Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 27, 2014 | Feb. 18, 2015 | Jun. 27, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | VALMONT INDUSTRIES INC | ||
Entity Central Index Key | 102729 | ||
Document Type | 10-K | ||
Document Period End Date | 27-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -15 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $3,928,857,217 | ||
Entity Common Stock, Shares Outstanding | 23,994,776 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |||
Product sales | $2,824,456 | $2,976,359 | $2,721,512 |
Services sales | 298,687 | 327,852 | 308,029 |
Net sales | 3,123,143 | 3,304,211 | 3,029,541 |
Product cost of sales | 2,118,687 | 2,144,942 | 2,032,030 |
Services cost of sales | 196,339 | 214,041 | 195,055 |
Total cost of sales | 2,315,026 | 2,358,983 | 2,227,085 |
Gross profit | 808,117 | 945,228 | 802,456 |
Selling, general and administrative expenses | 450,401 | 472,159 | 420,160 |
Operating income | 357,716 | 473,069 | 382,296 |
Other income (expenses): | |||
Interest expense | -36,790 | -32,502 | -31,625 |
Interest income | 6,046 | 6,477 | 8,272 |
Costs associated with refinancing of debt | -38,705 | ||
Other | -4,084 | 2,373 | 347 |
Total other income (expenses) | -73,533 | -23,652 | -23,006 |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 284,183 | 449,417 | 359,290 |
Income tax expense (benefit): | |||
Current | 89,643 | 167,922 | 122,782 |
Deferred | 5,251 | -10,141 | 3,720 |
Total income tax expense (benefit) | 94,894 | 157,781 | 126,502 |
Earnings before equity in earnings of nonconsolidated subsidiaries | 189,289 | 291,636 | 232,788 |
Equity in earnings of nonconsolidated subsidiaries | 29 | 835 | 6,128 |
Loss from deconsolidation of subsidiary | -12,011 | ||
Net earnings | 189,318 | 280,460 | 238,916 |
Less: Earnings attributable to noncontrolling interests | -5,342 | -1,971 | -4,844 |
Net earnings attributable to Valmont Industries, Inc. | $183,976 | $278,489 | $234,072 |
Earnings per share: | |||
Basic (in dollars per share) | $7.15 | $10.45 | $8.84 |
Diluted (in dollars per share) | $7.09 | $10.35 | $8.75 |
Cash dividends declared per share (in dollars per share) | $1.38 | $0.98 | $0.86 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net earnings | $189,318 | $280,460 | $238,916 |
Foreign currency translation adjustments: | |||
Unrealized gains (losses) arising during the period | -82,275 | -71,698 | 15,741 |
Realized loss on sale of foreign entity investment included in other expense | 5,194 | ||
Realized loss on deconsolidation of subsidiary | 8,559 | ||
Foreign currency translation adjustments | -82,275 | -57,945 | 15,741 |
Unrealized loss on cash flow hedge: | |||
Loss arising during the period | 983 | ||
Gain (deferred) on cash flow hedges | 4,837 | ||
Amortization cost included in interest expense | 594 | 400 | 400 |
Derivative adjustment | 6,414 | 400 | 400 |
Actuarial gain (loss) in defined benefit pension plan liability, net of tax expense (benefit) of ($3,450) in 2014, ($10,143) in 2013, and ($12,377) in 2012 | -13,709 | -41,282 | -35,020 |
Other comprehensive income (loss) | -89,570 | -98,827 | -18,879 |
Comprehensive income | 99,748 | 181,633 | 220,037 |
Comprehensive income attributable to noncontrolling interests | -2,520 | -9,174 | -6,079 |
Comprehensive income attributable to Valmont Industries, Inc. | $97,228 | $172,459 | $213,958 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Actuarial gain (loss) in defined benefit pension plan liability, tax | ($3,450) | ($10,143) | ($12,377) |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $371,579 | $613,706 |
Receivables, less allowance for doubtful receivables of $6,672 in 2014 and $10,369 in 2013 | 536,918 | 515,440 |
Inventories | 359,522 | 380,000 |
Prepaid expenses | 56,912 | 22,997 |
Refundable and deferred income taxes | 68,010 | 65,697 |
Total current assets | 1,392,941 | 1,597,840 |
Property, plant and equipment, at cost | 1,139,569 | 1,017,126 |
Less accumulated depreciation and amortization | 533,116 | 482,916 |
Net property, plant and equipment | 606,453 | 534,210 |
Goodwill | 385,111 | 349,632 |
Other intangible assets | 202,004 | 170,917 |
Other assets, less allowance for doubtful receivables of $3,250 in 2014 and $0 in 2013 | 143,159 | 123,895 |
Total assets | 2,729,668 | 2,776,494 |
Current liabilities: | ||
Current installments of long-term debt | 1,181 | 202 |
Notes payable to banks | 13,952 | 19,024 |
Accounts payable | 196,565 | 216,121 |
Accrued employee compensation and benefits | 87,950 | 122,967 |
Accrued expenses | 88,480 | 71,560 |
Dividends payable | 9,086 | 6,706 |
Total current liabilities | 397,214 | 436,580 |
Deferred income taxes | 71,797 | 78,924 |
Long-term debt, excluding current installments | 766,654 | 470,907 |
Defined benefit pension liability | 150,124 | 154,397 |
Deferred compensation | 47,932 | 39,109 |
Other noncurrent liabilities | 45,542 | 51,731 |
Commitments and contingencies (Note 18) | ||
Shareholders' equity: | ||
Preferred stock of $1 par value - Authorized 500,000 shares; none issued | ||
Common stock of $1 par value - Authorized 75,000,000 shares; issued 27,900,000 shares | 27,900 | 27,900 |
Retained earnings | 1,718,662 | 1,562,670 |
Accumulated other comprehensive income | -134,433 | -47,685 |
Cost of treasury stock, common shares of 3,670,781 in 2014 and 1,075,039 in 2013 | -410,296 | -20,860 |
Total Valmont Industries, Inc. shareholders' equity | 1,201,833 | 1,522,025 |
Noncontrolling interest in consolidated subsidiaries | 48,572 | 22,821 |
Total shareholders' equity | 1,250,405 | 1,544,846 |
Total liabilities and shareholders' equity | $2,729,668 | $2,776,494 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Receivables, allowance for doubtful receivables | $6,672 | $10,369 |
Other assets, allowance for doubtful receivables | $3,250 | $0 |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, Authorized shares | 500,000 | 500,000 |
Preferred stock, issued shares | 0 | 0 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, Authorized shares | 75,000,000 | 75,000,000 |
Common stock, issued shares | 27,900,000 | 27,900,000 |
Common shares in treasury, shares | 3,670,781 | 1,075,039 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Cash flows from operating activities: | |||
Net earnings | $189,318 | $280,460 | $238,916 |
Adjustments to reconcile net earnings to net cash flows from operations: | |||
Depreciation and amortization | 89,328 | 77,436 | 70,218 |
Loss on investment | 3,795 | ||
Deconsolidation of subsidiary | 12,011 | ||
Impairment of property, plant and equipment | 0 | 12,161 | |
Non-cash debt refinancing costs | -2,478 | ||
Stock-based compensation | 6,730 | 6,513 | 5,829 |
Defined benefit pension plan expense | 2,638 | 6,569 | 4,281 |
Contribution to defined benefit pension plan | -18,173 | -17,619 | -11,591 |
Change in fair value of contingent consideration | -4,300 | ||
(Gain) loss on sale of property, plant and equipment | 392 | -4,318 | 321 |
Equity in earnings in nonconsolidated subsidiaries | -29 | -835 | -6,128 |
Deferred income taxes | 5,251 | -10,141 | 3,720 |
Changes in assets and liabilities (net of the effect from acquisitions): | |||
Receivables | 907 | -12,708 | -84,890 |
Inventories | 21,458 | 13,431 | -13,613 |
Prepaid expenses | -13,594 | 4,115 | 1,243 |
Accounts payable | -34,321 | 12,448 | -6,249 |
Accrued expenses | -34,778 | 21,698 | 20,640 |
Other noncurrent liabilities | 1,755 | -1,474 | -4,350 |
Income taxes payable (refundable) | -39,803 | -3,305 | -21,250 |
Net cash flows from operating activities | 174,096 | 396,442 | 197,097 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | -73,023 | -106,753 | -97,074 |
Acquisitions (net of cash acquired) | -185,710 | -63,152 | -45,687 |
Proceeds from sale of assets | 2,489 | 37,582 | 6,025 |
Other, net | -619 | 602 | 44 |
Net cash flows from investing activities | -256,863 | -131,721 | -136,692 |
Cash flows from financing activities: | |||
Net borrowings under short-term agreements | -4,472 | 5,510 | 1,828 |
Proceeds from long-term borrowings | 652,211 | 274 | 39,126 |
Principal payments on long-term obligations | -357,858 | -591 | -39,564 |
Cash decrease due to deconsolidation of subsidiary | -11,615 | ||
Dividends paid | -32,443 | -25,414 | -21,520 |
Dividends to noncontrolling interest | -2,919 | -1,767 | -1,944 |
Purchase of noncontrolling interest | -9,324 | ||
Proceeds from sale of partial ownership interest | 1,404 | ||
Settlement of financial derivative | 4,981 | ||
Debt issuance fees | -7,644 | -1,747 | |
Proceeds from exercises under stock plans | 14,572 | 16,348 | 21,827 |
Excess tax benefits from stock option exercises | 4,264 | 5,306 | 5,494 |
Purchase of treasury shares | -395,045 | ||
Purchase of common treasury shares-stock plan exercises | -15,403 | -16,107 | -21,259 |
Net cash flows from financing activities | -139,756 | -37,380 | -16,355 |
Effect of exchange rate changes on cash and cash equivalents | -19,604 | -27,764 | 7,185 |
Net change in cash and cash equivalents | -242,127 | 199,577 | 51,235 |
Cash and cash equivalents-beginning of year | 613,706 | 414,129 | 362,894 |
Cash and cash equivalents-end of year | $371,579 | $613,706 | $414,129 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Locker [Member] | Locker [Member] | DS SM [Member] | DS SM [Member] | Ag Sense LLC [Member] | Ag Sense LLC [Member] | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock | Noncontrolling interest in consolidated subsidiaries | Total |
In Thousands, unless otherwise specified | Noncontrolling interest in consolidated subsidiaries | Noncontrolling interest in consolidated subsidiaries | Noncontrolling interest in consolidated subsidiaries | ||||||||||
Balance at Dec. 31, 2011 | $27,900 | $1,079,698 | $64,052 | ($24,688) | $50,949 | $1,197,911 | |||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||
Net earnings | 234,072 | 4,844 | 238,916 | ||||||||||
Other comprehensive income (loss) | -20,114 | 1,235 | -18,879 | ||||||||||
Cash dividends declared ($1.375, $0.975 and $0.855 per share for the period ended December 2014, 2013 and 2012, respectively) | -22,756 | -22,756 | |||||||||||
Dividends to noncontrolling interests | -1,944 | -1,944 | |||||||||||
Sale of partial ownership interest | -610 | 2,014 | 1,404 | ||||||||||
Stock plan exercises; 97,974, 103,023 and 174,943 shares acquired for the period ended December 2014, 2013 and 2012, respectively | -21,259 | -21,259 | |||||||||||
Stock options exercised; 194,627, 216,105 and 341,090 shares issued for the period ended December 2014, 2013 and 2012, respectively | -10,713 | 9,515 | 23,025 | 21,827 | |||||||||
Tax benefit from stock option exercises | 5,494 | 5,494 | |||||||||||
Stock option expense | 4,934 | 4,934 | |||||||||||
Stock awards; 22,010, 33,721 and 20,988 shares issued for the period ended December 2014, 2013 and 2012, respectively | 895 | 467 | 1,362 | ||||||||||
Balance at Dec. 29, 2012 | 27,900 | 1,300,529 | 43,938 | -22,455 | 57,098 | 1,407,010 | |||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||
Net earnings | 278,489 | 1,971 | 280,460 | ||||||||||
Other comprehensive income (loss) | -91,623 | -7,204 | -98,827 | ||||||||||
Cash dividends declared ($1.375, $0.975 and $0.855 per share for the period ended December 2014, 2013 and 2012, respectively) | -26,118 | -26,118 | |||||||||||
Dividends to noncontrolling interests | -1,767 | -1,767 | |||||||||||
Acquisition | 325 | 325 | |||||||||||
Purchase of noncontrolling interest | -2,038 | -7,286 | -9,324 | ||||||||||
Deconsolidation of EMD | -20,316 | -20,316 | |||||||||||
Stock plan exercises; 97,974, 103,023 and 174,943 shares acquired for the period ended December 2014, 2013 and 2012, respectively | -16,107 | -16,107 | |||||||||||
Stock options exercised; 194,627, 216,105 and 341,090 shares issued for the period ended December 2014, 2013 and 2012, respectively | -9,781 | 9,770 | 16,359 | 16,348 | |||||||||
Tax benefit from stock option exercises | 5,306 | 5,306 | |||||||||||
Stock option expense | 5,194 | 5,194 | |||||||||||
Stock awards; 22,010, 33,721 and 20,988 shares issued for the period ended December 2014, 2013 and 2012, respectively | 1,319 | 1,343 | 2,662 | ||||||||||
Balance at Dec. 28, 2013 | 27,900 | 1,562,670 | -47,685 | -20,860 | 22,821 | 1,544,846 | |||||||
Increase (Decrease) in Shareholders' Equity | |||||||||||||
Net earnings | 183,976 | 5,342 | 189,318 | ||||||||||
Other comprehensive income (loss) | -86,748 | -2,822 | -89,570 | ||||||||||
Cash dividends declared ($1.375, $0.975 and $0.855 per share for the period ended December 2014, 2013 and 2012, respectively) | -35,036 | -35,036 | |||||||||||
Dividends to noncontrolling interests | -2,919 | -2,919 | |||||||||||
Acquisition | 9,309 | 9,309 | 16,333 | 16,333 | |||||||||
Addition of noncontrolling interest | 508 | 508 | |||||||||||
Stock plan exercises; 97,974, 103,023 and 174,943 shares acquired for the period ended December 2014, 2013 and 2012, respectively | -15,403 | -15,403 | |||||||||||
Purchase of treasury shares; 2,711,149 shares acquired | -395,045 | -395,045 | |||||||||||
Stock options exercised; 194,627, 216,105 and 341,090 shares issued for the period ended December 2014, 2013 and 2012, respectively | -10,994 | 7,052 | 18,514 | 14,572 | |||||||||
Tax benefit from stock option exercises | 4,264 | 4,264 | |||||||||||
Stock option expense | 4,461 | 4,461 | |||||||||||
Stock awards; 22,010, 33,721 and 20,988 shares issued for the period ended December 2014, 2013 and 2012, respectively | 2,269 | 2,498 | 4,767 | ||||||||||
Balance at Dec. 27, 2014 | $27,900 | $1,718,662 | ($134,433) | ($410,296) | $48,572 | $1,250,405 |
CONDENSED_CONSOLIDATED_STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | |
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | |||
Cash dividends, per share | $1.38 | $0.98 | $0.86 |
Purchase of treasury shares, shares | 2,711,149 | ||
Stock plan exercises; shares acquired | 97,974 | 103,023 | 174,943 |
Stock options exercised; shares issued | 194,627 | 216,105 | 341,090 |
Stock awards; shares issued | 22,010 | 33,721 | 20,998 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
Principles of Consolidation | ||||||||||||||
The consolidated financial statements include the accounts of Valmont Industries, Inc. and its wholly and majority-owned subsidiaries (the Company). The investment in Delta EMD Pty. Ltd ("EMD") was recorded at fair value subsequent to its deconsolidation in 2013. Investments in other 20% to 50% owned affiliates and joint ventures are accounted for by the equity method. Investments in less than 20% owned affiliates are accounted for by the cost method. All significant intercompany items have been eliminated. | ||||||||||||||
Cash overdrafts | ||||||||||||||
Cash book overdrafts totaling $18,038 and $21,713 were classified as accounts payable at December 27, 2014 and December 28, 2013, respectively. The Company's policy is to report the change in book overdrafts as an operating activity in the Consolidated Statements of Cash Flows. | ||||||||||||||
Segments | ||||||||||||||
The Company has four reportable segments based on its management structure. Each segment is global in nature with a manager responsible for segment operational performance and allocation of capital within the segment. Reportable segments are as follows: | ||||||||||||||
ENGINEERED INFRASTRUCTURE PRODUCTS: This segment consists of the manufacture of engineered metal structures and components for the global lighting and traffic, wireless communication, roadway safety and access systems applications; | ||||||||||||||
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. | ||||||||||||||
In addition to these four reportable segments, there are other businesses and activities that individually are not more than 10% of consolidated sales. These operations include the manufacture of forged steel grinding media for the mining industry, tubular products for industrial customers, electrolytic manganese dioxide for disposable batteries and the distribution of industrial fasteners. These operations collectively are reported in the "Other" category. | ||||||||||||||
Fiscal Year | ||||||||||||||
The Company operates on a 52 or 53 week fiscal year with each year ending on the last Saturday in December. Accordingly, the Company's fiscal years ended December 27, 2014 and December 28, 2013 consisted of 52 weeks. | ||||||||||||||
Accounts Receivable | ||||||||||||||
Accounts receivable are reported on the balance sheet net of any allowance for doubtful accounts. Allowances are maintained in amounts considered to be appropriate in relation to the outstanding receivables based on age of the receivable, economic conditions and customer credit quality. | ||||||||||||||
Inventories | ||||||||||||||
Approximately 44% and 43% of inventory is valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market as of December 27, 2014 and December 28, 2013, respectively. All other inventory is valued at the lower of cost, determined on the first-in, first-out (FIFO) method or market. Finished goods and manufactured goods inventories include the costs of acquired raw materials and related factory labor and overhead charges required to convert raw materials to manufactured and finished goods. The excess of replacement cost of inventories over the LIFO value is approximately $47,178 and $45,204 at December 27, 2014 and December 28, 2013, respectively. | ||||||||||||||
Long-Lived Assets | ||||||||||||||
Property, plant and equipment are recorded at historical cost. The Company generally uses the straight-line method in computing depreciation and amortization for financial reporting purposes and accelerated methods for income tax purposes. The annual provisions for depreciation and amortization have been computed principally in accordance with the following ranges of asset lives: buildings and improvements 15 to 40 years, machinery and equipment 3 to 12 years, transportation equipment 3 to 24 years, office furniture and equipment 3 to 7 years and intangible assets 5 to 20 years. Depreciation expense in fiscal 2014, 2013 and 2012 was $73,395, $62,291 and $55,559, respectively. | ||||||||||||||
An impairment loss is recognized if the carrying amount of an asset may not be recoverable and exceeds estimated future undiscounted cash flows of the asset. A recognized impairment loss reduces the carrying amount of the asset to its fair value. There were no impairment losses recorded in 2014. In November 2013, it was determined that the carrying amount of certain fixed assets of Delta EMD, Ltd. were not recoverable and an impairment loss of $12,161 was recorded to reduce the carrying amount of the fixed assets to fair value. The impairment was a result of continued global oversupply of manganese dioxide in the market, increased price competition and increasing input costs. In addition, a major customer advised us that its purchases of EMD in 2014 would be substantially below prior years. This charge was recorded in Product Cost of Sales in the Consolidated Statements of Earnings. | ||||||||||||||
The Company evaluates its reporting units for impairment of goodwill during the third fiscal quarter of each year. Reporting units are evaluated using after-tax operating cash flows (less capital expenditures) discounted to present value. Indefinite-lived intangible assets are assessed separately from goodwill as part of the annual impairment testing, using a relief-from-royalty method. If the underlying assumptions related to the valuation of a reporting unit's goodwill or an indefinite-lived intangible asset change materially before or after the annual impairment testing, the reporting unit or asset is evaluated for potential impairment. In these evaluations, management considers recent operating performance, expected future performance, industry conditions and other indicators of potential impairment. | ||||||||||||||
Income Taxes | ||||||||||||||
The Company uses the asset and liability method to calculate deferred income taxes. Deferred tax assets and liabilities are recognized on temporary differences between financial statement and tax bases of assets and liabilities using enacted tax rates. The effect of tax rate changes on deferred tax assets and liabilities is recognized in income during the period that includes the enactment date. | ||||||||||||||
Warranties | ||||||||||||||
The Company's provision for product warranty reflects management's best estimate of probable liability under its product warranties. Estimated future warranty costs are recorded at the time a sale is recognized. Future warranty liability is determined based on applying historical claim rate experience to units sold that are still within the warranty period. In addition, the Company records provisions for known warranty claims. | ||||||||||||||
Pension Benefits | ||||||||||||||
Certain expenses are incurred in connection with a defined benefit pension plan. In order to measure expense and the related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as current facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits. | ||||||||||||||
Derivative Instrument | ||||||||||||||
The Company may enter into derivative financial instruments to manage risk associated with fluctuation in interest rates, foreign currency rates or commodities. Where applicable, the Company may elect to account for such derivatives as either a cash flow or fair value hedge. | ||||||||||||||
Comprehensive Income | ||||||||||||||
Comprehensive income includes net income, currency translation adjustments, certain derivative-related activity and changes in net actuarial gains/losses from a pension plan. Results of operations for foreign subsidiaries are translated using the average exchange rates during the period. Assets and liabilities are translated at the exchange rates in effect on the balance sheet dates. The components of accumulated other comprehensive income (loss) consisted of the following: | ||||||||||||||
Foreign | Unrealized | Defined | Accumulated | |||||||||||
Currency | Gain (Loss) on | Benefit | Other | |||||||||||
Translation | Cash Flow | Pension Plan | Comprehensive | |||||||||||
Adjustments | Hedge | Income | ||||||||||||
Balance at December 28, 2013 | $ | (20,165 | ) | $ | (2,535 | ) | $ | (24,985 | ) | $ | (47,685 | ) | ||
Current-period comprehensive income (loss) | (79,453 | ) | 6,414 | (13,709 | ) | (86,748 | ) | |||||||
| | | | | | | | | | | | | | |
Balance at December 27, 2014 | $ | (99,618 | ) | $ | 3,879 | $ | (38,694 | ) | $ | (134,433 | ) | |||
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Revenue Recognition | ||||||||||||||
Revenue is recognized upon shipment of the product or delivery of the service to the customer, which coincides with passage of title and risk of loss to the customer. Customer acceptance provisions exist only in the design stage of our products. Acceptance of the design by the customer is required before the product is manufactured and delivered to the customer. We are not entitled to any compensation solely based on design of the product and we do not recognize any revenue associated with the design stage. No general rights of return exist for customers once the product has been delivered. Shipping and handling costs associated with sales are recorded as cost of goods sold. Sales discounts and rebates are estimated based on past experience and are recorded as a reduction of net sales in the period in which the sale is recognized. Service revenues predominantly consist of coatings services provided by our Coatings segment to its customers. Revenue from our offshore and other complex steel structures products is recognized using the percentage-of-completion method, based primarily on contract cost incurred to date compared to total estimated contract cost. | ||||||||||||||
Use of Estimates | ||||||||||||||
Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the reported amounts of revenue and expenses and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. | ||||||||||||||
Equity Method Investments | ||||||||||||||
The Company has equity method investments in non-consolidated subsidiaries which are recorded within "Other assets" on the Consolidated Balance Sheet. In February 2013, the Company sold its nonconsolidated investment in Manganese Materials Company Pty. Ltd. to the majority owner of the business for approximately $29,250. The profit on the sale was not significant, which included the recognition of $5,194 in currency translation adjustments previously recorded as part of "Accumulated other comprehensive income" on the Consolidated Balance Sheet. The Company also recognized certain deferred tax benefits of approximately $3,200 associated with the sale in the first quarter of 2013. | ||||||||||||||
Treasury Stock | ||||||||||||||
Repurchased shares are recorded as "Treasury Stock" and result in a reduction of "Shareholders' Equity." When treasury shares are reissued, the Company uses the last-in, first-out method, and the difference between the repurchase cost and re-issuance price is charged or credited to "Additional Paid-In Capital." | ||||||||||||||
On May 13, 2014, the Company announced a new capital allocation philosophy which covered a share repurchase program. Specifically, the Board of Directors authorized the purchase of up to $500 million of the Company's outstanding common stock from time to time over twelve months at prevailing market prices, through open market or privately-negotiated transactions. As of December 27, 2014, the Company has acquired 2,711,149 shares for approximately $395.0 million under this share repurchase program. In February 2015, the Board of Directors authorized an additional $250 million of purchase, without an expiration date | ||||||||||||||
Research and Development | ||||||||||||||
Research and development costs are charged to operations in the year incurred. These costs are a component of "Selling, general and administrative expenses" on the Consolidated Statements of Earnings. Research and development expenses were approximately $13,900 in 2014, $10,200 in 2013, and $7,100 in 2012. | ||||||||||||||
Recently Issued Accounting Pronouncements | ||||||||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in Accounting Standards Codification ("ASC") 605, Revenue Recognition. The new revenue recognition standard requires entities to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 is effective for interim and annual reporting periods beginning after December 15, 2016 and is to be applied retrospectively. Early application is not permitted. The Company is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated results of operations and financial position. | ||||||||||||||
ACQUISITIONS_AND_DECONSOLIDATI
ACQUISITIONS AND DECONSOLIDATION | 12 Months Ended | |||||||
Dec. 27, 2014 | ||||||||
ACQUISITIONS AND DECONSOLIDATION | ||||||||
ACQUISITIONS AND DECONSOLIDATION | (2) ACQUISITIONS AND DECONSOLIDATION | |||||||
Acquisitions of Businesses | ||||||||
On March 3, 2014, the Company purchased 90% of the outstanding shares of DS SM A/S, which was renamed Valmont SM. Valmont SM is a manufacturer of heavy complex steel structures for a diverse range of industries including wind energy, offshore oil and gas, and electricity transmission. Valmont SM's operations are reported in the Engineered Infrastructure Products segment. Valmont SM's annual sales are approximately $190,000 and it operates two manufacturing locations in Denmark. The purchase price paid for the business at closing (net of $56 cash acquired) was $120,483, including the payoff of an intercompany note payable by Valmont SM to its prior affiliates. The purchase is subject to an earn-out clause that is contingent on meeting future operational metrics for which no liability has been established based on current expectations. The acquisition, which was funded by cash held by the Company, was completed to participate in markets for wind energy, oil and gas exploration, power transmission and other related infrastructure projects and to increase the Company's geographic footprint in Europe. The Company also funded a portion of the acquisition with an intercompany note payable. The excess purchase price over the fair value of assets resulted in goodwill, which is not deductible for tax purposes. | ||||||||
The Company finalized the fair value measurement process and purchase price allocation in the fourth quarter of 2014. The following table summarizes the fair values of the assets acquired and liabilities assumed as of the date of acquisition. | ||||||||
At March 3, | ||||||||
2014 | ||||||||
Current assets | $ | 73,421 | ||||||
Property, plant and equipment | 85,638 | |||||||
Intangible assets | 30,340 | |||||||
Goodwill | 16,803 | |||||||
| | | | | ||||
Total fair value of assets acquired | $ | 206,202 | ||||||
| | | | | ||||
Current liabilities | 47,754 | |||||||
Deferred income taxes | 19,715 | |||||||
Intercompany note payable | 37,448 | |||||||
Long-term debt | 8,941 | |||||||
| | | | | ||||
Total fair value of liabilities assumed | 113,858 | |||||||
Non-controlling interests | 9,309 | |||||||
| | | | | ||||
Net assets acquired | $ | 83,035 | ||||||
| | | | | ||||
The Company's Condensed Consolidated Statements of Earnings for the 52 weeks ended December 27, 2014 included net sales of $146,432 and net earnings of $9,139, resulting from Valmont SM's operations from March 3, 2014 to December 27, 2014. | ||||||||
Based on the fair value assessments, the Company allocated $30,340 of the purchase price to acquired intangible assets. The following table summarizes the major classes of Valmont SM's acquired intangible assets and the respective weighted average amortization periods: | ||||||||
Amount | Weighted | |||||||
Average | ||||||||
Amortization | ||||||||
Period | ||||||||
(Years) | ||||||||
Trade Names | $ | 11,470 | Indefinite | |||||
Backlog | 3,145 | 1.5 | ||||||
