 11,409 — 3,033 Net cash flows from operating activities 13,653 (8,742 ) 27,710 427 33,048 Cash flows from investing activities: Purchase of property, plant and equipment (3,928 ) (5,241 ) (7,079 ) — (16,248 ) Proceeds from sale of assets 5 — 709 — 714 Acquisitions, net of cash acquired — — (4,800 ) — (4,800 ) Loss from settlement of net investment hedge (863 ) — — — (863 ) Other, net 4,551 8,633 (14,539 ) (427 ) (1,782 ) Net cash flows from investing activities (235 ) 3,392 (25,709 ) (427 ) (22,979 ) Cash flows from financing activities: Net borrowings under short-term agreements — — 219 — 219 Principal payments on long-term borrowings — (249 ) — (249 ) Dividends paid (8,510 ) — — — (8,510 ) Dividends to noncontrolling interest — — (1,281 ) — (1,281 ) Purchase of noncontrolling interest — — (5,510 ) — (5,510 ) Intercompany capital contribution (3,492 ) 3,492 — — — Proceeds from exercises under stock plans 2,972 — — — 2,972 Purchase of treasury shares (14,790 ) — — — (14,790 ) Purchase of common treasury shares - stock plan exercises (1,504 ) — — — (1,504 ) Net cash flows from financing activities (25,324 ) 3,492 (6,821 ) — (28,653 ) Effect of exchange rate changes on cash and cash equivalents — (37 ) 5,479 — 5,442 Net change in cash and cash equivalents (11,906 ) (1,895 ) 659 — (13,142 ) Cash and cash equivalents—beginning of year 83,329 5,304 404,172 — 492,805 Cash and cash equivalents—end of period $ 71,423 $ 3,409 $ 404,831 $ — $ 479,663 (9) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Thirteen Weeks Ended April 1, 2017 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 38,979 $ 5,540 $ 23,428 $ (27,986 ) $ 39,961 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 6,536 3,557 10,734 — 20,827 Noncash loss on trading securities — — 70 — 70 Stock-based compensation 2,494 — — — 2,494 Defined benefit pension plan expense — — 154 — 154 Contribution to defined benefit pension plan — — (25,379 ) — (25,379 ) Loss (gain) on sale of property, plant and equipment (5 ) (2 ) (95 ) — (102 ) Equity in earnings in nonconsolidated subsidiaries (28,494 ) 980 — 27,514 — Deferred income taxes 11,327 — 2,738 — 14,065 Changes in assets and liabilities: Receivables 1,116 (13,699 ) (146 ) — (12,729 ) Inventories (17,105 ) (3,865 ) (14,563 ) 716 (34,817 ) Prepaid expenses and other assets 3,688 27 (13,513 ) — (9,798 ) Accounts payable 2,278 1,826 10,020 — 14,124 Accrued expenses 12,588 (3,697 ) 5,129 — 14,020 Other noncurrent liabilities 848 — (236 ) — 612 Income taxes payable (refundable) (9,839 ) 22 9,730 — (87 ) Net cash flows from operating activities 24,411 (9,311 ) 8,071 244 23,415 Cash flows from investing activities: Purchase of property, plant and equipment (4,547 ) (1,797 ) (7,824 ) — (14,168 ) Proceeds from sale of assets 7 6 289 — 302 Other, net 8,474 12,586 (22,531 ) (244 ) (1,715 ) Net cash flows from investing activities 3,934 10,795 (30,066 ) (244 ) (15,581 ) Cash flows from financing activities: Net borrowings under short-term agreements — — 198 — 198 Principal payments on long-term borrowings — — (215 ) — (215 ) Dividends paid (8,445 ) — — — (8,445 ) Intercompany interest on long-term note — (2,263 ) 2,263 — — Dividends to noncontrolling interest — — (422 ) — (422 ) Proceeds from exercises under stock plans 8,894 — — — 8,894 Purchase of common treasury shares - stock plan exercises (2,870 ) — — — (2,870 ) Net cash flows from financing activities (2,421 ) (2,263 ) 1,824 — (2,860 ) Effect of exchange rate changes on cash and cash equivalents — 187 7,539 — 7,726 Net change in cash and cash equivalents 25,924 (592 ) (12,632 ) — 12,700 Cash and cash equivalents—beginning of year 67,225 6,071 339,220 — 412,516 Cash and cash equivalents—end of period $ 93,149 $ 5,479 $ 326,588 $ — $ 425,216 |
SUMMARY OF SIGNIFICANT ACCOUN18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Condensed Consolidated Financial Statements | Condensed Consolidated Financial Statements The Condensed Consolidated Balance Sheet as of March 31, 2018 , the Condensed Consolidated Statements of Earnings and Comprehensive Income for the thirteen weeks ended March 31, 2018 and April 1, 2017 , and the Condensed Consolidated Statements of Cash Flows and Shareholders' Equity for the thirteen week periods then ended have been prepared by the Company, without audit. In the opinion of management, all necessary adjustments (which include normal recurring adjustments) have been made to present fairly the financial statements as of March 31, 2018 and for all periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These Condensed Consolidated Financial Statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2017 . The accounting policies and methods of computation followed in these interim financial statements are the same as those followed in the financial statements for the year ended December 30, 2017 with the exception of the revenue recognition accounting policy which changed from adopting ASU 2014-09 and is discussed later within this footnote. The results of operations for the period ended March 31, 2018 are not necessarily indicative of the operating results for the full year. |
Inventories | Inventories Approximately 37% and 37% of inventory is valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market as of March 31, 2018 and December 30, 2017 . 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. |
Income Taxes | Income Taxes Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries for the thirteen weeks ended March 31, 2018 and April 1, 2017 , were as follows: Thirteen Weeks Ended 2018 2017 United States $ 41,765 $ 35,424 Foreign 11,247 19,900 $ 53,012 $ 55,324 |
Pension Benefits | Pension Benefits The Company incurs expenses in connection with the Delta Pension Plan ("DPP"). The DPP was acquired as part of the Delta plc acquisition in fiscal 2010 and has no members that are active employees. 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. |
Stock Plans | Stock Plans The Company maintains stock‑based compensation plans approved by the shareholders, which provide that the Human Resource 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 March 31, 2018 , 550,606 shares of common stock remained available for issuance under the plans. Under the plans, the exercise price of each option equals the closing market price at the date of the grant. Options vest beginning on the first anniversary of the grant in equal amounts over three to six years or on the grant's fifth anniversary. Expiration of grants is from seven to ten years from the date of grant. |
Fair Value | Fair Value The Company applies the provisions of Accounting Standards Codification 820, Fair Value Measurements (“ASC 820”) which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The provisions of ASC 820 apply to other accounting pronouncements that require or permit fair value measurements. As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes 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. Inputs refer 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. |
Comprehensive Income | Comprehensive Income Comprehensive income includes net earnings, 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. |
Subsequent Events | |
Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-9, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification ("ASC") 605, Revenue Recognition . Effective December 31, 2017, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606). The Company elected the modified retrospective approach for the adoption of the new revenue standard, resulting in a credit to retained earnings being recognized for $9,771 . The Company calculated the cumulative effect on revenue of approximately $51,507 with $13,121 of pre-tax operating income; these were customer orders for the steel utility, concrete utility, and wireless communication structures product lines at various stages of production at December 30, 2017. In March 2017, the FASB issued ASU 2017-07, Presentation of Net Periodic Benefit Cost Related to Defined Benefit Plans, which amends the income statement presentation requirements for the components of net periodic benefit cost for an entity's defined benefit pension and post-retirement plans. The Company adopted this ASU in the first quarter of 2018, recognizing the DPP net periodic pension expense within Other income (expense). The Company also reclassified $154 of DPP net periodic pension expense for first quarter 2017 out of selling, general, and administrative expense and into Other (expense). In December 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires amounts generally described as restricted cash and restricted cash equivalents to be included within cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The Company adopted the ASU in the first quarter of 2018, recasting the beginning-of-period and end-of-period total cash and cash equivalent amounts on the statement of cash flows to include the £10,000 restricted cash account for the pension plan at December 31, 2016, thus reducing cash flows from operating activities by $12,568 for the first quarter of 2017. The Company did not have any restricted cash at March 31, 2018 or December 30, 2017. |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Components of inventories | Inventories consisted of the following: March 31, December 30, Raw materials and purchased parts $ 176,554 $ 183,029 Work-in-process 20,197 30,671 Finished goods and manufactured goods 218,062 250,975 Subtotal 414,813 464,675 Less: LIFO reserve 44,808 43,727 $ 370,005 $ 420,948 |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries for the thirteen weeks ended March 31, 2018 and April 1, 2017 , were as follows: Thirteen Weeks Ended 2018 2017 United States $ 41,765 $ 35,424 Foreign 11,247 19,900 $ 53,012 $ 55,324 |
Schedule of components of the net periodic pension (benefit) expense | The components of the net periodic pension (benefit) expense for the thirteen weeks ended March 31, 2018 and April 1, 2017 were as follows: Thirteen Weeks Ended Net periodic (benefit) expense: 2018 2017 Interest cost $ 4,716 $ 4,321 Expected return on plan assets (6,114 ) (4,877 ) Amortization of actuarial loss 804 710 Net periodic expense (benefit) $ (594 ) $ 154 |
Compensation expense (included in selling, general and administrative expenses) and associated income tax benefits related to stock options | The Company's compensation expense (included in selling, general and administrative expenses) and associated income tax benefits related to stock options for the thirteen weeks ended March 31, 2018 and April 1, 2017 , respectively, were as follows: Thirteen Weeks Ended 2018 2017 Compensation expense $ 1,090 $ 1,289 Income tax benefits 273 496 |
Valuation methodologies used for assets and liabilities measured at fair value | Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 41,072 $ 41,072 $ — $ — Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 41,042 $ 41,042 $ — $ — |
