Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jul. 01, 2017 | Jul. 21, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | VALMONT INDUSTRIES INC | |
Entity Central Index Key | 102,729 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 1, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,590,934 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Income Statement [Abstract] | ||||
Product sales | $ 632,507 | $ 570,762 | $ 1,205,459 | $ 1,103,702 |
Services sales | 80,230 | 69,487 | 144,751 | 133,152 |
Net sales | 712,737 | 640,249 | 1,350,210 | 1,236,854 |
Product cost of sales | 477,174 | 418,072 | 904,021 | 811,564 |
Services cost of sales | 52,283 | 47,060 | 98,304 | 89,204 |
Total cost of sales | 529,457 | 465,132 | 1,002,325 | 900,768 |
Gross profit | 183,280 | 175,117 | 347,885 | 336,086 |
Selling, general and administrative expenses | 104,990 | 103,311 | 205,093 | 201,915 |
Operating income | 78,290 | 71,806 | 142,792 | 134,171 |
Other income (expenses): | ||||
Interest expense | (10,818) | (11,122) | (22,122) | (22,176) |
Interest income | 967 | 707 | 1,894 | 1,518 |
Other | (32) | 1,252 | 1,167 | (426) |
Total other income (expenses) | (9,883) | (9,163) | (19,061) | (21,084) |
Earnings before income taxes | 68,407 | 62,643 | 123,731 | 113,087 |
Income tax expense: | ||||
Current | 27,803 | 22,745 | 29,101 | 33,259 |
Deferred | (6,718) | (3,544) | 7,347 | 2,215 |
Total income tax expense (benefit) | 21,085 | 19,201 | 36,448 | 35,474 |
Earnings before equity in earnings of nonconsolidated subsidiaries | 47,322 | 43,442 | 87,283 | 77,613 |
Equity in earnings of nonconsolidated subsidiaries | 0 | 0 | 0 | 0 |
Net earnings | 47,322 | 43,442 | 87,283 | 77,613 |
Less: Earnings attributable to noncontrolling interests | (1,658) | (1,416) | (2,640) | (2,618) |
Net earnings attributable to Valmont Industries, Inc. | $ 45,664 | $ 42,026 | $ 84,643 | $ 74,995 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 2.03 | $ 1.86 | $ 3.76 | $ 3.31 |
Diluted (in dollars per share) | 2.01 | 1.85 | 3.73 | 3.29 |
Cash dividends declared per share (in dollars per share) | $ 0.375 | $ 0.375 | $ 0.75 | $ 0.75 |
Weighted average number of shares of common stock outstanding - Basic (in shares) | 22,517 | 22,602 | 22,494 | 22,651 |
Weighted average number of shares of common stock outstanding - Diluted (in shares) | 22,740 | 22,749 | 22,700 | 22,782 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 47,322 | $ 43,442 | $ 87,283 | $ 77,613 |
Foreign currency translation adjustments: | ||||
Unrealized translation gain (loss) | 21,551 | (2,296) | 40,941 | 217 |
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | (550) | 0 | (1,076) | 0 |
Gain/(loss) on hedging activities: | ||||
Amortization cost included in interest expense | 18 | 19 | 37 | 38 |
Other comprehensive income (loss) | 21,019 | (2,277) | 39,902 | 255 |
Comprehensive income | 68,341 | 41,165 | 127,185 | 77,868 |
Comprehensive loss (income) attributable to noncontrolling interests | (2,223) | (1,787) | (1,982) | (4,114) |
Comprehensive income attributable to Valmont Industries, Inc. | $ 66,118 | $ 39,378 | $ 125,203 | $ 73,754 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 448,222 | $ 399,948 |
Receivables, net | 496,962 | 439,342 |
Inventories | 382,648 | 350,028 |
Prepaid expenses, restricted cash, and other assets | 43,545 | 57,297 |
Refundable income taxes | 4,830 | 6,601 |
Total current assets | 1,376,207 | 1,253,216 |
Property, plant and equipment, at cost | 1,148,482 | 1,105,736 |
Less accumulated depreciation and amortization | 628,375 | 587,401 |
Net property, plant and equipment | 520,107 | 518,335 |
Goodwill | 329,708 | 321,110 |
Other intangible assets, net | 141,557 | 144,378 |
Other assets | 155,583 | 154,692 |
Total assets | 2,523,162 | 2,391,731 |
Current liabilities: | ||
Current installments of long-term debt | 921 | 851 |
Notes payable to banks | 376 | 746 |
Accounts payable | 193,087 | 177,488 |
Accrued employee compensation and benefits | 68,944 | 72,404 |
Accrued expenses | 102,247 | 89,914 |
Dividends payable | 8,472 | 8,445 |
Total current liabilities | 374,047 | 349,848 |
Deferred income taxes | 32,642 | 35,803 |
Long-term debt, excluding current installments | 754,436 | 754,795 |
Defined benefit pension liability | 194,517 | 209,470 |
Deferred compensation | 47,799 | 44,319 |
Other noncurrent liabilities | 17,275 | 14,910 |
Shareholders’ equity: | ||
Preferred stock of $1 par value - Authorized 500,000 shares; none issued | 0 | 0 |
Common stock of $1 par value - Authorized 75,000,000 shares; issued 27,900,000 issued | 27,900 | 27,900 |
Retained earnings | 1,945,874 | 1,874,722 |
Accumulated other comprehensive loss | (305,799) | (346,359) |
Treasury stock | (603,726) | (612,781) |
Total Valmont Industries, Inc. shareholders’ equity | 1,064,249 | 943,482 |
Noncontrolling interest in consolidated subsidiaries | 38,197 | 39,104 |
Total shareholders’ equity | 1,102,446 | 982,586 |
Total liabilities and shareholders’ equity | $ 2,523,162 | $ 2,391,731 |
CONDENSED CONSOLIDATED BALANCE5
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jul. 01, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized shares (in shares) | 500,000 | 500,000 |
Preferred stock, issued shares (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized shares (in shares) | 75,000,000 | 75,000,000 |
Common stock, issued shares (in shares) | 27,900,000 | 27,900,000 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2017 | Jun. 25, 2016 | |
Cash flows from operating activities: | ||
Net earnings | $ 87,283 | $ 77,613 |
Adjustments to reconcile net earnings to net cash flows from operations: | ||
Depreciation and amortization | 41,754 | 40,804 |
Noncash loss on trading securities | 188 | 1,035 |
Stock-based compensation | 4,590 | 4,201 |
Defined benefit pension plan expense | 314 | 959 |
Contribution to defined benefit pension plan | (25,379) | (712) |
Change in restricted cash - pension plan trust | 12,568 | (13,652) |
(Gain)/loss on sale of property, plant and equipment | (64) | 1,074 |
Equity in earnings in nonconsolidated subsidiaries | 0 | 0 |
Deferred income taxes | 7,347 | 2,215 |
Changes in assets and liabilities: | ||
Receivables | (49,416) | 2,942 |
Inventories | (24,963) | (29,335) |
Prepaid expenses and other assets | (5,892) | (4,859) |
Accounts payable | 10,715 | 1,430 |
Accrued expenses | 5,252 | (13,636) |
Other noncurrent liabilities | 1,973 | 327 |
Income taxes refundable | 2,028 | 9,516 |
Net cash flows from operating activities | 68,298 | 79,922 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (26,183) | (26,019) |
Proceeds from sale of assets | 890 | 1,827 |
Proceeds from settlement of net investment hedge | 5,123 | 0 |
Other, net | (2,467) | (1,608) |
Net cash flows from investing activities | (22,637) | (25,800) |
Cash flows from financing activities: | ||
Net borrowings under short-term agreements | (369) | 2,593 |
Principal payments on long-term borrowings | (434) | (659) |
Dividends paid | (16,913) | (17,098) |
Dividends to noncontrolling interest | (2,889) | (1,923) |
Purchase of noncontrolling interest | 0 | (11,009) |
Purchase of treasury shares | 0 | (28,621) |
Proceeds from exercises under stock plans | 10,168 | 5,975 |
Purchase of common treasury shares—stock plan exercises | (3,056) | (1,453) |
Net cash flows from financing activities | (13,493) | (52,195) |
Effect of exchange rate changes on cash and cash equivalents | 16,106 | (6,655) |
Net change in cash and cash equivalents | 48,274 | (4,728) |
Cash and cash equivalents—beginning of year | 399,948 | 349,074 |
Cash and cash equivalents—end of period | $ 448,222 | $ 344,346 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Noncontrolling interest in consolidated subsidiaries |
Beginning balance at Dec. 26, 2015 | $ 965,211 | $ 27,900 | $ 0 | $ 1,729,679 | $ (267,218) | $ (571,920) | $ 46,770 |
Increase (Decrease) in Shareholders' Equity | |||||||
Net earnings | 77,613 | 74,995 | 2,618 | ||||
Other comprehensive income (loss) | 255 | (1,241) | 1,496 | ||||
Cash dividends declared | (17,027) | (17,027) | 0 | ||||
Dividends to noncontrolling interests | (1,923) | (1,923) | |||||
Purchase of noncontrolling interests | (11,009) | (137) | (10,872) | ||||
Purchase of treasury shares | (28,621) | (28,621) | |||||
Stock plan exercises | (1,453) | (1,453) | |||||
Stock options exercised | 5,975 | (4,064) | 2,473 | 7,566 | |||
Stock option expense | 2,959 | 2,959 | |||||
Stock awards | 2,191 | 1,242 | 949 | ||||
Ending balance at Jun. 25, 2016 | 994,171 | 27,900 | 0 | 1,790,120 | (268,459) | (593,479) | 38,089 |
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 | 87,283 | 84,643 | 2,640 | ||||
Other comprehensive income (loss) | 39,902 | 40,560 | (658) | ||||
Cash dividends declared | (16,939) | (16,939) | 0 | ||||
Dividends to noncontrolling interests | (2,889) | (2,889) | |||||
Stock plan exercises | (3,056) | (3,056) | |||||
Stock options exercised | 10,168 | (4,590) | 3,448 | 11,310 | |||
Stock option expense | 2,578 | 2,578 | |||||
Stock awards | 2,813 | 2,012 | 801 | ||||
Ending balance at Jul. 01, 2017 | $ 1,102,446 | $ 27,900 | $ 0 | $ 1,945,874 | $ (305,799) | $ (603,726) | $ 38,197 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - shares | 6 Months Ended | |
Jul. 01, 2017 | Jun. 25, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Purchase of treasury shares, shares acquired (in shares) | 384,622 | 245,789 |
Stock plan exercises; shares acquired (in shares) | 19,086 | 10,747 |
Stock options exercised; shares issued (in shares) | 84,432 | 62,535 |
Stock awards; shares issued (in shares) | 5,677 | 6,976 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jul. 01, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Condensed Consolidated Financial Statements The Condensed Consolidated Balance Sheet as of July 1, 2017 , the Condensed Consolidated Statements of Earnings and Comprehensive Income for the thirteen and twenty-six weeks ended July 1, 2017 and June 25, 2016 , and the Condensed Consolidated Statements of Cash Flows and Shareholders' Equity for the twenty-six week periods then ended have been prepared by the Company, without audit. In the opinion of management, all necessary adjustments (which include normal recurring adjustments) have been made to present fairly the financial statements as of July 1, 2017 and for all periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These Condensed Consolidated Financial Statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 . The accounting policies and methods of computation followed in these interim financial statements are the same as those followed in the financial statements for the year ended December 31, 2016 . The results of operations for the period ended July 1, 2017 are not necessarily indicative of the operating results for the full year. Inventories Approximately 35% and 38% of inventory is valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market as of July 1, 2017 and December 31, 2016 . 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 $39,260 and $38,047 at July 1, 2017 and December 31, 2016 , respectively. Inventories consisted of the following: July 1, December 31, Raw materials and purchased parts $ 163,214 $ 143,659 Work-in-process 33,543 27,291 Finished goods and manufactured goods 225,151 217,125 Subtotal 421,908 388,075 Less: LIFO reserve 39,260 38,047 $ 382,648 $ 350,028 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Income Taxes Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries for the thirteen and twenty-six weeks ended July 1, 2017 and June 25, 2016 , were as follows: Thirteen Weeks Ended Twenty-six Weeks Ended 2017 2016 2017 2016 United States $ 50,773 $ 44,240 $ 86,197 $ 83,840 Foreign 17,634 18,403 37,534 29,247 $ 68,407 $ 62,643 $ 123,731 $ 113,087 Pension Benefits The Company incurs expenses in connection with the Delta Pension Plan ("DPP"). The DPP was acquired as part of the Delta plc acquisition in fiscal 2010 and has no members that are active employees. In order to measure expense and the related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as current facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits. The components of the net periodic pension (benefit) expense for the thirteen and twenty-six weeks ended July 1, 2017 and June 25, 2016 were as follows: Thirteen Weeks Ended Twenty-six Weeks Ended Net periodic (benefit) expense: 2017 2016 2017 2016 Interest cost $ 4,478 $ 6,659 $ 8,799 $ 13,042 Expected return on plan assets (5,054 ) (6,084 ) (9,931 ) (12,083 ) Amortization of actuarial loss 736 — 1,446 — Net periodic expense $ 160 $ 575 $ 314 $ 959 Stock Plans The Company maintains stock‑based compensation plans approved by the shareholders, which provide that the Human Resource Committee of the Board of Directors may grant incentive stock options, nonqualified stock options, stock appreciation rights, non-vested stock awards and bonuses of common stock. At July 1, 2017 , 700,078 shares of common stock remained available for issuance under the plans. Shares and options issued and available are subject to changes in capitalization. Under the plans, the exercise price of each option equals the closing market price at the date of the grant. Options vest beginning on the first anniversary of the grant in equal amounts over three to six years or on the fifth anniversary of the grant. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Expiration of grants is from seven to ten years from the date of grant. The Company's compensation expense (included in selling, general and administrative expenses) and associated income tax benefits related to stock options for the thirteen and twenty-six weeks ended July 1, 2017 and June 25, 2016 , respectively, were as follows: Thirteen Weeks Ended Twenty-six Weeks Ended 2017 2016 2017 2016 Compensation expense $ 1,289 $ 1,468 $ 2,578 $ 2,959 Income tax benefits 496 565 993 1,139 Fair Value The Company applies the provisions of Accounting Standards Codification 820, Fair Value Measurements (“ASC 820”) which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The provisions of ASC 820 apply to other accounting pronouncements that require or permit fair value measurements. As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three‑level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value. Trading Securities: The assets and liabilities recorded for the investments held in the Valmont Deferred Compensation Plan of $38,732 ( $35,784 at December 31, 2016) represent mutual funds, invested in debt and equity securities, classified as trading securities in accordance with Accounting Standards Codification 320, Accounting for Certain Investments in Debt and Equity Securities , considering the employee's ability to change investment allocation of their deferred compensation at any time. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The Company's ownership of shares in Delta EMD Pty. Ltd. (JSE:DTA) is also classified as trading securities. The shares are valued at $1,931 and $2,016 as of July 1, 2017 and December 31, 2016, respectively, which is the estimated fair value. Quoted market prices are available for these securities in an active market and therefore categorized as a Level 1 input. Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 40,663 $ 40,663 $ — $ — Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 37,800 $ 37,800 $ — $ — Comprehensive Income Comprehensive income includes net earnings, currency translation adjustments, certain derivative-related activity and changes in net actuarial gains/losses from a pension plan. Results of operations for foreign subsidiaries are translated using the average exchange rates during the period. Assets and liabilities are translated at the exchange rates in effect on the balance sheet dates. Accumulated other comprehensive income (loss) consisted of the following at July 1, 2017 and December 31, 2016: Foreign Currency Translation Adjustments Gain on Hedging Activities Defined Benefit Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2016 $ (251,228 ) $ 7,978 $ (103,109 ) $ (346,359 ) Current-period comprehensive income (loss) 41,599 (1,039 ) — 40,560 Balance at July 1, 2017 $ (209,629 ) $ 6,939 $ (103,109 ) $ (305,799 ) Net Investment Hedge In the second quarter of 2016, the Company entered into a one-year foreign currency forward contract which qualified as a net investment hedge, in order to mitigate foreign currency risk on a portion of our investments denominated in British pounds. The forward contract had a notional amount to sell British pounds and receive $44,000 , and matured in May 2017. The realized gain of $5,123 ( $3,150 after tax) has been deferred in other comprehensive income where it will remain until the Company's net investments in its British subsidiaries are divested. No ineffectiveness resulted from the hedge prior to its maturity. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-9, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification ("ASC") 605, Revenue Recognition . The new revenue recognition standard requires entities to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This standard is effective for interim and annual reporting periods beginning after December 15, 2017, and can be adopted either retrospectively or as a cumulative effect adjustment as of the date of adoption. Early adoption is permitted for interim and annual periods beginning after December 15, 2016. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated results of operations and financial position. One area under assessment is the timing of revenue recognition for the Company’s product lines that are custom engineered to a single customer’s specifications resulting in limited ability that the asset can be used for another customer. These product lines reside in the Utility and Engineered Support Structures segments. When the terms and conditions allow the Company to bill a customer for full compensation on a canceled order for the performance completed to date, revenue will be recognized over the production period and not the current practice which is upon shipment or time of delivery to the customer. The Company is also evaluating the necessary changes to its internal control processes to recognize revenue over time using an inputs based model after adoption. Based on the current status of the evaluation, the adoption of the standard is not expected to have a material effect on the amounts or timing of revenue recognition for the Company’s other segments. The Company expects to adopt the new standard using the modified retrospective approach effective January 1, 2018. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jul. 01, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Acquisitions of Noncontrolling Interests In April 2016, the Company acquired the remaining 30% of IGC Galvanizing Industries (M) Sdn Bhd that it did not own for $5,841 . In June 2016, the Company acquired 5.2% of the remaining 10% of Valmont SM that it did not own for $5,168 . As these transactions were for acquisitions of part or all of the remaining shares of consolidated subsidiaries with no change in control, they were recorded within shareholders' equity and as a financing cash flow in the Consolidated Statements of Cash Flows. |
RESTRUCTURING ACTIVITIES
RESTRUCTURING ACTIVITIES | 6 Months Ended |
Jul. 01, 2017 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING ACTIVITIES | RESTRUCTURING ACTIVITIES In April 2015, the Company's Board of Directors authorized a broad restructuring plan (the "2015 Plan") to respond to the market environment in certain businesses. During fiscal 2016, the Company incurred pre-tax restructuring charges of $4,581 as it completed the 2015 Plan. In 2016, the Company identified and executed further region specific restructuring activities (the "2016 Plan") and incurred $5,045 of pre-tax restructuring expenses in cost of sales and $2,780 of pre-tax restructuring expense in SG&A in 2016. Within the total $7,825 , were pre-tax asset impairments of $1,099 . The 2016 Plan was primarily completed by year-end 2016. A significant change in market conditions in any of the Company's segments may affect of the Company's assessment of necessity for further restructuring activities. Liabilities recorded for the restructuring plans and changes therein for the first half of fiscal 2017 were as follows: Balance at December 31, 2016 Recognized Restructuring Expense Costs Paid or Otherwise Settled Balance at July 1, 2017 Severance $ 1,597 $ — $ (1,597 ) $ — Other cash restructuring expenses 4,581 — (2,226 ) 2,355 Total $ 6,178 $ — $ (3,823 ) $ 2,355 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jul. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Amortized Intangible Assets The components of amortized intangible assets at July 1, 2017 and December 31, 2016 were as follows: July 1, 2017 Gross Accumulated Weighted Customer Relationships $ 196,201 $ 121,382 13 years Proprietary Software & Database 3,659 3,083 8 years Patents & Proprietary Technology 6,581 3,720 11 years Other 3,942 3,912 3 years $ 210,383 $ 132,097 (4) GOODWILL AND INTANGIBLE ASSETS (Continued) December 31, 2016 Gross Accumulated Weighted Customer Relationships $ 191,316 $ 111,342 13 years Proprietary Software & Database 3,616 3,056 8 years Patents & Proprietary Technology 6,434 3,420 11 years Other 3,713 3,668 3 years $ 205,079 $ 121,486 Amortization expense for intangible assets for the thirteen and twenty-six weeks ended July 1, 2017 and June 25, 2016 , respectively was as follows: Thirteen Weeks Ended Twenty-six Weeks Ended 2017 2016 2017 2016 3,903 4,078 7,767 8,073 Estimated annual amortization expense related to finite‑lived intangible assets is as follows: Estimated 2017 $ 15,498 2018 13,840 2019 13,079 2020 11,989 2021 9,903 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. (4) GOODWILL AND INTANGIBLE ASSETS (Continued) Non-amortized intangible assets Intangible assets with indefinite lives are not amortized. The carrying values of trade names at July 1, 2017 and December 31, 2016 were as follows: July 1, December 31, Year Acquired Webforge $ 9,101 $ 8,624 2010 Valmont SM 9,525 8,765 2014 Newmark 11,111 11,111 2004 Ingal EPS/Ingal Civil Products 7,420 7,032 2010 Donhad 5,598 5,305 2010 Shakespeare 4,000 4,000 2014 Industrial Galvanizers 2,323 2,201 2010 Other 14,193 13,747 $ 63,271 $ 60,785 In its determination of these intangible assets as indefinite‑lived, the Company considered such factors as its expected future use of the intangible asset, legal, regulatory, technological and competitive factors that may impact the useful life or value of the intangible asset and the expected costs to maintain the value of the intangible asset. The Company expects that these intangible assets will maintain their value indefinitely. Accordingly, these assets are not amortized. The Company’s trade names were tested for impairment in the third quarter of 2016. The values of each trade name was determined using the relief-from-royalty method. Based on this evaluation, no trade names were determined to be impaired as of the third quarter of 2016. Goodwill The carrying amount of goodwill by segment as of July 1, 2017 and December 31, 2016 was as follows: Engineered Energy & Mining Segment Utility Coatings Irrigation Total Balance at December 31, 2016 $ 94,314 $ 72,212 $ 75,404 $ 59,569 $ 19,611 $ 321,110 Foreign currency translation 2,885 4,628 — 483 602 8,598 Balance at July 1, 2017 $ 97,199 $ 76,840 $ 75,404 $ 60,052 $ 20,213 $ 329,708 The Company’s annual impairment test of goodwill was performed during the third quarter of 2016, using the discounted cash flow method. As a result of that testing, the Company determined that its goodwill was not impaired, as the valuation of the reporting units exceeded their respective carrying values. The Company's offshore and other complex steel structures reporting unit with $14,179 of goodwill, is the reporting unit with the least amount of cushion between its estimated fair value and its carrying value. In the impairment model, the Company is forecasting steady growth in sales between 2018 to 2020 of the other complex steel structures to offset the significant decline in sales from offshore oil and gas structures realized in fiscal 2016. Sales and profitability amounts for the first half of 2017 approximated the amounts in the 2016 annual impairment model. The Company continues to monitor the sales backlog of this reporting unit and changes in the global economy that could impact future operating results of any of its reporting units. |
CASH FLOW SUPPLEMENTARY INFORMA
CASH FLOW SUPPLEMENTARY INFORMATION | 6 Months Ended |
Jul. 01, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
CASH FLOW SUPPLEMENTARY INFORMATION | CASH FLOW SUPPLEMENTARY INFORMATION The Company considers all highly liquid temporary cash investments purchased with an original maturity of three months or less at the time of purchase to be cash equivalents. Cash payments for interest and income taxes (net of refunds) for the twenty-six weeks ended July 1, 2017 and June 25, 2016 were as follows: 2017 2016 Interest $ 22,113 $ 22,142 Income taxes 26,966 28,791 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jul. 01, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table provides a reconciliation between Basic and Diluted earnings per share (EPS): Basic EPS Dilutive Diluted EPS Thirteen weeks ended July 1, 2017: Net earnings attributable to Valmont Industries, Inc. $ 45,664 $ — $ 45,664 Shares outstanding (000 omitted) 22,517 223 22,740 Per share amount $ 2.03 $ (0.02 ) $ 2.01 Thirteen weeks ended June 25, 2016: Net earnings attributable to Valmont Industries, Inc. $ 42,026 $ — $ 42,026 Shares outstanding (000 omitted) 22,602 147 22,749 Per share amount $ 1.86 $ (0.01 ) $ 1.85 Twenty-six weeks ended July 1, 2017: Net earnings attributable to Valmont Industries, Inc. $ 84,643 $ — $ 84,643 Shares outstanding (000 omitted) 22,494 206 22,700 Per share amount $ 3.76 $ (0.03 ) $ 3.73 Twenty-six weeks ended June 25, 2016: Net earnings attributable to Valmont Industries, Inc. $ 74,995 $ — $ 74,995 Shares outstanding (000 omitted) 22,651 131 22,782 Per share amount $ 3.31 $ (0.02 ) $ 3.29 At July 1, 2017 and June 25, 2016, there were 84,712 and 381,973 outstanding stock options with exercise prices exceeding the market price of common stock that were excluded from the computation of diluted earnings per share, respectively. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended |
Jul. 01, 2017 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS The accounting principles used in the preparation of the segment information are the same as those used for the consolidated financial statements as disclosed in Note 1, except that the segment assets and income reflect the FIFO basis of accounting for inventory. Certain inventories are accounted for using the LIFO basis in the consolidated financial statements. In the first quarter of 2017, the Company changed its reportable segment operating income to separate out the LIFO expense (benefit). Prior year financial information has been updated to reflect this change. Reportable segments are as follows: ENGINEERED SUPPORT STRUCTURES: This segment consists of the manufacture of engineered metal structures and components for the global lighting and traffic, wireless communication, and roadway safety industries; ENERGY AND MINING: This segment, all outside of the United States, consists of the manufacture of access systems applications, forged steel grinding media, on and offshore oil, gas, and wind energy structures; UTILITY SUPPORT STRUCTURES: This segment consists of the manufacture of engineered steel and concrete structures for the global utility industry; COATINGS: This segment consists of galvanizing, anodizing and powder coating services on a global basis; and IRRIGATION: This segment consists of the manufacture of agricultural irrigation equipment and related parts and services for the global agricultural industry and tubular products for industrial customers. 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. (7) BUSINESS SEGMENTS (Continued) Summary by Business Thirteen Weeks Ended Twenty-six Weeks Ended July 1, June 25, July 1, June 25, SALES: Engineered Support Structures segment: Lighting, Traffic, and Roadway Products $ 173,768 $ 163,191 $ 322,850 $ 309,493 Communication Products 43,813 40,725 75,289 71,394 Engineered Support Structures segment 217,581 203,916 398,139 380,887 Energy and Mining segment: Offshore and Other Complex Steel Structures 24,619 25,908 50,326 48,877 Grinding Media 21,072 21,018 40,666 40,508 Access Systems 31,516 33,766 64,187 63,756 Energy and Mining segment 77,207 80,692 155,179 153,141 Utility Support Structures segment: Steel 161,716 126,101 310,124 248,072 Concrete 22,906 25,144 49,110 47,693 Utility Support Structures segment 184,622 151,245 359,234 295,765 Coatings segment 79,781 75,298 153,249 143,879 Irrigation segment 188,287 152,252 355,511 310,766 Total 747,478 663,403 1,421,312 1,284,438 INTERSEGMENT SALES: Engineered Support Structures segment 16,456 8,114 36,663 19,126 Energy & Mining segment — 1,409 — 3,067 Utility Support Structures segment 982 86 1,217 262 Coatings segment 15,181 11,886 29,317 21,699 Irrigation segment 2,122 1,659 3,905 3,430 Total 34,741 23,154 71,102 47,584 NET SALES: Engineered Support Structures segment 201,125 195,802 361,476 361,761 Energy & Mining segment 77,207 79,283 155,179 150,074 Utility Support Structures segment 183,640 151,159 358,017 295,503 Coatings segment 64,600 63,412 123,932 122,180 Irrigation segment 186,165 150,593 351,606 307,336 Total $ 712,737 $ 640,249 $ 1,350,210 $ 1,236,854 OPERATING INCOME: Engineered Support Structures segment $ 20,244 $ 20,817 $ 29,457 $ 33,292 Energy & Mining segment 3,941 3,341 7,778 5,243 Utility Support Structures segment 20,189 17,582 42,897 32,006 Coatings segment 12,108 14,023 21,514 25,436 Irrigation segment 34,670 31,013 64,961 59,908 Adjustment to LIFO inventory valuation method (434 ) (3,153 ) (1,213 ) (1,126 ) Corporate (12,428 ) (11,817 ) (22,602 ) (20,588 ) Total $ 78,290 $ 71,806 $ 142,792 $ 134,171 |
GUARANTOR_NON-GUARANTOR FINANCI
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | 6 Months Ended |