Customer Relationships | 15,725 | 12.0 | ||||||
| | | | | | |||
Total Intangible Assets | $ | 30,340 | ||||||
| | | | | | |||
On October 6, 2014, the Company acquired Shakespeare Composite Structures (Shakespeare) for $48,272 in cash, plus assumed liabilities. Shakespeare is a manufacturer of fiberglass reinforced composite structures and products with two manufacturing facilities in South Carolina. Shakespeare's annual sales are approximately $55,000 and its operations will be included in the Engineered Infrastructure Products segment. The acquisition of Shakespeare was completed to expand our product offering of composite structure solutions. | ||||||||
The preliminary fair value measurement disclosed below is subject to management reviews and completion of the fair value measurements of the assets acquired and liabilities assumed. The Company expects the fair value measurement process and purchase price allocation to be completed in the first half of 2015. | ||||||||
The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed as of the date of the Shakespeare acquisition (goodwill is not deductible for tax purposes): | ||||||||
At October 6, | ||||||||
2014 | ||||||||
Current assets | $ | 12,532 | ||||||
Property, plant and equipment | 10,694 | |||||||
Intangible assets | 13,500 | |||||||
Goodwill | 15,416 | |||||||
| | | | | ||||
Total fair value of assets acquired | $ | 52,142 | ||||||
| | | | | ||||
Current liabilities | 3,870 | |||||||
| | | | | ||||
Net assets acquired | $ | 48,272 | ||||||
| | | | | ||||
The Company's Consolidated Statements of Earnings for the 52 weeks ended December 27, 2014 includes net sales and earnings of $12,321 and $958, respectively, resulting from Shakespeare's operations from October 6, 2014 to December 27, 2014. | ||||||||
Based on the preliminary fair value assessments, the Company allocated $13,500 of the purchase price to acquired intangible assets. The following table summarizes the major classes of Shakespeare acquired intangible assets and the respective weighted-average amortization periods: | ||||||||
Amount | Weighted | |||||||
Average | ||||||||
Amortization | ||||||||
Period | ||||||||
(Years) | ||||||||
Trade Names | $ | 4,000 | Indefinite | |||||
Customer Relationships | 9,500 | 15.0 | ||||||
| | | | | | |||
Total Intangible Assets | $ | 13,500 | ||||||
| | | | | | |||
On August 25, 2014, the Company acquired 51% of AgSense, LLC (AgSense) for $17,000 in cash. AgSense operates in South Dakota and is the creator of global WagNet network which provides growers with a more complete view of their entire farming operation by tying irrigation decision making to field, crop and weather conditions. In the measurement of fair values of assets acquired and liabilities assumed, goodwill of $17,193 and $16,083 of customer relationships, trade name and other intangible assets were recorded. Customer relationships will be amortized over ten years and patents will be amortized over seven years. The acquisition was completed to further extend the Company's offerings in remote monitoring and control technology for agriculture. A portion of the goodwill is deductible for tax purposes. AgSense is included in the Irrigation segment and the purchase price allocation was finalized in the fourth quarter of 2014. | ||||||||
On February 5, 2013, the Company purchased 100% of the outstanding shares of Locker Group Holdings Pty. Ltd. ("Locker"). Locker is a manufacturer of perforated and expanded metal for the non-residential market, industrial flooring and handrails for the access systems market, and screening media for applications in the industrial and mining sectors in Australia and Asia. Locker's operations are reported in the Engineered Infrastructure Products segment. The acquisition, which was funded by cash held by the Company, was completed to expand our product offering and sales coverage for access systems and related products in Asia Pacific. | ||||||||
The purchase price paid for the business at closing (net of $116 cash acquired) was $53,152. In addition, a maximum of $7,911 additional purchase price could be paid to the sellers upon the achievement of certain gross profit and inventory targets over the two years following date of acquisition and the Company recognized an estimated liability of $7,178 at February 5, 2013. During 2014 and 2013, the Company made payments of approximately $2,300 to the sellers with respect to achievement of these targets. The Company determined that the additional purchase price tied to a gross profit target for the twelve months ending February 2015 would not be achieved and therefore the additional purchase price with respect to that target will not be paid. As such, approximately $4,300 of this liability was reversed and recognized against cost of goods sold during the third quarter of 2014. | ||||||||
In December 2013, the Company purchased 100% of the outstanding shares of Armorflex International Ltd. ("Armorflex") for $10,000. Armorflex is a company holding proprietary intellectual property for products serving the highway safety market. In the measurement of fair values of assets acquired and liabilities assumed, we recorded goodwill of $6,823 and an aggregate of $3,792 for customer relationships, patented technology and other intangible assets. The goodwill is not deductible for tax purposes. Armorflex is included in the Engineered Infrastructure Products segment and was acquired to expand the Company's highway safety product offering in the Asia Pacific region. This acquisition did not have a significant effect on the Company's fiscal 2013 financial results. | ||||||||
On December 19, 2012, the Company acquired Pure Metal Galvanizing for $45,687 in cash, net of cash acquired, plus assumed liabilities. In addition, the purchase price includes contingent consideration with a fair value of $3,884 to be paid at the end of five years if certain earnings objectives are met over the period. Pure Metal Galvanizing operates three custom galvanizing operations in Ontario, Canada. In the purchase price allocation, goodwill of $12,676 and $14,066 of customer relationships, trade name and other intangible assets was recorded. A portion of the goodwill is deductible for tax purposes. This business is included in the Coatings segment and was acquired to expand the Company's geographic presence into the Canadian galvanizing market. | ||||||||
The Company's Consolidated Statement of Earnings for the fiscal year ended December 27, 2014 included net sales of $243,139 and net earnings of $17,872 resulting from the Valmont SM, AgSense, Locker, Armorflex and Shakespeare acquisitions. The pro forma effect of these acquisitions on the 2014 and 2013 Statement of Earnings was as follows: | ||||||||
Fifty-two weeks | Fifty-two weeks | |||||||
Ended | Ended | |||||||
December 27, | December 28, | |||||||
2014 | 2013 | |||||||
Net sales | $ | 3,201,947 | $ | 3,556,988 | ||||
Net earnings | 189,391 | 293,340 | ||||||
Earnings per share—diluted | $ | 7.30 | $ | 10.91 | ||||
Acquisitions of Noncontrolling Interests | ||||||||
In October 2013, the Company acquired the remaining 40% of Valley Irrigation South Africa Pty. Ltd. that it did not own for $9,324. As this transaction was an acquisition of the remaining shares of a consolidated subsidiary with no change in control, it was recorded within shareholders' equity and as a financing cash flow in the Consolidated Statement of Cash Flows. | ||||||||
Deconsolidation | ||||||||
In December 2013, the Company's ownership in Delta EMD, Ltd. ("EMD"), a consolidated subsidiary located in South Africa, was reduced below 50% through a supplementary contribution of 1,500,000 shares to the Delta Pension Plan ("DPP"). The DPP is managed by independent trustees whose fiduciary responsibility is to make decisions for the DPP based on the best interests of the participants. The loss recognized on the deconsolidation of EMD was $12,011, or $0.45 per share, which consisted of $8,559 realized losses on foreign currency translation adjustments previously reported in shareholders' equity and $3,452 in losses due to remeasurement of the remaining investment to fair value based on the market value of EMD shares, which are publicly traded on the Johannesburg stock exchange (JSE:DTA). The Company made a fair value election with respect to its remaining ownership interest in EMD and will report its investment at fair value going forward, using the quoted market price of the EMD shares as fair value. | ||||||||
The net sales of EMD included in the Company's Consolidated Statements of Earnings in 2013 and 2012 were $38,621 and $44,290, respectively. The net earnings of EMD attributable to the Company for the same years were a loss of $3,535 in 2013 and earnings of $1,043 in 2012. | ||||||||
CASH_FLOW_SUPPLEMENTARY_INFORM
CASH FLOW SUPPLEMENTARY INFORMATION | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
CASH FLOW SUPPLEMENTARY INFORMATION | |||||||||||
CASH FLOW SUPPLEMENTARY INFORMATION | (3) 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) were as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Interest | $ | 32,601 | $ | 32,655 | $ | 31,276 | |||||
Income taxes | 111,174 | 167,146 | 137,121 | ||||||||
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Dec. 27, 2014 | ||||||||
INVENTORIES | ||||||||
INVENTORIES | (4) INVENTORIES | |||||||
Inventories consisted of the following at December 27, 2014 and December 28, 2013: | ||||||||
2014 | 2013 | |||||||
Raw materials and purchased parts | $ | 179,093 | $ | 179,576 | ||||
Work-in-process | 27,835 | 27,294 | ||||||
Finished goods and manufactured goods | 199,772 | 218,334 | ||||||
| | | | | | | | |
Subtotal | 406,700 | 425,204 | ||||||
Less: LIFO reserve | 47,178 | 45,204 | ||||||
| | | | | | | | |
$ | 359,522 | $ | 380,000 | |||||
| | | | | | | | |
| | | | | | | | |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 27, 2014 | ||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
PROPERTY, PLANT AND EQUIPMENT | (5) PROPERTY, PLANT AND EQUIPMENT | |||||||
Property, plant and equipment, at cost, consist of the following: | ||||||||
2014 | 2013 | |||||||
Land and improvements | $ | 82,372 | $ | 71,726 | ||||
Buildings and improvements | 327,863 | 265,112 | ||||||
Machinery and equipment | 593,387 | 520,262 | ||||||
Transportation equipment | 35,205 | 37,213 | ||||||
Office furniture and equipment | 76,589 | 73,200 | ||||||
Construction in progress | 24,153 | 49,613 | ||||||
| | | | | | | | |
$ | 1,139,569 | $ | 1,017,126 | |||||
| | | | | | | | |
| | | | | | | | |
The Company leases certain facilities, machinery, computer equipment and transportation equipment under operating leases with unexpired terms ranging from one to fifteen years. Rental expense for operating leases amounted to $28,580, $26,567, and $24,645 for fiscal 2014, 2013, and 2012, respectively. | ||||||||
Minimum lease payments under operating leases expiring subsequent to December 27, 2014 are: | ||||||||
Fiscal year ending | ||||||||
2015 | $ | 24,525 | ||||||
2016 | 19,694 | |||||||
2017 | 16,166 | |||||||
2018 | 12,171 | |||||||
2019 | 9,096 | |||||||
Subsequent | 35,042 | |||||||
| | | | | ||||
Total minimum lease payments | $ | 116,694 | ||||||
| | | | | ||||
| | | | | ||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||
Dec. 27, 2014 | ||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | (6) GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||
The Company's annual impairment testing of goodwill and trade names was performed during the third quarter of 2014. 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 continues to monitor changes in the global economy that could impact future operating results of its reporting units. If such conditions arise, the Company will test a given reporting unit for impairment prior to the annual test. | ||||||||||||||||||||
Amortized Intangible Assets | ||||||||||||||||||||
The components of amortized intangible assets at December 27, 2014 and December 28, 2013 were as follows: | ||||||||||||||||||||
As of December 27, 2014 | ||||||||||||||||||||
Gross | Accumulated | Weighted | ||||||||||||||||||
Carrying | Amortization | Average | ||||||||||||||||||
Amount | Life | |||||||||||||||||||
Customer Relationships | $ | 207,509 | $ | 88,538 | 13 years | |||||||||||||||
Proprietary Software & Database | 3,769 | 2,977 | 8 years | |||||||||||||||||
Patents & Proprietary Technology | 12,394 | 8,537 | 8 years | |||||||||||||||||
Non-compete Agreements | 4,355 | 2,998 | 3 years | |||||||||||||||||
| | | | | | | | | ||||||||||||
$ | 228,027 | $ | 103,050 | |||||||||||||||||
| | | | | | | | | ||||||||||||
| | | | | | | | | ||||||||||||
As of December 28, 2013 | ||||||||||||||||||||
Gross | Accumulated | Weighted | ||||||||||||||||||
Carrying | Amortization | Average | ||||||||||||||||||
Amount | Life | |||||||||||||||||||
Customer Relationships | $ | 177,495 | $ | 76,024 | 13 years | |||||||||||||||
Proprietary Software & Database | 3,896 | 2,896 | 6 years | |||||||||||||||||
Patents & Proprietary Technology | 11,334 | 7,239 | 8 years | |||||||||||||||||
Non-compete Agreements | 1,620 | 1,438 | 6 years | |||||||||||||||||
| | | | | | | | | ||||||||||||
$ | 194,345 | $ | 87,597 | |||||||||||||||||
| | | | | | | | | ||||||||||||
| | | | | | | | | ||||||||||||
Amortization expense for intangible assets was $18,414, $15,233, and $14,332 for the fiscal years ended December 27, 2014, December 28, 2013 and December 29, 2012, respectively. | ||||||||||||||||||||
Estimated annual amortization expense related to finite-lived intangible assets is as follows: | ||||||||||||||||||||
Estimated | ||||||||||||||||||||
Amortization | ||||||||||||||||||||
Expense | ||||||||||||||||||||
2015 | $ | 18,176 | ||||||||||||||||||
2016 | 16,406 | |||||||||||||||||||
2017 | 16,364 | |||||||||||||||||||
2018 | 14,703 | |||||||||||||||||||
2019 | 13,871 | |||||||||||||||||||
The useful lives assigned to finite-lived intangible assets include consideration of factors such as the Company's past and expected experience related to customer retention rates, the remaining legal or contractual life of the underlying arrangement that resulted in the recognition of the intangible asset and the Company's expected use of the intangible asset. | ||||||||||||||||||||
Non-amortized intangible assets | ||||||||||||||||||||
Intangible assets with indefinite lives are not amortized. The carrying values of trade names at December 27, 2014 and December 28, 2013 were as follows: | ||||||||||||||||||||
December 27, | December 28, | Year | ||||||||||||||||||
2014 | 2013 | Acquired | ||||||||||||||||||
Webforge | $ | 16,801 | $ | 17,787 | 2010 | |||||||||||||||
Valmont SM | 10,818 | — | 2014 | |||||||||||||||||
Newmark | 11,111 | 11,111 | 2004 | |||||||||||||||||
Ingal EPS/Ingal Civil Products | 8,867 | 9,387 | 2010 | |||||||||||||||||
Donhad | 6,689 | 7,082 | 2010 | |||||||||||||||||
Shakespeare | 4,000 | — | 2014 | |||||||||||||||||
Industrial Galvanizers | 3,889 | 4,117 | 2010 | |||||||||||||||||
Other | 14,852 | 14,685 | ||||||||||||||||||
| | | | | | | | | ||||||||||||
$ | 77,027 | $ | 64,169 | |||||||||||||||||
| | | | | | | | | ||||||||||||
| | | | | | | | | ||||||||||||
The Company's trade names were tested for impairment separately from goodwill in the third quarter of 2014. The values of the trade names were determined using the relief-from-royalty method. The Company determined that the value of its trade names were not impaired. | ||||||||||||||||||||
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. | ||||||||||||||||||||
Goodwill | ||||||||||||||||||||
The carrying amount of goodwill by segment as of December 27, 2014 was as follows: | ||||||||||||||||||||
Engineered | Utility | Coatings | Irrigation | Other | Total | |||||||||||||||
Infrastructure | Support | Segment | Segment | |||||||||||||||||
Products | Structures | |||||||||||||||||||
Segment | Segment | |||||||||||||||||||
Balance at December 28, 2013 | $ | 175,442 | $ | 75,404 | $ | 77,062 | $ | 2,420 | $ | 19,304 | $ | 349,632 | ||||||||
Acquisition | 32,219 | — | — | 17,193 | — | 49,562 | ||||||||||||||
Foreign currency translation | (10,587 | ) | — | (2,200 | ) | (77 | ) | (1,069 | ) | (14,083 | ) | |||||||||
| | | | | | | | | | | | | | | | | | | | |
Balance at December 27, 2014 | $ | 197,074 | $ | 75,404 | $ | 74,862 | $ | 19,536 | $ | 18,235 | $ | 385,111 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
The Company examined the goodwill assigned to its reporting units in the third quarter of 2014 and determined that the goodwill on its consolidated balance sheet at December 27, 2014 was not impaired. The acquisition amount arose from the acquisitions of Valmont SM, Shakespeare, and AgSense. | ||||||||||||||||||||
The carrying amount of goodwill by segment as of December 28, 2013 was as follows: | ||||||||||||||||||||
Engineered | Utility | Coatings | Irrigation | Other | Total | |||||||||||||||
Infrastructure | Support | Segment | Segment | |||||||||||||||||
Products | Structures | |||||||||||||||||||
Segment | Segment | |||||||||||||||||||
Balance at December 29, 2012 | $ | 155,185 | $ | 77,141 | $ | 77,053 | $ | 2,517 | $ | 18,895 | $ | 330,791 | ||||||||
Acquisition | 21,189 | — | — | — | — | 21,189 | ||||||||||||||
Foreign currency translation | (2,669 | ) | — | 9 | (97 | ) | 409 | (2,348 | ) | |||||||||||
Other | 1,737 | (1,737 | ) | — | — | — | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Balance at December 28, 2013 | $ | 175,442 | $ | 75,404 | $ | 77,062 | $ | 2,420 | $ | 19,304 | $ | 349,632 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
The acquisition amount arose from the acquisitions of Locker and Armorflex. The other category relates to a minor component that was transferred from the Utility Support Structures segment to the Engineered Infrastructure Products segment. | ||||||||||||||||||||
BANK_CREDIT_ARRANGEMENTS
BANK CREDIT ARRANGEMENTS | 12 Months Ended |
Dec. 27, 2014 | |
BANK CREDIT ARRANGEMENTS | |
BANK CREDIT ARRANGEMENTS | (7) BANK CREDIT ARRANGEMENTS |
The Company maintains various lines of credit for short-term borrowings totaling $108,554 at December 27, 2014. As of December 27, 2014, $13,058 was outstanding. The interest rates charged on these lines of credit vary in relation to the banks' costs of funds. The unused and available borrowings under the lines of credit were $95,496 at December 27, 2014. The lines of credit can be modified at any time at the option of the banks. The Company pays no fees in connection with these lines of credit. In addition to the lines of credit, the Company also maintains other short-term bank loans. The weighted average interest rate on short-term borrowings was 6.56% at December 27, 2014, and 8.65% at December 28, 2013. Other notes payable of $894 and $880 were outstanding at December 27, 2014 and December 28, 2013, respectively. | |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
INCOME TAXES | |||||||||||
INCOME TAXES | (8) INCOME TAXES | ||||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries are as follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
United States | $ | 168,975 | $ | 338,163 | $ | 248,840 | |||||
Foreign | 115,208 | 111,254 | 110,450 | ||||||||
| | | | | | | | | | | |
$ | 284,183 | $ | 449,417 | $ | 359,290 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Income tax expense (benefit) consists of: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current: | |||||||||||
Federal | $ | 52,588 | $ | 110,847 | $ | 81,000 | |||||
State | 5,059 | 16,398 | 10,342 | ||||||||
Foreign | 32,443 | 39,285 | 32,294 | ||||||||
| | | | | | | | | | | |
90,090 | 166,530 | 123,636 | |||||||||
| | | | | | | | | | | |
Non-current: | (447 | ) | 1,392 | (854 | ) | ||||||
Deferred: | |||||||||||
Federal | 447 | (8,661 | ) | (3,824 | ) | ||||||
State | 1,376 | (307 | ) | (660 | ) | ||||||
Foreign | 3,428 | (1,173 | ) | 8,204 | |||||||
| | | | | | | | | | | |
5,251 | (10,141 | ) | 3,720 | ||||||||
| | | | | | | | | | | |
$ | 94,894 | $ | 157,781 | $ | 126,502 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The reconciliations of the statutory federal income tax rate and the effective tax rate follows: | |||||||||||
2014 | 2013 | 2012 | |||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||
State income taxes, net of federal benefit | 1.8 | 2.4 | 1.7 | ||||||||
Carryforwards, credits and changes in valuation allowances | (0.4 | ) | 0.9 | 1.8 | |||||||
Foreign tax rate differences | (4.4 | ) | (2.4 | ) | (2.5 | ) | |||||
Changes in unrecognized tax benefits | (0.2 | ) | 0.3 | (0.2 | ) | ||||||
Domestic production activities deduction | (1.6 | ) | (2.1 | ) | (2.3 | ) | |||||
Other | 3.2 | 1 | 1.7 | ||||||||
| | | | | | | | | | | |
33.4 | % | 35.1 | % | 35.2 | % | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating loss and tax credit carryforwards. The tax effects of significant items comprising the Company's net deferred income tax liabilities are as follows: | |||||||||||
2014 | 2013 | ||||||||||
Deferred income tax assets: | |||||||||||
Accrued expenses and allowances | $ | 17,446 | $ | 17,038 | |||||||
Accrued insurance | 882 | 1,508 | |||||||||
Tax credits and loss carryforwards | 148,484 | 146,473 | |||||||||
Defined benefit pension liability | 30,025 | 30,879 | |||||||||
Inventory allowances | 4,804 | 3,938 | |||||||||
Accrued warranty | 6,920 | 6,552 | |||||||||
Deferred compensation | 40,348 | 51,413 | |||||||||
| | | | | | | | ||||
Gross deferred income tax assets | 248,909 | 257,801 | |||||||||
Valuation allowance | (104,487 | ) | (107,767 | ) | |||||||
| | | | | | | | ||||
Net deferred income tax assets | 144,422 | 150,034 | |||||||||
| | | | | | | | ||||
Deferred income tax liabilities: | |||||||||||
Work in progress | 5,352 | — | |||||||||
Property, plant and equipment | 43,084 | 36,657 | |||||||||
Intangible assets | 60,316 | 57,787 | |||||||||
Other liabilities | 6,738 | 7,206 | |||||||||
| | | | | | | | ||||
Total deferred income tax liabilities | 115,490 | 101,650 | |||||||||
| | | | | | | | ||||
Net deferred income tax asset/(liability) | $ | 28,932 | $ | 48,384 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Deferred income tax assets (liabilities) are presented as follows on the Consolidated Balance Sheets: | |||||||||||
Balance Sheet Caption | 2014 | 2013 | |||||||||
Refundable and deferred income taxes | $ | 30,239 | $ | 57,344 | |||||||
Other assets | 70,490 | 69,964 | |||||||||
Deferred income taxes | (71,797 | ) | (78,924 | ) | |||||||
| | | | | | | | ||||
Net deferred income tax asset/(liability) | $ | 28,932 | $ | 48,384 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Management of the Company has reviewed recent operating results and projected future operating results. The Company's belief that realization of its net deferred tax assets is more likely than not is based on, among other factors, changes in operations that have occurred in recent years and available tax planning strategies. At December 27, 2014 and December 28, 2013 respectively, there were $148,484 and $146,473 relating to tax credits and loss carryforwards and $30,025 and $30,879 related to the defined benefit pension obligation. | |||||||||||
Valuation allowances have been established for certain losses that reduce deferred tax assets to an amount that will, more likely than not, be realized. The deferred tax assets at December 27, 2014 that are associated with tax loss and tax credit carryforwards not reduced by valuation allowances expire in periods starting 2015. | |||||||||||
Uncertain tax positions included in other non-current liabilities are evaluated in a two-step process, whereby (1) the Company determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more likely than not recognition threshold, the Company would recognize the largest amount of tax benefit that is greater than fifty percent likely to be realized upon ultimate settlement with the related tax authority. | |||||||||||
The following summarizes the activity related to our unrecognized tax benefits in 2014 and 2013, in thousands: | |||||||||||
2014 | 2013 | ||||||||||
Gross unrecognized tax benefits—beginning of year | $ | 4,727 | $ | 3,370 | |||||||
Gross increases—tax positions in prior period | — | 1,464 | |||||||||
Gross decreases—tax positions in prior period | (456 | ) | — | ||||||||
Gross increases—current-period tax positions | 610 | 1,336 | |||||||||
Lapse of statute of limitations | (613 | ) | (1,443 | ) | |||||||
| | | | | | | | ||||
Gross unrecognized tax benefits—end of year | $ | 4,268 | $ | 4,727 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
There are approximately $1,284 of uncertain tax positions for which reversal is reasonably possible during the next 12 months due to the closing of the statute of limitations. The nature of these uncertain tax positions is generally the computation of a tax deduction or tax credit. During 2014, the Company recorded a reduction of its gross unrecognized tax benefit of $613 with $399 recorded as a reduction of income tax expense, due to the expiration of statutes of limitation in the United States. During 2013, the company recorded a reduction of its gross unrecognized tax benefit of $1,443, with $938 recorded as a reduction of its income tax expense, due to the expiration of statutes of limitation in the United States and Australia. In addition to these amounts, there was an aggregate of $298 and $314 of interest and penalties at December 27, 2014 and December 28, 2013, respectively. The Company's policy is to record interest and penalties directly related to income taxes as income tax expense in the Consolidated Statements of Earnings. | |||||||||||
The Company files income tax returns in the U.S. and various states as well as foreign jurisdictions. Tax years 2011 and forward remain open under U.S. statutes of limitation. Generally, tax years 2010 and forward remain open under state statutes of limitation. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $4,056 and $4,491 at December 27, 2014 and December 28, 2013, respectively. | |||||||||||
On January 2, 2013, the American Taxpayer Relief Act of 2012 was enacted, which retroactively extended the research and experimentation (R&E) tax credit in the U.S. for two years, from January 1, 2012 through December 31, 2013. Because a change in tax law is accounted for in the period of enactment, the retroactive effect of the Act on the Company's U.S. federal taxes for 2012 of a benefit of approximately $750 was recognized in the first quarter of 2013. | |||||||||||
On September 13, 2013, the US Treasury and IRS issued final Tangible Property Regulations ("TPR") under IRC Section 162 and IRC Section 263(a). The regulations are effective for tax years beginning on or after January 1, 2014; however, certain portions may require a tax method change on a retroactive basis, thus requiring a IRC Section 481(a) adjustment related to fixed and real asset deferred taxes. The accounting rules under ASC 740 treat the release of the regulations as a change in tax law as of the date of issuance and required the Company to determine whether there was an impact on its financial statements for the period ended December 28, 2013. Any such impact of the final tangible property regulations would affect temporary deferred taxes only and result in a balance sheet reclassification between current and deferred taxes. The Company has analyzed the impact of the TPR on the Company and concluded that the expected impact is minimal. The Company will continue to monitor the impact of any future changes to the TPR on the Company prospectively. | |||||||||||
During 2014, the Company recorded an income tax benefit of $3.9 million as a result of restructuring in 2014 and a change in management's assertions regarding foreign investment opportunities. All foreign subsidiaries are considered permanently invested at December 27, 2014. Provision has not been made for United States income taxes on the undistributed earnings of the Company's foreign subsidiaries (approximately $668,400 at December 27, 2014 and $644,290 at December 28, 2013, respectively) because the Company intends to reinvest those earnings. Such earnings would become taxable upon the sale or liquidation of these foreign subsidiaries or upon remittance of dividends. Furthermore, the currency translation adjustments in "Accumulated other comprehensive income (loss)" are not adjusted for income taxes as they relate to indefinite investments in foreign subsidiaries. | |||||||||||
LONGTERM_DEBT
LONG-TERM DEBT | 12 Months Ended | |||||||
Dec. 27, 2014 | ||||||||
LONG-TERM DEBT | ||||||||
LONG-TERM DEBT | (9) LONG-TERM DEBT | |||||||
On September 22, 2014, the Company issued and sold $250,000 aggregate principal amount of the Company's 5.00% senior notes due 2044 and $250,000 aggregate principal amount of the Company's 5.25% senior notes due 2054. On September 22, 2014, the Company repurchased through a partial tender offer $199,800 in aggregate principal amount of the Company's 6.625% senior notes due 2020, and $250,200 of the notes remain outstanding following the conclusion of the tender offer. | ||||||||
December 27, | December 28, | |||||||
2014 | 2013 | |||||||
5.00% senior unsecured notes due 2044(a) | $ | 250,000 | $ | — | ||||
5.25% senior unsecured notes due 2054(b) | 250,000 | — | ||||||
Unamortized discount on 5.00% and 5.25% senior unsecured notes(a and b) | (4,449 | ) | — | |||||
6.625% senior unsecured notes due 2020(c) | 250,200 | 450,000 | ||||||
Unamortized premium on 6.625% senior unsecured notes(c) | 5,429 | 11,241 | ||||||
Revolving credit agreement(d) | — | — | ||||||
IDR Bonds(e) | 8,500 | 8,500 | ||||||
Other notes | 8,155 | 1,368 | ||||||
| | | | | | | | |
Long-term debt | 767,835 | 471,109 | ||||||
Less current installments of long-term debt | 1,181 | 202 | ||||||
| | | | | | | | |
Long-term debt, excluding current installments | $ | 766,654 | $ | 470,907 | ||||