Components of accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) consisted of the following at March 31, 2018 and December 30, 2017: Foreign Currency Translation Adjustments Gain/(Loss) on Hedging Activities Defined Benefit Pension Plan Accumulated Other Comprehensive Loss Balance at December 30, 2017 $ (171,399 ) $ 6,357 $ (113,980 ) $ (279,022 ) Current-period comprehensive income (loss) 3,256 (863 ) — 2,393 Balance at March 31, 2018 $ (168,143 ) $ 5,494 $ (113,980 ) $ (276,629 ) |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The adoption of ASC 606 had the following impact on the Consolidated Balance Sheets and Consolidated Statements of Earnings for the thirteen weeks ended March 31, 2018: Balance Sheet As Reported Balance Excluding ASC 606 Effects Change Assets Inventories $ 370,005 $ 425,956 $ (55,951 ) Prepaid expenses and other current assets 127,251 48,767 78,484 Liabilities and shareholders' equity Accrued expenses 92,651 87,626 5,025 Deferred income taxes 39,669 35,539 4,130 Retained earnings 1,996,474 1,983,096 13,378 Statement of Earnings Net Sales $ 698,684 $ 670,874 $ 27,810 Operating Income 63,960 58,886 5,074 The cumulative effect of initially applying the new revenue standard was recorded as an adjustment to the opening balance of retained earnings, which impacted the Condensed Consolidated Balance Sheet as follows: (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Balance Sheet December 30, ASC 606 Adjustments December 31, Assets Inventories $ 420,948 $ (36,243 ) $ 384,705 Prepaid expenses and other current assets 43,643 51,507 95,150 Liabilities and shareholders' equity Accrued expenses 81,029 2,043 83,072 Deferred income taxes 34,906 3,450 38,356 Retained earnings 1,954,344 9,771 1,964,115 |
Disaggregation of Revenue | evenue by product line is disclosed in the Segment footnote. A breakdown by segment of revenue recognized over time and revenue recognized at a point in time for the thirteen weeks ended March 31, 2018 is as follows: (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Point in Time Over Time March 31, 2018 March 31, 2018 Utility Support Structures $ — $ 209,859 Engineered Support Structures 207,194 8,722 Coatings 68,458 — Irrigation 183,234 2,818 Other 18,399 — Total $ 477,285 $ 221,399 |
ASSETS AND LIABILITIES HELD F20
ASSETS AND LIABILITIES HELD FOR SALE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The assets and liabilities of the grinding media business as of March 31, 2018 are as follows: Receivables, net $ 9,978 Inventories 16,155 Net property, plant, and equipment 14,013 Goodwill and intangible assets 27,607 Other assets 4,912 Total assets $ 72,665 Accounts payable $ 9,201 Accrued expenses 1,536 Deferred income taxes 2,223 Total liabilities $ 12,960 Net assets 59,705 |
RESTRUCTURING ACTIVITIES (Table
RESTRUCTURING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs | The following pre-tax expense were recognized during the first quarter of 2018: ESS Utility Total Severance $ 423 $ — $ 423 Other cash restructuring expenses — 772 772 Asset impairments/net loss on disposals 1,145 — 1,145 Total cost of sales 1,568 772 2,340 Severance 1,978 — 1,978 Other cash restructuring expenses 82 — 82 Total selling, general and administrative expenses 2,060 — 2,060 Consolidated total $ 3,628 $ 772 $ 4,400 |
Schedule of liabilities recorded for the restructuring plan and changes | Liabilities recorded for the restructuring plans and changes therein for the first quarter of fiscal 2018 were as follows: Balance at December 30, 2017 Recognized Restructuring Expense Costs Paid or Otherwise Settled Balance at March 31, 2018 Severance $ — $ 2,401 $ (2,251 ) $ 150 Other cash restructuring expenses 1,216 772 (1,988 ) — Total $ 1,216 $ 3,173 $ (4,239 ) $ 150 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of components of amortized intangible assets | he components of amortized intangible assets at March 31, 2018 and December 30, 2017 were as follows: March 31, 2018 Gross Accumulated Weighted Customer Relationships $ 191,117 $ 126,168 13 years Proprietary Software & Database 3,659 3,115 8 years Patents & Proprietary Technology 6,748 4,115 11 years Other 5,035 4,248 3 years $ 206,559 $ 137,646 December 30, 2017 Gross Accumulated Weighted Customer Relationships $ 200,810 $ 131,062 13 years Proprietary Software & Database 3,671 3,107 8 years Patents & Proprietary Technology 6,693 3,999 11 years Other 4,861 4,121 3 years $ 216,035 $ 142,289 |
Schedule of amortization expense for intangible assets | Amortization expense for intangible assets for the thirteen weeks ended March 31, 2018 and April 1, 2017 , respectively was as follows: Thirteen Weeks Ended 2018 2017 3,883 3,863 |
Schedule of future estimated amortization expense | Estimated annual amortization expense related to finite‑lived intangible assets is as follows: Estimated 2018 $ 14,167 2019 12,986 2020 11,879 2021 9,796 2022 7,494 |
Schedule of non-amortized intangible assets | The carrying values of trade names at March 31, 2018 and December 30, 2017 were as follows: March 31, December 30, Year Acquired Webforge $ 9,793 $ 9,432 2010 Valmont SM 10,243 9,973 2014 Newmark 11,111 11,111 2004 Ingal EPS/Ingal Civil Products 7,985 7,690 2010 Shakespeare 4,000 4,000 2014 Other 17,495 22,647 $ 60,627 $ 64,853 |
Schedule of carrying amount of goodwill | The carrying amount of goodwill by segment as of March 31, 2018 and December 30, 2017 was as follows: Engineered Utility Coatings Irrigation Other Total Gross Balance at December 30, 2017 $ 170,076 $ 90,248 $ 76,696 $ 19,778 $ 15,814 $ 372,612 Accumulated impairment losses (18,670 ) $ — (16,222 ) $ — $ — $ (34,892 ) Balance at December 30, 2017 $ 151,406 $ 90,248 $ 60,474 $ 19,778 $ 15,814 $ 337,720 Acquisitions — — — 3,922 — 3,922 Assets held for sale — — — — (16,420 ) (16,420 ) Foreign currency translation 1,984 402 (200 ) (140 ) 606 2,652 Balance at March 31, 2018 $ 153,390 $ 90,650 $ 60,274 $ 23,560 $ — $ 327,874 |
CASH FLOW SUPPLEMENTARY INFOR23
CASH FLOW SUPPLEMENTARY INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 thirteen weeks ended March 31, 2018 and April 1, 2017 were as follows: 2018 2017 Interest $ 439 $ 925 Income taxes 2,912 1,898 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 Thirteen weeks ended March 31, 2018: Net earnings attributable to Valmont Industries, Inc. $ 39,281 $ — $ 39,281 Shares outstanding (000 omitted) 22,609 187 22,796 Per share amount $ 1.74 $ (0.02 ) $ 1.72 Thirteen weeks ended April 1, 2017: Net earnings attributable to Valmont Industries, Inc. $ 38,979 $ — $ 38,979 Shares outstanding (000 omitted) 22,472 188 22,660 Per share amount $ 1.73 $ (0.01 ) $ 1.72 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment reporting information of sales and operating income | (8) BUSINESS SEGMENTS (Continued) Summary by Business Thirteen Weeks Ended March 31, April 1, SALES: Engineered Support Structures segment: Lighting, Traffic, and Highway Safety Products $ 160,444 $ 140,802 Communication Products 34,113 31,476 Access Systems 30,397 32,671 Engineered Support Structures segment 224,954 204,949 Utility Support Structures segment: Steel 163,983 148,354 Concrete 23,662 26,204 Offshore and Other Complex Steel Structures 22,217 25,707 Utility Support Structures segment 209,862 200,265 Coatings segment 84,947 73,468 Irrigation segment 187,953 167,224 Other 18,399 19,594 Total 726,115 665,500 INTERSEGMENT SALES: Engineered Support Structures segment 9,038 11,873 Utility Support Structures segment 3 235 Coatings segment 16,489 14,136 Irrigation segment 1,901 1,783 Other — — Total 27,431 28,027 NET SALES: Engineered Support Structures segment 215,916 193,076 Utility Support Structures segment 209,859 200,030 Coatings segment 68,458 59,332 Irrigation segment 186,052 165,441 Other 18,399 19,594 Total $ 698,684 $ 637,473 OPERATING INCOME: Engineered Support Structures segment $ 6,947 $ 9,464 Utility Support Structures segment 23,367 24,207 Coatings segment 11,867 9,406 Irrigation segment 33,887 30,291 Other (579 ) 2,086 Adjustment to LIFO inventory valuation method (1,081 ) (779 ) Corporate (10,448 ) (10,019 ) Total $ 63,960 $ 64,656 |
GUARANTOR_NON-GUARANTOR FINAN26
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | |
Condensed Consolidated Statements of Earnings | CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Thirteen weeks ended March 31, 2018 Parent Guarantors Non- Eliminations Total Net sales $ 315,992 $ 121,171 $ 332,136 $ (70,615 ) $ 698,684 Cost of sales 235,596 94,459 271,716 (72,327 ) 529,444 Gross profit 80,396 26,712 60,420 1,712 169,240 Selling, general and administrative expenses 46,531 11,917 46,832 — 105,280 Operating income 33,865 14,795 13,588 1,712 63,960 Other income (expense): Interest expense (10,881 ) (3,880 ) (193 ) 3,880 (11,074 ) Interest income 176 10 4,961 (3,880 ) 1,267 Other (106 ) 12 (1,047 ) — (1,141 ) (10,811 ) (3,858 ) 3,721 — (10,948 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 23,054 10,937 17,309 1,712 53,012 Income tax expense (benefit): Current 2,769 886 3,921 137 7,713 Deferred 5,591 1,791 (2,563 ) — 4,819 8,360 2,677 1,358 137 12,532 Earnings before equity in earnings of nonconsolidated subsidiaries 14,694 8,260 15,951 1,575 40,480 Equity in earnings of nonconsolidated subsidiaries 24,587 2,729 — (27,316 ) — Net earnings 39,281 10,989 15,951 (25,741 ) 40,480 Less: Earnings attributable to noncontrolling interests — — (1,199 ) — (1,199 ) Net earnings attributable to Valmont Industries, Inc $ 39,281 $ 10,989 $ 14,752 $ (25,741 ) $ 39,281 |
Condensed Consolidated Statements of Comprehensive Income | CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirteen weeks ended March 31, 2018 Parent Guarantors Non- Eliminations Total Net earnings $ 39,281 $ 10,989 $ 15,951 $ (25,741 ) $ 40,480 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — (8,680 ) 15,484 — 6,804 Unrealized gain/(loss) on hedging activities: Net investment hedge (789 ) — — — (789 ) Amortization cost included in interest expense 19 — — — 19 Cash flow hedges (93 ) — — — (93 ) Equity in other comprehensive income 3,256 — — (3,256 ) — Other comprehensive income (loss) 2,393 (8,680 ) 15,484 (3,256 ) 5,941 Comprehensive income (loss) 41,674 2,309 31,435 (28,997 ) 46,421 Comprehensive income attributable to noncontrolling interests — — (4,747 ) — (4,747 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 41,674 $ 2,309 $ 26,688 $ (28,997 ) $ 41,674 (9) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirteen weeks ended April 1, 2017 Parent Guarantors Non- Eliminations Total Net earnings $ 38,979 $ 5,540 $ 23,428 $ (27,986 ) $ 39,961 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — 69,383 (49,993 ) — 19,390 Unrealized gain/(loss) on hedging activities: Net investment hedge (526 ) — — — (526 ) Amortization cost included in interest expense 19 — — — 19 Equity in other comprehensive income 20,613 — — (20,613 ) — Other comprehensive income (loss) 20,106 69,383 (49,993 ) (20,613 ) 18,883 Comprehensive income (loss) 59,085 74,923 (26,565 ) (48,599 ) 58,844 Comprehensive income attributable to noncontrolling interests — — 241 — 241 Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 59,085 $ 74,923 $ (26,324 ) $ (48,599 ) $ 59,085 |