Jul. 01, 2017 | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION The Company has three tranches of senior unsecured notes. All of the senior notes are guaranteed, jointly, severally, fully and unconditionally (subject to certain customary release provisions, including sale of the subsidiary guarantor, or sale of all or substantially all of its assets) by certain of the Company’s current and future direct and indirect domestic and foreign subsidiaries (collectively the “Guarantors”), excluding its other current domestic and foreign subsidiaries which do not guarantee the debt (collectively referred to as the “Non-Guarantors”). All Guarantors are 100% owned by the parent company. Consolidated financial information for the Company ("Parent"), the Guarantor subsidiaries and the Non-Guarantor subsidiaries is as follows: CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Thirteen weeks ended July 1, 2017 Parent Guarantors Non- Eliminations Total Net sales $ 316,185 $ 122,359 $ 328,016 $ (53,823 ) $ 712,737 Cost of sales 233,535 91,374 259,158 (54,610 ) 529,457 Gross profit 82,650 30,985 68,858 787 183,280 Selling, general and administrative expenses 46,922 11,849 46,219 — 104,990 Operating income 35,728 19,136 22,639 787 78,290 Other income (expense): Interest expense (10,646 ) (3,785 ) (172 ) 3,785 (10,818 ) Interest income 144 10 4,598 (3,785 ) 967 Other 1,167 15 (1,214 ) — (32 ) (9,335 ) (3,760 ) 3,212 — (9,883 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 26,393 15,376 25,851 787 68,407 Income tax expense (benefit): Current 15,344 4,782 7,444 233 27,803 Deferred (5,788 ) — (930 ) — (6,718 ) 9,556 4,782 6,514 233 21,085 Earnings before equity in earnings of nonconsolidated subsidiaries 16,837 10,594 19,337 554 47,322 Equity in earnings of nonconsolidated subsidiaries 28,827 6,296 — (35,123 ) — Net earnings 45,664 16,890 19,337 (34,569 ) 47,322 Less: Earnings attributable to noncontrolling interests — — (1,658 ) — (1,658 ) Net earnings attributable to Valmont Industries, Inc $ 45,664 $ 16,890 $ 17,679 $ (34,569 ) $ 45,664 (8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Twenty-six Weeks Ended July 1, 2017 Parent Guarantors Non- Eliminations Total Net sales $ 609,450 $ 239,584 $ 623,312 $ (122,136 ) $ 1,350,210 Cost of sales 450,021 182,863 491,648 (122,207 ) 1,002,325 Gross profit 159,429 56,721 131,664 71 347,885 Selling, general and administrative expenses 97,139 23,509 84,445 — 205,093 Operating income 62,290 33,212 47,219 71 142,792 Other income (expense): Interest expense (21,788 ) (6,051 ) (334 ) 6,051 (22,122 ) Interest income 295 24 7,626 (6,051 ) 1,894 Other 2,521 31 (1,385 ) — 1,167 (18,972 ) (5,996 ) 5,907 — (19,061 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 43,318 27,216 53,126 71 123,731 Income tax expense (benefit): Current 10,457 10,102 8,553 (11 ) 29,101 Deferred 5,539 — 1,808 — 7,347 15,996 10,102 10,361 (11 ) 36,448 Earnings before equity in earnings of nonconsolidated subsidiaries 27,322 17,114 42,765 82 87,283 Equity in earnings of nonconsolidated subsidiaries 57,321 5,316 — (62,637 ) — Net earnings 84,643 22,430 42,765 (62,555 ) 87,283 Less: Earnings attributable to noncontrolling interests — — (2,640 ) — (2,640 ) Net earnings attributable to Valmont Industries, Inc $ 84,643 $ 22,430 $ 40,125 $ (62,555 ) $ 84,643 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Thirteen weeks ended June 25, 2016 Parent Guarantors Non- Eliminations Total Net sales $ 290,171 $ 97,159 $ 300,911 $ (47,992 ) $ 640,249 Cost of sales 211,675 71,234 229,248 (47,025 ) 465,132 Gross profit 78,496 25,925 71,663 (967 ) 175,117 Selling, general and administrative expenses 44,530 11,080 47,701 — 103,311 Operating income 33,966 14,845 23,962 (967 ) 71,806 Other income (expense): Interest expense (10,918 ) (3 ) (201 ) — (11,122 ) Interest income 46 14 647 — 707 Other 699 15 538 — 1,252 (10,173 ) 26 984 — (9,163 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 23,793 14,871 24,946 (967 ) 62,643 Income tax expense (benefit): Current 10,391 6,242 6,521 (409 ) 22,745 Deferred 1,068 (2,149 ) (2,463 ) — (3,544 ) 11,459 4,093 4,058 (409 ) 19,201 Earnings before equity in earnings of nonconsolidated subsidiaries 12,334 10,778 20,888 (558 ) 43,442 Equity in earnings of nonconsolidated subsidiaries 29,692 5,746 — (35,438 ) — Net earnings 42,026 16,524 20,888 (35,996 ) 43,442 Less: Earnings attributable to noncontrolling interests — — (1,416 ) — (1,416 ) Net earnings attributable to Valmont Industries, Inc $ 42,026 $ 16,524 $ 19,472 $ (35,996 ) $ 42,026 CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Twenty-six Weeks Ended June 25, 2016 Parent Guarantors Non- Eliminations Total Net sales $ 575,209 $ 188,685 $ 573,025 $ (100,065 ) $ 1,236,854 Cost of sales 419,536 139,096 440,641 (98,505 ) 900,768 Gross profit 155,673 49,589 132,384 (1,560 ) 336,086 Selling, general and administrative expenses 87,024 22,510 92,381 — 201,915 Operating income 68,649 27,079 40,003 (1,560 ) 134,171 Other income (expense): Interest expense (21,848 ) (3 ) (325 ) — (22,176 ) Interest income 113 39 1,366 — 1,518 Other 324 27 (777 ) — (426 ) (21,411 ) 63 264 — (21,084 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 47,238 27,142 40,267 (1,560 ) 113,087 Income tax expense (benefit): Current 15,974 8,814 9,000 (529 ) 33,259 Deferred 3,487 — (1,272 ) — 2,215 19,461 8,814 7,728 (529 ) 35,474 Earnings before equity in earnings of nonconsolidated subsidiaries 27,777 18,328 32,539 (1,031 ) 77,613 Equity in earnings of nonconsolidated subsidiaries 47,218 7,859 — (55,077 ) — Net earnings 74,995 26,187 32,539 (56,108 ) 77,613 Less: Earnings attributable to noncontrolling interests — — (2,618 ) — (2,618 ) Net earnings attributable to Valmont Industries, Inc $ 74,995 $ 26,187 $ 29,921 $ (56,108 ) $ 74,995 (8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirteen weeks ended July 1, 2017 Parent Guarantors Non- Eliminations Total Net earnings $ 45,664 $ 16,890 $ 19,337 $ (34,569 ) $ 47,322 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — (1,359 ) 22,910 — 21,551 Unrealized gain/(loss) on hedging activities: Net investment hedge (550 ) — — — (550 ) Amortization cost included in interest expense 18 — — — 18 Equity in other comprehensive income 20,986 — — (20,986 ) — Other comprehensive income (loss) 20,454 (1,359 ) 22,910 (20,986 ) 21,019 Comprehensive income (loss) 66,118 15,531 42,247 (55,555 ) 68,341 Comprehensive income attributable to noncontrolling interests — — (2,223 ) — (2,223 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 66,118 $ 15,531 $ 40,024 $ (55,555 ) $ 66,118 (8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Twenty-six Weeks Ended July 1, 2017 Parent Guarantors Non- Eliminations Total Net earnings $ 84,643 $ 22,430 $ 42,765 $ (62,555 ) $ 87,283 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — 68,024 (27,083 ) — 40,941 Unrealized gain/(loss) on hedging activities: Net investment hedge (1,076 ) — — (1,076 ) Amortization cost included in interest expense 37 — — — 37 Equity in other comprehensive income 41,599 — — (41,599 ) — Other comprehensive income (loss) 40,560 68,024 (27,083 ) (41,599 ) 39,902 Comprehensive income (loss) 125,203 90,454 15,682 (104,154 ) 127,185 Comprehensive income attributable to noncontrolling interests — — (1,982 ) — (1,982 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 125,203 $ 90,454 $ 13,700 $ (104,154 ) $ 125,203 (8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirteen weeks ended June 25, 2016 Parent Guarantors Non- Eliminations Total Net earnings $ 42,026 $ 16,524 $ 20,888 $ (35,996 ) $ 43,442 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) 2,925 29 (5,250 ) — (2,296 ) Unrealized gain/(loss) on hedging activities: Amortization cost included in interest expense 19 — — — 19 Equity in other comprehensive income (5,592 ) — — 5,592 — Other comprehensive income (loss) (2,648 ) 29 (5,250 ) 5,592 (2,277 ) Comprehensive income (loss) 39,378 16,553 15,638 (30,404 ) 41,165 Comprehensive income attributable to noncontrolling interests — — (1,787 ) — (1,787 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 39,378 $ 16,553 $ 13,851 $ (30,404 ) $ 39,378 (8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Twenty-six Weeks Ended June 25, 2016 Parent Guarantors Non- Eliminations Total Net earnings $ 74,995 $ 26,187 $ 32,539 $ (56,108 ) $ 77,613 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) 2,925 (149 ) (2,559 ) — 217 Unrealized gain/(loss) on hedging activities: Amortization cost included in interest expense 38 — — — 38 Equity in other comprehensive income (1,279 ) — — 1,279 — Other comprehensive income (loss) 1,684 (149 ) (2,559 ) 1,279 255 Comprehensive income (loss) 76,679 26,038 29,980 (54,829 ) 77,868 Comprehensive income attributable to noncontrolling interests — — (4,114 ) — (4,114 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 76,679 $ 26,038 $ 25,866 $ (54,829 ) $ 73,754 (8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS July 1, 2017 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 94,099 $ 4,422 $ 349,701 $ — $ 448,222 Receivables, net 144,846 80,026 272,090 — 496,962 Inventories 137,534 43,536 205,800 (4,222 ) 382,648 Prepaid expenses, restricted cash, and other assets 6,141 814 36,590 — 43,545 Refundable income taxes 4,830 — — — 4,830 Total current assets 387,450 128,798 864,181 (4,222 ) 1,376,207 Property, plant and equipment, at cost 554,027 156,700 437,755 — 1,148,482 Less accumulated depreciation and amortization 364,591 81,154 182,630 — 628,375 Net property, plant and equipment 189,436 75,546 255,125 — 520,107 Goodwill 20,108 110,562 199,038 — 329,708 Other intangible assets 157 33,454 107,946 — 141,557 Investment in subsidiaries and intercompany accounts 1,367,336 1,155,599 1,021,205 (3,544,140 ) — Other assets 47,042 — 108,541 — 155,583 Total assets $ 2,011,529 $ 1,503,959 $ 2,556,036 $ (3,548,362 ) $ 2,523,162 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 921 $ — $ 921 Notes payable to banks — — 376 — 376 Accounts payable 55,029 10,891 127,167 — 193,087 Accrued employee compensation and benefits 33,624 6,088 29,232 — 68,944 Accrued expenses 33,217 10,745 58,285 — 102,247 Dividends payable 8,472 — — — 8,472 Total current liabilities 130,342 27,724 215,981 — 374,047 Deferred income taxes 18,958 — 13,684 — 32,642 Long-term debt, excluding current installments 751,041 182,193 10,057 (188,855 ) 754,436 Defined benefit pension liability — — 194,517 — 194,517 Deferred compensation 42,492 — 5,307 — 47,799 Other noncurrent liabilities 4,447 5 12,823 — 17,275 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,682 (1,106,632 ) 27,900 Additional paid-in capital — 163,199 1,107,536 (1,270,735 ) — Retained earnings 1,945,874 669,177 617,796 (1,286,973 ) 1,945,874 Accumulated other comprehensive income (loss) (305,799 ) 3,711 (308,544 ) 304,833 (305,799 ) Treasury stock (603,726 ) — — — (603,726 ) Total Valmont Industries, Inc. shareholders’ equity 1,064,249 1,294,037 2,065,470 (3,359,507 ) 1,064,249 Noncontrolling interest in consolidated subsidiaries — — 38,197 — 38,197 Total shareholders’ equity 1,064,249 1,294,037 2,103,667 (3,359,507 ) 1,102,446 Total liabilities and shareholders’ equity $ 2,011,529 $ 1,503,959 $ 2,556,036 $ (3,548,362 ) $ 2,523,162 (8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS December 31, 2016 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 67,225 $ 6,071 $ 326,652 $ — $ 399,948 Receivables, net 134,351 60,522 244,469 — 439,342 Inventories 126,669 45,457 182,056 (4,154 ) 350,028 Prepaid expenses 13,271 880 43,146 — 57,297 Refundable income taxes 6,601 — — — 6,601 Total current assets 348,117 112,930 796,323 (4,154 ) 1,253,216 Property, plant and equipment, at cost 547,076 153,596 405,064 — 1,105,736 Less accumulated depreciation and amortization 352,960 76,776 157,665 — 587,401 Net property, plant and equipment 194,116 76,820 247,399 — 518,335 Goodwill 20,108 110,561 190,441 — 321,110 Other intangible assets 184 35,953 108,241 — 144,378 Investment in subsidiaries and intercompany accounts 1,279,413 901,758 1,089,369 (3,270,540 ) — Other assets 43,880 — 110,812 — 154,692 Total assets $ 1,885,818 $ 1,238,022 $ 2,542,585 $ (3,274,694 ) $ 2,391,731 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 851 $ — $ 851 Notes payable to banks — — 746 — 746 Accounts payable 52,272 15,732 109,484 — 177,488 Accrued employee compensation and benefits 34,508 7,243 30,653 — 72,404 Accrued expenses 30,261 15,242 44,411 — 89,914 Dividends payable 8,445 — — — 8,445 Total current liabilities 125,486 38,217 186,145 — 349,848 Deferred income taxes 22,481 — 13,322 — 35,803 Long-term debt, excluding current installments 751,251 — 3,544 — 754,795 Defined benefit pension liability — — 209,470 — 209,470 Deferred compensation 39,476 — 4,843 — 44,319 Other noncurrent liabilities 3,642 5 11,263 — 14,910 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,683 (1,106,633 ) 27,900 Additional paid-in capital — 159,414 1,107,536 (1,266,950 ) — Retained earnings 1,874,722 646,749 603,338 (1,250,087 ) 1,874,722 Accumulated other comprehensive income (346,359 ) (64,313 ) (284,663 ) 348,976 (346,359 ) Treasury stock (612,781 ) — — — (612,781 ) Total Valmont Industries, Inc. shareholders’ equity 943,482 1,199,800 2,074,894 (3,274,694 ) 943,482 Noncontrolling interest in consolidated subsidiaries — — 39,104 — 39,104 Total shareholders’ equity 943,482 1,199,800 2,113,998 (3,274,694 ) 982,586 Total liabilities and shareholders’ equity $ 1,885,818 $ 1,238,022 $ 2,542,585 $ (3,274,694 ) $ 2,391,731 (8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Twenty-six Weeks Ended July 1, 2017 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 84,643 $ 22,430 $ 42,765 $ (62,555 ) $ 87,283 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 13,048 7,113 21,593 — 41,754 Noncash loss on trading securities — — 188 — 188 Stock-based compensation 4,590 — — — 4,590 Defined benefit pension plan expense — — 314 — 314 Contribution to defined benefit pension plan — — (25,379 ) — (25,379 ) Decrease in restricted cash - pension plan trust — — 12,568 — 12,568 Loss (gain) on sale of property, plant and equipment (20 ) — (44 ) — (64 ) Equity in earnings in nonconsolidated subsidiaries (57,321 ) (5,316 ) — 62,637 — Deferred income taxes 5,539 — 1,808 — 7,347 Changes in assets and liabilities: Receivables (8,746 ) (19,504 ) (21,166 ) — (49,416 ) Inventories (10,866 ) 1,921 (16,087 ) 69 (24,963 ) Prepaid expenses and other assets 259 66 (6,217 ) — (5,892 ) Accounts payable 2,757 (4,841 ) 12,799 — 10,715 Accrued expenses 2,073 (5,652 ) 8,831 — 5,252 Other noncurrent liabilities 874 — 1,099 — 1,973 Income taxes payable (refundable) (7,737 ) 542 9,223 — 2,028 Net cash flows from operating activities 29,093 (3,241 ) 42,295 151 68,298 Cash flows from investing activities: Purchase of property, plant and equipment (8,126 ) (3,351 ) (14,706 ) — (26,183 ) Proceeds from sale of assets 21 11 858 — 890 Proceeds from settlement of net investment hedge 5,123 — — — 5,123 Other, net (8,313 ) 6,604 (607 ) (151 ) (2,467 ) Net cash flows from investing activities (11,295 ) 3,264 (14,455 ) (151 ) (22,637 ) Cash flows from financing activities: Net borrowings under short-term agreements — — (369 ) — (369 ) Principal payments on long-term borrowings — (434 ) — (434 ) Dividends paid (16,913 ) — — — (16,913 ) Dividends to noncontrolling interest — (2,889 ) — (2,889 ) Intercompany dividends 22,662 — (22,662 ) — — Intercompany interest on long-term note — (5,669 ) 5,669 — — Intercompany capital contribution (3,785 ) 3,785 — — — Proceeds from exercises under stock plans 10,168 — — — 10,168 Purchase of common treasury shares - stock plan exercises (3,056 ) — — — (3,056 ) Net cash flows from financing activities 9,076 (1,884 ) (20,685 ) — (13,493 ) Effect of exchange rate changes on cash and cash equivalents — 212 15,894 — 16,106 Net change in cash and cash equivalents 26,874 (1,649 ) 23,049 — 48,274 Cash and cash equivalents—beginning of year 67,225 6,071 326,652 — 399,948 Cash and cash equivalents—end of period $ 94,099 $ 4,422 $ 349,701 $ — $ 448,222 (8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Twenty-six Weeks Ended June 25, 2016 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 74,995 $ 26,187 $ 32,539 $ (56,108 ) $ 77,613 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 13,705 6,591 20,508 — 40,804 Noncash loss on trading securities — — 1,035 — 1,035 Stock-based compensation 4,201 — — — 4,201 Defined benefit pension plan expense — — 959 — 959 Contribution to defined benefit pension plan — — (712 ) — (712 ) Increase in restricted cash - pension plan trust — — (13,652 ) — (13,652 ) Loss (gain) on sale of property, plant and equipment (6 ) 60 1,020 — 1,074 Equity in earnings in nonconsolidated subsidiaries (47,218 ) (7,859 ) — 55,077 — Deferred income taxes 3,487 — (1,272 ) — 2,215 Changes in assets and liabilities: Receivables 386 8,185 (5,629 ) — 2,942 Inventories (8,757 ) (164 ) (21,974 ) 1,560 (29,335 ) Prepaid expenses (1,504 ) 35 (3,390 ) — (4,859 ) Accounts payable (13,469 ) (79 ) 14,978 — 1,430 Accrued expenses (4,040 ) (6,158 ) (3,438 ) — (13,636 ) Other noncurrent liabilities 868 5 (546 ) — 327 Income taxes payable (refundable) 19,033 (16,499 ) 6,982 — 9,516 Net cash flows from operating activities 41,681 10,304 27,408 529 79,922 Cash flows from investing activities: Purchase of property, plant and equipment (1,240 ) (13,167 ) (11,612 ) — (26,019 ) Proceeds from sale of assets 58 141 1,628 — 1,827 Other, net 918 2,641 (4,638 ) (529 ) (1,608 ) Net cash flows from investing activities (264 ) (10,385 ) (14,622 ) (529 ) (25,800 ) Cash flows from financing activities: Net borrowings under short-term agreements — — 2,593 — 2,593 Principal payments on long-term borrowings (215 ) — (444 ) — (659 ) Dividends paid (17,098 ) — — — (17,098 ) Dividends to noncontrolling interest — — (1,923 ) — (1,923 ) Purchase of noncontrolling interest (137 ) — (10,872 ) — (11,009 ) Proceeds from exercises under stock plans 5,975 — — — 5,975 Purchase of treasury shares (28,621 ) — — — (28,621 ) Purchase of common treasury shares - stock plan exercises (1,453 ) — — — (1,453 ) Net cash flows from financing activities (41,549 ) — (10,646 ) — (52,195 ) Effect of exchange rate changes on cash and cash equivalents — 95 (6,750 ) — (6,655 ) Net change in cash and cash equivalents (132 ) 14 (4,610 ) — (4,728 ) Cash and cash equivalents—beginning of year 62,281 4,008 282,785 — 349,074 Cash and cash equivalents—end of period $ 62,149 $ 4,022 $ 278,175 $ — $ 344,346 |