| | | | | | | | |
| | | | | | | | |
(a) | The 5.00% senior unsecured notes due 2044 include an aggregate principle amount of $250,000 on which interest is paid and an unamortized discount balance of $1,155 at December 27, 2014. The notes bear interest at 5.000% per annum and are due on October 1, 2044. The discount will be amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. | |||||||
(b) | The 5.25% senior unsecured notes due 2054 include an aggregate principle amount of $250,000 on which interest is paid and an unamortized discount balance of $3,294 at December 27, 2014. The notes bear interest at 5.250% per annum and are due on October 1, 2054. The discount will be amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. | |||||||
(c) | The 6.625% senior unsecured notes due 2020, following a partial tender offer in September 2014, include a remaining aggregate principal amount of $250,200 on which interest is paid and an unamortized premium balance of $5,429 at December 27, 2014. The notes bear interest at 6.625% per annum and are due on April 1, 2020. In September 2014, the Company repurchased by partial tender $199,800 in aggregate principal amount of these notes and incurred cash prepayment expenses of approximately $41,200. In addition, $4,439 of the unamortized premium was recognized as income which is the proportionate amount of debt that was repaid. The remaining premium will be amortized against interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. | |||||||
(d) | On October 17, 2014, the Company entered into a First Amendment to our Credit Agreement with JPMorgan Chase Bank, as Administrative Agent, and the other lenders party thereto, dated as of August 15, 2012, which increased the committed unsecured revolving credit facility from $400 million to $600 million and extended the maturity date from August 15, 2017 to October 17, 2019. The Company may increase the credit facility by up to an additional $200 million at any time, subject to lenders increasing the amount of their commitments. The interest rate on our borrowings will be, at our option, either: | |||||||
(i) | LIBOR (based on a 1, 2, 3 or 6 month interest period, as selected by the Company) plus 100 to 162.5 basis points, depending on the credit rating of the our senior debt published by Standard & Poor's Rating Services and Moody's Investors Service, Inc., or; | |||||||
(ii) | the higher of | |||||||
• | the prime lending rate, | |||||||
• | the Federal Funds rate plus 50 basis points, and | |||||||
• | LIBOR (based on a 1 month interest period) plus 100 basis points, | |||||||
plus, in each case, 0 to 62.5 basis points, depending on the credit rating of our senior debt published by Standard & Poor's Rating Services and Mood's Investors Service, Inc. | ||||||||
At December 27, 2014, the Company had no outstanding borrowings under the revolving credit facility. The revolving credit facility has a maturity date of August 15, 2017 and contains certain financial covenants that may limit additional borrowing capability under the agreement. At December 27, 2014, the Company had the ability to borrow $582.4 million under this facility, after consideration of standby letters of credit of $17.6 million associated with certain insurance obligations. We also maintain certain short-term bank lines of credit totaling $108.6 million, $95.5 million of which was unused at December 27, 2014. | ||||||||
(e) | The Industrial Development Revenue Bonds were issued to finance the construction of a manufacturing facility in Jasper, Tennessee. Variable interest is payable until final maturity on June 1, 2025. The effective interest rates at December 27, 2014 and December 28, 2013 were 1.16% and 0.21%, respectively. | |||||||
The lending agreements include certain maintenance covenants, including financial leverage and interest coverage. The Company was in compliance with all financial debt covenants at December 27, 2014. The minimum aggregate maturities of long-term debt for each of the five years following 2014 are: $1,181, $1,357, $1,068, $1,066 and $900. | ||||||||
The obligations arising under the 5.00% senior unsecured notes due 2044, the 5.25% senior unsecured notes due 2054, the 6.625% senior unsecured notes due 2020, and the revolving credit facility are guaranteed by the Company and its wholly-owned subsidiaries PiRod, Inc., Valmont Coatings, Inc., Valmont Newmark, Inc., and Valmont Queensland Pty. Ltd. | ||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | |||||||||||||||
Dec. 27, 2014 | ||||||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||||||
STOCK-BASED COMPENSATION | (10) STOCK-BASED COMPENSATION | |||||||||||||||
The Company maintains stock-based compensation plans approved by the shareholders, which provide that the Compensation Committee of the Board of Directors may grant incentive stock options, nonqualified stock options, stock appreciation rights, non-vested stock awards and bonuses of common stock. At December 27, 2014, 1,234,445 shares of common stock remained available for issuance under the plans. Shares and options issued and available are subject to changes in capitalization. The Company's policy is to issue shares upon exercise of stock options from treasury shares held by the Company. | ||||||||||||||||
Under the stock option plans, the exercise price of each option equals the market price at the time of the grant. Options vest beginning on the first anniversary of the grant in equal amounts over three to six years or on the fifth anniversary of the grant. Expiration of grants is from six to ten years from the date of grant. The Company recorded $4,461, $5,194 and $4,934 of compensation expense (included in selling, general and administrative expenses) in the 2014, 2013 and 2012 fiscal years, respectively. The associated tax benefits recorded in the 2014, 2013 and 2012 fiscal years was $1,695, $1,974 and $1,875, respectively. | ||||||||||||||||
At December 27, 2014, the amount of unrecognized stock option compensation expense, to be recognized over a weighted average period of 2.34 years, was approximately $10,961. | ||||||||||||||||
The Company uses a binomial option pricing model to value its stock options. The fair value of each option grant made in 2014, 2013 and 2012 was estimated using the following assumptions: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Expected volatility | 32.27 | % | 33.26 | % | 33.76 | % | ||||||||||
Risk-free interest rate | 1.43 | % | 1.16 | % | 0.74 | % | ||||||||||
Expected life from vesting date | 3.0 yrs | 3.0 yrs | 3.0 yrs | |||||||||||||
Dividend yield | 0.75 | % | 0.72 | % | 0.77 | % | ||||||||||
Following is a summary of the activity of the stock plans during 2012, 2013 and 2014: | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | |||||||||||||||
Term | ||||||||||||||||
Outstanding at December 31, 2011 | 1,078,713 | $ | 70.88 | |||||||||||||
Granted | 140,007 | 136.01 | ||||||||||||||
Exercised | (341,090 | ) | (61.53 | ) | ||||||||||||
Forfeited | (8,638 | ) | (84.18 | ) | ||||||||||||
| | | | | | | | | | | | | | |||
Outstanding at December 29, 2012 | 868,992 | $ | 84.91 | 4.68 | $ | 43,410 | ||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Options vested or expected to vest at December 29, 2012 | 845,470 | $ | 84.26 | 4.64 | 42,765 | |||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Options exercisable at December 29, 2012 | 485,786 | $ | 71.06 | 3.67 | 30,846 | |||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
The weighted average per share fair value of options granted during 2012 was $38.17. | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | |||||||||||||||
Term | ||||||||||||||||
Outstanding at December 29, 2012 | 868,992 | $ | 84.91 | |||||||||||||
Granted | 155,254 | 144.86 | ||||||||||||||
Exercised | (216,105 | ) | (72.17 | ) | ||||||||||||
Forfeited | (12,920 | ) | (129.08 | ) | ||||||||||||
| | | | | | | | | | | | | | |||
Outstanding at December 28, 2013 | 795,221 | $ | 99.29 | 4.56 | $ | 39,994 | ||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Options vested or expected to vest at December 28, 2013 | 775,237 | $ | 98.41 | 4.51 | 39,678 | |||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Options exercisable at December 28, 2013 | 464,377 | $ | 81.73 | 3.58 | 31,508 | |||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
The weighted average per share fair value of options granted during 2013 was $37.88. | ||||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | |||||||||||||||
Term | ||||||||||||||||
Outstanding at December 28, 2013 | 795,221 | $ | 99.29 | |||||||||||||
Granted | 177,717 | 132.94 | ||||||||||||||
Exercised | (194,627 | ) | (71.67 | ) | ||||||||||||
Forfeited | (9,716 | ) | (126.23 | ) | ||||||||||||
| | | | | | | | | | | | | | |||
Outstanding at December 27, 2014 | 768,595 | $ | 113.72 | 4.74 | $ | 15,983 | ||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Options vested or expected to vest at December 27, 2014 | 746,974 | $ | 113.06 | 4.69 | 15,981 | |||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Options exercisable at December 27, 2014 | 450,539 | $ | 97.29 | 3.59 | 15,944 | |||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
The weighted average per share fair value of options granted during 2014 was $33.94. | ||||||||||||||||
Following is a summary of the status of stock options outstanding at December 27, 2014: | ||||||||||||||||
Outstanding and Exercisable By Price Range | ||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||
Exercise Price | Number | Weighted Average | Weighted | Number | Weighted | |||||||||||
Range | Remaining | Average | Average | |||||||||||||
Contractual | Exercise | Exercise | ||||||||||||||
Life | Price | Price | ||||||||||||||
$24.37 - 40.21 | 11,400 | 0.43 years | $ | 26.32 | 11,400 | $ | 26.32 | |||||||||
$57.46 - 105.44 | 297,279 | 2.95 years | 80.75 | 297,094 | 80.75 | |||||||||||
$110.26 - 151.45 | 459,916 | 6.00 years | 137.19 | 142,045 | 137.59 | |||||||||||
| | | | | | | | | | | | | | | | |
768,595 | 450,539 | |||||||||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
In accordance with shareholder-approved plans, the Company grants stock under various stock-based compensation arrangements, including non-vested stock and stock issued in lieu of cash bonuses. Under such arrangements, stock is issued without direct cost to the employee. In addition, the Company grants restricted stock units. The restricted stock units are settled in Company stock when the restriction period ends. During fiscal 2014, 2013 and 2012, the Company granted non-vested stock and restricted stock units to directors and certain management employees as follows (which are not included in the above stock plan activity tables): | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Shares issued | 35,885 | 47,271 | 27,293 | |||||||||||||
Weighted-average per share price on grant date | $ | 136.91 | $ | 146.72 | $ | 132.21 | ||||||||||
Compensation expense | $ | 3,978 | $ | 3,667 | $ | 2,835 | ||||||||||
At December 27, 2014 the amount of deferred stock-based compensation granted, to be recognized over a weighted-average period of 1.76 years, was approximately $8,337. | ||||||||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
EARNINGS PER SHARE | |||||||||||
EARNINGS PER SHARE | (11) EARNINGS PER SHARE | ||||||||||
The following table provides a reconciliation between Basic and Diluted earnings per share (EPS): | |||||||||||
Basic EPS | Dilutive | Diluted EPS | |||||||||
Effect of | |||||||||||
Stock | |||||||||||
Options | |||||||||||
2014:00:00 | |||||||||||
Net earnings attributable to Valmont Industries, Inc. | $ | 183,976 | $ | — | $ | 183,976 | |||||
Weighted average shares outstanding (000's) | 25,719 | 213 | 25,932 | ||||||||
Per share amount | $ | 7.15 | $ | 0.06 | $ | 7.09 | |||||
2013:00:00 | |||||||||||
Net earnings attributable to Valmont Industries, Inc. | $ | 278,489 | $ | — | $ | 278,489 | |||||
Weighted average shares outstanding (000's) | 26,641 | 258 | 26,899 | ||||||||
Per share amount | $ | 10.45 | $ | 0.10 | $ | 10.35 | |||||
2012:00:00 | |||||||||||
Net earnings attributable to Valmont Industries, Inc. | $ | 234,072 | $ | — | $ | 234,072 | |||||
Weighted average shares outstanding (000's) | 26,471 | 293 | 26,764 | ||||||||
Per share amount | $ | 8.84 | $ | 0.09 | $ | 8.75 | |||||
Basic and diluted net earnings and earnings per share for 2014 included costs associated with refinancing of our long-term debt of $24.2 million after tax ($0.93 per share). Basic and diluted net earnings and earnings per share for 2013 included a non-cash after-tax loss of $12,011 ($0.45 per share) associated with the deconsolidation of Delta EMD Pty. Ltd. (EMD) and a non-cash after-tax loss of $4,569 ($0.17 per share) related to a fixed asset impairment loss recorded by EMD in the fourth quarter of 2013. | |||||||||||
At the end of fiscal years 2014, 2013 and 2012, there were approximately 449,000, 1,200, and 137,000 options outstanding, respectively, with exercise prices exceeding the market value of common stock that were therefore excluded from the computation of diluted shares outstanding. | |||||||||||
EMPLOYEE_RETIREMENT_SAVINGS_PL
EMPLOYEE RETIREMENT SAVINGS PLAN | 12 Months Ended |
Dec. 27, 2014 | |
EMPLOYEE RETIREMENT SAVINGS PLAN | |
EMPLOYEE RETIREMENT SAVINGS PLAN | (12) EMPLOYEE RETIREMENT SAVINGS PLAN |
Established under Internal Revenue Code Section 401(k), the Valmont Employee Retirement Savings Plan ("VERSP") is a defined contribution plan available to all eligible employees. Participants can elect to contribute up to 50% of annual pay, on a pretax and/or after-tax basis. The Company also makes contributions to the Plan and a non-qualified deferred compensation plan for certain Company executives. The 2014, 2013 and 2012 Company contributions to these plans amounted to approximately $12,600, $11,600 and $10,000 respectively. | |
The Company sponsors a fully-funded, non-qualified deferred compensation plan for certain Company executives who otherwise would be limited in receiving company contributions into VERSP under Internal Revenue Service regulations. The invested assets and related liabilities of these participants were approximately $36,439 and $27,133 at December 27, 2014 and December 28, 2013, respectively. Such amounts are included in "Other assets" and "Other noncurrent liabilities" on the Consolidated Balance Sheets. Amounts distributed from the Company's non-qualified deferred compensation plan to participants under the transition rules of section 409A of the Internal Revenue Code were approximately $1,519 and $1,626 at December 27, 2014 and December 28, 2013, respectively. All distributions were made in cash. | |
DISCLOSURES_ABOUT_THE_FAIR_VAL
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | (13) DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||
The carrying amount of cash and cash equivalents, receivables, accounts payable, notes payable to banks and accrued expenses approximate fair value because of the short maturity of these instruments. The fair values of each of the Company's long-term debt instruments are based on the amount of future cash flows associated with each instrument discounted using the Company's current borrowing rate for similar debt instruments of comparable maturity (Level 2). The fair value estimates are made at a specific point in time and the underlying assumptions are subject to change based on market conditions. At December 27, 2014 the carrying amount of the Company's long-term debt was $767,835 with an estimated fair value of approximately $813,333. At December 28, 2013 the carrying amount of the Company's long-term debt was $471,109 with an estimated fair value of approximately $517,807. | ||||||||||||||
For financial reporting purposes, a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date is used. Inputs refers broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: | ||||||||||||||
• | Level 1: Quoted market prices in active markets for identical assets or liabilities. | |||||||||||||
• | Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. | |||||||||||||
• | Level 3: Unobservable inputs that are not corroborated by market data. | |||||||||||||
The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value. | ||||||||||||||
Trading Securities: The assets and liabilities recorded for the investments held in the Valmont Deferred Compensation Plan of $36,439 ($27,133 in 2013) represent mutual funds, invested in debt and equity securities, classified as trading securities, considering the employee's ability to change investment allocation of their deferred compensation at any time. The Company's remaining ownership in Delta EMD Pty. Ltd. (JSE:DTA) of $9,034 ($13,901 in 2013) is recorded at fair value at December 27, 2014. 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 | Quoted Prices | Significant | Significant | |||||||||||
Value | in Active | Other | Unobservable | |||||||||||
December 27, | Markets for | Observable | Inputs | |||||||||||
2014 | Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | |||||||||||||
Assets: | ||||||||||||||
Trading Securities | $ | 45,473 | $ | 45,473 | $ | — | $ | — | ||||||
Fair Value Measurement Using: | ||||||||||||||
Carrying | Quoted Prices | Significant | Significant | |||||||||||
Value | in Active | Other | Unobservable | |||||||||||
December 28, | Markets for | Observable | Inputs | |||||||||||
2013 | Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | |||||||||||||
Assets: | ||||||||||||||
Trading Securities | $ | 41,043 | $ | 41,043 | $ | — | $ | — | ||||||
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 27, 2014 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | (14) DERIVATIVE FINANCIAL INSTRUMENTS |
The Company manages risk from foreign currency rate risk related to foreign currency denominated transactions and from natural gas supply pricing. From time to time, the Company manages these risks using derivative financial instruments. Most of these derivative financial instruments are marked to market and recorded in the Company's consolidated statements of earnings. Some derivative financial instruments may be accounted for as a fair value or cash flow hedge. Derivative financial instruments have credit risk and market risk. To manage credit risk, the Company only enters into derivative transactions with counterparties who are recognized, stable multinational banks. | |
Natural Gas Prices: Natural gas supplies to meet production requirements of production facilities are purchased at market prices. Natural gas market prices are volatile and the Company effectively fixes prices for a portion of its natural gas usage requirements of certain of its U.S. facilities through the use of swaps. These contracts reference physical natural gas prices or appropriate NYMEX futures contract prices. While there is a strong correlation between the NYMEX futures contract prices and the Company's delivered cost of natural gas, the use of financial derivatives may not exactly offset the change in the price of physical gas. The contracts are traded in months forward and settlement dates are scheduled to coincide with gas purchases during that future period. | |
Annual consolidated purchase requirements for North America are approximately 1,079,000 MMBtu. At December 27, 2014 there were open swaps totaling 80,000 MMBtu with a total unrealized loss of $53, which was recorded in the Company's consolidated statement of earnings for the fiscal year ended December 27, 2014. At December 28, 2013 there were open swaps totaling 120,000 MMBtu with a total unrealized gain of $73, which was recorded in the Company's consolidated statement of earnings for the fiscal year ended December 28, 2013. | |
Interest Rate Fluctuations: On September 22, 2014, the Company issued and sold $250,000 aggregate principal amount of the Company's 5.00% Senior Notes due 2044 (the "2044 Notes") and $250,000 aggregate principal amount of the Company's 5.25% Senior Notes due 2054 (the "2054 Notes"). During the third quarter of 2014, the Company executed a contract to lock in the treasury rate related to the issuance of the 2044 Notes and a second contract to lock in the base interest rate on the issuance of the 2054 Notes. These contracts, each for a notional amount of $125,000, were executed to hedge the risk of potential fluctuations in the treasury rates which would change the amount of net proceeds received from the debt offering. As the benchmark rate component of the fixed rate debt issuance and the cash flow hedged risk is based on that same benchmark, this was deemed an effective hedge at inception. On September 10, 2014, these contracts were settled with the Company receiving approximately $4,837 from the counterparties which was recorded in accumulated other comprehensive income and will be amortized as a reduction of interest expense over the term of the debt. | |
In June 2011, the Company executed a contract for a notional amount of $130,000 to hedge the risk of potential fluctuations in the treasury rates which would change the amount of net proceeds received from the offering of $150 million of the Company's 6.625% Senior notes due 2020 (the "2020 Notes") . In conjunction with the repurchase through a partial tender offer of $199,800 of the 2020 Notes during September 2014, the Company recognized $983 of expense, which is a proportionate amount of the unrealized loss on cash flow hedge with respect to the 2020 Notes recorded within other comprehensive income at the time of partial tender. This $983 is included in the costs associated with refinancing of debt in the consolidated statement of earnings for 2014. | |
Foreign Currency Fluctuations: The Company operates in a number of different foreign countries and may enter into business transactions that are in currencies that are different from a given operation's functional currency. In certain cases, the Company may enter into foreign currency exchange contracts to manage a portion of the foreign exchange risk associated with either a receivable or payable denominated in a foreign currency, a forecasted transaction or a series of forecasted transactions denominated in a foreign currency. | |
At December 27, 2014, the Company had a number of open foreign currency forward contracts, including some related to a large sales contract that will be settled in Canadian dollars. The purpose of the contracts are to reduce the effect of exchange rate fluctuations on the profitability of the related contract and are generally accounted for as a cash flow hedge if hedge accounting is utilized. The large Canadian contract is accounted for as a cash flow hedge and has a notional amount to sell Canadian dollars of $14,757, which will be settled by September 2015. Total unrealized gains on the forward contracts related to the Canadian contract at the end of fiscal 2014 was $424, and $242 is recorded in accumulated other comprehensive income in the consolidated balance sheets. At December 28, 2013, the Company had open foreign currency forward contracts related to a large sales contract that was settled in Canadian dollars and was accounted for as a fair value hedge. The notional amount of the open forward contracts at the end of 2013 was $28,032, with unrealized gains of $475 that were recorded in other expense in the consolidated statements of earnings. The forward contracts were settled by March 2014. | |
GUARANTEES
GUARANTEES | 12 Months Ended | |||||||
Dec. 27, 2014 | ||||||||
GUARANTEES | ||||||||
GUARANTEES | (15) GUARANTEES | |||||||
The Company's product warranty accrual reflects management's best estimate of probable liability under its product warranties. Historical product claims data is used to estimate the cost of product warranties at the time revenue is recognized. | ||||||||
Changes in the product warranty accrual, which is recorded in "Accrued expenses", for the years ended December 27, 2014 and December 28, 2013, were as follows: | ||||||||
2014 | 2013 | |||||||
Balance, beginning of period | $ | 20,711 | $ | 15,333 | ||||
Payments made | (13,900 | ) | (9,033 | ) | ||||
Change in liability for warranties issued during the period | 13,130 | 15,193 | ||||||
Change in liability for pre-existing warranties | (181 | ) | (782 | ) | ||||
| | | | | | | | |
Balance, end of period | $ | 19,760 | $ | 20,711 | ||||
| | | | | | | | |
| | | | | | | | |
DEFINED_BENEFIT_RETIREMENT_PLA
DEFINED BENEFIT RETIREMENT PLAN | 12 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
DEFINED BENEFIT RETIREMENT PLAN | ||||||||||||||
DEFINED BENEFIT RETIREMENT PLAN | (16) DEFINED BENEFIT RETIREMENT PLAN | |||||||||||||
Delta Ltd., a wholly-owned subsidiary of the Company, is the sponsor of the Delta Pension Plan ("Plan"). The Plan provides defined benefit retirement income to eligible employees in the United Kingdom. Pension retirement benefits to qualified employees are 1.67% of final salary per year of service upon reaching the age of 65 years. This Plan has no active employees as members at December 27, 2014. | ||||||||||||||
Funded Status | ||||||||||||||
The Company recognizes the overfunded or underfunded status of the pension plan as an asset or liability. The funded status represents the difference between the projected benefit obligation (PBO) and the fair value of the plan assets. The PBO is the present value of benefits earned to date by plan participants, including the effect of assumed future salary increases (if applicable) and inflation. Plan assets are measured at fair value. Because the pension plan is denominated in British pounds sterling, the Company used exchange rates of $1.6469/£ and $1.5557/£ to translate the net pension liability into U.S. dollars at December 28, 2013 and December 27, 2014, respectively. | ||||||||||||||
Projected Benefit Obligation and Fair Value of Plan Assets—The accumulated benefit obligation (ABO) is the present value of benefits earned to date, assuming no future compensation growth. As there are no active employees in the plan, the ABO is equal to the PBO. The underfunded ABO represents the difference between the PBO and the fair value of plan assets. Changes in the PBO and fair value of plan assets for the pension plan for the period from December 29, 2012 to December 28, 2013 were as follows: | ||||||||||||||
Projected | Plan | Funded | ||||||||||||
Benefit | Assets | status | ||||||||||||
Obligation | ||||||||||||||
Fair Value at December 29, 2012 | $ | 597,767 | $ | 485,724 | $ | (112,043 | ) | |||||||
Employer contributions | — | 17,619 | ||||||||||||
Interest cost | 26,431 | — | ||||||||||||
Actual return on plan assets | — | 7,676 | ||||||||||||
Settlements | (12,981 | ) | (12,981 | ) | ||||||||||
Benefits paid | (11,573 | ) | (11,573 | ) | ||||||||||
Actuarial loss | 37,235 | — | ||||||||||||
Currency translation | 14,978 | 10,995 | ||||||||||||
| | | | | | | | | | | ||||
Fair Value at December 28, 2013 | $ | 651,857 | $ | 497,460 | $ | (154,397 | ) | |||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Changes in the PBO and fair value of plan assets for the pension plan for the period from December 28, 2013 to December 27, 2014 were as follows: | ||||||||||||||
Projected | Plan | Funded | ||||||||||||
Benefit | Assets | status | ||||||||||||
Obligation | ||||||||||||||
Fair Value at December 28, 2013 | $ | 651,857 | $ | 497,460 | $ | (154,397 | ) | |||||||
Employer contributions | — | 18,173 | ||||||||||||
Interest cost | 28,667 | — | ||||||||||||
Actual return on plan assets | — | 72,820 | ||||||||||||
Benefits paid | (14,498 | ) | (14,498 | ) | ||||||||||
Actuarial loss | 66,889 | — | ||||||||||||
Currency translation | (40,632 | ) | (31,796 | ) | ||||||||||
| | | | | | | | | | | ||||
Fair Value at December 27, 2014 | $ | 692,283 | $ | 542,159 | $ | (150,124 | ) | |||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Pre-tax amounts recognized in accumulated other comprehensive income (loss) as of December 27, 2014 and December 28, 2013 consisted of actuarial gains (losses): | ||||||||||||||
Balance December 29, 2012 | $ | 12,617 | ||||||||||||
Actuarial loss | (49,421 | ) | ||||||||||||
Currency translation loss | (2,004 | ) | ||||||||||||
| | | | | ||||||||||
Balance December 28, 2013 | (38,808 | ) | ||||||||||||
Actuarial loss | (18,980 | ) | ||||||||||||
Currency translation gain | 1,835 | |||||||||||||
| | | | | ||||||||||
Balance December 27, 2014 | $ | (55,953 | ) | |||||||||||
| | | | | ||||||||||
| | | | | ||||||||||
The estimated amount to be amortized from accumulated other comprehensive income into net periodic benefit cost in 2015 is $0. | ||||||||||||||
Assumptions—The weighted-average actuarial assumptions used to determine the benefit obligation at December 27, 2014 and December 28, 2013 were as follows: | ||||||||||||||
Percentages | 2014 | 2013 | ||||||||||||
Discount rate | 3.65 | % | 4.45 | % | ||||||||||
Salary increase | N/A | N/A | ||||||||||||
CPI inflation | 2.10 | % | 2.70 | % | ||||||||||
RPI inflation | 3.20 | % | 3.60 | % | ||||||||||
Expense | ||||||||||||||
Pension expense is determined based upon the annual service cost of benefits (the actuarial cost of benefits earned during a period) and the interest cost on those liabilities, less the expected return on plan assets. The expected long-term rate of return on plan assets is applied to the fair value of plan assets. Differences in actual experience in relation to assumptions are not recognized in net earnings immediately, but are deferred and, if necessary, amortized as pension expense. | ||||||||||||||
The components of the net periodic pension expense for the fiscal years ended December 27, 2014 and December 28, 2013 were as follows: | ||||||||||||||
2014 | 2013 | |||||||||||||
Net Periodic Benefit Cost: | ||||||||||||||
Interest cost | 28,667 | 26,431 | ||||||||||||