Condensed Consolidated Balance Sheets | CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2018 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 71,423 $ 3,409 $ 404,831 $ — $ 479,663 Receivables, net 139,677 67,545 259,788 — 467,010 Inventories 135,973 38,734 197,998 (2,700 ) 370,005 Prepaid expenses and other assets 42,926 37,527 46,798 — 127,251 Assets held for sale — — 72,665 — 72,665 Refundable income taxes 6,749 — — — 6,749 Total current assets 396,748 147,215 982,080 (2,700 ) 1,523,343 Property, plant and equipment, at cost 560,719 165,996 410,437 — 1,137,152 Less accumulated depreciation and amortization 374,716 87,080 171,644 — 633,440 Net property, plant and equipment 186,003 78,916 238,793 — 503,712 Goodwill 20,108 110,562 197,204 — 327,874 Other intangible assets 117 30,057 99,366 — 129,540 Investment in subsidiaries and intercompany accounts 1,430,127 1,178,134 947,570 (3,555,831 ) — Other assets 50,467 — 83,128 — 133,595 Total assets $ 2,083,570 $ 1,544,884 $ 2,548,141 $ (3,558,531 ) $ 2,618,064 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 951 $ — $ 951 Notes payable to banks — — 377 — 377 Accounts payable 51,996 14,047 124,859 — 190,902 Accrued employee compensation and benefits 33,685 5,623 28,620 — 67,928 Accrued expenses 37,633 6,571 48,447 — 92,651 Liabilities held for sale — — 12,960 — 12,960 Dividends payable 8,493 — — — 8,493 Total current liabilities 131,807 26,241 216,214 — 374,262 Deferred income taxes 925 16,883 21,861 — 39,669 Long-term debt, excluding current installments 750,705 182,065 9,601 (188,724 ) 753,647 Defined benefit pension liability — — 195,490 — 195,490 Deferred compensation 42,988 — 5,609 — 48,597 Other noncurrent liabilities 11,904 5 9,134 — 21,043 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,682 (1,106,632 ) 27,900 Additional paid-in capital — 162,906 1,107,536 (1,270,442 ) — Retained earnings 1,996,474 633,032 630,982 (1,264,014 ) 1,996,474 Accumulated other comprehensive income (loss) (276,629 ) 65,802 (337,083 ) 271,281 (276,629 ) Treasury stock (602,504 ) — — — (602,504 ) Total Valmont Industries, Inc. shareholders’ equity 1,145,241 1,319,690 2,050,117 (3,369,807 ) 1,145,241 Noncontrolling interest in consolidated subsidiaries — — 40,115 — 40,115 Total shareholders’ equity 1,145,241 1,319,690 2,090,232 (3,369,807 ) 1,185,356 Total liabilities and shareholders’ equity $ 2,083,570 $ 1,544,884 $ 2,548,141 $ (3,558,531 ) $ 2,618,064 (9) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS December 30, 2017 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 83,329 $ 5,304 $ 404,172 $ — $ 492,805 Receivables, net 149,221 82,995 271,461 — 503,677 Inventories 160,444 46,801 217,551 (3,848 ) 420,948 Prepaid expenses and other assets 8,607 970 34,066 — 43,643 Refundable income taxes 11,492 — — — 11,492 Total current assets 413,093 136,070 927,250 (3,848 ) 1,472,565 Property, plant and equipment, at cost 557,371 160,767 447,549 — 1,165,687 Less accumulated depreciation and amortization 368,668 84,508 193,583 — 646,759 Net property, plant and equipment 188,703 76,259 253,966 — 518,928 Goodwill 20,108 110,562 207,050 — 337,720 Other intangible assets 130 30,955 107,514 — 138,599 Investment in subsidiaries and intercompany accounts 1,416,446 1,181,537 927,179 (3,525,162 ) — Other assets 50,773 — 83,665 — 134,438 Total assets $ 2,089,253 $ 1,535,383 $ 2,506,624 $ (3,529,010 ) $ 2,602,250 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 966 $ — $ 966 Notes payable to banks — — 161 — 161 Accounts payable 69,915 18,039 139,952 — 227,906 Accrued employee compensation and benefits 44,086 8,749 31,591 — 84,426 Accrued expenses 28,198 9,621 43,210 — 81,029 Dividends payable 8,510 — — — 8,510 Total current liabilities 150,709 36,409 215,880 — 402,998 Deferred income taxes 20,885 — 14,021 — 34,906 Long-term debt, excluding current installments 750,821 185,078 9,836 (191,847 ) 753,888 Defined benefit pension liability — — 189,552 — 189,552 Deferred compensation 42,928 — 5,598 — 48,526 Other noncurrent liabilities 11,074 6 9,505 — 20,585 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,682 (1,106,632 ) 27,900 Additional paid-in capital — 159,414 1,107,536 (1,266,950 ) — Retained earnings 1,954,344 622,044 619,622 (1,241,666 ) 1,954,344 Accumulated other comprehensive income (279,022 ) 74,482 (352,567 ) 278,085 (279,022 ) Treasury stock (590,386 ) — — — (590,386 ) Total Valmont Industries, Inc. shareholders’ equity 1,112,836 1,313,890 2,023,273 (3,337,163 ) 1,112,836 Noncontrolling interest in consolidated subsidiaries — — 38,959 — 38,959 Total shareholders’ equity 1,112,836 1,313,890 2,062,232 (3,337,163 ) 1,151,795 Total liabilities and shareholders’ equity $ 2,089,253 $ 1,535,383 $ 2,506,624 $ (3,529,010 ) $ 2,602,250 |
Condensed Consolidated Statements of Cash Flows | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Thirteen Weeks Ended March 31, 2018 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 39,281 $ 10,989 $ 15,951 $ (25,741 ) $ 40,480 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 6,444 3,478 11,256 — 21,178 Noncash loss on trading securities — — 71 — 71 Impairment of property, plant and equipment — — 1,145 — 1,145 Stock-based compensation 2,775 — — — 2,775 Defined benefit pension plan expense — — (594 ) — (594 ) Contribution to defined benefit pension plan — — (731 ) — (731 ) Loss (gain) on sale of property, plant and equipment — 4 (284 ) — (280 ) Equity in earnings in nonconsolidated subsidiaries (24,587 ) (2,729 ) — 27,316 — Deferred income taxes 5,591 1,791 (2,563 ) — 4,819 Changes in assets and liabilities: Receivables 10,407 15,450 3,937 — 29,794 Inventories (934 ) 4,089 (3,208 ) (1,148 ) (1,201 ) Prepaid expenses and other assets 2,202 (31,130 ) (3,097 ) — (32,025 ) Accounts payable (17,919 ) (3,992 ) (7,538 ) — (29,449 ) Accrued expenses (2,606 ) (6,178 ) 2,377 — (6,407 ) Other noncurrent liabilities 861 — (421 ) — 440 Income taxes payable (refundable) (7,862 ) (514 ) 11,409 — 3,033 Net cash flows from operating activities 13,653 (8,742 ) 27,710 427 33,048 Cash flows from investing activities: Purchase of property, plant and equipment (3,928 ) (5,241 ) (7,079 ) — (16,248 ) Proceeds from sale of assets 5 — 709 — 714 Acquisitions, net of cash acquired — — (4,800 ) — (4,800 ) Loss from settlement of net investment hedge (863 ) — — — (863 ) Other, net 4,551 8,633 (14,539 ) (427 ) (1,782 ) Net cash flows from investing activities (235 ) 3,392 (25,709 ) (427 ) (22,979 ) Cash flows from financing activities: Net borrowings under short-term agreements — — 219 — 219 Principal payments on long-term borrowings — (249 ) — (249 ) Dividends paid (8,510 ) — — — (8,510 ) Dividends to noncontrolling interest — — (1,281 ) — (1,281 ) Purchase of noncontrolling interest — — (5,510 ) — (5,510 ) Intercompany capital contribution (3,492 ) 3,492 — — — Proceeds from exercises under stock plans 2,972 — — — 2,972 Purchase of treasury shares (14,790 ) — — — (14,790 ) Purchase of common treasury shares - stock plan exercises (1,504 ) — — — (1,504 ) Net cash flows from financing activities (25,324 ) 3,492 (6,821 ) — (28,653 ) Effect of exchange rate changes on cash and cash equivalents — (37 ) 5,479 — 5,442 Net change in cash and cash equivalents (11,906 ) (1,895 ) 659 — (13,142 ) Cash and cash equivalents—beginning of year 83,329 5,304 404,172 — 492,805 Cash and cash equivalents—end of period $ 71,423 $ 3,409 $ 404,831 $ — $ 479,663 (9) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Thirteen Weeks Ended April 1, 2017 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 38,979 $ 5,540 $ 23,428 $ (27,986 ) $ 39,961 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 6,536 3,557 10,734 — 20,827 Noncash loss on trading securities — — 70 — 70 Stock-based compensation 2,494 — — — 2,494 Defined benefit pension plan expense — — 154 — 154 Contribution to defined benefit pension plan — — (25,379 ) — (25,379 ) Loss (gain) on sale of property, plant and equipment (5 ) (2 ) (95 ) — (102 ) Equity in earnings in nonconsolidated subsidiaries (28,494 ) 980 — 27,514 — Deferred income taxes 11,327 — 2,738 — 14,065 Changes in assets and liabilities: Receivables 1,116 (13,699 ) (146 ) — (12,729 ) Inventories (17,105 ) (3,865 ) (14,563 ) 716 (34,817 ) Prepaid expenses and other assets 3,688 27 (13,513 ) — (9,798 ) Accounts payable 2,278 1,826 10,020 — 14,124 Accrued expenses 12,588 (3,697 ) 5,129 — 14,020 Other noncurrent liabilities 848 — (236 ) — 612 Income taxes payable (refundable) (9,839 ) 22 9,730 — (87 ) Net cash flows from operating activities 24,411 (9,311 ) 8,071 244 23,415 Cash flows from investing activities: Purchase of property, plant and equipment (4,547 ) (1,797 ) (7,824 ) — (14,168 ) Proceeds from sale of assets 7 6 289 — 302 Other, net 8,474 12,586 (22,531 ) (244 ) (1,715 ) Net cash flows from investing activities 3,934 10,795 (30,066 ) (244 ) (15,581 ) Cash flows from financing activities: Net borrowings under short-term agreements — — 198 — 198 Principal payments on long-term borrowings — — (215 ) — (215 ) Dividends paid (8,445 ) — — — (8,445 ) Intercompany interest on long-term note — (2,263 ) 2,263 — — Dividends to noncontrolling interest — — (422 ) — (422 ) Proceeds from exercises under stock plans 8,894 — — — 8,894 Purchase of common treasury shares - stock plan exercises (2,870 ) — — — (2,870 ) Net cash flows from financing activities (2,421 ) (2,263 ) 1,824 — (2,860 ) Effect of exchange rate changes on cash and cash equivalents — 187 7,539 — 7,726 Net change in cash and cash equivalents 25,924 (592 ) (12,632 ) — 12,700 Cash and cash equivalents—beginning of year 67,225 6,071 339,220 — 412,516 Cash and cash equivalents—end of period $ 93,149 $ 5,479 $ 326,588 $ — $ 425,216 |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenues (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Dec. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Contract asset, current | $ 95,209,000 | $ 51,507,000 | |
Contract with customer, liability, current | 6,301 | $ 7,368 | |
Revenue recognized from contract liability | 3,000 | ||
Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 477,285,000 | ||
Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 221,399,000 | ||
Offshore and Other Complex Steel Structures | |||
Disaggregation of Revenue [Line Items] | |||
Contract asset, current | $ 16,165,000 | ||
Utility Support Structures Segment | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Utility Support Structures Segment | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 209,859,000 | ||
Engineered Support Structures Segment | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 207,194,000 | ||
Engineered Support Structures Segment | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 8,722,000 | ||
Coatings Segment | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 68,458,000 | ||
