Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 20, 2020 | Jun. 29, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 28, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-31429 | ||
Entity Registrant Name | Valmont Industries, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-0351813 | ||
Entity Address, Address Line One | One Valmont Plaza, | ||
Entity Address, City or Town | Omaha, | ||
Entity Address, State or Province | NE | ||
Entity Address, Postal Zip Code | 68154-5215 | ||
City Area Code | 402 | ||
Local Phone Number | 963-1000 | ||
Title of 12(b) Security | Common Stock $1.00 par value | ||
Trading Symbol | VMI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Smaller Reporting Company | false | ||
Emerging Growth Company | false | ||
Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 21,544,582 | ||
Entity Public Float | $ 2,908,458,040 | ||
Documents Incorporated by Reference | Portions of the Company’s proxy statement for its annual meeting of shareholders to be held on April 28, 2020 (the “Proxy Statement”), to be filed within 120 days of the fiscal year ended December 28, 2019 , are incorporated by reference in Part III. | ||
Entity Central Index Key | 0000102729 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-28 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Net sales | $ 2,766,976 | $ 2,757,144 | $ 2,745,967 |
Total cost of sales | 2,074,480 | 2,098,864 | 2,064,199 |
Gross profit | 692,496 | 658,280 | 681,768 |
Selling, general and administrative expenses | 454,776 | 440,220 | 414,688 |
Impairment of goodwill and intangible assets | 0 | 15,780 | 0 |
Operating income | 237,720 | 202,280 | 267,080 |
Other income (expenses): | |||
Interest expense | (40,153) | (44,237) | (44,645) |
Interest income | 3,942 | 4,668 | 4,737 |
Gain (loss) on investments - unrealized | 5,960 | (839) | 3,863 |
Costs associated with refinancing of debt | 0 | (14,820) | 0 |
Loss from divestiture of grinding media business | 0 | (6,084) | 0 |
Other | 2,204 | 2,473 | (2,571) |
Total other income (expenses) | (28,047) | (58,839) | (38,616) |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 209,673 | 143,441 | 228,464 |
Income tax expense (benefit): | |||
Current | 46,267 | 44,794 | 66,390 |
Deferred | 3,940 | (1,659) | 39,755 |
Total income tax expense (benefit) | 50,207 | 43,135 | 106,145 |
Net earnings | 159,466 | 100,306 | 122,319 |
Less: Earnings attributable to noncontrolling interests | (5,697) | (5,955) | (6,079) |
Net earnings attributable to Valmont Industries, Inc. | $ 153,769 | $ 94,351 | $ 116,240 |
Earnings per share: | |||
Basic (in dollars per share) | $ 7.10 | $ 4.23 | $ 5.16 |
Diluted (in dollars per share) | $ 7.06 | $ 4.20 | $ 5.11 |
Product | |||
Net sales | $ 2,434,190 | $ 2,437,334 | $ 2,447,219 |
Total cost of sales | 1,853,965 | 1,887,959 | 1,860,087 |
Service | |||
Net sales | 332,786 | 319,810 | 298,748 |
Total cost of sales | $ 220,515 | $ 210,905 | $ 204,112 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 159,466 | $ 100,306 | $ 122,319 |
Foreign currency translation adjustments: | |||
Unrealized translation gains (losses) | (2,506) | (65,436) | 79,279 |
Realized loss on divestiture of grinding media business recorded in other expense | 0 | 9,203 | 0 |
Foreign currency translation adjustments | (2,506) | (56,233) | 79,279 |
Gain/(loss) on hedging activities: | |||
Unrealized gain (loss) on net investment hedges, net of tax expense (benefit) of $384 in 2019, $1,894 in 2018 and ($880) in 2017 | 1,154 | 5,291 | (1,695) |
Realized loss on grinding media net investment hedge | 0 | 1,215 | 0 |
Amortization cost (benefit) included in interest expense | (64) | 423 | 74 |
Deferred loss on interest rate hedges | 0 | (2,467) | 0 |
Commodity hedges | (2,130) | 1,021 | 0 |
Realized (gain) loss on commodity hedges recorded in earnings | 2,130 | (1,021) | 0 |
Unrealized gain (loss) on cross currency swaps | 1,815 | 352 | 0 |
Other Comprehensive Income Loss, Hedging Activities, Gain (loss), after Reclassification and Tax | 2,905 | 4,814 | (1,621) |
Actuarial gain (loss) on defined benefit pension plan, net of tax expense (benefit) of ($2,710) in 2019, $8,177 in 2018, ($501) in 2017 | (10,828) | 29,885 | (10,871) |
Other comprehensive income (loss) | (10,429) | (21,534) | 66,787 |
Comprehensive income | 149,037 | 78,772 | 189,106 |
Comprehensive income attributable to noncontrolling interests | (5,505) | (8,584) | (5,529) |
Comprehensive income attributable to Valmont Industries, Inc. | $ 143,532 | $ 70,188 | $ 183,577 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain on net investment hedge, tax | $ 384 | $ 1,894 | $ (880) |
Actuarial gain (loss) in defined benefit pension plan liability, tax | $ (2,710) | $ 8,177 | $ (501) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 353,542 | $ 313,210 |
Receivables, less allowance of $9,548 in 2019 and $8,277 in 2018 | 480,000 | 483,963 |
Inventories | 374,565 | 383,566 |
Contract asset - costs and profits in excess of billings | 141,322 | 112,525 |
Prepaid expenses, restricted cash, and other assets | 32,043 | 42,800 |
Refundable income taxes | 6,947 | 4,576 |
Total current assets | 1,388,419 | 1,340,640 |
Property, plant and equipment, at cost | 1,245,261 | 1,160,865 |
Less accumulated depreciation and amortization | 687,132 | 646,873 |
Net property, plant and equipment | 558,129 | 513,992 |
Goodwill | 428,864 | 385,207 |
Other intangible assets, net | 175,742 | 175,956 |
Other assets | 212,257 | 114,479 |
Total assets | 2,763,411 | 2,530,274 |
Current liabilities: | ||
Current installments of long-term debt | 760 | 779 |
Notes payable to banks | 21,774 | 10,678 |
Accounts payable | 197,957 | 218,115 |
Accrued employee compensation and benefits | 83,528 | 79,291 |
Accrued expenses | 201,681 | 91,942 |
Dividends payable | 8,079 | 8,230 |
Total current liabilities | 513,779 | 409,035 |
Deferred income taxes | 47,955 | 43,489 |
Long-term debt, excluding current installments | 764,944 | 741,822 |
Defined benefit pension liability | 140,007 | 143,904 |
Operating lease liabilities | 85,817 | 0 |
Deferred compensation | 45,114 | 46,107 |
Other noncurrent liabilities | 8,904 | 10,394 |
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 |
Additional paid-in capital | 0 | 0 |
Retained earnings | 2,140,948 | 2,027,596 |
Accumulated other comprehensive income (loss) | (313,422) | (303,185) |
Cost of treasury stock, common shares of 6,356,103 in 2019 and 5,951,971 in 2018 | (743,942) | (692,549) |
Total Valmont Industries, Inc. shareholders’ equity | 1,111,484 | 1,059,762 |
Noncontrolling interest in consolidated subsidiaries | 45,407 | 75,761 |
Total shareholders’ equity | 1,156,891 | 1,135,523 |
Total liabilities and shareholders’ equity | $ 2,763,411 | $ 2,530,274 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance for doubtful accounts | $ 9,548 | $ 8,277 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized shares (in shares) | 500,000 | 500,000 |
Preferred stock, issued shares (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized shares (in shares) | 75,000,000 | 75,000,000 |
Common stock, issued shares (in shares) | 27,900,000 | 27,900,000 |
Common shares in treasury, shares | 6,356,103 | 5,951,971 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Cash flows from operating activities: | |||
Net earnings | $ 159,466 | $ 100,306 | $ 122,319 |
Adjustments to reconcile net earnings to net cash flows from operations: | |||
Depreciation and amortization | 82,264 | 82,827 | 84,957 |
Noncash loss on trading securities | 172 | 62 | (237) |
Contribution to defined benefit pension plan | (18,461) | (1,537) | (40,245) |
Impairment of property, plant and equipment | 0 | 5,000 | 0 |
Impairment of goodwill & intangible assets | 0 | 15,780 | 0 |
Loss on divestiture of grinding media business | 0 | 6,084 | 0 |
Stock-based compensation | 11,587 | 10,392 | 10,706 |
Defined benefit pension plan expense (benefit) | (513) | (2,251) | 648 |
(Gain) loss on sale of property, plant and equipment | (2,513) | (225) | (3,924) |
Deferred income taxes | 3,940 | (1,659) | 39,755 |
Changes in assets and liabilities (net of acquisitions): | |||
Receivables | 5,408 | 12,571 | (49,112) |
Inventories | 12,313 | (13,774) | (57,442) |
Prepaid expenses | 4,413 | (11,048) | (6,214) |
Contract asset - costs and profits in excess of billings | (29,274) | (32,932) | 176 |
Accounts payable | (21,410) | (1,486) | 39,405 |
Accrued expenses | 108,784 | 49 | (1,998) |
Other noncurrent liabilities | (1,274) | (10,888) | (7,228) |
Income taxes payable (refundable) | (6,944) | (4,139) | 1,108 |
Net cash flows from operating activities | 307,614 | 153,008 | 133,148 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (97,425) | (71,985) | (55,266) |
Proceeds from sale of assets | 5,556 | 63,103 | 8,185 |
Acquisitions, net of cash acquired | (81,841) | (143,020) | (5,362) |
Proceeds from settlement of net investment hedge | 11,184 | (1,621) | 5,123 |
Investments in nonconsolidated subsidiaries | (6,169) | 0 | 0 |
Other, net | 545 | (1,922) | (2,295) |
Net cash flows used in investing activities | (168,150) | (155,445) | (49,615) |
Cash flows from financing activities: | |||
Borrowings (payments) under short-term agreements | 11,327 | 10,543 | (585) |
Proceeds from long-term borrowings | 31,000 | 251,655 | 0 |
Principal payments on long-term borrowings | (10,768) | (262,191) | (887) |
Settlement of financial derivatives | 0 | (2,467) | 0 |
Debt issuance costs | 0 | (2,322) | 0 |
Dividends paid | (32,642) | (33,726) | (33,862) |
Dividends to noncontrolling interest | (7,737) | (7,055) | (5,674) |
Purchase of noncontrolling interest | (27,845) | (5,510) | 0 |
Proceeds from exercises under stock plans | 13,619 | 7,357 | 35,159 |
Purchase of treasury shares | (62,915) | (114,805) | 0 |
Purchase of common treasury shares—stock plan exercises | (12,989) | (3,589) | (26,161) |
Net cash flows used in financing activities | (98,950) | (162,110) | (32,010) |
Effect of exchange rate changes on cash and cash equivalents | (182) | (15,048) | 27,682 |
Net change in cash and cash equivalents | 40,332 | (179,595) | 79,205 |
Cash, cash equivalents, and restricted cash—beginning of year | 313,210 | 492,805 | 413,600 |
Cash, cash equivalents, and restricted cash—end of year | $ 353,542 | $ 313,210 | $ 492,805 |
CONSOLIDATED STATEMENTS OF SHAR
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 | 122,319 | 116,240 | 6,079 | ||||
Other comprehensive income (loss) | 66,787 | 67,337 | (550) | ||||
Cash dividends declared ($1.50 per share) | (33,927) | (33,927) | |||||
Dividends to noncontrolling interests | (5,674) | (5,674) | |||||
Stock plan exercises | (26,161) | (26,161) | |||||
Stock options exercised | 35,159 | (4,666) | (2,691) | 42,516 | |||
Stock option expense | 5,137 | 5,137 | |||||
Stock awards | 5,569 | (471) | 6,040 | ||||
Ending 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 | 100,306 | 94,351 | 5,955 | ||||
Other comprehensive income (loss) | (21,534) | (24,163) | 2,629 | ||||
Cash dividends declared ($1.50 per share) | (33,426) | (33,426) | |||||
Dividends to noncontrolling interests | (7,055) | (7,055) | |||||
Stock plan exercises | (3,589) | (3,589) | |||||
Stock options exercised | 7,357 | (2,397) | 1,518 | 8,236 | |||
Purchase of noncontrolling interest | (5,510) | 0 | (5,510) | ||||
Stock option expense | 4,064 | 4,064 | |||||
Stock awards | 6,328 | (1,667) | 7,995 | ||||
Addition of noncontrolling interest | 40,783 | 40,783 | |||||
Purchase of treasury shares | (114,805) | (114,805) | |||||
Ending balance at Dec. 29, 2018 | 1,135,523 | 27,900 | 0 | 2,027,596 | (303,185) | (692,549) | 75,761 |
Increase (Decrease) in Shareholders' Equity | |||||||
Net earnings | 159,466 | 153,769 | 5,697 | ||||
Other comprehensive income (loss) | (10,429) | (10,237) | (192) | ||||
Cash dividends declared ($1.50 per share) | (32,503) | (32,503) | |||||
Dividends to noncontrolling interests | (7,737) | (7,737) | |||||
Stock plan exercises | (12,989) | (12,989) | |||||
Stock options exercised | 13,619 | (3,756) | 972 | 16,403 | |||
Purchase of noncontrolling interest | (27,845) | 277 | (28,122) | ||||
Stock option expense | 2,772 | 2,772 | |||||
Stock awards | 8,815 | 707 | 8,108 | ||||
Purchase of treasury shares | (62,915) | (62,915) | |||||
Ending balance at Dec. 28, 2019 | $ 1,156,891 | $ 27,900 | $ 0 | $ 2,140,948 | $ (313,422) | $ (743,942) | $ 45,407 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per share (in dollars per share) | $ 1.50 | $ 1.50 | $ 1.50 |
Purchase of treasury shares acquired (in shares) | 491,045 | 843,278 | |
Stock plan exercises; shares acquired (in shares) | 90,868 | 27,555 | 154,437 |
Stock options exercised; shares issued (in shares) | 119,789 | 63,717 | 284,574 |
Stock awards; shares issued (in shares) | 60,021 | 61,208 | 42,846 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of Valmont Industries, Inc. and its wholly and majority‑owned subsidiaries (the Company). Investments in 20% to 50% owned affiliates and joint ventures are accounted for by the equity method. Investments in less than 20% owned affiliates are accounted for by the cost method. All intercompany items have been eliminated. Cash overdrafts Cash book overdrafts totaling $13,971 and $8,888 were classified as accounts payable at December 28, 2019 and December 29, 2018 , respectively. The Company’s policy is to report the change in book overdrafts as an operating activity in the Consolidated Statements of Cash Flows. Segments The Company has four reportable segments based on its management structure. Each segment is global in nature with a manager responsible for segment operational performance and allocation of capital within the segment. Reportable segments are as follows: ENGINEERED SUPPORT STRUCTURES: This segment consists of the manufacture and distribution of engineered metal and composite poles, towers, and components for global lighting, traffic, and wireless communication markets, engineered access systems, integrated structure solutions for smart cities, and highway safety products; UTILITY SUPPORT STRUCTURES: This segment consists of the manufacture of engineered steel and concrete structures for global utility transmission, distribution, substations, and renewable energy generation equipment; COATINGS: This segment consists of galvanizing, painting, and anodizing services to preserve and protect metal products; and IRRIGATION: This segment consists of the manufacture of agricultural irrigation equipment, parts, services, tubular products, water management solutions, and technology for precision agriculture. In addition to these four reportable segments, there are other businesses and activities which 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 until its divestiture in 2018. Fiscal Year The Company operates on a 52 or 53 week fiscal year with each year ending on the last Saturday in December. Accordingly, the Company’s fiscal years ended December 28, 2019 , December 29, 2018 and December 30, 2017 consisted of 52 weeks. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Accounts Receivable Accounts receivable are reported on the balance sheet net of any allowance for doubtful accounts. Allowances are maintained in amounts considered to be appropriate in relation to the outstanding receivables based on age of the receivable, economic conditions and customer credit quality. As the Company’s international Irrigation business has grown, the exposure to potential losses in international markets has also increased. These exposures can be difficult to estimate, particularly in areas of political instability, or with governments with which the Company has limited experience, or where there is a lack of transparency as to the current credit condition of governmental units. The Company’s allowance for doubtful accounts related to current accounts receivable was $9,548 at December 28, 2019 . Inventories Approximately 41% and 37% of inventory is valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market as of December 28, 2019 and December 29, 2018 , respectively. All other inventory is valued at the lower of cost, determined on the first-in, first-out (FIFO) method or market. Finished goods and manufactured goods inventories include the costs of acquired raw materials and related factory labor and overhead charges required to convert raw materials to manufactured and finished goods. The excess of replacement cost of inventories over the LIFO value is approximately $43,805 and $53,619 at December 28, 2019 and December 29, 2018 , respectively. Long-Lived Assets Property, plant and equipment are recorded at historical cost. The Company generally uses the straight-line method in computing depreciation and amortization for financial reporting purposes and accelerated methods for income tax purposes. The annual provisions for depreciation and amortization have been computed principally in accordance with the following ranges of asset lives: buildings and improvements 15 to 40 years, machinery and equipment 3 to 12 years, transportation equipment 3 to 24 years, office furniture and equipment 3 to 7 years and intangible assets 5 to 20 years. Depreciation expense in fiscal 2019 , 2018 and 2017 was $64,177 , $67,499 and $69,046 , respectively. An impairment loss is recognized if the carrying amount of an asset may not be recoverable and exceeds estimated future undiscounted cash flows of the asset. A recognized impairment loss reduces the carrying amount of the asset to its estimated fair value. Upon adoption of ASC 842 in 2019, the Company impaired the right-of-use (lease) asset for one of its galvanizing facilities in Australia as it will not generate sufficient cash flows to recover the carrying value. Impairment losses were recorded in 2018 as facilities were closed and future plans for certain fixed assets changed in connection with the Company's restructuring plans. The Company evaluates its reporting units for impairment of goodwill during the third fiscal quarter of each year, or when events or changes in circumstances indicate the carrying value may not be recoverable. Reporting units are evaluated using after-tax operating cash flows (less capital expenditures) discounted to present value. Indefinite‑lived intangible assets are assessed separately from goodwill as part of the annual impairment testing, using a relief-from-royalty method. If the underlying assumptions related to the valuation of a reporting unit’s goodwill or an indefinite‑lived intangible asset change materially before or after the annual impairment testing, the reporting unit or asset is evaluated for potential impairment. In these evaluations, management considers recent operating performance, expected future performance, industry conditions and other indicators of potential impairment. See footnote 8 for details of impairments recognized during 2018. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Income Taxes The Company uses the asset and liability method to calculate deferred income taxes. Deferred tax assets and liabilities are recognized on temporary differences between financial statement and tax bases of assets and liabilities using enacted tax rates. The effect of tax rate changes on deferred tax assets and liabilities is recognized in income during the period that includes the enactment date. Warranties The Company's provision for product warranty reflects management's best estimate of probable liability under its product warranties. Estimated future warranty costs are recorded at the time a sale is recognized. Future warranty liability is determined based on applying historical claim rate experience to units sold that are still within the warranty period. In addition, the Company records provisions for known warranty claims. Pension Benefits Certain expenses are incurred in connection with a defined benefit pension plan. In order to measure expense and the related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as current facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits. Derivative Instruments The Company may enter into derivative financial instruments to manage risk associated with fluctuation in interest rates, foreign currency rates or commodities. Where applicable, the Company may elect to account for such derivatives as either a cash flow, fair value, or net investment hedge. Comprehensive Income (Loss) Comprehensive income (loss) includes net income, currency translation adjustments, certain derivative-related activity and changes in net actuarial gains/losses from a pension plan. Results of operations for foreign subsidiaries are translated using the average exchange rates during the period. Assets and liabilities are translated at the exchange rates in effect on the balance sheet dates. The components of accumulated other comprehensive income (loss) consisted of the following: Foreign Currency Translation Adjustments Gain on Hedging Activities Defined Benefit Pension Plan Accumulated Other Comprehensive Income (Loss) Balance at December 29, 2018 $ (230,261 ) $ 11,171 $ (84,095 ) $ (303,185 ) Current-period comprehensive income (loss) (2,314 ) 2,905 (10,828 ) (10,237 ) Balance at December 28, 2019 $ (232,575 ) $ 14,076 $ (94,923 ) $ (313,422 ) (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Revenue Recognition On December 31, 2017, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASC 606) . The Company elected to use the modified retrospective approach for the adoption of the new revenue standard. 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 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. The Company did not have any significant contracts with an original expected duration of more than one year at December 28, 2019. 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. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 monopole product line has large regional customers who have unique product specifications for these larger 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. For wireless communication towers and components, 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. 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 fiscal years ended December 28, 2019 and December 29, 2018 is as follows: Point in Time Over Time Point in Time Over Time Fiscal year ended December 28, 2019 Fiscal year ended December 28, 2019 Fiscal year ended December 29, 2018 Fiscal year ended December 29, 2018 Utility Support Structures $ 47,450 $ 838,158 $ 16,760 $ 838,446 Engineered Support Structures 952,056 50,020 922,677 44,681 Coatings 300,640 — 286,739 — Irrigation 564,918 13,734 612,385 12,376 Other — — 23,080 — Total $ 1,865,064 $ 901,912 $ 1,861,641 $ 895,503 The Company's contract asset as of December 28, 2019 and December 29, 2018 was $141,322 and $112,525 , respectively. Both steel and concrete utility customers in North America are generally invoiced upon shipment or delivery of the goods to the customer's specified location and there are typically no up-front or progress payments. The increase in the contract asset in 2019 is attributed to an increase in finished structures that had not yet been shipped to the customers. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) At December 28, 2019 and December 29, 2018 , the liability for revenue recognized over time was $117,945 and $4,906 . The liability for customer billings in excess of costs and earnings is included in Accrued Expenses on the Consolidated Balance Sheets. During the fiscal year ended December 28, 2019 and December 29, 2018, the Company recognized $3,921 and $5,222 of revenue that was included in the liability as of December 29, 2018 and December 30, 2017. The revenue recognized was due to applying advance payments received for projects completed during the period. Use of Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the reported amounts of revenue and expenses and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. Equity Method Investments The Company has equity method investments in non-consolidated subsidiaries which are recorded within "Other assets" on the Consolidated Balance Sheets. Treasury Stock Repurchased shares are recorded as “Treasury Stock” and result in a reduction of “Shareholders’ Equity.” When treasury shares are reissued, the Company uses the last-in, first-out method, and the difference between the repurchase cost and re-issuance price is charged or credited to “Additional Paid-In Capital.” In May 2014, the Company announced a capital allocation philosophy which covered a share repurchase program. Specifically, the Board of Directors at that time authorized the purchase of up to $500,000 of the Company's outstanding common stock from time to time over twelve months at prevailing market prices, through open market or privately-negotiated transactions. In February 2015 and again in October 2018, the Board of Directors authorized an additional purchase of up to $250,000 of the Company's outstanding common stock with no stated expiration date. As of December 28, 2019 , the Company has acquired 5,922,454 shares for approximately $795,549 under this share repurchase program. Research and Development Research and development costs are charged to operations in the year incurred. These costs are a component of “Selling, general and administrative expenses” on the Consolidated Statements of Earnings. Research and development expenses were approximately $13,900 in 2019 , $11,500 in 2018 , and $11,600 in 2017 . Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases , which provides revised guidance on leases requiring lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The Company adopted this ASU in the first quarter of 2019. The Company made an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet for all classes of underlying assets. In addition, the Company elected certain practical expedients not to reassess whether existing contracts are or contain leases, to not reassess the lease classification of any existing leases, to not reassess initial direct costs for any existing leases, and to not separate lease components for all classes of underlying assets. The Company did not to recast its comparative periods in transition (the “Comparatives Under 840 Option”) as allowed under ASU 2018-11. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses on instruments within its scope, including trade receivables. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. The effective date of ASU No. 2016-13 will be the first quarter of the Company’s fiscal 2020. The Company does not expect the impact of the adoption of ASU No. 2016-13 to be significant on its consolidated financial statements. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | (2) ACQUISITIONS Acquisitions of Businesses On May 13, 2019, the Company acquired the assets of Connect-It Wireless, Inc. ("Connect-It") for $6,034 in cash. Connect-It operates in Florida and is a manufacturer and distributor of wireless site components and safety products. In the purchase price allocation, goodwill of $3,299 and customer relationships of $828 were recorded and the remainder is net working capital. A portion of the goodwill is deductible for tax purposes. Connect-It is included in the ESS segment and was acquired to expand the Company's wireless component distribution network. The purchase price allocation was finalized in the fourth quarter of 2019. On February 11, 2019, the Company acquired the outstanding shares of United Galvanizing ("United"), a provider of coatings services for $26,000 in cash. The agreed upon purchase price was $28,000 , with $2,000 being contingent on seller representations and warranties that was settled in the first quarter of 2020. The acquisition of United, located in Houston, Texas further expands the Company's galvanizing footprint in North America and will be reported in the Coatings segment. The fair values assigned were $12,374 for goodwill, $3,170 for customer relationships, trade name of $894 , $10,987 for property, plant, and equipment, and the remainder is net working capital. Goodwill is not deductible for tax purposes and the customer relationship will be amortized over 10 years . The trade name has an indefinite life. The Company finalized the purchase price allocation in the fourth quarter of 2019. On December 31, 2018, the Company acquired the assets of Larson Camouflage ("Larson"), an industry leading provider of architectural and camouflage concealment solutions for the wireless telecommunication market for $31,106 in cash. The agreed upon purchase price was $34,562 , with 10% being held back for seller representations and warranties (paid in the first quarter of 2020). Larson was acquired to grow our product offerings in the wireless communication market and will be reported in the ESS segment. The fair values assigned were $16,223 for customer relationships, $15,346 for goodwill, $1,151 for property, plant, and equipment and the remainder is net working capital. Goodwill is deductible for tax purposes and the customer relationships will be amortized over 12 years . The purchase price allocation was finalized in the fourth quarter of 2019. On October 18, 2018, the Company acquired CSP Coatings Systems of Auckland, New Zealand, a provider of a wide range of coatings services for approximately $17,711 . The acquisition further strengthens the Company's Asia-Pacific market position and will be reported in the Coatings segment. The preliminary fair values assigned were $7,373 to property, plant, and equipment, $3,113 for customer relationships, $5,120 for goodwill, with the remainder net working capital. Goodwill is not deductible for tax purposes and the customer relationships will be amortized over 10 years. The Company finalized the purchase price allocation in the second quarter of 2019. (2) ACQUISITIONS (Continued) On August 3, 2018, the Company purchased approximately 72% of the outstanding shares of Walpar, LLC ("Walpar") for $57,805 in cash. Walpar is an industry leader in the design, engineering and manufacturing of overhead sign structures for the North America transportation market. Walpar is located in Birmingham, Alabama and its operations are reported in the ESS segment. The transaction was funded with cash on hand. The acquisition of Walpar was completed to expand the Company's product offering in the sign structure market. Customer relationships will be amortized over 12 years and the trade name has an indefinite life. Goodwill is not deductible for tax purposes. In January 2019, the 28% non-controlling interest shares of Walpar, LLC were acquired for $23,082 . During the third quarter of 2019, the Company finalized its purchase price allocation including its assessment of the value of intangibles on the opening balance sheet. As a result of updated cash flow projections it was determined that a $3,500 reduction in customer relationships, along with an offsetting increase in goodwill less deferred tax, was necessary to adjust the allocation of fair value to assets acquired and liabilities assumed. The following table summarizes the fair values of the assets acquired and liabilities assumed of Walpar as of the date of acquisition: At August 3, 2018 Current assets $ 13,210 Customer relationships 28,500 Trade name 3,500 Goodwill 45,453 Total fair value of assets acquired $ 90,663 Current liabilities 2,197 Deferred taxes 7,579 Total fair value of liabilities assumed $ 9,776 Non-controlling interests 23,082 Net assets acquired $ 57,805 On August 3, 2018, the Company acquired 75% of the outstanding shares of Convert Italia SpA ("Convert") for $43,504 in cash. In the second quarter of 2019, the Company paid the former owners approximately $18,700 additional purchase price which was reflected in the contingent consideration liability on the fair value of assets and liabilities assumed on acquisition. Convert is a designer and provider of engineered solar tracker solutions that is headquartered in Italy, with offices in Brazil and Argentina. The Company acquired Convert to grow market adjacencies in the Utility Support Structures segment. (2) ACQUISITIONS (Continued) Patents and proprietary technology will be amortized over 15 years and the trade name has an indefinite life. Goodwill is not deductible for tax purposes. The fair value measurement process and purchase price allocation was finalized in the third quarter of 2019. The following table summarizes the fair values of the assets acquired and liabilities assumed of Convert at the date of acquisition: At August 3, 2018 Current assets $ 18,349 Other assets 3,166 Patent and Proprietary Technology 16,554 Trade name 8,701 Goodwill 42,169 Total fair value of assets acquired $ 88,939 Current liabilities 5,376 Contingent consideration liability 19,497 Deferred taxes 6,061 Total fair value of liabilities assumed $ 30,934 Non-controlling interests 14,501 Net assets acquired $ 43,504 On August 1, 2018, the Company acquired the operational assets of Derit Infrastructure Pvt. Ltd. ("Derit") for $14,700 in cash, net of assumed liabilities. The Company acquired the net assets at fair value with no value assigned to intangible assets in the purchase price allocation. Derit has a manufacturing facility in India with production capabilities for steel lattice structures for power transmission, wireless communication, and a provider of zinc galvanizing services. Derit was acquired to provide the Company with lattice structure manufacturing capabilities and to further expand the geographic footprint of the galvanizing business. The majority of the business will be reported in the Utility Support Structures segment, while the galvanizing business will be reported in the Coatings segment. The purchase price allocation was finalized in the fourth quarter of 2018. 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 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 purchase price allocation was finalized in the second quarter of 2018. (2) ACQUISITIONS (Continued) The Company's Consolidated Statements of Earnings for the fiscal year ended December 28, 2019 included net sales from acquisitions of $117,296 . In aggregate, these acquisitions did not contribute net earnings to the Company's consolidated 2019 results. The proforma effect of these acquisitions on the 2019, 2018, and 2017 Consolidated Statements of Earnings is as follows: Fifty-two Weeks Ended December 28, 2019 Fifty-two Weeks Ended December 29, 2018 Fifty-two Weeks Ended December 30, 2017 Net sales $ 2,772,150 $ 2,842,162 $ 2,818,035 Net earnings 154,302 98,292 122,407 Earnings per share-diluted 7.09 4.38 5.39 Acquisitions of Noncontrolling Interests In April 2019, the Company acquired the remaining 4.8% of Valmont SM that it did not own for $4,763 . 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 acquisitions of all of the remaining shares of consolidated subsidiaries with no change in control, it was recorded within shareholders' equity and as a financing cash flow in the Consolidated Statements of Cash Flows. |
DIVESTITURE
DIVESTITURE | 12 Months Ended |
Dec. 28, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURE | On April 30, 2018, the Company completed the sale of Donhad, its grinding media business in Australia, reported in the Other segment. The business was sold because it did not fit the long-term strategic plans for the Company. The grinding media business historical annual sales, operating profit, and net assets are not significant for discontinued operations presentation. The grinding media business had an operating loss of $913 for the year ended December 29, 2018, and operating income of $2,134 for the ended December 30, 2017. The Company received Australian $82,500 (U.S. $62,518 ). The pre-tax loss from the divestiture is reported in other income (expense). The loss is comprised of the proceeds from buyer, less deal-related costs, less the net assets of the business which resulted in a gain of $4,334 . Offsetting this amount is a $(10,418) realized loss on foreign exchange translation adjustments and net investment hedges previously reported in shareholders' equity. Pre-tax gain from divestiture, before recognition of currency translation loss $ 4,334 Recognition of cumulative currency translation loss and hedges (out of OCI) (10,418 ) Net pre-tax loss from divestiture of the grinding media business $ (6,084 ) |