Expected return on plan assets | (26,029 | ) | (19,862 | ) | ||||||||||
| | | | | | | | |||||||
Net periodic benefit expense | $ | 2,638 | $ | 6,569 | ||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Assumptions—The weighted-average actuarial assumptions used to determine expense are as follows for fiscal 2014 and 2013: | ||||||||||||||
Percentages | 2014 | 2013 | ||||||||||||
Discount rate | 4.45 | % | 4.60 | % | ||||||||||
Expected return on plan assets | 5.50 | % | 4.20 | % | ||||||||||
RPI Inflation | 3.60 | % | 3.20 | % | ||||||||||
CPI Inflation | 2.70 | % | 2.70 | % | ||||||||||
The discount rate is based on the yields of AA-rated corporate bonds with durational periods similar to that of the pension liabilities. The expected return on plan assets is based on our asset allocation mix and our historical return, taking into account current and expected market conditions. Inflation is based on expected changes in the consumer price index or the retail price index in the U.K. depending on the relevant plan provisions. | ||||||||||||||
Cash Contributions | ||||||||||||||
The Company completed negotiations with Plan trustees in 2013 regarding annual funding for the Plan. The annual contributions into the Plan are $15,557 (/£10,000) per annum as part of the Plan's recovery plan, along with a contribution to cover the administrative costs of the Plan of approximately $1,711 (/£1,100) per annum. | ||||||||||||||
Benefit Payments | ||||||||||||||
The following table details expected pension benefit payments for the years 2015 through 2024: | ||||||||||||||
2015 | $ | 14,000 | ||||||||||||
2016 | 14,500 | |||||||||||||
2017 | 14,935 | |||||||||||||
2018 | 15,400 | |||||||||||||
2019 | 15,870 | |||||||||||||
Years 2020 - 2024 | 86,341 | |||||||||||||
Asset Allocation Strategy | ||||||||||||||
The investment strategy for pension plan assets is to maintain a diversified portfolio consisting of | ||||||||||||||
• | Long-term fixed-income securities that are investment grade or government-backed in nature; | |||||||||||||
• | Common stock mutual funds in U.K. and non-U.K. companies, and; | |||||||||||||
• | Diversified growth funds, which are invested in a number of investments, including common stock, fixed income funds, properties and commodities. | |||||||||||||
The plan, as required by U.K. law, has an independent trustee that sets investment policy. The general strategy is to invest approximately 50% of the assets of the plan in common stock mutual funds and diversified growth funds, with the remainder of the investments in long-term fixed income securities, including corporate bonds and index-linked U.K. gilts. The trustees regularly consult with representatives of the plan sponsor and independent advisors on such matters. | ||||||||||||||
The pension plan investments are held in a trust. The weighted-average maturity of the corporate bond portfolio was 13 years at December 27, 2014. | ||||||||||||||
Fair Value Measurements | ||||||||||||||
The pension plan assets are valued at fair value. The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. | ||||||||||||||
Index-linked gilts—Index-linked gilts are U.K. government-backed securities consisting of bills, notes, bonds, and other fixed income securities issued directly by the U.K. Treasury or by government-sponsored enterprises. | ||||||||||||||
Corporate Bonds—Corporate bonds and debentures consist of fixed income securities issued by U.K. corporations. | ||||||||||||||
Corporate Stock—This investment category consists of common and preferred stock, including mutual funds, issued by U.K. and non-U.K. corporations. | ||||||||||||||
Diversified growth funds—This investment category consists of diversified investment funds, whose holdings include common stock, fixed income funds, properties and commodities of U.K. and non-U.K. securities. | ||||||||||||||
These assets are pooled investment funds whereby the underlying investments can be valued using quoted market prices. As the fair values of the pooled investment funds themselves are not publicly quoted, they are classified as Level 2 investments. | ||||||||||||||
At December 27, 2014 and December 28, 2013, the pension plan assets measured at fair value on a recurring basis were as follows: | ||||||||||||||
December 27, 2014 | Quoted Prices in | Significant Other | Significant | Total | ||||||||||
Active Markets | Observable | Unobservable | ||||||||||||
for Identical | Inputs | Inputs | ||||||||||||
Inputs (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Plan net assets: | ||||||||||||||
Temporary cash investments | $ | — | $ | 12,320 | $ | — | $ | 12,320 | ||||||
Index-linked gilts | — | 135,229 | — | 135,229 | ||||||||||
Corporate bonds | — | 107,880 | — | 107,880 | ||||||||||
Corporate stock | — | 176,010 | — | 176,010 | ||||||||||
Diversified growth funds | — | 110,720 | — | 110,720 | ||||||||||
| | | | | | | | | | | | | | |
Total plan net assets at fair value | $ | — | $ | 542,159 | $ | — | $ | 542,159 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
December 28, 2013 | Quoted Prices in | Significant Other | Significant | Total | ||||||||||
Active Markets | Observable | Unobservable | ||||||||||||
for Identical | Inputs | Inputs | ||||||||||||
Inputs (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Plan net assets: | ||||||||||||||
Temporary cash investments | $ | — | $ | 10,791 | $ | — | $ | 10,791 | ||||||
Index-linked gilts | — | 112,208 | — | 112,208 | ||||||||||
Corporate bonds | — | 166,604 | — | 166,604 | ||||||||||
Corporate stock | — | 141,029 | — | 141,029 | ||||||||||
Diversified growth funds | — | 66,828 | — | 66,828 | ||||||||||
| | | | | | | | | | | | | | |
Total plan net assets at fair value | $ | — | $ | 497,460 | $ | — | $ | 497,460 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
BUSINESS SEGMENTS | |||||||||||
BUSINESS SEGMENTS | (17) BUSINESS SEGMENTS | ||||||||||
The Company has four reportable segments based on its management structure. Each segment is global in nature with a manager responsible for segment operational performance and the allocation of capital within the segment. Net corporate expense is net of certain service related expenses that are allocated to business units generally on the basis of employee headcounts and sales dollars. | |||||||||||
Reportable segments are as follows: | |||||||||||
ENGINEERED INFRASTRUCTURE PRODUCTS: This segment consists of the manufacture of engineered metal structures and components for the global lighting and traffic, wireless communication, offshore, roadway safety and access systems applications; | |||||||||||
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. | |||||||||||
In addition to these four reportable segments, the Company has other businesses and activities that individually are not more than 10% of consolidated sales. These include the manufacture of forged steel grinding media for the mining industry, tubular products for industrial customers, and the distribution of industrial fasteners and are reported in the "Other" category. | |||||||||||
The accounting policies of the reportable segments are the same as those described in Note 1. The Company evaluates the performance of its business segments based upon operating income and invested capital. The Company does not allocate interest expense, non-operating income and deductions, or income taxes to its business segments. | |||||||||||
In 2013, the Company changed its presentation of certain intersegment utility structure sales to align with management's current reporting structure. Fiscal 2012 reporting was reclassified to conform with the 2013 presentation. Accordingly, fiscal 2012 EIP segment sales (and the associated intersegment sales elimination) for 2012 increased by $49,427. Fiscal 2012 segment sales (after intersegment sales eliminations) and operating income were unchanged from amounts previously reported. | |||||||||||
Summary by Business Segments | |||||||||||
2014 | 2013 | 2012 | |||||||||
SALES: | |||||||||||
Engineered Infrastructure Products segment: | |||||||||||
Lighting, Traffic, and Roadway Products | $ | 648,352 | $ | 660,423 | $ | 637,082 | |||||
Communication Products | 161,618 | 139,888 | 134,711 | ||||||||
Offshore and Other Complex Steel Structures | 146,432 | — | — | ||||||||
Access Systems | 181,495 | 201,498 | 159,740 | ||||||||
| | | | | | | | | | | |
Engineered Infrastructure Products segment | 1,137,897 | 1,001,809 | 931,533 | ||||||||
Utility Support Structures segment: | |||||||||||
Steel | 714,427 | 853,459 | 752,621 | ||||||||
Concrete | 110,589 | 108,579 | 120,899 | ||||||||
| | | | | | | | | | | |
Utility Support Structures segment | 825,016 | 962,038 | 873,520 | ||||||||
Coatings segment | 333,853 | 357,635 | 334,552 | ||||||||
Irrigation segment | 759,178 | 882,179 | 750,641 | ||||||||
Other | 231,668 | 303,595 | 328,737 | ||||||||
| | | | | | | | | | | |
Total | 3,287,612 | 3,507,256 | 3,218,983 | ||||||||
INTERSEGMENT SALES: | |||||||||||
Engineered Infrastructure Products segment | 75,259 | 104,306 | 98,220 | ||||||||
Utility Support Structures segment | 2,451 | 2,343 | 3,857 | ||||||||
Coatings segment | 55,418 | 56,649 | 52,478 | ||||||||
Irrigation segment | 19 | 5 | 49 | ||||||||
Other | 31,322 | 39,742 | 34,838 | ||||||||
| | | | | | | | | | | |
Total | 164,469 | 203,045 | 189,442 | ||||||||
NET SALES: | |||||||||||
Engineered Infrastructure Products segment | 1,062,638 | 897,503 | 833,313 | ||||||||
Utility Support Structures segment | 822,565 | 959,695 | 869,663 | ||||||||
Coatings segment | 278,435 | 300,986 | 282,074 | ||||||||
Irrigation segment | 759,159 | 882,174 | 750,592 | ||||||||
Other | 200,346 | 263,853 | 293,899 | ||||||||
| | | | | | | | | | | |
Total | $ | 3,123,143 | $ | 3,304,211 | $ | 3,029,541 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
2014 | 2013 | 2012 | |||||||||
OPERATING INCOME (LOSS): | |||||||||||
Engineered Infrastructure Products | $ | 103,296 | $ | 87,647 | $ | 54,013 | |||||
Utility Support Structures | 95,118 | 174,740 | 129,025 | ||||||||
Coatings | 60,921 | 74,917 | 71,641 | ||||||||
Irrigation | 128,145 | 181,498 | 143,605 | ||||||||
Other | 25,898 | 30,984 | 46,575 | ||||||||
Corporate | (55,662 | ) | (76,717 | ) | (62,563 | ) | |||||
| | | | | | | | | | | |
Total | 357,716 | 473,069 | 382,296 | ||||||||
Interest expense, net | (30,744 | ) | (26,025 | ) | (23,353 | ) | |||||
Costs associated with refinancing of debt | (38,705 | ) | — | — | |||||||
Other | (4,084 | ) | 2,373 | 347 | |||||||
| | | | | | | | | | | |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | $ | 284,183 | $ | 449,417 | $ | 359,290 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
TOTAL ASSETS: | |||||||||||
Engineered Infrastructure Products | $ | 1,057,090 | $ | 873,757 | $ | 784,659 | |||||
Utility Support Structures | 470,720 | 524,113 | 510,943 | ||||||||
Coatings | 301,707 | 315,663 | 334,841 | ||||||||
Irrigation | 331,962 | 323,435 | 287,354 | ||||||||
Other | 117,300 | 126,337 | 202,289 | ||||||||
Corporate | 450,889 | 613,189 | 448,465 | ||||||||
| | | | | | | | | | | |
Total | $ | 2,729,668 | $ | 2,776,494 | $ | 2,568,551 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
CAPITAL EXPENDITURES: | |||||||||||
Engineered Infrastructure Products | $ | 14,328 | $ | 15,878 | $ | 20,244 | |||||
Utility Support Structures | 9,014 | 39,347 | 41,081 | ||||||||
Coatings | 14,029 | 12,206 | 13,280 | ||||||||
Irrigation | 15,488 | 21,416 | 12,618 | ||||||||
Other | 9,220 | 6,270 | 4,428 | ||||||||
Corporate | 10,944 | 11,636 | 5,423 | ||||||||
| | | | | | | | | | | |
Total | $ | 73,023 | $ | 106,753 | $ | 97,074 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
DEPRECIATION AND AMORTIZATION: | |||||||||||
Engineered Infrastructure Products | $ | 40,239 | $ | 31,057 | $ | 27,164 | |||||
Utility Support Structures | 17,811 | 14,375 | 13,284 | ||||||||
Coatings | 14,615 | 14,656 | 12,015 | ||||||||
Irrigation | 9,352 | 6,679 | 6,209 | ||||||||
Other | 5,512 | 7,663 | 8,168 | ||||||||
Corporate | 1,799 | 3,006 | 3,378 | ||||||||
| | | | | | | | | | | |
Total | $ | 89,328 | $ | 77,436 | $ | 70,218 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Summary by Geographical Area by Location of Valmont Facilities: | |||||||||||
2014 | 2013 | 2012 | |||||||||
NET SALES: | |||||||||||
United States | $ | 1,808,427 | $ | 2,077,812 | $ | 1,870,703 | |||||
Australia | 439,530 | 492,698 | 499,025 | ||||||||
China | 110,923 | 97,788 | 135,398 | ||||||||
Denmark | 146,432 | — | — | ||||||||
Other | 617,831 | 635,913 | 524,415 | ||||||||
| | | | | | | | | | | |
Total | $ | 3,123,143 | $ | 3,304,211 | $ | 3,029,541 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
LONG-LIVED ASSETS: | |||||||||||
United States | $ | 616,718 | $ | 530,042 | $ | 470,154 | |||||
Australia | 316,382 | 342,320 | 321,456 | ||||||||
Denmark | 111,161 | — | — | ||||||||
Other | 292,862 | 306,293 | 351,001 | ||||||||
| | | | | | | | | | | |
Total | $ | 1,337,123 | $ | 1,178,655 | $ | 1,142,611 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
No single customer accounted for more than 10% of net sales in 2014, 2013, or 2012. Net sales by geographical area are based on the location of the facility producing the sales and do not include sales to other operating units of the company. While Australia accounted for approximately 14% of the Company's net sales in 2014, no other foreign country accounted for more than 5% of the Company's net sales. | |||||||||||
Operating income by business segment and geographical areas are based on net sales less identifiable operating expenses and allocations and includes profits recorded on sales to other operating units of the company. | |||||||||||
Long-lived assets consist of property, plant and equipment, net of depreciation, goodwill, other intangible assets and other assets. Long-lived assets by geographical area are based on location of facilities. | |||||||||||
COMMITMENTS_CONTINGENCIES
COMMITMENTS & CONTINGENCIES | 12 Months Ended |
Dec. 27, 2014 | |
COMMITMENTS & CONTINGENCIES | |
COMMITMENTS & CONTINGENCIES | (18) COMMITMENTS & CONTINGENCIES |
Various claims and lawsuits are pending against Company and certain of its subsidiaries. The Company cannot fully determine the effect of all asserted and unasserted claims on its consolidated results of operations, financial condition, or liquidity. Where asserted and unasserted claims are considered probable and reasonably estimable, a liability has been recorded. We do not expect that any known lawsuits, claims, environmental costs, commitments, or contingent liabilities will have a material adverse effect on our consolidated results of operations, financial condition, or liquidity. | |
GUARANTORNONGUARANTOR_FINANCIA
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | 12 Months Ended | ||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | |||||||||||||||||
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | (19) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | ||||||||||||||||
On September 22, 2014, the Company issued and sold $250,000 aggregate principal amount of the Company's 5.00% senior notes due 2044 and $250,000 aggregate principal amount of the Company's 5.25% senior notes due 2054. On September 22, 2014, the Company repurchased through a partial tender offer $199,800 in aggregate principal amount of the Company's 6.625% senior notes due 2020, and $250,200 of the notes remain outstanding following the conclusion of the tender offer. All of the notes are guaranteed, jointly, severally, fully and unconditionally 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. | |||||||||||||||||
In the fourth quarter of 2014, a subsidiary of the Company was removed as a guarantor of our revolving credit facility, and consequently was removed as a guarantor of the notes. All prior year consolidated financial information has been recast to reflect the current guarantor structure. | |||||||||||||||||
Consolidated financial information for the Company ("Parent"), the Guarantor subsidiaries and the Non-Guarantor subsidiaries is as follows: | |||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||||
For the Year ended December 27, 2014 | |||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Total | |||||||||||||
Guarantors | |||||||||||||||||
Net sales | $ | 1,392,509 | $ | 496,326 | $ | 1,456,053 | $ | (221,745 | ) | $ | 3,123,143 | ||||||
Cost of sales | 1,040,808 | 371,639 | 1,124,813 | (222,234 | ) | 2,315,026 | |||||||||||
| | | | | | | | | | | | | | | | | |
Gross profit | 351,701 | 124,687 | 331,240 | 489 | 808,117 | ||||||||||||
Selling, general and administrative expenses | 196,987 | 49,171 | 204,243 | — | 450,401 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income | 154,714 | 75,516 | 126,997 | 489 | 357,716 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Other income (expense): | |||||||||||||||||
Interest expense | (34,267 | ) | (5 | ) | (2,518 | ) | — | (36,790 | ) | ||||||||
Interest income | 38 | 359 | 5,649 | — | 6,046 | ||||||||||||
Costs associated with refinancing of debt | (38,705 | ) | — | — | — | (38,705 | ) | ||||||||||
Other | 2,021 | (511 | ) | (5,594 | ) | — | (4,084 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
(70,913 | ) | (157 | ) | (2,463 | ) | — | (73,533 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 83,801 | 75,359 | 124,534 | 489 | 284,183 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Income tax expense (benefit): | |||||||||||||||||
Current | 30,330 | 25,277 | 33,898 | 138 | 89,643 | ||||||||||||
Deferred | (1,474 | ) | 1,866 | 4,859 | — | 5,251 | |||||||||||
| | | | | | | | | | | | | | | | | |
28,856 | 27,143 | 38,757 | 138 | 94,894 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Earnings before equity in earnings of nonconsolidated subsidiaries | 54,945 | 48,216 | 85,777 | 351 | 189,289 | ||||||||||||
Equity in earnings of nonconsolidated subsidiaries | 129,031 | 19,509 | 63 | (148,574 | ) | 29 | |||||||||||
| | | | | | | | | | | | | | | | | |
Net earnings | 183,976 | 67,725 | 85,840 | (148,223 | ) | 189,318 | |||||||||||
Less: Earnings attributable to noncontrolling interests | — | — | (5,342 | ) | — | (5,342 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net earnings attributable to Valmont Industries, Inc | $ | 183,976 | $ | 67,725 | $ | 80,498 | $ | (148,223 | ) | $ | 183,976 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||||
For the Year ended December 28, 2013 | |||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Total | |||||||||||||
Guarantors | |||||||||||||||||
Net sales | $ | 1,540,266 | $ | 689,230 | $ | 1,402,191 | $ | (327,476 | ) | $ | 3,304,211 | ||||||
Cost of sales | 1,107,020 | 503,431 | 1,078,695 | (330,163 | ) | 2,358,983 | |||||||||||
| | | | | | | | | | | | | | | | | |
Gross profit | 433,246 | 185,799 | 323,496 | 2,687 | 945,228 | ||||||||||||
Selling, general and administrative expenses | 209,350 | 59,368 | 203,441 | — | 472,159 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income | 223,896 | 126,431 | 120,055 | 2,687 | 473,069 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Other income (expense): | |||||||||||||||||
Interest expense | (30,801 | ) | (2 | ) | (1,699 | ) | — | (32,502 | ) | ||||||||
Interest income | 55 | 1,032 | 5,390 | — | 6,477 | ||||||||||||
Other | 4,791 | 9 | (2,427 | ) | — | 2,373 | |||||||||||
| | | | | | | | | | | | | | | | | |
(25,955 | ) | 1,039 | 1,264 | — | (23,652 | ) | |||||||||||
| | | | | | | | | | | | | | | | | |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 197,941 | 127,470 | 121,319 | 2,687 | 449,417 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Income tax expense (benefit): | |||||||||||||||||
Current | 78,912 | 45,951 | 42,379 | 680 | 167,922 | ||||||||||||
Deferred | (8,948 | ) | (19 | ) | (1,174 | ) | — | (10,141 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
69,964 | 45,932 | 41,205 | 680 | 157,781 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Earnings before equity in earnings of nonconsolidated subsidiaries | 127,977 | 81,538 | 80,114 | 2,007 | 291,636 | ||||||||||||
Equity in earnings of nonconsolidated subsidiaries | 150,512 | 16,417 | 494 | (166,588 | ) | 835 | |||||||||||
Loss from deconsolidation of subsidiary | — | — | (12,011 | ) | — | (12,011 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net earnings | 278,489 | 97,955 | 68,597 | (164,581 | ) | 280,460 | |||||||||||
Less: Earnings attributable to noncontrolling interests | — | — | (1,971 | ) | — | (1,971 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net earnings attributable to Valmont Industries, Inc | $ | 278,489 | $ | 97,955 | $ | 66,626 | $ | (164,581 | ) | $ | 278,489 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||||
For the Year ended December 29, 2012 | |||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Total | |||||||||||||
Guarantors | |||||||||||||||||
Net sales | $ | 1,375,238 | $ | 620,338 | $ | 1,331,827 | $ | (297,862 | ) | $ | 3,029,541 | ||||||
Cost of sales | 1,008,087 | 489,560 | 1,026,037 | (296,599 | ) | 2,227,085 | |||||||||||
| | | | | | | | | | | | | | | | | |
Gross profit | 367,151 | 130,778 | 305,790 | (1,263 | ) | 802,456 | |||||||||||
Selling, general and administrative expenses | 178,669 | 54,305 | 187,186 | — | 420,160 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income | 188,482 | 76,473 | 118,604 | (1,263 | ) | 382,296 | |||||||||||
| | | | | | | | | | | | | | | | | |
Other income (expense): | |||||||||||||||||
Interest expense | (31,121 | ) | — | (1,845 | ) | 1,341 | (31,625 | ) | |||||||||
Interest income | 45 | 1,533 | 8,035 | (1,341 | ) | 8,272 | |||||||||||
Other | 1,938 | 55 | (1,646 | ) | — | 347 | |||||||||||
| | | | | | | | | | | | | | | | | |
(29,138 | ) | 1,588 | 4,544 | — | (23,006 | ) | |||||||||||
| | | | | | | | | | | | | | | | | |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 159,344 | 78,061 | 123,148 | (1,263 | ) | 359,290 | |||||||||||
| | | | | | | | | | | | | | | | | |
Income tax expense (benefit): | |||||||||||||||||
Current | 59,648 | 27,736 | 36,098 | (700 | ) | 122,782 | |||||||||||
Deferred | (4,721 | ) | (496 | ) | 8,937 | — | 3,720 | ||||||||||
| | | | | | | | | | | | | | | | | |
54,927 | 27,240 | 45,035 | (700 | ) | 126,502 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Earnings before equity in earnings of nonconsolidated subsidiaries | 104,417 | 50,821 | 78,113 | (563 | ) | 232,788 | |||||||||||
Equity in earnings of nonconsolidated subsidiaries | 129,655 | 37,925 | 5,150 | (166,602 | ) | 6,128 | |||||||||||
| | | | | | | | | | | | | | | | | |
Net earnings | 234,072 | 88,746 | 83,263 | (167,165 | ) | 238,916 | |||||||||||
Less: Earnings attributable to noncontrolling interests | — | — | (4,844 | ) | — | (4,844 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net earnings attributable to Valmont Industries, Inc | $ | 234,072 | $ | 88,746 | $ | 78,419 | $ | (167,165 | ) | $ | 234,072 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||
For the Year ended December 27, 2014 | |||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||
Net earnings | $ | 183,976 | $ | 67,725 | $ | 85,840 | $ | (148,223 | ) | $ | 189,318 | ||||||
| | | | | | | | | | | | | | | | | |
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||
Unrealized gains (losses) arising during the period | — | (51,536 | ) | (30,739 | ) | (82,275 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
— | (51,536 | ) | (30,739 | ) | — | (82,275 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Unrealized loss on cash flow hedge: | |||||||||||||||||
Loss arising during the period | 983 | 983 | |||||||||||||||
— | — | — | |||||||||||||||
Gain on cash flow hedges | 4,837 | — | — | — | 4,837 | ||||||||||||
Amortization cost included in interest expense | 594 | 594 | |||||||||||||||
| | | | | | | | | | | | | | | | | |
6,414 | — | — | — | 6,414 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Actuarial gain (loss) in defined benefit pension plan liability | — | (13,709 | ) | (13,709 | ) | ||||||||||||
Equity in other comprehensive income | (93,162 | ) | 93,162 | — | |||||||||||||
| | | | | | | | | | | | | | | | | |
Other comprehensive income (loss) | (86,748 | ) | (51,536 | ) | (44,448 | ) | 93,162 | (89,570 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income | 97,228 | 16,189 | 41,392 | (55,061 | ) | 99,748 | |||||||||||
Comprehensive income attributable to noncontrolling interests | (2,520 | ) | (2,520 | ) | |||||||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income attributable to Valmont Industries, Inc. | $ | 97,228 | $ | 16,189 | $ | $ | $ | (55,061 | ) | $ | 97,228 | ||||||
38,872 | |||||||||||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||
For the Year ended December 28, 2013 | |||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||
Net earnings | $ | 278,489 | $ | 97,955 | $ | 68,597 | $ | (164,581 | ) | $ | 280,460 | ||||||
| | | | | | | | | | | | | | | | | |
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||
Unrealized gains (losses) arising during the period | — | (4,772 | ) | (66,926 | ) | — | (71,698 | ) | |||||||||
Realized loss on sale of investment in foreign entity included in other expense | — | — | 5,194 | — | 5,194 | ||||||||||||
Realized loss on deconsolidation of subsidiary | 8,559 | 8,559 | |||||||||||||||
| | | | | | | | | | | | | | | | | |
— | (4,772 | ) | (53,173 | ) | — | (57,945 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Unrealized loss on cash flow hedge: | |||||||||||||||||
Amortization cost included in interest expense | 400 | — | — | — | 400 | ||||||||||||
| | | | | | | | | | | | | | | | | |
400 | — | — | — | 400 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Actuarial gain (loss) in defined benefit pension plan liability | — | — | (41,282 | ) | — | (41,282 | ) | ||||||||||
Equity in other comprehensive income | (106,430 | ) | — | — | 106,430 | — | |||||||||||
| | | | | | | | | | | | | | | | | |
Other comprehensive income (loss) | (106,030 | ) | (4,772 | ) | (94,455 | ) | 106,430 | (98,827 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income | 172,459 | 93,183 | (25,858 | ) | (58,151 | ) | 181,633 | ||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | (9,174 | ) | — | (9,174 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income attributable to Valmont Industries, Inc. | $ | 172,459 | $ | 93,183 | $ | (35,032 | ) | $ | (58,151 | ) | $ | 172,459 | |||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||
For the Year ended December 29, 2012 | |||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||
Net earnings | $ | 234,072 | $ | 88,746 | $ | 83,263 | $ | (167,165 | ) | $ | 238,916 | ||||||
| | | | | | | | | | | | | | | | | |
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||
Unrealized gains (losses) arising during the period | — | 884 | 14,857 | — | 15,741 | ||||||||||||
| | | | | | | | | | | | | | | | | |
— | 884 | 14,857 | — | 15,741 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Unrealized loss on cash flow hedge: | |||||||||||||||||
Amortization cost included in interest expense | 400 | 400 | |||||||||||||||
— | — | — | |||||||||||||||
| | | | | | | | | | | | | | | | | |
400 | — | — | — | 400 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Actuarial gain (loss) in defined benefit pension plan liability | — | — | (35,020 | ) | — | (35,020 | ) | ||||||||||
Equity in other comprehensive income | (20,514 | ) | — | — | 20,514 | — | |||||||||||
| | | | | | | | | | | | | | | | | |
Other comprehensive income (loss) | (20,114 | ) | 884 | (20,163 | ) | 20,514 | (18,879 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income | 213,958 | 89,630 | 63,100 | (146,651 | ) | 220,037 | |||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | (6,079 | ) | — | (6,079 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income attributable to Valmont Industries, Inc. | $ | 213,958 | $ | 89,630 | $ | 57,021 | $ | (146,651 | ) | $ | 213,958 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED BALANCE SHEETS | |||||||||||||||||
For the Year ended December 27, 2014 | |||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Total | |||||||||||||
Guarantors | |||||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 69,869 | $ | 2,157 | $ | 299,553 | $ | — | $ | 371,579 | |||||||
Receivables, net | 158,316 | 68,414 | 310,188 | — | 536,918 | ||||||||||||
Inventories | 127,859 | 54,914 | 177,512 | (763 | ) | 359,522 | |||||||||||
Prepaid expenses | 7,087 | 502 | 49,323 | — | 56,912 | ||||||||||||
Refundable and deferred income taxes | 53,307 | 6,194 | 8,509 | — | 68,010 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current assets | 416,438 | 132,181 | 845,085 | (763 | ) | 1,392,941 | |||||||||||
| | | | | | | | | | | | | | | | | |
Property, plant and equipment, at cost | 556,658 | 124,182 | 458,729 | — | 1,139,569 | ||||||||||||
Less accumulated depreciation and amortization | 319,899 | 65,493 | 147,724 | — | 533,116 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Net property, plant and equipment | 236,759 | 58,689 | 311,005 | — | 606,453 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Goodwill | 20,108 | 107,542 | 257,461 | 385,111 | |||||||||||||
Other intangible assets | 292 | 43,644 | 158,068 | 202,004 | |||||||||||||
Investment in subsidiaries and intercompany accounts | 1,446,989 | 825,236 | 887,055 | (3,159,280 | ) | — | |||||||||||
Other assets | 46,587 | — | 96,572 | 143,159 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Total assets | $ | 2,167,173 | $ | 1,167,292 | $ | 2,555,246 | $ | (3,160,043 | ) | $ | 2,729,668 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Current installments of long-term debt | $ | 213 | $ | — | $ | 968 | $ | — | $ | 1,181 | |||||||
Notes payable to banks | — | — | 13,952 | — | 13,952 | ||||||||||||
Accounts payable | 59,893 | 15,151 | 121,521 | 196,565 | |||||||||||||
Accrued employee compensation and benefits | 48,169 | 5,385 | 34,396 | — | 87,950 | ||||||||||||