Coatings Segment | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 0 | ||
Irrigation Segment | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 183,234,000 | ||
Irrigation Segment | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 2,818,000 | ||
Other Segments | Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | 18,399,000 | ||
Other Segments | Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contract with customer | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 30, 2017 |
Accounting Policies [Abstract] | |||
Inventory valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market (as a percent) | 37.00% | 37.00% | |
Excess of replacement cost of inventories over the LIFO value | $ 44,808 | $ 43,727 | |
Inventory, Net [Abstract] | |||
Raw materials and purchased parts | 176,554 | 183,029 | |
Work-in-process | 20,197 | 30,671 | |
Finished goods and manufactured goods | 218,062 | 250,975 | |
Subtotal | 414,813 | 464,675 | |
Less: LIFO reserve | 44,808 | 43,727 | |
Net inventory | $ 370,005 | $ 384,705 | $ 420,948 |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Mar. 31, 2018 | Apr. 01, 2017 |
Income Tax Contingency [Line Items] | |||
United States | $ 41,765 | $ 35,424 | |
Foreign | 11,247 | 19,900 | |
Earnings before income taxes | $ 53,012 | $ 55,324 | |
Unremitted foreign earnings | $ 400,000 | ||
Tax Cuts and Jobs Act, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Liability | 9,890 | ||
Federal | |||
Income Tax Contingency [Line Items] | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense | 10,373 | ||
State | |||
Income Tax Contingency [Line Items] | |||
Tax Cuts and Jobs Act of 2017, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense | $ 1,300 |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Pension Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Net periodic (benefit) expense: | ||
Interest cost | $ 4,716 | $ 4,321 |
Expected return on plan assets | (6,114) | (4,877) |
Amortization of actuarial loss | 804 | 710 |
Net periodic expense (benefit) | $ (594) | $ 154 |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock Plans (Details) - Stock Option Plans - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Shares of common stock available for issuance (in shares) | 550,606 | |
Compensation expense | $ 1,090 | $ 1,289 |
Income tax benefits | $ 273 | $ 496 |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Vesting period of options | 3 years | |
Expiration period of grant | 6 years | |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Vesting period of options | 7 years | |
Expiration period of grant | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | $ 41,072 | $ 41,042 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 41,072 | 41,042 |
Delta E M D Pty Ltd | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of remaining ownership | 1,954 | 1,951 |
Valmont Deferred Compensation Plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets recorded for the investments held | $ 39,118 | $ 39,091 |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Comprehensive Income (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at the beginning of the period | $ (279,022) |
Balance at the end of the period | (276,629) |
Foreign Currency Translation Adjustments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at the beginning of the period | (171,399) |
Current-period comprehensive income (loss) | 3,256 |
Balance at the end of the period | (168,143) |
Gain/(Loss) on Hedging Activities | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at the beginning of the period | 6,357 |
Current-period comprehensive income (loss) | (863) |
Balance at the end of the period | 5,494 |
Defined Benefit Pension Plan | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at the beginning of the period | (113,980) |
Current-period comprehensive income (loss) | 0 |
Balance at the end of the period | (113,980) |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at the beginning of the period | (279,022) |
Current-period comprehensive income (loss) | 2,393 |
Balance at the end of the period | $ (276,629) |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net Investment Hedge (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Mar. 31, 2018 | Apr. 01, 2017 | Dec. 30, 2017 | |
Derivative [Line Items] | ||||
Realized gain on net investment hedge, net of tax | $ 3,150 | |||
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | $ (792) | $ (789) | $ (526) | |
Foreign Currency Forward Contract | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | 7,142 | $ 44,000 | ||
Unrealized Gain (Loss) on Investments | 93 | |||
Australia, Dollars | Foreign Currency Forward Contract | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | 24,059 | |||
United Kingdom, Pounds | Foreign Currency Forward Contract | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 21,222 |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Effects of Topic 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Dec. 30, 2017 | Apr. 01, 2017 | Dec. 31, 2017 | |
Revenue, Initial Application Period, Cumulative Effect Transition [Line Items] | ||||
Inventories | $ 370,005 | $ 420,948 | $ 384,705 | |
Prepaid expenses and other assets | 127,251 | 43,643 | 95,150 | |
Accrued expenses | 92,651 | 81,029 | 83,072 | |
Deferred income taxes | 39,669 | 34,906 | 38,356 | |
Retained earnings | 1,996,474 | 1,954,344 | 1,964,115 | |
Net sales | 698,684 | $ 637,473 | ||
Operating income | 63,960 | $ 64,656 | ||
Calculated Under Revenue Guidance In Effect Before Topic 606 | ||||
Revenue, Initial Application Period, Cumulative Effect Transition [Line Items] | ||||
Inventories | 425,956 | 420,948 | ||
Prepaid expenses and other assets | 48,767 | 43,643 | ||
Accrued expenses | 87,626 | 81,029 | ||
Deferred income taxes | 35,539 | 34,906 | ||
Retained earnings | 1,983,096 | 1,954,344 | ||
Net sales | 670,874 | |||
Operating income | 58,886 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Revenue, Initial Application Period, Cumulative Effect Transition [Line Items] | ||||
Inventories | (55,951) | (36,243) | ||
Prepaid expenses and other assets | 78,484 | 51,507 | ||
Accrued expenses | 5,025 | 2,043 | ||
Deferred income taxes | 4,130 | 3,450 | ||
Retained earnings | 13,378 | 9,771 | $ 9,771 | |
Net sales | 27,810 | 51,507 | ||
Operating income | $ 5,074 | $ 13,121 |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Changes (Details) £ in Thousands, $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2018USD ($) | Dec. 30, 2017USD ($) | Apr. 01, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016GBP (£) | Dec. 31, 2016USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | $ 1,996,474 | $ 1,954,344 | $ 1,964,115 | |||
Net sales | 698,684 | $ 637,473 | ||||
Adjustments to operating income (loss) | 63,960 | 64,656 | ||||
Other Nonoperating Income (Expense) | (1,141) | 1,045 | ||||
Adjustments to selling, general, and administrative expense | (105,280) | (99,949) | ||||
Adjustments to beginning and ending cash balance | 479,663 | 492,805 | 425,216 | $ 412,516 | ||
Adjustments to cash provided by (used in) operating activities | (33,048) | (23,415) | ||||
Accounting Standards Update 2017-07 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other Nonoperating Income (Expense) | 154 | |||||
Adjustments to selling, general, and administrative expense | 154 | |||||
Accounting Standards Update 2016-18 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Adjustments to beginning and ending cash balance | £ | £ 10,000 | |||||
Adjustments to cash provided by (used in) operating activities | $ 12,568 | |||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | 13,378 | 9,771 | $ 9,771 | |||
Net sales | 27,810 | 51,507 | ||||
Adjustments to operating income (loss) | $ 5,074 | $ 13,121 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | Jan. 26, 2018 | Jul. 31, 2017 | Apr. 30, 2016 | Mar. 31, 2018 | Dec. 30, 2017 |
Acquisitions | |||||
Goodwill | $ 327,874 | $ 337,720 | |||
Torrent Engineering and Equipment | |||||
Acquisitions | |||||
Percentage acquired | 60.00% | ||||
Consideration transfered | $ 4,800 | ||||
Annual revenue of acquiree | 9,000 | ||||
Goodwill | 3,922 | ||||
Customer relationships and other intangible assets | $ 4,020 | ||||
IGC Galvanizing Industries (M) Sdn Bhd | |||||
Acquisitions | |||||
Percentage acquired | 10.00% | ||||
Consideration transfered | $ 5,510 | ||||
Aircon | |||||
Acquisitions | |||||
Consideration transfered | $ 5,362 | ||||
Annual revenue of acquiree | 10,000 | ||||
Goodwill | $ 3,327 | ||||
Customer relationships and other intangible assets | $ 2,109 |
ASSETS AND LIABILITIES HELD F38
ASSETS AND LIABILITIES HELD FOR SALE (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2018 | Apr. 01, 2017 | Dec. 31, 2017 | Dec. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Receivables, net | $ 467,010,000 | $ 503,677,000 | ||
Inventories | 370,005,000 | $ 384,705,000 | 420,948,000 | |
Net property, plant, and equipment | 503,712,000 | 518,928,000 | ||
Goodwill | 327,874,000 | 337,720,000 | ||
Other assets | 133,595,000 | 134,438,000 | ||
Total assets | 2,618,064,000 | 2,602,250,000 | ||
Accounts payable | 190,902,000 | 227,906,000 | ||
Accrued expenses | 92,651,000 | 83,072,000 | 81,029,000 | |
Deferred income taxes | 39,669,000 | $ 38,356,000 | $ 34,906,000 | |
Donhad | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Pre-tax income/(loss) | (579,000) | $ 2,086 | ||
Receivables, net | 9,978,000 | |||
Inventories | 16,155,000 | |||
Net property, plant, and equipment | 14,013,000 | |||
Goodwill | 27,607,000 | |||
Other assets | 4,912,000 | |||
Total assets | 72,665,000 | |||
Accounts payable | 9,201,000 | |||
Accrued expenses | 1,536,000 | |||
Deferred income taxes | 2,223,000 | |||
Total liabilities | 12,960,000 | |||
Net assets | $ 59,705,000 |
RESTRUCTURING ACTIVITIES - Narr
RESTRUCTURING ACTIVITIES - Narrative (Details) $ in Thousands | Feb. 28, 2018USD ($) |
Cost of Sales | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring costs | $ 7,500 |
Selling, General and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring costs | 2,500 |
ESS | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring costs | 10,000 |
ESS | Asset impairments/net loss on disposals | |
Restructuring Cost and Reserve [Line Items] | |
Expected restructuring costs | $ 2,000 |
RESTRUCTURING ACTIVITIES - Rest
RESTRUCTURING ACTIVITIES - Restructuring Activities - Restruciting Expenses and Related Costs (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 4,400 |
ESS | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 3,628 |
Utility | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 772 |
Cost of Sales | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 2,340 |
Cost of Sales | ESS | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,568 |
Cost of Sales | Utility | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 772 |
Selling, General and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 2,060 |