RESTRUCTURING ACTIVITIES
RESTRUCTURING ACTIVITIES | 12 Months Ended |
Dec. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING ACTIVITIES | (4) RESTRUCTURING ACTIVITIES 2018 Plan During 2018, the Company executed certain regional restructuring activities (the "2018 Plan") primarily in the ESS and Utility segments to transform its operational business model including exiting certain local markets. The 2018 Plan included the closure of seven facilities, including three in China. The one Utility facility and one ESS facility in Europe ceased production in the second quarter of 2019. All other facilities were closed by December 29, 2018. The Company recorded the following pre-tax expenses: ESS Utility Irrigation Other/ Corporate TOTAL Severance $ 6,255 $ 1,825 $ — $ — $ 8,080 Other cash restructuring expenses 3,512 2,228 — — 5,740 Impairments of fixed assets/net loss on disposals 4,560 — — — 4,560 Total cost of sales 14,327 4,053 — — 18,380 Severance 10,654 1,100 129 — 11,883 Other cash restructuring expenses 3,151 — 51 126 3,328 Impairments of fixed assets/net loss on disposals 440 — — — 440 Total selling, general and administrative expenses 14,245 1,100 180 126 15,651 Consolidated total $ 28,572 $ 5,153 $ 180 $ 126 $ 34,031 In connection with exiting certain local markets as a result of the 2018 Plan, the Company also recorded $7,944 of impairments of current and other assets during fiscal 2018, primarily inventory. Change in the liabilities recorded for the restructuring plans were as follows: Balance at December 29, 2018 Recognized Restructuring Expense Costs Paid or Otherwise Settled Balance at December 28, 2019 Severance $ 6,594 $ — $ (6,594 ) $ — Other cash restructuring expenses 3,462 — (3,462 ) — Total $ 10,056 $ — $ (10,056 ) $ — |
CASH FLOW SUPPLEMENTARY INFORMA
CASH FLOW SUPPLEMENTARY INFORMATION | 12 Months Ended |
Dec. 28, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
CASH FLOW SUPPLEMENTARY INFORMATION | 5) CASH FLOW SUPPLEMENTARY INFORMATION The Company considers all highly liquid temporary cash investments purchased with an original maturity of three months or less at the time of purchase to be cash equivalents. Cash payments for interest and income taxes (net of refunds) for the fifty-two weeks ended December 28, 2019 and December 29, 2018 , and December 30, 2017 were as follows: 2019 2018 2017 Interest $ 39,032 $ 43,305 $ 44,528 Income taxes 43,629 47,355 63,791 The 2019 acquisition of United and Larson included hold back payments contingent on seller representations and warranties of $2,000 and $3,456 , respectively. The hold back payments were paid in the first quarter of 2020 and will be shown as an investing use of cash in the acquisitions line item of the consolidated statements of cash flows in 2020. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | (6) INVENTORIES Inventories consisted of the following at December 28, 2019 and December 29, 2018 : 2019 2018 Raw materials and purchased parts $ 158,314 $ 190,115 Work-in-process 38,088 35,566 Finished goods and manufactured goods 221,968 211,504 Subtotal 418,370 437,185 Less: LIFO reserve 43,805 53,619 $ 374,565 $ 383,566 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | (7) PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, at cost, consist of the following: 2019 2018 Land and improvements $ 111,091 $ 99,797 Buildings and improvements 364,396 348,836 Machinery and equipment 584,447 549,311 Transportation equipment 23,650 24,380 Office furniture and equipment 85,130 85,239 Construction in progress 76,547 53,302 $ 1,245,261 $ 1,160,865 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | (8) GOODWILL AND INTANGIBLE ASSETS Amortized Intangible Assets The components of amortized intangible assets at December 28, 2019 and December 29, 2018 were as follows: December 28, 2019 Gross Accumulated Weighted Customer Relationships $ 237,626 $ 149,720 13 years Patents & Proprietary Technology 24,068 6,358 14 years Other 8,054 7,035 5 years $ 269,748 $ 163,113 December 29, 2018 Gross Accumulated Weighted Customer Relationships $ 219,508 $ 132,180 13 years Patents & Proprietary Technology 23,662 4,837 14 years Other 7,971 6,891 5 years $ 251,141 $ 143,908 Amortization expense for intangible assets was $ 18,087 , $ 15,328 and $ 15,911 for the fiscal years ended December 28, 2019 , December 29, 2018 and December 30, 2017 , respectively. Estimated annual amortization expense related to finite‑lived intangible assets is as follows: Estimated 2020 $ 17,343 2021 15,298 2022 13,120 2023 11,345 2024 9,434 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. (8) GOODWILL AND INTANGIBLE ASSETS (Continued) Non-amortized intangible assets Intangible assets with indefinite lives are not amortized. The carrying values of trade names at December 28, 2019 and December 29, 2018 were as follows: December 28, December 29, Year Acquired Newmark $ 11,111 $ 11,111 2004 Webforge 9,143 8,872 2010 Valmont SM 7,966 8,155 2014 Ingal EPS/Ingal Civil Products 7,454 7,233 2010 Shakespeare 4,000 4,000 2014 Walpar 3,500 4,300 2018 Convert 8,378 8,580 2018 Other 17,555 16,472 $ 69,107 $ 68,723 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 separately from goodwill in the third quarter of 2019. The value of each trade name was determined using the relief-from-royalty method. Based on this evaluation, no trade names were determined to be impaired. The Company recorded a charge of $1,425 in the third quarter of 2018 for the offshore and other complex steel structures (Valmont SM) trade name. Goodwill The carrying amount of goodwill by segment as of December 28, 2019 and December 29, 2018 was as follows: Engineered Utility Coatings Irrigation Total Gross balance at December 29, 2018 $ 204,735 $ 123,618 $ 80,937 $ 25,164 $ 434,454 Accumulated impairment losses (18,670 ) (14,355 ) (16,222 ) — (49,247 ) Balance at December 29, 2018 186,065 109,263 64,715 25,164 $ 385,207 Acquisitions 21,870 7,889 12,374 — 42,133 Foreign currency translation 2,029 (913 ) 436 (28 ) 1,524 Balance at December 28, 2019 $ 209,964 $ 116,239 $ 77,525 $ 25,136 $ 428,864 (8) GOODWILL AND INTANGIBLE ASSETS (Continued) 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 42,216 34,280 5,120 5,503 — 87,119 Impairment — (14,355 ) — — — (14,355 ) Divestiture of grinding media — — — — (15,814 ) (15,814 ) Foreign currency translation (7,557 ) (910 ) (879 ) (117 ) — (9,463 ) Balance at December 29, 2018 $ 186,065 $ 109,263 $ 64,715 $ 25,164 $ — $ 385,207 The Company’s annual impairment test of goodwill was performed during the third quarter of 2019, using the discounted cash flow method. The estimated fair value of all of our reporting units exceeded their respective carrying value, so no goodwill was impaired. The access systems reporting unit with $45,727 of goodwill, is the reporting unit that did not have a substantial excess of estimated fair value over its carrying value. The model assumes geographic expansion of its architectural product lines with realized recent organic growth in its existing market. If architectural systems sales do not increase, the Company will be required to perform an interim test of goodwill. A hypothetical 1% change in the discount rate would increase/decrease the fair value of the reporting unit by approximately $15,000 , which approximates the cushion between estimated fair value and carrying value. In the third quarter of 2018, the Company recognized a goodwill impairment totaling $14,355 , which represented all of the goodwill of the offshore and other complex steel reporting unit. |
BANK CREDIT ARRANGEMENTS
BANK CREDIT ARRANGEMENTS | 12 Months Ended |
Dec. 28, 2019 | |
BANK CREDIT ARRANGEMENTS | |
BANK CREDIT ARRANGEMENTS | BANK CREDIT ARRANGEMENTS The Company maintains various lines of credit for short-term borrowings totaling $132,849 at December 28, 2019 . As of December 28, 2019 and December 29, 2018 , $21,774 and $10,678 was outstanding and recorded as notes payable in the Consolidated Balance Sheets, respectively. The interest rates charged on these lines of credit vary in relation to the banks’ costs of funds. The weighted average interest rate on short-term borrowings was 2.54% at December 28, 2019 . The unused and available borrowings under the lines of credit were $111,075 at December 28, 2019 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | (10) INCOME TAXES Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries are as follows: 2019 2018 2017 United States $ 175,923 $ 127,852 $ 152,372 Foreign 33,750 15,589 76,092 $ 209,673 $ 143,441 $ 228,464 In fiscal 2017, the Company estimated and recognized approximately $ 41,935 of tax expense for the 2017 Tax Act. The SEC staff issued SAB 118, which provided guidance on accounting for the tax effects of the 2017 Tax Act. (10) INCOME TAXES (Continued) The Company's accounting for the following element of the 2017 Tax Act was finalized as of December 30, 2017: Reduction of U.S. federal corporate tax rate : The 2017 Tax Act reduces the corporate tax rate to 21 percent, effective January 1, 2018. Consequently, the Company recorded a decrease related to deferred taxes of $20,372 , with a corresponding net adjustment to deferred income tax expense for the year ended December 30, 2017. The Company's accounting for the following elements of the 2017 Tax Act were provisional estimates at December 30, 2017, and were finalized as of December 29, 2018 as follows: 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 $394,000 to tax at certain specified rates less associated foreign tax credits. The Company recorded a Transition Tax obligation of $9,890 during fiscal 2017 and reduced this expense by $550 in 2018 upon finalization. At December 28, 2019, $785 of the Transition Tax has not been paid and is due in fiscal 2024. Indefinite reinvestment assertion: The Company position remains that unremitted foreign earnings subject to the Transition Tax are not indefinitely reinvested. The Company recorded foreign withholding taxes and U.S. state income taxes of $10,373 and $1,300 . This expense was recorded in 2017 with a decrease of $140 recognized in 2018 as it was finalized. In addition, the Company has taken the position that on non-U.S. subsidiaries, unremitted foreign earnings are not indefinitely reinvested and it recorded additional foreign withholding taxes and U.S. state income taxes of $754 and $43 , respectively during 2019. Income tax expense (benefit) consists of: 2019 2018 2017 Current: Federal $ 27,809 $ 21,106 $ 49,324 State 5,568 6,585 4,415 Foreign 13,130 17,559 12,880 46,507 45,250 66,619 Non-current: (240 ) (456 ) (229 ) Deferred: Federal 2,108 213 (9,626 ) State 553 9 (385 ) Foreign 1,279 (1,881 ) 49,766 3,940 (1,659 ) 39,755 $ 50,207 $ 43,135 $ 106,145 (10) INCOME TAXES (Continued) The reconciliations of the statutory federal income tax rate and the effective tax rate follows: 2019 2018 2017 Statutory federal income tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 2.5 3.5 1.4 Carryforwards, credits and changes in valuation allowances (1.0 ) 3.2 (1.4 ) Foreign tax rate differences 0.3 (1.0 ) (4.1 ) Changes in unrecognized tax benefits (0.1 ) (0.3 ) (0.1 ) Domestic production activities deduction — — (2.1 ) Goodwill impairment — 2.2 — Effects of 2017 Tax Act — (0.5 ) 18.4 Other 1.3 2.0 (0.6 ) 24.0 % 30.1 % 46.5 % Fiscal 2018 includes $3,171 of tax expense related to non-tax deductible goodwill and $6,756 of tax expense primarily related to restructuring charges for which no tax benefits have been recorded due to the increase in valuation allowance. Fiscal 2017 includes $41,935 of tax expense related to the 2017 Tax Act. Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating loss and tax credit carryforwards. The tax effects of significant items comprising the Company’s net deferred income tax liabilities are as follows: 2019 2018 Deferred income tax assets: Accrued expenses and allowances $ 16,148 $ 8,268 Tax credits and loss carryforwards 64,116 56,867 Defined benefit pension liability 35,539 36,328 Inventory allowances 5,599 3,320 Accrued compensation and benefits 14,122 13,122 Lease liabilities 21,763 — Deferred compensation 15,174 16,228 Gross deferred income tax assets 172,461 134,133 Valuation allowance (35,215 ) (33,228 ) Net deferred income tax assets 137,246 100,905 Deferred income tax liabilities: Property, plant and equipment 31,628 25,477 Intangible assets 49,686 44,850 Lease assets 22,066 — Other deferred tax liabilities 6,067 7,291 Total deferred income tax liabilities 109,447 77,618 Net deferred income tax asset $ 27,799 $ 23,287 (10) INCOME TAXES (Continued) ASC 740 requires an entity to disclose the approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets. As a result, the 2018 component of Deferred compensation in the amount of $28,706 has been disaggregated into Deferred compensation and Accrued compensation and benefits in the amounts of $16,228 and $12,478 , respectively. In addition, several components previously considered to be significant but no longer rise to a significant level have been aggregated. The 2018 components that have been aggregated are $3,914 of Accrued warranty aggregated with Accrued expenses and allowances, $644 of Accrued insurance aggregated with Accrued compensation and benefits, $1,064 of Work in progress aggregated with Inventory allowances, and $2,746 of Future repatriation of foreign earnings aggregated with Other deferred tax liabilities. Deferred income tax assets (liabilities) are presented as follows on the Consolidated Balance Sheets: Balance Sheet Caption 2019 2018 Other assets $ 75,754 $ 66,776 Deferred income taxes (47,955 ) (43,489 ) Net deferred income tax asset $ 27,799 $ 23,287 Management of the Company has reviewed recent operating results and projected future operating results. The Company's belief that realization of its net deferred tax assets is more likely than not is based on, among other factors, changes in operations that have occurred in recent years and available tax planning strategies. At December 28, 2019 and December 29, 2018 respectively, there were $64,116 and $56,867 relating to tax credits and loss carryforwards. Valuation allowances have been established for certain losses that reduce deferred tax assets to an amount that will, more likely than not, be realized. The deferred tax assets at December 28, 2019 that are associated with tax loss and tax credit carryforwards not reduced by valuation allowances expire in periods starting 2023. Uncertain tax positions included in other non-current liabilities are evaluated in a two-step process, whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more likely than not recognition threshold, the Company would recognize the largest amount of tax benefit that is greater than fifty percent likely to be realized upon ultimate settlement with the related tax authority. The following summarizes the activity related to our unrecognized tax benefits in 2019 and 2018 , in thousands: 2019 2018 Gross unrecognized tax benefits—beginning of year $ 2,599 $ 3,196 Gross increases—tax positions in prior period 29 103 Gross decreases—tax positions in prior period — (199 ) Gross increases—current‑period tax positions 593 280 Settlements with taxing authorities (150 ) (50 ) Lapse of statute of limitations (771 ) (731 ) Gross unrecognized tax benefits—end of year $ 2,300 $ 2,599 There are approximately $685 of uncertain tax positions for which reversal is reasonably possible during the next 12 months due to the closing of the statute of limitations. The nature of these uncertain tax positions is generally the computation of a tax deduction or tax credit. During 2019, the Company recorded a reduction of its gross unrecognized tax benefit of $771 with $609 recorded as a reduction of income tax expense, due to the expiration of statutes of limitation in the United States. During 2018, the Company recorded a reduction of its gross unrecognized tax benefit of $731 , with $577 recorded as a reduction of its income tax expense, due to the expiration of statutes of limitation in the United States. In (10) INCOME TAXES (Continued) addition to these amounts, there was an aggregate of $178 and $196 of interest and penalties at December 28, 2019 and December 29, 2018 , respectively. The Company’s policy is to record interest and penalties directly related to income taxes as income tax expense in the Consolidated Statements of Earnings. The Company files income tax returns in the U.S. and various states as well as foreign jurisdictions. Tax years 2016 and forward remain open under U.S. statutes of limitation. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $2,224 and $2,536 at December 28, 2019 and December 29, 2018 , respectively. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | (11) LONG-TERM DEBT Long-term debt is as follows: December 28, December 29, 5.00% senior unsecured notes due 2044(a) $ 450,000 $ 450,000 5.25% senior unsecured notes due 2054(b) 305,000 305,000 Unamortized discount on 5.00% and 5.25% senior unsecured notes (a)(b) (21,143 ) (21,468 ) Revolving credit agreement (c) 29,044 5,719 IDR Bonds(d) 8,500 8,500 Other notes 2,089 2,918 Debt issuance costs (7,786 ) (8,068 ) Long-term debt 765,704 742,601 Less current installments of long-term debt 760 779 Long-term debt, excluding current installments $ 764,944 $ 741,822 (a) The 5.00% senior unsecured notes due 2044 include an aggregate principal amount of $450,000 on which interest is paid and an unamortized discount balance of $13,675 at December 28, 2019 . The notes bear interest at 5.000% per annum and are due on October 1, 2044. The discount will be amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. (b) The 5.25% senior unsecured notes due 2054 include an aggregate principal amount of $305,000 on which interest is paid and an unamortized discount balance of $7,468 at December 28, 2019 . The notes bear interest at 5.250% per annum and are due on October 1, 2054. The discount will be amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. (c) The amended and restated revolving credit facility with JP Morgan Chase Bank, N.A., as Administrative Agent, and the other lenders party thereto has a maturity date of October 18, 2022. The credit facility provides for $600,000 of committed unsecured revolving credit loans with available borrowings thereunder to $400,000 in foreign currencies. We may increase the credit facility by up to an additional $200,000 at any time, subject to lenders increasing the amount of their commitments. The interest rate on the borrowings will be, at the Company's option, either: (i) LIBOR (based on a 1, 2, 3 or 6 month interest period, as selected by the Company) plus 100 to 162.5 basis points, depending on the credit rating of the Company's senior debt published by Standard & Poor's Rating Services and Moody's Investors Service, Inc., or; (11) LONG-TERM DEBT (Continued) (ii) the higher of • the prime lending rate , • the Federal Funds rate plus 50 basis points, and • LIBOR (based on a 1 month interest period) plus 100 basis points, plus, in each case, 0 to 62.5 basis points, depending on the credit rating of the Company's senior debt published by Standard & Poor's Rating Services and Mood's Investors Service, Inc. At December 28, 2019 , the Company had $29,044 outstanding borrowings under the revolving credit facility. The revolving credit facility has a maturity date of October 18, 2022 and contains certain financial covenants that may limit additional borrowing capability under the agreement. At December 28, 2019 , the Company had the ability to borrow $556,569 under this facility, after consideration of standby letters of credit of $14,608 associated with certain insurance obligations. We also maintain certain short-term bank lines of credit totaling $132,849 , $111,075 of which was unused at December 28, 2019 . (d) The Industrial Development Revenue Bonds were issued to finance the construction of a manufacturing facility in Jasper, Tennessee. Variable interest is payable until final maturity on June 1, 2025. The effective interest rates at December 28, 2019 and December 29, 2018 were 2.73% and 3.27% respectively. The lending agreements include certain maintenance covenants, including financial leverage and interest coverage. The Company was in compliance with all financial debt covenants at December 28, 2019 . The minimum aggregate maturities of long-term debt for each of the five years following 2019 are: $760 , $761 , $568 , $0 and $0 . The obligations arising under the 5.00% senior unsecured notes due 2044, the 5.25% senior unsecured notes due 2054, and the revolving credit facility are guaranteed by the Company and its wholly-owned subsidiaries PiRod, Inc., Valmont Coatings, Inc., Valmont Newmark, Inc., and Valmont Queensland Pty. Ltd. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | (12) STOCK-BASED COMPENSATION 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, restricted stock awards, restricted stock units, and bonuses of common stock. At December 28, 2019 , 1,208,223 shares of common stock remained available for issuance under the plans. Shares and options issued and available are subject to changes in capitalization. The Company’s policy is to issue shares upon exercise of stock options or vesting of restricted stock units or issuance of restricted stock from treasury shares held by the Company. Under the stock option plans, the exercise price of each option equals the market price at the time of the grant. Options vest beginning on the first anniversary of the grant in equal amounts over three years or on the fifth anniversary of the grant. Expiration of grants is seven years from the date of grant. Restricted stock units and awards generally vest in equal installments over three years beginning on the first anniversary of the grant. The Company recorded $11,587 , $10,392 and $10,706 of compensation expense (included in selling, general and administrative expenses) in the 2019 , 2018 and 2017 fiscal years for all share-based compensation programs, respectively. The associated tax benefits recorded in the 2019 , 2018 and 2017 fiscal years was $2,897 , $2,598 and $4,068 , respectively. At December 28, 2019 , the amount of unrecognized stock option compensation expense, to be recognized over a weighted average period of 2.31 years, was approximately $4,979 . (12) STOCK-BASED COMPENSATION (Continued) The Company uses a binomial option pricing model to value its stock options. The fair value of each option grant made in 2019 , 2018 and 2017 was estimated using the following assumptions: 2019 2018 2017 Expected volatility 33.13 % 33.39 % 33.76 % Risk-free interest rate 1.69 % 2.67 % 2.12 % Expected life from vesting date 3.0 yrs 3.0 yrs 3.0 yrs Dividend yield 1.07 % 1.07 % 1.17 % Following is a summary of the stock option activity during 2017 , 2018 and 2019 : Number of Weighted Weighted Aggregate Outstanding at December 31, 2016 793,173 $ 122.77 Granted 67,965 164.35 Exercised (284,574 ) 121.92 Forfeited (5,942 ) 104.26 Outstanding at December 30, 2017 570,622 $ 128.34 4.66 $ 21,806 Options vested or expected to vest at December 30, 2017 558,114 $ 128.00 4.63 21,517 Options exercisable at December 30, 2017 351,794 $ 123.90 3.94 15,005 The weighted average per share fair value of options granted during 2017 was $ 43.68 . Number of Weighted Weighted Aggregate Outstanding at December 30, 2017 570,622 $ 128.34 Granted 105,135 112.08 Exercised (63,717 ) 106.26 Forfeited (33,627 ) 129.52 Outstanding at December 29, 2018 578,413 $ 127.74 4.35 $ 909 Options vested or expected to vest at December 29, 2018 565,952 $ 127.84 4.30 909 Options exercisable at December 29, 2018 405,128 $ 126.61 3.47 909 (12) STOCK-BASED COMPENSATION (Continued) The weighted average per share fair value of options granted during 2018 was $ 30.48 . Number of Weighted Weighted Aggregate Outstanding at December 29, 2018 578,413 $ 127.74 Granted 57,648 147.31 Exercised (119,789 ) 113.02 Forfeited (27,712 ) 137.07 Outstanding at December 28, 2019 488,560 $ 133.13 4.04 $ 9,291 Options vested or expected to vest at December 28, 2019 478,575 $ 133.21 3.99 9,078 Options exercisable at December 28, 2019 341,828 $ 133.32 3.19 6,470 The weighted average per share fair value of options granted during 2019 was $ 37.85 . Following is a summary of the status of stock options outstanding at December 28, 2019 : Outstanding and Exercisable By Price Range Options Outstanding Options Exercisable Exercise Price Number Weighted Weighted Number Weighted $104.47 - 112.08 183,658 4.59 years $ 108.58 113,866 $ 106.43 $123.87 - 132.84 70,396 1.95 years 132.70 70,396 132.70 $142.67 - 164.35 234,506 4.24 years 152.75 157,566 152.97 488,560 341,828 In accordance with shareholder-approved plans, the Human Resource Committee of the Board of Directors may grant stock under various stock‑based compensation arrangements, including restricted stock awards, restricted stock units, and stock issued in lieu of cash bonuses. Under such arrangements, stock is issued without direct cost to the employee. The restricted stock units are settled in Company stock when the restriction period ends. Restricted stock units and awards generally vest in equal installments over three years beginning on the first anniversary of the grant. During fiscal 2019 , 2018 and 2017 , the Company granted restricted stock units to directors and certain management employees as follows (which are not included in the above stock plan activity tables): 2019 2018 2017 Shares granted 78,318 88,127 62,160 Weighted‑average per share price on grant date $ 145.89 $ 114.89 $ 163.18 Recognized compensation expense $ 8,815 $ 6,328 $ 5,569 At December 28, 2019 the amount of deferred stock‑based compensation granted, to be recognized over a weighted‑average period of 1.70 years, was approximately $19,501 . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | (13) EARNINGS PER SHARE The following table provides a reconciliation between Basic and Diluted earnings per share (EPS): Basic EPS Dilutive Diluted EPS 2019: Net earnings attributable to Valmont Industries, Inc. $ 153,769 $ — $ 153,769 Weighted average shares outstanding (000's) 21,659 110 21,769 Per share amount $ 7.10 $ 0.04 $ 7.06 2018: Net earnings attributable to Valmont Industries, Inc. $ 94,351 $ — $ 94,351 Weighted average shares outstanding (000's) 22,306 140 22,446 Per share amount $ 4.23 $ 0.03 $ 4.20 2017: Net earnings attributable to Valmont Industries, Inc. $ 116,240 $ — $ 116,240 Weighted average shares outstanding (000's) 22,520 218 22,738 Per share amount $ 5.16 $ 0.05 $ 5.11 Basic and diluted net earnings and earnings per share in fiscal 2018 was impacted by impairments of goodwill and intangible assets of $14,736 after-tax ( $0.66 per share), restructuring expenses and non-recurring asset impairments arising from exiting certain local markets of $37,779 after-tax ( $1.68 per share), refinancing of long-term debt expenses of $11,115 after-tax ( $0.50 per share), and a loss from the divestiture of the grinding media business of $5,350 after-tax ( $0.24 per share). Basic and diluted net earnings and earnings per share in fiscal 2017 were impacted by the 2017 Tax Act enacted on December 22, 2017 by the U.S. government. We remeasured our U.S. deferred income tax assets using a blended rate of 25.0% recognizing deferred income tax expense of approximately $20,372 ( $0.90 per share). We also recorded a provision charge of approximately $9,890 ( $0.44 per share) of income tax expense for the deemed repatriation transition tax and $11,673 ( $0.51 per share) of deferred expenses related to foreign withholding taxes and U.S. state income taxes. Earnings per share are computed independently for each of the quarters. Therefore, the sum of the quarterly earnings per share may not equal the total for the year. At the end of fiscal years 2019 , 2018 , and 2017 there were 130,704 , 406,806 , and 0 outstanding stock options, respectively, with exercise prices exceeding the market price of common stock that were excluded from the computation of diluted earnings per share, respectively. |
EMPLOYEE RETIREMENT SAVINGS PLA
EMPLOYEE RETIREMENT SAVINGS PLAN | 12 Months Ended |
Dec. 28, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE RETIREMENT SAVINGS PLAN | (14) EMPLOYEE RETIREMENT SAVINGS PLAN Established under Internal Revenue Code Section 401(k), the Valmont Employee Retirement Savings Plan (“VERSP”) is a defined contribution plan available to all eligible employees. Participants can elect to contribute up to 50% of annual pay, on a pretax and/or after-tax basis. The Company also makes contributions to the Plan and a non-qualified deferred compensation plan for certain Company executives. The 2019 , 2018 and 2017 Company contributions to these plans amounted to approximately $12,600 , $12,300 and $11,800 respectively. The Company sponsors a fully‑funded, non-qualified deferred compensation plan for certain Company executives who otherwise would be limited in receiving company contributions into VERSP under Internal Revenue Service regulations. The invested assets and related liabilities of these participants were approximately $36,290 and $37,516 at December 28, 2019 and December 29, 2018 , respectively. Such amounts are included in “Other assets” and “Deferred compensation” on the Consolidated Balance Sheets. Amounts distributed from the Company’s non-qualified deferred compensation plan to participants under the transition rules of section 409A of the Internal Revenue Code were approximately $8,335 and $2,352 at December 28, 2019 and December 29, 2018 , respectively. All distributions were made in cash. |
DISCLOSURES ABOUT THE FAIR VALU
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | (15) DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amount of cash and cash equivalents, receivables, accounts payable, notes payable to banks and accrued expenses approximate fair value because of the short maturity of these instruments. The fair values of each of the Company’s long-term debt instruments are based on the amount of future cash flows associated with each instrument discounted using the Company’s current borrowing rate for similar debt instruments of comparable maturity (Level 2). The fair value estimates are made at a specific point in time and the underlying assumptions are subject to change based on market conditions. At December 28, 2019 , the carrying amount of the Company’s long-term debt was $765,704 with an estimated fair value of approximately $826,413 . At December 29, 2018 , the carrying amount of the Company’s long-term debt was $742,601 with an estimated fair value of approximately $683,602 . For financial reporting purposes, a three‑level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date is used. Inputs refers broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: • Level 1: Quoted market prices in active markets for identical assets or liabilities. • Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. • Level 3: Unobservable inputs that are not corroborated by market data. The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value. Trading Securities: The assets and liabilities recorded for the investments held in the Valmont Deferred Compensation Plan of $36,290 ( $37,516 in 2018 ) represent mutual funds, invested in debt and equity securities, classified as trading securities, considering the employee’s ability to change investment allocation of their deferred compensation at any time. The Company's remaining ownership in Delta EMD Pty. Ltd. (JSE:DTA) of $210 ( $2,508 in 2018 ) is recorded at fair value at December 28, 2019 . Quoted market prices are available for these securities in an active market and therefore categorized as a Level 1 input. These securities are included in Other Assets on the Consolidated Balance Sheets. Derivative Financial Instruments: The fair value of foreign currency and commodity forward and cross currency contracts is based on a valuation model that discounts cash flows resulting from the differential between the contract price and the market-based forward rate. (15) DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued) Fair Value Measurement Using: Carrying Value December 28, 2019 Quoted Prices in Significant Other Significant Assets: Trading securities $ 36,500 $ 36,500 $ — $ — Derivative financial instruments, net 3,247 — 3,247 — Fair Value Measurement Using: Carrying Value December 29, 2018 Quoted Prices in Significant Other Significant Assets: Trading securities $ 40,024 $ 40,024 $ — $ — Derivative financial instruments, net $ 9,147 $ — 9,147 $ — |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | (16) DERIVATIVE FINANCIAL INSTRUMENTS The Company manages interest rate risk, commodity price risk, and foreign currency risk related to foreign currency denominated transactions and investments in foreign subsidiaries. Depending on the circumstances, the Company may manage these risks by utilizing derivative financial instruments. Some derivative financial instruments are marked to market and recorded in the Company's consolidated statements of earnings, while others may be accounted for as fair value, cash flow, or net investment hedges. The Company had open foreign currency forward contracts that are marked to market at December 28, 2019, which are insignificant and thus excluded from the tables below. Derivative financial instruments have credit and market risk. The Company manages these risks of derivative instruments by monitoring limits as to the types and degree of risk that can be taken, and by entering into transactions with counterparties who are recognized, stable multinational banks. Fair value of derivative instruments at December 28, 2019 and December 29, 2018 are as follows: Derivatives designated as hedging instruments: Balance sheet location December 28, 2019 December 29, 2018 Commodity forward contracts Prepaid expenses and other assets $ — $ (285 ) Foreign currency forward contracts Prepaid expenses and other assets 2,119 8,357 Cross currency swap contracts Prepaid expenses and other assets 1,128 1,075 $ 3,247 $ 9,147 (16) DERIVATIVE FINANCIAL INSTRUMENTS (Continued) Gains (losses) on derivatives recognized in the consolidated statements of earnings for the years ended December 28, 2019 , December 29, 2018 , and December 30, 2017 are as follows: Derivatives designated as hedging instruments: Statements of earnings location 2019 2018 2017 Commodity forward contracts Product cost of sales $ (2,130 ) $ 1,021 $ — Foreign currency forward contracts Loss from divestiture of grinding media business — (1,215 ) — Foreign currency forward contracts Other income (expense) 950 782 — Interest rate contracts Interest expense (64 ) (423 ) (74 ) Cross currency swap contracts Interest expense 2,823 828 — $ 1,579 $ 993 $ (74 ) Cash Flow Hedges In 2019 and 2018, the Company entered into steel hot rolled coil (HRC) forward contracts which qualified as a cash flow hedge of the variability in the cash flows attributable to future steel purchases. In 2019, the forward contracts had a notional amount of $12,128 for the purchase of 3,500 short tons for each month from May 2019 to September 2019. In 2018, the forward contracts entered into had a notional amount of $8,469 for the purchase of 3,500 short tons for each month from July 2018 to September 2018 and a notional amount of $15,563 for the purchase of 6,500 short tons for each month from October 2018 to December 2018. The gain (loss) realized upon settlement is recorded in product cost of sales in the consolidated statements of earnings over average inventory turns. On June 19, 2018, the Company issued and sold $200,000 aggregate principal amount of the Company’s 5.00% senior notes due 2044 and $55,000 aggregate principal amount of the Company’s 5.25% senior notes due 2054. During the second quarter of 2018, the Company executed contracts to hedge the risk of potential fluctuations in the treasury rates on the 2044 Notes and 2054 Notes which would change the amount of net proceeds received from the debt offering. These contracts had a combined notional amount of $175,000 . On June 8, 2018, these contracts were settled with the Company paying $2,467 to the counterparties which was recorded in OCI and will be amortized as an increase to interest expense over the term of the debt. Due to the retirement of the 2020 bonds in July 2018, the Company wrote off the remaining $411 unamortized loss on the related cash flow hedge. Net Investment Hedges In the second quarter of 2019, all net investment hedges incepted in 2018 were early settled and the Company received proceeds of $11,184 , which will remain in OCI until either the sale or substantially complete liquidation of the related subsidiaries. In the second quarter of 2019, the Company entered into a foreign currency forward contract to mitigate foreign currency risk of the Company's investment in its Australian dollar denominated businesses. The forward contract qualifies as a net investment hedge and has a maturity date of April 2021 and a notional amount to sell Australian dollars to receive $100,000 . The Australian dollar forward contract effectiveness was assessed under the spot method with forward points excluded totaling $881 , which the Company has elected to amortize in other income (expense) in the consolidated statements of earnings using the straight-line method over the remaining term of the contract. (16) DERIVATIVE FINANCIAL INSTRUMENTS (Continued) In the second quarter of 2019, the Company entered into two fixed-for-fixed cross currency swaps ("CCS"), swapping U.S. dollar principal and interest payments on a portion of its 5.00% senior unsecured notes due 2044 for Danish krone (DKK) and euro denominated payments. The CCS were entered into in order to mitigate foreign currency risk on the Company's euro and DKK investments and to reduce interest expense. Interest is exchanged twice per year on April 1 and October 1. Key terms of the two CCS are as follows: Currency Notional Amount Termination Date Swapped Interest Rate Net Settlement Amount Danish Krone (DKK) $ 50,000 April 1, 2024 2.68% DKK 333,625 Euro $ 80,000 April 1, 2024 2.825% €71,550 The Company designated the full notional amount of the three CCS ( $130,000 ) as a hedge of the net investment in certain Danish and European subsidiaries under the spot method, with all changes in the fair value of the CCS that are included in the assessment of effectiveness (changes due to spot foreign exchange rates) are recorded as cumulative foreign currency translation within OCI, and will remain in OCI until either the sale or substantially complete liquidation of the related subsidiaries. Net interest receipts will be recorded as a reduction of interest expense over the life of the CCS. |