SUMMARY OF SIGNIFICANT ACCOUN17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jul. 01, 2017 | |
Accounting Policies [Abstract] | |
Condensed Consolidated Financial Statements | Condensed Consolidated Financial Statements The Condensed Consolidated Balance Sheet as of July 1, 2017 , the Condensed Consolidated Statements of Earnings and Comprehensive Income for the thirteen and twenty-six weeks ended July 1, 2017 and June 25, 2016 , and the Condensed Consolidated Statements of Cash Flows and Shareholders' Equity for the twenty-six week periods then ended have been prepared by the Company, without audit. In the opinion of management, all necessary adjustments (which include normal recurring adjustments) have been made to present fairly the financial statements as of July 1, 2017 and for all periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These Condensed Consolidated Financial Statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2016 . The accounting policies and methods of computation followed in these interim financial statements are the same as those followed in the financial statements for the year ended December 31, 2016 . The results of operations for the period ended July 1, 2017 are not necessarily indicative of the operating results for the full year. |
Inventories | Inventories Approximately 35% and 38% of inventory is valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market as of July 1, 2017 and December 31, 2016 . All other inventory is valued at the lower of cost, determined on the first-in, first-out (FIFO) method or market. Finished goods and manufactured goods inventories include the costs of acquired raw materials and related factory labor and overhead charges required to convert raw materials to manufactured and finished goods. |
Income Taxes | Income Taxes Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries for the thirteen and twenty-six weeks ended July 1, 2017 and June 25, 2016 , were as follows: Thirteen Weeks Ended Twenty-six Weeks Ended 2017 2016 2017 2016 United States $ 50,773 $ 44,240 $ 86,197 $ 83,840 Foreign 17,634 18,403 37,534 29,247 $ 68,407 $ 62,643 $ 123,731 $ 113,087 |
Pension Benefits | Pension Benefits The Company incurs expenses in connection with the Delta Pension Plan ("DPP"). The DPP was acquired as part of the Delta plc acquisition in fiscal 2010 and has no members that are active employees. In order to measure expense and the related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as current facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits. |
Stock Plans | Stock Plans The Company maintains stock‑based compensation plans approved by the shareholders, which provide that the Human Resource Committee of the Board of Directors may grant incentive stock options, nonqualified stock options, stock appreciation rights, non-vested stock awards and bonuses of common stock. At July 1, 2017 , 700,078 shares of common stock remained available for issuance under the plans. Shares and options issued and available are subject to changes in capitalization. Under the plans, the exercise price of each option equals the closing market price at the date of the grant. Options vest beginning on the first anniversary of the grant in equal amounts over three to six years or on the fifth anniversary of the grant. (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Expiration of grants is from seven to ten years from the date of grant. |
Fair Value | Fair Value The Company applies the provisions of Accounting Standards Codification 820, Fair Value Measurements (“ASC 820”) which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The provisions of ASC 820 apply to other accounting pronouncements that require or permit fair value measurements. As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three‑level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Comprehensive Income | Comprehensive Income Comprehensive income includes net earnings, currency translation adjustments, certain derivative-related activity and changes in net actuarial gains/losses from a pension plan. Results of operations for foreign subsidiaries are translated using the average exchange rates during the period. Assets and liabilities are translated at the exchange rates in effect on the balance sheet dates. |
Subsequent Events | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-9, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification ("ASC") 605, Revenue Recognition . The new revenue recognition standard requires entities to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This standard is effective for interim and annual reporting periods beginning after December 15, 2017, and can be adopted either retrospectively or as a cumulative effect adjustment as of the date of adoption. Early adoption is permitted for interim and annual periods beginning after December 15, 2016. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated results of operations and financial position. One area under assessment is the timing of revenue recognition for the Company’s product lines that are custom engineered to a single customer’s specifications resulting in limited ability that the asset can be used for another customer. These product lines reside in the Utility and Engineered Support Structures segments. When the terms and conditions allow the Company to bill a customer for full compensation on a canceled order for the performance completed to date, revenue will be recognized over the production period and not the current practice which is upon shipment or time of delivery to the customer. The Company is also evaluating the necessary changes to its internal control processes to recognize revenue over time using an inputs based model after adoption. Based on the current status of the evaluation, the adoption of the standard is not expected to have a material effect on the amounts or timing of revenue recognition for the Company’s other segments. The Company expects to adopt the new standard using the modified retrospective approach effective January 1, 2018. |
SUMMARY OF SIGNIFICANT ACCOUN18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Accounting Policies [Abstract] | |
Components of inventories | Inventories consisted of the following: July 1, December 31, Raw materials and purchased parts $ 163,214 $ 143,659 Work-in-process 33,543 27,291 Finished goods and manufactured goods 225,151 217,125 Subtotal 421,908 388,075 Less: LIFO reserve 39,260 38,047 $ 382,648 $ 350,028 |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries for the thirteen and twenty-six weeks ended July 1, 2017 and June 25, 2016 , were as follows: Thirteen Weeks Ended Twenty-six Weeks Ended 2017 2016 2017 2016 United States $ 50,773 $ 44,240 $ 86,197 $ 83,840 Foreign 17,634 18,403 37,534 29,247 $ 68,407 $ 62,643 $ 123,731 $ 113,087 |
Schedule of components of the net periodic pension (benefit) expense | The components of the net periodic pension (benefit) expense for the thirteen and twenty-six weeks ended July 1, 2017 and June 25, 2016 were as follows: Thirteen Weeks Ended Twenty-six Weeks Ended Net periodic (benefit) expense: 2017 2016 2017 2016 Interest cost $ 4,478 $ 6,659 $ 8,799 $ 13,042 Expected return on plan assets (5,054 ) (6,084 ) (9,931 ) (12,083 ) Amortization of actuarial loss 736 — 1,446 — Net periodic expense $ 160 $ 575 $ 314 $ 959 |
Compensation expense (included in selling, general and administrative expenses) and associated income tax benefits related to stock options | The Company's compensation expense (included in selling, general and administrative expenses) and associated income tax benefits related to stock options for the thirteen and twenty-six weeks ended July 1, 2017 and June 25, 2016 , respectively, were as follows: Thirteen Weeks Ended Twenty-six Weeks Ended 2017 2016 2017 2016 Compensation expense $ 1,289 $ 1,468 $ 2,578 $ 2,959 Income tax benefits 496 565 993 1,139 |
Valuation methodologies used for assets and liabilities measured at fair value | Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 40,663 $ 40,663 $ — $ — Fair Value Measurement Using: Carrying Value Quoted Prices in Significant Other Significant Assets: Trading Securities $ 37,800 $ 37,800 $ — $ — |
Components of accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) consisted of the following at July 1, 2017 and December 31, 2016: Foreign Currency Translation Adjustments Gain on Hedging Activities Defined Benefit Pension Plan Accumulated Other Comprehensive Loss Balance at December 31, 2016 $ (251,228 ) $ 7,978 $ (103,109 ) $ (346,359 ) Current-period comprehensive income (loss) 41,599 (1,039 ) — 40,560 Balance at July 1, 2017 $ (209,629 ) $ 6,939 $ (103,109 ) $ (305,799 ) |
RESTRUCTURING ACTIVITIES (Table
RESTRUCTURING ACTIVITIES (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of liabilities recorded for the restructuring plan and changes | Liabilities recorded for the restructuring plans and changes therein for the first half of fiscal 2017 were as follows: Balance at December 31, 2016 Recognized Restructuring Expense Costs Paid or Otherwise Settled Balance at July 1, 2017 Severance $ 1,597 $ — $ (1,597 ) $ — Other cash restructuring expenses 4,581 — (2,226 ) 2,355 Total $ 6,178 $ — $ (3,823 ) $ 2,355 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of components of amortized intangible assets | he components of amortized intangible assets at July 1, 2017 and December 31, 2016 were as follows: July 1, 2017 Gross Accumulated Weighted Customer Relationships $ 196,201 $ 121,382 13 years Proprietary Software & Database 3,659 3,083 8 years Patents & Proprietary Technology 6,581 3,720 11 years Other 3,942 3,912 3 years $ 210,383 $ 132,097 (4) GOODWILL AND INTANGIBLE ASSETS (Continued) December 31, 2016 Gross Accumulated Weighted Customer Relationships $ 191,316 $ 111,342 13 years Proprietary Software & Database 3,616 3,056 8 years Patents & Proprietary Technology 6,434 3,420 11 years Other 3,713 3,668 3 years $ 205,079 $ 121,486 |
Schedule of amortization expense for intangible assets | Amortization expense for intangible assets for the thirteen and twenty-six weeks ended July 1, 2017 and June 25, 2016 , respectively was as follows: Thirteen Weeks Ended Twenty-six Weeks Ended 2017 2016 2017 2016 3,903 4,078 7,767 8,073 |
Schedule of future estimated amortization expense | Estimated annual amortization expense related to finite‑lived intangible assets is as follows: Estimated 2017 $ 15,498 2018 13,840 2019 13,079 2020 11,989 2021 9,903 |
Schedule of non-amortized intangible assets | The carrying values of trade names at July 1, 2017 and December 31, 2016 were as follows: July 1, December 31, Year Acquired Webforge $ 9,101 $ 8,624 2010 Valmont SM 9,525 8,765 2014 Newmark 11,111 11,111 2004 Ingal EPS/Ingal Civil Products 7,420 7,032 2010 Donhad 5,598 5,305 2010 Shakespeare 4,000 4,000 2014 Industrial Galvanizers 2,323 2,201 2010 Other 14,193 13,747 $ 63,271 $ 60,785 |
Schedule of carrying amount of goodwill | The carrying amount of goodwill by segment as of July 1, 2017 and December 31, 2016 was as follows: Engineered Energy & Mining Segment Utility Coatings Irrigation Total Balance at December 31, 2016 $ 94,314 $ 72,212 $ 75,404 $ 59,569 $ 19,611 $ 321,110 Foreign currency translation 2,885 4,628 — 483 602 8,598 Balance at July 1, 2017 $ 97,199 $ 76,840 $ 75,404 $ 60,052 $ 20,213 $ 329,708 |
CASH FLOW SUPPLEMENTARY INFOR21
CASH FLOW SUPPLEMENTARY INFORMATION (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
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 twenty-six weeks ended July 1, 2017 and June 25, 2016 were as follows: 2017 2016 Interest $ 22,113 $ 22,142 Income taxes 26,966 28,791 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of basic and diluted earnings per share (EPS) | The following table provides a reconciliation between Basic and Diluted earnings per share (EPS): Basic EPS Dilutive Diluted EPS Thirteen weeks ended July 1, 2017: Net earnings attributable to Valmont Industries, Inc. $ 45,664 $ — $ 45,664 Shares outstanding (000 omitted) 22,517 223 22,740 Per share amount $ 2.03 $ (0.02 ) $ 2.01 Thirteen weeks ended June 25, 2016: Net earnings attributable to Valmont Industries, Inc. $ 42,026 $ — $ 42,026 Shares outstanding (000 omitted) 22,602 147 22,749 Per share amount $ 1.86 $ (0.01 ) $ 1.85 Twenty-six weeks ended July 1, 2017: Net earnings attributable to Valmont Industries, Inc. $ 84,643 $ — $ 84,643 Shares outstanding (000 omitted) 22,494 206 22,700 Per share amount $ 3.76 $ (0.03 ) $ 3.73 Twenty-six weeks ended June 25, 2016: Net earnings attributable to Valmont Industries, Inc. $ 74,995 $ — $ 74,995 Shares outstanding (000 omitted) 22,651 131 22,782 Per share amount $ 3.31 $ (0.02 ) $ 3.29 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
Segment Reporting [Abstract] | |
Segment reporting information of sales and operating income | (7) BUSINESS SEGMENTS (Continued) Summary by Business Thirteen Weeks Ended Twenty-six Weeks Ended July 1, June 25, July 1, June 25, SALES: Engineered Support Structures segment: Lighting, Traffic, and Roadway Products $ 173,768 $ 163,191 $ 322,850 $ 309,493 Communication Products 43,813 40,725 75,289 71,394 Engineered Support Structures segment 217,581 203,916 398,139 380,887 Energy and Mining segment: Offshore and Other Complex Steel Structures 24,619 25,908 50,326 48,877 Grinding Media 21,072 21,018 40,666 40,508 Access Systems 31,516 33,766 64,187 63,756 Energy and Mining segment 77,207 80,692 155,179 153,141 Utility Support Structures segment: Steel 161,716 126,101 310,124 248,072 Concrete 22,906 25,144 49,110 47,693 Utility Support Structures segment 184,622 151,245 359,234 295,765 Coatings segment 79,781 75,298 153,249 143,879 Irrigation segment 188,287 152,252 355,511 310,766 Total 747,478 663,403 1,421,312 1,284,438 INTERSEGMENT SALES: Engineered Support Structures segment 16,456 8,114 36,663 19,126 Energy & Mining segment — 1,409 — 3,067 Utility Support Structures segment 982 86 1,217 262 Coatings segment 15,181 11,886 29,317 21,699 Irrigation segment 2,122 1,659 3,905 3,430 Total 34,741 23,154 71,102 47,584 NET SALES: Engineered Support Structures segment 201,125 195,802 361,476 361,761 Energy & Mining segment 77,207 79,283 155,179 150,074 Utility Support Structures segment 183,640 151,159 358,017 295,503 Coatings segment 64,600 63,412 123,932 122,180 Irrigation segment 186,165 150,593 351,606 307,336 Total $ 712,737 $ 640,249 $ 1,350,210 $ 1,236,854 OPERATING INCOME: Engineered Support Structures segment $ 20,244 $ 20,817 $ 29,457 $ 33,292 Energy & Mining segment 3,941 3,341 7,778 5,243 Utility Support Structures segment 20,189 17,582 42,897 32,006 Coatings segment 12,108 14,023 21,514 25,436 Irrigation segment 34,670 31,013 64,961 59,908 Adjustment to LIFO inventory valuation method (434 ) (3,153 ) (1,213 ) (1,126 ) Corporate (12,428 ) (11,817 ) (22,602 ) (20,588 ) Total $ 78,290 $ 71,806 $ 142,792 $ 134,171 |