Selling, General and Administrative Expenses | ESS | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 2,060 |
Selling, General and Administrative Expenses | Utility | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 0 |
Severance | Cost of Sales | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 423 |
Severance | Cost of Sales | ESS | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 423 |
Severance | Cost of Sales | Utility | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 0 |
Severance | Selling, General and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,978 |
Severance | Selling, General and Administrative Expenses | ESS | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,978 |
Severance | Selling, General and Administrative Expenses | Utility | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 0 |
Other cash restructuring expenses | Cost of Sales | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 772 |
Other cash restructuring expenses | Cost of Sales | ESS | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 0 |
Other cash restructuring expenses | Cost of Sales | Utility | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 772 |
Other cash restructuring expenses | Selling, General and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 82 |
Other cash restructuring expenses | Selling, General and Administrative Expenses | ESS | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 82 |
Other cash restructuring expenses | Selling, General and Administrative Expenses | Utility | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 0 |
Asset impairments/net loss on disposals | Cost of Sales | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,145 |
Asset impairments/net loss on disposals | Cost of Sales | ESS | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,145 |
Asset impairments/net loss on disposals | Cost of Sales | Utility | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 0 |
RESTRUCTURING ACTIVITIES - Liab
RESTRUCTURING ACTIVITIES - Liabilities Recorded For The Restructuring Plan (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Restructuring Cost and Reserve [Roll Forward] | |
Beginning balance | $ 1,216 |
Recognized Restructuring Expense | 3,173 |
Costs Paid or Otherwise Settled | (4,239) |
Ending balance | 150 |
Severance | |
Restructuring Cost and Reserve [Roll Forward] | |
Beginning balance | 0 |
Recognized Restructuring Expense | 2,401 |
Costs Paid or Otherwise Settled | (2,251) |
Ending balance | 150 |
Other cash restructuring expenses | |
Restructuring Cost and Reserve [Roll Forward] | |
Beginning balance | 1,216 |
Recognized Restructuring Expense | 772 |
Costs Paid or Otherwise Settled | (1,988) |
Ending balance | $ 0 |
RESTRUCTURING ACTIVITIES - Pre-
RESTRUCTURING ACTIVITIES - Pre-tax Restructuring Expenses Recognized (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 4,400 |
Cost of Sales | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 2,340 |
Selling, General and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 2,060 |
Severance | Cost of Sales | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 423 |
Severance | Selling, General and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,978 |
Other cash restructuring expenses | Cost of Sales | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 772 |
Other cash restructuring expenses | Selling, General and Administrative Expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 82 |
GOODWILL AND INTANGIBLE ASSET43
GOODWILL AND INTANGIBLE ASSETS - Amortized Intangible Assets - (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | Dec. 30, 2017 | |
Components of amortized intangible assets | |||
Gross Carrying Amount | $ 206,559 | $ 216,035 | |
Accumulated Amortization | 137,646 | 142,289 | |
Amortization expense for intangible assets | 3,883 | $ 3,863 | |
Estimated amortization expense | |||
2,015 | 14,167 | ||
2,016 | 12,986 | ||
2,017 | 11,879 | ||
2,018 | 9,796 | ||
2,019 | 7,494 | ||
Customer Relationships | |||
Components of amortized intangible assets | |||
Gross Carrying Amount | 191,117 | 200,810 | |
Accumulated Amortization | $ 126,168 | $ 131,062 | |
Weighted Average Life | 13 years | 13 years | |
Proprietary Software & Database | |||
Components of amortized intangible assets | |||
Gross Carrying Amount | $ 3,659 | $ 3,671 | |
Accumulated Amortization | $ 3,115 | $ 3,107 | |
Weighted Average Life | 8 years | 8 years | |
Patents & Proprietary Technology | |||
Components of amortized intangible assets | |||
Gross Carrying Amount | $ 6,748 | $ 6,693 | |
Accumulated Amortization | $ 4,115 | $ 3,999 | |
Weighted Average Life | 11 years | 11 years | |
Other | |||
Components of amortized intangible assets | |||
Gross Carrying Amount | $ 5,035 | $ 4,861 | |
Accumulated Amortization | $ 4,248 | $ 4,121 | |
Weighted Average Life | 3 years | 3 years |
GOODWILL AND INTANGIBLE ASSET44
GOODWILL AND INTANGIBLE ASSETS - Carrying Values of Trade Names - (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Webforge | ||
Non-amortized intangible assets | ||
Carrying value of trade names | $ 9,793 | $ 9,432 |
Valmont SM | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 10,243 | 9,973 |
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 | 7,985 | 7,690 |
Shakespeare | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 4,000 | 4,000 |
Other | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 17,495 | 22,647 |
Trade Names | ||
Non-amortized intangible assets | ||
Carrying value of trade names | $ 60,627 | $ 64,853 |
GOODWILL AND INTANGIBLE ASSET45
GOODWILL AND INTANGIBLE ASSETS - Impairment (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 327,874 | $ 337,720 |
ESS | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | 153,390 | 151,406 |
Coatings Segment | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 60,274 | $ 60,474 |
GOODWILL AND INTANGIBLE ASSET46
GOODWILL AND INTANGIBLE ASSETS - Carrying Amount of Goodwill by Segment (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 30, 2017 | |
Goodwill | ||
Goodwill, Gross | $ 372,612,000 | |
Accumulated impairment losses | (34,892,000) | |
Carrying amount of goodwill | ||
Balance at the beginning of the period | $ 337,720,000 | |
Acquisitions | (3,922,000) | |
Assets held for sale | (16,420,000) | |
Foreign currency translation | 2,652,000 | |
Balance at the end of the period | 327,874,000 | |
Engineered Support Structures Segment | ||
Goodwill | ||
Goodwill, Gross | 170,076,000 | |
Accumulated impairment losses | (18,670,000) | |
Carrying amount of goodwill | ||
Balance at the beginning of the period | 151,406,000 | |
Acquisitions | 0 | |
Assets held for sale | 0 | |
Foreign currency translation | 1,984,000 | |
Balance at the end of the period | 153,390,000 | |
Utility Support Structures Segment | ||
Goodwill | ||
Goodwill, Gross | 90,248,000 | |
Accumulated impairment losses | 0 | |
Carrying amount of goodwill | ||
Balance at the beginning of the period | 90,248,000 | |
Acquisitions | 0 | |
Assets held for sale | 0 | |
Foreign currency translation | 402,000 | |
Balance at the end of the period | 90,650,000 | |
Coatings Segment | ||
Goodwill | ||
Goodwill, Gross | 76,696,000 | |
Accumulated impairment losses | (16,222,000) | |
Carrying amount of goodwill | ||
Balance at the beginning of the period | 60,474,000 | |
Acquisitions | 0 | |
Assets held for sale | 0 | |
Foreign currency translation | (200,000) | |
Balance at the end of the period | 60,274,000 | |
Irrigation Segment | ||
Goodwill | ||
Goodwill, Gross | 19,778,000 | |
Accumulated impairment losses | 0 | |
Carrying amount of goodwill | ||
Balance at the beginning of the period | 19,778,000 | |
Acquisitions | (3,922,000) | |
Assets held for sale | 0 | |
Foreign currency translation | (140,000) | |
Balance at the end of the period | 23,560,000 | |
Other Segments | ||
Goodwill | ||
Goodwill, Gross | 15,814,000 | |
Accumulated impairment losses | $ 0 | |
Carrying amount of goodwill | ||
Balance at the beginning of the period | 15,814,000 | |
Acquisitions | 0 | |
Assets held for sale | (16,420,000) | |
Foreign currency translation | 606,000 | |
Balance at the end of the period | 0 | |
Valmont SM | ||
Carrying amount of goodwill | ||
Balance at the end of the period | $ 15,245 |
CASH FLOW SUPPLEMENTARY INFOR47
CASH FLOW SUPPLEMENTARY INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||
Value of shares acquired under share repurchase program | $ 14,790 | $ 0 |
Supplemental Cash Flow Information [Abstract] | ||
Interest | 439 | 925 |
Income taxes | $ 2,912 | $ 1,898 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Basic EPS | ||
Net earnings attributable to Valmont Industries, Inc. | $ 39,281,000 | $ 38,979,000 |
Shares outstanding basic (in shares) | 22,609,000 | 22,472,000 |
Per share amount basic (in dollars per share) | $ 1.74 | $ 1.73 |
Dilutive Effect of Stock Options | ||
Dilutive Effect of Stock Options | $ 0 | $ 0 |
Dilutive effect of stock options number of shares (in shares) | 187,000 | 188,000 |
Dilutive effect of stock options (in dollars per share) | $ (0.02) | $ (0.01) |
Diluted EPS | ||
Diluted EPS | $ 39,281,000 | $ 38,979,000 |
Shares outstanding dilutive (in shares) | 22,796,000 | 22,660,000 |
Per share amount diluted (in dollars per share) | $ 1.72 | $ 1.72 |
Antidilutive Securities | ||
Outstanding stock options with exercise prices exceeding the market price of common stock, excluded from the computation of diluted earnings per share (in shares) | 147,554 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($) | Apr. 01, 2017USD ($) | Dec. 30, 2017segment | |
Business Segments | |||
Number of Reportable Segments | segment | 4 | ||
Percentage of Sales to Total Consolidated Sales of Other Business Activities, Aggregated as Other, Maximum | 10.00% | ||
Net sales | $ 698,684 | $ 637,473 | |
Operating income | 63,960 | 64,656 | |
Inventory Valuation [Member] | |||
Business Segments | |||
Operating income | (1,081) | (779) | |
Engineered Support Structures Segment | |||
Business Segments | |||
Net sales | 215,916 | 193,076 | |
Operating income | 6,947 | 9,464 | |
Utility Support Structures Segment | |||
Business Segments | |||
Net sales | 209,859 | 200,030 | |
Operating income | 23,367 | 24,207 | |
Coatings Segment | |||
Business Segments | |||
Net sales | 68,458 | 59,332 | |
Operating income | 11,867 | 9,406 | |
Irrigation Segment | |||
Business Segments | |||
Net sales | 186,052 | 165,441 | |
Operating income | 33,887 | 30,291 | |
Other Segments | |||
Business Segments | |||
Operating income | (579) | 2,086 | |
Corporate | |||
Business Segments | |||
Operating income | (10,448) | (10,019) | |
Operating Segment | |||
Business Segments | |||
Sales | 726,115 | 665,500 | |
Operating Segment | Engineered Support Structures Segment | |||
Business Segments | |||
Sales | 224,954 | 204,949 | |
Operating Segment | Engineered Support Structures Segment | Lighting, Traffic, and Highway Safety Products | |||
Business Segments | |||
Sales | 160,444 | 140,802 | |