GUARANTEES
GUARANTEES | 12 Months Ended |
Dec. 28, 2019 | |
Guarantees [Abstract] | |
GUARANTEES | (17) GUARANTEES The Company’s product warranty accrual reflects management’s best estimate of probable liability under its product warranties. Historical product claims data is used to estimate the cost of product warranties at the time revenue is recognized. Changes in the product warranty accrual, which is recorded in “Accrued expenses”, for the years ended December 28, 2019 and December 29, 2018 , were as follows: 2019 2018 Balance, beginning of period $ 17,008 $ 20,109 Payments made (17,484 ) (18,920 ) Change in liability for warranties issued during the period 16,080 13,566 Change in liability for pre-existing warranties (2,072 ) 2,253 Balance, end of period $ 13,532 $ 17,008 |
COMMITMENTS & CONTINGENCIES
COMMITMENTS & CONTINGENCIES | 12 Months Ended |
Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS & CONTINGENCIES | (18) COMMITMENTS & CONTINGENCIES |
DEFINED BENEFIT RETIREMENT PLAN
DEFINED BENEFIT RETIREMENT PLAN | 12 Months Ended |
Dec. 28, 2019 | |
Defined Benefit Plan [Abstract] | |
DEFINED BENEFIT RETIREMENT PLAN | (19) DEFINED BENEFIT RETIREMENT PLAN Delta Ltd., a wholly-owned subsidiary of the Company, is the sponsor of the Delta Pension Plan ("Plan"). The Plan provides defined benefit retirement income to eligible employees in the United Kingdom. Pension retirement benefits to qualified employees are 1.67% of final salary per year of service upon reaching the age of 65 years. This Plan has no active employees as members at December 28, 2019 . Funded Status The Company recognizes the overfunded or underfunded status of the pension plan as an asset or liability. The funded status represents the difference between the projected benefit obligation (PBO) and the fair value of the plan assets. The PBO is the present value of benefits earned to date by plan participants, including the effect of assumed future salary increases (if applicable) and inflation. Plan assets are measured at fair value. Because the pension plan is denominated in British pounds sterling, the Company used exchange rates of $1.269 /£ and $1.308 /£ to translate the net pension liability into U.S. dollars at December 29, 2018 and December 28, 2019 , respectively. The net funded status of $140,007 at December 28, 2019 is recorded as a noncurrent liability. Projected Benefit Obligation and Fair Value of Plan Assets —The accumulated benefit obligation (ABO) is the present value of benefits earned to date, assuming no future compensation growth. As there are no active employees in the plan, the ABO is equal to the PBO for all years presented. The underfunded ABO represents the difference between the PBO and the fair value of plan assets. On October 26, 2018, the High Court of Justice in the United Kingdom ruled that pension plans which offered guaranteed minimum pension ("GMP") benefits between 1990 and 1997 must ensure the benefit accrued between men and women were equal. The Company estimated the cost of GMP equalization at £9,500 , which is being treated as a prior service cost at December 29, 2018. Changes in the PBO and fair value of plan assets for the pension plan for the period from December 30, 2017 to December 29, 2018 were as follows: Projected Plan Funded Fair Value at December 30, 2017 $ 783,301 $ 593,749 $ (189,552 ) Employer contributions — 1,537 Interest cost 17,878 — Prior service costs - GMP equalization 12,056 — Actual return on plan assets — (32,120 ) Benefits paid (28,207 ) (28,207 ) Actuarial (gain) loss (95,480 ) — Currency translation (42,108 ) (31,423 ) Fair Value at December 29, 2018 $ 647,440 $ 503,536 $ (143,904 ) (19) DEFINED BENEFIT RETIREMENT PLAN (Continued) Changes in the PBO and fair value of plan assets for the pension plan for the period from December 29, 2018 to December 28, 2019 were as follows: Projected Plan Funded Fair Value at December 29, 2018 $ 647,440 $ 503,536 $ (143,904 ) Employer contributions — 18,461 Interest cost 16,923 — Actual return on plan assets — 86,081 Benefits paid (20,769 ) (20,769 ) Actuarial (gain) loss 79,485 — Currency translation 21,324 17,087 Fair Value at December 28, 2019 $ 744,403 $ 604,396 $ (140,007 ) Pre-tax amounts recognized in accumulated other comprehensive income (loss) as of December 28, 2019 and December 29, 2018 consisted of actuarial gains (losses): Balance December 30, 2017 $ (168,250 ) Actuarial gain 44,760 Prior service costs - GMP equalization (12,056 ) Currency translation gain (loss) 5,358 Balance December 29, 2018 (130,188 ) Actuarial gain (loss) (10,839 ) Currency translation gain (loss) (2,699 ) Balance December 28, 2019 $ (143,726 ) The estimated amount to be amortized from accumulated other comprehensive income into net periodic benefit cost in 2020 is approximately $3,008 . Assumptions —The weighted-average actuarial assumptions used to determine the benefit obligation at December 28, 2019 and December 29, 2018 were as follows: Percentages 2019 2018 Discount rate 2.05 % 2.90 % Salary increase N/A N/A CPI inflation 2.15 % 2.20 % RPI inflation 3.05 % 3.30 % Expense Pension expense is determined based upon the annual service cost of benefits (the actuarial cost of benefits earned during a period) and the interest cost on those liabilities, less the expected return on plan assets. The expected long-term rate of return on plan assets is applied to the fair value of plan assets. Differences in actual experience in relation to assumptions are not recognized in net earnings immediately, but are deferred and, if necessary, amortized as pension expense. (19) DEFINED BENEFIT RETIREMENT PLAN (Continued) The components of the net periodic pension expense for the fiscal years ended December 28, 2019 and December 29, 2018 were as follows: 2019 2018 Net Periodic Benefit Cost: Interest cost $ 16,923 $ 17,878 Expected return on plan assets (20,000 ) (23,175 ) Amortization of prior service cost 513 — Amortization of actuarial loss 2,051 3,046 Net periodic benefit expense (benefit) $ (513 ) $ (2,251 ) Assumptions —The weighted-average actuarial assumptions used to determine expense are as follows for fiscal 2019 and 2018 : Percentages 2019 2018 Discount rate 2.90 % 2.55 % Expected return on plan assets 4.25 % 4.29 % CPI Inflation 2.20 % 2.20 % RPI Inflation 3.30 % 3.30 % The discount rate is based on the yields of AA-rated corporate bonds with durational periods similar to that of the pension liabilities. The expected return on plan assets is based on our asset allocation mix and our historical return, taking into account current and expected market conditions. Inflation is based on expected changes in the consumer price index or the retail price index in the U.K. depending on the relevant plan provisions. Cash Contributions The Company completed negotiations with Plan trustees in 2019 regarding annual funding for the Plan. The annual contributions into the Plan are $17,132 (/£ 13,100 ) per annum as part of the Plan’s recovery plan, along with a contribution to cover the administrative costs of the Plan of approximately $1,700 (/£ 1,300 ) per annum. Benefit Payments The following table details expected pension benefit payments for the years 2020 through 2029: 2020 $ 21,840 2021 22,494 2022 23,148 2023 23,802 2024 24,587 Years 2024 - 2029 134,442 (19) DEFINED BENEFIT RETIREMENT PLAN (Continued) Asset Allocation Strategy The investment strategy for pension plan assets is to maintain a diversified portfolio consisting of • Long-term fixed‑income securities that are investment grade or government‑backed in nature; • Common stock mutual funds in U.K. and non-U.K. companies, and; • Diversified growth funds, which are invested in a number of investments, including common stock, fixed income funds, properties and commodities. The Plan, as required by U.K. law, has an independent trustee that sets investment policy. The general strategy is to invest approximately 50% of the assets of the plan in common stock mutual funds and diversified growth funds, with the remainder of the investments in long-term fixed income securities, including corporate bonds and index-linked U.K. gilts. The trustees regularly consult with representatives of the plan sponsor and independent advisors on such matters. The pension plan investments are held in a trust. The weighted‑average maturity of the corporate bond portfolio was 13 years at December 28, 2019 . Fair Value Measurements The pension plan assets are valued at fair value. The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Leveraged inflation-linked gilts (LDIs) —LDIs are a combination of U.K. government-backed securities (such as bonds or other fixed income securities issued directly by the U.K. Treasury) money market instruments, and derivatives combined to give leveraged exposure to changes in the U.K. long-term interest and inflation rates. These funds are expected to offset a proportion of the impact changes in the long-term interest and inflation rates in the U.K. have on the pension plan's benefit plan obligation liability. The fair value recorded by the Plan is calculated using net asset value (NAV) for each investment. Temporary Cash Investments – These investments consist of British pound sterling, reported in terms of U.S. dollars based on currency exchange rates readily available in active markets. These temporary cash investments are classified as Level 1 investments. Corporate Bonds —Corporate bonds and debentures consist of fixed income securities issued by U.K. corporations. The fair value recorded by the Plan is calculated using NAV for each investment. Corporate Stock —This investment category consists of common and preferred stock, including mutual funds, issued by U.K. and non-U.K. corporations. The fair value recorded by the Plan is calculated using NAV for each investment, except for one small holding that is actively traded (which is the level 1 investment). Diversified growth funds - This investment category consists of diversified investment funds, whose holdings include common stock, fixed income funds, properties and commodities of U.K. and non-U.K. securities. The fair value recorded by the Plan is calculated using NAV for each investment. (19) DEFINED BENEFIT RETIREMENT PLAN (Continued) Secured income asset (SIA) funds - This investment category consists of holdings which will have a high level of expected inflation linkage. Examples of underlying assets classes are rental streams and infrastructure debt. Due to the private nature of these investments, pricing inputs are not readily observable. Asset valuations are developed by the fund manager. These valuations are based on the application of public market multiples to private company cash flows, market transactions that provide valuation information for comparable companies, and other methods. The fair value recorded by the Plan is calculated using NAV. At December 31, 2019 and December 31, 2018, the pension plan assets measured at fair value on a recurring basis were as follows: December 31, 2019 Quoted Prices in Significant Other Significant Total Plan assets at fair value: Temporary cash investments $ 38,388 $ — $ — $ 38,388 Corporate stock — — — — Total plan net assets at fair value $ 38,388 $ — $ — $ 38,388 Plan assets at NAV: Leveraged inflation-linked gilt funds 123,637 Corporate bonds 97,638 Corporate stock 234,612 Secured income asset funds 110,121 Total plan assets at NAV 566,008 Total plan assets $ 604,396 December 31, 2018 Quoted Prices in Significant Other Significant Total Plan assets at fair value: Temporary cash investments $ 61,040 $ — $ — $ 61,040 Corporate stock 506 — — 506 Total plan net assets at fair value $ 61,546 $ — $ — $ 61,546 Plan assets at NAV: Leveraged inflation-linked gilt funds 122,711 Corporate bonds 80,454 Corporate stock 183,750 Secured income asset funds 55,075 Total plan assets at NAV 441,990 Total plan assets $ 503,536 |
LEASES
LEASES | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company has operating leases for plant locations, corporate offices, sales offices, and certain equipment. Outstanding leases at December 28, 2019 have remaining lease terms of one year to fifteen years , some of which include options to extend leases for up to five years . The Company does not have any financing leases. The Company elected practical expedients not to reassess whether existing contracts are or contain leases, to not reassess the lease classification of any existing leases, to not reassess initial direct costs for any existing leases, to use hindsight in determining the lease term and in assessing impairment of the right-of-use asset, and to not separate lease and non-lease components for all classes of underlying assets. The Company determines if an arrangement is a lease at inception. Operating leases are included in other assets, accrued expenses, and lease liabilities in our consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make future lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company used its collateralized incremental borrowing rate in determining the present value of future lease payments. The operating lease ROU asset also includes any lease payments made and excludes any lease incentives and impairments. Some of the Company's facility leases include options to extend the lease when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. Lease cost and other information related to the Company's operating leases are as follows: Fifty-Two weeks ended December 28, 2019 Operating lease cost $ 24,073 Operating cash outflows from operating leases $ 24,835 ROU assets obtained in exchange for lease obligations $ 13,474 Weighted average remaining lease term 10 years Weighted average discount rate 3.8 % Operating lease cost includes approximately $2,500 for short-term lease costs and approximately $2,000 for variable lease payments. As part of the adoption of ASC 842, the Company evaluated at the historical and projected cash flow generation of the operations at each of its long-term leased facilities. One of those facilities, a galvanizing operation in Melbourne, Australia, will not generate sufficient cash flows on an undiscounted cash flow basis to recover the carrying value of the right of use asset. The Company then estimated a value for this operation using a discounted cash flow model. The result was an impairment of the right-of-use lease asset of approximately $12,063 . The after-tax balance of $8,444 was recorded as a reduction to retained earnings for the transition adjustment of adoption. (20) LEASES (Continued) Supplemental balance sheet information related to operating leases as of December 28, 2019 is as follows: Classification December 28, 2019 Operating lease assets Other assets $ 86,998 Operating lease short-term liabilities Accrued expenses 15,226 Operating lease long-term liabilities Operating lease liabilities 85,817 Total lease liabilities $ 101,043 Minimum lease payments under operating leases expiring subsequent to December 28, 2019 are as follows: Fiscal year ending: 2020 $ 18,744 2021 15,504 2022 12,706 2023 9,731 2024 8,453 Subsequent 58,015 Total minimum lease payments $ 123,153 Less: Interest $ 22,110 Present value of minimum lease payments $ 101,043 The below table as of December 29, 2018 is carried forward, including certain amounts that were historically included in the table as a result of the historical lease term conclusions but were not included in the initial ROU asset and lease liability measurement as of December 30, 2018 due to the Company's election of the hindsight practical expedient. The Company also determined one of its leases with escalating rent payments should be expensed using the straight-line method over a longer term and the result was an additional reduction to retained earnings of $442 for a transition adjustment. Minimum lease payments for operating leases under ASC 840 expiring subsequent to December 29, 2018 are as follows: Fiscal year ending: 2019 $ 18,757 2020 16,830 2021 13,992 2022 11,932 2023 8,866 Subsequent 76,438 Total minimum lease payments $ 146,815 |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | (21) BUSINESS SEGMENTS 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 and sales dollars. Reportable segments are as follows: ENGINEERED SUPPORT STRUCTURES: This segment consists of the manufacture and distribution of engineered metal and composite poles, towers, and components for global lighting, traffic, and wireless communication markets, engineered access systems, integrated structure solutions for smart cities, and highway safety products; UTILITY SUPPORT STRUCTURES: This segment consists of the manufacture of engineered steel and concrete structures for global utility transmission, distribution, substations, and renewable energy generation equipment; COATINGS: This segment consists of galvanizing, painting, and anodizing services to preserve and protect metal products; and IRRIGATION: This segment consists of the manufacture of agricultural irrigation equipment, parts, services, tubular products, water management solutions, 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 until its divestiture in 2018. The accounting policies of the reportable segments are the same as those described in Note 1. The Company evaluates the performance of its business segments based upon operating income and invested capital. The Company does not allocate LIFO expense, interest expense, non-operating income and deductions, or income taxes to its business segments. (21) BUSINESS SEGMENTS (Continued) Summary by Business 2019 2018 2017 SALES: Engineered Support Structures segment: Lighting, Traffic, and Highway Safety Products $ 708,853 $ 706,582 $ 633,178 Communication Products 188,912 149,817 171,718 Access Systems 114,525 130,481 133,206 Engineered Support Structures segment 1,012,290 986,880 938,102 Utility Support Structures segment: Steel 630,892 637,979 658,604 Concrete 122,032 111,875 99,738 Engineered Solar Tracker Solutions 47,450 16,760 — Offshore and Other Complex Steel Structures 90,206 92,559 100,773 Utility Support Structures segment 890,580 859,173 859,115 Coatings segment 367,835 353,351 318,891 Irrigation segment: North America 378,613 386,683 369,832 International 206,583 246,983 282,598 Irrigation segment 585,196 633,666 652,430 Other — 23,080 76,300 Total 2,855,901 2,856,150 2,844,838 INTERSEGMENT SALES: Engineered Support Structures 10,214 19,522 25,862 Utility Support Structures 4,972 3,967 2,871 Coatings 67,195 66,612 62,080 Irrigation 6,544 8,905 8,058 Total 88,925 99,006 98,871 NET SALES: Engineered Support Structures segment 1,002,076 967,358 912,240 Utility Support Structures segment 885,608 855,206 856,244 Coatings segment 300,640 286,739 256,811 Irrigation segment 578,652 624,761 644,372 Other — 23,080 76,300 Total $ 2,766,976 $ 2,757,144 $ 2,745,967 (21) BUSINESS SEGMENTS (Continued) 2019 2018 2017 OPERATING INCOME (LOSS): Engineered Support Structures $ 65,627 $ 34,776 $ 62,960 Utility Support Structures 87,788 64,766 97,853 Coatings 51,008 55,325 50,179 Irrigation 71,687 97,722 101,498 Other — (913 ) 2,134 Adjustment to LIFO inventory valuation method 9,815 (9,892 ) (5,680 ) Corporate (48,205 ) (39,504 ) (41,864 ) Total 237,720 202,280 267,080 Interest expense, net (36,211 ) (39,569 ) (39,908 ) Costs associated with refinancing of debt — (14,820 ) — Loss from divestiture of grinding media business — (6,084 ) — Other 8,164 1,634 1,292 Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries $ 209,673 $ 143,441 $ 228,464 TOTAL ASSETS: Engineered Support Structures $ 943,841 $ 867,735 $ 846,881 Utility Support Structures 742,194 700,915 597,231 Coatings 363,070 294,951 288,890 Irrigation 347,887 347,894 369,798 Other — — 68,934 Corporate 366,419 318,779 430,516 Total $ 2,763,411 $ 2,530,274 $ 2,602,250 CAPITAL EXPENDITURES: Engineered Support Structures $ 25,344 $ 26,783 $ 16,433 Utility Support Structures 26,306 17,442 14,012 Coatings 23,610 10,320 11,080 Irrigation 15,644 7,249 7,055 Other — 7 2,376 Corporate 6,521 10,184 4,310 Total $ 97,425 $ 71,985 $ 55,266 (21) BUSINESS SEGMENTS (Continued) 2019 2018 2017 DEPRECIATION AND AMORTIZATION: Engineered Support Structures $ 26,280 $ 27,274 $ 27,637 Utility Support Structures 23,779 23,618 25,079 Coatings 15,907 15,956 15,115 Irrigation 10,943 11,335 11,173 Other — 775 2,486 Corporate 5,355 3,869 3,467 Total $ 82,264 $ 82,827 $ 84,957 Summary by Geographical Area by Location of Valmont Facilities: 2019 2018 2017 NET SALES: United States $ 1,872,840 $ 1,771,390 $ 1,702,826 Australia 255,271 325,553 356,959 Denmark 90,206 92,559 100,773 Other 548,659 567,642 585,409 Total $ 2,766,976 $ 2,757,144 $ 2,745,967 LONG-LIVED ASSETS: United States $ 753,545 $ 624,143 $ 544,724 Australia 193,029 168,438 227,483 Denmark 58,435 64,497 90,372 Other 369,983 332,556 267,106 Total $ 1,374,992 $ 1,189,634 $ 1,129,685 No single customer accounted for more than 10% of net sales in 2019 , 2018 , or 2017 . Net sales by geographical area are based on the location of the facility producing the sales and do not include sales to other operating units of the company. Australia accounted for approximately 9% of the Company's net sales in 2019; no other foreign country accounted for more than 4% of the Company’s net sales. Operating income by business segment are based on net sales less identifiable operating expenses and allocations and includes profits recorded on sales to other operating units of the company. Long-lived assets consist of property, plant and equipment, net of depreciation, goodwill, other intangible assets and other assets. Long-lived assets by geographical area are based on location of facilities. |
GUARANTOR_NON-GUARANTOR FINANCI
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | 12 Months Ended |
Dec. 28, 2019 | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION The Company has two 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. The Company is the issuer. 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 Year ended December 28, 2019 Parent Guarantors Non- Eliminations Total Net sales $ 1,207,865 $ 563,935 $ 1,242,812 $ (247,636 ) $ 2,766,976 Cost of sales 887,403 420,287 1,014,071 (247,281 ) 2,074,480 Gross profit 320,462 143,648 228,741 (355 ) 692,496 Selling, general and administrative expenses 236,574 38,732 179,470 — 454,776 Operating income 83,888 104,916 49,271 (355 ) 237,720 Other income (expense): Interest expense (37,984 ) (11,150 ) (2,249 ) 11,230 (40,153 ) Interest income 1,676 37 13,459 (11,230 ) 3,942 Other 7,805 44 315 — 8,164 (28,503 ) (11,069 ) 11,525 — (28,047 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 55,385 93,847 60,796 (355 ) 209,673 Income tax expense (benefit): Current 8,918 26,166 11,181 2 46,267 Deferred (3,120 ) — 7,060 — 3,940 5,798 26,166 18,241 2 50,207 Earnings before equity in earnings of nonconsolidated subsidiaries 49,587 67,681 42,555 (357 ) 159,466 Equity in earnings of nonconsolidated subsidiaries 104,182 7,900 — (112,082 ) — Net earnings 153,769 75,581 42,555 (112,439 ) 159,466 Less: Earnings attributable to noncontrolling interests — — (5,697 ) — (5,697 ) Net earnings attributable to Valmont Industries, Inc $ 153,769 $ 75,581 $ 36,858 $ (112,439 ) $ 153,769 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Year ended December 29, 2018 Parent Guarantors Non- Eliminations Total Net sales $ 1,192,134 $ 522,366 $ 1,303,323 $ (260,679 ) $ 2,757,144 Cost of sales 906,646 399,451 1,055,215 (262,448 ) 2,098,864 Gross profit 285,488 122,915 248,108 1,769 658,280 Selling, general and administrative expenses 192,343 51,127 212,530 — 456,000 Operating income 93,145 71,788 35,578 1,769 202,280 Other income (expense): Interest expense (42,524 ) (14,815 ) (1,713 ) 14,815 (44,237 ) Interest income 791 82 18,610 (14,815 ) 4,668 Other (17,602 ) 59 (1,727 ) — (19,270 ) (59,335 ) (14,674 ) 15,170 — (58,839 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 33,810 57,114 50,748 1,769 143,441 Income tax expense (benefit): Current 6,310 14,948 23,290 246 44,794 Deferred 1,532 1,791 (4,982 ) — (1,659 ) 7,842 16,739 18,308 246 43,135 Earnings before equity in earnings of nonconsolidated subsidiaries 25,968 40,375 32,440 1,523 100,306 Equity in earnings of nonconsolidated subsidiaries 68,383 37,304 — (105,687 ) — Net earnings 94,351 77,679 32,440 (104,164 ) 100,306 Less: Earnings attributable to noncontrolling interests — — (5,955 ) — (5,955 ) Net earnings attributable to Valmont Industries, Inc $ 94,351 $ 77,679 $ 26,485 $ (104,164 ) $ 94,351 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Year ended December 30, 2017 Parent Guarantors Non- Eliminations Total Net sales $ 1,200,181 $ 485,448 $ 1,312,214 $ (251,876 ) $ 2,745,967 Cost of sales 898,799 375,383 1,042,199 (252,182 ) 2,064,199 Gross profit 301,382 110,065 270,015 306 681,768 Selling, general and administrative expenses 192,182 47,955 174,551 — 414,688 Operating income 109,200 62,110 95,464 306 267,080 Other income (expense): Interest expense (43,642 ) (13,866 ) (1,003 ) 13,866 (44,645 ) Interest income 838 42 17,723 (13,866 ) 4,737 Other 5,681 58 (4,447 ) — 1,292 (37,123 ) (13,766 ) 12,273 — (38,616 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 72,077 48,344 107,737 306 228,464 Income tax expense (benefit): Current 29,407 17,928 18,920 135 66,390 Deferred 10,307 — 29,448 — 39,755 39,714 17,928 48,368 135 106,145 Earnings before equity in earnings of nonconsolidated subsidiaries 32,363 30,416 59,369 171 122,319 Equity in earnings of nonconsolidated subsidiaries 83,877 22,146 — (106,023 ) — Net earnings 116,240 52,562 59,369 (105,852 ) 122,319 Less: Earnings attributable to noncontrolling interests — — (6,079 ) — (6,079 ) Net earnings attributable to Valmont Industries, Inc $ 116,240 $ 52,562 $ 53,290 $ (105,852 ) $ 116,240 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Year ended December 28, 2019 Parent Guarantors Non- Eliminations Total Net earnings $ 153,769 $ 75,581 $ 42,555 $ (112,439 ) $ 159,466 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gains (losses) — (1,564 ) (942 ) — (2,506 ) Realized loss on divestiture of grinding media business recorded in earnings — — — — — Gain (loss) on hedging activities 2,905 — — — 2,905 Actuarial gain (loss) in defined benefit pension plan liability — — (10,828 ) — (10,828 ) Equity in other comprehensive income (13,142 ) — — 13,142 — Other comprehensive income (loss) (10,237 ) (1,564 ) (11,770 ) 13,142 (10,429 ) Comprehensive income (loss) 143,532 74,017 30,785 (99,297 ) 149,037 Comprehensive income attributable to noncontrolling interests — — (5,505 ) — (5,505 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 143,532 $ 74,017 $ 25,280 $ (99,297 ) $ 143,532 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Year ended December 29, 2018 Parent Guarantors Non- Eliminations Total Net earnings $ 94,351 $ 77,679 $ 32,440 $ (104,164 ) $ 100,306 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gains (losses) — (6,509 ) (58,927 ) — (65,436 ) Realized loss on divestiture of grinding media business recorded in earnings — — 9,203 — 9,203 Gain (loss) on hedging activities 4,814 — — — 4,814 Actuarial gain (loss) in defined benefit pension plan liability — — 29,885 — 29,885 Equity in other comprehensive income (28,977 ) — — 28,977 — Other comprehensive income (loss) (24,163 ) (6,509 ) (19,839 ) 28,977 (21,534 ) Comprehensive income (loss) 70,188 71,170 12,601 (75,187 ) 78,772 Comprehensive income attributable to noncontrolling interests — — (8,584 ) — (8,584 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 70,188 $ 71,170 $ 4,017 $ (75,187 ) $ 70,188 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Year ended December 30, 2017 Parent Guarantors Non- Eliminations Total Net earnings $ 116,240 $ 52,562 $ 59,369 $ (105,852 ) $ 122,319 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gains (losses) — 138,795 (59,516 ) — 79,279 Gain (loss) on hedging activities (1,621 ) — — — (1,621 ) Actuarial gain (loss) in defined benefit pension plan liability — — (10,871 ) — (10,871 ) Equity in other comprehensive income 68,958 — — (68,958 ) — Other comprehensive income (loss) 67,337 138,795 (70,387 ) (68,958 ) 66,787 Comprehensive income 183,577 191,357 (11,018 ) (174,810 ) 189,106 Comprehensive income attributable to noncontrolling interests — — (5,529 ) — (5,529 ) Comprehensive income attributable to Valmont Industries, Inc. $ 183,577 $ 191,357 $ (16,547 ) $ (174,810 ) $ 183,577 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS December 28, 2019 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 182,453 $ 6,169 $ 164,920 $ — $ 353,542 Receivables, net 134,972 94,090 250,938 — 480,000 Inventories 130,686 45,673 200,963 (2,757 ) 374,565 Contra asset - costs and profits in excess of billings 65,528 47,402 28,392 — 141,322 Prepaid expenses, restricted cash, and other assets 13,820 717 17,506 — 32,043 Refundable income taxes 6,947 — — — 6,947 Total current assets 534,406 194,051 662,719 (2,757 ) 1,388,419 Property, plant and equipment, at cost 635,322 175,862 434,077 — 1,245,261 Less accumulated depreciation and amortization 413,054 90,384 183,694 — 687,132 Net property, plant and equipment 222,268 85,478 250,383 — 558,129 Goodwill 20,108 141,581 267,175 — 428,864 Other intangible assets 763 43,933 131,046 — 175,742 Investment in subsidiaries and intercompany accounts 1,339,206 1,150,458 908,212 (3,397,876 ) — Other assets 88,549 4,323 119,385 — 212,257 Total assets $ 2,205,300 $ 1,619,824 $ 2,338,920 $ (3,400,633 ) $ 2,763,411 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 760 $ — $ 760 Notes payable to banks — — 21,774 — 21,774 Accounts payable 68,677 21,464 107,816 — 197,957 Accrued employee compensation and benefits 45,294 6,344 31,890 — 83,528 Accrued expenses 147,498 11,353 42,830 — 201,681 Dividends payable 8,079 — — — 8,079 Total current liabilities 269,548 39,161 205,070 — 513,779 Deferred income taxes 16,925 — 31,030 — 47,955 Long-term debt, excluding current installments 734,571 123,560 30,373 (123,560 ) 764,944 Defined benefit pension liability — — 140,007 — 140,007 Other noncurrent liabilities 72,772 3,168 63,895 — 139,835 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,957 (1,106,907 ) 27,900 Additional paid-in capital — 162,906 1,107,536 (1,270,442 ) — Retained earnings 2,140,948 753,652 400,933 (1,154,585 ) 2,140,948 Accumulated other comprehensive income (loss) (313,422 ) 79,427 (334,288 ) 254,861 (313,422 ) Treasury stock (743,942 ) — — — (743,942 ) Total Valmont Industries, Inc. shareholders’ equity 1,111,484 1,453,935 1,823,138 (3,277,073 ) 1,111,484 Noncontrolling interest in consolidated subsidiaries — — 45,407 — 45,407 Total shareholders’ equity 1,111,484 1,453,935 1,868,545 (3,277,073 ) 1,156,891 Total liabilities and shareholders’ equity $ 2,205,300 $ 1,619,824 $ 2,338,920 $ (3,400,633 ) $ 2,763,411 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS December 29, 2018 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 104,256 $ 5,518 $ 203,436 $ — $ 313,210 Receivables, net 134,943 75,204 273,816 — 483,963 Inventories 138,158 37,019 210,791 (2,402 ) 383,566 Contra asset - costs and profits in excess of billings 50,271 35,200 27,054 — 112,525 Prepaid expenses, restricted cash, and other assets 21,858 746 20,196 — 42,800 Refundable income taxes 4,576 — — — 4,576 Total current assets 454,062 153,687 735,293 (2,402 ) 1,340,640 Property, plant and equipment, at cost 579,046 172,050 409,769 — 1,160,865 Less accumulated depreciation and amortization 390,438 93,374 163,061 — 646,873 Net property, plant and equipment 188,608 78,676 246,708 — 513,992 Goodwill 20,108 110,562 254,537 — 385,207 Other intangible assets 76 27,452 148,428 — 175,956 Investment in subsidiaries and intercompany accounts 1,286,545 1,161,612 932,982 (3,381,139 ) — Other assets 47,674 — 66,805 — 114,479 Total assets $ 1,997,073 $ 1,531,989 $ 2,384,753 $ (3,383,541 ) $ 2,530,274 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 779 $ — $ 779 Notes payable to banks — — 10,678 — 10,678 Accounts payable 68,304 21,081 128,730 — 218,115 Accrued employee compensation and benefits 41,418 7,186 30,687 — 79,291 Accrued expenses 25,936 10,132 55,874 — 91,942 Dividends payable 8,230 — — — 8,230 Total current liabilities 143,888 38,399 226,748 — 409,035 Deferred income taxes 14,376 — 29,113 — 43,489 Long-term debt, excluding current installments 733,964 166,729 7,858 (166,729 ) 741,822 Defined benefit pension liability — — 143,904 — 143,904 Other noncurrent liabilities 45,083 620 10,798 — 56,501 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 2,027,596 624,394 467,699 (1,092,093 ) 2,027,596 Accumulated other comprehensive income (loss) (303,185 ) 80,991 (333,346 ) 252,355 (303,185 ) Treasury stock (692,549 ) — — — (692,549 ) Total Valmont Industries, Inc. shareholders’ equity 1,059,762 