GUARANTOR_NON-GUARANTOR FINAN24
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables) | 6 Months Ended |
Jul. 01, 2017 | |
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | |
Condensed Consolidated Statements of Earnings | CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Thirteen weeks ended July 1, 2017 Parent Guarantors Non- Eliminations Total Net sales $ 316,185 $ 122,359 $ 328,016 $ (53,823 ) $ 712,737 Cost of sales 233,535 91,374 259,158 (54,610 ) 529,457 Gross profit 82,650 30,985 68,858 787 183,280 Selling, general and administrative expenses 46,922 11,849 46,219 — 104,990 Operating income 35,728 19,136 22,639 787 78,290 Other income (expense): Interest expense (10,646 ) (3,785 ) (172 ) 3,785 (10,818 ) Interest income 144 10 4,598 (3,785 ) 967 Other 1,167 15 (1,214 ) — (32 ) (9,335 ) (3,760 ) 3,212 — (9,883 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 26,393 15,376 25,851 787 68,407 Income tax expense (benefit): Current 15,344 4,782 7,444 233 27,803 Deferred (5,788 ) — (930 ) — (6,718 ) 9,556 4,782 6,514 233 21,085 Earnings before equity in earnings of nonconsolidated subsidiaries 16,837 10,594 19,337 554 47,322 Equity in earnings of nonconsolidated subsidiaries 28,827 6,296 — (35,123 ) — Net earnings 45,664 16,890 19,337 (34,569 ) 47,322 Less: Earnings attributable to noncontrolling interests — — (1,658 ) — (1,658 ) Net earnings attributable to Valmont Industries, Inc $ 45,664 $ 16,890 $ 17,679 $ (34,569 ) $ 45,664 (8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS For the Twenty-six Weeks Ended July 1, 2017 Parent Guarantors Non- Eliminations Total Net sales $ 609,450 $ 239,584 $ 623,312 $ (122,136 ) $ 1,350,210 Cost of sales 450,021 182,863 491,648 (122,207 ) 1,002,325 Gross profit 159,429 56,721 131,664 71 347,885 Selling, general and administrative expenses 97,139 23,509 84,445 — 205,093 Operating income 62,290 33,212 47,219 71 142,792 Other income (expense): Interest expense (21,788 ) (6,051 ) (334 ) 6,051 (22,122 ) Interest income 295 24 7,626 (6,051 ) 1,894 Other 2,521 31 (1,385 ) — 1,167 (18,972 ) (5,996 ) 5,907 — (19,061 ) Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries 43,318 27,216 53,126 71 123,731 Income tax expense (benefit): Current 10,457 10,102 8,553 (11 ) 29,101 Deferred 5,539 — 1,808 — 7,347 15,996 10,102 10,361 (11 ) 36,448 Earnings before equity in earnings of nonconsolidated subsidiaries 27,322 17,114 42,765 82 87,283 Equity in earnings of nonconsolidated subsidiaries 57,321 5,316 — (62,637 ) — Net earnings 84,643 22,430 42,765 (62,555 ) 87,283 Less: Earnings attributable to noncontrolling interests — — (2,640 ) — (2,640 ) Net earnings attributable to Valmont Industries, Inc $ 84,643 $ 22,430 $ 40,125 $ (62,555 ) $ 84,643 |
Condensed Consolidated Statements of Comprehensive Income | CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirteen weeks ended July 1, 2017 Parent Guarantors Non- Eliminations Total Net earnings $ 45,664 $ 16,890 $ 19,337 $ (34,569 ) $ 47,322 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — (1,359 ) 22,910 — 21,551 Unrealized gain/(loss) on hedging activities: Net investment hedge (550 ) — — — (550 ) Amortization cost included in interest expense 18 — — — 18 Equity in other comprehensive income 20,986 — — (20,986 ) — Other comprehensive income (loss) 20,454 (1,359 ) 22,910 (20,986 ) 21,019 Comprehensive income (loss) 66,118 15,531 42,247 (55,555 ) 68,341 Comprehensive income attributable to noncontrolling interests — — (2,223 ) — (2,223 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 66,118 $ 15,531 $ 40,024 $ (55,555 ) $ 66,118 (8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Twenty-six Weeks Ended July 1, 2017 Parent Guarantors Non- Eliminations Total Net earnings $ 84,643 $ 22,430 $ 42,765 $ (62,555 ) $ 87,283 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) — 68,024 (27,083 ) — 40,941 Unrealized gain/(loss) on hedging activities: Net investment hedge (1,076 ) — — (1,076 ) Amortization cost included in interest expense 37 — — — 37 Equity in other comprehensive income 41,599 — — (41,599 ) — Other comprehensive income (loss) 40,560 68,024 (27,083 ) (41,599 ) 39,902 Comprehensive income (loss) 125,203 90,454 15,682 (104,154 ) 127,185 Comprehensive income attributable to noncontrolling interests — — (1,982 ) — (1,982 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 125,203 $ 90,454 $ 13,700 $ (104,154 ) $ 125,203 (8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Thirteen weeks ended June 25, 2016 Parent Guarantors Non- Eliminations Total Net earnings $ 42,026 $ 16,524 $ 20,888 $ (35,996 ) $ 43,442 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) 2,925 29 (5,250 ) — (2,296 ) Unrealized gain/(loss) on hedging activities: Amortization cost included in interest expense 19 — — — 19 Equity in other comprehensive income (5,592 ) — — 5,592 — Other comprehensive income (loss) (2,648 ) 29 (5,250 ) 5,592 (2,277 ) Comprehensive income (loss) 39,378 16,553 15,638 (30,404 ) 41,165 Comprehensive income attributable to noncontrolling interests — — (1,787 ) — (1,787 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 39,378 $ 16,553 $ 13,851 $ (30,404 ) $ 39,378 (8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the Twenty-six Weeks Ended June 25, 2016 Parent Guarantors Non- Eliminations Total Net earnings $ 74,995 $ 26,187 $ 32,539 $ (56,108 ) $ 77,613 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments: Unrealized translation gain (loss) 2,925 (149 ) (2,559 ) — 217 Unrealized gain/(loss) on hedging activities: Amortization cost included in interest expense 38 — — — 38 Equity in other comprehensive income (1,279 ) — — 1,279 — Other comprehensive income (loss) 1,684 (149 ) (2,559 ) 1,279 255 Comprehensive income (loss) 76,679 26,038 29,980 (54,829 ) 77,868 Comprehensive income attributable to noncontrolling interests — — (4,114 ) — (4,114 ) Comprehensive income (loss) attributable to Valmont Industries, Inc. $ 76,679 $ 26,038 $ 25,866 $ (54,829 ) $ 73,754 |
Condensed Consolidated Balance Sheets | CONDENSED CONSOLIDATED BALANCE SHEETS July 1, 2017 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 94,099 $ 4,422 $ 349,701 $ — $ 448,222 Receivables, net 144,846 80,026 272,090 — 496,962 Inventories 137,534 43,536 205,800 (4,222 ) 382,648 Prepaid expenses, restricted cash, and other assets 6,141 814 36,590 — 43,545 Refundable income taxes 4,830 — — — 4,830 Total current assets 387,450 128,798 864,181 (4,222 ) 1,376,207 Property, plant and equipment, at cost 554,027 156,700 437,755 — 1,148,482 Less accumulated depreciation and amortization 364,591 81,154 182,630 — 628,375 Net property, plant and equipment 189,436 75,546 255,125 — 520,107 Goodwill 20,108 110,562 199,038 — 329,708 Other intangible assets 157 33,454 107,946 — 141,557 Investment in subsidiaries and intercompany accounts 1,367,336 1,155,599 1,021,205 (3,544,140 ) — Other assets 47,042 — 108,541 — 155,583 Total assets $ 2,011,529 $ 1,503,959 $ 2,556,036 $ (3,548,362 ) $ 2,523,162 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 921 $ — $ 921 Notes payable to banks — — 376 — 376 Accounts payable 55,029 10,891 127,167 — 193,087 Accrued employee compensation and benefits 33,624 6,088 29,232 — 68,944 Accrued expenses 33,217 10,745 58,285 — 102,247 Dividends payable 8,472 — — — 8,472 Total current liabilities 130,342 27,724 215,981 — 374,047 Deferred income taxes 18,958 — 13,684 — 32,642 Long-term debt, excluding current installments 751,041 182,193 10,057 (188,855 ) 754,436 Defined benefit pension liability — — 194,517 — 194,517 Deferred compensation 42,492 — 5,307 — 47,799 Other noncurrent liabilities 4,447 5 12,823 — 17,275 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,682 (1,106,632 ) 27,900 Additional paid-in capital — 163,199 1,107,536 (1,270,735 ) — Retained earnings 1,945,874 669,177 617,796 (1,286,973 ) 1,945,874 Accumulated other comprehensive income (loss) (305,799 ) 3,711 (308,544 ) 304,833 (305,799 ) Treasury stock (603,726 ) — — — (603,726 ) Total Valmont Industries, Inc. shareholders’ equity 1,064,249 1,294,037 2,065,470 (3,359,507 ) 1,064,249 Noncontrolling interest in consolidated subsidiaries — — 38,197 — 38,197 Total shareholders’ equity 1,064,249 1,294,037 2,103,667 (3,359,507 ) 1,102,446 Total liabilities and shareholders’ equity $ 2,011,529 $ 1,503,959 $ 2,556,036 $ (3,548,362 ) $ 2,523,162 (8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED BALANCE SHEETS December 31, 2016 Parent Guarantors Non- Eliminations Total ASSETS Current assets: Cash and cash equivalents $ 67,225 $ 6,071 $ 326,652 $ — $ 399,948 Receivables, net 134,351 60,522 244,469 — 439,342 Inventories 126,669 45,457 182,056 (4,154 ) 350,028 Prepaid expenses 13,271 880 43,146 — 57,297 Refundable income taxes 6,601 — — — 6,601 Total current assets 348,117 112,930 796,323 (4,154 ) 1,253,216 Property, plant and equipment, at cost 547,076 153,596 405,064 — 1,105,736 Less accumulated depreciation and amortization 352,960 76,776 157,665 — 587,401 Net property, plant and equipment 194,116 76,820 247,399 — 518,335 Goodwill 20,108 110,561 190,441 — 321,110 Other intangible assets 184 35,953 108,241 — 144,378 Investment in subsidiaries and intercompany accounts 1,279,413 901,758 1,089,369 (3,270,540 ) — Other assets 43,880 — 110,812 — 154,692 Total assets $ 1,885,818 $ 1,238,022 $ 2,542,585 $ (3,274,694 ) $ 2,391,731 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current installments of long-term debt $ — $ — $ 851 $ — $ 851 Notes payable to banks — — 746 — 746 Accounts payable 52,272 15,732 109,484 — 177,488 Accrued employee compensation and benefits 34,508 7,243 30,653 — 72,404 Accrued expenses 30,261 15,242 44,411 — 89,914 Dividends payable 8,445 — — — 8,445 Total current liabilities 125,486 38,217 186,145 — 349,848 Deferred income taxes 22,481 — 13,322 — 35,803 Long-term debt, excluding current installments 751,251 — 3,544 — 754,795 Defined benefit pension liability — — 209,470 — 209,470 Deferred compensation 39,476 — 4,843 — 44,319 Other noncurrent liabilities 3,642 5 11,263 — 14,910 Shareholders’ equity: Common stock of $1 par value 27,900 457,950 648,683 (1,106,633 ) 27,900 Additional paid-in capital — 159,414 1,107,536 (1,266,950 ) — Retained earnings 1,874,722 646,749 603,338 (1,250,087 ) 1,874,722 Accumulated other comprehensive income (346,359 ) (64,313 ) (284,663 ) 348,976 (346,359 ) Treasury stock (612,781 ) — — — (612,781 ) Total Valmont Industries, Inc. shareholders’ equity 943,482 1,199,800 2,074,894 (3,274,694 ) 943,482 Noncontrolling interest in consolidated subsidiaries — — 39,104 — 39,104 Total shareholders’ equity 943,482 1,199,800 2,113,998 (3,274,694 ) 982,586 Total liabilities and shareholders’ equity $ 1,885,818 $ 1,238,022 $ 2,542,585 $ (3,274,694 ) $ 2,391,731 |
Condensed Consolidated Statements of Cash Flows | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Twenty-six Weeks Ended July 1, 2017 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 84,643 $ 22,430 $ 42,765 $ (62,555 ) $ 87,283 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 13,048 7,113 21,593 — 41,754 Noncash loss on trading securities — — 188 — 188 Stock-based compensation 4,590 — — — 4,590 Defined benefit pension plan expense — — 314 — 314 Contribution to defined benefit pension plan — — (25,379 ) — (25,379 ) Decrease in restricted cash - pension plan trust — — 12,568 — 12,568 Loss (gain) on sale of property, plant and equipment (20 ) — (44 ) — (64 ) Equity in earnings in nonconsolidated subsidiaries (57,321 ) (5,316 ) — 62,637 — Deferred income taxes 5,539 — 1,808 — 7,347 Changes in assets and liabilities: Receivables (8,746 ) (19,504 ) (21,166 ) — (49,416 ) Inventories (10,866 ) 1,921 (16,087 ) 69 (24,963 ) Prepaid expenses and other assets 259 66 (6,217 ) — (5,892 ) Accounts payable 2,757 (4,841 ) 12,799 — 10,715 Accrued expenses 2,073 (5,652 ) 8,831 — 5,252 Other noncurrent liabilities 874 — 1,099 — 1,973 Income taxes payable (refundable) (7,737 ) 542 9,223 — 2,028 Net cash flows from operating activities 29,093 (3,241 ) 42,295 151 68,298 Cash flows from investing activities: Purchase of property, plant and equipment (8,126 ) (3,351 ) (14,706 ) — (26,183 ) Proceeds from sale of assets 21 11 858 — 890 Proceeds from settlement of net investment hedge 5,123 — — — 5,123 Other, net (8,313 ) 6,604 (607 ) (151 ) (2,467 ) Net cash flows from investing activities (11,295 ) 3,264 (14,455 ) (151 ) (22,637 ) Cash flows from financing activities: Net borrowings under short-term agreements — — (369 ) — (369 ) Principal payments on long-term borrowings — (434 ) — (434 ) Dividends paid (16,913 ) — — — (16,913 ) Dividends to noncontrolling interest — (2,889 ) — (2,889 ) Intercompany dividends 22,662 — (22,662 ) — — Intercompany interest on long-term note — (5,669 ) 5,669 — — Intercompany capital contribution (3,785 ) 3,785 — — — Proceeds from exercises under stock plans 10,168 — — — 10,168 Purchase of common treasury shares - stock plan exercises (3,056 ) — — — (3,056 ) Net cash flows from financing activities 9,076 (1,884 ) (20,685 ) — (13,493 ) Effect of exchange rate changes on cash and cash equivalents — 212 15,894 — 16,106 Net change in cash and cash equivalents 26,874 (1,649 ) 23,049 — 48,274 Cash and cash equivalents—beginning of year 67,225 6,071 326,652 — 399,948 Cash and cash equivalents—end of period $ 94,099 $ 4,422 $ 349,701 $ — $ 448,222 (8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Twenty-six Weeks Ended June 25, 2016 Parent Guarantors Non- Eliminations Total Cash flows from operating activities: Net earnings $ 74,995 $ 26,187 $ 32,539 $ (56,108 ) $ 77,613 Adjustments to reconcile net earnings to net cash flows from operations: Depreciation and amortization 13,705 6,591 20,508 — 40,804 Noncash loss on trading securities — — 1,035 — 1,035 Stock-based compensation 4,201 — — — 4,201 Defined benefit pension plan expense — — 959 — 959 Contribution to defined benefit pension plan — — (712 ) — (712 ) Increase in restricted cash - pension plan trust — — (13,652 ) — (13,652 ) Loss (gain) on sale of property, plant and equipment (6 ) 60 1,020 — 1,074 Equity in earnings in nonconsolidated subsidiaries (47,218 ) (7,859 ) — 55,077 — Deferred income taxes 3,487 — (1,272 ) — 2,215 Changes in assets and liabilities: Receivables 386 8,185 (5,629 ) — 2,942 Inventories (8,757 ) (164 ) (21,974 ) 1,560 (29,335 ) Prepaid expenses (1,504 ) 35 (3,390 ) — (4,859 ) Accounts payable (13,469 ) (79 ) 14,978 — 1,430 Accrued expenses (4,040 ) (6,158 ) (3,438 ) — (13,636 ) Other noncurrent liabilities 868 5 (546 ) — 327 Income taxes payable (refundable) 19,033 (16,499 ) 6,982 — 9,516 Net cash flows from operating activities 41,681 10,304 27,408 529 79,922 Cash flows from investing activities: Purchase of property, plant and equipment (1,240 ) (13,167 ) (11,612 ) — (26,019 ) Proceeds from sale of assets 58 141 1,628 — 1,827 Other, net 918 2,641 (4,638 ) (529 ) (1,608 ) Net cash flows from investing activities (264 ) (10,385 ) (14,622 ) (529 ) (25,800 ) Cash flows from financing activities: Net borrowings under short-term agreements — — 2,593 — 2,593 Principal payments on long-term borrowings (215 ) — (444 ) — (659 ) Dividends paid (17,098 ) — — — (17,098 ) Dividends to noncontrolling interest — — (1,923 ) — (1,923 ) Purchase of noncontrolling interest (137 ) — (10,872 ) — (11,009 ) Proceeds from exercises under stock plans 5,975 — — — 5,975 Purchase of treasury shares (28,621 ) — — — (28,621 ) Purchase of common treasury shares - stock plan exercises (1,453 ) — — — (1,453 ) Net cash flows from financing activities (41,549 ) — (10,646 ) — (52,195 ) Effect of exchange rate changes on cash and cash equivalents — 95 (6,750 ) — (6,655 ) Net change in cash and cash equivalents (132 ) 14 (4,610 ) — (4,728 ) Cash and cash equivalents—beginning of year 62,281 4,008 282,785 — 349,074 Cash and cash equivalents—end of period $ 62,149 $ 4,022 $ 278,175 $ — $ 344,346 |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventories (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Inventory valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market (as a percent) | 35.00% | 38.00% |