Accrued expenses | 32,616 | 6,052 | 49,812 | — | 88,480 | ||||||||||||
Dividends payable | 9,086 | — | — | — | 9,086 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 149,977 | 26,588 | 220,649 | — | 397,214 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Deferred income taxes | 5,584 | 28,988 | 37,225 | — | 71,797 | ||||||||||||
Long-term debt, excluding current installments | 759,895 | — | 6,759 | — | 766,654 | ||||||||||||
Defined benefit pension liability | — | — | 150,124 | — | 150,124 | ||||||||||||
Deferred compensation | 41,803 | — | 6,129 | 47,932 | |||||||||||||
Other noncurrent liabilities | 8,081 | — | 37,461 | — | 45,542 | ||||||||||||
Commitments and contingencies | |||||||||||||||||
Shareholders' equity: | |||||||||||||||||
Common stock of $1 par value | 27,900 | 457,950 | 648,682 | (1,106,633 | ) | 27,900 | |||||||||||
Additional paid-in capital | — | 150,286 | 1,098,408 | (1,248,694 | ) | — | |||||||||||
Retained earnings | 1,718,662 | 552,676 | 397,302 | (949,978 | ) | 1,718,662 | |||||||||||
Accumulated other comprehensive income | (134,433 | ) | (49,196 | ) | (96,065 | ) | 145,261 | (134,433 | ) | ||||||||
Treasury stock | (410,296 | ) | — | — | — | (410,296 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Total Valmont Industries, Inc. shareholders' equity | 1,201,833 | 1,111,716 | 2,048,327 | (3,160,043 | ) | 1,201,833 | |||||||||||
| | | | | | | | | | | | | | | | | |
Noncontrolling interest in consolidated subsidiaries | 48,572 | 48,572 | |||||||||||||||
| | | | | | | | | | | | | | | | | |
Total shareholders' equity | 1,201,833 | 1,111,716 | 2,096,899 | (3,160,043 | ) | 1,250,405 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities and shareholders' equity | $ | 2,167,173 | $ | 1,167,292 | $ | 2,555,246 | $ | (3,160,043 | ) | $ | 2,729,668 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED BALANCE SHEETS | |||||||||||||||||
For the Year ended December 28, 2013 | |||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Total | |||||||||||||
Guarantors | |||||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 215,576 | $ | 29,797 | $ | 368,333 | $ | — | $ | 613,706 | |||||||
Receivables, net | 139,179 | 108,600 | 267,661 | — | 515,440 | ||||||||||||
Inventories | 132,953 | 70,231 | 176,816 | — | 380,000 | ||||||||||||
Prepaid expenses | 4,735 | 932 | 17,330 | — | 22,997 | ||||||||||||
Refundable and deferred income taxes | 41,167 | 8,351 | 16,179 | — | 65,697 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current assets | 533,610 | 217,911 | 846,319 | — | 1,597,840 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Property, plant and equipment, at cost | 522,734 | 125,764 | 368,628 | — | 1,017,126 | ||||||||||||
Less accumulated depreciation and amortization | 300,066 | 61,520 | 121,330 | — | 482,916 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Net property, plant and equipment | 222,668 | 64,244 | 247,298 | — | 534,210 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Goodwill | 20,108 | 107,542 | 221,982 | — | 349,632 | ||||||||||||
Other intangible assets | 346 | 48,461 | 122,110 | — | 170,917 | ||||||||||||
Investment in subsidiaries and intercompany accounts | 1,417,425 | 791,450 | 827,508 | (3,036,388 | ) | — | |||||||||||
Other assets | 30,759 | — | 112,513 | (19,377 | ) | 123,895 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total assets | $ | 2,224,916 | $ | 1,229,608 | $ | 2,377,730 | $ | (3,055,760 | ) | $ | 2,776,494 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Current installments of long-term debt | $ | 188 | $ | — | $ | 14 | $ | — | $ | 202 | |||||||
Notes payable to banks | — | — | 19,024 | — | 19,024 | ||||||||||||
Accounts payable | 62,153 | 20,365 | 133,603 | — | 216,121 | ||||||||||||
Accrued employee compensation and benefits | 76,370 | 13,713 | 32,884 | — | 122,967 | ||||||||||||
Accrued expenses | 28,362 | 7,315 | 35,883 | — | 71,560 | ||||||||||||
Income Taxes Payable | — | 19,377 | — | (19,377 | ) | — | |||||||||||
Dividends payable | 6,706 | — | — | — | 6,706 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 173,779 | 60,770 | 221,408 | (19,377 | ) | 436,580 | |||||||||||
| | | | | | | | | | | | | | | | | |
Deferred income taxes | 18,983 | 29,310 | 30,631 | — | 78,924 | ||||||||||||
Long-term debt, excluding current installments | 470,175 | — | 732 | — | 470,907 | ||||||||||||
Defined benefit pension liability | — | — | 154,397 | — | 154,397 | ||||||||||||
Deferred compensation | 32,339 | — | 6,770 | — | 39,109 | ||||||||||||
Other noncurrent liabilities | 7,615 | — | 44,116 | — | 51,731 | ||||||||||||
Commitments and contingencies | |||||||||||||||||
Shareholders' equity: | |||||||||||||||||
Common stock of $1 par value | 27,900 | 457,950 | 648,682 | (1,106,632 | ) | 27,900 | |||||||||||
Additional paid-in capital | — | 150,286 | 891,236 | (1,041,522 | ) | — | |||||||||||
Retained earnings | 1,562,670 | 528,952 | 472,162 | (1,001,114 | ) | 1,562,670 | |||||||||||
Accumulated other comprehensive income | (47,685 | ) | 2,340 | (115,225 | ) | 112,885 | (47,685 | ) | |||||||||
Treasury stock | (20,860 | ) | — | — | — | (20,860 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Total Valmont Industries, Inc. shareholders' equity | 1,522,025 | 1,139,528 | 1,896,855 | (3,036,383 | ) | 1,522,025 | |||||||||||
| | | | | | | | | | | | | | | | | |
Noncontrolling interest in consolidated subsidiaries | — | — | 22,821 | — | 22,821 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total shareholders' equity | 1,522,025 | 1,139,528 | 1,919,676 | (3,036,383 | ) | 1,544,846 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities and shareholders' equity | $ | 2,224,916 | $ | 1,229,608 | $ | 2,377,730 | $ | (3,055,760 | ) | $ | 2,776,494 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
For the Year Ended December 27, 2014 | |||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net earnings | $ | 183,976 | $ | 67,725 | $ | 85,840 | $ | (148,223 | ) | $ | 189,318 | ||||||
Adjustments to reconcile net earnings to net cash flows from operations: | |||||||||||||||||
Depreciation and amortization | 24,509 | 12,926 | 51,893 | — | 89,328 | ||||||||||||
Loss on investment | — | — | 3,795 | — | 3,795 | ||||||||||||
Non-cash debt refinancing costs | (2,478 | ) | — | — | — | (2,478 | ) | ||||||||||
Stock-based compensation | 6,730 | — | — | — | 6,730 | ||||||||||||
Defined benefit pension plan expense | — | — | 2,638 | — | 2,638 | ||||||||||||
Contribution to defined benefit pension plan | — | — | (18,173 | ) | — | (18,173 | ) | ||||||||||
Change in fair value of contingent consideration | — | — | (4,300 | ) | — | (4,300 | ) | ||||||||||
(Gain) loss on sale of property, plant and equipment | 145 | 143 | 104 | — | 392 | ||||||||||||
Equity in earnings in nonconsolidated subsidiaries | (129,031 | ) | (19,509 | ) | (63 | ) | 148,574 | (29 | ) | ||||||||
Deferred income taxes | (1,474 | ) | 1,866 | 4,859 | — | 5,251 | |||||||||||
Changes in assets and liabilities (net of the effect from acquisitions): | |||||||||||||||||
Receivables | (19,136 | ) | 40,186 | (20,143 | ) | — | 907 | ||||||||||
Inventories | 5,094 | 15,317 | 1,047 | — | 21,458 | ||||||||||||
Prepaid expenses | (2,352 | ) | 429 | (11,671 | ) | — | (13,594 | ) | |||||||||
Accounts payable | (2,260 | ) | (5,212 | ) | (26,849 | ) | — | (34,321 | ) | ||||||||
Accrued expenses | (21,448 | ) | (9,590 | ) | (3,740 | ) | — | (34,778 | ) | ||||||||
Other noncurrent liabilities | 622 | — | 1,133 | — | 1,755 | ||||||||||||
Income taxes payable | (24,945 | ) | (19,417 | ) | 4,559 | — | (39,803 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from operating activities | 17,952 | 84,864 | 70,929 | 351 | 174,096 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows from investing activities: | |||||||||||||||||
Purchase of property, plant and equipment | (41,260 | ) | (2,823 | ) | (28,940 | ) | — | (73,023 | ) | ||||||||
Acquisitions, net of cash acquired | — | — | (185,710 | ) | — | (185,710 | ) | ||||||||||
Proceeds from sale of assets | 43 | 126 | 2,320 | — | 2,489 | ||||||||||||
Other, net | 34,735 | (73,799 | ) | 38,796 | (351 | ) | (619 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from investing activities | (6,482 | ) | (76,496 | ) | (173,534 | ) | (351 | ) | (256,863 | ) | |||||||
| | | | | | | | | | | | | | | | | |
Cash flows from financing activities: | |||||||||||||||||
Net borrowings under short-term agreements | — | — | (4,472 | ) | — | (4,472 | ) | ||||||||||
Proceeds from long-term borrowings | 652,540 | — | (329 | ) | — | 652,211 | |||||||||||
Principal payments on long-term obligations | (356,994 | ) | — | (864 | ) | — | (357,858 | ) | |||||||||
Settlement of financial derivative | 4,981 | — | — | — | 4,981 | ||||||||||||
Dividends paid | (32,443 | ) | — | — | — | (32,443 | ) | ||||||||||
Intercompany dividends | 116,995 | (36,600 | ) | (80,395 | ) | — | — | ||||||||||
Intercompany interest on long-term note | — | 648 | (648 | ) | — | — | |||||||||||
Intercompany capital contribution | (143,000 | ) | — | 143,000 | — | — | |||||||||||
Dividends to noncontrolling interest | — | — | (2,919 | ) | — | (2,919 | ) | ||||||||||
Debt issuance fees | (7,644 | ) | — | — | — | (7,644 | ) | ||||||||||
Proceeds from exercises under stock plans | 14,572 | — | — | — | 14,572 | ||||||||||||
Excess tax benefits from stock option exercises | 4,264 | — | — | — | 4,264 | ||||||||||||
Purchase of treasury shares | (395,045 | ) | — | — | — | (395,045 | ) | ||||||||||
Purchase of common treasury shares—stock plan exercises | (15,403 | ) | — | — | — | (15,403 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from financing activities | (157,177 | ) | (35,952 | ) | 53,373 | — | (139,756 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | — | (56 | ) | (19,548 | ) | — | (19,604 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net change in cash and cash equivalents | (145,707 | ) | (27,640 | ) | (68,780 | ) | — | (242,127 | ) | ||||||||
Cash and cash equivalents—beginning of year | 215,576 | 29,797 | 368,333 | — | 613,706 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents—end of year | $ | 69,869 | $ | 2,157 | $ | 299,553 | $ | — | $ | 371,579 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
For the Year Ended December 28, 2013 | |||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net earnings | $ | 278,489 | $ | 97,955 | $ | 68,597 | $ | (164,581 | ) | $ | 280,460 | ||||||
Adjustments to reconcile net earnings to net cash flows from operations: | |||||||||||||||||
Depreciation and amortization | 21,270 | 12,862 | 43,304 | — | 77,436 | ||||||||||||
Deconsolidation of subsidiary | — | — | 12,011 | — | 12,011 | ||||||||||||
Impairment of property, plant and equipment | — | — | 12,161 | — | 12,161 | ||||||||||||
Stock-based compensation | 6,513 | — | — | — | 6,513 | ||||||||||||
Defined benefit pension plan expense | — | — | 6,569 | — | 6,569 | ||||||||||||
Contribution to defined benefit pension plan | — | — | (17,619 | ) | — | (17,619 | ) | ||||||||||
(Gain) loss on sale of property, plant and equipment | 885 | 42 | (5,245 | ) | — | (4,318 | ) | ||||||||||
Equity in earnings in nonconsolidated subsidiaries | (150,512 | ) | (16,417 | ) | (494 | ) | 166,588 | (835 | ) | ||||||||
Deferred income taxes | (8,948 | ) | (19 | ) | (1,174 | ) | — | (10,141 | ) | ||||||||
Changes in assets and liabilities (net of the effect from acquisitions): | — | ||||||||||||||||
Receivables | 6,181 | (22,259 | ) | 3,370 | — | (12,708 | ) | ||||||||||
Inventories | 12,966 | 1,757 | (1,292 | ) | — | 13,431 | |||||||||||
Prepaid expenses | 2,417 | 98 | 1,600 | — | 4,115 | ||||||||||||
Accounts payable | (10,458 | ) | (1,643 | ) | 24,549 | — | 12,448 | ||||||||||
Accrued expenses | 19,191 | 5,824 | (3,317 | ) | — | 21,698 | |||||||||||
Other noncurrent liabilities | 3,201 | — | (4,675 | ) | — | (1,474 | ) | ||||||||||
Income taxes payable | (5,908 | ) | (3,251 | ) | 5,029 | 825 | (3,305 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from operating activities | 175,287 | 74,949 | 143,374 | 2,832 | 396,442 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows from investing activities: | |||||||||||||||||
Purchase of property, plant and equipment | (76,582 | ) | (4,439 | ) | (25,732 | ) | — | (106,753 | ) | ||||||||
Acquisitions, net of cash acquired | — | — | (63,152 | ) | — | (63,152 | ) | ||||||||||
Proceeds from sale of assets | 794 | 35 | 36,753 | — | 37,582 | ||||||||||||
Other, net | 86,258 | (83,327 | ) | 503 | (2,832 | ) | 602 | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from investing activities | 10,470 | (87,731 | ) | (51,628 | ) | (2,832 | ) | (131,721 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Cash flows from financing activities: | |||||||||||||||||
Net borrowings under short-term agreements | — | — | 5,510 | — | 5,510 | ||||||||||||
Proceeds from long-term borrowings | — | — | 274 | — | 274 | ||||||||||||
Principal payments on long-term obligations | (187 | ) | — | (404 | ) | — | (591 | ) | |||||||||
Cash decrease due to deconsolidation of subsidiary | — | — | (11,615 | ) | — | (11,615 | ) | ||||||||||
Dividends paid | (25,414 | ) | — | — | — | (25,414 | ) | ||||||||||
Intercompany dividends | 8,947 | 20,133 | (29,080 | ) | — | — | |||||||||||
Intercompany interest on long-term note | — | 1,229 | (1,229 | ) | — | — | |||||||||||
Intercompany principal payment on long-term note | — | 22,430 | (22,430 | ) | — | — | |||||||||||
Dividends to noncontrolling interest | — | — | (1,767 | ) | — | (1,767 | ) | ||||||||||
Purchase of noncontrolling interest | — | — | (9,324 | ) | — | (9,324 | ) | ||||||||||
Proceeds from exercises under stock plans | 16,348 | — | — | — | 16,348 | ||||||||||||
Excess tax benefits from stock option exercises | 5,306 | — | — | — | 5,306 | ||||||||||||
Purchase of common treasury shares—stock plan exercises | (16,107 | ) | — | — | — | (16,107 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from financing activities | (11,107 | ) | 43,792 | (70,065 | ) | — | (37,380 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | — | (7,927 | ) | (19,837 | ) | — | (27,764 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net change in cash and cash equivalents | 174,650 | 23,083 | 1,844 | — | 199,577 | ||||||||||||
Cash and cash equivalents—beginning of year | 40,926 | 6,714 | 366,489 | — | 414,129 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents—end of year | $ | 215,576 | $ | 29,797 | $ | 368,333 | $ | — | $ | 613,706 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
For the Year Ended December 29, 2012 | |||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||
Cash flows from operations: | |||||||||||||||||
Net earnings | $ | 234,072 | $ | 88,746 | $ | 83,263 | $ | (167,165 | ) | $ | 238,916 | ||||||
Adjustments to reconcile net earnings to net cash flows from operations: | |||||||||||||||||
Depreciation and amortization | 19,121 | 12,923 | 38,174 | — | 70,218 | ||||||||||||
Stock-based compensation | 5,829 | — | — | — | 5,829 | ||||||||||||
Defined benefit pension plan expense | — | — | 4,281 | — | 4,281 | ||||||||||||
Contribution to defined benefit pension plan | — | — | (11,591 | ) | — | (11,591 | ) | ||||||||||
Loss on sale of property, plant and equipment | 89 | (17 | ) | 249 | — | 321 | |||||||||||
Equity in earnings in nonconsolidated subsidiaries | (129,655 | ) | (37,925 | ) | (5,150 | ) | 166,602 | (6,128 | ) | ||||||||
Deferred income taxes | (4,721 | ) | (496 | ) | 8,937 | — | 3,720 | ||||||||||
Other | — | — | — | — | — | ||||||||||||
Changes in assets and liabilities, before acquisitions: | |||||||||||||||||
Receivables | (21,751 | ) | (32,833 | ) | (30,306 | ) | — | (84,890 | ) | ||||||||
Inventories | (20,756 | ) | 5,850 | 1,293 | — | (13,613 | ) | ||||||||||
Prepaid expenses | (3,705 | ) | (20 | ) | 4,968 | — | 1,243 | ||||||||||
Accounts payable | 4,446 | 578 | (11,273 | ) | — | (6,249 | ) | ||||||||||
Accrued expenses | 20,339 | 945 | (644 | ) | — | 20,640 | |||||||||||
Other noncurrent liabilities | 123 | — | (4,473 | ) | — | (4,350 | ) | ||||||||||
Income taxes payable (refundable) | (18,979 | ) | 350 | (1,921 | ) | (700 | ) | (21,250 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from operations | 84,452 | 38,101 | 75,807 | (1,263 | ) | 197,097 | |||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows from investing activities: | |||||||||||||||||
Purchase of property, plant and equipment | (43,590 | ) | (22,197 | ) | (31,287 | ) | — | (97,074 | ) | ||||||||
Acquisitions, net of cash acquired | — | — | (45,687 | ) | — | (45,687 | ) | ||||||||||
Proceeds from sale of assets | 113 | 39 | 5,873 | — | 6,025 | ||||||||||||
Other, net | (10,192 | ) | (18,397 | ) | 27,370 | 1,263 | 44 | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from investing activities | (53,669 | ) | (40,555 | ) | (43,731 | ) | 1,263 | (136,692 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Cash flows from financing activities: | |||||||||||||||||
Net borrowings under short-term agreements | — | — | 1,828 | — | 1,828 | ||||||||||||
Proceeds from long-term borrowings | 39,000 | — | 126 | — | 39,126 | ||||||||||||
Principal payments on long-term obligations | (39,197 | ) | — | (367 | ) | — | (39,564 | ) | |||||||||
Dividends paid | (21,520 | ) | — | — | — | (21,520 | ) | ||||||||||
Dividends to noncontrolling interest | — | — | (1,944 | ) | — | (1,944 | ) | ||||||||||
Proceeds from sale of partial ownership interest | — | — | 1,404 | — | 1,404 | ||||||||||||
Debt issuance fees | (1,747 | ) | — | — | — | (1,747 | ) | ||||||||||
Proceeds from exercises under stock plans | 21,827 | — | — | — | 21,827 | ||||||||||||
Excess tax benefits from stock option exercises | 5,494 | — | — | — | 5,494 | ||||||||||||
Purchase of common treasury shares—stock plan exercises | (21,259 | ) | — | — | — | (21,259 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from financing activities | (17,402 | ) | — | 1,047 | — | (16,355 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | — | 2,285 | 4,900 | — | 7,185 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Net change in cash and cash equivalents | 13,381 | (169 | ) | 38,023 | — | 51,235 | |||||||||||
Cash and cash equivalents—beginning of year | 27,545 | 6,883 | 328,466 | — | 362,894 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents—end of year | $ | 40,926 | $ | 6,714 | $ | 366,489 | $ | — | $ | 414,129 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
QUARTERLY_FINANCIAL_DATA_Unaud
QUARTERLY FINANCIAL DATA (Unaudited) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 27, 2014 | ||||||||||||||||||||||||||
QUARTERLY FINANCIAL DATA (Unaudited) | ||||||||||||||||||||||||||
QUARTERLY FINANCIAL DATA (Unaudited) | (20) QUARTERLY FINANCIAL DATA (Unaudited) | |||||||||||||||||||||||||
Net Earnings | ||||||||||||||||||||||||||
Per Share | Stock Price | |||||||||||||||||||||||||
Gross | Dividends | |||||||||||||||||||||||||
Net Sales | Profit | Amount | Basic | Diluted | High | Low | Declared | |||||||||||||||||||
2014 | ||||||||||||||||||||||||||
First | $ | 751,740 | $ | 206,982 | $ | 55,980 | $ | 2.10 | $ | 2.08 | $ | 155.64 | $ | 141.74 | $ | 0.250 | ||||||||||
Second | 842,599 | 220,477 | 63,976 | 2.40 | 2.38 | 163.23 | 143.02 | 0.375 | ||||||||||||||||||
Third(1) | 765,668 | 199,500 | 23,559 | 0.93 | 0.92 | 155.62 | 131.68 | 0.375 | ||||||||||||||||||
Fourth | 763,136 | 181,158 | 40,461 | 1.67 | 1.66 | 139.31 | 123.44 | 0.375 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Year | $ | 3,123,143 | $ | 808,117 | $ | 183,976 | $ | 7.15 | $ | 7.09 | $ | 163.23 | $ | 123.44 | $ | 1.375 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
2013 | ||||||||||||||||||||||||||
First | $ | 819,630 | $ | 235,369 | $ | 77,569 | $ | 2.92 | $ | 2.89 | $ | 164.93 | $ | 133.40 | $ | 0.225 | ||||||||||
Second | 878,659 | 261,471 | 89,563 | 3.36 | 3.33 | 157.99 | 132.16 | 0.250 | ||||||||||||||||||
Third | 778,032 | 225,564 | 56,489 | 2.12 | 2.10 | 153.16 | 133.38 | 0.250 | ||||||||||||||||||
Fourth(2) | 827,890 | 222,824 | 54,868 | 2.06 | 2.04 | 150.58 | 129.00 | 0.250 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Year | $ | 3,304,211 | $ | 945,228 | $ | 278,489 | $ | 10.45 | $ | 10.35 | $ | 164.93 | $ | 129.00 | $ | 0.975 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per share are computed independently for each of the quarters. Therefore, the sum of the quarterly earnings per share may not equal the total for the year. | ||||||||||||||||||||||||||
-1 | The third quarter of 2014 included costs associated with refinancing of our long-term debt of $24.2 million after tax ($0.95 per share) and a non-cash fair market value adjustment for Delta EMD shares of $1.4 million after tax ($.05 per share). | |||||||||||||||||||||||||
-2 | The fourth quarter of 2013 included a non-cash after-tax loss of $12,011 ($.45 per share) associated with the deconsolidation of Delta EMD Pty. Ltd. and an after-tax loss of $4,569 ($0.17 per share) related to a fixed asset impairment loss. | |||||||||||||||||||||||||
Schedule_IIValuation_and_Quali
Schedule II-Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 27, 2014 | ||||||||||||||||
Schedule II-Valuation and Qualifying Accounts | ||||||||||||||||
Schedule II-Valuation and Qualifying Accounts | Valuation and Qualifying Accounts | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Balance at | Charged to | Deductions | Balance at | |||||||||||||
beginning of | profit and | from | close of | |||||||||||||
period | loss | reserves* | period | |||||||||||||
Fifty-two weeks ended December 27, 2014 | ||||||||||||||||
Reserve deducted in balance sheet from the asset to which it applies— | ||||||||||||||||
Allowance for doubtful receivables | $ | 10,369 | 1,780 | (2,227 | ) | $ | 9,922 | |||||||||
Allowance for deferred income tax asset valuation | 107,767 | (3,280 | ) | — | 104,487 | |||||||||||
Fifty-two weeks ended December 28, 2013 | ||||||||||||||||
Reserve deducted in balance sheet from the asset to which it applies— | ||||||||||||||||
Allowance for doubtful receivables | $ | 7,898 | 4,674 | (2,203 | ) | $ | 10,369 | |||||||||
Allowance for deferred income tax asset valuation | 120,979 | (13,212 | ) | — | 107,767 | |||||||||||
Fifty-two weeks ended December 29, 2012 | ||||||||||||||||
Reserve deducted in balance sheet from the asset to which it applies— | ||||||||||||||||
Allowance for doubtful receivables | $ | 7,555 | 1,336 | (993 | ) | $ | 7,898 | |||||||||
Allowance for deferred income tax asset valuation | 123,522 | (2,543 | ) | — | 120,979 | |||||||||||
* | The deductions from reserves are net of recoveries. | |||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
Principles of Consolidation | Principles of Consolidation | |||||||||||||
The consolidated financial statements include the accounts of Valmont Industries, Inc. and its wholly and majority-owned subsidiaries (the Company). The investment in Delta EMD Pty. Ltd ("EMD") was recorded at fair value subsequent to its deconsolidation in 2013. Investments in other 20% to 50% owned affiliates and joint ventures are accounted for by the equity method. Investments in less than 20% owned affiliates are accounted for by the cost method. All significant intercompany items have been eliminated. | ||||||||||||||
Cash overdrafts | Cash overdrafts | |||||||||||||
Cash book overdrafts totaling $18,038 and $21,713 were classified as accounts payable at December 27, 2014 and December 28, 2013, respectively. The Company's policy is to report the change in book overdrafts as an operating activity in the Consolidated Statements of Cash Flows. | ||||||||||||||
Segments | Segments | |||||||||||||
The Company has four reportable segments based on its management structure. Each segment is global in nature with a manager responsible for segment operational performance and allocation of capital within the segment. Reportable segments are as follows: | ||||||||||||||
ENGINEERED INFRASTRUCTURE PRODUCTS: This segment consists of the manufacture of engineered metal structures and components for the global lighting and traffic, wireless communication, roadway safety and access systems applications; | ||||||||||||||
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. | ||||||||||||||
In addition to these four reportable segments, there are other businesses and activities that individually are not more than 10% of consolidated sales. These operations include the manufacture of forged steel grinding media for the mining industry, tubular products for industrial customers, electrolytic manganese dioxide for disposable batteries and the distribution of industrial fasteners. These operations collectively are reported in the "Other" category. | ||||||||||||||
Fiscal Year | Fiscal Year | |||||||||||||
The Company operates on a 52 or 53 week fiscal year with each year ending on the last Saturday in December. Accordingly, the Company's fiscal years ended December 27, 2014 and December 28, 2013 consisted of 52 weeks. | ||||||||||||||
Accounts Receivable | Accounts Receivable | |||||||||||||
Accounts receivable are reported on the balance sheet net of any allowance for doubtful accounts. Allowances are maintained in amounts considered to be appropriate in relation to the outstanding receivables based on age of the receivable, economic conditions and customer credit quality. | ||||||||||||||
Inventories | Inventories | |||||||||||||
Approximately 44% and 43% of inventory is valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market as of December 27, 2014 and December 28, 2013, respectively. All other inventory is valued at the lower of cost, determined on the first-in, first-out (FIFO) method or market. Finished goods and manufactured goods inventories include the costs of acquired raw materials and related factory labor and overhead charges required to convert raw materials to manufactured and finished goods. The excess of replacement cost of inventories over the LIFO value is approximately $47,178 and $45,204 at December 27, 2014 and December 28, 2013, respectively. | ||||||||||||||
Long-Lived Assets | Long-Lived Assets | |||||||||||||
Property, plant and equipment are recorded at historical cost. The Company generally uses the straight-line method in computing depreciation and amortization for financial reporting purposes and accelerated methods for income tax purposes. The annual provisions for depreciation and amortization have been computed principally in accordance with the following ranges of asset lives: buildings and improvements 15 to 40 years, machinery and equipment 3 to 12 years, transportation equipment 3 to 24 years, office furniture and equipment 3 to 7 years and intangible assets 5 to 20 years. Depreciation expense in fiscal 2014, 2013 and 2012 was $73,395, $62,291 and $55,559, respectively. | ||||||||||||||
An impairment loss is recognized if the carrying amount of an asset may not be recoverable and exceeds estimated future undiscounted cash flows of the asset. A recognized impairment loss reduces the carrying amount of the asset to its fair value. There were no impairment losses recorded in 2014. In November 2013, it was determined that the carrying amount of certain fixed assets of Delta EMD, Ltd. were not recoverable and an impairment loss of $12,161 was recorded to reduce the carrying amount of the fixed assets to fair value. The impairment was a result of continued global oversupply of manganese dioxide in the market, increased price competition and increasing input costs. In addition, a major customer advised us that its purchases of EMD in 2014 would be substantially below prior years. This charge was recorded in Product Cost of Sales in the Consolidated Statements of Earnings. | ||||||||||||||
The Company evaluates its reporting units for impairment of goodwill during the third fiscal quarter of each year. Reporting units are evaluated using after-tax operating cash flows (less capital expenditures) discounted to present value. Indefinite-lived intangible assets are assessed separately from goodwill as part of the annual impairment testing, using a relief-from-royalty method. If the underlying assumptions related to the valuation of a reporting unit's goodwill or an indefinite-lived intangible asset change materially before or after the annual impairment testing, the reporting unit or asset is evaluated for potential impairment. In these evaluations, management considers recent operating performance, expected future performance, industry conditions and other indicators of potential impairment. | ||||||||||||||
Income Taxes | Income Taxes | |||||||||||||
The Company uses the asset and liability method to calculate deferred income taxes. Deferred tax assets and liabilities are recognized on temporary differences between financial statement and tax bases of assets and liabilities using enacted tax rates. The effect of tax rate changes on deferred tax assets and liabilities is recognized in income during the period that includes the enactment date. | ||||||||||||||
Warranties | Warranties | |||||||||||||
The Company's provision for product warranty reflects management's best estimate of probable liability under its product warranties. Estimated future warranty costs are recorded at the time a sale is recognized. Future warranty liability is determined based on applying historical claim rate experience to units sold that are still within the warranty period. In addition, the Company records provisions for known warranty claims. | ||||||||||||||
Pension Benefits | Pension Benefits | |||||||||||||
Certain expenses are incurred in connection with a defined benefit pension plan. In order to measure expense and the related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as current facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits. | ||||||||||||||
Derivative Instrument | Derivative Instrument | |||||||||||||