1,326,241 1,890,571 (3,216,812 ) 1,059,762 Noncontrolling interest in consolidated subsidiaries — — 75,761 — 75,761 Total shareholders’ equity 1,059,762 1,326,241 1,966,332 (3,216,812 ) 1,135,523 Total liabilities and shareholders’ equity $ 1,997,073 $ 1,531,989 $ 2,384,753 $ (3,383,541 ) $ 2,530,274 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year ended December 28, 2019 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 153,769 $ 75,581 $ 42,555 $ (112,439 ) $ 159,466 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 26,734 13,518 42,012 — 82,264 Noncash loss on trading securities — — (172 ) — (172 ) Contribution to defined benefit pension plan — — (18,461 ) — (18,461 ) Stock-based compensation 11,587 — — — 11,587 Defined benefit pension plan (benefit) — — (513 ) — (513 ) (Gain) loss on sale of property, plant and equipment 133 240 (2,886 ) — (2,513 ) Equity in earnings in nonconsolidated subsidiaries (104,182 ) (7,900 ) — 112,082 — Deferred income taxes (3,120 ) — 7,060 — 3,940 Changes in assets and liabilities (net of acquisitions): Net working capital 103,019 (36,781 ) 13,641 355 80,234 Other noncurrent liabilities (505 ) (5 ) (764 ) — (1,274 ) Income taxes payable (refundable) 1,714 (2,012 ) (6,646 ) — (6,944 ) Net cash flows from operating activities 189,149 42,641 75,826 (2 ) 307,614 Cash flows from investing activities: Purchase of property, plant and equipment (59,394 ) (1,592 ) (36,439 ) — (97,425 ) Proceeds from sale of assets 87 48 5,421 — 5,556 Acquisitions, net of cash acquired — (63,141 ) (18,700 ) — (81,841 ) Proceeds from settlement of net investment hedge 11,184 — — — 11,184 Investments in nonconsolidated subsidiaries (3,500 ) — (2,669 ) — (6,169 ) Other, net (14,964 ) 14,210 1,297 2 545 Net cash flows from investing activities (66,587 ) (50,475 ) (51,090 ) 2 (168,150 ) Cash flows from financing activities: Borrowings under short-term agreements — — 11,327 — 11,327 Proceeds from long-term borrowings 31,000 — — — 31,000 Principal payments on long-term borrowings (10,000 ) — (768 ) — (10,768 ) Dividends paid (32,642 ) — — — (32,642 ) Dividends to noncontrolling interest — — (7,737 ) — (7,737 ) Intercompany dividends 65,651 53,676 (119,327 ) — — Purchase of noncontrolling interest (22,805 ) — (5,040 ) — (27,845 ) Intercompany capital contribution (13,284 ) — 13,284 — — Intercompany interest on long-term note — (45,155 ) 45,155 — — Proceeds from exercises under stock plans 13,619 — — — 13,619 Purchase of treasury shares (62,915 ) — — — (62,915 ) Purchase of common treasury shares - stock plan exercises (12,989 ) — — — (12,989 ) Net cash flows from financing activities (44,365 ) 8,521 (63,106 ) — (98,950 ) Effect of exchange rate changes on cash and cash equivalents — (36 ) (146 ) — (182 ) Net change in cash and cash equivalents 78,197 651 (38,516 ) — 40,332 Cash, cash equivalents, and restricted cash—beginning of year 104,256 5,518 203,436 — 313,210 Cash, cash equivalents, and restricted cash—end of period $ 182,453 $ 6,169 $ 164,920 $ — $ 353,542 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year ended December 29, 2018 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 94,351 $ 77,679 $ 32,440 $ (104,164 ) $ 100,306 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 26,155 13,959 42,713 — 82,827 Noncash loss on trading securities — — (62 ) — (62 ) Contribution to defined benefit pension plan — — (1,537 ) — (1,537 ) Impairment of property, plant and equipment — — 5,000 — 5,000 Impairment of goodwill & intangible assets — — 15,780 — 15,780 Loss on divestiture of grinding media business 2,518 — 3,566 — 6,084 Stock-based compensation 10,392 — — — 10,392 Defined benefit pension plan expense (benefit) — — (2,251 ) — (2,251 ) (Gain) loss on sale of property, plant and equipment 57 (37 ) (245 ) — (225 ) Equity in earnings in nonconsolidated subsidiaries (68,383 ) (37,304 ) — 105,687 — Deferred income taxes 1,532 1,791 (4,982 ) — (1,659 ) Changes in assets and liabilities (net of acquisitions): Net working capital (17,681 ) (13,962 ) (13,208 ) (1,769 ) (46,620 ) Other noncurrent liabilities (7,345 ) 615 (4,158 ) — (10,888 ) Income taxes payable (refundable) (6,176 ) (1,303 ) 3,340 — (4,139 ) Net cash flows from operating activities 35,420 41,438 76,396 (246 ) 153,008 Cash flows from investing activities: Purchase of property, plant and equipment (25,255 ) (13,115 ) (33,615 ) — (71,985 ) Proceeds from sale of assets 44 268 62,791 — 63,103 Acquisitions, net of cash acquired (57,805 ) — (85,215 ) — (143,020 ) Proceeds from settlement of net investment hedge (1,621 ) — — — (1,621 ) Other, net 69,714 (42,667 ) (29,215 ) 246 (1,922 ) Net cash flows from investing activities (14,923 ) (55,514 ) (85,254 ) 246 (155,445 ) Cash flows from financing activities: Payments under short-term agreements — — 10,543 — 10,543 Proceeds from long-term borrowings 245,936 — 5,719 — 251,655 Principal payments on long-term borrowings (261,219 ) — (972 ) — (262,191 ) Settlement of financial derivative (2,467 ) — — — (2,467 ) Debt issuance costs (2,322 ) — — — (2,322 ) Dividends paid (33,726 ) — — — (33,726 ) Dividends to noncontrolling interest — — (7,055 ) — (7,055 ) Intercompany dividends 168,757 11,296 (180,053 ) — — Intercompany capital contribution (3,492 ) 3,492 — — — Purchase of noncontrolling interest — — (5,510 ) — (5,510 ) Proceeds from exercises under stock plans 7,357 — — — 7,357 Purchase of treasury shares (114,805 ) — — — (114,805 ) Purchase of common treasury shares - stock plan exercises (3,589 ) — — — (3,589 ) Net cash flows from financing activities 430 14,788 (177,328 ) — (162,110 ) Effect of exchange rate changes on cash and cash equivalents — (498 ) (14,550 ) — (15,048 ) Net change in cash and cash equivalents 20,927 214 (200,736 ) — (179,595 ) Cash, cash equivalents, and restricted cash—beginning of year 83,329 5,304 404,172 — 492,805 Cash, cash equivalents, and restricted cash—end of period $ 104,256 $ 5,518 $ 203,436 $ — $ 313,210 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year ended December 30, 2017 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 116,240 $ 52,562 $ 59,369 $ (105,852 ) $ 122,319 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 26,237 15,003 43,717 — 84,957 Noncash loss on trading securities — — 237 — 237 Stock-based compensation 10,706 — — — 10,706 Defined benefit pension plan expense (benefit) — — 648 — 648 Contribution to defined benefit pension plan — — (40,245 ) — (40,245 ) (Gain) loss on sale of property, plant and equipment (664 ) 8 (3,268 ) — (3,924 ) Equity in earnings in nonconsolidated subsidiaries (83,877 ) (22,146 ) — 106,023 — Deferred income taxes 10,307 — 29,448 — 39,755 Changes in assets and liabilities (net of acquisitions): Net working capital (23,943 ) (25,717 ) (25,219 ) (306 ) (75,185 ) Other noncurrent liabilities (140 ) — (7,088 ) — (7,228 ) Income taxes payable (refundable) (11,837 ) 728 12,217 — 1,108 Net cash flows from operating activities 43,029 20,438 69,816 (135 ) 133,148 Cash flows from investing activities: Purchase of property, plant and equipment (20,460 ) (9,454 ) (25,352 ) — (55,266 ) Proceeds from sale of assets 748 3 7,434 — 8,185 Acquisitions, net of cash acquired — — (5,362 ) — (5,362 ) Proceeds from settlement of net investment hedge 5,123 — — — 5,123 Other, net 684 (22,777 ) 19,663 135 (2,295 ) Net cash flows from investing activities (13,905 ) (32,228 ) (3,617 ) 135 (49,615 ) Cash flows from financing activities: Payments under short-term agreements — — (585 ) — (585 ) Principal payments on long-term borrowings — — (887 ) — (887 ) Dividends paid (33,862 ) — — — (33,862 ) Dividends to noncontrolling interest — — (5,674 ) — (5,674 ) Intercompany dividends 22,662 — (22,662 ) — — Intercompany capital contribution (10,818 ) 10,818 — — — Proceeds from exercises under stock plans 35,159 — — — 35,159 Purchase of common treasury shares - stock plan exercises (26,161 ) — — — (26,161 ) Net cash flows from financing activities (13,020 ) 10,818 (29,808 ) — (32,010 ) Effect of exchange rate changes on cash and cash equivalents — 205 27,477 — 27,682 Net change in cash and cash equivalents 16,104 (767 ) 63,868 — 79,205 Cash, cash equivalents, and restricted cash—beginning of year 67,225 6,071 340,304 — 413,600 Cash, cash equivalents, and restricted cash—end of period $ 83,329 $ 5,304 $ 404,172 $ — $ 492,805 |
QUARTERLY FINANCIAL DATA (Unaud
QUARTERLY FINANCIAL DATA (Unaudited) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (Unaudited) | 23) QUARTERLY FINANCIAL DATA (Unaudited) Net Earnings Gross Per Share Stock Price Dividends Net Sales Profit Amount Basic Diluted High Low Declared 2019 First $ 692,139 $ 165,129 $ 36,481 $ 1.67 $ 1.66 $ 139.50 $ 107.43 $ 0.375 Second 700,871 180,414 41,397 1.90 1.90 136.75 112.94 0.375 Third 690,340 176,086 40,144 1.86 1.85 146.46 123.74 0.375 Fourth 683,626 170,867 35,747 1.67 1.66 151.46 123.80 0.375 Year $ 2,766,976 $ 692,496 $ 153,769 $ 7.10 $ 7.06 $ 151.46 $ 107.43 $ 1.50 2018 First $ 698,684 $ 169,240 $ 39,281 $ 1.74 $ 1.72 $ 171.55 $ 140.10 $ 0.375 Second 682,405 174,999 32,960 1.47 1.46 154.60 137.90 0.375 Third (1) 678,692 164,340 4,448 0.20 0.20 157.15 135.00 0.375 Fourth (2) 697,363 149,701 17,662 0.80 0.80 141.38 103.01 0.375 Year $ 2,757,144 $ 658,280 $ 94,351 $ 4.23 $ 4.20 $ 171.55 $ 103.01 $ 1.50 Earnings per share are computed independently for each of the quarters. Therefore, the sum of the quarterly earnings per share may not equal the total for the year. _______________________________ (1) The third quarter of 2018 included an impairment of goodwill and intangible assets totaling $14,736 after tax ( $0.66 per share) and refinancing of long-term debt expenses of $11,115 after-tax ( $0.50 per share). (2) In the fourth quarter of 2018, the Company recognized restructuring activities expenses and non-recurring asset impairment charges from exiting certain markets of $20,625 after-tax ( $0.92 |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 28, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts | Schedule II VALMONT INDUSTRIES, INC. AND SUBSIDIARIES Valuation and Qualifying Accounts (Dollars in thousands) Balance at Charged to Currency Translation Adjustment Deductions Balance at Fifty-two weeks ended December 28, 2019 Reserve deducted in balance sheet from the asset to which it applies— Allowance for doubtful receivables $ 8,277 2,543 (76 ) (1,196 ) $ 9,548 Allowance for deferred income tax asset valuation 33,228 4,141 (296 ) (1,858 ) 35,215 Fifty-two weeks ended December 29, 2018 Reserve deducted in balance sheet from the asset to which it applies— Allowance for doubtful receivables $ 9,813 994 (365 ) (2,165 ) $ 8,277 Allowance for deferred income tax asset valuation 27,864 10,769 (384 ) (5,021 ) 33,228 Fifty-two weeks ended December 30, 2017 Reserve deducted in balance sheet from the asset to which it applies— Allowance for doubtful receivables $ 18,991 2,060 510 (11,748 ) $ 9,813 Allowance for deferred income tax asset valuation 81,923 7,728 5,762 (67,549 ) 27,864 ______________________________________________ * The deductions from reserves are net of recoveries. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Valmont Industries, Inc. and its wholly and majority‑owned subsidiaries (the Company). Investments in 20% to 50% owned affiliates and joint ventures are accounted for by the equity method. Investments in less than 20% |
Cash overdrafts | Cash overdrafts Cash book overdrafts totaling $13,971 and $8,888 were classified as accounts payable at December 28, 2019 and December 29, 2018 , respectively. The Company’s policy is to report the change in book overdrafts as an operating activity in the Consolidated Statements of Cash Flows. |
Segments | Segments The Company has four reportable segments based on its management structure. Each segment is global in nature with a manager responsible for segment operational performance and allocation of capital within the segment. Reportable segments are as follows: ENGINEERED SUPPORT STRUCTURES: This segment consists of the manufacture and distribution of engineered metal and composite poles, towers, and components for global lighting, traffic, and wireless communication markets, engineered access systems, integrated structure solutions for smart cities, and highway safety products; UTILITY SUPPORT STRUCTURES: This segment consists of the manufacture of engineered steel and concrete structures for global utility transmission, distribution, substations, and renewable energy generation equipment; COATINGS: This segment consists of galvanizing, painting, and anodizing services to preserve and protect metal products; and IRRIGATION: This segment consists of the manufacture of agricultural irrigation equipment, parts, services, tubular products, water management solutions, and technology for precision agriculture. In addition to these four reportable segments, there are other businesses and activities which 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 until its divestiture in 2018. |
Fiscal Year | Fiscal Year The Company operates on a 52 or 53 week fiscal year with each year ending on the last Saturday in December. Accordingly, the Company’s fiscal years ended December 28, 2019 , December 29, 2018 and December 30, 2017 consisted of 52 weeks. |
Accounts Receivable | Accounts Receivable Accounts receivable are reported on the balance sheet net of any allowance for doubtful accounts. Allowances are maintained in amounts considered to be appropriate in relation to the outstanding receivables based on age of the receivable, |
Inventories | Inventories Approximately 41% and 37% of inventory is valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market as of December 28, 2019 and December 29, 2018 |
Long-Lived Assets | Long-Lived Assets Property, plant and equipment are recorded at historical cost. The Company generally uses the straight-line method in computing depreciation and amortization for financial reporting purposes and accelerated methods for income tax purposes. The annual provisions for depreciation and amortization have been computed principally in accordance with the following ranges of asset lives: buildings and improvements 15 to 40 years, machinery and equipment 3 to 12 years, transportation equipment 3 to 24 years, office furniture and equipment 3 to 7 years and intangible assets 5 to 20 years. Depreciation expense in fiscal 2019 , 2018 and 2017 was $64,177 , $67,499 and $69,046 , respectively. An impairment loss is recognized if the carrying amount of an asset may not be recoverable and exceeds estimated future undiscounted cash flows of the asset. A recognized impairment loss reduces the carrying amount of the asset to its estimated fair value. Upon adoption of ASC 842 in 2019, the Company impaired the right-of-use (lease) asset for one of its galvanizing facilities in Australia as it will not generate sufficient cash flows to recover the carrying value. Impairment losses were recorded in 2018 as facilities were closed and future plans for certain fixed assets changed in connection with the Company's restructuring plans. |
Income Taxes | Income Taxes The Company uses the asset and liability method to calculate deferred income taxes. Deferred tax assets and liabilities are recognized on temporary differences between financial statement and tax bases of assets and liabilities using enacted tax rates. The effect of tax rate changes on deferred tax assets and liabilities is recognized in income during the period that includes the enactment date. |
Warranties | Warranties The Company's provision for product warranty reflects management's best estimate of probable liability under its product warranties. Estimated future warranty costs are recorded at the time a sale is recognized. Future warranty liability is determined based on applying historical claim rate experience to units sold that are still within the warranty period. In addition, the Company records provisions for known warranty claims. |
Pension Benefits | Pension Benefits Certain expenses are incurred in connection with a defined benefit pension plan. In order to measure expense and the related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as current facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits. |
Derivative Instrument | Derivative Instruments The Company may enter into derivative financial instruments to manage risk associated with fluctuation in interest rates, foreign currency rates or commodities. Where applicable, the Company may elect to account for such derivatives as either a cash flow, fair value, or net investment hedge. |
Comprehensive Income | Comprehensive Income (Loss) |
Revenue Recognition | Revenue Recognition On December 31, 2017, the Company adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (ASC 606) . The Company elected to use the modified retrospective approach for the adoption of the new revenue standard. 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 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. The Company did not have any significant contracts with an original expected duration of more than one year at December 28, 2019. 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. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 monopole product line has large regional customers who have unique product specifications for these larger 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. For wireless communication towers and components, 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. 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. |
Use of Estimates | Use of Estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the reported amounts of revenue and expenses and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. |
Equity Method Investments | Equity Method Investments The Company has equity method investments in non-consolidated subsidiaries which are recorded within "Other assets" on the Consolidated Balance Sheets. |
Treasury Stock | Treasury Stock Repurchased shares are recorded as “Treasury Stock” and result in a reduction of “Shareholders’ Equity.” When treasury shares are reissued, the Company uses the last-in, first-out method, and the difference between the repurchase cost and re-issuance price is charged or credited to “Additional Paid-In Capital.” In May 2014, the Company announced a capital allocation philosophy which covered a share repurchase program. Specifically, the Board of Directors at that time authorized the purchase of up to $500,000 of the Company's outstanding common stock from time to time over twelve months at prevailing market prices, through open market or privately-negotiated transactions. In February 2015 and again in October 2018, the Board of Directors authorized an additional purchase of up to $250,000 |
Research and Development | Research and Development Research and development costs are charged to operations in the year incurred. These costs are a component of “Selling, general and administrative expenses” on the Consolidated Statements of Earnings. Research and development expenses were approximately $13,900 in 2019 , $11,500 in 2018 , and $11,600 in 2017 . |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases , which provides revised guidance on leases requiring lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The Company adopted this ASU in the first quarter of 2019. The Company made an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet for all classes of underlying assets. In addition, the Company elected certain practical expedients not to reassess whether existing contracts are or contain leases, to not reassess the lease classification of any existing leases, to not reassess initial direct costs for any existing leases, and to not separate lease components for all classes of underlying assets. The Company did not to recast its comparative periods in transition (the “Comparatives Under 840 Option”) as allowed under ASU 2018-11. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses on instruments within its scope, including trade receivables. This update is intended to provide financial statement users with more decision-useful information about the expected credit losses. The effective date of ASU No. 2016-13 will be the first quarter of the Company’s fiscal 2020. The Company does not expect the impact of the adoption of ASU No. 2016-13 to be significant on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Accounting Policies [Abstract] | |
Components of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive income (loss) consisted of the following: Foreign Currency Translation Adjustments Gain on Hedging Activities Defined Benefit Pension Plan Accumulated Other Comprehensive Income (Loss) Balance at December 29, 2018 $ (230,261 ) $ 11,171 $ (84,095 ) $ (303,185 ) Current-period comprehensive income (loss) (2,314 ) 2,905 (10,828 ) (10,237 ) Balance at December 28, 2019 $ (232,575 ) $ 14,076 $ (94,923 ) $ (313,422 ) |
Disaggregation of Revenue | 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 fiscal years ended December 28, 2019 and December 29, 2018 is as follows: Point in Time Over Time Point in Time Over Time Fiscal year ended December 28, 2019 Fiscal year ended December 28, 2019 Fiscal year ended December 29, 2018 Fiscal year ended December 29, 2018 Utility Support Structures $ 47,450 $ 838,158 $ 16,760 $ 838,446 Engineered Support Structures 952,056 50,020 922,677 44,681 Coatings 300,640 — 286,739 — Irrigation 564,918 13,734 612,385 12,376 Other — — 23,080 — Total $ 1,865,064 $ 901,912 $ 1,861,641 $ 895,503 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the fair values of the assets acquired and liabilities assumed of Walpar as of the date of acquisition: At August 3, 2018 Current assets $ 13,210 Customer relationships 28,500 Trade name 3,500 Goodwill 45,453 Total fair value of assets acquired $ 90,663 Current liabilities 2,197 Deferred taxes 7,579 Total fair value of liabilities assumed $ 9,776 Non-controlling interests 23,082 Net assets acquired $ 57,805 At August 3, 2018 Current assets $ 18,349 Other assets 3,166 Patent and Proprietary Technology 16,554 Trade name 8,701 Goodwill 42,169 Total fair value of assets acquired $ 88,939 Current liabilities 5,376 Contingent consideration liability 19,497 Deferred taxes 6,061 Total fair value of liabilities assumed $ 30,934 Non-controlling interests 14,501 Net assets acquired $ 43,504 |
Pro forma results of operations | The Company's Consolidated Statements of Earnings for the fiscal year ended December 28, 2019 included net sales from acquisitions of $117,296 . In aggregate, these acquisitions did not contribute net earnings to the Company's consolidated 2019 results. The proforma effect of these acquisitions on the 2019, 2018, and 2017 Consolidated Statements of Earnings is as follows: Fifty-two Weeks Ended December 28, 2019 Fifty-two Weeks Ended December 29, 2018 Fifty-two Weeks Ended December 30, 2017 Net sales $ 2,772,150 $ 2,842,162 $ 2,818,035 Net earnings 154,302 98,292 122,407 Earnings per share-diluted 7.09 4.38 5.39 |
DIVESTITURE (Tables)
DIVESTITURE (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Pre-tax gain from divestiture, before recognition of currency translation loss $ 4,334 Recognition of cumulative currency translation loss and hedges (out of OCI) (10,418 ) Net pre-tax loss from divestiture of the grinding media business $ (6,084 ) |
RESTRUCTURING ACTIVITIES (Table
RESTRUCTURING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of restructuring activities | The Company recorded the following pre-tax expenses: ESS Utility Irrigation Other/ Corporate TOTAL Severance $ 6,255 $ 1,825 $ — $ — $ 8,080 Other cash restructuring expenses 3,512 2,228 — — 5,740 Impairments of fixed assets/net loss on disposals 4,560 — — — 4,560 Total cost of sales 14,327 4,053 — — 18,380 Severance 10,654 1,100 129 — 11,883 Other cash restructuring expenses 3,151 — 51 126 3,328 Impairments of fixed assets/net loss on disposals 440 — — — 440 Total selling, general and administrative expenses 14,245 1,100 180 126 15,651 Consolidated total $ 28,572 $ 5,153 $ 180 $ 126 $ 34,031 |
Schedule of liabilities recorded for the restructuring plan and changes | Change in the liabilities recorded for the restructuring plans were as follows: Balance at December 29, 2018 Recognized Restructuring Expense Costs Paid or Otherwise Settled Balance at December 28, 2019 Severance $ 6,594 $ — $ (6,594 ) $ — Other cash restructuring expenses 3,462 — (3,462 ) — Total $ 10,056 $ — $ (10,056 ) $ — |
CASH FLOW SUPPLEMENTARY INFOR_2
CASH FLOW SUPPLEMENTARY INFORMATION (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash payments for interest and income taxes (net of refunds) | Cash payments for interest and income taxes (net of refunds) for the fifty-two weeks ended December 28, 2019 and December 29, 2018 , and December 30, 2017 were as follows: 2019 2018 2017 Interest $ 39,032 $ 43,305 $ 44,528 Income taxes 43,629 47,355 63,791 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Components of inventories | Inventories consisted of the following at December 28, 2019 and December 29, 2018 : 2019 2018 Raw materials and purchased parts $ 158,314 $ 190,115 Work-in-process 38,088 35,566 Finished goods and manufactured goods 221,968 211,504 Subtotal 418,370 437,185 Less: LIFO reserve 43,805 53,619 $ 374,565 $ 383,566 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment, at cost | Property, plant and equipment, at cost, consist of the following: 2019 2018 Land and improvements $ 111,091 $ 99,797 Buildings and improvements 364,396 348,836 Machinery and equipment 584,447 549,311 Transportation equipment 23,650 24,380 Office furniture and equipment 85,130 85,239 Construction in progress 76,547 53,302 $ 1,245,261 $ 1,160,865 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of components of amortized intangible assets | The components of amortized intangible assets at December 28, 2019 and December 29, 2018 were as follows: December 28, 2019 Gross Accumulated Weighted Customer Relationships $ 237,626 $ 149,720 13 years Patents & Proprietary Technology 24,068 6,358 14 years Other 8,054 7,035 5 years $ 269,748 $ 163,113 December 29, 2018 Gross Accumulated Weighted Customer Relationships $ 219,508 $ 132,180 13 years Patents & Proprietary Technology 23,662 4,837 14 years Other 7,971 6,891 5 years $ 251,141 $ 143,908 |
Schedule of future estimated amortization expense | Estimated annual amortization expense related to finite‑lived intangible assets is as follows: Estimated 2020 $ 17,343 2021 15,298 2022 13,120 2023 11,345 2024 9,434 |
Schedule of non-amortized intangible assets | The carrying values of trade names at December 28, 2019 and December 29, 2018 were as follows: December 28, December 29, Year Acquired Newmark $ 11,111 $ 11,111 2004 Webforge 9,143 8,872 2010 Valmont SM 7,966 8,155 2014 Ingal EPS/Ingal Civil Products 7,454 7,233 2010 Shakespeare 4,000 4,000 2014 Walpar 3,500 4,300 2018 Convert 8,378 8,580 2018 Other 17,555 16,472 $ 69,107 $ 68,723 |
Schedule of carrying amount of goodwill | The carrying amount of goodwill by segment as of December 28, 2019 and December 29, 2018 was as follows: Engineered Utility Coatings Irrigation Total Gross balance at December 29, 2018 $ 204,735 $ 123,618 $ 80,937 $ 25,164 $ 434,454 Accumulated impairment losses (18,670 ) (14,355 ) (16,222 ) — (49,247 ) Balance at December 29, 2018 186,065 109,263 64,715 25,164 $ 385,207 Acquisitions 21,870 7,889 12,374 — 42,133 Foreign currency translation 2,029 (913 ) 436 (28 ) 1,524 Balance at December 28, 2019 $ 209,964 $ 116,239 $ 77,525 $ 25,136 $ 428,864 (8) GOODWILL AND INTANGIBLE ASSETS (Continued) 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 42,216 34,280 5,120 5,503 — 87,119 Impairment — (14,355 ) — — — (14,355 ) Divestiture of grinding media — — — — (15,814 ) (15,814 ) Foreign currency translation (7,557 ) (910 ) (879 ) (117 ) — (9,463 ) Balance at December 29, 2018 $ 186,065 $ 109,263 $ 64,715 $ 25,164 $ — $ 385,207 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax, domestic and foreign | Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries are as follows: 2019 2018 2017 United States $ 175,923 $ 127,852 $ 152,372 Foreign 33,750 15,589 76,092 $ 209,673 $ 143,441 $ 228,464 |
Schedule of income tax expense (benefit) | Income tax expense (benefit) consists of: 2019 2018 2017 Current: Federal $ 27,809 $ 21,106 $ 49,324 State 5,568 6,585 4,415 Foreign 13,130 17,559 12,880 46,507 45,250 66,619 Non-current: (240 ) (456 ) (229 ) Deferred: Federal 2,108 213 (9,626 ) State 553 9 (385 ) Foreign 1,279 (1,881 ) 49,766 3,940 (1,659 ) 39,755 $ 50,207 $ 43,135 $ 106,145 |
Schedule of reconciliation of statutory federal income tax rate and effective tax rate | The reconciliations of the statutory federal income tax rate and the effective tax rate follows: 2019 2018 2017 Statutory federal income tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 2.5 3.5 1.4 Carryforwards, credits and changes in valuation allowances (1.0 ) 3.2 (1.4 ) Foreign tax rate differences 0.3 (1.0 ) (4.1 ) Changes in unrecognized tax benefits (0.1 ) (0.3 ) (0.1 ) Domestic production activities deduction — — (2.1 ) Goodwill impairment — 2.2 — Effects of 2017 Tax Act — (0.5 ) 18.4 Other 1.3 2.0 (0.6 ) 24.0 % 30.1 % 46.5 % |
Schedule of tax effects of significant items comprising net deferred income tax liabilities | The tax effects of significant items comprising the Company’s net deferred income tax liabilities are as follows: 2019 2018 Deferred income tax assets: Accrued expenses and allowances $ 16,148 $ 8,268 Tax credits and loss carryforwards 64,116 56,867 Defined benefit pension liability 35,539 36,328 Inventory allowances 5,599 3,320 Accrued compensation and benefits 14,122 13,122 Lease liabilities 21,763 — Deferred compensation 15,174 16,228 Gross deferred income tax assets 172,461 134,133 Valuation allowance (35,215 ) (33,228 ) Net deferred income tax assets 137,246 100,905 Deferred income tax liabilities: Property, plant and equipment 31,628 25,477 Intangible assets 49,686 44,850 Lease assets 22,066 — Other deferred tax liabilities 6,067 7,291 Total deferred income tax liabilities 109,447 77,618 Net deferred income tax asset $ 27,799 $ 23,287 |
Schedule of deferred income tax assets (liabilities) presented on the Consolidated Balance Sheets | Deferred income tax assets (liabilities) are presented as follows on the Consolidated Balance Sheets: Balance Sheet Caption 2019 2018 Other assets $ 75,754 $ 66,776 Deferred income taxes (47,955 ) (43,489 ) Net deferred income tax asset $ 27,799 $ 23,287 |
Schedule of activity related to unrecognized tax benefits | The following summarizes the activity related to our unrecognized tax benefits in 2019 and 2018 , in thousands: 2019 2018 Gross unrecognized tax benefits—beginning of year $ 2,599 $ 3,196 Gross increases—tax positions in prior period 29 103 Gross decreases—tax positions in prior period — (199 ) Gross increases—current‑period tax positions 593 280 Settlements with taxing authorities (150 ) (50 ) Lapse of statute of limitations (771 ) (731 ) Gross unrecognized tax benefits—end of year $ 2,300 $ 2,599 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt is as follows: December 28, December 29, 5.00% senior unsecured notes due 2044(a) $ 450,000 $ 450,000 5.25% senior unsecured notes due 2054(b) 305,000 305,000 Unamortized discount on 5.00% and 5.25% senior unsecured notes (a)(b) (21,143 ) (21,468 ) Revolving credit agreement (c) 29,044 5,719 IDR Bonds(d) 8,500 8,500 Other notes 2,089 2,918 Debt issuance costs (7,786 ) (8,068 ) Long-term debt 765,704 742,601 Less current installments of long-term debt 760 779 Long-term debt, excluding current installments $ 764,944 $ 741,822 (a) The 5.00% senior unsecured notes due 2044 include an aggregate principal amount of $450,000 on which interest is paid and an unamortized discount balance of $13,675 at December 28, 2019 . The notes bear interest at 5.000% per annum and are due on October 1, 2044. The discount will be amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. (b) The 5.25% senior unsecured notes due 2054 include an aggregate principal amount of $305,000 on which interest is paid and an unamortized discount balance of $7,468 at December 28, 2019 . The notes bear interest at 5.250% per annum and are due on October 1, 2054. The discount will be amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. (c) The amended and restated revolving credit facility with JP Morgan Chase Bank, N.A., as Administrative Agent, and the other lenders party thereto has a maturity date of October 18, 2022. The credit facility provides for $600,000 of committed unsecured revolving credit loans with available borrowings thereunder to $400,000 in foreign currencies. We may increase the credit facility by up to an additional $200,000 at any time, subject to lenders increasing the amount of their commitments. The interest rate on the borrowings will be, at the Company's option, either: (i) LIBOR (based on a 1, 2, 3 or 6 month interest period, as selected by the Company) plus 100 to 162.5 basis points, depending on the credit rating of the Company's senior debt published by Standard & Poor's Rating Services and Moody's Investors Service, Inc., or; (11) LONG-TERM DEBT (Continued) (ii) the higher of • the prime lending rate , • the Federal Funds rate plus 50 basis points, and • LIBOR (based on a 1 month interest period) plus 100 basis points, plus, in each case, 0 to 62.5 basis points, depending on the credit rating of the Company's senior debt published by Standard & Poor's Rating Services and Mood's Investors Service, Inc. At December 28, 2019 , the Company had $29,044 outstanding borrowings under the revolving credit facility. The revolving credit facility has a maturity date of October 18, 2022 and contains certain financial covenants that may limit additional borrowing capability under the agreement. At December 28, 2019 , the Company had the ability to borrow $556,569 under this facility, after consideration of standby letters of credit of $14,608 associated with certain insurance obligations. We also maintain certain short-term bank lines of credit totaling $132,849 , $111,075 of which was unused at December 28, 2019 . (d) The Industrial Development Revenue Bonds were issued to finance the construction of a manufacturing facility in Jasper, Tennessee. Variable interest is payable until final maturity on June 1, 2025. The effective interest rates at December 28, 2019 and December 29, 2018 were 2.73% and 3.27% respectively. |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of assumptions used in estimating fair value of each option grant | The fair value of each option grant made in 2019 , 2018 and 2017 was estimated using the following assumptions: 2019 2018 2017 Expected volatility 33.13 % 33.39 % 33.76 % Risk-free interest rate 1.69 % 2.67 % 2.12 % Expected life from vesting date 3.0 yrs 3.0 yrs 3.0 yrs Dividend yield 1.07 % 1.07 % 1.17 % |
Summary of activity of stock plans | Following is a summary of the stock option activity during 2017 , 2018 and 2019 : Number of Weighted Weighted Aggregate Outstanding at December 31, 2016 793,173 $ 122.77 Granted 67,965 164.35 Exercised (284,574 ) 121.92 Forfeited (5,942 ) 104.26 Outstanding at December 30, 2017 570,622 $ 128.34 4.66 $ 21,806 Options vested or expected to vest at December 30, 2017 558,114 $ 128.00 4.63 21,517 Options exercisable at December 30, 2017 351,794 $ 123.90 3.94 15,005 The weighted average per share fair value of options granted during 2017 was $ 43.68 . Number of Weighted Weighted Aggregate Outstanding at December 30, 2017 570,622 $ 128.34 Granted 105,135 112.08 Exercised (63,717 ) 106.26 Forfeited (33,627 ) 129.52 Outstanding at December 29, 2018 578,413 $ 127.74 4.35 $ 909 Options vested or expected to vest at December 29, 2018 565,952 $ 127.84 4.30 909 Options exercisable at December 29, 2018 405,128 $ 126.61 3.47 909 (12) STOCK-BASED COMPENSATION (Continued) The weighted average per share fair value of options granted during 2018 was $ 30.48 . Number of Weighted Weighted Aggregate Outstanding at December 29, 2018 578,413 $ 127.74 Granted 57,648 147.31 Exercised (119,789 ) 113.02 Forfeited (27,712 ) 137.07 Outstanding at December 28, 2019 488,560 $ 133.13 4.04 $ 9,291 Options vested or expected to vest at December 28, 2019 478,575 $ 133.21 3.99 9,078 Options exercisable at December 28, 2019 341,828 $ 133.32 3.19 6,470 The weighted average per share fair value of options granted during 2019 was $ 37.85 . |