Excess of replacement cost of inventories over the LIFO value | $ 39,260 | $ 38,047 |
Inventory, Net [Abstract] | ||
Raw materials and purchased parts | 163,214 | 143,659 |
Work-in-process | 33,543 | 27,291 |
Finished goods and manufactured goods | 225,151 | 217,125 |
Subtotal | 421,908 | 388,075 |
Less: LIFO reserve | 39,260 | 38,047 |
Net inventory | $ 382,648 | $ 350,028 |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Accounting Policies [Abstract] | ||||
United States | $ 50,773 | $ 44,240 | $ 86,197 | $ 83,840 |
Foreign | 17,634 | 18,403 | 37,534 | 29,247 |
Earnings before income taxes | $ 68,407 | $ 62,643 | $ 123,731 | $ 113,087 |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Pension Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Net periodic (benefit) expense: | ||||
Interest cost | $ 4,478 | $ 6,659 | $ 8,799 | $ 13,042 |
Expected return on plan assets | (5,054) | (6,084) | (9,931) | (12,083) |
Amortization of actuarial loss | 736 | 0 | 1,446 | 0 |
Net periodic expense | $ 160 | $ 575 | $ 314 | $ 959 |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock Plans (Details) - Stock Option Plans - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Shares of common stock available for issuance (in shares) | 700,078 | 700,078 | ||
Compensation expense | $ 1,289 | $ 1,468 | $ 2,578 | $ 2,959 |
Income tax benefits | $ 496 | $ 565 | $ 993 | $ 1,139 |
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Vesting period of options | 3 years | |||
Expiration period of grant | 6 years | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Vesting period of options | 7 years | |||
Expiration period of grant | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
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 | $ 40,663 | $ 37,800 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 0 | 0 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 40,663 | 37,800 |
Delta E M D Pty Ltd | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of remaining ownership | 1,931 | 2,016 |
Valmont Deferred Compensation Plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets recorded for the investments held | $ 38,732 | $ 35,784 |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Comprehensive Income (Details) $ in Thousands | 6 Months Ended |
Jul. 01, 2017USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at the beginning of the period | $ (346,359) |
Balance at the end of the period | (305,799) |
Foreign Currency Translation Adjustments | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at the beginning of the period | (251,228) |
Current-period comprehensive income (loss) | 41,599 |
Balance at the end of the period | (209,629) |
Gain on Hedging Activities | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at the beginning of the period | 7,978 |
Current-period comprehensive income (loss) | (1,039) |
Balance at the end of the period | 6,939 |
Defined Benefit Pension Plan | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at the beginning of the period | (103,109) |
Current-period comprehensive income (loss) | 0 |
Balance at the end of the period | (103,109) |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance at the beginning of the period | (346,359) |
Current-period comprehensive income (loss) | 40,560 |
Balance at the end of the period | $ (305,799) |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net Investment Hedge (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Jun. 25, 2016 |
Derivative [Line Items] | ||
Realized gain on net investment hedge, before tax | $ 5,123 | |
Realized gain on net investment hedge, net of tax | $ 3,150 | |
Foreign Currency Forward Contract | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 44,000 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||
Jun. 30, 2016 | Apr. 30, 2016 | Jul. 01, 2017 | Dec. 31, 2016 | May 31, 2016 | |
Acquisitions | |||||
Goodwill | $ 329,708 | $ 321,110 | |||
Ownership percentage by noncontrolling owners | 10.00% | ||||
IGC Galvanizing Industries (M) Sdn Bhd | |||||
Acquisitions | |||||
Percentage acquired | 30.00% | ||||
Consideration transfered | $ 5,841 | ||||
Valmont SM | |||||
Acquisitions | |||||
Percentage acquired | 5.20% | ||||
Consideration transfered | $ 5,168 |
RESTRUCTURING ACTIVITIES - Narr
RESTRUCTURING ACTIVITIES - Narrative (Details) | 6 Months Ended |
Jun. 27, 2015USD ($) | |
Broad Restructuring Plan | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 4,581 |
RESTRUCTURING ACTIVITIES - Pre-
RESTRUCTURING ACTIVITIES - Pre-tax Restructuring Expenses Recognized (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 27, 2015 | Dec. 31, 2016 | |
2016 Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 7,825 | |
2016 Plan | Cost of Sales | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 5,045 | |
2016 Plan | Selling, General and Administrative Expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2,780 | |
2016 Plan | Asset impairments/net loss on disposals | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 1,099 | |
Broad Restructuring Plan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 4,581 |
RESTRUCTURING ACTIVITIES - Liab
RESTRUCTURING ACTIVITIES - Liabilities Recorded For The Restructuring Plan (Details) $ in Thousands | 6 Months Ended |
Jul. 01, 2017USD ($) | |
Restructuring Cost and Reserve [Roll Forward] | |
Beginning balance | $ 6,178 |
Recognized Restructuring Expense | 0 |
Costs Paid or Otherwise Settled | (3,823) |
Ending balance | 2,355 |
Severance | |
Restructuring Cost and Reserve [Roll Forward] | |
Beginning balance | 1,597 |
Recognized Restructuring Expense | 0 |
Costs Paid or Otherwise Settled | (1,597) |
Ending balance | 0 |
Other cash restructuring expenses | |
Restructuring Cost and Reserve [Roll Forward] | |
Beginning balance | 4,581 |
Recognized Restructuring Expense | 0 |
Costs Paid or Otherwise Settled | (2,226) |
Ending balance | $ 2,355 |
GOODWILL AND INTANGIBLE ASSET36
GOODWILL AND INTANGIBLE ASSETS - Amortized Intangible Assets - (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | Dec. 31, 2016 | |
Components of amortized intangible assets | |||||
Gross Carrying Amount | $ 210,383 | $ 210,383 | $ 205,079 | ||
Accumulated Amortization | 132,097 | 132,097 | 121,486 | ||
Amortization expense for intangible assets | 3,903 | $ 4,078 | 7,767 | $ 8,073 | |
Estimated amortization expense | |||||
2,015 | 15,498 | 15,498 | |||
2,016 | 13,840 | 13,840 | |||
2,017 | 13,079 | 13,079 | |||
2,018 | 11,989 | 11,989 | |||
2,019 | 9,903 | 9,903 | |||
Customer Relationships | |||||
Components of amortized intangible assets | |||||
Gross Carrying Amount | 196,201 | 196,201 | 191,316 | ||
Accumulated Amortization | 121,382 | $ 121,382 | $ 111,342 | ||
Weighted Average Life | 13 years | 13 years | |||
Proprietary Software & Database | |||||
Components of amortized intangible assets | |||||
Gross Carrying Amount | 3,659 | $ 3,659 | $ 3,616 | ||
Accumulated Amortization | 3,083 | $ 3,083 | $ 3,056 | ||
Weighted Average Life | 8 years | 8 years | |||
Patents & Proprietary Technology | |||||
Components of amortized intangible assets | |||||
Gross Carrying Amount | 6,581 | $ 6,581 | $ 6,434 | ||
Accumulated Amortization | 3,720 | $ 3,720 | $ 3,420 | ||
Weighted Average Life | 11 years | 11 years | |||
Other | |||||
Components of amortized intangible assets | |||||
Gross Carrying Amount | 3,942 | $ 3,942 | $ 3,713 | ||
Accumulated Amortization | $ 3,912 | $ 3,912 | $ 3,668 | ||
Weighted Average Life | 3 years | 3 years |
GOODWILL AND INTANGIBLE ASSET37
GOODWILL AND INTANGIBLE ASSETS - Carrying Values of Trade Names - (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 |
Webforge | ||
Non-amortized intangible assets | ||
Carrying value of trade names | $ 9,101 | $ 8,624 |
Valmont SM | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 9,525 | 8,765 |
Newmark | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 11,111 | 11,111 |
Ingal EPS/Ingal Civil Products | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 7,420 | 7,032 |
Donhad | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 5,598 | 5,305 |
Shakespeare | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 4,000 | 4,000 |
Industrial Galvanizers | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 2,323 | 2,201 |
Other | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 14,193 | 13,747 |
Trade Names | ||
Non-amortized intangible assets | ||
Carrying value of trade names | $ 63,271 | $ 60,785 |
GOODWILL AND INTANGIBLE ASSET38
GOODWILL AND INTANGIBLE ASSETS - Impairment (Details) - USD ($) | Jul. 01, 2017 | Dec. 31, 2016 |
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 329,708,000 | $ 321,110,000 |
ESS | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | 97,199,000 | 94,314,000 |
Energy & Mining | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | 76,840,000 | 72,212,000 |
Coatings Segment | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | 60,052,000 | $ 59,569,000 |
Offshore Structures | Energy & Mining | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Goodwill | $ 14,179 |
GOODWILL AND INTANGIBLE ASSET39
GOODWILL AND INTANGIBLE ASSETS - Carrying Amount of Goodwill by Segment (Details) $ in Thousands | 6 Months Ended |
Jul. 01, 2017USD ($) | |
Carrying amount of goodwill | |
Balance at the beginning of the period | $ 321,110 |
Foreign currency translation | 8,598 |
Balance at the end of the period | 329,708 |
Engineered Support Structures Segment | |
Carrying amount of goodwill | |
Balance at the beginning of the period | 94,314 |
Foreign currency translation | 2,885 |
Balance at the end of the period | 97,199 |
Energy and Mining Segment | |
Carrying amount of goodwill | |
Balance at the beginning of the period | 72,212 |
Foreign currency translation | 4,628 |
Balance at the end of the period | 76,840 |
Utility Support Structures Segment | |
Carrying amount of goodwill | |
Balance at the beginning of the period | 75,404 |
Foreign currency translation | 0 |
Balance at the end of the period | 75,404 |
Coatings Segment | |
Carrying amount of goodwill | |
Balance at the beginning of the period | 59,569 |
Foreign currency translation | 483 |
Balance at the end of the period | 60,052 |
Irrigation Segment | |
Carrying amount of goodwill | |
Balance at the beginning of the period | 19,611 |
Foreign currency translation | 602 |
Balance at the end of the period | $ 20,213 |
CASH FLOW SUPPLEMENTARY INFOR40
CASH FLOW SUPPLEMENTARY INFORMATION (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 01, 2017 | Jun. 25, 2016 | |
Supplemental Cash Flow Elements [Abstract] | ||
Value of shares acquired under share repurchase program | $ 0 | $ 28,621 |
Supplemental Cash Flow Information [Abstract] | ||
Interest | 22,113 | 22,142 |
Income taxes | $ 26,966 | $ 28,791 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Basic EPS | ||||
Net earnings attributable to Valmont Industries, Inc. | $ 45,664,000 | $ 42,026,000 | $ 84,643,000 | $ 74,995,000 |
Shares outstanding basic (in shares) | 22,517,000 | 22,602,000 | 22,494,000 | 22,651,000 |
Per share amount basic (in dollars per share) | $ 2.03 | $ 1.86 | $ 3.76 | $ 3.31 |
Dilutive Effect of Stock Options | ||||
Dilutive Effect of Stock Options | $ 0 | $ 0 | $ 0 | $ 0 |
Dilutive effect of stock options number of shares (in shares) | 223,000 | 147,000 | 206,000 | 131,000 |
Dilutive effect of stock options (in dollars per share) | $ (0.02) | $ (0.01) | $ (0.03) | $ (0.02) |
Diluted EPS | ||||
Diluted EPS | $ 84,643,000 | $ 74,995,000 | ||
Shares outstanding dilutive (in shares) | 22,740,000 | 22,749,000 | 22,700,000 | 22,782,000 |
Per share amount diluted (in dollars per share) | $ 2.01 | $ 1.85 | $ 3.73 | $ 3.29 |
Antidilutive Securities | ||||
Outstanding stock options with exercise prices exceeding the market price of common stock, excluded from the computation of diluted earnings per share (in shares) | 84,712 | 381,973 |
BUSINESS SEGMENTS (Details)
BUSINESS SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Business Segments | ||||
Net sales | $ 712,737 | $ 640,249 | $ 1,350,210 | $ 1,236,854 |
Operating income | 78,290 | 71,806 | 142,792 | 134,171 |
Inventory Valuation [Member] | ||||
Business Segments | ||||
Operating income | (434) | (3,153) | (1,213) | (1,126) |
Engineered Support Structures Segment | ||||
Business Segments | ||||
Net sales | 201,125 | 195,802 | 361,476 | 361,761 |
Operating income | 20,244 | 20,817 | 29,457 | 33,292 |
Energy and Mining Segment | ||||
Business Segments | ||||
Net sales | 77,207 | 79,283 | 155,179 | 150,074 |
Operating income | 3,941 | 3,341 | 7,778 | 5,243 |
Utility Support Structures Segment | ||||
Business Segments | ||||
Net sales | 183,640 | 151,159 | 358,017 | 295,503 |
Operating income | 20,189 | 17,582 | 42,897 | 32,006 |
Coatings Segment | ||||
Business Segments | ||||
Net sales | 64,600 | 63,412 | 123,932 | 122,180 |
Operating income | 12,108 | 14,023 | 21,514 | 25,436 |
Irrigation Segment | ||||
Business Segments | ||||
Net sales | 186,165 | 150,593 | 351,606 | 307,336 |
Operating income | 34,670 | 31,013 | 64,961 | 59,908 |
Corporate | ||||
Business Segments | ||||
Operating income | (12,428) | (11,817) | (22,602) | (20,588) |
Operating Segment | ||||
Business Segments | ||||
Sales | 747,478 | 663,403 | 1,421,312 | 1,284,438 |
Operating Segment | Engineered Support Structures Segment | ||||
Business Segments | ||||
Sales | 217,581 | 203,916 | 398,139 | 380,887 |
Operating Segment | Engineered Support Structures Segment | Lighting, Traffic, and Roadway Products | ||||
Business Segments | ||||
Sales | 173,768 | 163,191 | 322,850 | 309,493 |
Operating Segment | Engineered Support Structures Segment | Communication Products | ||||
Business Segments | ||||
Sales | 43,813 | 40,725 | 75,289 | 71,394 |
Operating Segment | Energy and Mining Segment | ||||
Business Segments | ||||
Sales | 77,207 | 80,692 | 155,179 | 153,141 |
Operating Segment | Energy and Mining Segment | Offshore Structures | ||||
Business Segments | ||||
Sales | 24,619 | 25,908 | 50,326 | 48,877 |
Operating Segment | Energy and Mining Segment | Grinding Media [Member] | ||||
Business Segments | ||||
Sales | 21,072 | 21,018 | 40,666 | 40,508 |
Operating Segment | Energy and Mining Segment | Access Systems | ||||
Business Segments | ||||
Sales | 31,516 | 33,766 | 64,187 | 63,756 |
Operating Segment | Utility Support Structures Segment | ||||
Business Segments | ||||
Sales | 184,622 | 151,245 | 359,234 | 295,765 |
Operating Segment | Utility Support Structures Segment | Steel | ||||
Business Segments | ||||
Sales | 161,716 | 126,101 | 310,124 | 248,072 |
Operating Segment | Utility Support Structures Segment | Concrete | ||||
Business Segments | ||||
Sales | 22,906 | 25,144 | 49,110 | 47,693 |
Operating Segment | Coatings Segment | ||||
Business Segments | ||||
Sales | 79,781 | 75,298 | 153,249 | 143,879 |
Operating Segment | Irrigation Segment | ||||
Business Segments | ||||
Sales | 188,287 | 152,252 | 355,511 | 310,766 |
Intersegment | ||||
Business Segments | ||||
Sales | 34,741 | 23,154 | 71,102 | 47,584 |
Intersegment | Engineered Support Structures Segment | ||||
Business Segments | ||||
Sales | 16,456 | 8,114 | 36,663 | 19,126 |
Intersegment | Energy and Mining Segment | ||||
Business Segments | ||||