The Company may enter into derivative financial instruments to manage risk associated with fluctuation in interest rates, foreign currency rates or commodities. Where applicable, the Company may elect to account for such derivatives as either a cash flow or fair value hedge. | ||||||||||||||
Comprehensive Income | Comprehensive Income | |||||||||||||
Comprehensive income includes net income, currency translation adjustments, certain derivative-related activity and changes in net actuarial gains/losses from a pension plan. Results of operations for foreign subsidiaries are translated using the average exchange rates during the period. Assets and liabilities are translated at the exchange rates in effect on the balance sheet dates. The components of accumulated other comprehensive income (loss) consisted of the following: | ||||||||||||||
Foreign | Unrealized | Defined | Accumulated | |||||||||||
Currency | Gain (Loss) on | Benefit | Other | |||||||||||
Translation | Cash Flow | Pension Plan | Comprehensive | |||||||||||
Adjustments | Hedge | Income | ||||||||||||
Balance at December 28, 2013 | $ | (20,165 | ) | $ | (2,535 | ) | $ | (24,985 | ) | $ | (47,685 | ) | ||
Current-period comprehensive income (loss) | (79,453 | ) | 6,414 | (13,709 | ) | (86,748 | ) | |||||||
| | | | | | | | | | | | | | |
Balance at December 27, 2014 | $ | (99,618 | ) | $ | 3,879 | $ | (38,694 | ) | $ | (134,433 | ) | |||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Revenue Recognition | Revenue Recognition | |||||||||||||
Revenue is recognized upon shipment of the product or delivery of the service to the customer, which coincides with passage of title and risk of loss to the customer. Customer acceptance provisions exist only in the design stage of our products. Acceptance of the design by the customer is required before the product is manufactured and delivered to the customer. We are not entitled to any compensation solely based on design of the product and we do not recognize any revenue associated with the design stage. No general rights of return exist for customers once the product has been delivered. Shipping and handling costs associated with sales are recorded as cost of goods sold. Sales discounts and rebates are estimated based on past experience and are recorded as a reduction of net sales in the period in which the sale is recognized. Service revenues predominantly consist of coatings services provided by our Coatings segment to its customers. Revenue from our offshore and other complex steel structures products is recognized using the percentage-of-completion method, based primarily on contract cost incurred to date compared to total estimated contract cost. | ||||||||||||||
Use of Estimates | Use of Estimates | |||||||||||||
Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities, the reported amounts of revenue and expenses and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. | ||||||||||||||
Equity Method Investments | Equity Method Investments | |||||||||||||
The Company has equity method investments in non-consolidated subsidiaries which are recorded within "Other assets" on the Consolidated Balance Sheet. In February 2013, the Company sold its nonconsolidated investment in Manganese Materials Company Pty. Ltd. to the majority owner of the business for approximately $29,250. The profit on the sale was not significant, which included the recognition of $5,194 in currency translation adjustments previously recorded as part of "Accumulated other comprehensive income" on the Consolidated Balance Sheet. The Company also recognized certain deferred tax benefits of approximately $3,200 associated with the sale in the first quarter of 2013. | ||||||||||||||
Treasury Stock | Treasury Stock | |||||||||||||
Repurchased shares are recorded as "Treasury Stock" and result in a reduction of "Shareholders' Equity." When treasury shares are reissued, the Company uses the last-in, first-out method, and the difference between the repurchase cost and re-issuance price is charged or credited to "Additional Paid-In Capital.” | ||||||||||||||
On May 13, 2014, the Company announced a new capital allocation philosophy which covered a share repurchase program. Specifically, the Board of Directors authorized the purchase of up to $500 million of the Company's outstanding common stock from time to time over twelve months at prevailing market prices, through open market or privately-negotiated transactions. As of December 27, 2014, the Company has acquired 2,711,149 shares for approximately $395.0 million under this share repurchase program. In February 2015, the Board of Directors authorized an additional $250 million of purchase, without an expiration date. | ||||||||||||||
Research and Development | Research and Development | |||||||||||||
Research and development costs are charged to operations in the year incurred. These costs are a component of "Selling, general and administrative expenses" on the Consolidated Statements of Earnings. Research and development expenses were approximately $13,900 in 2014, $10,200 in 2013, and $7,100 in 2012. | ||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||
Components of accumulated other comprehensive income (loss) | ||||||||||||||
Foreign | Unrealized | Defined | Accumulated | |||||||||||
Currency | Gain (Loss) on | Benefit | Other | |||||||||||
Translation | Cash Flow | Pension Plan | Comprehensive | |||||||||||
Adjustments | Hedge | Income | ||||||||||||
Balance at December 28, 2013 | $ | (20,165 | ) | $ | (2,535 | ) | $ | (24,985 | ) | $ | (47,685 | ) | ||
Current-period comprehensive income (loss) | (79,453 | ) | 6,414 | (13,709 | ) | (86,748 | ) | |||||||
| | | | | | | | | | | | | | |
Balance at December 27, 2014 | $ | (99,618 | ) | $ | 3,879 | $ | (38,694 | ) | $ | (134,433 | ) | |||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
ACQUISITIONS_AND_DECONSOLIDATI1
ACQUISITIONS AND DECONSOLIDATION (Tables) | 12 Months Ended | |||||||
Dec. 27, 2014 | ||||||||
Pro forma results of operations | ||||||||
Fifty-two weeks | Fifty-two weeks | |||||||
Ended | Ended | |||||||
December 27, | December 28, | |||||||
2014 | 2013 | |||||||
Net sales | $ | 3,201,947 | $ | 3,556,988 | ||||
Net earnings | 189,391 | 293,340 | ||||||
Earnings per share—diluted | $ | 7.30 | $ | 10.91 | ||||
Valmont SM | ||||||||
Summary of fair values of the assets acquired and liabilities assumed | ||||||||
At March 3, | ||||||||
2014 | ||||||||
Current assets | $ | 73,421 | ||||||
Property, plant and equipment | 85,638 | |||||||
Intangible assets | 30,340 | |||||||
Goodwill | 16,803 | |||||||
| | | | | ||||
Total fair value of assets acquired | $ | 206,202 | ||||||
| | | | | ||||
Current liabilities | 47,754 | |||||||
Deferred income taxes | 19,715 | |||||||
Intercompany note payable | 37,448 | |||||||
Long-term debt | 8,941 | |||||||
| | | | | ||||
Total fair value of liabilities assumed | 113,858 | |||||||
Non-controlling interests | 9,309 | |||||||
| | | | | ||||
Net assets acquired | $ | 83,035 | ||||||
| | | | | ||||
Summary of the major classes of acquired intangible assets and the respective weighted average amortization periods | ||||||||
Amount | Weighted | |||||||
Average | ||||||||
Amortization | ||||||||
Period | ||||||||
(Years) | ||||||||
Trade Names | $ | 11,470 | Indefinite | |||||
Backlog | 3,145 | 1.5 | ||||||
Customer Relationships | 15,725 | 12.0 | ||||||
| | | | | | |||
Total Intangible Assets | $ | 30,340 | ||||||
| | | | | | |||
Shakespeare | ||||||||
Summary of fair values of the assets acquired and liabilities assumed | ||||||||
At October 6, | ||||||||
2014 | ||||||||
Current assets | $ | 12,532 | ||||||
Property, plant and equipment | 10,694 | |||||||
Intangible assets | 13,500 | |||||||
Goodwill | 15,416 | |||||||
| | | | | ||||
Total fair value of assets acquired | $ | 52,142 | ||||||
| | | | | ||||
Current liabilities | 3,870 | |||||||
| | | | | ||||
Net assets acquired | $ | 48,272 | ||||||
| | | | | ||||
Summary of the major classes of acquired intangible assets and the respective weighted average amortization periods | ||||||||
Amount | Weighted | |||||||
Average | ||||||||
Amortization | ||||||||
Period | ||||||||
(Years) | ||||||||
Trade Names | $ | 4,000 | Indefinite | |||||
Customer Relationships | 9,500 | 15.0 | ||||||
| | | | | | |||
Total Intangible Assets | $ | 13,500 | ||||||
| | | | | | |||
CASH_FLOW_SUPPLEMENTARY_INFORM1
CASH FLOW SUPPLEMENTARY INFORMATION (Tables) | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
CASH FLOW SUPPLEMENTARY INFORMATION | |||||||||||
Cash payments for interest and income taxes (net of refunds) | |||||||||||
2014 | 2013 | 2012 | |||||||||
Interest | $ | 32,601 | $ | 32,655 | $ | 31,276 | |||||
Income taxes | 111,174 | 167,146 | 137,121 | ||||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Dec. 27, 2014 | ||||||||
INVENTORIES | ||||||||
Components of inventories | ||||||||
2014 | 2013 | |||||||
Raw materials and purchased parts | $ | 179,093 | $ | 179,576 | ||||
Work-in-process | 27,835 | 27,294 | ||||||
Finished goods and manufactured goods | 199,772 | 218,334 | ||||||
| | | | | | | | |
Subtotal | 406,700 | 425,204 | ||||||
Less: LIFO reserve | 47,178 | 45,204 | ||||||
| | | | | | | | |
$ | 359,522 | $ | 380,000 | |||||
| | | | | | | | |
| | | | | | | | |
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 27, 2014 | ||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Schedule of property, plant and equipment, at cost | ||||||||
2014 | 2013 | |||||||
Land and improvements | $ | 82,372 | $ | 71,726 | ||||
Buildings and improvements | 327,863 | 265,112 | ||||||
Machinery and equipment | 593,387 | 520,262 | ||||||
Transportation equipment | 35,205 | 37,213 | ||||||
Office furniture and equipment | 76,589 | 73,200 | ||||||
Construction in progress | 24,153 | 49,613 | ||||||
| | | | | | | | |
$ | 1,139,569 | $ | 1,017,126 | |||||
| | | | | | | | |
Schedule of minimum lease payments under operating leases | ||||||||
Fiscal year ending | ||||||||
2015 | $ | 24,525 | ||||||
2016 | 19,694 | |||||||
2017 | 16,166 | |||||||
2018 | 12,171 | |||||||
2019 | 9,096 | |||||||
Subsequent | 35,042 | |||||||
| | | | | ||||
Total minimum lease payments | $ | 116,694 | ||||||
| | | | | ||||
| | | | | ||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 27, 2014 | ||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||||||
Components of amortized intangible assets | ||||||||||||||||||||
As of December 27, 2014 | ||||||||||||||||||||
Gross | Accumulated | Weighted | ||||||||||||||||||
Carrying | Amortization | Average | ||||||||||||||||||
Amount | Life | |||||||||||||||||||
Customer Relationships | $ | 207,509 | $ | 88,538 | 13 years | |||||||||||||||
Proprietary Software & Database | 3,769 | 2,977 | 8 years | |||||||||||||||||
Patents & Proprietary Technology | 12,394 | 8,537 | 8 years | |||||||||||||||||
Non-compete Agreements | 4,355 | 2,998 | 3 years | |||||||||||||||||
| | | | | | | | | ||||||||||||
$ | 228,027 | $ | 103,050 | |||||||||||||||||
| | | | | | | | | ||||||||||||
| | | | | | | | | ||||||||||||
As of December 28, 2013 | ||||||||||||||||||||
Gross | Accumulated | Weighted | ||||||||||||||||||
Carrying | Amortization | Average | ||||||||||||||||||
Amount | Life | |||||||||||||||||||
Customer Relationships | $ | 177,495 | $ | 76,024 | 13 years | |||||||||||||||
Proprietary Software & Database | 3,896 | 2,896 | 6 years | |||||||||||||||||
Patents & Proprietary Technology | 11,334 | 7,239 | 8 years | |||||||||||||||||
Non-compete Agreements | 1,620 | 1,438 | 6 years | |||||||||||||||||
| | | | | | | | | ||||||||||||
$ | 194,345 | $ | 87,597 | |||||||||||||||||
| | | | | | | | | ||||||||||||
| | | | | | | | | ||||||||||||
Schedule of future estimated amortization expense | ||||||||||||||||||||
Estimated | ||||||||||||||||||||
Amortization | ||||||||||||||||||||
Expense | ||||||||||||||||||||
2015 | $ | 18,176 | ||||||||||||||||||
2016 | 16,406 | |||||||||||||||||||
2017 | 16,364 | |||||||||||||||||||
2018 | 14,703 | |||||||||||||||||||
2019 | 13,871 | |||||||||||||||||||
Non-amortized intangible assets | ||||||||||||||||||||
December 27, | December 28, | Year | ||||||||||||||||||
2014 | 2013 | Acquired | ||||||||||||||||||
Webforge | $ | 16,801 | $ | 17,787 | 2010 | |||||||||||||||
Valmont SM | 10,818 | — | 2014 | |||||||||||||||||
Newmark | 11,111 | 11,111 | 2004 | |||||||||||||||||
Ingal EPS/Ingal Civil Products | 8,867 | 9,387 | 2010 | |||||||||||||||||
Donhad | 6,689 | 7,082 | 2010 | |||||||||||||||||
Shakespeare | 4,000 | — | 2014 | |||||||||||||||||
Industrial Galvanizers | 3,889 | 4,117 | 2010 | |||||||||||||||||
Other | 14,852 | 14,685 | ||||||||||||||||||
| | | | | | | | | ||||||||||||
$ | 77,027 | $ | 64,169 | |||||||||||||||||
| | | | | | | | | ||||||||||||
| | | | | | | | | ||||||||||||
Carrying amount of goodwill | ||||||||||||||||||||
Engineered | Utility | Coatings | Irrigation | Other | Total | |||||||||||||||
Infrastructure | Support | Segment | Segment | |||||||||||||||||
Products | Structures | |||||||||||||||||||
Segment | Segment | |||||||||||||||||||
Balance at December 28, 2013 | $ | 175,442 | $ | 75,404 | $ | 77,062 | $ | 2,420 | $ | 19,304 | $ | 349,632 | ||||||||
Acquisition | 32,219 | — | — | 17,193 | — | 49,562 | ||||||||||||||
Foreign currency translation | (10,587 | ) | — | (2,200 | ) | (77 | ) | (1,069 | ) | (14,083 | ) | |||||||||
| | | | | | | | | | | | | | | | | | | | |
Balance at December 27, 2014 | $ | 197,074 | $ | 75,404 | $ | 74,862 | $ | 19,536 | $ | 18,235 | $ | 385,111 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Engineered | Utility | Coatings | Irrigation | Other | Total | |||||||||||||||
Infrastructure | Support | Segment | Segment | |||||||||||||||||
Products | Structures | |||||||||||||||||||
Segment | Segment | |||||||||||||||||||
Balance at December 29, 2012 | $ | 155,185 | $ | 77,141 | $ | 77,053 | $ | 2,517 | $ | 18,895 | $ | 330,791 | ||||||||
Acquisition | 21,189 | — | — | — | — | 21,189 | ||||||||||||||
Foreign currency translation | (2,669 | ) | — | 9 | (97 | ) | 409 | (2,348 | ) | |||||||||||
Other | 1,737 | (1,737 | ) | — | — | — | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Balance at December 28, 2013 | $ | 175,442 | $ | 75,404 | $ | 77,062 | $ | 2,420 | $ | 19,304 | $ | 349,632 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
INCOME TAXES | |||||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | |||||||||||
2014 | 2013 | 2012 | |||||||||
United States | $ | 168,975 | $ | 338,163 | $ | 248,840 | |||||
Foreign | 115,208 | 111,254 | 110,450 | ||||||||
| | | | | | | | | | | |
$ | 284,183 | $ | 449,417 | $ | 359,290 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of income tax expense (benefit) | |||||||||||
2014 | 2013 | 2012 | |||||||||
Current: | |||||||||||
Federal | $ | 52,588 | $ | 110,847 | $ | 81,000 | |||||
State | 5,059 | 16,398 | 10,342 | ||||||||
Foreign | 32,443 | 39,285 | 32,294 | ||||||||
| | | | | | | | | | | |
90,090 | 166,530 | 123,636 | |||||||||
| | | | | | | | | | | |
Non-current: | (447 | ) | 1,392 | (854 | ) | ||||||
Deferred: | |||||||||||
Federal | 447 | (8,661 | ) | (3,824 | ) | ||||||
State | 1,376 | (307 | ) | (660 | ) | ||||||
Foreign | 3,428 | (1,173 | ) | 8,204 | |||||||
| | | | | | | | | | | |
5,251 | (10,141 | ) | 3,720 | ||||||||
| | | | | | | | | | | |
$ | 94,894 | $ | 157,781 | $ | 126,502 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of reconciliation of statutory federal income tax rate and effective tax rate | |||||||||||
2014 | 2013 | 2012 | |||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||
State income taxes, net of federal benefit | 1.8 | 2.4 | 1.7 | ||||||||
Carryforwards, credits and changes in valuation allowances | (0.4 | ) | 0.9 | 1.8 | |||||||
Foreign tax rate differences | (4.4 | ) | (2.4 | ) | (2.5 | ) | |||||
Changes in unrecognized tax benefits | (0.2 | ) | 0.3 | (0.2 | ) | ||||||
Domestic production activities deduction | (1.6 | ) | (2.1 | ) | (2.3 | ) | |||||
Other | 3.2 | 1 | 1.7 | ||||||||
| | | | | | | | | | | |
33.4 | % | 35.1 | % | 35.2 | % | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of tax effects of significant items comprising net deferred income tax liabilities | |||||||||||
2014 | 2013 | ||||||||||
Deferred income tax assets: | |||||||||||
Accrued expenses and allowances | $ | 17,446 | $ | 17,038 | |||||||
Accrued insurance | 882 | 1,508 | |||||||||
Tax credits and loss carryforwards | 148,484 | 146,473 | |||||||||
Defined benefit pension liability | 30,025 | 30,879 | |||||||||
Inventory allowances | 4,804 | 3,938 | |||||||||
Accrued warranty | 6,920 | 6,552 | |||||||||
Deferred compensation | 40,348 | 51,413 | |||||||||
| | | | | | | | ||||
Gross deferred income tax assets | 248,909 | 257,801 | |||||||||
Valuation allowance | (104,487 | ) | (107,767 | ) | |||||||
| | | | | | | | ||||
Net deferred income tax assets | 144,422 | 150,034 | |||||||||
| | | | | | | | ||||
Deferred income tax liabilities: | |||||||||||
Work in progress | 5,352 | — | |||||||||
Property, plant and equipment | 43,084 | 36,657 | |||||||||
Intangible assets | 60,316 | 57,787 | |||||||||
Other liabilities | 6,738 | 7,206 | |||||||||
| | | | | | | | ||||
Total deferred income tax liabilities | 115,490 | 101,650 | |||||||||
| | | | | | | | ||||
Net deferred income tax asset/(liability) | $ | 28,932 | $ | 48,384 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of deferred income tax assets (liabilities) presented on the Consolidated Balance Sheets | |||||||||||
Balance Sheet Caption | 2014 | 2013 | |||||||||
Refundable and deferred income taxes | $ | 30,239 | $ | 57,344 | |||||||
Other assets | 70,490 | 69,964 | |||||||||
Deferred income taxes | (71,797 | ) | (78,924 | ) | |||||||
| | | | | | | | ||||
Net deferred income tax asset/(liability) | $ | 28,932 | $ | 48,384 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of activity related to unrecognized tax benefits | The following summarizes the activity related to our unrecognized tax benefits in 2014 and 2013, in thousands: | ||||||||||
2014 | 2013 | ||||||||||
Gross unrecognized tax benefits—beginning of year | $ | 4,727 | $ | 3,370 | |||||||
Gross increases—tax positions in prior period | — | 1,464 | |||||||||
Gross decreases—tax positions in prior period | (456 | ) | — | ||||||||
Gross increases—current-period tax positions | 610 | 1,336 | |||||||||
Lapse of statute of limitations | (613 | ) | (1,443 | ) | |||||||
| | | | | | | | ||||
Gross unrecognized tax benefits—end of year | $ | 4,268 | $ | 4,727 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 12 Months Ended | |||||||
Dec. 27, 2014 | ||||||||
LONG-TERM DEBT | ||||||||
Long-term debt | ||||||||
December 27, | December 28, | |||||||
2014 | 2013 | |||||||
5.00% senior unsecured notes due 2044(a) | $ | 250,000 | $ | — | ||||
5.25% senior unsecured notes due 2054(b) | 250,000 | — | ||||||
Unamortized discount on 5.00% and 5.25% senior unsecured notes(a and b) | (4,449 | ) | — | |||||
6.625% senior unsecured notes due 2020(c) | 250,200 | 450,000 | ||||||
Unamortized premium on 6.625% senior unsecured notes(c) | 5,429 | 11,241 | ||||||
Revolving credit agreement(d) | — | — | ||||||
IDR Bonds(e) | 8,500 | 8,500 | ||||||
Other notes | 8,155 | 1,368 | ||||||
| | | | | | | | |
Long-term debt | 767,835 | 471,109 | ||||||
Less current installments of long-term debt | 1,181 | 202 | ||||||
| | | | | | | | |
Long-term debt, excluding current installments | $ | 766,654 | $ | 470,907 | ||||
| | | | | | | | |
| | | | | | | | |
(a) | The 5.00% senior unsecured notes due 2044 include an aggregate principle amount of $250,000 on which interest is paid and an unamortized discount balance of $1,155 at December 27, 2014. The notes bear interest at 5.000% per annum and are due on October 1, 2044. The discount will be amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. | |||||||
(b) | The 5.25% senior unsecured notes due 2054 include an aggregate principle amount of $250,000 on which interest is paid and an unamortized discount balance of $3,294 at December 27, 2014. The notes bear interest at 5.250% per annum and are due on October 1, 2054. The discount will be amortized and recognized as interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium and accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. | |||||||
(c) | The 6.625% senior unsecured notes due 2020, following a partial tender offer in September 2014, include a remaining aggregate principal amount of $250,200 on which interest is paid and an unamortized premium balance of $5,429 at December 27, 2014. The notes bear interest at 6.625% per annum and are due on April 1, 2020. In September 2014, the Company repurchased by partial tender $199,800 in aggregate principal amount of these notes and incurred cash prepayment expenses of approximately $41,200. In addition, $4,439 of the unamortized premium was recognized as income which is the proportionate amount of debt that was repaid. The remaining premium will be amortized against interest expense as interest payments are made over the term of the notes. The notes may be repurchased prior to maturity in whole, or in part, at any time at 100% of their principal amount plus a make-whole premium accrued and unpaid interest. These notes are guaranteed by certain subsidiaries of the Company. | |||||||
(d) | On October 17, 2014, the Company entered into a First Amendment to our Credit Agreement with JPMorgan Chase Bank, as Administrative Agent, and the other lenders party thereto, dated as of August 15, 2012, which increased the committed unsecured revolving credit facility from $400 million to $600 million and extended the maturity date from August 15, 2017 to October 17, 2019. The Company may increase the credit facility by up to an additional $200 million at any time, subject to lenders increasing the amount of their commitments. The interest rate on our borrowings will be, at our option, either: | |||||||
(i) | LIBOR (based on a 1, 2, 3 or 6 month interest period, as selected by the Company) plus 100 to 162.5 basis points, depending on the credit rating of the our senior debt published by Standard & Poor's Rating Services and Moody's Investors Service, Inc., or; | |||||||
(ii) | the higher of | |||||||
• | the prime lending rate, | |||||||
• | the Federal Funds rate plus 50 basis points, and | |||||||
• | LIBOR (based on a 1 month interest period) plus 100 basis points, | |||||||
plus, in each case, 0 to 62.5 basis points, depending on the credit rating of our senior debt published by Standard & Poor's Rating Services and Mood's Investors Service, Inc. | ||||||||
At December 27, 2014, the Company had no outstanding borrowings under the revolving credit facility. The revolving credit facility has a maturity date of August 15, 2017 and contains certain financial covenants that may limit additional borrowing capability under the agreement. At December 27, 2014, the Company had the ability to borrow $582.4 million under this facility, after consideration of standby letters of credit of $17.6 million associated with certain insurance obligations. We also maintain certain short-term bank lines of credit totaling $108.6 million, $95.5 million of which was unused at December 27, 2014. | ||||||||
(e) | The Industrial Development Revenue Bonds were issued to finance the construction of a manufacturing facility in Jasper, Tennessee. Variable interest is payable until final maturity on June 1, 2025. The effective interest rates at December 27, 2014 and December 28, 2013 were 1.16% and 0.21%, respectively. | |||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||||
Dec. 27, 2014 | ||||||||||||||||
STOCK-BASED COMPENSATION | ||||||||||||||||
Schedule of assumptions used in estimating fair value of each option grant | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Expected volatility | 32.27 | % | 33.26 | % | 33.76 | % | ||||||||||
Risk-free interest rate | 1.43 | % | 1.16 | % | 0.74 | % | ||||||||||
Expected life from vesting date | 3.0 yrs | 3.0 yrs | 3.0 yrs | |||||||||||||
Dividend yield | 0.75 | % | 0.72 | % | 0.77 | % | ||||||||||
Summary of activity of stock plans | Following is a summary of the activity of the stock plans during 2012, 2013 and 2014: | |||||||||||||||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | |||||||||||||||
Term | ||||||||||||||||
Outstanding at December 31, 2011 | 1,078,713 | $ | 70.88 | |||||||||||||
Granted | 140,007 | 136.01 | ||||||||||||||
Exercised | (341,090 | ) | (61.53 | ) | ||||||||||||
Forfeited | (8,638 | ) | (84.18 | ) | ||||||||||||
| | | | | | | | | | | | | | |||
Outstanding at December 29, 2012 | 868,992 | $ | 84.91 | 4.68 | $ | 43,410 | ||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Options vested or expected to vest at December 29, 2012 | 845,470 | $ | 84.26 | 4.64 | 42,765 | |||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Options exercisable at December 29, 2012 | 485,786 | $ | 71.06 | 3.67 | 30,846 | |||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | |||||||||||||||
Term | ||||||||||||||||
Outstanding at December 29, 2012 | 868,992 | $ | 84.91 | |||||||||||||
Granted | 155,254 | 144.86 | ||||||||||||||
Exercised | (216,105 | ) | (72.17 | ) | ||||||||||||
Forfeited | (12,920 | ) | (129.08 | ) | ||||||||||||
| | | | | | | | | | | | | | |||
Outstanding at December 28, 2013 | 795,221 | $ | 99.29 | 4.56 | $ | 39,994 | ||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Options vested or expected to vest at December 28, 2013 | 775,237 | $ | 98.41 | 4.51 | 39,678 | |||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Options exercisable at December 28, 2013 | 464,377 | $ | 81.73 | 3.58 | 31,508 | |||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Number of | Weighted | Weighted | Aggregate | |||||||||||||
Shares | Average | Average | Intrinsic | |||||||||||||
Exercise | Remaining | Value | ||||||||||||||
Price | Contractual | |||||||||||||||
Term | ||||||||||||||||
Outstanding at December 28, 2013 | 795,221 | $ | 99.29 | |||||||||||||
Granted | 177,717 | 132.94 | ||||||||||||||
Exercised | (194,627 | ) | (71.67 | ) | ||||||||||||
Forfeited | (9,716 | ) | (126.23 | ) | ||||||||||||
| | | | | | | | | | | | | | |||
Outstanding at December 27, 2014 | 768,595 | $ | 113.72 | 4.74 | $ | 15,983 | ||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Options vested or expected to vest at December 27, 2014 | 746,974 | $ | 113.06 | 4.69 | 15,981 | |||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Options exercisable at December 27, 2014 | 450,539 | $ | 97.29 | 3.59 | 15,944 | |||||||||||
| | | | | | | | | | | | | | |||
| | | | | | | | | | | | | | |||
Summary of status of stock options outstanding | Following is a summary of the status of stock options outstanding at December 27, 2014: | |||||||||||||||
Outstanding and Exercisable By Price Range | ||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||
Exercise Price | Number | Weighted Average | Weighted | Number | Weighted | |||||||||||
Range | Remaining | Average | Average | |||||||||||||
Contractual | Exercise | Exercise | ||||||||||||||
Life | Price | Price | ||||||||||||||
$24.37 - 40.21 | 11,400 | 0.43 years | $ | 26.32 | 11,400 | $ | 26.32 | |||||||||
$57.46 - 105.44 | 297,279 | 2.95 years | 80.75 | 297,094 | 80.75 | |||||||||||
$110.26 - 151.45 | 459,916 | 6.00 years | 137.19 | 142,045 | 137.59 | |||||||||||
| | | | | | | | | | | | | | | | |
768,595 | 450,539 | |||||||||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Schedule of non-vested stock and restricted stock units | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Shares issued | 35,885 | 47,271 | 27,293 | |||||||||||||
Weighted-average per share price on grant date | $ | 136.91 | $ | 146.72 | $ | 132.21 | ||||||||||
Compensation expense | $ | 3,978 | $ | 3,667 | $ | 2,835 | ||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
EARNINGS PER SHARE | |||||||||||
Reconciliation of basic and diluted earnings per share (EPS) | |||||||||||
Basic EPS | Dilutive | Diluted EPS | |||||||||
Effect of | |||||||||||
Stock | |||||||||||
Options | |||||||||||
2014:00:00 | |||||||||||
Net earnings attributable to Valmont Industries, Inc. | $ | 183,976 | $ | — | $ | 183,976 | |||||
Weighted average shares outstanding (000's) | 25,719 | 213 | 25,932 | ||||||||
Per share amount | $ | 7.15 | $ | 0.06 | $ | 7.09 | |||||
2013:00:00 | |||||||||||
Net earnings attributable to Valmont Industries, Inc. | $ | 278,489 | $ | — | $ | 278,489 | |||||
Weighted average shares outstanding (000's) | 26,641 | 258 | 26,899 | ||||||||
Per share amount | $ | 10.45 | $ | 0.10 | $ | 10.35 | |||||
2012:00:00 | |||||||||||
Net earnings attributable to Valmont Industries, Inc. | $ | 234,072 | $ | — | $ | 234,072 | |||||
Weighted average shares outstanding (000's) | 26,471 | 293 | 26,764 | ||||||||
Per share amount | $ | 8.84 | $ | 0.09 | $ | 8.75 | |||||
DISCLOSURES_ABOUT_THE_FAIR_VAL1
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||
Schedule of Trading Securities measured at fair value | ||||||||||||||
Fair Value Measurement Using: | ||||||||||||||
Carrying | Quoted Prices | Significant | Significant | |||||||||||
Value | in Active | Other | Unobservable | |||||||||||
December 27, | Markets for | Observable | Inputs | |||||||||||
2014 | Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | |||||||||||||
Assets: | ||||||||||||||
Trading Securities | $ | 45,473 | $ | 45,473 | $ | — | $ | — | ||||||
Fair Value Measurement Using: | ||||||||||||||
Carrying | Quoted Prices | Significant | Significant | |||||||||||
Value | in Active | Other | Unobservable | |||||||||||
December 28, | Markets for | Observable | Inputs | |||||||||||
2013 | Identical Assets | Inputs | (Level 3) | |||||||||||
(Level 1) | (Level 2) | |||||||||||||
Assets: | ||||||||||||||
Trading Securities | $ | 41,043 | $ | 41,043 | $ | — | $ | — | ||||||
GUARANTEES_Tables
GUARANTEES (Tables) | 12 Months Ended | |||||||
Dec. 27, 2014 | ||||||||
GUARANTEES | ||||||||
Schedule of changes in the product warranty accrual | ||||||||
2014 | 2013 | |||||||