Operating Segment | Engineered Support Structures Segment | Communication Products | |||
Business Segments | |||
Sales | 34,113 | 31,476 | |
Operating Segment | Engineered Support Structures Segment | Access Systems | |||
Business Segments | |||
Sales | 30,397 | 32,671 | |
Operating Segment | Utility Support Structures Segment | |||
Business Segments | |||
Sales | 209,862 | 200,265 | |
Operating Segment | Utility Support Structures Segment | Steel | |||
Business Segments | |||
Sales | 163,983 | 148,354 | |
Operating Segment | Utility Support Structures Segment | Concrete | |||
Business Segments | |||
Sales | 23,662 | 26,204 | |
Operating Segment | Utility Support Structures Segment | Offshore and Other Complex Steel Structures | |||
Business Segments | |||
Sales | 22,217 | 25,707 | |
Operating Segment | Coatings Segment | |||
Business Segments | |||
Sales | 84,947 | 73,468 | |
Operating Segment | Irrigation Segment | |||
Business Segments | |||
Sales | 187,953 | 167,224 | |
Corporate | |||
Business Segments | |||
Sales | 18,399 | 19,594 | |
Net sales | 18,399 | 19,594 | |
Intersegment | |||
Business Segments | |||
Sales | 27,431 | 28,027 | |
Intersegment | Engineered Support Structures Segment | |||
Business Segments | |||
Sales | 9,038 | 11,873 | |
Intersegment | Utility Support Structures Segment | |||
Business Segments | |||
Sales | 3 | 235 | |
Intersegment | Coatings Segment | |||
Business Segments | |||
Sales | 16,489 | 14,136 | |
Intersegment | Irrigation Segment | |||
Business Segments | |||
Sales | 1,901 | 1,783 | |
Intersegment | Other Segments | |||
Business Segments | |||
Sales | $ 0 | $ 0 |
GUARANTOR_NON-GUARANTOR FINAN50
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION - Condensed Consolidated Statements of Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | ||
Parent company's percentage ownership of Guarantors | 100.00% | |
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||
Net sales | $ 698,684 | $ 637,473 |
Cost of sales | 529,444 | 472,868 |
Gross profit | 169,240 | 164,605 |
Selling, general and administrative expenses | 105,280 | 99,949 |
Operating income | 63,960 | 64,656 |
Other income (expense): | ||
Interest expense | (11,074) | (11,304) |
Interest income | 1,267 | 927 |
Other | (1,141) | 1,045 |
Total other income (expenses) | (10,948) | (9,332) |
Earnings before income taxes | 53,012 | 55,324 |
Income tax expense: | ||
Current | 7,713 | 1,298 |
Deferred income taxes | 4,819 | 14,065 |
Total income tax expense (benefit) | 12,532 | 15,363 |
Earnings before equity in earnings of nonconsolidated subsidiaries | 40,480 | 39,961 |
Equity in earnings of nonconsolidated subsidiaries | 0 | 0 |
Net earnings | 40,480 | 39,961 |
Less: Earnings attributable to noncontrolling interests | (1,199) | (982) |
Net earnings attributable to Valmont Industries, Inc. | 39,281 | 38,979 |
Eliminations | ||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||
Net sales | (70,615) | (68,313) |
Cost of sales | (72,327) | (67,597) |
Gross profit | 1,712 | (716) |
Selling, general and administrative expenses | 0 | 0 |
Operating income | 1,712 | (716) |
Other income (expense): | ||
Interest expense | 3,880 | 2,266 |
Interest income | (3,880) | (2,266) |
Other | 0 | 0 |
Total other income (expenses) | 0 | 0 |
Earnings before income taxes | 1,712 | (716) |
Income tax expense: | ||
Current | 137 | (244) |
Deferred income taxes | 0 | 0 |
Total income tax expense (benefit) | 137 | (244) |
Earnings before equity in earnings of nonconsolidated subsidiaries | 1,575 | (472) |
Equity in earnings of nonconsolidated subsidiaries | (27,316) | (27,514) |
Net earnings | (25,741) | (27,986) |
Less: Earnings attributable to noncontrolling interests | 0 | 0 |
Net earnings attributable to Valmont Industries, Inc. | (25,741) | (27,986) |
Parent | ||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||
Net sales | 315,992 | 293,265 |
Cost of sales | 235,596 | 216,486 |
Gross profit | 80,396 | 76,779 |
Selling, general and administrative expenses | 46,531 | 50,217 |
Operating income | 33,865 | 26,562 |
Other income (expense): | ||
Interest expense | (10,881) | (11,142) |
Interest income | 176 | 151 |
Other | (106) | 1,354 |
Total other income (expenses) | (10,811) | (9,637) |
Earnings before income taxes | 23,054 | 16,925 |
Income tax expense: | ||
Current | 2,769 | (4,887) |
Deferred income taxes | 5,591 | 11,327 |
Total income tax expense (benefit) | 8,360 | 6,440 |
Earnings before equity in earnings of nonconsolidated subsidiaries | 14,694 | 10,485 |
Equity in earnings of nonconsolidated subsidiaries | 24,587 | 28,494 |
Net earnings | 39,281 | 38,979 |
Less: Earnings attributable to noncontrolling interests | 0 | 0 |
Net earnings attributable to Valmont Industries, Inc. | 39,281 | 38,979 |
Guarantors | ||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||
Net sales | 121,171 | 117,225 |
Cost of sales | 94,459 | 91,489 |
Gross profit | 26,712 | 25,736 |
Selling, general and administrative expenses | 11,917 | 11,660 |
Operating income | 14,795 | 14,076 |
Other income (expense): | ||
Interest expense | (3,880) | (2,266) |
Interest income | 10 | 14 |
Other | 12 | 16 |
Total other income (expenses) | (3,858) | (2,236) |
Earnings before income taxes | 10,937 | 11,840 |
Income tax expense: | ||
Current | 886 | 5,320 |
Deferred income taxes | 1,791 | 0 |
Total income tax expense (benefit) | 2,677 | 5,320 |
Earnings before equity in earnings of nonconsolidated subsidiaries | 8,260 | 6,520 |
Equity in earnings of nonconsolidated subsidiaries | 2,729 | (980) |
Net earnings | 10,989 | 5,540 |
Less: Earnings attributable to noncontrolling interests | 0 | 0 |
Net earnings attributable to Valmont Industries, Inc. | 10,989 | 5,540 |
Non- Guarantors | ||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||
Net sales | 332,136 | 295,296 |
Cost of sales | 271,716 | 232,490 |
Gross profit | 60,420 | 62,806 |
Selling, general and administrative expenses | 46,832 | 38,072 |
Operating income | 13,588 | 24,734 |
Other income (expense): | ||
Interest expense | (193) | (162) |
Interest income | 4,961 | 3,028 |
Other | (1,047) | (325) |
Total other income (expenses) | 3,721 | 2,541 |
Earnings before income taxes | 17,309 | 27,275 |
Income tax expense: | ||
Current | 3,921 | 1,109 |
Deferred income taxes | (2,563) | 2,738 |
Total income tax expense (benefit) | 1,358 | 3,847 |
Earnings before equity in earnings of nonconsolidated subsidiaries | 15,951 | 23,428 |
Equity in earnings of nonconsolidated subsidiaries | 0 | 0 |
Net earnings | 15,951 | 23,428 |
Less: Earnings attributable to noncontrolling interests | (1,199) | (982) |
Net earnings attributable to Valmont Industries, Inc. | $ 14,752 | $ 22,446 |
GUARANTOR_NON-GUARANTOR FINAN51
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION - Condensed Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2018 | Mar. 31, 2018 | Apr. 01, 2017 | |
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | $ 40,480 | $ 39,961 | |
Foreign currency translation adjustments: | |||
Unrealized translation gain | 6,804 | 19,390 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (526) | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (93) | 0 | |
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | $ (792) | (789) | (526) |
Gain/(loss) on hedging activities: | |||
Amortization cost included in interest expense | 19 | 19 | |
Equity in other comprehensive income | 0 | 0 | |
Other comprehensive income (loss) | 5,941 | 18,883 | |
Comprehensive income | 46,421 | 58,844 | |
Comprehensive loss (income) attributable to noncontrolling interests | (4,747) | 241 | |
Comprehensive income attributable to Valmont Industries, Inc. | 41,674 | 59,085 | |
Consolidation, Eliminations [Member] | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | (25,741) | (27,986) | |
Foreign currency translation adjustments: | |||
Unrealized translation gain | 0 | 0 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 0 | ||
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | 0 | ||
Gain/(loss) on hedging activities: | |||
Amortization cost included in interest expense | 0 | 0 | |
Equity in other comprehensive income | (3,256) | (20,613) | |
Other comprehensive income (loss) | (3,256) | (20,613) | |
Comprehensive income | (28,997) | (48,599) | |
Comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | |
Comprehensive income attributable to Valmont Industries, Inc. | (28,997) | (48,599) | |
Parent | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | 39,281 | 38,979 | |
Foreign currency translation adjustments: | |||
Unrealized translation gain | 0 | 0 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (526) | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (93) | ||
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | (789) | ||
Gain/(loss) on hedging activities: | |||
Amortization cost included in interest expense | 19 | 19 | |
Equity in other comprehensive income | 3,256 | 20,613 | |
Other comprehensive income (loss) | 2,393 | 20,106 | |
Comprehensive income | 41,674 | 59,085 | |
Comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | |
Comprehensive income attributable to Valmont Industries, Inc. | 41,674 | 59,085 | |
Guarantors | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | 10,989 | 5,540 | |
Foreign currency translation adjustments: | |||
Unrealized translation gain | (8,680) | 69,383 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 0 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 0 | ||
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | 0 | ||
Gain/(loss) on hedging activities: | |||
Amortization cost included in interest expense | 0 | 0 | |
Equity in other comprehensive income | 0 | 0 | |
Other comprehensive income (loss) | (8,680) | 69,383 | |
Comprehensive income | 2,309 | 74,923 | |
Comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | |
Comprehensive income attributable to Valmont Industries, Inc. | 2,309 | 74,923 | |
Non- Guarantors | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | 15,951 | 23,428 | |
Foreign currency translation adjustments: | |||
Unrealized translation gain | 15,484 | (49,993) | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 0 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 0 | ||
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | 0 | ||
Gain/(loss) on hedging activities: | |||
Amortization cost included in interest expense | 0 | 0 | |
Equity in other comprehensive income | 0 | 0 | |
Other comprehensive income (loss) | 15,484 | (49,993) | |
Comprehensive income | 31,435 | (26,565) | |
Comprehensive loss (income) attributable to noncontrolling interests | (4,747) | 241 | |
Comprehensive income attributable to Valmont Industries, Inc. | 26,688 | $ (26,324) | |
Consolidation, Eliminations [Member] | |||
Foreign currency translation adjustments: | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ 0 |
GUARANTOR_NON-GUARANTOR FINAN52
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION - Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2018 | Apr. 01, 2017 | Dec. 31, 2017 | Dec. 30, 2017 | Dec. 31, 2016 | |