Sales | 0 | 1,409 | 0 | 3,067 |
Intersegment | Utility Support Structures Segment | ||||
Business Segments | ||||
Sales | 982 | 86 | 1,217 | 262 |
Intersegment | Coatings Segment | ||||
Business Segments | ||||
Sales | 15,181 | 11,886 | 29,317 | 21,699 |
Intersegment | Irrigation Segment | ||||
Business Segments | ||||
Sales | $ 2,122 | $ 1,659 | $ 3,905 | $ 3,430 |
GUARANTOR_NON-GUARANTOR FINAN43
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION - Condensed Consolidated Statements of Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
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 | $ 712,737 | $ 640,249 | $ 1,350,210 | $ 1,236,854 |
Cost of sales | 529,457 | 465,132 | 1,002,325 | 900,768 |
Gross profit | 183,280 | 175,117 | 347,885 | 336,086 |
Selling, general and administrative expenses | 104,990 | 103,311 | 205,093 | 201,915 |
Operating income | 78,290 | 71,806 | 142,792 | 134,171 |
Other income (expense): | ||||
Interest expense | (10,818) | (11,122) | (22,122) | (22,176) |
Interest income | 967 | 707 | 1,894 | 1,518 |
Other | (32) | 1,252 | 1,167 | (426) |
Total other income (expenses) | (9,883) | (9,163) | (19,061) | (21,084) |
Earnings before income taxes | 68,407 | 62,643 | 123,731 | 113,087 |
Income tax expense: | ||||
Current | 27,803 | 22,745 | 29,101 | 33,259 |
Deferred income taxes | (6,718) | (3,544) | 7,347 | 2,215 |
Total income tax expense (benefit) | 21,085 | 19,201 | 36,448 | 35,474 |
Earnings before equity in earnings of nonconsolidated subsidiaries | 47,322 | 43,442 | 87,283 | 77,613 |
Equity in earnings of nonconsolidated subsidiaries | 0 | 0 | 0 | 0 |
Net earnings | 47,322 | 43,442 | 87,283 | 77,613 |
Less: Earnings attributable to noncontrolling interests | (1,658) | (1,416) | (2,640) | (2,618) |
Net earnings attributable to Valmont Industries, Inc. | 45,664 | 42,026 | 84,643 | 74,995 |
Eliminations | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net sales | (53,823) | (47,992) | (122,136) | (100,065) |
Cost of sales | (54,610) | (47,025) | (122,207) | (98,505) |
Gross profit | 787 | (967) | 71 | (1,560) |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Operating income | 787 | (967) | 71 | (1,560) |
Other income (expense): | ||||
Interest expense | 3,785 | 0 | 6,051 | 0 |
Interest income | (3,785) | 0 | (6,051) | 0 |
Other | 0 | 0 | 0 | 0 |
Total other income (expenses) | 0 | 0 | 0 | 0 |
Earnings before income taxes | 787 | (967) | 71 | (1,560) |
Income tax expense: | ||||
Current | 233 | (409) | (11) | (529) |
Deferred income taxes | 0 | 0 | 0 | 0 |
Total income tax expense (benefit) | 233 | (409) | (11) | (529) |
Earnings before equity in earnings of nonconsolidated subsidiaries | 554 | (558) | 82 | (1,031) |
Equity in earnings of nonconsolidated subsidiaries | (35,123) | (35,438) | (62,637) | (55,077) |
Net earnings | (34,569) | (35,996) | (62,555) | (56,108) |
Less: Earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings attributable to Valmont Industries, Inc. | (34,569) | (35,996) | (62,555) | (56,108) |
Parent | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net sales | 316,185 | 290,171 | 609,450 | 575,209 |
Cost of sales | 233,535 | 211,675 | 450,021 | 419,536 |
Gross profit | 82,650 | 78,496 | 159,429 | 155,673 |
Selling, general and administrative expenses | 46,922 | 44,530 | 97,139 | 87,024 |
Operating income | 35,728 | 33,966 | 62,290 | 68,649 |
Other income (expense): | ||||
Interest expense | (10,646) | (10,918) | (21,788) | (21,848) |
Interest income | 144 | 46 | 295 | 113 |
Other | 1,167 | 699 | 2,521 | 324 |
Total other income (expenses) | (9,335) | (10,173) | (18,972) | (21,411) |
Earnings before income taxes | 26,393 | 23,793 | 43,318 | 47,238 |
Income tax expense: | ||||
Current | 15,344 | 10,391 | 10,457 | 15,974 |
Deferred income taxes | (5,788) | 1,068 | 5,539 | 3,487 |
Total income tax expense (benefit) | 9,556 | 11,459 | 15,996 | 19,461 |
Earnings before equity in earnings of nonconsolidated subsidiaries | 16,837 | 12,334 | 27,322 | 27,777 |
Equity in earnings of nonconsolidated subsidiaries | 28,827 | 29,692 | 57,321 | 47,218 |
Net earnings | 45,664 | 42,026 | 84,643 | 74,995 |
Less: Earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings attributable to Valmont Industries, Inc. | 45,664 | 42,026 | 84,643 | 74,995 |
Guarantors | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net sales | 122,359 | 97,159 | 239,584 | 188,685 |
Cost of sales | 91,374 | 71,234 | 182,863 | 139,096 |
Gross profit | 30,985 | 25,925 | 56,721 | 49,589 |
Selling, general and administrative expenses | 11,849 | 11,080 | 23,509 | 22,510 |
Operating income | 19,136 | 14,845 | 33,212 | 27,079 |
Other income (expense): | ||||
Interest expense | (3,785) | (3) | (6,051) | (3) |
Interest income | 10 | 14 | 24 | 39 |
Other | 15 | 15 | 31 | 27 |
Total other income (expenses) | (3,760) | 26 | (5,996) | 63 |
Earnings before income taxes | 15,376 | 14,871 | 27,216 | 27,142 |
Income tax expense: | ||||
Current | 4,782 | 6,242 | 10,102 | 8,814 |
Deferred income taxes | 0 | (2,149) | 0 | 0 |
Total income tax expense (benefit) | 4,782 | 4,093 | 10,102 | 8,814 |
Earnings before equity in earnings of nonconsolidated subsidiaries | 10,594 | 10,778 | 17,114 | 18,328 |
Equity in earnings of nonconsolidated subsidiaries | 6,296 | 5,746 | 5,316 | 7,859 |
Net earnings | 16,890 | 16,524 | 22,430 | 26,187 |
Less: Earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net earnings attributable to Valmont Industries, Inc. | 16,890 | 16,524 | 22,430 | 26,187 |
Non- Guarantors | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net sales | 328,016 | 300,911 | 623,312 | 573,025 |
Cost of sales | 259,158 | 229,248 | 491,648 | 440,641 |
Gross profit | 68,858 | 71,663 | 131,664 | 132,384 |
Selling, general and administrative expenses | 46,219 | 47,701 | 84,445 | 92,381 |
Operating income | 22,639 | 23,962 | 47,219 | 40,003 |
Other income (expense): | ||||
Interest expense | (172) | (201) | (334) | (325) |
Interest income | 4,598 | 647 | 7,626 | 1,366 |
Other | (1,214) | 538 | (1,385) | (777) |
Total other income (expenses) | 3,212 | 984 | 5,907 | 264 |
Earnings before income taxes | 25,851 | 24,946 | 53,126 | 40,267 |
Income tax expense: | ||||
Current | 7,444 | 6,521 | 8,553 | 9,000 |
Deferred income taxes | (930) | (2,463) | 1,808 | (1,272) |
Total income tax expense (benefit) | 6,514 | 4,058 | 10,361 | 7,728 |
Earnings before equity in earnings of nonconsolidated subsidiaries | 19,337 | 20,888 | 42,765 | 32,539 |
Equity in earnings of nonconsolidated subsidiaries | 0 | 0 | 0 | 0 |
Net earnings | 19,337 | 20,888 | 42,765 | 32,539 |
Less: Earnings attributable to noncontrolling interests | (1,658) | (1,416) | (2,640) | (2,618) |
Net earnings attributable to Valmont Industries, Inc. | $ 17,679 | $ 19,472 | $ 40,125 | $ 29,921 |
GUARANTOR_NON-GUARANTOR FINAN44
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION - Condensed Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net earnings | $ 47,322 | $ 43,442 | $ 87,283 | $ 77,613 |
Foreign currency translation adjustments: | ||||
Unrealized translation gain (loss) | 21,551 | (2,296) | 40,941 | 217 |
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | (550) | 0 | (1,076) | 0 |
Gain/(loss) on hedging activities: | ||||
Amortization cost included in interest expense | 18 | 19 | 37 | 38 |
Equity in other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 21,019 | (2,277) | 39,902 | 255 |
Comprehensive income | 68,341 | 41,165 | 127,185 | 77,868 |
Comprehensive loss (income) attributable to noncontrolling interests | (2,223) | (1,787) | (1,982) | (4,114) |
Comprehensive income attributable to Valmont Industries, Inc. | 66,118 | 39,378 | 125,203 | 73,754 |
Eliminations | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net earnings | (34,569) | (35,996) | (62,555) | (56,108) |
Foreign currency translation adjustments: | ||||
Unrealized translation gain (loss) | 0 | 0 | 0 | 0 |
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | 0 | 0 | ||
Gain/(loss) on hedging activities: | ||||
Amortization cost included in interest expense | 0 | 0 | 0 | 0 |
Equity in other comprehensive income | (20,986) | 5,592 | (41,599) | 1,279 |
Other comprehensive income (loss) | (20,986) | 5,592 | (41,599) | 1,279 |
Comprehensive income | (55,555) | (30,404) | (104,154) | (54,829) |
Comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Valmont Industries, Inc. | (55,555) | (30,404) | (104,154) | (54,829) |
Parent | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net earnings | 45,664 | 42,026 | 84,643 | 74,995 |
Foreign currency translation adjustments: | ||||
Unrealized translation gain (loss) | 0 | 2,925 | 0 | 2,925 |
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | (550) | (1,076) | ||
Gain/(loss) on hedging activities: | ||||
Amortization cost included in interest expense | 18 | 19 | 37 | 38 |
Equity in other comprehensive income | 20,986 | (5,592) | 41,599 | (1,279) |
Other comprehensive income (loss) | 20,454 | (2,648) | 40,560 | 1,684 |
Comprehensive income | 66,118 | 39,378 | 125,203 | 76,679 |
Comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Valmont Industries, Inc. | 66,118 | 39,378 | 125,203 | 76,679 |
Guarantors | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net earnings | 16,890 | 16,524 | 22,430 | 26,187 |
Foreign currency translation adjustments: | ||||
Unrealized translation gain (loss) | (1,359) | 29 | 68,024 | (149) |
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | 0 | |||
Gain/(loss) on hedging activities: | ||||
Amortization cost included in interest expense | 0 | 0 | 0 | 0 |
Equity in other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (1,359) | 29 | 68,024 | (149) |
Comprehensive income | 15,531 | 16,553 | 90,454 | 26,038 |
Comprehensive loss (income) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Valmont Industries, Inc. | 15,531 | 16,553 | 90,454 | 26,038 |
Non- Guarantors | ||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | ||||
Net earnings | 19,337 | 20,888 | 42,765 | 32,539 |
Foreign currency translation adjustments: | ||||
Unrealized translation gain (loss) | 22,910 | (5,250) | (27,083) | (2,559) |
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | 0 | 0 | ||
Gain/(loss) on hedging activities: | ||||
Amortization cost included in interest expense | 0 | 0 | 0 | 0 |
Equity in other comprehensive income | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 22,910 | (5,250) | (27,083) | (2,559) |
Comprehensive income | 42,247 | 15,638 | 15,682 | 29,980 |
Comprehensive loss (income) attributable to noncontrolling interests | (2,223) | (1,787) | (1,982) | (4,114) |
Comprehensive income attributable to Valmont Industries, Inc. | $ 40,024 | $ 13,851 | $ 13,700 | $ 25,866 |
GUARANTOR_NON-GUARANTOR FINAN45
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION - Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Dec. 31, 2016 | Jun. 25, 2016 | Dec. 26, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 448,222 | $ 399,948 | $ 344,346 | $ 349,074 |
Receivables, net | 496,962 | 439,342 | ||
Inventories | 382,648 | 350,028 | ||
Prepaid expenses, restricted cash, and other assets | 43,545 | 57,297 | ||
Refundable income taxes | 4,830 | 6,601 | ||
Total current assets | 1,376,207 | 1,253,216 | ||
Property, plant and equipment, at cost | 1,148,482 | 1,105,736 | ||
Less accumulated depreciation and amortization | 628,375 | 587,401 | ||
Net property, plant and equipment | 520,107 | 518,335 | ||
Goodwill | 329,708 | 321,110 | ||
Other intangible assets | 141,557 | 144,378 | ||
Investment in subsidiaries and intercompany accounts | 0 | 0 | ||
Other assets | 155,583 | 154,692 | ||
Total assets | 2,523,162 | 2,391,731 | ||
Current liabilities: | ||||
Current installments of long-term debt | 921 | 851 | ||
Notes payable to banks | 376 | 746 | ||
Accounts payable | 193,087 | 177,488 | ||
Accrued employee compensation and benefits | 68,944 | 72,404 | ||
Accrued expenses | 102,247 | 89,914 | ||
Dividends payable | 8,472 | 8,445 | ||
Total current liabilities | (374,047) | (349,848) | ||
Deferred income taxes | 32,642 | 35,803 | ||
Long-term debt, excluding current installments | 754,436 | 754,795 | ||
Defined benefit pension liability | 194,517 | 209,470 | ||
Deferred compensation | 47,799 | 44,319 | ||
Other noncurrent liabilities | 17,275 | 14,910 | ||
Shareholders’ equity: | ||||
Common stock of $1 par value | 27,900 | 27,900 | ||
Additional paid-in capital | 0 | 0 | ||
Retained earnings | 1,945,874 | 1,874,722 | ||
Accumulated other comprehensive loss | (305,799) | (346,359) | ||
Treasury stock | (603,726) | (612,781) | ||
Total Valmont Industries, Inc. shareholders’ equity | 1,064,249 | 943,482 | ||
Noncontrolling interest in consolidated subsidiaries | 38,197 | 39,104 | ||
Total shareholders’ equity | 1,102,446 | 982,586 | 994,171 | 965,211 |
Total liabilities and shareholders’ equity | 2,523,162 | 2,391,731 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables, net | 0 | 0 | ||
Inventories | (4,222) | (4,154) | ||
Prepaid expenses, restricted cash, and other assets | 0 | 0 | ||
Refundable income taxes | 0 | 0 | ||
Total current assets | (4,222) | (4,154) | ||
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 | (3,544,140) | (3,270,540) | ||
Other assets | 0 | 0 | ||
Total assets | (3,548,362) | (3,274,694) | ||
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 | (188,855) | 0 | ||
Defined benefit pension liability | 0 | 0 | ||
Deferred compensation | 0 | 0 | ||
Other noncurrent liabilities | 0 | 0 | ||
Shareholders’ equity: | ||||
Common stock of $1 par value | (1,106,632) | (1,106,633) | ||
Additional paid-in capital | (1,270,735) | (1,266,950) | ||
Retained earnings | (1,286,973) | (1,250,087) | ||
Accumulated other comprehensive loss | 304,833 | 348,976 | ||
Treasury stock | 0 | 0 | ||
Total Valmont Industries, Inc. shareholders’ equity | (3,359,507) | (3,274,694) | ||
Noncontrolling interest in consolidated subsidiaries | 0 | 0 | ||
Total shareholders’ equity | (3,359,507) | (3,274,694) | ||
Total liabilities and shareholders’ equity | (3,548,362) | (3,274,694) | ||
Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 94,099 | 67,225 | 62,149 | 62,281 |
Receivables, net | 144,846 | 134,351 | ||
Inventories | 137,534 | 126,669 | ||
Prepaid expenses, restricted cash, and other assets | 6,141 | 13,271 | ||
Refundable income taxes | 4,830 | 6,601 | ||
Total current assets | 387,450 | 348,117 | ||
Property, plant and equipment, at cost | 554,027 | 547,076 | ||
Less accumulated depreciation and amortization | 364,591 | 352,960 | ||
Net property, plant and equipment | 189,436 | 194,116 | ||
Goodwill | 20,108 | 20,108 | ||
Other intangible assets | 157 | 184 | ||
Investment in subsidiaries and intercompany accounts | 1,367,336 | 1,279,413 | ||
Other assets | 47,042 | 43,880 | ||
Total assets | 2,011,529 | 1,885,818 | ||
Current liabilities: | ||||
Current installments of long-term debt | 0 | 0 | ||
Notes payable to banks | 0 | 0 | ||
Accounts payable | 55,029 | 52,272 | ||
Accrued employee compensation and benefits | 33,624 | 34,508 | ||
Accrued expenses | 33,217 | 30,261 | ||
Dividends payable | 8,472 | 8,445 | ||
Total current liabilities | (130,342) | (125,486) | ||
Deferred income taxes | 18,958 | 22,481 | ||
Long-term debt, excluding current installments | 751,041 | 751,251 | ||
Defined benefit pension liability | 0 | 0 | ||
Deferred compensation | 42,492 | 39,476 | ||
Other noncurrent liabilities | 4,447 | 3,642 | ||
Shareholders’ equity: | ||||
Common stock of $1 par value | 27,900 | 27,900 | ||
Additional paid-in capital | 0 | 0 | ||
Retained earnings | 1,945,874 | 1,874,722 | ||
Accumulated other comprehensive loss | (305,799) | (346,359) | ||
Treasury stock | (603,726) | (612,781) | ||
Total Valmont Industries, Inc. shareholders’ equity | 1,064,249 | 943,482 | ||
Noncontrolling interest in consolidated subsidiaries | 0 | 0 | ||