Summary of status of stock options outstanding | Following is a summary of the status of stock options outstanding at December 28, 2019 : Outstanding and Exercisable By Price Range Options Outstanding Options Exercisable Exercise Price Number Weighted Weighted Number Weighted $104.47 - 112.08 183,658 4.59 years $ 108.58 113,866 $ 106.43 $123.87 - 132.84 70,396 1.95 years 132.70 70,396 132.70 $142.67 - 164.35 234,506 4.24 years 152.75 157,566 152.97 488,560 341,828 |
Schedule of non-vested stock and restricted stock units | During fiscal 2019 , 2018 and 2017 , the Company granted restricted stock units to directors and certain management employees as follows (which are not included in the above stock plan activity tables): 2019 2018 2017 Shares granted 78,318 88,127 62,160 Weighted‑average per share price on grant date $ 145.89 $ 114.89 $ 163.18 Recognized compensation expense $ 8,815 $ 6,328 $ 5,569 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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 2019: Net earnings attributable to Valmont Industries, Inc. $ 153,769 $ — $ 153,769 Weighted average shares outstanding (000's) 21,659 110 21,769 Per share amount $ 7.10 $ 0.04 $ 7.06 2018: Net earnings attributable to Valmont Industries, Inc. $ 94,351 $ — $ 94,351 Weighted average shares outstanding (000's) 22,306 140 22,446 Per share amount $ 4.23 $ 0.03 $ 4.20 2017: Net earnings attributable to Valmont Industries, Inc. $ 116,240 $ — $ 116,240 Weighted average shares outstanding (000's) 22,520 218 22,738 Per share amount $ 5.16 $ 0.05 $ 5.11 |
DISCLOSURES ABOUT THE FAIR VA_2
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Trading Securities measured at fair value | Fair Value Measurement Using: Carrying Value December 28, 2019 Quoted Prices in Significant Other Significant Assets: Trading securities $ 36,500 $ 36,500 $ — $ — Derivative financial instruments, net 3,247 — 3,247 — Fair Value Measurement Using: Carrying Value December 29, 2018 Quoted Prices in Significant Other Significant Assets: Trading securities $ 40,024 $ 40,024 $ — $ — Derivative financial instruments, net $ 9,147 $ — 9,147 $ — |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivative instruments | Fair value of derivative instruments at December 28, 2019 and December 29, 2018 are as follows: Derivatives designated as hedging instruments: Balance sheet location December 28, 2019 December 29, 2018 Commodity forward contracts Prepaid expenses and other assets $ — $ (285 ) Foreign currency forward contracts Prepaid expenses and other assets 2,119 8,357 Cross currency swap contracts Prepaid expenses and other assets 1,128 1,075 $ 3,247 $ 9,147 |
Gains (losses) on derivatives recognized on statements of earnings | Gains (losses) on derivatives recognized in the consolidated statements of earnings for the years ended December 28, 2019 , December 29, 2018 , and December 30, 2017 are as follows: Derivatives designated as hedging instruments: Statements of earnings location 2019 2018 2017 Commodity forward contracts Product cost of sales $ (2,130 ) $ 1,021 $ — Foreign currency forward contracts Loss from divestiture of grinding media business — (1,215 ) — Foreign currency forward contracts Other income (expense) 950 782 — Interest rate contracts Interest expense (64 ) (423 ) (74 ) Cross currency swap contracts Interest expense 2,823 828 — $ 1,579 $ 993 $ (74 ) |
Schedule of notional amounts of outstanding derivative | Key terms of the two CCS are as follows: Currency Notional Amount Termination Date Swapped Interest Rate Net Settlement Amount Danish Krone (DKK) $ 50,000 April 1, 2024 2.68% DKK 333,625 Euro $ 80,000 April 1, 2024 2.825% €71,550 |
GUARANTEES (Tables)
GUARANTEES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Guarantees [Abstract] | |
Schedule of changes in the product warranty accrual | 2019 2018 Balance, beginning of period $ 17,008 $ 20,109 Payments made (17,484 ) (18,920 ) Change in liability for warranties issued during the period 16,080 13,566 Change in liability for pre-existing warranties (2,072 ) 2,253 Balance, end of period $ 13,532 $ 17,008 |
DEFINED BENEFIT RETIREMENT PL_2
DEFINED BENEFIT RETIREMENT PLAN (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Defined Benefit Plan [Abstract] | |
Schedule of changes in PBO and fair value of plan assets for pension plan | Changes in the PBO and fair value of plan assets for the pension plan for the period from December 30, 2017 to December 29, 2018 were as follows: Projected Plan Funded Fair Value at December 30, 2017 $ 783,301 $ 593,749 $ (189,552 ) Employer contributions — 1,537 Interest cost 17,878 — Prior service costs - GMP equalization 12,056 — Actual return on plan assets — (32,120 ) Benefits paid (28,207 ) (28,207 ) Actuarial (gain) loss (95,480 ) — Currency translation (42,108 ) (31,423 ) Fair Value at December 29, 2018 $ 647,440 $ 503,536 $ (143,904 ) (19) DEFINED BENEFIT RETIREMENT PLAN (Continued) Changes in the PBO and fair value of plan assets for the pension plan for the period from December 29, 2018 to December 28, 2019 were as follows: Projected Plan Funded Fair Value at December 29, 2018 $ 647,440 $ 503,536 $ (143,904 ) Employer contributions — 18,461 Interest cost 16,923 — Actual return on plan assets — 86,081 Benefits paid (20,769 ) (20,769 ) Actuarial (gain) loss 79,485 — Currency translation 21,324 17,087 Fair Value at December 28, 2019 $ 744,403 $ 604,396 $ (140,007 ) |
Schedule of pre-tax amounts recognized in accumulated other comprehensive income (loss) | Pre-tax amounts recognized in accumulated other comprehensive income (loss) as of December 28, 2019 and December 29, 2018 consisted of actuarial gains (losses): Balance December 30, 2017 $ (168,250 ) Actuarial gain 44,760 Prior service costs - GMP equalization (12,056 ) Currency translation gain (loss) 5,358 Balance December 29, 2018 (130,188 ) Actuarial gain (loss) (10,839 ) Currency translation gain (loss) (2,699 ) Balance December 28, 2019 $ (143,726 ) |
Schedule of weighted-average actuarial assumptions used to determine the benefit obligation | The weighted-average actuarial assumptions used to determine the benefit obligation at December 28, 2019 and December 29, 2018 were as follows: Percentages 2019 2018 Discount rate 2.05 % 2.90 % Salary increase N/A N/A CPI inflation 2.15 % 2.20 % RPI inflation 3.05 % 3.30 % |
Schedule of components of the net periodic pension (benefit) expense | The components of the net periodic pension expense for the fiscal years ended December 28, 2019 and December 29, 2018 were as follows: 2019 2018 Net Periodic Benefit Cost: Interest cost $ 16,923 $ 17,878 Expected return on plan assets (20,000 ) (23,175 ) Amortization of prior service cost 513 — Amortization of actuarial loss 2,051 3,046 Net periodic benefit expense (benefit) $ (513 ) $ (2,251 ) |
Schedule of weighted-average actuarial assumptions used to determine expense | The weighted-average actuarial assumptions used to determine expense are as follows for fiscal 2019 and 2018 : Percentages 2019 2018 Discount rate 2.90 % 2.55 % Expected return on plan assets 4.25 % 4.29 % CPI Inflation 2.20 % 2.20 % RPI Inflation 3.30 % 3.30 % |
Schedule of expected pension benefit payments | The following table details expected pension benefit payments for the years 2020 through 2029: 2020 $ 21,840 2021 22,494 2022 23,148 2023 23,802 2024 24,587 Years 2024 - 2029 134,442 |
Schedule of pension plan assets measured at fair value on a recurring basis | At December 31, 2019 and December 31, 2018, the pension plan assets measured at fair value on a recurring basis were as follows: December 31, 2019 Quoted Prices in Significant Other Significant Total Plan assets at fair value: Temporary cash investments $ 38,388 $ — $ — $ 38,388 Corporate stock — — — — Total plan net assets at fair value $ 38,388 $ — $ — $ 38,388 Plan assets at NAV: Leveraged inflation-linked gilt funds 123,637 Corporate bonds 97,638 Corporate stock 234,612 Secured income asset funds 110,121 Total plan assets at NAV 566,008 Total plan assets $ 604,396 December 31, 2018 Quoted Prices in Significant Other Significant Total Plan assets at fair value: Temporary cash investments $ 61,040 $ — $ — $ 61,040 Corporate stock 506 — — 506 Total plan net assets at fair value $ 61,546 $ — $ — $ 61,546 Plan assets at NAV: Leveraged inflation-linked gilt funds 122,711 Corporate bonds 80,454 Corporate stock 183,750 Secured income asset funds 55,075 Total plan assets at NAV 441,990 Total plan assets $ 503,536 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Lease cost | Lease cost and other information related to the Company's operating leases are as follows: Fifty-Two weeks ended December 28, 2019 Operating lease cost $ 24,073 Operating cash outflows from operating leases $ 24,835 ROU assets obtained in exchange for lease obligations $ 13,474 Weighted average remaining lease term 10 years Weighted average discount rate 3.8 % |
Assets and liabilities lessee | Supplemental balance sheet information related to operating leases as of December 28, 2019 is as follows: Classification December 28, 2019 Operating lease assets Other assets $ 86,998 Operating lease short-term liabilities Accrued expenses 15,226 Operating lease long-term liabilities Operating lease liabilities 85,817 Total lease liabilities $ 101,043 |
Future minimum lease payments | Minimum lease payments under operating leases expiring subsequent to December 28, 2019 are as follows: Fiscal year ending: 2020 $ 18,744 2021 15,504 2022 12,706 2023 9,731 2024 8,453 Subsequent 58,015 Total minimum lease payments $ 123,153 Less: Interest $ 22,110 Present value of minimum lease payments $ 101,043 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Minimum lease payments for operating leases under ASC 840 expiring subsequent to December 29, 2018 are as follows: Fiscal year ending: 2019 $ 18,757 2020 16,830 2021 13,992 2022 11,932 2023 8,866 Subsequent 76,438 Total minimum lease payments $ 146,815 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting [Abstract] | |
Segment reporting information of sales and operating income | Summary by Business 2019 2018 2017 SALES: Engineered Support Structures segment: Lighting, Traffic, and Highway Safety Products $ 708,853 $ 706,582 $ 633,178 Communication Products 188,912 149,817 171,718 Access Systems 114,525 130,481 133,206 Engineered Support Structures segment 1,012,290 986,880 938,102 Utility Support Structures segment: Steel 630,892 637,979 658,604 Concrete 122,032 111,875 99,738 Engineered Solar Tracker Solutions 47,450 16,760 — Offshore and Other Complex Steel Structures 90,206 92,559 100,773 Utility Support Structures segment 890,580 859,173 859,115 Coatings segment 367,835 353,351 318,891 Irrigation segment: North America 378,613 386,683 369,832 International 206,583 246,983 282,598 Irrigation segment 585,196 633,666 652,430 Other — 23,080 76,300 Total 2,855,901 2,856,150 2,844,838 INTERSEGMENT SALES: Engineered Support Structures 10,214 19,522 25,862 Utility Support Structures 4,972 3,967 2,871 Coatings 67,195 66,612 62,080 Irrigation 6,544 8,905 8,058 Total 88,925 99,006 98,871 NET SALES: Engineered Support Structures segment 1,002,076 967,358 912,240 Utility Support Structures segment 885,608 855,206 856,244 Coatings segment 300,640 286,739 256,811 Irrigation segment 578,652 624,761 644,372 Other — 23,080 76,300 Total $ 2,766,976 $ 2,757,144 $ 2,745,967 (21) BUSINESS SEGMENTS (Continued) 2019 2018 2017 OPERATING INCOME (LOSS): Engineered Support Structures $ 65,627 $ 34,776 $ 62,960 Utility Support Structures 87,788 64,766 97,853 Coatings 51,008 55,325 50,179 Irrigation 71,687 97,722 101,498 Other — (913 ) 2,134 Adjustment to LIFO inventory valuation method 9,815 (9,892 ) (5,680 ) Corporate (48,205 ) (39,504 ) (41,864 ) Total 237,720 202,280 267,080 Interest expense, net (36,211 ) (39,569 ) (39,908 ) Costs associated with refinancing of debt — (14,820 ) — Loss from divestiture of grinding media business — (6,084 ) — Other 8,164 1,634 1,292 Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries $ 209,673 $ 143,441 $ 228,464 TOTAL ASSETS: Engineered Support Structures $ 943,841 $ 867,735 $ 846,881 Utility Support Structures 742,194 700,915 597,231 Coatings 363,070 294,951 288,890 Irrigation 347,887 347,894 369,798 Other — — 68,934 Corporate 366,419 318,779 430,516 Total $ 2,763,411 $ 2,530,274 $ 2,602,250 CAPITAL EXPENDITURES: Engineered Support Structures $ 25,344 $ 26,783 $ 16,433 Utility Support Structures 26,306 17,442 14,012 Coatings 23,610 10,320 11,080 Irrigation 15,644 7,249 7,055 Other — 7 2,376 Corporate 6,521 10,184 4,310 Total $ 97,425 $ 71,985 $ 55,266 (21) BUSINESS SEGMENTS (Continued) 2019 2018 2017 DEPRECIATION AND AMORTIZATION: Engineered Support Structures $ 26,280 $ 27,274 $ 27,637 Utility Support Structures 23,779 23,618 25,079 Coatings 15,907 15,956 15,115 Irrigation 10,943 11,335 11,173 Other — 775 2,486 Corporate 5,355 3,869 3,467 Total $ 82,264 $ 82,827 $ 84,957 |
Summary by geographical area by location | Summary by Geographical Area by Location of Valmont Facilities: 2019 2018 2017 NET SALES: United States $ 1,872,840 $ 1,771,390 $ 1,702,826 Australia 255,271 325,553 356,959 Denmark 90,206 92,559 100,773 Other 548,659 567,642 585,409 Total $ 2,766,976 $ 2,757,144 $ 2,745,967 LONG-LIVED ASSETS: United States $ 753,545 $ 624,143 $ 544,724 Australia 193,029 168,438 227,483 Denmark 58,435 64,497 90,372 Other 369,983 332,556 267,106 Total $ 1,374,992 $ 1,189,634 $ 1,129,685 |
GUARANTOR_NON-GUARANTOR FINAN_2
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables) | 12 Months Ended | |
Dec. 28, 2019 | Dec. 30, 2017 | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | ||
Condensed Consolidated Statements of Earnings | CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Year ended December 28, 2019 Parent Guarantors Non- Eliminations Total Net sales $ 1,207,865 $ 563,935 $ 1,242,812 $ (247,636 ) $ 2,766,976 Cost of sales 887,403 420,287 1,014,071 (247,281 ) 2,074,480 Gross profit 320,462 143,648 228,741 (355 ) 692,496 Selling, general and administrative expenses 236,574 38,732 179,470 — 454,776 Operating income 83,888 104,916 49,271 (355 ) 237,720 Other income (expense): Interest expense (37,984 ) (11,150 ) (2,249 ) 11,230 (40,153 ) Interest income 1,676 37 13,459 (11,230 ) 3,942 Other 7,805 44 315 — 8,164 (28,503 ) (11,069 ) 11,525 — (28,047 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 55,385 93,847 60,796 (355 ) 209,673 Income tax expense (benefit): Current 8,918 26,166 11,181 2 46,267 Deferred (3,120 ) — 7,060 — 3,940 5,798 26,166 18,241 2 50,207 Earnings before equity in earnings of nonconsolidated subsidiaries 49,587 67,681 42,555 (357 ) 159,466 Equity in earnings of nonconsolidated subsidiaries 104,182 7,900 — (112,082 ) — Net earnings 153,769 75,581 42,555 (112,439 ) 159,466 Less: Earnings attributable to noncontrolling interests — — (5,697 ) — (5,697 ) Net earnings attributable to Valmont Industries, Inc $ 153,769 $ 75,581 $ 36,858 $ (112,439 ) $ 153,769 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Year ended December 29, 2018 Parent Guarantors Non- Eliminations Total Net sales $ 1,192,134 $ 522,366 $ 1,303,323 $ (260,679 ) $ 2,757,144 Cost of sales 906,646 399,451 1,055,215 (262,448 ) 2,098,864 Gross profit 285,488 122,915 248,108 1,769 658,280 Selling, general and administrative expenses 192,343 51,127 212,530 — 456,000 Operating income 93,145 71,788 35,578 1,769 202,280 Other income (expense): Interest expense (42,524 ) (14,815 ) (1,713 ) 14,815 (44,237 ) Interest income 791 82 18,610 (14,815 ) 4,668 Other (17,602 ) 59 (1,727 ) — (19,270 ) (59,335 ) (14,674 ) 15,170 — (58,839 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 33,810 57,114 50,748 1,769 143,441 Income tax expense (benefit): Current 6,310 14,948 23,290 246 44,794 Deferred 1,532 1,791 (4,982 ) — (1,659 ) 7,842 16,739 18,308 246 43,135 Earnings before equity in earnings of nonconsolidated subsidiaries 25,968 40,375 32,440 1,523 100,306 Equity in earnings of nonconsolidated subsidiaries 68,383 37,304 — (105,687 ) — Net earnings 94,351 77,679 32,440 (104,164 ) 100,306 Less: Earnings attributable to noncontrolling interests — — (5,955 ) — (5,955 ) Net earnings attributable to Valmont Industries, Inc $ 94,351 $ 77,679 $ 26,485 $ (104,164 ) $ 94,351 | Parent Guarantors Non- Eliminations Total Net sales $ 1,200,181 $ 485,448 $ 1,312,214 $ (251,876 ) $ 2,745,967 Cost of sales 898,799 375,383 1,042,199 (252,182 ) 2,064,199 Gross profit 301,382 110,065 270,015 306 681,768 Selling, general and administrative expenses 192,182 47,955 174,551 — 414,688 Operating income 109,200 62,110 95,464 306 267,080 Other income (expense): Interest expense (43,642 ) (13,866 ) (1,003 ) 13,866 (44,645 ) Interest income 838 42 17,723 (13,866 ) 4,737 Other 5,681 58 (4,447 ) — 1,292 (37,123 ) (13,766 ) 12,273 — (38,616 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 72,077 48,344 107,737 306 228,464 Income tax expense (benefit): Current 29,407 17,928 18,920 135 66,390 Deferred 10,307 — 29,448 — 39,755 39,714 17,928 48,368 135 106,145 Earnings before equity in earnings of nonconsolidated subsidiaries 32,363 30,416 59,369 171 122,319 Equity in earnings of nonconsolidated subsidiaries 83,877 22,146 — (106,023 ) — Net earnings 116,240 52,562 59,369 (105,852 ) 122,319 Less: Earnings attributable to noncontrolling interests — — (6,079 ) — (6,079 ) Net earnings attributable to Valmont Industries, Inc $ 116,240 $ 52,562 $ 53,290 $ (105,852 ) $ 116,240 |
Condensed Consolidated Statements of Comprehensive Income | CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Year ended December 28, 2019 Parent Guarantors Non- Eliminations Total Net earnings $ 153,769 $ 75,581 $ 42,555 $ (112,439 ) $ 159,466 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gains (losses) — (1,564 ) (942 ) — (2,506 ) Realized loss on divestiture of grinding media business recorded in earnings — — — — — Gain (loss) on hedging activities 2,905 — — — 2,905 Actuarial gain (loss) in defined benefit pension plan liability — — (10,828 ) — (10,828 ) Equity in other comprehensive income (13,142 ) — — 13,142 — Other comprehensive income (loss) (10,237 ) (1,564 ) (11,770 ) 13,142 (10,429 ) Comprehensive income (loss) 143,532 74,017 30,785 (99,297 ) 149,037 Comprehensive income attributable to noncontrolling interests — — (5,505 ) — (5,505 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 143,532 $ 74,017 $ 25,280 $ (99,297 ) $ 143,532 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Year ended December 29, 2018 Parent Guarantors Non- Eliminations Total Net earnings $ 94,351 $ 77,679 $ 32,440 $ (104,164 ) $ 100,306 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gains (losses) — (6,509 ) (58,927 ) — (65,436 ) Realized loss on divestiture of grinding media business recorded in earnings — — 9,203 — 9,203 Gain (loss) on hedging activities 4,814 — — — 4,814 Actuarial gain (loss) in defined benefit pension plan liability — — 29,885 — 29,885 Equity in other comprehensive income (28,977 ) — — 28,977 — Other comprehensive income (loss) (24,163 ) (6,509 ) (19,839 ) 28,977 (21,534 ) Comprehensive income (loss) 70,188 71,170 12,601 (75,187 ) 78,772 Comprehensive income attributable to noncontrolling interests — — (8,584 ) — (8,584 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 70,188 $ 71,170 $ 4,017 $ (75,187 ) $ 70,188 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Year ended December 30, 2017 Parent Guarantors Non- Eliminations Total Net earnings $ 116,240 $ 52,562 $ 59,369 $ (105,852 ) $ 122,319 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gains (losses) — 138,795 (59,516 ) — 79,279 Gain (loss) on hedging activities (1,621 ) — — — (1,621 ) Actuarial gain (loss) in defined benefit pension plan liability — — (10,871 ) — (10,871 ) Equity in other comprehensive income 68,958 — — (68,958 ) — Other comprehensive income (loss) 67,337 138,795 (70,387 ) (68,958 ) 66,787 Comprehensive income 183,577 191,357 (11,018 ) (174,810 ) 189,106 Comprehensive income attributable to noncontrolling interests — — (5,529 ) — (5,529 ) Comprehensive income attributable to Valmont Industries, Inc. $ 183,577 $ 191,357 $ (16,547 ) $ (174,810 ) $ 183,577 | |
Condensed Consolidated Balance Sheets | CONDENSED CONSOLIDATED BALANCE SHEETS December 28, 2019 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 182,453 $ 6,169 $ 164,920 $ — $ 353,542 Receivables, net 134,972 94,090 250,938 — 480,000 Inventories 130,686 45,673 200,963 (2,757 ) 374,565 Contra asset - costs and profits in excess of billings 65,528 47,402 28,392 — 141,322 Prepaid expenses, restricted cash, and other assets 13,820 717 17,506 — 32,043 Refundable income taxes 6,947 — — — 6,947 Total current assets 534,406 194,051 662,719 (2,757 ) 1,388,419 Property, plant and equipment, at cost 635,322 175,862 434,077 — 1,245,261 Less accumulated depreciation and amortization 413,054 90,384 183,694 — 687,132 Net property, plant and equipment 222,268 85,478 250,383 — 558,129 Goodwill 20,108 141,581 267,175 — 428,864 Other intangible assets 763 43,933 131,046 — 175,742 Investment in subsidiaries and intercompany accounts 1,339,206 1,150,458 908,212 (3,397,876 ) — Other assets 88,549 4,323 119,385 — 212,257 Total assets $ 2,205,300 $ 1,619,824 $ 2,338,920 $ (3,400,633 ) $ 2,763,411 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 760 $ — $ 760 Notes payable to banks — — 21,774 — 21,774 Accounts payable 68,677 21,464 107,816 — 197,957 Accrued employee compensation and benefits 45,294 6,344 31,890 — 83,528 Accrued expenses 147,498 11,353 42,830 — 201,681 Dividends payable 8,079 — — — 8,079 Total current liabilities 269,548 39,161 205,070 — 513,779 Deferred income taxes 16,925 — 31,030 — 47,955 Long-term debt, excluding current installments 734,571 123,560 30,373 (123,560 ) 764,944 Defined benefit pension liability — — 140,007 — 140,007 Other noncurrent liabilities 72,772 3,168 63,895 — 139,835 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,957 (1,106,907 ) 27,900 Additional paid-in capital — 162,906 1,107,536 (1,270,442 ) — Retained earnings 2,140,948 753,652 400,933 (1,154,585 ) 2,140,948 Accumulated other comprehensive income (loss) (313,422 ) 79,427 (334,288 ) 254,861 (313,422 ) Treasury stock (743,942 ) — — — (743,942 ) Total Valmont Industries, Inc. shareholders’ equity 1,111,484 1,453,935 1,823,138 (3,277,073 ) 1,111,484 Noncontrolling interest in consolidated subsidiaries — — 45,407 — 45,407 Total shareholders’ equity 1,111,484 1,453,935 1,868,545 (3,277,073 ) 1,156,891 Total liabilities and shareholders’ equity $ 2,205,300 $ 1,619,824 $ 2,338,920 $ (3,400,633 ) $ 2,763,411 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS December 29, 2018 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 104,256 $ 5,518 $ 203,436 $ — $ 313,210 Receivables, net 134,943 75,204 273,816 — 483,963 Inventories 138,158 37,019 210,791 (2,402 ) 383,566 Contra asset - costs and profits in excess of billings 50,271 35,200 27,054 — 112,525 Prepaid expenses, restricted cash, and other assets 21,858 746 20,196 — 42,800 Refundable income taxes 4,576 — — — 4,576 Total current assets 454,062 153,687 735,293 (2,402 ) 1,340,640 Property, plant and equipment, at cost 579,046 172,050 409,769 — 1,160,865 Less accumulated depreciation and amortization 390,438 93,374 163,061 — 646,873 Net property, plant and equipment 188,608 78,676 246,708 — 513,992 Goodwill 20,108 110,562 254,537 — 385,207 Other intangible assets 76 27,452 148,428 — 175,956 Investment in subsidiaries and intercompany accounts 1,286,545 1,161,612 932,982 (3,381,139 ) — Other assets 47,674 — 66,805 — 114,479 Total assets $ 1,997,073 $ 1,531,989 $ 2,384,753 $ (3,383,541 ) $ 2,530,274 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 779 $ — $ 779 Notes payable to banks — — 10,678 — 10,678 Accounts payable 68,304 21,081 128,730 — 218,115 Accrued employee compensation and benefits 41,418 7,186 30,687 — 79,291 Accrued expenses 25,936 10,132 55,874 — 91,942 Dividends payable 8,230 — — — 8,230 Total current liabilities 143,888 38,399 226,748 — 409,035 Deferred income taxes 14,376 — 29,113 — 43,489 Long-term debt, excluding current installments 733,964 166,729 7,858 (166,729 ) 741,822 Defined benefit pension liability — — 143,904 — 143,904 Other noncurrent liabilities 45,083 620 10,798 — 56,501 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 2,027,596 624,394 467,699 (1,092,093 ) 2,027,596 Accumulated other comprehensive income (loss) (303,185 ) 80,991 (333,346 ) 252,355 (303,185 ) Treasury stock (692,549 ) — — — (692,549 ) Total Valmont Industries, Inc. shareholders’ equity 1,059,762 1,326,241 1,890,571 (3,216,812 ) 1,059,762 Noncontrolling interest in consolidated subsidiaries — — 75,761 — 75,761 Total shareholders’ equity 1,059,762 1,326,241 1,966,332 (3,216,812 ) 1,135,523 Total liabilities and shareholders’ equity $ 1,997,073 $ 1,531,989 $ 2,384,753 $ (3,383,541 ) $ 2,530,274 | |
Condensed Consolidated Statements of Cash Flows | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year ended December 28, 2019 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 153,769 $ 75,581 $ 42,555 $ (112,439 ) $ 159,466 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 26,734 13,518 42,012 — 82,264 Noncash loss on trading securities — — (172 ) — (172 ) Contribution to defined benefit pension plan — — (18,461 ) — (18,461 ) Stock-based compensation 11,587 — — — 11,587 Defined benefit pension plan (benefit) — — (513 ) — (513 ) (Gain) loss on sale of property, plant and equipment 133 240 (2,886 ) — (2,513 ) Equity in earnings in nonconsolidated subsidiaries (104,182 ) (7,900 ) — 112,082 — Deferred income taxes (3,120 ) — 7,060 — 3,940 Changes in assets and liabilities (net of acquisitions): Net working capital 103,019 (36,781 ) 13,641 355 80,234 Other noncurrent liabilities (505 ) (5 ) (764 ) — (1,274 ) Income taxes payable (refundable) 1,714 (2,012 ) (6,646 ) — (6,944 ) Net cash flows from operating activities 189,149 42,641 75,826 (2 ) 307,614 Cash flows from investing activities: Purchase of property, plant and equipment (59,394 ) (1,592 ) (36,439 ) — (97,425 ) Proceeds from sale of assets 87 48 5,421 — 5,556 Acquisitions, net of cash acquired — (63,141 ) (18,700 ) — (81,841 ) Proceeds from settlement of net investment hedge 11,184 — — — 11,184 Investments in nonconsolidated subsidiaries (3,500 ) — (2,669 ) — (6,169 ) Other, net (14,964 ) 14,210 1,297 2 545 Net cash flows from investing activities (66,587 ) (50,475 ) (51,090 ) 2 (168,150 ) Cash flows from financing activities: Borrowings under short-term agreements — — 11,327 — 11,327 Proceeds from long-term borrowings 31,000 — — — 31,000 Principal payments on long-term borrowings (10,000 ) — (768 ) — (10,768 ) Dividends paid (32,642 ) — — — (32,642 ) Dividends to noncontrolling interest — — (7,737 ) — (7,737 ) Intercompany dividends 65,651 53,676 (119,327 ) — — Purchase of noncontrolling interest (22,805 ) — (5,040 ) — (27,845 ) Intercompany capital contribution (13,284 ) — 13,284 — — Intercompany interest on long-term note — (45,155 ) 45,155 — — Proceeds from exercises under stock plans 13,619 — — — 13,619 Purchase of treasury shares (62,915 ) — — — (62,915 ) Purchase of common treasury shares - stock plan exercises (12,989 ) — — — (12,989 ) Net cash flows from financing activities (44,365 ) 8,521 (63,106 ) — (98,950 ) Effect of exchange rate changes on cash and cash equivalents — (36 ) (146 ) — (182 ) Net change in cash and cash equivalents 78,197 651 (38,516 ) — 40,332 Cash, cash equivalents, and restricted cash—beginning of year 104,256 5,518 203,436 — 313,210 Cash, cash equivalents, and restricted cash—end of period $ 182,453 $ 6,169 $ 164,920 $ — $ 353,542 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year ended December 29, 2018 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 94,351 $ 77,679 $ 32,440 $ (104,164 ) $ 100,306 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 26,155 13,959 42,713 — 82,827 Noncash loss on trading securities — — (62 ) — (62 ) Contribution to defined benefit pension plan — — (1,537 ) — (1,537 ) Impairment of property, plant and equipment — — 5,000 — 5,000 Impairment of goodwill & intangible assets — — 15,780 — 15,780 Loss on divestiture of grinding media business 2,518 — 3,566 — 6,084 Stock-based compensation 10,392 — — — 10,392 Defined benefit pension plan expense (benefit) — — (2,251 ) — (2,251 ) (Gain) loss on sale of property, plant and equipment 57 (37 ) (245 ) — (225 ) Equity in earnings in nonconsolidated subsidiaries (68,383 ) (37,304 ) — 105,687 — Deferred income taxes 1,532 1,791 (4,982 ) — (1,659 ) Changes in assets and liabilities (net of acquisitions): Net working capital (17,681 ) (13,962 ) (13,208 ) (1,769 ) (46,620 ) Other noncurrent liabilities (7,345 ) 615 (4,158 ) — (10,888 ) Income taxes payable (refundable) (6,176 ) (1,303 ) 3,340 — (4,139 ) Net cash flows from operating activities 35,420 41,438 76,396 (246 ) 153,008 Cash flows from investing activities: Purchase of property, plant and equipment (25,255 ) (13,115 ) (33,615 ) — (71,985 ) Proceeds from sale of assets 44 268 62,791 — 63,103 Acquisitions, net of cash acquired (57,805 ) — (85,215 ) — (143,020 ) Proceeds from settlement of net investment hedge (1,621 ) — — — (1,621 ) Other, net 69,714 (42,667 ) (29,215 ) 246 (1,922 ) Net cash flows from investing activities (14,923 ) (55,514 ) (85,254 ) 246 (155,445 ) Cash flows from financing activities: Payments under short-term agreements — — 10,543 — 10,543 Proceeds from long-term borrowings 245,936 — 5,719 — 251,655 Principal payments on long-term borrowings (261,219 ) — (972 ) — (262,191 ) Settlement of financial derivative (2,467 ) — — — (2,467 ) Debt issuance costs (2,322 ) — — — (2,322 ) Dividends paid (33,726 ) — — — (33,726 ) Dividends to noncontrolling interest — — (7,055 ) — (7,055 ) Intercompany dividends 168,757 11,296 (180,053 ) — — Intercompany capital contribution (3,492 ) 3,492 — — — Purchase of noncontrolling interest — — (5,510 ) — (5,510 ) Proceeds from exercises under stock plans 7,357 — — — 7,357 Purchase of treasury shares (114,805 ) — — — (114,805 ) Purchase of common treasury shares - stock plan exercises (3,589 ) — — — (3,589 ) Net cash flows from financing activities 430 14,788 (177,328 ) — (162,110 ) Effect of exchange rate changes on cash and cash equivalents — (498 ) (14,550 ) — (15,048 ) Net change in cash and cash equivalents 20,927 214 (200,736 ) — (179,595 ) Cash, cash equivalents, and restricted cash—beginning of year 83,329 5,304 404,172 — 492,805 Cash, cash equivalents, and restricted cash—end of period $ 104,256 $ 5,518 $ 203,436 $ — $ 313,210 (22) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Year ended December 30, 2017 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 116,240 $ 52,562 $ 59,369 $ (105,852 ) $ 122,319 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 26,237 15,003 43,717 — 84,957 Noncash loss on trading securities — — 237 — 237 Stock-based compensation 10,706 — — — 10,706 Defined benefit pension plan expense (benefit) — — 648 — 648 Contribution to defined benefit pension plan — — (40,245 ) — (40,245 ) (Gain) loss on sale of property, plant and equipment (664 ) 8 (3,268 ) — (3,924 ) Equity in earnings in nonconsolidated subsidiaries (83,877 ) (22,146 ) — 106,023 — Deferred income taxes 10,307 — 29,448 — 39,755 Changes in assets and liabilities (net of acquisitions): Net working capital (23,943 ) (25,717 ) (25,219 ) (306 ) (75,185 ) Other noncurrent liabilities (140 ) — (7,088 ) — (7,228 ) Income taxes payable (refundable) (11,837 ) 728 12,217 — 1,108 Net cash flows from operating activities 43,029 20,438 69,816 (135 ) 133,148 Cash flows from investing activities: Purchase of property, plant and equipment (20,460 ) (9,454 ) (25,352 ) — (55,266 ) Proceeds from sale of assets 748 3 7,434 — 8,185 Acquisitions, net of cash acquired — — (5,362 ) — (5,362 ) Proceeds from settlement of net investment hedge 5,123 — — — 5,123 Other, net 684 (22,777 ) 19,663 135 (2,295 ) Net cash flows from investing activities (13,905 ) (32,228 ) (3,617 ) 135 (49,615 ) Cash flows from financing activities: Payments under short-term agreements — — (585 ) — (585 ) Principal payments on long-term borrowings — — (887 ) — (887 ) Dividends paid (33,862 ) — — — (33,862 ) Dividends to noncontrolling interest — — (5,674 ) — (5,674 ) Intercompany dividends 22,662 — (22,662 ) — — Intercompany capital contribution (10,818 ) 10,818 — — — Proceeds from exercises under stock plans 35,159 — — — 35,159 Purchase of common treasury shares - stock plan exercises (26,161 ) — — — (26,161 ) Net cash flows from financing activities (13,020 ) 10,818 (29,808 ) — (32,010 ) Effect of exchange rate changes on cash and cash equivalents — 205 27,477 — 27,682 Net change in cash and cash equivalents 16,104 (767 ) 63,868 — 79,205 Cash, cash equivalents, and restricted cash—beginning of year 67,225 6,071 340,304 — 413,600 Cash, cash equivalents, and restricted cash—end of period $ 83,329 $ 5,304 $ 404,172 $ — $ 492,805 |
QUARTERLY FINANCIAL DATA (Una_2
QUARTERLY FINANCIAL DATA (Unaudited) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data (Unaudited) | Net Earnings Gross Per Share Stock Price Dividends Net Sales Profit Amount Basic Diluted High Low Declared 2019 First $ 692,139 $ 165,129 $ 36,481 $ 1.67 $ 1.66 $ 139.50 $ 107.43 $ 0.375 Second 700,871 180,414 41,397 1.90 1.90 136.75 112.94 0.375 Third 690,340 176,086 40,144 1.86 1.85 146.46 123.74 0.375 Fourth 683,626 170,867 35,747 1.67 1.66 151.46 123.80 0.375 Year $ 2,766,976 $ 692,496 $ 153,769 $ 7.10 $ 7.06 $ 151.46 $ 107.43 $ 1.50 2018 First $ 698,684 $ 169,240 $ 39,281 $ 1.74 $ 1.72 $ 171.55 $ 140.10 $ 0.375 Second 682,405 174,999 32,960 1.47 1.46 154.60 137.90 0.375 Third (1) 678,692 164,340 4,448 0.20 0.20 157.15 135.00 0.375 Fourth (2) 697,363 149,701 17,662 0.80 0.80 141.38 103.01 0.375 Year $ 2,757,144 $ 658,280 $ 94,351 $ 4.23 $ 4.20 $ 171.55 $ 103.01 $ 1.50 Earnings per share are computed independently for each of the quarters. Therefore, the sum of the quarterly earnings per share may not equal the total for the year. _______________________________ (1) The third quarter of 2018 included an impairment of goodwill and intangible assets totaling $14,736 after tax ( $0.66 per share) and refinancing of long-term debt expenses of $11,115 after-tax ( $0.50 per share). (2) In the fourth quarter of 2018, the Company recognized restructuring activities expenses and non-recurring asset impairment charges from exiting certain markets of $20,625 after-tax ( $0.92 per share). |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019USD ($)segment | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Cash overdrafts | |||
Cash book overdrafts | $ 13,971 | $ 8,888 | |
Segments | |||
Number of reportable segments | segment | 4 | ||
Maximum percentage of sales of other businesses and activities to consolidated sales as basis for aggregation | 10.00% | ||
Fiscal year | |||
Length of fiscal year | 364 days | 371 days | 364 days |
Accounts receivable | |||
Allowance for doubtful accounts | $ 9,548 | ||
Inventories | |||
Inventory valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market | 41.00% | 37.00% | |
Excess of replacement cost of inventories over the LIFO value | $ 43,805 | $ 53,619 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | 64,177 | 67,499 | $ 69,046 |
Research and Development [Abstract] | |||
Research and development expense | $ 13,900 | $ 11,500 | $ 11,600 |
Minimum | |||
Principles of Consolidation | |||