Balance, beginning of period | $ | 20,711 | $ | 15,333 | ||||
Payments made | (13,900 | ) | (9,033 | ) | ||||
Change in liability for warranties issued during the period | 13,130 | 15,193 | ||||||
Change in liability for pre-existing warranties | (181 | ) | (782 | ) | ||||
| | | | | | | | |
Balance, end of period | $ | 19,760 | $ | 20,711 | ||||
| | | | | | | | |
| | | | | | | | |
DEFINED_BENEFIT_RETIREMENT_PLA1
DEFINED BENEFIT RETIREMENT PLAN (Tables) | 12 Months Ended | |||||||||||||
Dec. 27, 2014 | ||||||||||||||
DEFINED BENEFIT RETIREMENT PLAN | ||||||||||||||
Schedule of changes in PBO and fair value of plan assets for pension plan | Changes in the PBO and fair value of plan assets for the pension plan for the period from December 29, 2012 to December 28, 2013 were as follows: | |||||||||||||
Projected | Plan | Funded | ||||||||||||
Benefit | Assets | status | ||||||||||||
Obligation | ||||||||||||||
Fair Value at December 29, 2012 | $ | 597,767 | $ | 485,724 | $ | (112,043 | ) | |||||||
Employer contributions | — | 17,619 | ||||||||||||
Interest cost | 26,431 | — | ||||||||||||
Actual return on plan assets | — | 7,676 | ||||||||||||
Settlements | (12,981 | ) | (12,981 | ) | ||||||||||
Benefits paid | (11,573 | ) | (11,573 | ) | ||||||||||
Actuarial loss | 37,235 | — | ||||||||||||
Currency translation | 14,978 | 10,995 | ||||||||||||
| | | | | | | | | | | ||||
Fair Value at December 28, 2013 | $ | 651,857 | $ | 497,460 | $ | (154,397 | ) | |||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Changes in the PBO and fair value of plan assets for the pension plan for the period from December 28, 2013 to December 27, 2014 were as follows: | ||||||||||||||
Projected | Plan | Funded | ||||||||||||
Benefit | Assets | status | ||||||||||||
Obligation | ||||||||||||||
Fair Value at December 28, 2013 | $ | 651,857 | $ | 497,460 | $ | (154,397 | ) | |||||||
Employer contributions | — | 18,173 | ||||||||||||
Interest cost | 28,667 | — | ||||||||||||
Actual return on plan assets | — | 72,820 | ||||||||||||
Benefits paid | (14,498 | ) | (14,498 | ) | ||||||||||
Actuarial loss | 66,889 | — | ||||||||||||
Currency translation | (40,632 | ) | (31,796 | ) | ||||||||||
| | | | | | | | | | | ||||
Fair Value at December 27, 2014 | $ | 692,283 | $ | 542,159 | $ | (150,124 | ) | |||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Schedule of pre-tax amounts recognized in accumulated other comprehensive income (loss) | ||||||||||||||
Balance December 29, 2012 | $ | 12,617 | ||||||||||||
Actuarial loss | (49,421 | ) | ||||||||||||
Currency translation loss | (2,004 | ) | ||||||||||||
| | | | | ||||||||||
Balance December 28, 2013 | (38,808 | ) | ||||||||||||
Actuarial loss | (18,980 | ) | ||||||||||||
Currency translation gain | 1,835 | |||||||||||||
| | | | | ||||||||||
Balance December 27, 2014 | $ | (55,953 | ) | |||||||||||
| | | | | ||||||||||
| | | | | ||||||||||
Schedule of weighted-average actuarial assumptions used to determine the benefit obligation | ||||||||||||||
Percentages | 2014 | 2013 | ||||||||||||
Discount rate | 3.65 | % | 4.45 | % | ||||||||||
Salary increase | N/A | N/A | ||||||||||||
CPI inflation | 2.10 | % | 2.70 | % | ||||||||||
RPI inflation | 3.20 | % | 3.60 | % | ||||||||||
Schedule of components of the net periodic pension expense | ||||||||||||||
2014 | 2013 | |||||||||||||
Net Periodic Benefit Cost: | ||||||||||||||
Interest cost | 28,667 | 26,431 | ||||||||||||
Expected return on plan assets | (26,029 | ) | (19,862 | ) | ||||||||||
| | | | | | | | |||||||
Net periodic benefit expense | $ | 2,638 | $ | 6,569 | ||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Schedule of weighted-average actuarial assumptions used to determine expense | ||||||||||||||
Percentages | 2014 | 2013 | ||||||||||||
Discount rate | 4.45 | % | 4.60 | % | ||||||||||
Expected return on plan assets | 5.50 | % | 4.20 | % | ||||||||||
RPI Inflation | 3.60 | % | 3.20 | % | ||||||||||
CPI Inflation | 2.70 | % | 2.70 | % | ||||||||||
Schedule of expected pension benefit payments | ||||||||||||||
2015 | $ | 14,000 | ||||||||||||
2016 | 14,500 | |||||||||||||
2017 | 14,935 | |||||||||||||
2018 | 15,400 | |||||||||||||
2019 | 15,870 | |||||||||||||
Years 2020 - 2024 | 86,341 | |||||||||||||
Schedule of pension plan assets measured at fair value on a recurring basis | ||||||||||||||
December 27, 2014 | Quoted Prices in | Significant Other | Significant | Total | ||||||||||
Active Markets | Observable | Unobservable | ||||||||||||
for Identical | Inputs | Inputs | ||||||||||||
Inputs (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Plan net assets: | ||||||||||||||
Temporary cash investments | $ | — | $ | 12,320 | $ | — | $ | 12,320 | ||||||
Index-linked gilts | — | 135,229 | — | 135,229 | ||||||||||
Corporate bonds | — | 107,880 | — | 107,880 | ||||||||||
Corporate stock | — | 176,010 | — | 176,010 | ||||||||||
Diversified growth funds | — | 110,720 | — | 110,720 | ||||||||||
| | | | | | | | | | | | | | |
Total plan net assets at fair value | $ | — | $ | 542,159 | $ | — | $ | 542,159 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
December 28, 2013 | Quoted Prices in | Significant Other | Significant | Total | ||||||||||
Active Markets | Observable | Unobservable | ||||||||||||
for Identical | Inputs | Inputs | ||||||||||||
Inputs (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Plan net assets: | ||||||||||||||
Temporary cash investments | $ | — | $ | 10,791 | $ | — | $ | 10,791 | ||||||
Index-linked gilts | — | 112,208 | — | 112,208 | ||||||||||
Corporate bonds | — | 166,604 | — | 166,604 | ||||||||||
Corporate stock | — | 141,029 | — | 141,029 | ||||||||||
Diversified growth funds | — | 66,828 | — | 66,828 | ||||||||||
| | | | | | | | | | | | | | |
Total plan net assets at fair value | $ | — | $ | 497,460 | $ | — | $ | 497,460 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 12 Months Ended | ||||||||||
Dec. 27, 2014 | |||||||||||
BUSINESS SEGMENTS | |||||||||||
Segment reporting information of sales and operating income | |||||||||||
2014 | 2013 | 2012 | |||||||||
SALES: | |||||||||||
Engineered Infrastructure Products segment: | |||||||||||
Lighting, Traffic, and Roadway Products | $ | 648,352 | $ | 660,423 | $ | 637,082 | |||||
Communication Products | 161,618 | 139,888 | 134,711 | ||||||||
Offshore and Other Complex Steel Structures | 146,432 | — | — | ||||||||
Access Systems | 181,495 | 201,498 | 159,740 | ||||||||
| | | | | | | | | | | |
Engineered Infrastructure Products segment | 1,137,897 | 1,001,809 | 931,533 | ||||||||
Utility Support Structures segment: | |||||||||||
Steel | 714,427 | 853,459 | 752,621 | ||||||||
Concrete | 110,589 | 108,579 | 120,899 | ||||||||
| | | | | | | | | | | |
Utility Support Structures segment | 825,016 | 962,038 | 873,520 | ||||||||
Coatings segment | 333,853 | 357,635 | 334,552 | ||||||||
Irrigation segment | 759,178 | 882,179 | 750,641 | ||||||||
Other | 231,668 | 303,595 | 328,737 | ||||||||
| | | | | | | | | | | |
Total | 3,287,612 | 3,507,256 | 3,218,983 | ||||||||
INTERSEGMENT SALES: | |||||||||||
Engineered Infrastructure Products segment | 75,259 | 104,306 | 98,220 | ||||||||
Utility Support Structures segment | 2,451 | 2,343 | 3,857 | ||||||||
Coatings segment | 55,418 | 56,649 | 52,478 | ||||||||
Irrigation segment | 19 | 5 | 49 | ||||||||
Other | 31,322 | 39,742 | 34,838 | ||||||||
| | | | | | | | | | | |
Total | 164,469 | 203,045 | 189,442 | ||||||||
NET SALES: | |||||||||||
Engineered Infrastructure Products segment | 1,062,638 | 897,503 | 833,313 | ||||||||
Utility Support Structures segment | 822,565 | 959,695 | 869,663 | ||||||||
Coatings segment | 278,435 | 300,986 | 282,074 | ||||||||
Irrigation segment | 759,159 | 882,174 | 750,592 | ||||||||
Other | 200,346 | 263,853 | 293,899 | ||||||||
| | | | | | | | | | | |
Total | $ | 3,123,143 | $ | 3,304,211 | $ | 3,029,541 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
2014 | 2013 | 2012 | |||||||||
OPERATING INCOME (LOSS): | |||||||||||
Engineered Infrastructure Products | $ | 103,296 | $ | 87,647 | $ | 54,013 | |||||
Utility Support Structures | 95,118 | 174,740 | 129,025 | ||||||||
Coatings | 60,921 | 74,917 | 71,641 | ||||||||
Irrigation | 128,145 | 181,498 | 143,605 | ||||||||
Other | 25,898 | 30,984 | 46,575 | ||||||||
Corporate | (55,662 | ) | (76,717 | ) | (62,563 | ) | |||||
| | | | | | | | | | | |
Total | 357,716 | 473,069 | 382,296 | ||||||||
Interest expense, net | (30,744 | ) | (26,025 | ) | (23,353 | ) | |||||
Costs associated with refinancing of debt | (38,705 | ) | — | — | |||||||
Other | (4,084 | ) | 2,373 | 347 | |||||||
| | | | | | | | | | | |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | $ | 284,183 | $ | 449,417 | $ | 359,290 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
TOTAL ASSETS: | |||||||||||
Engineered Infrastructure Products | $ | 1,057,090 | $ | 873,757 | $ | 784,659 | |||||
Utility Support Structures | 470,720 | 524,113 | 510,943 | ||||||||
Coatings | 301,707 | 315,663 | 334,841 | ||||||||
Irrigation | 331,962 | 323,435 | 287,354 | ||||||||
Other | 117,300 | 126,337 | 202,289 | ||||||||
Corporate | 450,889 | 613,189 | 448,465 | ||||||||
| | | | | | | | | | | |
Total | $ | 2,729,668 | $ | 2,776,494 | $ | 2,568,551 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
CAPITAL EXPENDITURES: | |||||||||||
Engineered Infrastructure Products | $ | 14,328 | $ | 15,878 | $ | 20,244 | |||||
Utility Support Structures | 9,014 | 39,347 | 41,081 | ||||||||
Coatings | 14,029 | 12,206 | 13,280 | ||||||||
Irrigation | 15,488 | 21,416 | 12,618 | ||||||||
Other | 9,220 | 6,270 | 4,428 | ||||||||
Corporate | 10,944 | 11,636 | 5,423 | ||||||||
| | | | | | | | | | | |
Total | $ | 73,023 | $ | 106,753 | $ | 97,074 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
DEPRECIATION AND AMORTIZATION: | |||||||||||
Engineered Infrastructure Products | $ | 40,239 | $ | 31,057 | $ | 27,164 | |||||
Utility Support Structures | 17,811 | 14,375 | 13,284 | ||||||||
Coatings | 14,615 | 14,656 | 12,015 | ||||||||
Irrigation | 9,352 | 6,679 | 6,209 | ||||||||
Other | 5,512 | 7,663 | 8,168 | ||||||||
Corporate | 1,799 | 3,006 | 3,378 | ||||||||
| | | | | | | | | | | |
Total | $ | 89,328 | $ | 77,436 | $ | 70,218 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Summary by Geographical Area by Location | |||||||||||
2014 | 2013 | 2012 | |||||||||
NET SALES: | |||||||||||
United States | $ | 1,808,427 | $ | 2,077,812 | $ | 1,870,703 | |||||
Australia | 439,530 | 492,698 | 499,025 | ||||||||
China | 110,923 | 97,788 | 135,398 | ||||||||
Denmark | 146,432 | — | — | ||||||||
Other | 617,831 | 635,913 | 524,415 | ||||||||
| | | | | | | | | | | |
Total | $ | 3,123,143 | $ | 3,304,211 | $ | 3,029,541 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
LONG-LIVED ASSETS: | |||||||||||
United States | $ | 616,718 | $ | 530,042 | $ | 470,154 | |||||
Australia | 316,382 | 342,320 | 321,456 | ||||||||
Denmark | 111,161 | — | — | ||||||||
Other | 292,862 | 306,293 | 351,001 | ||||||||
| | | | | | | | | | | |
Total | $ | 1,337,123 | $ | 1,178,655 | $ | 1,142,611 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
GUARANTORNONGUARANTOR_FINANCIA1
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 27, 2014 | |||||||||||||||||
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION | |||||||||||||||||
Condensed Consolidated Statements of Earnings | CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||||||||||
For the Year ended December 27, 2014 | |||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Total | |||||||||||||
Guarantors | |||||||||||||||||
Net sales | $ | 1,392,509 | $ | 496,326 | $ | 1,456,053 | $ | (221,745 | ) | $ | 3,123,143 | ||||||
Cost of sales | 1,040,808 | 371,639 | 1,124,813 | (222,234 | ) | 2,315,026 | |||||||||||
| | | | | | | | | | | | | | | | | |
Gross profit | 351,701 | 124,687 | 331,240 | 489 | 808,117 | ||||||||||||
Selling, general and administrative expenses | 196,987 | 49,171 | 204,243 | — | 450,401 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income | 154,714 | 75,516 | 126,997 | 489 | 357,716 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Other income (expense): | |||||||||||||||||
Interest expense | (34,267 | ) | (5 | ) | (2,518 | ) | — | (36,790 | ) | ||||||||
Interest income | 38 | 359 | 5,649 | — | 6,046 | ||||||||||||
Costs associated with refinancing of debt | (38,705 | ) | — | — | — | (38,705 | ) | ||||||||||
Other | 2,021 | (511 | ) | (5,594 | ) | — | (4,084 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
(70,913 | ) | (157 | ) | (2,463 | ) | — | (73,533 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 83,801 | 75,359 | 124,534 | 489 | 284,183 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Income tax expense (benefit): | |||||||||||||||||
Current | 30,330 | 25,277 | 33,898 | 138 | 89,643 | ||||||||||||
Deferred | (1,474 | ) | 1,866 | 4,859 | — | 5,251 | |||||||||||
| | | | | | | | | | | | | | | | | |
28,856 | 27,143 | 38,757 | 138 | 94,894 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Earnings before equity in earnings of nonconsolidated subsidiaries | 54,945 | 48,216 | 85,777 | 351 | 189,289 | ||||||||||||
Equity in earnings of nonconsolidated subsidiaries | 129,031 | 19,509 | 63 | (148,574 | ) | 29 | |||||||||||
| | | | | | | | | | | | | | | | | |
Net earnings | 183,976 | 67,725 | 85,840 | (148,223 | ) | 189,318 | |||||||||||
Less: Earnings attributable to noncontrolling interests | — | — | (5,342 | ) | — | (5,342 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net earnings attributable to Valmont Industries, Inc | $ | 183,976 | $ | 67,725 | $ | 80,498 | $ | (148,223 | ) | $ | 183,976 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||||
For the Year ended December 28, 2013 | |||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Total | |||||||||||||
Guarantors | |||||||||||||||||
Net sales | $ | 1,540,266 | $ | 689,230 | $ | 1,402,191 | $ | (327,476 | ) | $ | 3,304,211 | ||||||
Cost of sales | 1,107,020 | 503,431 | 1,078,695 | (330,163 | ) | 2,358,983 | |||||||||||
| | | | | | | | | | | | | | | | | |
Gross profit | 433,246 | 185,799 | 323,496 | 2,687 | 945,228 | ||||||||||||
Selling, general and administrative expenses | 209,350 | 59,368 | 203,441 | — | 472,159 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income | 223,896 | 126,431 | 120,055 | 2,687 | 473,069 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Other income (expense): | |||||||||||||||||
Interest expense | (30,801 | ) | (2 | ) | (1,699 | ) | — | (32,502 | ) | ||||||||
Interest income | 55 | 1,032 | 5,390 | — | 6,477 | ||||||||||||
Other | 4,791 | 9 | (2,427 | ) | — | 2,373 | |||||||||||
| | | | | | | | | | | | | | | | | |
(25,955 | ) | 1,039 | 1,264 | — | (23,652 | ) | |||||||||||
| | | | | | | | | | | | | | | | | |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 197,941 | 127,470 | 121,319 | 2,687 | 449,417 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Income tax expense (benefit): | |||||||||||||||||
Current | 78,912 | 45,951 | 42,379 | 680 | 167,922 | ||||||||||||
Deferred | (8,948 | ) | (19 | ) | (1,174 | ) | — | (10,141 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
69,964 | 45,932 | 41,205 | 680 | 157,781 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Earnings before equity in earnings of nonconsolidated subsidiaries | 127,977 | 81,538 | 80,114 | 2,007 | 291,636 | ||||||||||||
Equity in earnings of nonconsolidated subsidiaries | 150,512 | 16,417 | 494 | (166,588 | ) | 835 | |||||||||||
Loss from deconsolidation of subsidiary | — | — | (12,011 | ) | — | (12,011 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net earnings | 278,489 | 97,955 | 68,597 | (164,581 | ) | 280,460 | |||||||||||
Less: Earnings attributable to noncontrolling interests | — | — | (1,971 | ) | — | (1,971 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net earnings attributable to Valmont Industries, Inc | $ | 278,489 | $ | 97,955 | $ | 66,626 | $ | (164,581 | ) | $ | 278,489 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||||||||
For the Year ended December 29, 2012 | |||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Total | |||||||||||||
Guarantors | |||||||||||||||||
Net sales | $ | 1,375,238 | $ | 620,338 | $ | 1,331,827 | $ | (297,862 | ) | $ | 3,029,541 | ||||||
Cost of sales | 1,008,087 | 489,560 | 1,026,037 | (296,599 | ) | 2,227,085 | |||||||||||
| | | | | | | | | | | | | | | | | |
Gross profit | 367,151 | 130,778 | 305,790 | (1,263 | ) | 802,456 | |||||||||||
Selling, general and administrative expenses | 178,669 | 54,305 | 187,186 | — | 420,160 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Operating income | 188,482 | 76,473 | 118,604 | (1,263 | ) | 382,296 | |||||||||||
| | | | | | | | | | | | | | | | | |
Other income (expense): | |||||||||||||||||
Interest expense | (31,121 | ) | — | (1,845 | ) | 1,341 | (31,625 | ) | |||||||||
Interest income | 45 | 1,533 | 8,035 | (1,341 | ) | 8,272 | |||||||||||
Other | 1,938 | 55 | (1,646 | ) | — | 347 | |||||||||||
| | | | | | | | | | | | | | | | | |
(29,138 | ) | 1,588 | 4,544 | — | (23,006 | ) | |||||||||||
| | | | | | | | | | | | | | | | | |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 159,344 | 78,061 | 123,148 | (1,263 | ) | 359,290 | |||||||||||
| | | | | | | | | | | | | | | | | |
Income tax expense (benefit): | |||||||||||||||||
Current | 59,648 | 27,736 | 36,098 | (700 | ) | 122,782 | |||||||||||
Deferred | (4,721 | ) | (496 | ) | 8,937 | — | 3,720 | ||||||||||
| | | | | | | | | | | | | | | | | |
54,927 | 27,240 | 45,035 | (700 | ) | 126,502 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Earnings before equity in earnings of nonconsolidated subsidiaries | 104,417 | 50,821 | 78,113 | (563 | ) | 232,788 | |||||||||||
Equity in earnings of nonconsolidated subsidiaries | 129,655 | 37,925 | 5,150 | (166,602 | ) | 6,128 | |||||||||||
| | | | | | | | | | | | | | | | | |
Net earnings | 234,072 | 88,746 | 83,263 | (167,165 | ) | 238,916 | |||||||||||
Less: Earnings attributable to noncontrolling interests | — | — | (4,844 | ) | — | (4,844 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net earnings attributable to Valmont Industries, Inc | $ | 234,072 | $ | 88,746 | $ | 78,419 | $ | (167,165 | ) | $ | 234,072 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Consolidated Comprehensive Income | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||
For the Year ended December 27, 2014 | |||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||
Net earnings | $ | 183,976 | $ | 67,725 | $ | 85,840 | $ | (148,223 | ) | $ | 189,318 | ||||||
| | | | | | | | | | | | | | | | | |
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||
Unrealized gains (losses) arising during the period | — | (51,536 | ) | (30,739 | ) | (82,275 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
— | (51,536 | ) | (30,739 | ) | — | (82,275 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Unrealized loss on cash flow hedge: | |||||||||||||||||
Loss arising during the period | 983 | 983 | |||||||||||||||
— | — | — | |||||||||||||||
Gain on cash flow hedges | 4,837 | — | — | — | 4,837 | ||||||||||||
Amortization cost included in interest expense | 594 | 594 | |||||||||||||||
| | | | | | | | | | | | | | | | | |
6,414 | — | — | — | 6,414 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Actuarial gain (loss) in defined benefit pension plan liability | — | (13,709 | ) | (13,709 | ) | ||||||||||||
Equity in other comprehensive income | (93,162 | ) | 93,162 | — | |||||||||||||
| | | | | | | | | | | | | | | | | |
Other comprehensive income (loss) | (86,748 | ) | (51,536 | ) | (44,448 | ) | 93,162 | (89,570 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income | 97,228 | 16,189 | 41,392 | (55,061 | ) | 99,748 | |||||||||||
Comprehensive income attributable to noncontrolling interests | (2,520 | ) | (2,520 | ) | |||||||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income attributable to Valmont Industries, Inc. | $ | 97,228 | $ | 16,189 | $ | $ | $ | (55,061 | ) | $ | 97,228 | ||||||
38,872 | |||||||||||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||
For the Year ended December 28, 2013 | |||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||
Net earnings | $ | 278,489 | $ | 97,955 | $ | 68,597 | $ | (164,581 | ) | $ | 280,460 | ||||||
| | | | | | | | | | | | | | | | | |
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||
Unrealized gains (losses) arising during the period | — | (4,772 | ) | (66,926 | ) | — | (71,698 | ) | |||||||||
Realized loss on sale of investment in foreign entity included in other expense | — | — | 5,194 | — | 5,194 | ||||||||||||
Realized loss on deconsolidation of subsidiary | 8,559 | 8,559 | |||||||||||||||
| | | | | | | | | | | | | | | | | |
— | (4,772 | ) | (53,173 | ) | — | (57,945 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Unrealized loss on cash flow hedge: | |||||||||||||||||
Amortization cost included in interest expense | 400 | — | — | — | 400 | ||||||||||||
| | | | | | | | | | | | | | | | | |
400 | — | — | — | 400 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Actuarial gain (loss) in defined benefit pension plan liability | — | — | (41,282 | ) | — | (41,282 | ) | ||||||||||
Equity in other comprehensive income | (106,430 | ) | — | — | 106,430 | — | |||||||||||
| | | | | | | | | | | | | | | | | |
Other comprehensive income (loss) | (106,030 | ) | (4,772 | ) | (94,455 | ) | 106,430 | (98,827 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income | 172,459 | 93,183 | (25,858 | ) | (58,151 | ) | 181,633 | ||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | (9,174 | ) | — | (9,174 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income attributable to Valmont Industries, Inc. | $ | 172,459 | $ | 93,183 | $ | (35,032 | ) | $ | (58,151 | ) | $ | 172,459 | |||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||
For the Year ended December 29, 2012 | |||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||
Net earnings | $ | 234,072 | $ | 88,746 | $ | 83,263 | $ | (167,165 | ) | $ | 238,916 | ||||||
| | | | | | | | | | | | | | | | | |
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||
Unrealized gains (losses) arising during the period | — | 884 | 14,857 | — | 15,741 | ||||||||||||
| | | | | | | | | | | | | | | | | |
— | 884 | 14,857 | — | 15,741 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Unrealized loss on cash flow hedge: | |||||||||||||||||
Amortization cost included in interest expense | 400 | 400 | |||||||||||||||
— | — | — | |||||||||||||||
| | | | | | | | | | | | | | | | | |
400 | — | — | — | 400 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Actuarial gain (loss) in defined benefit pension plan liability | — | — | (35,020 | ) | — | (35,020 | ) | ||||||||||
Equity in other comprehensive income | (20,514 | ) | — | — | 20,514 | — | |||||||||||
| | | | | | | | | | | | | | | | | |
Other comprehensive income (loss) | (20,114 | ) | 884 | (20,163 | ) | 20,514 | (18,879 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income | 213,958 | 89,630 | 63,100 | (146,651 | ) | 220,037 | |||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | (6,079 | ) | — | (6,079 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Comprehensive income attributable to Valmont Industries, Inc. | $ | 213,958 | $ | 89,630 | $ | 57,021 | $ | (146,651 | ) | $ | 213,958 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Consolidated Balance Sheets | CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
For the Year ended December 27, 2014 | |||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Total | |||||||||||||
Guarantors | |||||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 69,869 | $ | 2,157 | $ | 299,553 | $ | — | $ | 371,579 | |||||||
Receivables, net | 158,316 | 68,414 | 310,188 | — | 536,918 | ||||||||||||
Inventories | 127,859 | 54,914 | 177,512 | (763 | ) | 359,522 | |||||||||||
Prepaid expenses | 7,087 | 502 | 49,323 | — | 56,912 | ||||||||||||
Refundable and deferred income taxes | 53,307 | 6,194 | 8,509 | — | 68,010 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current assets | 416,438 | 132,181 | 845,085 | (763 | ) | 1,392,941 | |||||||||||
| | | | | | | | | | | | | | | | | |
Property, plant and equipment, at cost | 556,658 | 124,182 | 458,729 | — | 1,139,569 | ||||||||||||
Less accumulated depreciation and amortization | 319,899 | 65,493 | 147,724 | — | 533,116 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Net property, plant and equipment | 236,759 | 58,689 | 311,005 | — | 606,453 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Goodwill | 20,108 | 107,542 | 257,461 | 385,111 | |||||||||||||
Other intangible assets | 292 | 43,644 | 158,068 | 202,004 | |||||||||||||
Investment in subsidiaries and intercompany accounts | 1,446,989 | 825,236 | 887,055 | (3,159,280 | ) | — | |||||||||||
Other assets | 46,587 | — | 96,572 | 143,159 | |||||||||||||
| | | | | | | | | | | | | | | | | |
Total assets | $ | 2,167,173 | $ | 1,167,292 | $ | 2,555,246 | $ | (3,160,043 | ) | $ | 2,729,668 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Current installments of long-term debt | $ | 213 | $ | — | $ | 968 | $ | — | $ | 1,181 | |||||||
Notes payable to banks | — | — | 13,952 | — | 13,952 | ||||||||||||
Accounts payable | 59,893 | 15,151 | 121,521 | 196,565 | |||||||||||||
Accrued employee compensation and benefits | 48,169 | 5,385 | 34,396 | — | 87,950 | ||||||||||||
Accrued expenses | 32,616 | 6,052 | 49,812 | — | 88,480 | ||||||||||||
Dividends payable | 9,086 | — | — | — | 9,086 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 149,977 | 26,588 | 220,649 | — | 397,214 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Deferred income taxes | 5,584 | 28,988 | 37,225 | — | 71,797 | ||||||||||||
Long-term debt, excluding current installments | 759,895 | — | 6,759 | — | 766,654 | ||||||||||||
Defined benefit pension liability | — | — | 150,124 | — | 150,124 | ||||||||||||
Deferred compensation | 41,803 | — | 6,129 | 47,932 | |||||||||||||
Other noncurrent liabilities | 8,081 | — | 37,461 | — | 45,542 | ||||||||||||
Commitments and contingencies | |||||||||||||||||
Shareholders' equity: | |||||||||||||||||
Common stock of $1 par value | 27,900 | 457,950 | 648,682 | (1,106,633 | ) | 27,900 | |||||||||||
Additional paid-in capital | — | 150,286 | 1,098,408 | (1,248,694 | ) | — | |||||||||||
Retained earnings | 1,718,662 | 552,676 | 397,302 | (949,978 | ) | 1,718,662 | |||||||||||
Accumulated other comprehensive income | (134,433 | ) | (49,196 | ) | (96,065 | ) | 145,261 | (134,433 | ) | ||||||||
Treasury stock | (410,296 | ) | — | — | — | (410,296 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Total Valmont Industries, Inc. shareholders' equity | 1,201,833 | 1,111,716 | 2,048,327 | (3,160,043 | ) | 1,201,833 | |||||||||||
| | | | | | | | | | | | | | | | | |
Noncontrolling interest in consolidated subsidiaries | 48,572 | 48,572 | |||||||||||||||
| | | | | | | | | | | | | | | | | |
Total shareholders' equity | 1,201,833 | 1,111,716 | 2,096,899 | (3,160,043 | ) | 1,250,405 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities and shareholders' equity | $ | 2,167,173 | $ | 1,167,292 | $ | 2,555,246 | $ | (3,160,043 | ) | $ | 2,729,668 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED BALANCE SHEETS | |||||||||||||||||
For the Year ended December 28, 2013 | |||||||||||||||||
Parent | Guarantors | Non- | Eliminations | Total | |||||||||||||
Guarantors | |||||||||||||||||
ASSETS | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 215,576 | $ | 29,797 | $ | 368,333 | $ | — | $ | 613,706 | |||||||
Receivables, net | 139,179 | 108,600 | 267,661 | — | 515,440 | ||||||||||||
Inventories | 132,953 | 70,231 | 176,816 | — | 380,000 | ||||||||||||
Prepaid expenses | 4,735 | 932 | 17,330 | — | 22,997 | ||||||||||||
Refundable and deferred income taxes | 41,167 | 8,351 | 16,179 | — | 65,697 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current assets | 533,610 | 217,911 | 846,319 | — | 1,597,840 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Property, plant and equipment, at cost | 522,734 | 125,764 | 368,628 | — | 1,017,126 | ||||||||||||
Less accumulated depreciation and amortization | 300,066 | 61,520 | 121,330 | — | 482,916 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Net property, plant and equipment | 222,668 | 64,244 | 247,298 | — | 534,210 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Goodwill | 20,108 | 107,542 | 221,982 | — | 349,632 | ||||||||||||
Other intangible assets | 346 | 48,461 | 122,110 | — | 170,917 | ||||||||||||
Investment in subsidiaries and intercompany accounts | 1,417,425 | 791,450 | 827,508 | (3,036,388 | ) | — | |||||||||||
Other assets | 30,759 | — | 112,513 | (19,377 | ) | 123,895 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total assets | $ | 2,224,916 | $ | 1,229,608 | $ | 2,377,730 | $ | (3,055,760 | ) | $ | 2,776,494 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Current installments of long-term debt | $ | 188 | $ | — | $ | 14 | $ | — | $ | 202 | |||||||
Notes payable to banks | — | — | 19,024 | — | 19,024 | ||||||||||||
Accounts payable | 62,153 | 20,365 | 133,603 | — | 216,121 | ||||||||||||
Accrued employee compensation and benefits | 76,370 | 13,713 | 32,884 | — | 122,967 | ||||||||||||
Accrued expenses | 28,362 | 7,315 | 35,883 | — | 71,560 | ||||||||||||
Income Taxes Payable | — | 19,377 | — | (19,377 | ) | — | |||||||||||
Dividends payable | 6,706 | — | — | — | 6,706 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total current liabilities | 173,779 | 60,770 | 221,408 | (19,377 | ) | 436,580 | |||||||||||
| | | | | | | | | | | | | | | | | |
Deferred income taxes | 18,983 | 29,310 | 30,631 | — | 78,924 | ||||||||||||
Long-term debt, excluding current installments | 470,175 | — | 732 | — | 470,907 | ||||||||||||
Defined benefit pension liability | — | — | 154,397 | — | 154,397 | ||||||||||||
Deferred compensation | 32,339 | — | 6,770 | — | 39,109 | ||||||||||||