Current assets: | |||||
Cash and cash equivalents | $ 479,663 | $ 425,216 | $ 492,805 | $ 412,516 | |
Receivables, net | 467,010 | 503,677 | |||
Inventories | 370,005 | $ 384,705 | 420,948 | ||
Prepaid expenses and other assets | 127,251 | 95,150 | 43,643 | ||
Assets Held-for-sale, Not Part of Disposal Group, Current | 72,665 | ||||
Refundable income taxes | 6,749 | 11,492 | |||
Assets held for sale | 11,492 | ||||
Total current assets | 1,523,343 | 1,472,565 | |||
Property, plant and equipment, at cost | 1,137,152 | 1,165,687 | |||
Less accumulated depreciation and amortization | 633,440 | 646,759 | |||
Net property, plant and equipment | 503,712 | 518,928 | |||
Goodwill | 327,874 | 337,720 | |||
Other intangible assets | 129,540 | 138,599 | |||
Investment in subsidiaries and intercompany accounts | 0 | 0 | |||
Other assets | 133,595 | 134,438 | |||
Total assets | 2,618,064 | 2,602,250 | |||
Current liabilities: | |||||
Current installments of long-term debt | 951 | 966 | |||
Notes payable to banks | 377 | 161 | |||
Accounts payable | 190,902 | 227,906 | |||
Accrued employee compensation and benefits | 67,928 | 84,426 | |||
Accrued expenses | 92,651 | 83,072 | 81,029 | ||
Disposal Group, Including Discontinued Operations, Liabilities | 12,960 | ||||
Payments of Ordinary Dividends, Common Stock | 8,510 | 8,445 | |||
Liabilities held for sale | 8,493 | 8,510 | |||
Total current liabilities | (374,262) | (402,998) | |||
Deferred income taxes | 39,669 | 38,356 | 34,906 | ||
Long-term debt, excluding current installments | 753,647 | 753,888 | |||
Defined benefit pension liability | 195,490 | 189,552 | |||
Deferred compensation | 48,597 | 48,526 | |||
Other noncurrent liabilities | 21,043 | 20,585 | |||
Shareholders’ equity: | |||||
Common stock of $1 par value | 27,900 | 27,900 | |||
Additional paid-in capital | 0 | 0 | |||
Retained earnings | 1,996,474 | $ 1,964,115 | 1,954,344 | ||
Accumulated other comprehensive loss | (276,629) | (279,022) | |||
Treasury stock | (602,504) | (590,386) | |||
Total Valmont Industries, Inc. shareholders’ equity | 1,145,241 | 1,112,836 | |||
Noncontrolling interest in consolidated subsidiaries | 40,115 | 38,959 | |||
Total shareholders’ equity | 1,185,356 | 1,041,280 | 1,151,795 | 982,586 | |
Total liabilities and shareholders’ equity | 2,618,064 | 2,602,250 | |||
Eliminations | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Receivables, net | 0 | 0 | |||
Inventories | (2,700) | (3,848) | |||
Prepaid expenses and other assets | 0 | 0 | |||
Assets Held-for-sale, Not Part of Disposal Group, Current | 0 | ||||
Refundable income taxes | 0 | ||||
Assets held for sale | 0 | ||||
Total current assets | (2,700) | (3,848) | |||
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 | (3,555,831) | (3,525,162) | |||
Other assets | 0 | 0 | |||
Total assets | (3,558,531) | (3,529,010) | |||
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 | |||
Disposal Group, Including Discontinued Operations, Liabilities | 0 | ||||
Payments of Ordinary Dividends, Common Stock | 0 | 0 | |||
Liabilities held for sale | 0 | 0 | |||
Total current liabilities | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Long-term debt, excluding current installments | (188,724) | (191,847) | |||
Defined benefit pension liability | 0 | 0 | |||
Deferred compensation | 0 | 0 | |||
Other noncurrent liabilities | 0 | 0 | |||
Shareholders’ equity: | |||||
Common stock of $1 par value | (1,106,632) | (1,106,632) | |||
Additional paid-in capital | (1,270,442) | (1,266,950) | |||
Retained earnings | (1,264,014) | (1,241,666) | |||
Accumulated other comprehensive loss | 271,281 | 278,085 | |||
Treasury stock | 0 | 0 | |||
Total Valmont Industries, Inc. shareholders’ equity | (3,369,807) | (3,337,163) | |||
Noncontrolling interest in consolidated subsidiaries | 0 | 0 | |||
Total shareholders’ equity | (3,369,807) | (3,337,163) | |||
Total liabilities and shareholders’ equity | (3,558,531) | (3,529,010) | |||
Parent | |||||
Current assets: | |||||
Cash and cash equivalents | 71,423 | 93,149 | 83,329 | 67,225 | |
Receivables, net | 139,677 | 149,221 | |||
Inventories | 135,973 | 160,444 | |||
Prepaid expenses and other assets | 42,926 | 8,607 | |||
Assets Held-for-sale, Not Part of Disposal Group, Current | 0 | ||||
Refundable income taxes | 6,749 | ||||
Assets held for sale | 11,492 | ||||
Total current assets | 396,748 | 413,093 | |||
Property, plant and equipment, at cost | 560,719 | 557,371 | |||
Less accumulated depreciation and amortization | 374,716 | 368,668 | |||
Net property, plant and equipment | 186,003 | 188,703 | |||
Goodwill | 20,108 | 20,108 | |||
Other intangible assets | 117 | 130 | |||
Investment in subsidiaries and intercompany accounts | 1,430,127 | 1,416,446 | |||
Other assets | 50,467 | 50,773 | |||
Total assets | 2,083,570 | 2,089,253 | |||
Current liabilities: | |||||
Current installments of long-term debt | 0 | 0 | |||
Notes payable to banks | 0 | 0 | |||
Accounts payable | 51,996 | 69,915 | |||
Accrued employee compensation and benefits | 33,685 | 44,086 | |||
Accrued expenses | 37,633 | 28,198 | |||
Disposal Group, Including Discontinued Operations, Liabilities | 0 | ||||
Payments of Ordinary Dividends, Common Stock | 8,510 | 8,445 | |||
Liabilities held for sale | 8,493 | 8,510 | |||
Total current liabilities | (131,807) | (150,709) | |||
Deferred income taxes | 925 | 20,885 | |||
Long-term debt, excluding current installments | 750,705 | 750,821 | |||
Defined benefit pension liability | 0 | 0 | |||
Deferred compensation | 42,988 | 42,928 | |||
Other noncurrent liabilities | 11,904 | 11,074 | |||
Shareholders’ equity: | |||||
Common stock of $1 par value | 27,900 | 27,900 | |||
Additional paid-in capital | 0 | 0 | |||
Retained earnings | 1,996,474 | 1,954,344 | |||
Accumulated other comprehensive loss | (276,629) | (279,022) | |||
Treasury stock | (602,504) | (590,386) | |||
Total Valmont Industries, Inc. shareholders’ equity | 1,145,241 | 1,112,836 | |||
Noncontrolling interest in consolidated subsidiaries | 0 | 0 | |||
Total shareholders’ equity | 1,145,241 | 1,112,836 | |||
Total liabilities and shareholders’ equity | 2,083,570 | 2,089,253 | |||
Guarantors | |||||
Current assets: | |||||
Cash and cash equivalents | 3,409 | 5,479 | 5,304 | 6,071 | |
Receivables, net | 67,545 | 82,995 | |||
Inventories | 38,734 | 46,801 | |||
Prepaid expenses and other assets | 37,527 | 970 | |||
Assets Held-for-sale, Not Part of Disposal Group, Current | 0 | ||||
Refundable income taxes | 0 | ||||
Assets held for sale | 0 | ||||
Total current assets | 147,215 | 136,070 | |||
Property, plant and equipment, at cost | 165,996 | 160,767 | |||
Less accumulated depreciation and amortization | 87,080 | 84,508 | |||
Net property, plant and equipment | 78,916 | 76,259 | |||
Goodwill | 110,562 | 110,562 | |||
Other intangible assets | 30,057 | 30,955 | |||
Investment in subsidiaries and intercompany accounts | 1,178,134 | 1,181,537 | |||
Other assets | 0 | 0 | |||
Total assets | 1,544,884 | 1,535,383 | |||
Current liabilities: | |||||
Current installments of long-term debt | 0 | 0 | |||
Notes payable to banks | 0 | 0 | |||
Accounts payable | 14,047 | 18,039 | |||
Accrued employee compensation and benefits | 5,623 | 8,749 | |||
Accrued expenses | 6,571 | 9,621 | |||
Disposal Group, Including Discontinued Operations, Liabilities | 0 | ||||
Payments of Ordinary Dividends, Common Stock | 0 | 0 | |||
Liabilities held for sale | 0 | 0 | |||
Total current liabilities | (26,241) | (36,409) | |||
Deferred income taxes | 16,883 | 0 | |||
Long-term debt, excluding current installments | 182,065 | 185,078 | |||
Defined benefit pension liability | 0 | 0 | |||
Deferred compensation | 0 | 0 | |||
Other noncurrent liabilities | 5 | 6 | |||
Shareholders’ equity: | |||||
Common stock of $1 par value | 457,950 | 457,950 | |||
Additional paid-in capital | 162,906 | 159,414 | |||
Retained earnings | 633,032 | 622,044 | |||
Accumulated other comprehensive loss | 65,802 | 74,482 | |||
Treasury stock | 0 | 0 | |||
Total Valmont Industries, Inc. shareholders’ equity | 1,319,690 | 1,313,890 | |||
Noncontrolling interest in consolidated subsidiaries | 0 | 0 | |||
Total shareholders’ equity | 1,319,690 | 1,313,890 | |||
Total liabilities and shareholders’ equity | 1,544,884 | 1,535,383 | |||
Non- Guarantors | |||||
Current assets: | |||||
Cash and cash equivalents | 404,831 | 326,588 | 404,172 | $ 339,220 | |
Receivables, net | 259,788 | 271,461 | |||
Inventories | 197,998 | 217,551 | |||
Prepaid expenses and other assets | 46,798 | 34,066 | |||
Assets Held-for-sale, Not Part of Disposal Group, Current | 72,665 | ||||
Refundable income taxes | 0 | ||||
Assets held for sale | 0 | ||||
Total current assets | 982,080 | 927,250 | |||
Property, plant and equipment, at cost | 410,437 | 447,549 | |||
Less accumulated depreciation and amortization | 171,644 | 193,583 | |||
Net property, plant and equipment | 238,793 | 253,966 | |||
Goodwill | 197,204 | 207,050 | |||
Other intangible assets | 99,366 | 107,514 | |||
Investment in subsidiaries and intercompany accounts | 947,570 | 927,179 | |||
Other assets | 83,128 | 83,665 | |||
Total assets | 2,548,141 | 2,506,624 | |||
Current liabilities: | |||||
Current installments of long-term debt | 951 | 966 | |||
Notes payable to banks | 377 | 161 | |||
Accounts payable | 124,859 | 139,952 | |||
Accrued employee compensation and benefits | 28,620 | 31,591 | |||
Accrued expenses | 48,447 | 43,210 | |||
Disposal Group, Including Discontinued Operations, Liabilities | 12,960 | ||||
Payments of Ordinary Dividends, Common Stock | 0 | $ 0 | |||
Liabilities held for sale | 0 | 0 | |||
Total current liabilities | (216,214) | (215,880) | |||
Deferred income taxes | 21,861 | 14,021 | |||
Long-term debt, excluding current installments | 9,601 | 9,836 | |||
Defined benefit pension liability | 195,490 | 189,552 | |||
Deferred compensation | 5,609 | 5,598 | |||
Other noncurrent liabilities | 9,134 | 9,505 | |||
Shareholders’ equity: | |||||
Common stock of $1 par value | 648,682 | 648,682 | |||
Additional paid-in capital | 1,107,536 | 1,107,536 | |||
Retained earnings | 630,982 | 619,622 | |||
Accumulated other comprehensive loss | (337,083) | (352,567) | |||
Treasury stock | 0 | 0 | |||
Total Valmont Industries, Inc. shareholders’ equity | 2,050,117 | 2,023,273 | |||
Noncontrolling interest in consolidated subsidiaries | 40,115 | 38,959 | |||
Total shareholders’ equity | 2,090,232 | 2,062,232 | |||
Total liabilities and shareholders’ equity | $ 2,548,141 | $ 2,506,624 |
GUARANTOR_NON-GUARANTOR FINAN53
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION - Condensed Consolidated Balance Sheets - Additional Information (Details) - $ / shares | Mar. 31, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
GUARANTOR_NON-GUARANTOR FINAN54
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION - Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Cash flows from operating activities: | ||
Net earnings | $ 40,480 | $ 39,961 |