Equity method investment in affiliates, ownership percentage | 20.00% | ||
Property, Plant and Equipment [Abstract] | |||
Intangible assets lives | 5 years | ||
Maximum | |||
Principles of Consolidation | |||
Equity method investment in affiliates, ownership percentage | 50.00% | ||
Cost method investment in affiliates, ownership percentage | 20.00% | ||
Property, Plant and Equipment [Abstract] | |||
Intangible assets lives | 20 years | ||
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 15 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 40 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 12 years | ||
Transportation equipment | Minimum | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 3 years | ||
Transportation equipment | Maximum | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 24 years | ||
Office furniture and equipment | Minimum | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 3 years | ||
Office furniture and equipment | Maximum | |||
Property, Plant and Equipment [Abstract] | |||
Estimated useful lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - PP&E (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Long-lived assets | |||
Depreciation expense | $ 64,177 | $ 67,499 | $ 69,046 |
Buildings and improvements | Minimum | |||
Long-lived assets | |||
Estimated useful lives | 15 years | ||
Buildings and improvements | Maximum | |||
Long-lived assets | |||
Estimated useful lives | 40 years | ||
Machinery and equipment | Minimum | |||
Long-lived assets | |||
Estimated useful lives | 3 years | ||
Machinery and equipment | Maximum | |||
Long-lived assets | |||
Estimated useful lives | 12 years | ||
Transportation equipment | Minimum | |||
Long-lived assets | |||
Estimated useful lives | 3 years | ||
Transportation equipment | Maximum | |||
Long-lived assets | |||
Estimated useful lives | 24 years | ||
Office furniture and equipment | Minimum | |||
Long-lived assets | |||
Estimated useful lives | 3 years | ||
Office furniture and equipment | Maximum | |||
Long-lived assets | |||
Estimated useful lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets (Details) | 12 Months Ended |
Dec. 28, 2019 | |
Minimum | |
Intangible assets | |
Intangible assets lives | 5 years |
Maximum | |
Intangible assets | |
Intangible assets lives | 20 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Comprehensive Income (Loss) (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Components of accumulated other comprehensive income (loss) | |
Beginning balance | $ 1,135,523 |
Ending balance | 1,156,891 |
Foreign Currency Translation Adjustments | |
Components of accumulated other comprehensive income (loss) | |
Beginning balance | (230,261) |
Current-period comprehensive income (loss) | (2,314) |
Ending balance | (232,575) |
Gain on Hedging Activities | |
Components of accumulated other comprehensive income (loss) | |
Beginning balance | 11,171 |
Current-period comprehensive income (loss) | 2,905 |
Ending balance | 14,076 |
Defined Benefit Pension Plan | |
Components of accumulated other comprehensive income (loss) | |
Beginning balance | (84,095) |
Current-period comprehensive income (loss) | (10,828) |
Ending balance | (94,923) |
Accumulated Other Comprehensive Income (Loss) | |
Components of accumulated other comprehensive income (loss) | |
Beginning balance | (303,185) |
Current-period comprehensive income (loss) | (10,237) |
Ending balance | $ (313,422) |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Inventories | $ 374,565 | $ 383,566 | $ 374,565 | $ 383,566 | |||||||
Contract assets | 141,322 | 112,525 | 141,322 | 112,525 | |||||||
Accrued expenses | 201,681 | 91,942 | 201,681 | 91,942 | |||||||
Deferred income tax liabilities, net | 47,955 | 43,489 | 47,955 | 43,489 | |||||||
Retained earnings | 2,140,948 | 2,027,596 | 2,140,948 | 2,027,596 | |||||||
Net sales | 683,626 | $ 690,340 | $ 700,871 | $ 692,139 | 697,363 | $ 678,692 | $ 682,405 | $ 698,684 | 2,766,976 | 2,757,144 | $ 2,745,967 |
Operating income | 237,720 | 202,280 | 267,080 | ||||||||
Contract with customer, liability, current | $ 117,945 | $ 4,906 | 117,945 | 4,906 | |||||||
Contract with customer, liability, revenue recognized | 3,921 | 5,222 | |||||||||
Utility Support Structures | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | 885,608 | 855,206 | 856,244 | ||||||||
Operating income | 87,788 | 64,766 | 97,853 | ||||||||
Engineered Support Structures | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | 1,002,076 | 967,358 | 912,240 | ||||||||
Operating income | 65,627 | 34,776 | 62,960 | ||||||||
Coatings | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | 300,640 | 286,739 | 256,811 | ||||||||
Operating income | 51,008 | 55,325 | 50,179 | ||||||||
Irrigation | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | 578,652 | 624,761 | 644,372 | ||||||||
Operating income | 71,687 | 97,722 | 101,498 | ||||||||
Other | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Operating income | 0 | (913) | $ 2,134 | ||||||||
Point in Time | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | 1,865,064 | 1,861,641 | |||||||||
Point in Time | Utility Support Structures | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | 47,450 | 16,760 | |||||||||
Point in Time | Engineered Support Structures | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | 952,056 | 922,677 | |||||||||
Point in Time | Coatings | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | 286,739 | ||||||||||
Point in Time | Irrigation | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | 564,918 | 612,385 | |||||||||
Point in Time | Other | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | 0 | 23,080 | |||||||||
Over Time | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | 901,912 | 895,503 | |||||||||
Over Time | Utility Support Structures | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | 838,158 | 838,446 | |||||||||
Over Time | Engineered Support Structures | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | 50,020 | 44,681 | |||||||||
Over Time | Coatings | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | 0 | 0 | |||||||||
Over Time | Irrigation | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | 13,734 | 12,376 | |||||||||
Over Time | Other | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Net sales | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share Repurchases (Details) - USD ($) | 1 Months Ended | 12 Months Ended | 68 Months Ended | |||
May 31, 2014 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 28, 2019 | Feb. 28, 2015 | |
Accounting Policies [Abstract] | ||||||
Authorized amount | $ 500,000,000 | $ 250,000,000 | ||||
Length of authorization period | 12 months | |||||
Shares acquired under share repurchase program | 491,045 | 843,278 | 5,922,454 | |||
Amount paid for share repurchase | $ 62,915,000 | $ 114,805,000 | $ 0 | $ 795,549,000 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | May 13, 2019 | Feb. 11, 2019 | Dec. 31, 2018 | Oct. 18, 2018 | Aug. 03, 2018 | Aug. 01, 2018 | Jan. 26, 2018 | Apr. 30, 2019 | Jan. 31, 2019 | Mar. 30, 2018 | Jun. 29, 2019 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Mar. 31, 2018 |
Business Acquisition [Line Items] | |||||||||||||||
Goodwill | $ 428,864 | $ 385,207 | $ 337,720 | ||||||||||||
Purchase of noncontrolling interest | 27,845 | $ 5,510 | $ 0 | ||||||||||||
Connect-It Wireless, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Cash paid to acquire business | $ 6,034 | ||||||||||||||
Goodwill | 3,299 | ||||||||||||||
United Galvanizing | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Cash paid to acquire business | $ 26,000 | ||||||||||||||
Consideration transferred | 28,000 | ||||||||||||||
Contingent consideration liability, current | 2,000 | 2,000 | |||||||||||||
Goodwill | 12,374 | ||||||||||||||
Property, plant, and equipment acquired | 10,987 | ||||||||||||||
Larson Camouflage | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Cash paid to acquire business | $ 31,106 | ||||||||||||||
Consideration transferred | 34,562 | ||||||||||||||
Contingent consideration liability, current | 3,456 | ||||||||||||||
Goodwill | 15,346 | ||||||||||||||
Property, plant, and equipment acquired | $ 1,151 | ||||||||||||||
Contingent consideration liability, as percent of purchase price | 10.00% | ||||||||||||||
CSP Coatings Systems Of Auckland | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Cash paid to acquire business | $ 17,711 | ||||||||||||||
Goodwill | 5,120 | ||||||||||||||
Property, plant, and equipment acquired | 7,373 | ||||||||||||||
Walpar | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Cash paid to acquire business | $ 57,805 | $ 23,082 | |||||||||||||
Goodwill | $ 45,453 | ||||||||||||||
Percentage acquired | 72.00% | 28.00% | |||||||||||||
Convert | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Cash paid to acquire business | $ 43,504 | $ 18,700 | |||||||||||||
Goodwill | $ 42,169 | ||||||||||||||
Percentage acquired | 75.00% | ||||||||||||||
Derit Infrastructure Pvt. Ltd. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Cash paid to acquire business | $ 14,700 | ||||||||||||||
Torrent Engineering and Equipment | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Cash paid to acquire business | $ 4,800 | ||||||||||||||
Goodwill | 3,922 | ||||||||||||||
Customer relationships and other intangible assets | $ 4,020 | ||||||||||||||
Percentage acquired | 60.00% | ||||||||||||||
Annual sales | $ 9,000 | ||||||||||||||
Walpar, Convert, Torrent and CSP Coatings | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Net sales of acquiree | $ 117,296 | ||||||||||||||
Valmont SM | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Percentage acquired | 4.80% | ||||||||||||||
Purchase of noncontrolling interest | $ 4,763 | ||||||||||||||
Valmont Industria e Commercio Ltda. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Percentage acquired | 10.00% | ||||||||||||||
Purchase of noncontrolling interest | $ 5,510 | ||||||||||||||
Customer Relationships | Connect-It Wireless, Inc. | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Customer relationships and other intangible assets | $ 828 | ||||||||||||||
Customer Relationships | United Galvanizing | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Customer relationships and other intangible assets | $ 3,170 | ||||||||||||||
Useful life | 10 years | ||||||||||||||
Customer Relationships | Larson Camouflage | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Customer relationships and other intangible assets | $ 16,223 | ||||||||||||||
Useful life | 12 years | ||||||||||||||
Customer Relationships | CSP Coatings Systems Of Auckland | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Customer relationships and other intangible assets | $ 3,113 | ||||||||||||||
Useful life | 10 years | ||||||||||||||
Customer Relationships | Walpar | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Useful life | 12 years | ||||||||||||||
Reduction in customer relationships | $ 3,500 | ||||||||||||||
Patents & Proprietary Technology | Convert | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Useful life | 15 years | ||||||||||||||
Trade Names | United Galvanizing | |||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||
Customer relationships and other intangible assets | $ 894 |
ACQUISITIONS - Assets acquired
ACQUISITIONS - Assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Aug. 03, 2018 | Dec. 30, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 428,864 | $ 385,207 | $ 337,720 | |
Walpar | ||||
Business Acquisition [Line Items] | ||||
Current assets | $ 13,210 | |||
Trade name | 3,500 | |||
Goodwill | 45,453 | |||
Total fair value of assets acquired | 90,663 | |||
Current liabilities | 2,197 | |||
Deferred taxes | 7,579 | |||
Total fair value of liabilities assumed | 9,776 | |||
Non-controlling interests | 23,082 | |||
Net assets acquired | 57,805 | |||
Convert | ||||
Business Acquisition [Line Items] | ||||
Current assets | 18,349 | |||
Other assets | 3,166 | |||
Trade name | 8,701 | |||
Goodwill | 42,169 | |||
Total fair value of assets acquired | 88,939 | |||
Current liabilities | 5,376 | |||
Contingent consideration liability | 19,497 | |||
Deferred taxes | 6,061 | |||
Total fair value of liabilities assumed | 30,934 | |||
Non-controlling interests | 14,501 | |||
Net assets acquired | 43,504 | |||
Intellectual Property | Convert | ||||
Business Acquisition [Line Items] | ||||
Customer relationships | 16,554 | |||
Customer Relationships | Walpar | ||||
Business Acquisition [Line Items] | ||||
Customer relationships | $ 28,500 |
ACQUISITIONS - Pro Forma Inform
ACQUISITIONS - Pro Forma Information (Details) - Walpar, Convert, Torrent and CSP Coatings - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Business Acquisition [Line Items] | |||
Net sales | $ 2,772,150 | $ 2,842,162 | $ 2,818,035 |
Net earnings | $ 154,302 | $ 98,292 | $ 122,407 |
Earnings per share-diluted (in dollars per share) | $ 7.09 | $ 4.38 | $ 5.39 |
DIVESTITURE - Narrative (Detail
DIVESTITURE - Narrative (Details) - Donhad $ in Thousands, $ in Thousands | Apr. 30, 2018AUD ($) | Apr. 30, 2018USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Pre-tax income/(loss) | $ (913) | $ 2,134 | ||
Disposed by sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from divestiture | $ 82,500 | $ 62,518 | ||
Pre-tax gain from divestiture, before recognition of currency translation loss | 4,334 | |||
Recognition of cumulative currency translation gain (loss) and hedges (out of OCI) | $ 10,418 |
RESTRUCTURING ACTIVITIES (Detai
RESTRUCTURING ACTIVITIES (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 29, 2019facility | Dec. 28, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 34,031 | |
Facility Closing | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of facilities closed | facility | 7 | |
ESS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 28,572 | |
ESS | Facility Closing | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of facilities closed | facility | 1 | |
ESS | Restructuring Asset Impairment | ||
Restructuring Cost and Reserve [Line Items] | ||
Impairments of current and other assets | 7,944 | |
Utility Support Structures Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 5,153 | |
Utility Support Structures Segment | Facility Closing | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of facilities closed | facility | 1 | |
Irrigation | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 180 | |
Other/ Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 126 | |
Cost of Sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 18,380 | |
Cost of Sales | Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 8,080 | |
Cost of Sales | Other cash restructuring expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 5,740 | |
Cost of Sales | Impairments of fixed assets/net loss on disposals | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 4,560 | |
Cost of Sales | ESS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 14,327 | |
Cost of Sales | ESS | Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 6,255 | |
Cost of Sales | ESS | Other cash restructuring expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3,512 | |
Cost of Sales | ESS | Impairments of fixed assets/net loss on disposals | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 4,560 | |
Cost of Sales | Utility Support Structures Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 4,053 | |
Cost of Sales | Utility Support Structures Segment | Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,825 | |
Cost of Sales | Utility Support Structures Segment | Other cash restructuring expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2,228 | |
Cost of Sales | Utility Support Structures Segment | Impairments of fixed assets/net loss on disposals | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | |
Cost of Sales | Irrigation | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | |
Cost of Sales | Irrigation | Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | |
Cost of Sales | Irrigation | Other cash restructuring expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | |
Cost of Sales | Irrigation | Impairments of fixed assets/net loss on disposals | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | |
Cost of Sales | Other/ Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | |
Cost of Sales | Other/ Corporate | Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | |
Cost of Sales | Other/ Corporate | Other cash restructuring expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | |
Cost of Sales | Other/ Corporate | Impairments of fixed assets/net loss on disposals | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | |
Selling, General and Administrative Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 15,651 | |
Selling, General and Administrative Expenses | Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 11,883 | |
Selling, General and Administrative Expenses | Other cash restructuring expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3,328 | |
Selling, General and Administrative Expenses | Impairments of fixed assets/net loss on disposals | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 440 | |
Selling, General and Administrative Expenses | ESS | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 14,245 | |
Selling, General and Administrative Expenses | ESS | Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 10,654 | |
Selling, General and Administrative Expenses | ESS | Other cash restructuring expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3,151 | |
Selling, General and Administrative Expenses | ESS | Impairments of fixed assets/net loss on disposals | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 440 | |
Selling, General and Administrative Expenses | Utility Support Structures Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,100 | |
Selling, General and Administrative Expenses | Utility Support Structures Segment | Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,100 | |
Selling, General and Administrative Expenses | Utility Support Structures Segment | Other cash restructuring expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | |
Selling, General and Administrative Expenses | Utility Support Structures Segment | Impairments of fixed assets/net loss on disposals | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | |
Selling, General and Administrative Expenses | Irrigation | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 180 | |
Selling, General and Administrative Expenses | Irrigation | Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 129 | |
Selling, General and Administrative Expenses | Irrigation | Other cash restructuring expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 51 | |
Selling, General and Administrative Expenses | Irrigation | Impairments of fixed assets/net loss on disposals | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | |
Selling, General and Administrative Expenses | Other/ Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 126 | |
Selling, General and Administrative Expenses | Other/ Corporate | Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | |
Selling, General and Administrative Expenses | Other/ Corporate | Other cash restructuring expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 126 | |
Selling, General and Administrative Expenses | Other/ Corporate | Impairments of fixed assets/net loss on disposals | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0 | |
CHINA | Facility Closing | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of facilities closed | facility | 3 |
DIVESTITURE - Summary of Gain (
DIVESTITURE - Summary of Gain (Loss) on Divestiture (Details) - USD ($) $ in Thousands | Apr. 30, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net pre-tax loss from divestiture of the grinding media business | $ 0 | $ (6,084) | $ 0 | |
Donhad | Disposed by sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Pre-tax gain from divestiture, before recognition of currency translation loss | $ 4,334 | |||
Recognition of cumulative currency translation loss and hedges (out of OCI) | (10,418) | |||
Net pre-tax loss from divestiture of the grinding media business | $ (6,084) |
RESTRUCTURING ACTIVITIES RESTRU
RESTRUCTURING ACTIVITIES RESTRUCTURING ACTIVITIES (Details 2) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 29, 2019USD ($)facility | Dec. 28, 2019USD ($) | |
Restructuring Cost and Reserve [Roll Forward] | ||
Beginning balance | $ 10,056 | $ 10,056 |
Recognized Restructuring Expense | 0 | |
Costs Paid or Otherwise Settled | (10,056) | |
Ending balance | 0 | |
Facility Closing | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of facilities closed | facility | 7 | |
Severance | ||
Restructuring Cost and Reserve [Roll Forward] | ||
Beginning balance | $ 6,594 | 6,594 |
Recognized Restructuring Expense | 0 | |
Costs Paid or Otherwise Settled | (6,594) | |
Ending balance | 0 | |
Other cash restructuring expenses | ||
Restructuring Cost and Reserve [Roll Forward] | ||
Beginning balance | $ 3,462 | 3,462 |
Recognized Restructuring Expense | 0 | |
Costs Paid or Otherwise Settled | (3,462) | |
Ending balance | $ 0 | |
CHINA | Facility Closing | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of facilities closed | facility | 3 | |
Utility | Facility Closing | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of facilities closed | facility | 1 | |
ESS | Facility Closing | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of facilities closed | facility | 1 |
CASH FLOW SUPPLEMENTARY INFOR_3
CASH FLOW SUPPLEMENTARY INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Feb. 11, 2019 | |
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Interest | $ 39,032 | $ 43,305 | $ 44,528 | |
Income taxes | 43,629 | $ 47,355 | $ 63,791 | |
United Galvanizing | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Consideration transferred | 2,000 | $ 2,000 | ||
Larson Camouflage | ||||
Noncash or Part Noncash Acquisitions [Line Items] | ||||
Consideration transferred | $ 3,456 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and purchased parts | $ 158,314 | $ 190,115 |
Work-in-process | 38,088 | 35,566 |
Finished goods and manufactured goods | 221,968 | 211,504 |
Subtotal | 418,370 | 437,185 |
Less: LIFO reserve | 43,805 | 53,619 |
Net inventory | $ 374,565 | $ 383,566 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Long-lived assets | ||
Property, plant and equipment, at cost | $ 1,245,261 | $ 1,160,865 |
Land and improvements | ||
Long-lived assets | ||
Property, plant and equipment, at cost | 111,091 | 99,797 |
Buildings and improvements | ||
Long-lived assets | ||
Property, plant and equipment, at cost | 364,396 | 348,836 |
Machinery and equipment | ||
Long-lived assets | ||
Property, plant and equipment, at cost | 584,447 | 549,311 |
Transportation equipment | ||
Long-lived assets | ||
Property, plant and equipment, at cost | 23,650 | 24,380 |
Office furniture and equipment | ||
Long-lived assets | ||
Property, plant and equipment, at cost | 85,130 | 85,239 |
Construction in progress | ||
Long-lived assets | ||
Property, plant and equipment, at cost | $ 76,547 | $ 53,302 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Components of amortized intangible assets | |||||
Gross Carrying Amount | $ 269,748 | $ 251,141 | $ 269,748 | $ 251,141 | |
Accumulated Amortization | 163,113 | 143,908 | 163,113 | 143,908 | |
Amortization expense for intangible assets | 18,087 | 15,328 | $ 15,911 | ||
Estimated Amortization Expense | |||||
2020 | 17,343 | 17,343 | |||
2021 | 15,298 | 15,298 | |||
2022 | 13,120 | 13,120 | |||
2023 | 11,345 | 11,345 | |||
2024 | 9,434 | 9,434 | |||
Customer Relationships | |||||
Components of amortized intangible assets | |||||
Gross Carrying Amount | 237,626 | 219,508 | 237,626 | 219,508 | |
Accumulated Amortization | 149,720 | 132,180 | $ 149,720 | $ 132,180 | |
Weighted Average Life | 13 years | 13 years | |||
Patents & Proprietary Technology | |||||
Components of amortized intangible assets | |||||
Gross Carrying Amount | 24,068 | 23,662 | $ 24,068 | $ 23,662 | |
Accumulated Amortization | 6,358 | 4,837 | $ 6,358 | $ 4,837 | |
Weighted Average Life | 14 years | 14 years | |||
Other | |||||
Components of amortized intangible assets | |||||
Gross Carrying Amount | 8,054 | 7,971 | $ 8,054 | $ 7,971 | |
Accumulated Amortization | $ 7,035 | $ 6,891 | $ 7,035 | $ 6,891 | |
Weighted Average Life | 5 years | 5 years |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Details 2) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Newmark | ||
Non-amortized intangible assets | ||
Carrying value of trade names | $ 11,111 | $ 11,111 |
Webforge | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 9,143 | 8,872 |
Valmont SM | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 7,966 | 8,155 |
Ingal EPS/Ingal Civil Products | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 7,454 | 7,233 |
Shakespeare | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 4,000 | 4,000 |
Walpar | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 3,500 | 4,300 |
Convert | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 8,378 | 8,580 |
Other | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 17,555 | 16,472 |
Trade Names | ||
Non-amortized intangible assets | ||
Carrying value of trade names | $ 69,107 | $ 68,723 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Goodwill [Line Items] | ||||
Goodwill, Gross | $ 434,454 | $ 372,612 | ||
Accumulated impairment losses | (49,247) | (34,892) | ||
Carrying amount of goodwill | ||||
Balance at the beginning of the period | $ 385,207 | 337,720 | ||
Acquisitions | 42,133 | 87,119 | ||
Impairment | $ (14,355) | (14,355) | ||
Divestiture of grinding media | (15,814) | |||
Foreign currency translation | 1,524 | (9,463) | ||
Balance at the end of the period | 428,864 | 385,207 | ||
Engineered Support Structures Segment | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 204,735 | 170,076 | ||
Accumulated impairment losses | (18,670) | (18,670) | ||
Carrying amount of goodwill | ||||
Balance at the beginning of the period | 186,065 | 151,406 | ||
Acquisitions | 21,870 | 42,216 | ||
Impairment | 0 | |||
Divestiture of grinding media | 0 | |||
Foreign currency translation | 2,029 | (7,557) | ||
Balance at the end of the period | 209,964 | 186,065 | ||
Utility Support Structures Segment | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 123,618 | 90,248 | ||
Accumulated impairment losses | (14,355) | 0 | ||
Carrying amount of goodwill | ||||
Balance at the beginning of the period | 109,263 | 90,248 | ||
Acquisitions | 7,889 | 34,280 | ||
Impairment | (14,355) | |||
Divestiture of grinding media | 0 | |||
Foreign currency translation | (913) | (910) | ||
Balance at the end of the period | 116,239 | 109,263 | ||
Coatings Segment | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 80,937 | 76,696 | ||
Accumulated impairment losses | (16,222) | (16,222) | ||
Carrying amount of goodwill | ||||
Balance at the beginning of the period | 64,715 | 60,474 | ||
Acquisitions | 12,374 | 5,120 | ||
Impairment | 0 | |||
Divestiture of grinding media | 0 | |||
Foreign currency translation | 436 | (879) | ||
Balance at the end of the period | 77,525 | 64,715 | ||
Irrigation Segment | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 25,164 | 19,778 | ||
Accumulated impairment losses | 0 | 0 | ||
Carrying amount of goodwill | ||||
Balance at the beginning of the period | 25,164 | 19,778 | ||
Acquisitions | 0 | 5,503 | ||
Impairment | 0 | |||
Divestiture of grinding media | 0 | |||
Foreign currency translation | (28) | (117) | ||
Balance at the end of the period | 25,136 | 25,164 | ||
Other | ||||
Goodwill [Line Items] | ||||
Goodwill, Gross | 15,814 | |||
Accumulated impairment losses | $ 0 | |||
Carrying amount of goodwill | ||||
Balance at the beginning of the period | $ 0 | 15,814 | ||
Acquisitions | 0 | |||
Impairment | 0 | |||
Divestiture of grinding media | (15,814) | |||
Foreign currency translation | 0 | |||
Balance at the end of the period | $ 0 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Sep. 28, 2019 | Dec. 30, 2017 | |
Indefinite-lived Intangible Assets | |||||
Goodwill | $ 428,864 | $ 385,207 | $ 337,720 | ||
Hypothetical change in discount rate | 1.00% | ||||
Effect of change in discount rate on fair value of reporting unit | $ 15,000 | ||||
Goodwill impairment | $ 14,355 | $ 14,355 | |||
Access Systems | |||||
Indefinite-lived Intangible Assets | |||||
Goodwill | $ 45,727 | ||||
Valmont SM | |||||
Indefinite-lived Intangible Assets | |||||
Impairment of intangible assets | $ 1,425 |
BANK CREDIT ARRANGEMENTS (Detai
BANK CREDIT ARRANGEMENTS (Details) - USD ($) | Dec. 28, 2019 | Dec. 29, 2018 |
Bank Credit Arrangements | ||
Outstanding amount | $ 21,774,000 | $ 10,678,000 |
Short-term borrowings | ||
Bank Credit Arrangements | ||
Total line of credit facility for short-term borrowings | 132,849,000 | |
Outstanding amount | $ 21,774,000 | $ 10,678,000 |
Weighted average interest rate on short-term borrowings | 2.54% | |
Unused and available borrowings | $ 111,075,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | ||||
United States | $ 175,923,000 | $ 127,852,000 | $ 152,372,000 | |
Foreign | 33,750,000 | 15,589,000 | 76,092,000 | |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 209,673,000 | 143,441,000 | 228,464,000 | |
2017 tax act, estimated income tax expense | 41,935,000 | |||
2017 tax act, estimated income tax expense from decrease related to deferred taxes | $ 20,372,000 | 20,372,000 | ||
Unremitted foreign earnings | 394,000,000 | 394,000,000 | ||
Income Tax Contingency [Line Items] | ||||
2017 tax act, provisional transition tax obligation | 785,000 | |||
Current: | ||||
Federal | 27,809,000 | 21,106,000 | 49,324,000 | |
State | 5,568,000 | 6,585,000 | 4,415,000 | |
Foreign | 13,130,000 | 17,559,000 | 12,880,000 | |
Total | 46,507,000 | 45,250,000 | 66,619,000 | |
Non-current: | (240,000) | (456,000) | (229,000) | |
Deferred: | ||||
Federal | 2,108,000 | 213,000 | (9,626,000) | |
State | 553,000 | 9,000 | (385,000) | |
Foreign | 11,673,000 | 1,279,000 | (1,881,000) | 49,766,000 |
Total | 3,940,000 | (1,659,000) | 39,755,000 | |
Total income tax expense (benefit) | $ 50,207,000 | $ 43,135,000 | $ 106,145,000 | |
Reconciliations of statutory federal income tax rate and effective tax rate | ||||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% | |
State income taxes, net of federal benefit | 2.50% | 3.50% | 1.40% | |
Carryforwards, credits and changes in valuation allowances | (1.00%) | 3.20% | (1.40%) | |
Foreign tax rate differences | 0.30% | (1.00%) | (4.10%) | |
Changes in unrecognized tax benefits | (0.10%) | (0.30%) | (0.10%) | |
Domestic production activities deduction | 0.00% | 0.00% | (2.10%) | |
Goodwill impairment | 0.00% | 2.20% | 0.00% | |
Effects of 2017 Tax Act | 0.00% | (0.50%) | 18.40% | |
Other | 1.30% | 2.00% | (0.60%) | |
Total | 24.00% | 30.10% | 46.50% | |
Deferred income tax assets: | ||||
Accrued expenses and allowances | 8,268,000 | $ 16,148,000 | $ 8,268,000 | |
Tax credits and loss carryforwards | 56,867,000 | 64,116,000 | 56,867,000 | |
Defined benefit pension liability | 36,328,000 | 35,539,000 | 36,328,000 | |
Inventory allowances | 3,320,000 | 5,599,000 | 3,320,000 | |
Accrued compensation and benefits | 13,122,000 | 14,122,000 | 13,122,000 | |
Lease liabilities | 21,763,000 | |||
Deferred compensation | 16,228,000 | 15,174,000 | 16,228,000 | |
Gross deferred income tax assets | 134,133,000 | 172,461,000 | 134,133,000 | |
Valuation allowance | (33,228,000) | (35,215,000) | (33,228,000) | |
Net deferred income tax assets | 100,905,000 | 137,246,000 | 100,905,000 | |
Deferred income tax liabilities: | ||||
Property, plant and equipment | 25,477,000 | 31,628,000 | 25,477,000 | |
Intangible assets | 44,850,000 | 49,686,000 | 44,850,000 | |
Lease assets | 22,066,000 | |||
Other deferred tax liabilities | 7,291,000 | 6,067,000 | 7,291,000 | |
Total deferred income tax liabilities | 77,618,000 | 109,447,000 | 77,618,000 | |
Net deferred income tax asset | 23,287,000 | 27,799,000 | 23,287,000 | |
Deferred income tax assets (liabilities), Balance Sheet Caption | ||||
Other assets | 66,776,000 | 75,754,000 | 66,776,000 | |
Deferred income taxes | (43,489,000) | (47,955,000) | (43,489,000) | |
Net deferred income tax asset | 23,287,000 | 27,799,000 | 23,287,000 | |
Income tax expense due to nondeductible goodwill impairment | 3,171,000 | |||
Income tax expense due to nondeductible restructuring charges | 6,756,000 | |||
Tax credit and net operating loss carryforwards related to the defined benefit pension obligation | 56,867,000 | 64,116,000 | 56,867,000 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Gross Unrecognized Tax Benefits beginning of year | 2,599,000 | 3,196,000 | ||
Gross increases—tax positions in prior period | 29,000 | 103,000 | ||
Gross decreases—tax positions in prior period | 0 | (199,000) | ||
Gross increases—current‑period tax positions | 593,000 | 280,000 | ||
Settlements with taxing authorities | (150,000) | (50,000) | ||
Lapse of statute of limitations | (771,000) | (731,000) | ||
Gross Unrecognized Tax Benefits end of year | 2,599,000 | 2,300,000 | 2,599,000 | $ 3,196,000 |
Uncertain tax positions for which reversal is reasonably possible during the next 12 months | 685,000 | |||
Reduction of income tax expense, due to expiration of statutes of limitation | 609,000 | 577,000 | ||
Accrued interest and penalties relating to unrecognized tax benefits | 196,000 | 178,000 | 196,000 | |
Unrecognized tax benefits that, if recognized, would affect effective tax rate | 2,536,000 | 2,224,000 | 2,536,000 | |
Federal | ||||
Income Tax Contingency [Line Items] | ||||
2017 tax act, provisional transition tax obligation | 9,890,000 | |||
2017 tax act, measurement basis adjustment, expense (benefit) | (550,000) | |||
Foreign | ||||
Income Tax Contingency [Line Items] | ||||
2017 tax act, provisional transition tax obligation | 10,373,000 | |||
2017 tax act, measurement basis adjustment, expense (benefit) | (140,000) | |||
2017 tax act, transition tax obligation | 754,000 | |||
State | ||||
Income Tax Contingency [Line Items] | ||||
2017 tax act, provisional transition tax obligation | $ 1,300,000 | |||
2017 tax act, transition tax obligation | $ 43,000 | |||
Accounting Standards Update 2015-17 | ||||
Deferred income tax assets: | ||||
Accrued compensation and benefits | 12,478,000 | 12,478,000 | ||
Deferred compensation | 28,706,000 | 28,706,000 | ||
Deferred income tax assets (liabilities), Balance Sheet Caption | ||||
Accrued warranty amount aggregated with accrued expenses and allowances | 3,914,000 | 3,914,000 | ||
Accrued insurance aggregated with accrued compensation and benefits | 644,000 | 644,000 | ||
Work in progress aggregated with inventory allowances | 1,064,000 | 1,064,000 | ||
Future repatriation of foreign earnings aggregated with other deferred tax liabilities | $ 2,746,000 | $ 2,746,000 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | 12 Months Ended | |||
Dec. 28, 2019 | Jun. 29, 2019 | Dec. 29, 2018 | Jun. 19, 2018 | |
Long-term debt: | ||||
Debt issuance costs | $ (7,786,000) | $ (8,068,000) | ||
Total long-term debt | 765,704,000 | 742,601,000 | ||
Less current installments of long-term debt | 760,000 | 779,000 | ||
Long-term debt, excluding current installments | $ 764,944,000 | $ 741,822,000 | ||
Effective interest rate | 2.73% | 3.27% | ||
Minimum aggregate maturities of long-term debt | ||||
2020 | $ 760,000 | |||
2021 | 761,000 | |||
2022 | 568,000 | |||
2023 | 0 | |||
2024 | $ 0 | |||
Senior Unsecured Notes 5.00% Due 2044 | ||||
Long-term debt: | ||||
Interest rate on notes | 5.00% | |||
Redemption price of notes, stated as a percentage of principal amount | 100.00% | |||
Senior Unsecured Notes 5.25% Due 2054 | ||||
Long-term debt: | ||||
Aggregate amount | $ 305,000,000 | |||