Total shareholders’ equity | 1,064,249 | 943,482 | ||
Total liabilities and shareholders’ equity | 2,011,529 | 1,885,818 | ||
Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 4,422 | 6,071 | 4,022 | 4,008 |
Receivables, net | 80,026 | 60,522 | ||
Inventories | 43,536 | 45,457 | ||
Prepaid expenses, restricted cash, and other assets | 814 | 880 | ||
Refundable income taxes | 0 | 0 | ||
Total current assets | 128,798 | 112,930 | ||
Property, plant and equipment, at cost | 156,700 | 153,596 | ||
Less accumulated depreciation and amortization | 81,154 | 76,776 | ||
Net property, plant and equipment | 75,546 | 76,820 | ||
Goodwill | 110,562 | 110,561 | ||
Other intangible assets | 33,454 | 35,953 | ||
Investment in subsidiaries and intercompany accounts | 1,155,599 | 901,758 | ||
Other assets | 0 | 0 | ||
Total assets | 1,503,959 | 1,238,022 | ||
Current liabilities: | ||||
Current installments of long-term debt | 0 | 0 | ||
Notes payable to banks | 0 | 0 | ||
Accounts payable | 10,891 | 15,732 | ||
Accrued employee compensation and benefits | 6,088 | 7,243 | ||
Accrued expenses | 10,745 | 15,242 | ||
Dividends payable | 0 | 0 | ||
Total current liabilities | (27,724) | (38,217) | ||
Deferred income taxes | 0 | 0 | ||
Long-term debt, excluding current installments | 182,193 | 0 | ||
Defined benefit pension liability | 0 | 0 | ||
Deferred compensation | 0 | 0 | ||
Other noncurrent liabilities | 5 | 5 | ||
Shareholders’ equity: | ||||
Common stock of $1 par value | 457,950 | 457,950 | ||
Additional paid-in capital | 163,199 | 159,414 | ||
Retained earnings | 669,177 | 646,749 | ||
Accumulated other comprehensive loss | 3,711 | (64,313) | ||
Treasury stock | 0 | 0 | ||
Total Valmont Industries, Inc. shareholders’ equity | 1,294,037 | 1,199,800 | ||
Noncontrolling interest in consolidated subsidiaries | 0 | 0 | ||
Total shareholders’ equity | 1,294,037 | 1,199,800 | ||
Total liabilities and shareholders’ equity | 1,503,959 | 1,238,022 | ||
Non- Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 349,701 | 326,652 | $ 278,175 | $ 282,785 |
Receivables, net | 272,090 | 244,469 | ||
Inventories | 205,800 | 182,056 | ||
Prepaid expenses, restricted cash, and other assets | 36,590 | 43,146 | ||
Refundable income taxes | 0 | 0 | ||
Total current assets | 864,181 | 796,323 | ||
Property, plant and equipment, at cost | 437,755 | 405,064 | ||
Less accumulated depreciation and amortization | 182,630 | 157,665 | ||
Net property, plant and equipment | 255,125 | 247,399 | ||
Goodwill | 199,038 | 190,441 | ||
Other intangible assets | 107,946 | 108,241 | ||
Investment in subsidiaries and intercompany accounts | 1,021,205 | 1,089,369 | ||
Other assets | 108,541 | 110,812 | ||
Total assets | 2,556,036 | 2,542,585 | ||
Current liabilities: | ||||
Current installments of long-term debt | 921 | 851 | ||
Notes payable to banks | 376 | 746 | ||
Accounts payable | 127,167 | 109,484 | ||
Accrued employee compensation and benefits | 29,232 | 30,653 | ||
Accrued expenses | 58,285 | 44,411 | ||
Dividends payable | 0 | 0 | ||
Total current liabilities | (215,981) | (186,145) | ||
Deferred income taxes | 13,684 | 13,322 | ||
Long-term debt, excluding current installments | 10,057 | 3,544 | ||
Defined benefit pension liability | 194,517 | 209,470 | ||
Deferred compensation | 5,307 | 4,843 | ||
Other noncurrent liabilities | 12,823 | 11,263 | ||
Shareholders’ equity: | ||||
Common stock of $1 par value | 648,682 | 648,683 | ||
Additional paid-in capital | 1,107,536 | 1,107,536 | ||
Retained earnings | 617,796 | 603,338 | ||
Accumulated other comprehensive loss | (308,544) | (284,663) | ||
Treasury stock | 0 | 0 | ||
Total Valmont Industries, Inc. shareholders’ equity | 2,065,470 | 2,074,894 | ||
Noncontrolling interest in consolidated subsidiaries | 38,197 | 39,104 | ||
Total shareholders’ equity | 2,103,667 | 2,113,998 | ||
Total liabilities and shareholders’ equity | $ 2,556,036 | $ 2,542,585 |
GUARANTOR_NON-GUARANTOR FINAN46
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION - Condensed Consolidated Balance Sheets - Additional Information (Details) - $ / shares | Jul. 01, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
GUARANTOR_NON-GUARANTOR FINAN47
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION - Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 01, 2017 | Jun. 25, 2016 | Jul. 01, 2017 | Jun. 25, 2016 | |
Cash flows from operating activities: | ||||
Net earnings | $ 47,322 | $ 43,442 | $ 87,283 | $ 77,613 |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 41,754 | 40,804 | ||
Noncash loss on trading securities | 188 | 1,035 | ||
Stock-based compensation | 4,590 | 4,201 | ||
Defined benefit pension plan expense | 314 | 959 | ||
Contribution to defined benefit pension plan | (25,379) | (712) | ||
Change in restricted cash - pension plan trust | 12,568 | (13,652) | ||
(Gain)/loss on sale of property, plant and equipment | (64) | 1,074 | ||
Equity in earnings in nonconsolidated subsidiaries | 0 | 0 | 0 | 0 |
Deferred income taxes | (6,718) | (3,544) | 7,347 | 2,215 |
Changes in assets and liabilities: | ||||
Receivables | (49,416) | 2,942 | ||
Inventories | (24,963) | (29,335) | ||
Prepaid expenses and other assets | (5,892) | (4,859) | ||
Accounts payable | 10,715 | 1,430 | ||
Accrued expenses | 5,252 | (13,636) | ||
Other noncurrent liabilities | 1,973 | 327 | ||
Income taxes payable (refundable) | 2,028 | 9,516 | ||
Net cash flows from operating activities | 68,298 | 79,922 | ||
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (26,183) | (26,019) | ||
Proceeds from sale of assets | 890 | 1,827 | ||
Proceeds from settlement of net investment hedge | 5,123 | 0 | ||
Other, net | (2,467) | (1,608) | ||
Net cash flows from investing activities | (22,637) | (25,800) | ||
Cash flows from financing activities: | ||||
Net borrowings under short-term agreements | (369) | 2,593 | ||
Principal payments on long-term borrowings | (434) | (659) | ||
Dividends paid | (16,913) | (17,098) | ||
Dividends to noncontrolling interest | 0 | |||
Intercompany capital contribution | 0 | |||
Dividends to noncontrolling interest | (2,889) | (1,923) | ||
Purchase of noncontrolling interest | 0 | (11,009) | ||
Intercompany dividends | 0 | |||
Proceeds from exercises under stock plans | 10,168 | 5,975 | ||
Purchase of treasury shares | 0 | (28,621) | ||
Purchase of common treasury shares - stock plan exercises | (3,056) | (1,453) | ||
Net cash flows from financing activities | (13,493) | (52,195) | ||
Effect of exchange rate changes on cash and cash equivalents | 16,106 | (6,655) | ||
Net change in cash and cash equivalents | 48,274 | (4,728) | ||
Cash and cash equivalents—beginning of year | 399,948 | 349,074 | ||
Cash and cash equivalents—end of period | 448,222 | 344,346 | 448,222 | 344,346 |
Eliminations | ||||
Cash flows from operating activities: | ||||
Net earnings | (34,569) | (35,996) | (62,555) | (56,108) |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 0 | 0 | ||
Noncash loss on trading securities | 0 | 0 | ||
Stock-based compensation | 0 | 0 | ||
Defined benefit pension plan expense | 0 | 0 | ||
Contribution to defined benefit pension plan | 0 | 0 | ||
Change in restricted cash - pension plan trust | 0 | 0 | ||
(Gain)/loss on sale of property, plant and equipment | 0 | 0 | ||
Equity in earnings in nonconsolidated subsidiaries | 35,123 | 35,438 | 62,637 | 55,077 |
Deferred income taxes | 0 | 0 | 0 | 0 |
Changes in assets and liabilities: | ||||
Receivables | 0 | 0 | ||
Inventories | 69 | 1,560 | ||
Prepaid expenses and other assets | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses | 0 | 0 | ||
Other noncurrent liabilities | 0 | 0 | ||
Income taxes payable (refundable) | 0 | 0 | ||
Net cash flows from operating activities | 151 | 529 | ||
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | 0 | 0 | ||
Proceeds from sale of assets | 0 | 0 | ||
Proceeds from settlement of net investment hedge | 0 | |||
Other, net | (151) | (529) | ||
Net cash flows from investing activities | (151) | (529) | ||
Cash flows from financing activities: | ||||
Net borrowings under short-term agreements | 0 | 0 | ||
Principal payments on long-term borrowings | 0 | 0 | ||
Dividends paid | 0 | 0 | ||
Dividends to noncontrolling interest | 0 | |||
Intercompany capital contribution | 0 | |||
Dividends to noncontrolling interest | 0 | 0 | ||
Purchase of noncontrolling interest | 0 | |||
Intercompany dividends | 0 | |||
Proceeds from exercises under stock plans | 0 | 0 | ||
Purchase of treasury shares | 0 | |||
Purchase of common treasury shares - stock plan exercises | 0 | 0 | ||
Net cash flows from financing activities | 0 | 0 | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net change in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents—beginning of year | 0 | 0 | ||
Cash and cash equivalents—end of period | 0 | 0 | 0 | 0 |
Parent | ||||
Cash flows from operating activities: | ||||
Net earnings | 45,664 | 42,026 | 84,643 | 74,995 |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 13,048 | 13,705 | ||
Noncash loss on trading securities | 0 | 0 | ||
Stock-based compensation | 4,590 | 4,201 | ||
Defined benefit pension plan expense | 0 | 0 | ||
Contribution to defined benefit pension plan | 0 | 0 | ||
Change in restricted cash - pension plan trust | 0 | 0 | ||
(Gain)/loss on sale of property, plant and equipment | (20) | (6) | ||
Equity in earnings in nonconsolidated subsidiaries | (28,827) | (29,692) | (57,321) | (47,218) |
Deferred income taxes | (5,788) | 1,068 | 5,539 | 3,487 |
Changes in assets and liabilities: | ||||
Receivables | (8,746) | 386 | ||
Inventories | (10,866) | (8,757) | ||
Prepaid expenses and other assets | 259 | (1,504) | ||
Accounts payable | 2,757 | (13,469) | ||
Accrued expenses | 2,073 | (4,040) | ||
Other noncurrent liabilities | 874 | 868 | ||
Income taxes payable (refundable) | (7,737) | 19,033 | ||
Net cash flows from operating activities | 29,093 | 41,681 | ||
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (8,126) | (1,240) | ||
Proceeds from sale of assets | 21 | 58 | ||
Proceeds from settlement of net investment hedge | 5,123 | |||
Other, net | (8,313) | 918 | ||
Net cash flows from investing activities | (11,295) | (264) | ||
Cash flows from financing activities: | ||||
Net borrowings under short-term agreements | 0 | 0 | ||
Principal payments on long-term borrowings | (215) | |||
Dividends paid | (16,913) | (17,098) | ||
Dividends to noncontrolling interest | 0 | |||
Intercompany capital contribution | (3,785) | |||
Dividends to noncontrolling interest | 0 | 0 | ||
Purchase of noncontrolling interest | (137) | |||
Intercompany dividends | (22,662) | |||
Proceeds from exercises under stock plans | 10,168 | 5,975 | ||
Purchase of treasury shares | (28,621) | |||
Purchase of common treasury shares - stock plan exercises | (3,056) | (1,453) | ||
Net cash flows from financing activities | 9,076 | (41,549) | ||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net change in cash and cash equivalents | 26,874 | (132) | ||
Cash and cash equivalents—beginning of year | 67,225 | 62,281 | ||
Cash and cash equivalents—end of period | 94,099 | 62,149 | 94,099 | 62,149 |
Guarantors | ||||
Cash flows from operating activities: | ||||
Net earnings | 16,890 | 16,524 | 22,430 | 26,187 |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 7,113 | 6,591 | ||
Noncash loss on trading securities | 0 | 0 | ||
Stock-based compensation | 0 | 0 | ||
Defined benefit pension plan expense | 0 | 0 | ||
Contribution to defined benefit pension plan | 0 | 0 | ||
Change in restricted cash - pension plan trust | 0 | 0 | ||
(Gain)/loss on sale of property, plant and equipment | 0 | 60 | ||
Equity in earnings in nonconsolidated subsidiaries | (6,296) | (5,746) | (5,316) | (7,859) |
Deferred income taxes | 0 | (2,149) | 0 | 0 |
Changes in assets and liabilities: | ||||
Receivables | (19,504) | 8,185 | ||
Inventories | 1,921 | (164) | ||
Prepaid expenses and other assets | 66 | 35 | ||
Accounts payable | (4,841) | (79) | ||
Accrued expenses | (5,652) | (6,158) | ||
Other noncurrent liabilities | 0 | 5 | ||
Income taxes payable (refundable) | 542 | (16,499) | ||
Net cash flows from operating activities | (3,241) | 10,304 | ||
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (3,351) | (13,167) | ||
Proceeds from sale of assets | 11 | 141 | ||
Proceeds from settlement of net investment hedge | 0 | |||
Other, net | 6,604 | 2,641 | ||
Net cash flows from investing activities | 3,264 | (10,385) | ||
Cash flows from financing activities: | ||||
Net borrowings under short-term agreements | 0 | 0 | ||
Principal payments on long-term borrowings | 0 | 0 | ||
Dividends paid | 0 | 0 | ||
Dividends to noncontrolling interest | (5,669) | |||
Intercompany capital contribution | 3,785 | |||
Dividends to noncontrolling interest | 0 | |||
Purchase of noncontrolling interest | 0 | |||
Intercompany dividends | 0 | |||
Proceeds from exercises under stock plans | 0 | 0 | ||
Purchase of treasury shares | 0 | |||
Purchase of common treasury shares - stock plan exercises | 0 | 0 | ||
Net cash flows from financing activities | (1,884) | 0 | ||
Effect of exchange rate changes on cash and cash equivalents | 212 | 95 | ||
Net change in cash and cash equivalents | (1,649) | 14 | ||
Cash and cash equivalents—beginning of year | 6,071 | 4,008 | ||
Cash and cash equivalents—end of period | 4,422 | 4,022 | 4,422 | 4,022 |
Non- Guarantors | ||||
Cash flows from operating activities: | ||||
Net earnings | 19,337 | 20,888 | 42,765 | 32,539 |
Adjustments to reconcile net earnings to net cash flows from operations: | ||||
Depreciation and amortization | 21,593 | 20,508 | ||
Noncash loss on trading securities | 188 | 1,035 | ||
Stock-based compensation | 0 | 0 | ||
Defined benefit pension plan expense | 314 | 959 | ||
Contribution to defined benefit pension plan | (25,379) | (712) | ||
Change in restricted cash - pension plan trust | 12,568 | (13,652) | ||
(Gain)/loss on sale of property, plant and equipment | (44) | 1,020 | ||
Equity in earnings in nonconsolidated subsidiaries | 0 | 0 | 0 | 0 |
Deferred income taxes | (930) | (2,463) | 1,808 | (1,272) |
Changes in assets and liabilities: | ||||
Receivables | (21,166) | (5,629) | ||
Inventories | (16,087) | (21,974) | ||
Prepaid expenses and other assets | (6,217) | (3,390) | ||
Accounts payable | 12,799 | 14,978 | ||
Accrued expenses | 8,831 | (3,438) | ||
Other noncurrent liabilities | 1,099 | (546) | ||
Income taxes payable (refundable) | 9,223 | 6,982 | ||
Net cash flows from operating activities | 42,295 | 27,408 | ||
Cash flows from investing activities: | ||||
Purchase of property, plant and equipment | (14,706) | (11,612) | ||
Proceeds from sale of assets | 858 | 1,628 | ||
Proceeds from settlement of net investment hedge | 0 | |||
Other, net | (607) | (4,638) | ||
Net cash flows from investing activities | (14,455) | (14,622) | ||
Cash flows from financing activities: | ||||
Net borrowings under short-term agreements | (369) | 2,593 | ||
Principal payments on long-term borrowings | (434) | (444) | ||
Dividends paid | 0 | 0 | ||
Dividends to noncontrolling interest | 5,669 | |||
Intercompany capital contribution | 0 | |||
Dividends to noncontrolling interest | (2,889) | (1,923) | ||
Purchase of noncontrolling interest | (10,872) | |||
Intercompany dividends | 22,662 | |||
Proceeds from exercises under stock plans | 0 | 0 | ||
Purchase of treasury shares | 0 | |||
Purchase of common treasury shares - stock plan exercises | 0 | 0 | ||
Net cash flows from financing activities | (20,685) | (10,646) | ||
Effect of exchange rate changes on cash and cash equivalents | 15,894 | (6,750) | ||
Net change in cash and cash equivalents | 23,049 | (4,610) | ||
Cash and cash equivalents—beginning of year | 326,652 | 282,785 | ||
Cash and cash equivalents—end of period | $ 349,701 | $ 278,175 | $ 349,701 | $ 278,175 |