Adjustments to reconcile net earnings to net cash flows from operations: | ||
Depreciation and amortization | 21,178 | 20,827 |
Noncash loss on trading securities | 71 | 70 |
Stock-based compensation | 2,775 | 2,494 |
Defined benefit pension plan expense | (594) | 154 |
Contribution to defined benefit pension plan | (731) | (25,379) |
(Gain)/loss on sale of property, plant and equipment | (280) | (102) |
Equity in earnings in nonconsolidated subsidiaries | 0 | 0 |
Deferred income taxes | 4,819 | 14,065 |
Changes in assets and liabilities: | ||
Receivables | 29,794 | (12,729) |
Inventories | (1,201) | (34,817) |
Prepaid expenses and other assets | (32,025) | (9,798) |
Accounts payable | (29,449) | 14,124 |
Accrued expenses | (6,407) | 14,020 |
Other noncurrent liabilities | 440 | 612 |
Income taxes payable (refundable) | 3,033 | (87) |
Net cash flows from operating activities | 33,048 | 23,415 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (16,248) | (14,168) |
Proceeds from sale of assets | 714 | 302 |
Payments to Acquire Businesses, Net of Cash Acquired | (4,800) | 0 |
Proceeds from settlement of net investment hedge | (863) | 0 |
Other, net | (1,782) | (1,715) |
Net cash flows from investing activities | (22,979) | (15,581) |
Cash flows from financing activities: | ||
Borrowings under short-term agreements | 219 | 198 |
Principal payments on long-term borrowings | (249) | (215) |
Dividends paid | (8,510) | (8,445) |
Intercompany Interest On Long-term Note | 0 | |
Intercompany capital contribution | 0 | |
Dividends to noncontrolling interest | (1,281) | (422) |
Purchase of noncontrolling interest | (5,510) | 0 |
Payments to Acquire Additional Interest in Subsidiaries | (5,510) | |
Proceeds from exercises under stock plans | 2,972 | 8,894 |
Purchase of treasury shares | (14,790) | 0 |
Purchase of common treasury shares - stock plan exercises | (1,504) | (2,870) |
Net cash flows from financing activities | (28,653) | (2,860) |
Effect of exchange rate changes on cash and cash equivalents | 5,442 | 7,726 |
Net change in cash and cash equivalents | (13,142) | 12,700 |
Cash, cash equivalents, and restricted cash—beginning of year | 492,805 | 412,516 |
Cash, cash equivalents, and restricted cash—end of period | 479,663 | 425,216 |
Restructuring Costs | 1,145 | 0 |
Eliminations | ||
Cash flows from operating activities: | ||
Net earnings | (25,741) | (27,986) |
Adjustments to reconcile net earnings to net cash flows from operations: | ||
Depreciation and amortization | 0 | 0 |
Noncash loss on trading securities | 0 | 0 |
Stock-based compensation | 0 | 0 |
Defined benefit pension plan expense | 0 | 0 |
Contribution to defined benefit pension plan | 0 | 0 |
(Gain)/loss on sale of property, plant and equipment | 0 | 0 |
Equity in earnings in nonconsolidated subsidiaries | 27,316 | 27,514 |
Deferred income taxes | 0 | 0 |
Changes in assets and liabilities: | ||
Receivables | 0 | 0 |
Inventories | (1,148) | 716 |
Prepaid expenses and other assets | 0 | 0 |
Accounts payable | 0 | 0 |
Accrued expenses | 0 | 0 |
Other noncurrent liabilities | 0 | 0 |
Income taxes payable (refundable) | 0 | 0 |
Net cash flows from operating activities | 427 | 244 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | 0 | 0 |
Proceeds from sale of assets | 0 | 0 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | |
Proceeds from settlement of net investment hedge | 0 | |
Other, net | (427) | (244) |
Net cash flows from investing activities | (427) | (244) |
Cash flows from financing activities: | ||
Borrowings under short-term agreements | 0 | 0 |
Principal payments on long-term borrowings | 0 | 0 |
Dividends paid | 0 | 0 |
Intercompany Interest On Long-term Note | 0 | |
Intercompany capital contribution | 0 | |
Dividends to noncontrolling interest | 0 | 0 |
Payments to Acquire Additional Interest in Subsidiaries | 0 | |
Proceeds from exercises under stock plans | 0 | 0 |
Purchase of common treasury shares - stock plan exercises | 0 | 0 |
Net cash flows from financing activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | 0 | 0 |
Cash, cash equivalents, and restricted cash—beginning of year | 0 | 0 |
Cash, cash equivalents, and restricted cash—end of period | 0 | 0 |
Parent | ||
Cash flows from operating activities: | ||
Net earnings | 39,281 | 38,979 |
Adjustments to reconcile net earnings to net cash flows from operations: | ||
Depreciation and amortization | 6,444 | 6,536 |
Noncash loss on trading securities | 0 | 0 |
Stock-based compensation | 2,775 | 2,494 |
Defined benefit pension plan expense | 0 | 0 |
Contribution to defined benefit pension plan | 0 | 0 |
(Gain)/loss on sale of property, plant and equipment | 0 | (5) |
Equity in earnings in nonconsolidated subsidiaries | (24,587) | (28,494) |
Deferred income taxes | 5,591 | 11,327 |
Changes in assets and liabilities: | ||
Receivables | 10,407 | 1,116 |
Inventories | (934) | (17,105) |
Prepaid expenses and other assets | 2,202 | 3,688 |
Accounts payable | (17,919) | 2,278 |
Accrued expenses | (2,606) | 12,588 |
Other noncurrent liabilities | 861 | 848 |
Income taxes payable (refundable) | (7,862) | (9,839) |
Net cash flows from operating activities | 13,653 | 24,411 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (3,928) | (4,547) |
Proceeds from sale of assets | 5 | 7 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | |
Proceeds from settlement of net investment hedge | (863) | |
Other, net | 4,551 | 8,474 |
Net cash flows from investing activities | (235) | 3,934 |
Cash flows from financing activities: | ||
Borrowings under short-term agreements | 0 | 0 |
Principal payments on long-term borrowings | 0 | |
Dividends paid | (8,510) | (8,445) |
Intercompany Interest On Long-term Note | 0 | |
Intercompany capital contribution | (3,492) | |
Dividends to noncontrolling interest | 0 | 0 |
Payments to Acquire Additional Interest in Subsidiaries | 0 | |
Proceeds from exercises under stock plans | 2,972 | 8,894 |
Purchase of treasury shares | (14,790) | |
Purchase of common treasury shares - stock plan exercises | (1,504) | (2,870) |
Net cash flows from financing activities | (25,324) | (2,421) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net change in cash and cash equivalents | (11,906) | 25,924 |
Cash, cash equivalents, and restricted cash—beginning of year | 83,329 | 67,225 |
Cash, cash equivalents, and restricted cash—end of period | 71,423 | 93,149 |
Restructuring Costs | 0 | |
Guarantors | ||
Cash flows from operating activities: | ||
Net earnings | 10,989 | 5,540 |
Adjustments to reconcile net earnings to net cash flows from operations: | ||
Depreciation and amortization | 3,478 | 3,557 |
Noncash loss on trading securities | 0 | 0 |
Stock-based compensation | 0 | 0 |
Defined benefit pension plan expense | 0 | 0 |
Contribution to defined benefit pension plan | 0 | 0 |
(Gain)/loss on sale of property, plant and equipment | 4 | (2) |
Equity in earnings in nonconsolidated subsidiaries | (2,729) | 980 |
Deferred income taxes | 1,791 | 0 |
Changes in assets and liabilities: | ||
Receivables | 15,450 | (13,699) |
Inventories | 4,089 | (3,865) |
Prepaid expenses and other assets | (31,130) | 27 |
Accounts payable | (3,992) | 1,826 |
Accrued expenses | (6,178) | (3,697) |
Other noncurrent liabilities | 0 | 0 |
Income taxes payable (refundable) | (514) | 22 |
Net cash flows from operating activities | (8,742) | (9,311) |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (5,241) | (1,797) |
Proceeds from sale of assets | 0 | 6 |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | |
Proceeds from settlement of net investment hedge | 0 | |
Other, net | 8,633 | 12,586 |
Net cash flows from investing activities | 3,392 | 10,795 |
Cash flows from financing activities: | ||
Borrowings under short-term agreements | 0 | 0 |
Principal payments on long-term borrowings | 0 | 0 |
Dividends paid | 0 | 0 |
Intercompany Interest On Long-term Note | (2,263) | |
Intercompany capital contribution | 3,492 | |
Dividends to noncontrolling interest | 0 | 0 |
Payments to Acquire Additional Interest in Subsidiaries | 0 | |
Proceeds from exercises under stock plans | 0 | 0 |
Purchase of treasury shares | 0 | |
Purchase of common treasury shares - stock plan exercises | 0 | 0 |
Net cash flows from financing activities | 3,492 | (2,263) |
Effect of exchange rate changes on cash and cash equivalents | (37) | 187 |
Net change in cash and cash equivalents | (1,895) | (592) |
Cash, cash equivalents, and restricted cash—beginning of year | 5,304 | 6,071 |
Cash, cash equivalents, and restricted cash—end of period | 3,409 | 5,479 |
Restructuring Costs | 0 | |
Non- Guarantors | ||
Cash flows from operating activities: | ||
Net earnings | 15,951 | 23,428 |
Adjustments to reconcile net earnings to net cash flows from operations: | ||
Depreciation and amortization | 11,256 | 10,734 |
Noncash loss on trading securities | 71 | 70 |
Stock-based compensation | 0 | 0 |
Defined benefit pension plan expense | (594) | 154 |
Contribution to defined benefit pension plan | (731) | (25,379) |
(Gain)/loss on sale of property, plant and equipment | (284) | (95) |
Equity in earnings in nonconsolidated subsidiaries | 0 | 0 |
Deferred income taxes | (2,563) | 2,738 |
Changes in assets and liabilities: | ||
Receivables | 3,937 | (146) |
Inventories | (3,208) | (14,563) |
Prepaid expenses and other assets | (3,097) | (13,513) |
Accounts payable | (7,538) | 10,020 |
Accrued expenses | 2,377 | 5,129 |
Other noncurrent liabilities | (421) | (236) |
Income taxes payable (refundable) | 11,409 | 9,730 |
Net cash flows from operating activities | 27,710 | 8,071 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (7,079) | (7,824) |
Proceeds from sale of assets | 709 | 289 |
Payments to Acquire Businesses, Net of Cash Acquired | (4,800) | |
Proceeds from settlement of net investment hedge | 0 | |
Other, net | (14,539) | (22,531) |
Net cash flows from investing activities | (25,709) | (30,066) |
Cash flows from financing activities: | ||
Borrowings under short-term agreements | 219 | 198 |
Principal payments on long-term borrowings | (249) | (215) |
Dividends paid | 0 | 0 |
Intercompany Interest On Long-term Note | 2,263 | |
Intercompany capital contribution | 0 | |
Dividends to noncontrolling interest | (1,281) | (422) |
Payments to Acquire Additional Interest in Subsidiaries | (5,510) | |
Proceeds from exercises under stock plans | 0 | 0 |
Purchase of treasury shares | 0 | |
Purchase of common treasury shares - stock plan exercises | 0 | 0 |
Net cash flows from financing activities | (6,821) | 1,824 |
Effect of exchange rate changes on cash and cash equivalents | 5,479 | 7,539 |
Net change in cash and cash equivalents | 659 | (12,632) |
Cash, cash equivalents, and restricted cash—beginning of year | 404,172 | 339,220 |
Cash, cash equivalents, and restricted cash—end of period | 404,831 | $ 326,588 |
Restructuring Costs | 1,145 | |
Eliminations | ||
Cash flows from financing activities: | ||
Purchase of treasury shares | 0 | |
Restructuring Costs | $ 0 |