Debt Instrument, Unamortized Discount | $ 7,468,000 | |||
Interest rate on notes | 5.25% | |||
Redemption price of notes, stated as a percentage of principal amount | 100.00% | |||
Unamortized discount on 5.00% and 5.25% senior unsecured notes | ||||
Long-term debt: | ||||
Unamortized premium on senior unsecured notes | $ (21,143,000) | $ (21,468,000) | ||
Revolving credit agreement | ||||
Long-term debt: | ||||
Total long-term debt | 29,044,000 | 5,719,000 | ||
Outstanding line of credit | 14,608,000 | |||
Unused and available borrowings | $ 556,569,000 | |||
Revolving credit agreement | Minimum | ||||
Long-term debt: | ||||
Basis points added to variable rate | 0.00% | |||
Revolving credit agreement | Maximum | ||||
Long-term debt: | ||||
Basis points added to variable rate | 0.625% | |||
Revolving credit agreement | LIBOR | ||||
Long-term debt: | ||||
Variable interest rate basis | LIBOR (based on a 1, 2, 3 or 6 month interest period, as selected by the Company) | |||
Basis points added to variable rate | 1.00% | |||
Variable interest rate, base period | 1 month | |||
Revolving credit agreement | LIBOR | Minimum | ||||
Long-term debt: | ||||
Basis points added to variable rate | 1.00% | |||
Revolving credit agreement | LIBOR | Maximum | ||||
Long-term debt: | ||||
Basis points added to variable rate | 1.65% | |||
Revolving credit agreement | Prime lending rate | ||||
Long-term debt: | ||||
Variable interest rate basis | prime lending rate | |||
Revolving credit agreement | Federal Funds rate | ||||
Long-term debt: | ||||
Variable interest rate basis | Federal Funds rate | |||
Basis points added to variable rate | 0.50% | |||
IDR Bonds | ||||
Long-term debt: | ||||
Total long-term debt | $ 8,500,000 | 8,500,000 | ||
Other notes | ||||
Long-term debt: | ||||
Total long-term debt | 2,089,000 | 2,918,000 | ||
Short Term Bank Lines Of Credit | ||||
Long-term debt: | ||||
Balance | 132,849,000 | |||
Unused and available borrowings | 111,075,000 | |||
Senior Unsecured Notes 5.00% Due 2044 | ||||
Long-term debt: | ||||
Interest rate on notes | 5.00% | |||
Senior Unsecured Notes 5.00% Due 2044 | Senior Notes | ||||
Long-term debt: | ||||
Aggregate amount | 450,000,000 | $ 450,000,000 | $ 200,000,000 | |
Debt Instrument, Unamortized Discount | 13,675,000 | |||
Interest rate on notes | 5.00% | |||
Senior Unsecured Notes 5.25% Due 2054 | Senior Notes | ||||
Long-term debt: | ||||
Aggregate amount | 305,000,000 | $ 305,000,000 | $ 55,000,000 | |
Interest rate on notes | 5.25% | |||
Revolving Credit Facility | ||||
Long-term debt: | ||||
Total line of credit facility for short-term borrowings | 600,000 | |||
Unused and available borrowings | 400,000 | |||
Additional borrowing capacity | 200,000 | |||
Revolving Credit Facility | Revolving credit agreement | ||||
Long-term debt: | ||||
Outstanding line of credit | $ 29,044,000 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Stock Based Compensation | |||
Shares of common stock available for issuance | 1,208,223 | ||
Number of Shares | |||
Exercised (in shares) | (119,789) | (63,717) | (284,574) |
Share-based Payment Arrangement, Option | |||
Stock Based Compensation | |||
Compensation expense (included in selling, general and administrative expenses) | $ 11,587 | $ 10,392 | $ 10,706 |
Tax benefits associated with compensation expense | $ 2,897 | $ 2,598 | $ 4,068 |
Weighted average period over which unrecognized stock option compensation cost would be recognized | 2 years 3 months 21 days | ||
Unrecognized stock option compensation expense | $ 4,979 | ||
Assumptions used in estimating fair value of each option grant | |||
Expected volatility | 33.13% | 33.39% | 33.76% |
Risk-free interest rate | 1.69% | 2.67% | 2.12% |
Expected life from vesting date | 3 years | 3 years | 3 years |
Dividend yield | 1.07% | 1.07% | 1.17% |
Number of Shares | |||
Balance at the beginning of the period (in shares) | 578,413 | 570,622 | 793,173 |
Granted (in shares) | 57,648 | 105,135 | 67,965 |
Exercised (in shares) | (119,789) | (63,717) | (284,574) |
Forfeited (in shares) | (27,712) | (33,627) | (5,942) |
Balance at the end of the period (in shares) | 488,560 | 578,413 | 570,622 |
Options vested or expected to vest (in shares) | 478,575 | 565,952 | 558,114 |
Options exercisable (in shares) | 341,828 | 405,128 | 351,794 |
Weighted Average Exercise Price | |||
Balance at the beginning of the period (in dollars per share) | $ 127.74 | $ 128.34 | $ 122.77 |
Granted (in dollars per share) | 147.31 | 112.08 | 164.35 |
Exercised (in dollars per share) | 113.02 | 106.26 | 121.92 |
Forfeited (in dollars per share) | 137.07 | 129.52 | 104.26 |
Balance at the end of the period (in dollars per share) | 133.13 | 127.74 | 128.34 |
Options vested or expected to vest (in dollars per share) | 133.21 | 127.84 | 128 |
Options exercisable (in dollars per share) | $ 133.32 | $ 126.61 | $ 123.90 |
Weighted Average Remaining Contractual Term | |||
Options outstanding | 4 years 14 days | 4 years 4 months 6 days | 4 years 7 months 28 days |
Options vested or expected to vest | 3 years 11 months 26 days | 4 years 3 months 18 days | 4 years 7 months 17 days |
Options exercisable | 3 years 2 months 8 days | 3 years 5 months 19 days | 3 years 11 months 8 days |
Aggregate Intrinsic Value | |||
Options outstanding | $ 9,291 | $ 909 | $ 21,806 |
Options vested or expected to vest | 9,078 | 909 | 21,517 |
Options exercisable | $ 6,470 | $ 909 | $ 15,005 |
Other option disclosures | |||
Weighted average per share fair value of option granted | $ 37.85 | $ 30.48 | $ 43.68 |
Share-based Payment Arrangement, Option | Minimum | |||
Stock Based Compensation | |||
Vesting period of options | 3 years | ||
Expiration period of grant | 7 years | ||
Restricted Stock and Awards | |||
Assumptions used in estimating fair value of each option grant | |||
Expected life from vesting date | 3 years |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Details 2) | 12 Months Ended |
Dec. 28, 2019$ / sharesshares | |
Options outstanding and exercisable by price range | |
Options Outstanding, Number (in shares) | shares | 488,560 |
Options Exercisable, Number (in shares) | shares | 341,828 |
Range of exercise price per share from $104.47 and $112.08 | |
Options outstanding and exercisable by price range | |
Options Outstanding, Number (in shares) | shares | 183,658 |
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 7 months 2 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 108.58 |
Options Exercisable, Number (in shares) | shares | 113,866 |
Options Exercisable Weighted Average Exercise Price (in dollars per share) | $ 106.43 |
Range of exercise price per share from $123.87 and $132.84 | |
Options outstanding and exercisable by price range | |
Options Outstanding, Number (in shares) | shares | 70,396 |
Options Outstanding, Weighted Average Remaining Contractual Life | 1 year 11 months 12 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 132.70 |
Options Exercisable, Number (in shares) | shares | 70,396 |
Options Exercisable Weighted Average Exercise Price (in dollars per share) | $ 132.70 |
Range of exercise price per share from $142.67 to $164.35 | |
Options outstanding and exercisable by price range | |
Options Outstanding, Number (in shares) | shares | 234,506 |
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 2 months 26 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 152.75 |
Options Exercisable, Number (in shares) | shares | 157,566 |
Options Exercisable Weighted Average Exercise Price (in dollars per share) | $ 152.97 |
Minimum | Range of exercise price per share from $104.47 and $112.08 | |
Options outstanding and exercisable by price range | |
Exercise price range, low end of range (in dollars per share) | 104.47 |
Minimum | Range of exercise price per share from $123.87 and $132.84 | |
Options outstanding and exercisable by price range | |
Exercise price range, low end of range (in dollars per share) | 123.87 |
Minimum | Range of exercise price per share from $142.67 to $164.35 | |
Options outstanding and exercisable by price range | |
Exercise price range, low end of range (in dollars per share) | 142.67 |
Maximum | Range of exercise price per share from $104.47 and $112.08 | |
Options outstanding and exercisable by price range | |
Exercise price range, high end of range (in dollars per share) | 112.08 |
Maximum | Range of exercise price per share from $123.87 and $132.84 | |
Options outstanding and exercisable by price range | |
Exercise price range, high end of range (in dollars per share) | 132.84 |
Maximum | Range of exercise price per share from $142.67 to $164.35 | |
Options outstanding and exercisable by price range | |
Exercise price range, high end of range (in dollars per share) | $ 164.35 |
STOCK-BASED COMPENSATION (Det_3
STOCK-BASED COMPENSATION (Details 3) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Payment Arrangement, Option | |||
Stock Based Compensation | |||
Compensation expense | $ 11,587 | $ 10,392 | $ 10,706 |
Weighted-average period for grant of stock-based compensation | 2 years 3 months 21 days | ||
Deferred stock-based compensation granted | $ 4,979 | ||
Directors and certain management employees | Non-vested stock and restricted stock units | |||
Stock Based Compensation | |||
Shares granted | 78,318 | 88,127 | 62,160 |
Weighted‑average per share price on grant date | $ 145.89 | $ 114.89 | $ 163.18 |
Compensation expense | $ 8,815 | $ 6,328 | $ 5,569 |
Weighted-average period for grant of stock-based compensation | 1 year 8 months 12 days | ||
Deferred stock-based compensation granted | $ 19,501 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Basic EPS | |||||||||||
Net earnings attributable to Valmont Industries, Inc. | $ 35,747 | $ 40,144 | $ 41,397 | $ 36,481 | $ 17,662 | $ 4,448 | $ 32,960 | $ 39,281 | $ 153,769 | $ 94,351 | $ 116,240 |
Shares outstanding basic (in shares) | 21,659 | 22,306 | 22,520 | ||||||||
Per share amount basic (in dollars per share) | $ 1.67 | $ 1.86 | $ 1.90 | $ 1.67 | $ 0.80 | $ 0.20 | $ 1.47 | $ 1.74 | $ 7.10 | $ 4.23 | $ 5.16 |
Dilutive Effect of Stock Options | |||||||||||
Dilutive Effect of Stock Options | $ 0 | $ 0 | $ 0 | ||||||||
Dilutive effect of stock options number of shares (in shares) | 110 | 140 | 218 | ||||||||
Dilutive effect of stock options (in dollars per share) | $ 0.04 | $ 0.03 | $ 0.05 | ||||||||
Diluted EPS | |||||||||||
Diluted EPS | $ 153,769 | $ 94,351 | $ 116,240 | ||||||||
Shares outstanding dilutive (in shares) | 21,769 | 22,446 | 22,738 | ||||||||
Per share amount diluted (in dollars per share) | $ 1.66 | $ 1.85 | $ 1.90 | $ 1.66 | $ 0.80 | $ 0.20 | $ 1.46 | $ 1.72 | $ 7.06 | $ 4.20 | $ 5.11 |
EARNINGS PER SHARE (Details 2)
EARNINGS PER SHARE (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Impairment of goodwill & intangible assets | $ 0 | $ 15,780 | $ 0 | ||||||||
Impairment of goodwill and intangible assets (in dollars per share) | $ 0.66 | ||||||||||
Net earnings attributable to Valmont Industries, Inc. | $ 35,747 | $ 40,144 | $ 41,397 | $ 36,481 | $ 17,662 | $ 4,448 | $ 32,960 | $ 39,281 | $ 153,769 | $ 94,351 | $ 116,240 |
Basic (in dollars per share) | $ 1.67 | $ 1.86 | $ 1.90 | $ 1.67 | $ 0.80 | $ 0.20 | $ 1.47 | $ 1.74 | $ 7.10 | $ 4.23 | $ 5.16 |
Blended tax rate (percent) | 25.00% | ||||||||||
Refinancing of long-term debt expense | $ 11,115 | $ 11,115 | |||||||||
Refinancing of long-term debt expense (in dollars per share) | $ 0.50 | ||||||||||
Deferred income tax expense | $ 20,372 | $ 20,372 | |||||||||
Deferred income tax expense (in dollars per share) | $ 0.90 | ||||||||||
Provision charge for deemed repatriation tax | $ 9,890 | ||||||||||
Provision charge for deemed repatriation tax (in dollars per share) | $ 0.44 | ||||||||||
Deferred expenses related to foreign withholding taxes and US state income taxes | $ 11,673 | $ 1,279 | $ (1,881) | $ 49,766 | |||||||
Deferred expenses related to foreign withholding taxes and US state income taxes (in dollars per share) | $ 0.51 | ||||||||||
Outstanding stock options with exercise prices exceeding the market price of common stock, excluded from the computation of diluted earnings per share (in shares) | 130,704 | 406,806 | 0 | ||||||||
Goodwill And Indefinite-lived Intangible Assets | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Impairment of goodwill & intangible assets | $ 14,736 | ||||||||||
Impairment of goodwill and intangible assets (in dollars per share) | $ 0.66 | ||||||||||
2018 Restructuring Plan | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net earnings attributable to Valmont Industries, Inc. | $ (37,779) | ||||||||||
Basic (in dollars per share) | $ (1.68) | ||||||||||
Disposed by sale | Donhad | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Net earnings attributable to Valmont Industries, Inc. | $ 5,350 | ||||||||||
Basic (in dollars per share) | $ 0.24 |
EMPLOYEE RETIREMENT SAVINGS P_2
EMPLOYEE RETIREMENT SAVINGS PLAN (Details) - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Retirement Benefits [Abstract] | |||
Employee contribution limit per calendar year to 401 (k) plan | 50.00% | ||
Company contributions | $ 12,600,000 | $ 12,300,000 | $ 11,800,000 |
Assets related to non-qualified deferred compensation plan included in other assets | 36,290,000 | 37,516,000 | |
Liabilities related to non-qualified deferred compensation plan included in other noncurrent liabilities | 36,290 | 37,516 | |
Total amount distributed from non-qualified deferred compensation plan | $ 8,335,000 | $ 2,352,000 |
DISCLOSURES ABOUT THE FAIR VA_3
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) | Dec. 28, 2019 | Dec. 29, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets recorded for the investments held | $ 36,290,000 | $ 37,516,000 |
Liabilities recorded for the investments held | 36,290 | 37,516 |
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 | 36,500,000 | 40,024,000 |
Derivative financial instruments, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Derivative financial instruments, net | 3,247,000 | 9,147,000 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 0 | 0 |
Derivative financial instruments, net | 0 | 0 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 765,704,000 | 742,601,000 |
Trading securities | 36,500,000 | 40,024,000 |
Derivative financial instruments, net | 3,247,000 | 9,147,000 |
Estimated Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 826,413,000 | 683,602,000 |
EMD | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of remaining ownership | 210,000 | 2,508,000 |
Valmont Deferred Compensation Plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets recorded for the investments held | 36,290,000 | 37,516,000 |
Liabilities recorded for the investments held | $ 36,290 | $ 37,516 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Fair Value of Derivatives (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 3,247 | $ 9,147 |
Commodity forward contracts | Prepaid expenses and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 0 | (285) |
Foreign currency forward contracts | Prepaid expenses and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | 2,119 | 8,357 |
Cross currency swap contracts | Prepaid expenses and other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ 1,128 | $ 1,075 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - Gain (Loss) on Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 1,579 | $ 993 | $ (74) |
Commodity forward contracts | Product cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (2,130) | 1,021 | 0 |
Foreign currency forward contracts | Loss from divestiture of grinding media business | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | (1,215) | 0 |
Foreign currency forward contracts | Other income (expense) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 950 | 782 | 0 |
Interest rate contracts | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (64) | (423) | (74) |
Cross currency swap contracts | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 2,823 | $ 828 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 29, 2018USD ($)T | Sep. 29, 2018USD ($)T | Jun. 29, 2019USD ($)derivative | Dec. 28, 2019USD ($)T | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Jun. 19, 2018USD ($) | |
Derivative [Line Items] | |||||||
Deferred loss on interest rate hedges | $ 0 | $ (2,467,000) | $ 0 | ||||
Other comprehensive income (loss), cash flow hedge, reclassification for discontinuance, before tax | 411,000 | ||||||
Other comprehensive income (loss), foreign currency transaction upon sale or liquidation, net of tax | 0 | (9,203,000) | $ 0 | ||||
Interest Rate Swap | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | $ 175,000,000 | 175,000,000 | |||||
Cash Flow Hedging | Designated as Hedging Instrument | Commodity forward contracts | Long | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | $ 15,563,000 | $ 8,469,000 | $ 12,128,000 | 15,563,000 | |||
Derivative, nonmonetary notional amount, mass | T | 6,500 | 3,500 | 3,500 | ||||
Net Investment Hedging | Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
Derivative, number of instruments held | derivative | 2 | ||||||
Net Investment Hedging | Designated as Hedging Instrument | Cross currency swap contracts | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | $ 130,000,000 | ||||||
Derivative, number of instruments held | derivative | 3 | ||||||
Senior Unsecured Notes 5.00% Due 2044 | |||||||
Derivative [Line Items] | |||||||
Stated rate | 5.00% | ||||||
Senior Notes | Senior Unsecured Notes 5.00% Due 2044 | |||||||
Derivative [Line Items] | |||||||
Aggregate amount | $ 450,000,000 | $ 450,000,000 | $ 450,000,000 | $ 200,000,000 | |||
Stated rate | 5.00% | 5.00% | |||||
Senior Notes | Senior Unsecured Notes 5.25% Due 2054 | |||||||
Derivative [Line Items] | |||||||
Aggregate amount | $ 305,000,000 | $ 305,000,000 | $ 305,000,000 | $ 55,000,000 | |||
Stated rate | 5.25% | 5.25% | |||||
Australia, Dollars | Net Investment Hedging | Designated as Hedging Instrument | Foreign currency forward contracts | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | $ 100,000,000 | ||||||
Other comprehensive income (loss), net investment hedge, gain (loss), reclassification, before tax | 881,000 | ||||||
Other comprehensive income (loss), foreign currency transaction upon sale or liquidation, net of tax | $ 11,184,000 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Notional Amounts Outstanding (Details) - Designated as Hedging Instrument - Net Investment Hedging € in Thousands, kr in Thousands, $ in Thousands | Dec. 28, 2019USD ($) | Dec. 28, 2019DKK (kr) | Dec. 28, 2019EUR (€) | Jun. 29, 2019USD ($) |
Cross currency swap contracts | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 130,000 | |||
Denmark, Kroner | Cross Currency Interest Rate Contract, One | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 50,000 | kr 333,625 | ||
Swapped Interest Rate | 2.68% | 2.68% | 2.68% | |
Euro Member Countries, Euro | Cross Currency Interest Rate Contract, Two | ||||
Derivative [Line Items] | ||||
Derivative, notional amount | $ 80,000 | € 71,550 | ||
Swapped Interest Rate | 2.825% | 2.825% | 2.825% |
GUARANTEES (Details)
GUARANTEES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Changes in the product warranty accrual recorded in accrued expenses | ||
Balance, beginning of period | $ 17,008 | $ 20,109 |
Payments made | (17,484) | (18,920) |
Change in liability for warranties issued during the period | 16,080 | 13,566 |
Change in liability for pre-existing warranties | (2,072) | 2,253 |
Balance, end of period | $ 13,532 | $ 17,008 |
DEFINED BENEFIT RETIREMENT PL_3
DEFINED BENEFIT RETIREMENT PLAN (Details) £ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019USD ($)item$ / £ | Dec. 28, 2019GBP (£)item | Dec. 29, 2018USD ($)$ / £ | Dec. 30, 2017USD ($) | |
Defined Benefit Plan [Abstract] | ||||
Pension retirement benefits to qualified employees as percent of final salary per year of service | 1.67% | 1.67% | ||
Eligibility age | 65 years | 65 years | ||
Active members of defined benefit retirement income plan | item | 0 | 0 | ||
Foreign currency exchange rate used to translate the net pension liability | $ / £ | 1.308 | 1.269 | ||
Net periodic benefit cost | $ 3,008 | |||
Projected Benefit Obligation | ||||
Beginning balance | 647,440 | $ 783,301 | ||
Interest cost | 16,923 | 17,878 | ||
Prior service costs - GMP equalization | £ 9,500 | 12,056 | ||
Benefits paid | (20,769) | (28,207) | ||
Actuarial (gain) loss | 79,485 | (95,480) | ||
Currency translation | 21,324 | (42,108) | ||
Ending balance | 744,403 | 647,440 | ||
Plan Assets | ||||
Fair value beginning balance | 503,536 | 593,749 | ||
Employer contributions | 18,461 | 1,537 | ||
Actual return on plan assets | 86,081 | (32,120) | ||
Benefits paid | (20,769) | (28,207) | ||
Currency translation | 17,087 | (31,423) | ||
Fair value ending balance | 604,396 | 503,536 | ||
Funded status | ||||
Funded status | (140,007) | (143,904) | $ (189,552) | |
Accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | (130,188) | (168,250) | ||
Actuarial gain (loss) | (10,839) | 44,760 | ||
Prior service costs - GMP equalization | (12,056) | |||
Currency translation gain (loss) | (2,699) | 5,358 | ||
Balance at the end of the period | $ (143,726) | $ (130,188) | ||
Weighted average actuarial assumptions used to determine the benefit obligation | ||||
Discount rate | 2.05% | 2.90% | ||
CPI inflation | 2.15% | 2.20% | ||
RPI inflation | 3.05% | 3.30% | ||
Net Periodic Benefit Cost: | ||||
Interest cost | $ 16,923 | $ 17,878 | ||
Expected return on plan assets | (20,000) | (23,175) | ||
Amortization of prior service cost | 513 | 0 | ||
Amortization of actuarial loss | 2,051 | 3,046 | ||
Net periodic benefit expense (benefit) | $ (513) | $ (2,251) | ||
Weighted average actuarial assumptions used to determine expense | ||||
Discount rate | 2.90% | 2.90% | 2.55% | |
Expected return on plan assets | 4.25% | 4.25% | 4.29% | |
CPI Inflation | 2.20% | 2.20% | 2.20% | |
RPI Inflation | 3.30% | 3.30% | 3.30% | |
Limit on employer contributions per annum | $ 17,132 | £ 13,100 | ||
Administrative costs of the Plan | 1,700 | £ 1,300 | ||
Expected pension benefit payments | ||||
2020 | 21,840 | |||
2021 | 22,494 | |||
2022 | 23,148 | |||
2023 | 23,802 | |||
2024 | 24,587 | |||
Years 2024 - 2029 | $ 134,442 | |||
Weighted average maturity period of corporate bond portfolio | 13 years | 13 years |
DEFINED BENEFIT RETIREMENT PL_4
DEFINED BENEFIT RETIREMENT PLAN (Details 2) £ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019USD ($) | Dec. 28, 2019GBP (£) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Limit on employer contributions per annum | $ 17,132 | £ 13,100 | ||
Administrative costs of the Plan | 1,700 | £ 1,300 | ||
Plan assets at fair value | 38,388 | $ 61,546 | ||
Plan assets at NAV | 566,008 | 441,990 | ||
Total plan assets | 604,396 | 503,536 | $ 593,749 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | $ 38,388 | 61,546 | ||
Mutual funds and diversified growth funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target allocation percentage | 50.00% | |||
Temporary cash investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | $ 38,388 | 61,040 | ||
Temporary cash investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 38,388 | 61,040 | ||
Corporate stock | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 0 | 506 | ||
Plan assets at NAV | 234,612 | 183,750 | ||
Corporate stock | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at fair value | 0 | 506 | ||
Leveraged inflation-linked gilt funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at NAV | 123,637 | 122,711 | ||
Corporate bonds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at NAV | 97,638 | 80,454 | ||
Secured income asset funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets at NAV | $ 110,121 | $ 55,075 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Lease renewal term | 5 years | |
Impairment of right-of-use asset | $ 12,063 | |
After tax adjustment to retained earnings | $ 8,444 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 15 years | |
Impact of ASU 842 adoption | ||
Lessee, Lease, Description [Line Items] | ||
After tax adjustment to retained earnings | $ 442 |
LEASES Lease Cost (Details)
LEASES Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 24,073 |
Operating cash outflows from operating leases | 24,835 |
ROU assets obtained in exchange for lease obligations | $ 13,474 |
Weighted average remaining lease term | 10 years |
Weighted average discount rate | 3.80% |
Short-term lease cost | $ 2,500 |
Variable lease payments | $ 2,000 |
LEASES Supplemental Balance She
LEASES Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Lessee, Lease, Description [Line Items] | ||
Operating lease long-term liabilities | $ 85,817 | $ 0 |
Total lease liabilities | 101,043 | |
Other assets | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | 86,998 | |
Accrued expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease short-term liabilities | 15,226 | |
Operating lease liabilities | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease long-term liabilities | $ 85,817 |
LEASES Minimum Lease Payments (
LEASES Minimum Lease Payments (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 18,744 |
2021 | 15,504 |
2022 | 12,706 |
2023 | 9,731 |
2024 | 8,453 |
Subsequent | 58,015 |
Total minimum lease payments | 123,153 |
Less: Interest | 22,110 |
Present value of minimum lease payments | $ 101,043 |
LEASES - Future Minimum Operati
LEASES - Future Minimum Operating Lease Payments under ASC 840 (Details) $ in Thousands | Dec. 29, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 18,757 |
2020 | 16,830 |
2021 | 13,992 |
2022 | 11,932 |
2023 | 8,866 |
Subsequent | 76,438 |
Total minimum lease payments | $ 146,815 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Dec. 29, 2018USD ($) | Sep. 29, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 28, 2019USD ($)segment | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Business Segments | |||||||||||
Number of reportable segments | segment | 4 | ||||||||||
Maximum percentage of sales of other businesses and activities to consolidated sales as basis for aggregation | 10.00% | ||||||||||
Net sales | $ 683,626 | $ 690,340 | $ 700,871 | $ 692,139 | $ 697,363 | $ 678,692 | $ 682,405 | $ 698,684 | $ 2,766,976 | $ 2,757,144 | $ 2,745,967 |
Operating income | 237,720 | 202,280 | 267,080 | ||||||||
Interest expense, net | (36,211) | (39,569) | (39,908) | ||||||||
Costs associated with refinancing of debt | 0 | (14,820) | 0 | ||||||||
Loss from divestiture of grinding media business | 0 | (6,084) | 0 | ||||||||
Other | 8,164 | 1,634 | 1,292 | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 209,673 | 143,441 | 228,464 | ||||||||
Total assets | 2,763,411 | 2,530,274 | 2,763,411 | 2,530,274 | 2,602,250 | ||||||
Capital expenditures | 97,425 | 71,985 | 55,266 | ||||||||
Depreciation and amortization | 82,264 | 82,827 | 84,957 | ||||||||
Engineered Support Structures | |||||||||||
Business Segments | |||||||||||
Net sales | 1,002,076 | 967,358 | 912,240 | ||||||||
Operating income | 65,627 | 34,776 | 62,960 | ||||||||
Total assets | 943,841 | 867,735 | 943,841 | 867,735 | 846,881 | ||||||
Capital expenditures | 25,344 | 26,783 | 16,433 | ||||||||
Depreciation and amortization | 26,280 | 27,274 | 27,637 | ||||||||
Utility Support Structures | |||||||||||
Business Segments | |||||||||||
Net sales | 885,608 | 855,206 | 856,244 | ||||||||
Operating income | 87,788 | 64,766 | 97,853 | ||||||||
Total assets | 742,194 | 700,915 | 742,194 | 700,915 | 597,231 | ||||||
Capital expenditures | 26,306 | 17,442 | 14,012 | ||||||||
Depreciation and amortization | 23,779 | 23,618 | 25,079 | ||||||||
Coatings | |||||||||||
Business Segments | |||||||||||
Net sales | 300,640 | 286,739 | 256,811 | ||||||||
Operating income | 51,008 | 55,325 | 50,179 | ||||||||
Total assets | 363,070 | 294,951 | 363,070 | 294,951 | 288,890 | ||||||
Capital expenditures | 23,610 | 10,320 | 11,080 | ||||||||
Depreciation and amortization | 15,907 | 15,956 | 15,115 | ||||||||
Irrigation | |||||||||||
Business Segments | |||||||||||
Net sales | 578,652 | 624,761 | 644,372 | ||||||||
Operating income | 71,687 | 97,722 | 101,498 | ||||||||
Total assets | 347,887 | 347,894 | 347,887 | 347,894 | 369,798 | ||||||
Capital expenditures | 15,644 | 7,249 | 7,055 | ||||||||
Depreciation and amortization | 10,943 | 11,335 | 11,173 | ||||||||
Other | |||||||||||
Business Segments | |||||||||||
Operating income | 0 | (913) | 2,134 | ||||||||
Total assets | 0 | 0 | 0 | 0 | 68,934 | ||||||
Capital expenditures | 0 | 7 | 2,376 | ||||||||
Depreciation and amortization | 0 | 775 | 2,486 | ||||||||
Segment Reconciling Items | |||||||||||
Business Segments | |||||||||||
Net sales | 76,300 | ||||||||||
Operating income | (41,864) | ||||||||||
Total assets | $ 366,419 | $ 318,779 | 366,419 | 318,779 | 430,516 | ||||||
Capital expenditures | 6,521 | 10,184 | 4,310 | ||||||||
Depreciation and amortization | 5,355 | 3,869 | 3,467 | ||||||||
Operating segment | |||||||||||
Business Segments | |||||||||||
Sales | 2,855,901 | 2,856,150 | 2,844,838 | ||||||||
Operating segment | Engineered Support Structures | |||||||||||
Business Segments | |||||||||||
Sales | 1,012,290 | 986,880 | 938,102 | ||||||||
Operating segment | Engineered Support Structures | Lighting, Traffic, and Highway Safety Products | |||||||||||
Business Segments | |||||||||||
Sales | 708,853 | 706,582 | 633,178 | ||||||||
Operating segment | Engineered Support Structures | Communication Products | |||||||||||
Business Segments | |||||||||||
Sales | 188,912 | 149,817 | 171,718 | ||||||||
Operating segment | Engineered Support Structures | Access Systems | |||||||||||
Business Segments | |||||||||||
Sales | 114,525 | 130,481 | 133,206 | ||||||||
Operating segment | Utility Support Structures | |||||||||||
Business Segments | |||||||||||
Sales | 890,580 | 859,173 | 859,115 | ||||||||
Operating segment | Utility Support Structures | Steel | |||||||||||
Business Segments | |||||||||||
Sales | 630,892 | 637,979 | 658,604 | ||||||||
Operating segment | Utility Support Structures | Concrete | |||||||||||
Business Segments | |||||||||||
Sales | 122,032 | 111,875 | 99,738 | ||||||||
Operating segment | Utility Support Structures | Engineered Solar Tracker Solutions | |||||||||||
Business Segments | |||||||||||
Sales | 47,450 | 16,760 | 0 | ||||||||
Operating segment | Utility Support Structures | Offshore and Other Complex Steel Structures | |||||||||||
Business Segments | |||||||||||
Sales | 90,206 | 92,559 | 100,773 | ||||||||
Operating segment | Coatings | |||||||||||
Business Segments | |||||||||||
Sales | 367,835 | 353,351 | 318,891 | ||||||||
Operating segment | Irrigation | |||||||||||
Business Segments | |||||||||||
Sales | 585,196 | 633,666 | 652,430 | ||||||||
Operating segment | Irrigation | North America | |||||||||||
Business Segments | |||||||||||
Sales | 378,613 | 386,683 | 369,832 | ||||||||
Operating segment | Irrigation | International | |||||||||||
Business Segments | |||||||||||
Sales | 206,583 | 246,983 | 282,598 | ||||||||
Segment Reconciling Items | |||||||||||
Business Segments | |||||||||||
Operating income | (48,205) | (39,504) | |||||||||
Segment Reconciling Items | Other | |||||||||||
Business Segments | |||||||||||
Sales | 0 | 23,080 | 76,300 | ||||||||
Net sales | 0 | 23,080 | |||||||||
Intersegment | |||||||||||
Business Segments | |||||||||||
Sales | 88,925 | 99,006 | 98,871 | ||||||||
Intersegment | Engineered Support Structures | |||||||||||
Business Segments | |||||||||||
Sales | 10,214 | 19,522 | 25,862 | ||||||||
Intersegment | Utility Support Structures | |||||||||||
Business Segments | |||||||||||
Sales | 4,972 | 3,967 | 2,871 | ||||||||
Intersegment | Coatings | |||||||||||
Business Segments | |||||||||||
Sales | 67,195 | 66,612 | 62,080 | ||||||||
Intersegment | Irrigation | |||||||||||
Business Segments | |||||||||||
Sales | 6,544 | 8,905 | 8,058 | ||||||||
Inventory Valuation and Obsolescence | LIFO Adjustment | |||||||||||
Business Segments | |||||||||||
Operating income | $ 9,815 | $ (9,892) | $ (5,680) |
BUSINESS SEGMENTS (Details 2)
BUSINESS SEGMENTS (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Summary by Geographical Area by Location | |||||||||||
Net sales | $ 683,626 | $ 690,340 | $ 700,871 | $ 692,139 | $ 697,363 | $ 678,692 | $ 682,405 | $ 698,684 | $ 2,766,976 | $ 2,757,144 | $ 2,745,967 |
Long-lived assets | 1,374,992 | 1,189,634 | 1,374,992 | 1,189,634 | 1,129,685 | ||||||
United States | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Net sales | 1,872,840 | 1,771,390 | 1,702,826 | ||||||||
Long-lived assets | 753,545 | 624,143 | 753,545 | 624,143 | 544,724 | ||||||
Australia | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Net sales | 255,271 | 325,553 | 356,959 | ||||||||
Long-lived assets | $ 193,029 | 168,438 | $ 193,029 | 168,438 | 227,483 | ||||||
Australia | Foreign country | Net Sales | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Threshold for disclosure as percentage of net sales by customer | 9.00% | 9.00% | |||||||||
Denmark | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Net sales | $ 90,206 | 92,559 | 100,773 | ||||||||
Long-lived assets | $ 58,435 | 64,497 | 58,435 | 64,497 | 90,372 | ||||||
Other | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Net sales | 548,659 | 567,642 | 585,409 | ||||||||
Long-lived assets | $ 369,983 | $ 332,556 | $ 369,983 | $ 332,556 | $ 267,106 |
GUARANTOR_NON-GUARANTOR FINAN_3
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | |||||||||||
Parent company's percentage ownership of Guarantors | 100.00% | 100.00% | |||||||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||||||||||
Net sales | $ 683,626 | $ 690,340 | $ 700,871 | $ 692,139 | $ 697,363 | $ 678,692 | $ 682,405 | $ 698,684 | $ 2,766,976 | $ 2,757,144 | $ 2,745,967 |
Cost of sales | 2,074,480 | 2,098,864 | 2,064,199 | ||||||||
Gross profit | 170,867 | 176,086 | 180,414 | 165,129 | 149,701 | 164,340 | 174,999 | 169,240 | 692,496 | 658,280 | 681,768 |
Selling, general and administrative expenses | 454,776 | 456,000 | 414,688 | ||||||||
Operating income | 237,720 | 202,280 | 267,080 | ||||||||
Other income (expense): | |||||||||||
Interest expense | (40,153) | (44,237) | (44,645) | ||||||||
Interest income | 3,942 | 4,668 | 4,737 | ||||||||
Other | 8,164 | (19,270) | 1,292 | ||||||||
Total other income (expenses) | (28,047) | (58,839) | (38,616) | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 209,673 | 143,441 | 228,464 | ||||||||
Income tax expense (benefit): | |||||||||||
Current | 46,267 | 44,794 | 66,390 | ||||||||
Deferred income taxes | 3,940 | (1,659) | 39,755 | ||||||||
Total income tax expense (benefit) | 50,207 | 43,135 | 106,145 | ||||||||
Earnings before equity in earnings of nonconsolidated subsidiaries | 159,466 | 100,306 | 122,319 | ||||||||
Equity in earnings in nonconsolidated subsidiaries | 0 | 0 | 0 | ||||||||
Net earnings | 159,466 | 100,306 | 122,319 | ||||||||
Less: Earnings attributable to noncontrolling interests | (5,697) | (5,955) | (6,079) | ||||||||
Net earnings attributable to Valmont Industries, Inc. | $ 35,747 | $ 40,144 | $ 41,397 | $ 36,481 | $ 17,662 | $ 4,448 | $ 32,960 | $ 39,281 | 153,769 | 94,351 | 116,240 |
Eliminations | |||||||||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||||||||||
Net sales | (247,636) | (260,679) | (251,876) | ||||||||
Cost of sales | (247,281) | (262,448) | (252,182) | ||||||||
Gross profit | (355) | 1,769 | 306 | ||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||
Operating income | (355) | 1,769 | 306 | ||||||||
Other income (expense): | |||||||||||
Interest expense | 11,230 | 14,815 | 13,866 | ||||||||
Interest income | (11,230) | (14,815) | (13,866) | ||||||||
Other | 0 | 0 | 0 | ||||||||
Total other income (expenses) | 0 | 0 | 0 | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | (355) | 1,769 | 306 | ||||||||
Income tax expense (benefit): | |||||||||||
Current | 2 | 246 | 135 | ||||||||
Deferred income taxes | 0 | 0 | 0 | ||||||||
Total income tax expense (benefit) | 2 | 246 | 135 | ||||||||
Earnings before equity in earnings of nonconsolidated subsidiaries | (357) | 1,523 | 171 | ||||||||
Equity in earnings in nonconsolidated subsidiaries | (112,082) | (105,687) | (106,023) | ||||||||
Net earnings | (112,439) | (104,164) | (105,852) | ||||||||
Less: Earnings attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net earnings attributable to Valmont Industries, Inc. | (112,439) | (104,164) | (105,852) | ||||||||
Parent | |||||||||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||||||||||
Net sales | 1,207,865 | 1,192,134 | 1,200,181 | ||||||||
Cost of sales | 887,403 | 906,646 | 898,799 | ||||||||
Gross profit | 320,462 | 285,488 | 301,382 | ||||||||
Selling, general and administrative expenses | 236,574 | 192,343 | 192,182 | ||||||||
Operating income | 83,888 | 93,145 | 109,200 | ||||||||
Other income (expense): | |||||||||||
Interest expense | (37,984) | (42,524) | (43,642) | ||||||||
Interest income | 1,676 | 791 | 838 | ||||||||
Other | 7,805 | (17,602) | 5,681 | ||||||||
Total other income (expenses) | (28,503) | (59,335) | (37,123) | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 55,385 | 33,810 | 72,077 | ||||||||
Income tax expense (benefit): | |||||||||||
Current | 8,918 | 6,310 | 29,407 | ||||||||
Deferred income taxes | (3,120) | 1,532 | 10,307 | ||||||||
Total income tax expense (benefit) | 5,798 | 7,842 | 39,714 | ||||||||
Earnings before equity in earnings of nonconsolidated subsidiaries | 49,587 | 25,968 | 32,363 | ||||||||
Equity in earnings in nonconsolidated subsidiaries | 104,182 | 68,383 | 83,877 | ||||||||
Net earnings | 153,769 | 94,351 | 116,240 | ||||||||
Less: Earnings attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net earnings attributable to Valmont Industries, Inc. | 153,769 | 94,351 | 116,240 | ||||||||
Guarantors | |||||||||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||||||||||
Net sales | 563,935 | 522,366 | 485,448 | ||||||||
Cost of sales | 420,287 | 399,451 | 375,383 | ||||||||
Gross profit | 143,648 | 122,915 | 110,065 | ||||||||
Selling, general and administrative expenses | 38,732 | 51,127 | 47,955 | ||||||||
Operating income | 104,916 | 71,788 | 62,110 | ||||||||
Other income (expense): | |||||||||||
Interest expense | (11,150) | (14,815) | (13,866) | ||||||||
Interest income | 37 | 82 | 42 | ||||||||
Other | 44 | 59 | 58 | ||||||||
Total other income (expenses) | (11,069) | (14,674) | (13,766) | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 93,847 | 57,114 | 48,344 | ||||||||
Income tax expense (benefit): | |||||||||||
Current | 26,166 | 14,948 | 17,928 | ||||||||
Deferred income taxes | 0 | 1,791 | 0 | ||||||||
Total income tax expense (benefit) | 26,166 | 16,739 | 17,928 | ||||||||
Earnings before equity in earnings of nonconsolidated subsidiaries | 67,681 | 40,375 | 30,416 | ||||||||
Equity in earnings in nonconsolidated subsidiaries | 7,900 | 37,304 | 22,146 | ||||||||
Net earnings | 75,581 | 77,679 | 52,562 | ||||||||
Less: Earnings attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net earnings attributable to Valmont Industries, Inc. | 75,581 | 77,679 | 52,562 | ||||||||
Non- Guarantors | |||||||||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||||||||||
Net sales | 1,242,812 | 1,303,323 | 1,312,214 | ||||||||
Cost of sales | 1,014,071 | 1,055,215 | 1,042,199 | ||||||||
Gross profit | 228,741 | 248,108 | 270,015 | ||||||||
Selling, general and administrative expenses | 179,470 | 212,530 | 174,551 | ||||||||
Operating income | 49,271 | 35,578 | 95,464 | ||||||||
Other income (expense): | |||||||||||
Interest expense | (2,249) | (1,713) | (1,003) | ||||||||
Interest income | 13,459 | 18,610 | 17,723 | ||||||||
Other | 315 | (1,727) | (4,447) | ||||||||
Total other income (expenses) | 11,525 | 15,170 | 12,273 | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 60,796 | 50,748 | 107,737 | ||||||||
Income tax expense (benefit): | |||||||||||
Current | 11,181 | 23,290 | 18,920 | ||||||||
Deferred income taxes | 7,060 | (4,982) | 29,448 | ||||||||
Total income tax expense (benefit) | 18,241 | 18,308 | 48,368 | ||||||||
Earnings before equity in earnings of nonconsolidated subsidiaries | 42,555 | 32,440 | 59,369 | ||||||||
Equity in earnings in nonconsolidated subsidiaries | 0 | 0 | 0 | ||||||||
Net earnings | 42,555 | 32,440 | 59,369 | ||||||||
Less: Earnings attributable to noncontrolling interests | (5,697) | (5,955) | (6,079) | ||||||||
Net earnings attributable to Valmont Industries, Inc. | $ 36,858 | $ 26,485 | $ 53,290 |
GUARANTOR_NON-GUARANTOR FINAN_4
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | $ 159,466 | $ 100,306 | $ 122,319 |
Foreign currency translation adjustments: | |||
Unrealized translation gains (losses) | (2,506) | (65,436) | 79,279 |
Realized loss on divestiture of grinding media business recorded in other expense | 0 | 9,203 | 0 |
Gain (loss) on hedging activities | 2,905 | 4,814 | (1,621) |
Unrealized gain/(loss) on cash flow hedge: | |||
Actuarial gain (loss) in defined benefit pension plan liability | (10,828) | 29,885 | (10,871) |
Equity in other comprehensive income | 0 | 0 | 0 |
Other comprehensive income (loss) | (10,429) | (21,534) | 66,787 |
Comprehensive income (loss) | 149,037 | 78,772 | 189,106 |
Comprehensive income attributable to noncontrolling interests | (5,505) | (8,584) | (5,529) |
Comprehensive income (loss) attributable to Valmont Industries, Inc. | 143,532 | 70,188 | 183,577 |
Eliminations | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | (112,439) | (104,164) | (105,852) |
Foreign currency translation adjustments: | |||
Unrealized translation gains (losses) | 0 | 0 | 0 |
Realized loss on divestiture of grinding media business recorded in other expense | 0 | 0 | |
Gain (loss) on hedging activities | 0 | 0 | 0 |
Unrealized gain/(loss) on cash flow hedge: | |||
Actuarial gain (loss) in defined benefit pension plan liability | 0 | 0 | 0 |
Equity in other comprehensive income | 13,142 | 28,977 | (68,958) |
Other comprehensive income (loss) | 13,142 | 28,977 | (68,958) |
Comprehensive income (loss) | (99,297) | (75,187) | (174,810) |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Valmont Industries, Inc. | (99,297) | (75,187) | (174,810) |
Parent | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | 153,769 | 94,351 | 116,240 |
Foreign currency translation adjustments: | |||
Unrealized translation gains (losses) | 0 | 0 | 0 |
Realized loss on divestiture of grinding media business recorded in other expense | 0 | 0 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 2,905 | ||
Gain (loss) on hedging activities | 4,814 | (1,621) | |
Unrealized gain/(loss) on cash flow hedge: | |||
Actuarial gain (loss) in defined benefit pension plan liability | 0 | 0 | 0 |
Equity in other comprehensive income | (13,142) | (28,977) | 68,958 |
Other comprehensive income (loss) | (10,237) | (24,163) | 67,337 |
Comprehensive income (loss) | 143,532 | 70,188 | 183,577 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Valmont Industries, Inc. | 143,532 | 70,188 | 183,577 |
Guarantors | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | 75,581 | 77,679 | 52,562 |
Foreign currency translation adjustments: | |||
Unrealized translation gains (losses) | (1,564) | (6,509) | 138,795 |
Realized loss on divestiture of grinding media business recorded in other expense | 0 | 0 | |
Gain (loss) on hedging activities | 0 | 0 | 0 |
Unrealized gain/(loss) on cash flow hedge: | |||
Actuarial gain (loss) in defined benefit pension plan liability | 0 | 0 | 0 |
Equity in other comprehensive income | 0 | 0 | 0 |
Other comprehensive income (loss) | (1,564) | (6,509) | 138,795 |
Comprehensive income (loss) | 74,017 | 71,170 | 191,357 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 |
Comprehensive income (loss) attributable to Valmont Industries, Inc. | 74,017 | 71,170 | 191,357 |
Non- Guarantors | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | 42,555 | 32,440 | 59,369 |
Foreign currency translation adjustments: | |||
Unrealized translation gains (losses) | (942) | (58,927) | (59,516) |
Realized loss on divestiture of grinding media business recorded in other expense | 0 | 9,203 | |
Gain (loss) on hedging activities | 0 | 0 | 0 |
Unrealized gain/(loss) on cash flow hedge: | |||
Actuarial gain (loss) in defined benefit pension plan liability | (10,828) | 29,885 | (10,871) |
Equity in other comprehensive income | 0 | 0 | 0 |
Other comprehensive income (loss) | (11,770) | (19,839) | (70,387) |
Comprehensive income (loss) | 30,785 | 12,601 | (11,018) |
Comprehensive income attributable to noncontrolling interests | (5,505) | (8,584) | (5,529) |
Comprehensive income (loss) attributable to Valmont Industries, Inc. | $ 25,280 | $ 4,017 | $ (16,547) |
GUARANTOR_NON-GUARANTOR FINAN_5
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Details 3) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 353,542 | $ 313,210 | ||
Receivables, less allowance of $9,548 in 2019 and $8,277 in 2018 | 480,000 | 483,963 | ||
Inventories | 374,565 | 383,566 | ||
Contract with Customer, Asset, Net, Current | 141,322 | 112,525 | ||
Prepaid expenses, restricted cash, and other assets | 32,043 | 42,800 | ||
Refundable income taxes | 6,947 | 4,576 | ||
Total current assets | 1,388,419 | 1,340,640 | ||
Property, plant and equipment, at cost | 1,245,261 | 1,160,865 | ||
Less accumulated depreciation and amortization | 687,132 | 646,873 | ||
Net property, plant and equipment | 558,129 | 513,992 | ||
Goodwill | 428,864 | 385,207 | $ 337,720 | |
Other intangible assets | 175,742 | 175,956 | ||
Investment in subsidiaries and intercompany accounts | 0 | 0 | ||
Other assets | 212,257 | 114,479 | ||
Total assets | 2,763,411 | 2,530,274 | 2,602,250 | |
Current liabilities: | ||||
Current installments of long-term debt | 760 | 779 | ||
Notes payable to banks | 21,774 | 10,678 | ||
Accounts payable | 197,957 | 218,115 | ||
Accrued employee compensation and benefits | 83,528 | 79,291 | ||
Accrued expenses | 201,681 | 91,942 | ||
Dividends payable | 8,079 | 8,230 | ||
Total current liabilities | 513,779 | 409,035 | ||
Deferred income taxes | 47,955 | 43,489 | ||
Long-term debt, excluding current installments | 764,944 | 741,822 | ||
Defined benefit pension liability | 140,007 | 143,904 | ||
Other noncurrent liabilities | 139,835 | 56,501 | ||
Shareholders’ equity: | ||||
Common stock of $1 par value | 27,900 | 27,900 | ||
Additional paid-in capital | 0 | 0 | ||
Retained earnings | 2,140,948 | 2,027,596 | ||
Accumulated other comprehensive income (loss) | (313,422) | (303,185) | ||
Cost of treasury stock, common shares of 6,356,103 in 2019 and 5,951,971 in 2018 | (743,942) | (692,549) | ||
Total Valmont Industries, Inc. shareholders’ equity | 1,111,484 | 1,059,762 | ||
Noncontrolling interest in consolidated subsidiaries | 45,407 | 75,761 | ||
Total shareholders’ equity | 1,156,891 | 1,135,523 | $ 1,151,795 | $ 982,586 |
Total liabilities and shareholders’ equity | 2,763,411 | 2,530,274 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables, less allowance of $9,548 in 2019 and $8,277 in 2018 | 0 | 0 | ||
Inventories | (2,757) | (2,402) | ||
Contract with Customer, Asset, Net, Current | 0 | 0 | ||
Prepaid expenses, restricted cash, and other assets | 0 | 0 | ||
Refundable income taxes | 0 | 0 | ||
Total current assets | (2,757) | (2,402) | ||
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 | (3,397,876) | (3,381,139) | ||
Other assets | 0 | 0 | ||
Total assets | (3,400,633) | (3,383,541) | ||
Current liabilities: | ||||
Current installments of long-term debt | 0 | 0 | ||
Notes payable to banks | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued employee compensation and benefits | 0 | 0 | ||
Accrued expenses | 0 | 0 | ||
Dividends payable | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Long-term debt, excluding current installments | (123,560) | (166,729) | ||
Defined benefit pension liability | 0 | 0 | ||
Other noncurrent liabilities | 0 | 0 | ||
Shareholders’ equity: | ||||
Common stock of $1 par value | (1,106,907) | (1,106,632) | ||
Additional paid-in capital | (1,270,442) | (1,270,442) | ||
Retained earnings | (1,154,585) | (1,092,093) | ||
Accumulated other comprehensive income (loss) | 254,861 | 252,355 | ||
Cost of treasury stock, common shares of 6,356,103 in 2019 and 5,951,971 in 2018 | 0 | 0 | ||
Total Valmont Industries, Inc. shareholders’ equity | (3,277,073) | (3,216,812) | ||
Noncontrolling interest in consolidated subsidiaries | 0 | 0 | ||
Total shareholders’ equity | (3,277,073) | (3,216,812) | ||
Total liabilities and shareholders’ equity | (3,400,633) | (3,383,541) | ||
Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 182,453 | 104,256 | ||
Receivables, less allowance of $9,548 in 2019 and $8,277 in 2018 | 134,972 | 134,943 | ||
Inventories | 130,686 | 138,158 | ||
Contract with Customer, Asset, Net, Current | 65,528 | 50,271 | ||
Prepaid expenses, restricted cash, and other assets | 13,820 | 21,858 | ||
Refundable income taxes | 6,947 | 4,576 | ||
Total current assets | 534,406 | 454,062 | ||
Property, plant and equipment, at cost | 635,322 | 579,046 | ||
Less accumulated depreciation and amortization | 413,054 | 390,438 | ||
Net property, plant and equipment | 222,268 | 188,608 | ||
Goodwill | 20,108 | 20,108 | ||
Other intangible assets | 763 | 76 | ||
Investment in subsidiaries and intercompany accounts | 1,339,206 | 1,286,545 | ||
Other assets | 88,549 | 47,674 | ||
Total assets | 2,205,300 | 1,997,073 | ||
Current liabilities: | ||||
Current installments of long-term debt | 0 | 0 | ||
Notes payable to banks | 0 | 0 | ||
Accounts payable | 68,677 | 68,304 | ||
Accrued employee compensation and benefits | 45,294 | 41,418 | ||
Accrued expenses | 147,498 | 25,936 | ||
Dividends payable | 8,079 | 8,230 | ||
Total current liabilities | 269,548 | 143,888 | ||
Deferred income taxes | 16,925 | 14,376 | ||
Long-term debt, excluding current installments | 734,571 | 733,964 | ||
Defined benefit pension liability | 0 | 0 | ||
Other noncurrent liabilities | 72,772 | 45,083 | ||
Shareholders’ equity: | ||||
Common stock of $1 par value | 27,900 | 27,900 | ||
Additional paid-in capital | 0 | 0 | ||
Retained earnings | 2,140,948 | 2,027,596 | ||
Accumulated other comprehensive income (loss) | (313,422) | (303,185) | ||
Cost of treasury stock, common shares of 6,356,103 in 2019 and 5,951,971 in 2018 | (743,942) | (692,549) | ||
Total Valmont Industries, Inc. shareholders’ equity | 1,111,484 | 1,059,762 | ||
Noncontrolling interest in consolidated subsidiaries | 0 | 0 | ||
Total shareholders’ equity | 1,111,484 | 1,059,762 | ||
Total liabilities and shareholders’ equity | 2,205,300 | 1,997,073 | ||
Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 6,169 | 5,518 | ||
Receivables, less allowance of $9,548 in 2019 and $8,277 in 2018 | 94,090 | 75,204 | ||
Inventories | 45,673 | 37,019 | ||
Contract with Customer, Asset, Net, Current | 47,402 | 35,200 | ||
Prepaid expenses, restricted cash, and other assets | 717 | 746 | ||
Refundable income taxes | 0 | 0 | ||
Total current assets | 194,051 | 153,687 | ||
Property, plant and equipment, at cost | 175,862 | 172,050 | ||
Less accumulated depreciation and amortization | 90,384 | 93,374 | ||
Net property, plant and equipment | 85,478 | 78,676 | ||
Goodwill | 141,581 | 110,562 | ||
Other intangible assets | 43,933 | 27,452 | ||
Investment in subsidiaries and intercompany accounts | 1,150,458 | 1,161,612 | ||
Other assets | 4,323 | 0 | ||
Total assets | 1,619,824 | 1,531,989 | ||
Current liabilities: | ||||
Current installments of long-term debt | 0 | 0 | ||
Notes payable to banks | 0 | 0 | ||
Accounts payable | 21,464 | 21,081 | ||
Accrued employee compensation and benefits | 6,344 | 7,186 | ||
Accrued expenses | 11,353 | 10,132 | ||
Dividends payable | 0 | 0 | ||
Total current liabilities | 39,161 | 38,399 | ||
Deferred income taxes | 0 | 0 | ||
Long-term debt, excluding current installments | 123,560 | 166,729 | ||
Defined benefit pension liability | 0 | 0 | ||
Other noncurrent liabilities | 3,168 | 620 | ||
Shareholders’ equity: | ||||
Common stock of $1 par value | 457,950 | 457,950 | ||
Additional paid-in capital | 162,906 | 162,906 | ||
Retained earnings | 753,652 | 624,394 | ||
Accumulated other comprehensive income (loss) | 79,427 | 80,991 | ||
Cost of treasury stock, common shares of 6,356,103 in 2019 and 5,951,971 in 2018 | 0 | 0 | ||
Total Valmont Industries, Inc. shareholders’ equity | 1,453,935 | 1,326,241 | ||
Noncontrolling interest in consolidated subsidiaries | 0 | 0 | ||
Total shareholders’ equity | 1,453,935 | 1,326,241 | ||
Total liabilities and shareholders’ equity | 1,619,824 | 1,531,989 | ||
Non- Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 164,920 | 203,436 | ||
Receivables, less allowance of $9,548 in 2019 and $8,277 in 2018 | 250,938 | 273,816 | ||
Inventories | 200,963 | 210,791 | ||
Contract with Customer, Asset, Net, Current | 28,392 | 27,054 | ||
Prepaid expenses, restricted cash, and other assets | 17,506 | 20,196 | ||
Refundable income taxes | 0 | 0 | ||
Total current assets | 662,719 | 735,293 | ||
Property, plant and equipment, at cost | 434,077 | 409,769 | ||
Less accumulated depreciation and amortization | 183,694 | 163,061 | ||
Net property, plant and equipment | 250,383 | 246,708 | ||
Goodwill | 267,175 | 254,537 | ||
Other intangible assets | 131,046 | 148,428 | ||
Investment in subsidiaries and intercompany accounts | 908,212 | 932,982 | ||
Other assets | 119,385 | 66,805 | ||
Total assets | 2,338,920 | 2,384,753 | ||
Current liabilities: | ||||
Current installments of long-term debt | 760 | 779 | ||
Notes payable to banks | 21,774 | 10,678 | ||
Accounts payable | 107,816 | 128,730 | ||
Accrued employee compensation and benefits | 31,890 | 30,687 | ||
Accrued expenses | 42,830 | 55,874 | ||
Dividends payable | 0 | 0 | ||
Total current liabilities | 205,070 | 226,748 | ||
Deferred income taxes | 31,030 | 29,113 | ||
Long-term debt, excluding current installments | 30,373 | 7,858 | ||
Defined benefit pension liability | 140,007 | 143,904 | ||
Other noncurrent liabilities | 63,895 | 10,798 | ||
Shareholders’ equity: | ||||
Common stock of $1 par value | 648,957 | 648,682 | ||
Additional paid-in capital | 1,107,536 | 1,107,536 | ||
Retained earnings | 400,933 | 467,699 | ||
Accumulated other comprehensive income (loss) | (334,288) | (333,346) | ||
Cost of treasury stock, common shares of 6,356,103 in 2019 and 5,951,971 in 2018 | 0 | 0 | ||
Total Valmont Industries, Inc. shareholders’ equity | 1,823,138 | 1,890,571 | ||
Noncontrolling interest in consolidated subsidiaries | 45,407 | 75,761 | ||
Total shareholders’ equity | 1,868,545 | 1,966,332 | ||
Total liabilities and shareholders’ equity | $ 2,338,920 | $ 2,384,753 |
GUARANTOR_NON-GUARANTOR FINAN_6
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Details 4) - USD ($) $ in Thousands | 12 Months Ended | 68 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 28, 2019 | |
Cash flows from operating activities: | ||||
Net earnings | $ 159,466 | $ 100,306 | $ 122,319 | |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 82,264 | 82,827 | 84,957 | |
Noncash loss on trading securities | (172) | (62) | 237 | |
Contribution to defined benefit pension plan | (18,461) | (1,537) | (40,245) | |
Impairment of property, plant and equipment | 0 | 5,000 | 0 | |
Impairment of goodwill & intangible assets | 0 | 15,780 | 0 | |
Loss from divestiture of grinding media business | 0 | 6,084 | 0 | |
Stock-based compensation | 11,587 | 10,392 | 10,706 | |
Defined benefit pension plan expense (benefit) | (513) | (2,251) | 648 | |
(Gain) loss on sale of property, plant and equipment | (2,513) | (225) | (3,924) | |
Equity in earnings in nonconsolidated subsidiaries | 0 | 0 | 0 | |
Deferred income taxes | 3,940 | (1,659) | 39,755 | |
Changes in assets and liabilities (net of acquisitions): | ||||
Net working capital | 80,234 | (46,620) | (75,185) | |
Other noncurrent liabilities | (1,274) | (10,888) | (7,228) | |
Income taxes payable (refundable) | (6,944) | (4,139) | 1,108 | |
Net cash flows from operating activities | 307,614 | 153,008 | 133,148 | |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (97,425) | (71,985) | (55,266) | |
Proceeds from sale of assets | 5,556 | 63,103 | 8,185 | |
Acquisitions, net of cash acquired | (81,841) | (143,020) | (5,362) | |
Proceeds from settlement of net investment hedge | 11,184 | (1,621) | 5,123 | |
Investments in nonconsolidated subsidiaries | (6,169) | 0 | 0 | |
Other, net | 545 | (1,922) | (2,295) | |
Net cash flows used in investing activities | (168,150) | (155,445) | (49,615) | |
Cash flows from financing activities: | ||||
Borrowings (payments) under short-term agreements | 11,327 | 10,543 | (585) | |
Proceeds from long-term borrowings | 31,000 | 251,655 | 0 | |
Principal payments on long-term borrowings | (10,768) | (262,191) | (887) | |
Settlement of financial derivative | 2,467 | |||
Debt issuance costs | 0 | (2,322) | 0 | |
Dividends paid | (32,642) | (33,726) | (33,862) | |
Dividends to noncontrolling interest | (7,737) | (7,055) | (5,674) | |
Intercompany dividends | 0 | 0 | 0 | |
Purchase of noncontrolling interest | 0 | 0 | 0 | |
Intercompany interest on long-term note | 0 | |||
Purchase of noncontrolling interest | (27,845) | (5,510) | 0 | |
Proceeds from exercises under stock plans | 13,619 | 7,357 | 35,159 | |
Purchase of treasury shares | (62,915) | (114,805) | 0 | $ (795,549) |
Purchase of common treasury shares - stock plan exercises | (12,989) | (3,589) | (26,161) | |
Net cash flows used in financing activities | (98,950) | (162,110) | (32,010) | |
Effect of exchange rate changes on cash and cash equivalents | (182) | (15,048) | 27,682 | |
Net change in cash and cash equivalents | 40,332 | (179,595) | 79,205 | |
Cash, cash equivalents, and restricted cash—beginning of year | 313,210 | 492,805 | 413,600 | |
Cash, cash equivalents, and restricted cash—end of year | 353,542 | 313,210 | 492,805 | 353,542 |
Eliminations | ||||
Cash flows from operating activities: | ||||
Net earnings | (112,439) | (104,164) | (105,852) | |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 0 | 0 | 0 | |
Noncash loss on trading securities | 0 | 0 | 0 | |
Contribution to defined benefit pension plan | 0 | 0 | 0 | |
Impairment of property, plant and equipment | 0 | |||
Impairment of goodwill & intangible assets | 0 | |||
Loss from divestiture of grinding media business | 0 | |||
Stock-based compensation | 0 | 0 | 0 | |
Defined benefit pension plan expense (benefit) | 0 | 0 | 0 | |
(Gain) loss on sale of property, plant and equipment | 0 | 0 | 0 | |
Equity in earnings in nonconsolidated subsidiaries | 112,082 | 105,687 | 106,023 | |
Deferred income taxes | 0 | 0 | 0 | |
Changes in assets and liabilities (net of acquisitions): | ||||
Net working capital | 355 | (1,769) | (306) | |
Other noncurrent liabilities | 0 | 0 | 0 | |
Income taxes payable (refundable) | 0 | 0 | 0 | |
Net cash flows from operating activities | (2) | (246) | (135) | |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | 0 | 0 | 0 | |
Proceeds from sale of assets | 0 | 0 | 0 | |
Acquisitions, net of cash acquired | 0 | 0 | 0 | |
Proceeds from settlement of net investment hedge | 0 | 0 | 0 | |
Investments in nonconsolidated subsidiaries | 0 | |||
Other, net | 2 | 246 | 135 | |
Net cash flows used in investing activities | 2 | 246 | 135 | |
Cash flows from financing activities: | ||||
Borrowings (payments) under short-term agreements | 0 | 0 | 0 | |
Proceeds from long-term borrowings | 0 | 0 | ||
Principal payments on long-term borrowings | 0 | 0 | 0 | |
Settlement of financial derivative | 0 | |||
Debt issuance costs | 0 | |||
Dividends paid | 0 | 0 | 0 | |
Dividends to noncontrolling interest | 0 | 0 | 0 | |
Intercompany dividends | 0 | 0 | 0 | |
Purchase of noncontrolling interest | 0 | 0 | 0 | |
Intercompany interest on long-term note | 0 | |||
Purchase of noncontrolling interest | 0 | 0 | ||
Proceeds from exercises under stock plans | 0 | 0 | 0 | |
Purchase of treasury shares | 0 | 0 | ||
Purchase of common treasury shares - stock plan exercises | 0 | 0 | 0 | |
Net cash flows used in financing activities | 0 | 0 | 0 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | |
Net change in cash and cash equivalents | 0 | 0 | 0 | |
Cash, cash equivalents, and restricted cash—beginning of year | 0 | 0 | 0 | |
Cash, cash equivalents, and restricted cash—end of year | 0 | 0 | 0 | 0 |
Parent | ||||
Cash flows from operating activities: | ||||
Net earnings | 153,769 | 94,351 | 116,240 | |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 26,734 | 26,155 | 26,237 | |
Noncash loss on trading securities | 0 | 0 | 0 | |
Contribution to defined benefit pension plan | 0 | 0 | 0 | |
Impairment of property, plant and equipment | 0 | |||
Impairment of goodwill & intangible assets | 0 | |||
Loss from divestiture of grinding media business | 2,518 | |||
Stock-based compensation | 11,587 | 10,392 | 10,706 | |
Defined benefit pension plan expense (benefit) | 0 | 0 | 0 | |
(Gain) loss on sale of property, plant and equipment | 133 | 57 | (664) | |
Equity in earnings in nonconsolidated subsidiaries | (104,182) | (68,383) | (83,877) | |
Deferred income taxes | (3,120) | 1,532 | 10,307 | |
Changes in assets and liabilities (net of acquisitions): | ||||
Net working capital | 103,019 | (17,681) | (23,943) | |
Other noncurrent liabilities | (505) | (7,345) | (140) | |
Income taxes payable (refundable) | 1,714 | (6,176) | (11,837) | |
Net cash flows from operating activities | 189,149 | 35,420 | 43,029 | |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (59,394) | (25,255) | (20,460) | |
Proceeds from sale of assets | 87 | 44 | 748 | |
Acquisitions, net of cash acquired | 0 | (57,805) | 0 | |
Proceeds from settlement of net investment hedge | 11,184 | (1,621) | 5,123 | |
Investments in nonconsolidated subsidiaries | (3,500) | |||
Other, net | (14,964) | 69,714 | 684 | |
Net cash flows used in investing activities | (66,587) | (14,923) | (13,905) | |
Cash flows from financing activities: | ||||
Borrowings (payments) under short-term agreements | 0 | 0 | 0 | |
Proceeds from long-term borrowings | 31,000 | 245,936 | ||
Principal payments on long-term borrowings | (10,000) | (261,219) | 0 | |
Settlement of financial derivative | 2,467 | |||
Debt issuance costs | (2,322) | |||
Dividends paid | (32,642) | (33,726) | (33,862) | |
Dividends to noncontrolling interest | 0 | 0 | 0 | |
Intercompany dividends | 65,651 | 168,757 | 22,662 | |
Purchase of noncontrolling interest | (13,284) | (3,492) | (10,818) | |
Intercompany interest on long-term note | 0 | |||
Purchase of noncontrolling interest | (22,805) | 0 | ||
Proceeds from exercises under stock plans | 13,619 | 7,357 | 35,159 | |
Purchase of treasury shares | (62,915) | (114,805) | ||
Purchase of common treasury shares - stock plan exercises | (12,989) | (3,589) | (26,161) | |
Net cash flows used in financing activities | (44,365) | 430 | (13,020) | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | |
Net change in cash and cash equivalents | 78,197 | 20,927 | 16,104 | |
Cash, cash equivalents, and restricted cash—beginning of year | 104,256 | 83,329 | 67,225 | |
Cash, cash equivalents, and restricted cash—end of year | 182,453 | 104,256 | 83,329 | 182,453 |
Guarantors | ||||
Cash flows from operating activities: | ||||
Net earnings | 75,581 | 77,679 | 52,562 | |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 13,518 | 13,959 | 15,003 | |
Noncash loss on trading securities | 0 | 0 | 0 | |
Contribution to defined benefit pension plan | 0 | 0 | 0 | |
Impairment of property, plant and equipment | 0 | |||
Impairment of goodwill & intangible assets | 0 | |||
Loss from divestiture of grinding media business | 0 | |||
Stock-based compensation | 0 | 0 | 0 | |
Defined benefit pension plan expense (benefit) | 0 | 0 | 0 | |
(Gain) loss on sale of property, plant and equipment | 240 | (37) | 8 | |
Equity in earnings in nonconsolidated subsidiaries | (7,900) | (37,304) | (22,146) | |
Deferred income taxes | 0 | 1,791 | 0 | |
Changes in assets and liabilities (net of acquisitions): | ||||
Net working capital | (36,781) | (13,962) | (25,717) | |
Other noncurrent liabilities | (5) | 615 | 0 | |
Income taxes payable (refundable) | (2,012) | (1,303) | 728 | |
Net cash flows from operating activities | 42,641 | 41,438 | 20,438 | |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (1,592) | (13,115) | (9,454) | |
Proceeds from sale of assets | 48 | 268 | 3 | |
Acquisitions, net of cash acquired | (63,141) | 0 | 0 | |
Proceeds from settlement of net investment hedge | 0 | 0 | 0 | |
Investments in nonconsolidated subsidiaries | 0 | |||
Other, net | 14,210 | (42,667) | (22,777) | |
Net cash flows used in investing activities | (50,475) | (55,514) | (32,228) | |
Cash flows from financing activities: | ||||
Borrowings (payments) under short-term agreements | 0 | 0 | 0 | |
Proceeds from long-term borrowings | 0 | 0 | ||
Principal payments on long-term borrowings | 0 | 0 | 0 | |
Settlement of financial derivative | 0 | |||
Debt issuance costs | 0 | |||
Dividends paid | 0 | 0 | 0 | |
Dividends to noncontrolling interest | 0 | 0 | 0 | |
Intercompany dividends | 53,676 | 11,296 | 0 | |
Purchase of noncontrolling interest | 0 | 3,492 | 10,818 | |
Intercompany interest on long-term note | (45,155) | |||
Purchase of noncontrolling interest | 0 | 0 | ||
Proceeds from exercises under stock plans | 0 | 0 | 0 | |
Purchase of treasury shares | 0 | 0 | ||
Purchase of common treasury shares - stock plan exercises | 0 | 0 | 0 | |
Net cash flows used in financing activities | 8,521 | 14,788 | 10,818 | |
Effect of exchange rate changes on cash and cash equivalents | (36) | (498) | 205 | |
Net change in cash and cash equivalents | 651 | 214 | (767) | |
Cash, cash equivalents, and restricted cash—beginning of year | 5,518 | 5,304 | 6,071 | |
Cash, cash equivalents, and restricted cash—end of year | 6,169 | 5,518 | 5,304 | 6,169 |
Non- Guarantors | ||||
Cash flows from operating activities: | ||||
Net earnings | 42,555 | 32,440 | 59,369 | |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 42,012 | 42,713 | 43,717 | |
Noncash loss on trading securities | (172) | (62) | 237 | |
Contribution to defined benefit pension plan | (18,461) | (1,537) | (40,245) | |
Impairment of property, plant and equipment | 5,000 | |||
Impairment of goodwill & intangible assets | 15,780 | |||
Loss from divestiture of grinding media business | 3,566 | |||
Stock-based compensation | 0 | 0 | 0 | |
Defined benefit pension plan expense (benefit) | (513) | (2,251) | 648 | |
(Gain) loss on sale of property, plant and equipment | (2,886) | (245) | (3,268) | |
Equity in earnings in nonconsolidated subsidiaries | 0 | 0 | 0 | |
Deferred income taxes | 7,060 | (4,982) | 29,448 | |
Changes in assets and liabilities (net of acquisitions): | ||||
Net working capital | 13,641 | (13,208) | (25,219) | |
Other noncurrent liabilities | (764) | (4,158) | (7,088) | |
Income taxes payable (refundable) | (6,646) | 3,340 | 12,217 | |
Net cash flows from operating activities | 75,826 | 76,396 | 69,816 | |
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (36,439) | (33,615) | (25,352) | |
Proceeds from sale of assets | 5,421 | 62,791 | 7,434 | |
Acquisitions, net of cash acquired | (18,700) | (85,215) | (5,362) | |
Proceeds from settlement of net investment hedge | 0 | 0 | 0 | |
Investments in nonconsolidated subsidiaries | (2,669) | |||
Other, net | 1,297 | (29,215) | 19,663 | |
Net cash flows used in investing activities | (51,090) | (85,254) | (3,617) | |
Cash flows from financing activities: | ||||
Borrowings (payments) under short-term agreements | 11,327 | 10,543 | (585) | |
Proceeds from long-term borrowings | 0 | 5,719 | ||
Principal payments on long-term borrowings | (768) | (972) | (887) | |
Settlement of financial derivative | 0 | |||
Debt issuance costs | 0 | |||
Dividends paid | 0 | 0 | 0 | |
Dividends to noncontrolling interest | (7,737) | (7,055) | (5,674) | |
Intercompany dividends | (119,327) | (180,053) | (22,662) | |
Purchase of noncontrolling interest | 13,284 | 0 | 0 | |
Intercompany interest on long-term note | 45,155 | |||
Purchase of noncontrolling interest | (5,040) | (5,510) | ||
Proceeds from exercises under stock plans | 0 | 0 | 0 | |
Purchase of treasury shares | 0 | 0 | ||
Purchase of common treasury shares - stock plan exercises | 0 | 0 | 0 | |
Net cash flows used in financing activities | (63,106) | (177,328) | (29,808) | |
Effect of exchange rate changes on cash and cash equivalents | (146) | (14,550) | 27,477 | |
Net change in cash and cash equivalents | (38,516) | (200,736) | 63,868 | |
Cash, cash equivalents, and restricted cash—beginning of year | 203,436 | 404,172 | 340,304 | |
Cash, cash equivalents, and restricted cash—end of year | $ 164,920 | $ 203,436 | $ 404,172 | $ 164,920 |
QUARTERLY FINANCIAL DATA (Una_3
QUARTERLY FINANCIAL DATA (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 683,626 | $ 690,340 | $ 700,871 | $ 692,139 | $ 697,363 | $ 678,692 | $ 682,405 | $ 698,684 | $ 2,766,976 | $ 2,757,144 | $ 2,745,967 |
Gross profit | 170,867 | 176,086 | 180,414 | 165,129 | 149,701 | 164,340 | 174,999 | 169,240 | 692,496 | 658,280 | 681,768 |
Net earnings, amount | $ 35,747 | $ 40,144 | $ 41,397 | $ 36,481 | $ 17,662 | $ 4,448 | $ 32,960 | $ 39,281 | $ 153,769 | $ 94,351 | $ 116,240 |
Basic (in dollars per share) | $ 1.67 | $ 1.86 | $ 1.90 | $ 1.67 | $ 0.80 | $ 0.20 | $ 1.47 | $ 1.74 | $ 7.10 | $ 4.23 | $ 5.16 |
Diluted (in dollars per share) | 1.66 | 1.85 | 1.90 | 1.66 | 0.80 | 0.20 | 1.46 | 1.72 | 7.06 | 4.20 | $ 5.11 |
Stock Price, High (in dollars per share) | 151.46 | 146.46 | 136.75 | 139.50 | 141.38 | 157.15 | 154.60 | 171.55 | 151.46 | 171.55 | |
Stock Price, Low (in dollars per share) | 123.80 | 123.74 | 112.94 | 107.43 | 103.01 | 135 | 137.90 | 140.10 | 107.43 | 103.01 | |
Dividends Declared (in dollars per share) | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 0.375 | $ 1.50 | $ 1.50 | |
Impairment of goodwill and intangible assets | $ 14,736 | $ 0 | $ 15,780 | $ 0 | |||||||
Impairment of goodwill and intangible assets (in dollars per share) | $ 0.66 | ||||||||||
Refinancing of long-term debt expense | $ 11,115 | $ 11,115 | |||||||||
Refinancing of long-term debt (in dollars per share) | $ 0.50 | ||||||||||
Restructuring and related cost, expected cost remaining | $ 20,625 | $ 20,625 | |||||||||
Restructuring expenses (in dollars per share) | $ 0.92 |
Schedule II-Valuation and Qua_2
Schedule II-Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Movement in Valuation and Qualifying Accounts | |||
Balance at beginning of period | $ 8,277 | $ 9,813 | $ 18,991 |
Charged to profit and loss | 2,543 | 994 | 2,060 |
Currency Translation Adjustment | (76) | (365) | 510 |
Deductions from reserves | (1,196) | (2,165) | (11,748) |
Balance at close of period | 9,548 | 8,277 | 9,813 |
Allowance for deferred income tax asset valuation | |||
Movement in Valuation and Qualifying Accounts | |||
Balance at beginning of period | 33,228 | 27,864 | 81,923 |
Charged to profit and loss | 4,141 | 10,769 | 7,728 |
Currency Translation Adjustment | (296) | (384) | 5,762 |
Deductions from reserves | (1,858) | (5,021) | (67,549) |
Balance at close of period | $ 35,215 | $ 33,228 | $ 27,864 |
Uncategorized Items - a10-k1228
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 9,771,000 |
Accounting Standards Update 2014-09 [Member] | Noncontrolling Interest [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 9,771,000 |
Accounting Standards Update 2016-16 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,038,000 |
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 1,038,000 |
Accounting Standards Update 2016-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (8,886,000) |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (8,886,000) |