Other noncurrent liabilities | 7,615 | — | 44,116 | — | 51,731 | ||||||||||||
Commitments and contingencies | |||||||||||||||||
Shareholders' equity: | |||||||||||||||||
Common stock of $1 par value | 27,900 | 457,950 | 648,682 | (1,106,632 | ) | 27,900 | |||||||||||
Additional paid-in capital | — | 150,286 | 891,236 | (1,041,522 | ) | — | |||||||||||
Retained earnings | 1,562,670 | 528,952 | 472,162 | (1,001,114 | ) | 1,562,670 | |||||||||||
Accumulated other comprehensive income | (47,685 | ) | 2,340 | (115,225 | ) | 112,885 | (47,685 | ) | |||||||||
Treasury stock | (20,860 | ) | — | — | — | (20,860 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Total Valmont Industries, Inc. shareholders' equity | 1,522,025 | 1,139,528 | 1,896,855 | (3,036,383 | ) | 1,522,025 | |||||||||||
| | | | | | | | | | | | | | | | | |
Noncontrolling interest in consolidated subsidiaries | — | — | 22,821 | — | 22,821 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total shareholders' equity | 1,522,025 | 1,139,528 | 1,919,676 | (3,036,383 | ) | 1,544,846 | |||||||||||
| | | | | | | | | | | | | | | | | |
Total liabilities and shareholders' equity | $ | 2,224,916 | $ | 1,229,608 | $ | 2,377,730 | $ | (3,055,760 | ) | $ | 2,776,494 | ||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Condensed Consolidated Statements of Cash Flows | CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
For the Year Ended December 27, 2014 | |||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net earnings | $ | 183,976 | $ | 67,725 | $ | 85,840 | $ | (148,223 | ) | $ | 189,318 | ||||||
Adjustments to reconcile net earnings to net cash flows from operations: | |||||||||||||||||
Depreciation and amortization | 24,509 | 12,926 | 51,893 | — | 89,328 | ||||||||||||
Loss on investment | — | — | 3,795 | — | 3,795 | ||||||||||||
Non-cash debt refinancing costs | (2,478 | ) | — | — | — | (2,478 | ) | ||||||||||
Stock-based compensation | 6,730 | — | — | — | 6,730 | ||||||||||||
Defined benefit pension plan expense | — | — | 2,638 | — | 2,638 | ||||||||||||
Contribution to defined benefit pension plan | — | — | (18,173 | ) | — | (18,173 | ) | ||||||||||
Change in fair value of contingent consideration | — | — | (4,300 | ) | — | (4,300 | ) | ||||||||||
(Gain) loss on sale of property, plant and equipment | 145 | 143 | 104 | — | 392 | ||||||||||||
Equity in earnings in nonconsolidated subsidiaries | (129,031 | ) | (19,509 | ) | (63 | ) | 148,574 | (29 | ) | ||||||||
Deferred income taxes | (1,474 | ) | 1,866 | 4,859 | — | 5,251 | |||||||||||
Changes in assets and liabilities (net of the effect from acquisitions): | |||||||||||||||||
Receivables | (19,136 | ) | 40,186 | (20,143 | ) | — | 907 | ||||||||||
Inventories | 5,094 | 15,317 | 1,047 | — | 21,458 | ||||||||||||
Prepaid expenses | (2,352 | ) | 429 | (11,671 | ) | — | (13,594 | ) | |||||||||
Accounts payable | (2,260 | ) | (5,212 | ) | (26,849 | ) | — | (34,321 | ) | ||||||||
Accrued expenses | (21,448 | ) | (9,590 | ) | (3,740 | ) | — | (34,778 | ) | ||||||||
Other noncurrent liabilities | 622 | — | 1,133 | — | 1,755 | ||||||||||||
Income taxes payable | (24,945 | ) | (19,417 | ) | 4,559 | — | (39,803 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from operating activities | 17,952 | 84,864 | 70,929 | 351 | 174,096 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows from investing activities: | |||||||||||||||||
Purchase of property, plant and equipment | (41,260 | ) | (2,823 | ) | (28,940 | ) | — | (73,023 | ) | ||||||||
Acquisitions, net of cash acquired | — | — | (185,710 | ) | — | (185,710 | ) | ||||||||||
Proceeds from sale of assets | 43 | 126 | 2,320 | — | 2,489 | ||||||||||||
Other, net | 34,735 | (73,799 | ) | 38,796 | (351 | ) | (619 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from investing activities | (6,482 | ) | (76,496 | ) | (173,534 | ) | (351 | ) | (256,863 | ) | |||||||
| | | | | | | | | | | | | | | | | |
Cash flows from financing activities: | |||||||||||||||||
Net borrowings under short-term agreements | — | — | (4,472 | ) | — | (4,472 | ) | ||||||||||
Proceeds from long-term borrowings | 652,540 | — | (329 | ) | — | 652,211 | |||||||||||
Principal payments on long-term obligations | (356,994 | ) | — | (864 | ) | — | (357,858 | ) | |||||||||
Settlement of financial derivative | 4,981 | — | — | — | 4,981 | ||||||||||||
Dividends paid | (32,443 | ) | — | — | — | (32,443 | ) | ||||||||||
Intercompany dividends | 116,995 | (36,600 | ) | (80,395 | ) | — | — | ||||||||||
Intercompany interest on long-term note | — | 648 | (648 | ) | — | — | |||||||||||
Intercompany capital contribution | (143,000 | ) | — | 143,000 | — | — | |||||||||||
Dividends to noncontrolling interest | — | — | (2,919 | ) | — | (2,919 | ) | ||||||||||
Debt issuance fees | (7,644 | ) | — | — | — | (7,644 | ) | ||||||||||
Proceeds from exercises under stock plans | 14,572 | — | — | — | 14,572 | ||||||||||||
Excess tax benefits from stock option exercises | 4,264 | — | — | — | 4,264 | ||||||||||||
Purchase of treasury shares | (395,045 | ) | — | — | — | (395,045 | ) | ||||||||||
Purchase of common treasury shares—stock plan exercises | (15,403 | ) | — | — | — | (15,403 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from financing activities | (157,177 | ) | (35,952 | ) | 53,373 | — | (139,756 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | — | (56 | ) | (19,548 | ) | — | (19,604 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net change in cash and cash equivalents | (145,707 | ) | (27,640 | ) | (68,780 | ) | — | (242,127 | ) | ||||||||
Cash and cash equivalents—beginning of year | 215,576 | 29,797 | 368,333 | — | 613,706 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents—end of year | $ | 69,869 | $ | 2,157 | $ | 299,553 | $ | — | $ | 371,579 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
For the Year Ended December 28, 2013 | |||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net earnings | $ | 278,489 | $ | 97,955 | $ | 68,597 | $ | (164,581 | ) | $ | 280,460 | ||||||
Adjustments to reconcile net earnings to net cash flows from operations: | |||||||||||||||||
Depreciation and amortization | 21,270 | 12,862 | 43,304 | — | 77,436 | ||||||||||||
Deconsolidation of subsidiary | — | — | 12,011 | — | 12,011 | ||||||||||||
Impairment of property, plant and equipment | — | — | 12,161 | — | 12,161 | ||||||||||||
Stock-based compensation | 6,513 | — | — | — | 6,513 | ||||||||||||
Defined benefit pension plan expense | — | — | 6,569 | — | 6,569 | ||||||||||||
Contribution to defined benefit pension plan | — | — | (17,619 | ) | — | (17,619 | ) | ||||||||||
(Gain) loss on sale of property, plant and equipment | 885 | 42 | (5,245 | ) | — | (4,318 | ) | ||||||||||
Equity in earnings in nonconsolidated subsidiaries | (150,512 | ) | (16,417 | ) | (494 | ) | 166,588 | (835 | ) | ||||||||
Deferred income taxes | (8,948 | ) | (19 | ) | (1,174 | ) | — | (10,141 | ) | ||||||||
Changes in assets and liabilities (net of the effect from acquisitions): | — | ||||||||||||||||
Receivables | 6,181 | (22,259 | ) | 3,370 | — | (12,708 | ) | ||||||||||
Inventories | 12,966 | 1,757 | (1,292 | ) | — | 13,431 | |||||||||||
Prepaid expenses | 2,417 | 98 | 1,600 | — | 4,115 | ||||||||||||
Accounts payable | (10,458 | ) | (1,643 | ) | 24,549 | — | 12,448 | ||||||||||
Accrued expenses | 19,191 | 5,824 | (3,317 | ) | — | 21,698 | |||||||||||
Other noncurrent liabilities | 3,201 | — | (4,675 | ) | — | (1,474 | ) | ||||||||||
Income taxes payable | (5,908 | ) | (3,251 | ) | 5,029 | 825 | (3,305 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from operating activities | 175,287 | 74,949 | 143,374 | 2,832 | 396,442 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows from investing activities: | |||||||||||||||||
Purchase of property, plant and equipment | (76,582 | ) | (4,439 | ) | (25,732 | ) | — | (106,753 | ) | ||||||||
Acquisitions, net of cash acquired | — | — | (63,152 | ) | — | (63,152 | ) | ||||||||||
Proceeds from sale of assets | 794 | 35 | 36,753 | — | 37,582 | ||||||||||||
Other, net | 86,258 | (83,327 | ) | 503 | (2,832 | ) | 602 | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from investing activities | 10,470 | (87,731 | ) | (51,628 | ) | (2,832 | ) | (131,721 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Cash flows from financing activities: | |||||||||||||||||
Net borrowings under short-term agreements | — | — | 5,510 | — | 5,510 | ||||||||||||
Proceeds from long-term borrowings | — | — | 274 | — | 274 | ||||||||||||
Principal payments on long-term obligations | (187 | ) | — | (404 | ) | — | (591 | ) | |||||||||
Cash decrease due to deconsolidation of subsidiary | — | — | (11,615 | ) | — | (11,615 | ) | ||||||||||
Dividends paid | (25,414 | ) | — | — | — | (25,414 | ) | ||||||||||
Intercompany dividends | 8,947 | 20,133 | (29,080 | ) | — | — | |||||||||||
Intercompany interest on long-term note | — | 1,229 | (1,229 | ) | — | — | |||||||||||
Intercompany principal payment on long-term note | — | 22,430 | (22,430 | ) | — | — | |||||||||||
Dividends to noncontrolling interest | — | — | (1,767 | ) | — | (1,767 | ) | ||||||||||
Purchase of noncontrolling interest | — | — | (9,324 | ) | — | (9,324 | ) | ||||||||||
Proceeds from exercises under stock plans | 16,348 | — | — | — | 16,348 | ||||||||||||
Excess tax benefits from stock option exercises | 5,306 | — | — | — | 5,306 | ||||||||||||
Purchase of common treasury shares—stock plan exercises | (16,107 | ) | — | — | — | (16,107 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from financing activities | (11,107 | ) | 43,792 | (70,065 | ) | — | (37,380 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | — | (7,927 | ) | (19,837 | ) | — | (27,764 | ) | |||||||||
| | | | | | | | | | | | | | | | | |
Net change in cash and cash equivalents | 174,650 | 23,083 | 1,844 | — | 199,577 | ||||||||||||
Cash and cash equivalents—beginning of year | 40,926 | 6,714 | 366,489 | — | 414,129 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents—end of year | $ | 215,576 | $ | 29,797 | $ | 368,333 | $ | — | $ | 613,706 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||||
For the Year Ended December 29, 2012 | |||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Total | |||||||||||||
Cash flows from operations: | |||||||||||||||||
Net earnings | $ | 234,072 | $ | 88,746 | $ | 83,263 | $ | (167,165 | ) | $ | 238,916 | ||||||
Adjustments to reconcile net earnings to net cash flows from operations: | |||||||||||||||||
Depreciation and amortization | 19,121 | 12,923 | 38,174 | — | 70,218 | ||||||||||||
Stock-based compensation | 5,829 | — | — | — | 5,829 | ||||||||||||
Defined benefit pension plan expense | — | — | 4,281 | — | 4,281 | ||||||||||||
Contribution to defined benefit pension plan | — | — | (11,591 | ) | — | (11,591 | ) | ||||||||||
Loss on sale of property, plant and equipment | 89 | (17 | ) | 249 | — | 321 | |||||||||||
Equity in earnings in nonconsolidated subsidiaries | (129,655 | ) | (37,925 | ) | (5,150 | ) | 166,602 | (6,128 | ) | ||||||||
Deferred income taxes | (4,721 | ) | (496 | ) | 8,937 | — | 3,720 | ||||||||||
Other | — | — | — | — | — | ||||||||||||
Changes in assets and liabilities, before acquisitions: | |||||||||||||||||
Receivables | (21,751 | ) | (32,833 | ) | (30,306 | ) | — | (84,890 | ) | ||||||||
Inventories | (20,756 | ) | 5,850 | 1,293 | — | (13,613 | ) | ||||||||||
Prepaid expenses | (3,705 | ) | (20 | ) | 4,968 | — | 1,243 | ||||||||||
Accounts payable | 4,446 | 578 | (11,273 | ) | — | (6,249 | ) | ||||||||||
Accrued expenses | 20,339 | 945 | (644 | ) | — | 20,640 | |||||||||||
Other noncurrent liabilities | 123 | — | (4,473 | ) | — | (4,350 | ) | ||||||||||
Income taxes payable (refundable) | (18,979 | ) | 350 | (1,921 | ) | (700 | ) | (21,250 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from operations | 84,452 | 38,101 | 75,807 | (1,263 | ) | 197,097 | |||||||||||
| | | | | | | | | | | | | | | | | |
Cash flows from investing activities: | |||||||||||||||||
Purchase of property, plant and equipment | (43,590 | ) | (22,197 | ) | (31,287 | ) | — | (97,074 | ) | ||||||||
Acquisitions, net of cash acquired | — | — | (45,687 | ) | — | (45,687 | ) | ||||||||||
Proceeds from sale of assets | 113 | 39 | 5,873 | — | 6,025 | ||||||||||||
Other, net | (10,192 | ) | (18,397 | ) | 27,370 | 1,263 | 44 | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from investing activities | (53,669 | ) | (40,555 | ) | (43,731 | ) | 1,263 | (136,692 | ) | ||||||||
| | | | | | | | | | | | | | | | | |
Cash flows from financing activities: | |||||||||||||||||
Net borrowings under short-term agreements | — | — | 1,828 | — | 1,828 | ||||||||||||
Proceeds from long-term borrowings | 39,000 | — | 126 | — | 39,126 | ||||||||||||
Principal payments on long-term obligations | (39,197 | ) | — | (367 | ) | — | (39,564 | ) | |||||||||
Dividends paid | (21,520 | ) | — | — | — | (21,520 | ) | ||||||||||
Dividends to noncontrolling interest | — | — | (1,944 | ) | — | (1,944 | ) | ||||||||||
Proceeds from sale of partial ownership interest | — | — | 1,404 | — | 1,404 | ||||||||||||
Debt issuance fees | (1,747 | ) | — | — | — | (1,747 | ) | ||||||||||
Proceeds from exercises under stock plans | 21,827 | — | — | — | 21,827 | ||||||||||||
Excess tax benefits from stock option exercises | 5,494 | — | — | — | 5,494 | ||||||||||||
Purchase of common treasury shares—stock plan exercises | (21,259 | ) | — | — | — | (21,259 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Net cash flows from financing activities | (17,402 | ) | — | 1,047 | — | (16,355 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on cash and cash equivalents | — | 2,285 | 4,900 | — | 7,185 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Net change in cash and cash equivalents | 13,381 | (169 | ) | 38,023 | — | 51,235 | |||||||||||
Cash and cash equivalents—beginning of year | 27,545 | 6,883 | 328,466 | — | 362,894 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Cash and cash equivalents—end of year | $ | 40,926 | $ | 6,714 | $ | 366,489 | $ | — | $ | 414,129 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
QUARTERLY_FINANCIAL_DATA_Unaud1
QUARTERLY FINANCIAL DATA (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 27, 2014 | ||||||||||||||||||||||||||
QUARTERLY FINANCIAL DATA (Unaudited) | ||||||||||||||||||||||||||
Schedule of quarterly financial data (Unaudited) | ||||||||||||||||||||||||||
Net Earnings | ||||||||||||||||||||||||||
Per Share | Stock Price | |||||||||||||||||||||||||
Gross | Dividends | |||||||||||||||||||||||||
Net Sales | Profit | Amount | Basic | Diluted | High | Low | Declared | |||||||||||||||||||
2014 | ||||||||||||||||||||||||||
First | $ | 751,740 | $ | 206,982 | $ | 55,980 | $ | 2.10 | $ | 2.08 | $ | 155.64 | $ | 141.74 | $ | 0.250 | ||||||||||
Second | 842,599 | 220,477 | 63,976 | 2.40 | 2.38 | 163.23 | 143.02 | 0.375 | ||||||||||||||||||
Third(1) | 765,668 | 199,500 | 23,559 | 0.93 | 0.92 | 155.62 | 131.68 | 0.375 | ||||||||||||||||||
Fourth | 763,136 | 181,158 | 40,461 | 1.67 | 1.66 | 139.31 | 123.44 | 0.375 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Year | $ | 3,123,143 | $ | 808,117 | $ | 183,976 | $ | 7.15 | $ | 7.09 | $ | 163.23 | $ | 123.44 | $ | 1.375 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
2013 | ||||||||||||||||||||||||||
First | $ | 819,630 | $ | 235,369 | $ | 77,569 | $ | 2.92 | $ | 2.89 | $ | 164.93 | $ | 133.40 | $ | 0.225 | ||||||||||
Second | 878,659 | 261,471 | 89,563 | 3.36 | 3.33 | 157.99 | 132.16 | 0.250 | ||||||||||||||||||
Third | 778,032 | 225,564 | 56,489 | 2.12 | 2.10 | 153.16 | 133.38 | 0.250 | ||||||||||||||||||
Fourth(2) | 827,890 | 222,824 | 54,868 | 2.06 | 2.04 | 150.58 | 129.00 | 0.250 | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Year | $ | 3,304,211 | $ | 945,228 | $ | 278,489 | $ | 10.45 | $ | 10.35 | $ | 164.93 | $ | 129.00 | $ | 0.975 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per share are computed independently for each of the quarters. Therefore, the sum of the quarterly earnings per share may not equal the total for the year. | ||||||||||||||||||||||||||
-1 | The third quarter of 2014 included costs associated with refinancing of our long-term debt of $24.2 million after tax ($0.95 per share) and a non-cash fair market value adjustment for Delta EMD shares of $1.4 million after tax ($.05 per share). | |||||||||||||||||||||||||
-2 | The fourth quarter of 2013 included a non-cash after-tax loss of $12,011 ($.45 per share) associated with the deconsolidation of Delta EMD Pty. Ltd. and an after-tax loss of $4,569 ($0.17 per share) related to a fixed asset impairment loss. | |||||||||||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 |
item | ||
Fiscal year | ||
Length of fiscal year | 364 days | 364 days |
Cash overdrafts | ||
Cash book overdrafts | $18,038 | $21,713 |
Segments | ||
Number of Reportable Segments | 4 | |
Percentage of Sales to Total Consolidated Sales of Other Business Activities, Aggregated as Other, Maximum | 10.00% | |
Inventories | ||
Inventory valued at the lower of cost, determined on the last-in, first-out (LIFO) method, or market (as a percent) | 44.00% | 43.00% |
Excess of replacement cost of inventories over the LIFO value | $47,178 | $45,204 |
Minimum | ||
Principles of Consolidation | ||
Equity method investment in affiliates, ownership percentage | 20.00% | |
Fiscal year | ||
Length of fiscal year | 364 days | |
Maximum | ||
Principles of Consolidation | ||
Equity method investment in affiliates, ownership percentage | 50.00% | |
Cost method investment in affiliates, ownership percentage | 20.00% | |
Fiscal year | ||
Length of fiscal year | 371 days |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Nov. 30, 2013 |
Long-lived assets | ||||
Depreciation expense | $73,395 | $62,291 | $55,559 | |
Impairment loss | 0 | 12,161 | ||
Delta EMD, Ltd. | ||||
Long-lived assets | ||||
Impairment loss | $12,161 | |||
Buildings and improvements | Minimum | ||||
Long-lived assets | ||||
Estimated useful lives | 15 years | |||
Buildings and improvements | Maximum | ||||
Long-lived assets | ||||
Estimated useful lives | 40 years | |||
Machinery and equipment | Minimum | ||||
Long-lived assets | ||||
Estimated useful lives | 3 years | |||
Machinery and equipment | Maximum | ||||
Long-lived assets | ||||
Estimated useful lives | 12 years | |||
Transportation equipment | Minimum | ||||
Long-lived assets | ||||
Estimated useful lives | 3 years | |||
Transportation equipment | Maximum | ||||
Long-lived assets | ||||
Estimated useful lives | 24 years | |||
Office furniture and equipment | Minimum | ||||
Long-lived assets | ||||
Estimated useful lives | 3 years | |||
Office furniture and equipment | Maximum | ||||
Long-lived assets | ||||
Estimated useful lives | 7 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) | 12 Months Ended |
Dec. 27, 2014 | |
Minimum | |
Intangible assets | |
Intangible assets lives | 5 years |
Maximum | |
Intangible assets | |
Intangible assets lives | 20 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 27, 2014 |
Components of accumulated other comprehensive income (loss) | |
Balance at the beginning of the period | ($47,685) |
Current-period comprehensive income (loss) | -86,748 |
Balance at the end of the period | -134,433 |
Foreign Currency Translation Adjustments | |
Components of accumulated other comprehensive income (loss) | |
Balance at the beginning of the period | -20,165 |
Current-period comprehensive income (loss) | -79,453 |
Balance at the end of the period | -99,618 |
Unrealized Loss on Cash Flow Hedge | |
Components of accumulated other comprehensive income (loss) | |
Balance at the beginning of the period | -2,535 |
Current-period comprehensive income (loss) | 6,414 |
Balance at the end of the period | 3,879 |
Defined Benefit Pension Plan | |
Components of accumulated other comprehensive income (loss) | |
Balance at the beginning of the period | -24,985 |
Current-period comprehensive income (loss) | -13,709 |
Balance at the end of the period | ($38,694) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||
13-May-14 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Mar. 02, 2013 | Mar. 30, 2013 | Feb. 28, 2015 | |
Equity Method Investments | |||||||
Amount recognized in currency translation adjustments previously recorded as part of accumulated other comprehensive income | ($5,194,000) | ||||||
Research and Development | |||||||
Research and development expenses | 13,900,000 | 10,200,000 | 7,100,000 | ||||
Stock Repurchase Program | |||||||
Authorized amount | 500,000,000 | 250,000,000 | |||||
Length of authorization period | 12 months | ||||||
Number of shares acquired | 2,711,149 | ||||||
Amount paid for share repurchase | 395,045,000 | ||||||
Manganese Materials Company Pty. Ltd. | |||||||
Equity Method Investments | |||||||
Proceeds from sale of business | 29,250,000 | ||||||
Amount recognized in currency translation adjustments previously recorded as part of accumulated other comprehensive income | 5,194,000 | ||||||
Deferred tax benefits associated with sale of business | $3,200,000 |
ACQUISITIONS_AND_DECONSOLIDATI2
ACQUISITIONS AND DECONSOLIDATION (Details) (USD $) | 12 Months Ended | 0 Months Ended | 10 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Mar. 03, 2014 | Dec. 27, 2014 | Oct. 06, 2014 | Oct. 25, 2014 | Dec. 27, 2014 | Feb. 05, 2013 | Sep. 27, 2014 | Dec. 28, 2013 | Dec. 19, 2012 | Oct. 31, 2013 | Aug. 25, 2014 | Dec. 29, 2012 | |
item | ||||||||||||||
Fair values of the assets acquired and liabilities assumed | ||||||||||||||
Goodwill | $385,111,000 | $349,632,000 | $385,111,000 | $385,111,000 | $349,632,000 | $330,791,000 | ||||||||
Valmont SM, AgSense, Locker, Armorflex and Shakespeare acquisitions | ||||||||||||||
Net sales and net earnings included in Consolidated Statements of Earnings | ||||||||||||||
Net sales included in Consolidated Statements of Earnings | 243,139,000 | |||||||||||||
Net earnings included in Consolidated Statements of Earnings | 17,872,000 | |||||||||||||
Pro forma results of operations | ||||||||||||||
Net sales | 3,201,947 | 3,556,988 | ||||||||||||
Net earnings | 189,391 | 293,340 | ||||||||||||
Earnings per share-diluted | $7.30 | $10.91 | ||||||||||||
Valmont SM | ||||||||||||||
Acquisitions | ||||||||||||||
Ownership percentage acquired | 90.00% | |||||||||||||
Cash acquired | 56,000 | |||||||||||||
Annual sales | 190,000,000 | |||||||||||||
Number of manufacturing locations operated | 2 | |||||||||||||
Cash paid for acquisition | 120,483,000 | |||||||||||||
Fair values of the assets acquired and liabilities assumed | ||||||||||||||
Current assets | 73,421,000 | |||||||||||||
Property, plant and equipment | 85,638,000 | |||||||||||||
Intangible assets | 30,340,000 | |||||||||||||
Goodwill | 16,803,000 | |||||||||||||
Total fair value of assets acquired | 206,202,000 | |||||||||||||
Current liabilities | 47,754,000 | |||||||||||||
Deferred income taxes | 19,715,000 | |||||||||||||
Intercompany note payable | 37,448,000 | |||||||||||||
Long-term debt | 8,941,000 | |||||||||||||
Total fair value of liabilities assumed | 113,858,000 | |||||||||||||
Non-controlling interests | 9,309,000 | |||||||||||||
Net assets acquired | 83,035,000 | |||||||||||||
Net sales and net earnings included in Consolidated Statements of Earnings | ||||||||||||||
Net sales included in Consolidated Statements of Earnings | 146,432,000 | |||||||||||||
Net earnings included in Consolidated Statements of Earnings | 9,139,000 | |||||||||||||
Shakespeare | ||||||||||||||
Acquisitions | ||||||||||||||
Annual sales | 55,000,000 | |||||||||||||
Cash paid for acquisition | 48,272,000 | |||||||||||||
Fair values of the assets acquired and liabilities assumed | ||||||||||||||
Current assets | 12,532,000 | |||||||||||||
Property, plant and equipment | 10,694,000 | |||||||||||||
Intangible assets | 13,500,000 | |||||||||||||
Goodwill | 15,416,000 | |||||||||||||
Total fair value of assets acquired | 52,142,000 | |||||||||||||
Current liabilities | 3,870,000 | |||||||||||||
Net assets acquired | 48,272,000 | |||||||||||||
Net sales and net earnings included in Consolidated Statements of Earnings | ||||||||||||||
Net sales included in Consolidated Statements of Earnings | 12,321,000 | |||||||||||||
Net earnings included in Consolidated Statements of Earnings | 958,000 | |||||||||||||
Locker | ||||||||||||||
Acquisitions | ||||||||||||||
Ownership percentage acquired | 100.00% | |||||||||||||
Cash acquired | 116,000 | |||||||||||||
Cash paid for acquisition | 53,152,000 | |||||||||||||
Fair value of contingent consideration | 7,178,000 | |||||||||||||
Payments Made to Sellers Upon Achievement of Certain Targets | 2,300,000 | 2,300,000 | ||||||||||||
Reversal of liability | 4,300,000 | |||||||||||||
Period at the end of which contingent consideration is to be paid | 2 years | |||||||||||||
Locker | Maximum | ||||||||||||||
Acquisitions | ||||||||||||||
Fair value of contingent consideration | 7,911,000 | |||||||||||||
Armorflex International Ltd. | ||||||||||||||
Acquisitions | ||||||||||||||
Ownership percentage acquired | 100.00% | 100.00% | ||||||||||||
Cash paid for acquisition | 10,000,000 | |||||||||||||
Fair values of the assets acquired and liabilities assumed | ||||||||||||||
Intangible assets | 3,792,000 | 3,792,000 | ||||||||||||
Goodwill | 6,823,000 | 6,823,000 | ||||||||||||
Pure Metal Galvanizing | ||||||||||||||
Acquisitions | ||||||||||||||
Cash paid for acquisition | 45,687,000 | |||||||||||||
Fair value of contingent consideration | 3,884,000 | |||||||||||||
Period at the end of which contingent consideration is to be paid | 5 years | |||||||||||||
Fair values of the assets acquired and liabilities assumed | ||||||||||||||
Goodwill | 12,676,000 | |||||||||||||
Net sales and net earnings included in Consolidated Statements of Earnings | ||||||||||||||
Number of custom galvanizing operations | 3 | |||||||||||||
Customer relationships, trade name and other intangible assets | 14,066,000 | |||||||||||||
Valley Irrigation South Africa Pty. Ltd. | ||||||||||||||
Acquisitions | ||||||||||||||
Ownership percentage acquired | 40.00% | |||||||||||||
Cash paid for acquisition | 9,324,000 | |||||||||||||
AgSense LLC | ||||||||||||||
Acquisitions | ||||||||||||||
Ownership percentage acquired | 51.00% | |||||||||||||
Cash paid for acquisition | 17,000,000,000 | |||||||||||||
Fair values of the assets acquired and liabilities assumed | ||||||||||||||
Goodwill | $17,193,000 |
ACQUISITIONS_AND_DECONSOLIDATI3
ACQUISITIONS AND DECONSOLIDATION (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 27, 2014 | Aug. 25, 2014 |
Valmont SM | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Amount | $30,340 | |
Shakespeare | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Amount | 13,500 | |
AgSense LLC | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Amount | 16,083 | |
Backlog | Valmont SM | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Amount | 3,145 | |
Customer Relationships | Valmont SM | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Amount | 15,725 | |
Weighted Average Amortization Period | 1 year 6 months | |
Customer Relationships | Shakespeare | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Amount | 9,500 | |
Weighted Average Amortization Period | 15 years | |
Customer Relationships | AgSense LLC | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Weighted Average Amortization Period | 10 years | |
Patents | AgSense LLC | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Weighted Average Amortization Period | 7 years | |
Software and Technology | Valmont SM | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Weighted Average Amortization Period | 12 years | |
Trade names | Valmont SM | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Amount | 11,470 | |
Trade names | Shakespeare | ||
Major classes of acquired intangible assets and weighted-average amortization periods | ||
Amount | $4,000 |
ACQUISITIONS_AND_DECONSOLIDATI4
ACQUISITIONS AND DECONSOLIDATION (Details 3) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 27, 2014 |
Deconsolidation | ||||
Deconsolidation of subsidiary | $12,011 | |||
Realized loss on deconsolidation of subsidiary | 8,559 | |||
Maximum | ||||
Deconsolidation | ||||
Ownership interest (as a percent) | 50.00% | |||
Delta EMD, Ltd. | ||||
Deconsolidation | ||||
Supplementary contribution to Delta Pension Plan | 1,500,000 | |||
Deconsolidation of subsidiary | 12,011 | |||
Loss on deconsolidation (in dollars per share) | $0.45 | |||
Realized loss on deconsolidation of subsidiary | 8,559 | |||
Losses due to remeasurement of remaining investment | 3,452 | |||
Net sales included in Company's Consolidated Statements of Earnings | 38,621 | 44,290 | ||
Net earnings included in Company's Consolidated Statements of Earnings | $3,535 | $1,043 | ||
Delta EMD, Ltd. | Maximum | ||||
Deconsolidation | ||||
Ownership interest (as a percent) | 50.00% | 50.00% |
CASH_FLOW_SUPPLEMENTARY_INFORM2
CASH FLOW SUPPLEMENTARY INFORMATION (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
CASH FLOW SUPPLEMENTARY INFORMATION | |||
Interest | $32,601 | $32,655 | $31,276 |
Income taxes | $111,174 | $167,146 | $137,121 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
INVENTORIES | ||
Raw materials and purchased parts | $179,093 | $179,576 |
Work-in-process | 27,835 | 27,294 |
Finished goods and manufactured goods | 199,772 | 218,334 |
Subtotal | 406,700 | 425,204 |
Less: LIFO reserve | 47,178 | 45,204 |
Net inventory | $359,522 | $380,000 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Long-lived assets | ||
Property, plant and equipment, at cost | $1,139,569 | $1,017,126 |
Land and improvements | ||
Long-lived assets | ||
Property, plant and equipment, at cost | 82,372 | 71,726 |
Buildings and improvements | ||
Long-lived assets | ||
Property, plant and equipment, at cost | 327,863 | 265,112 |
Machinery and equipment | ||
Long-lived assets | ||
Property, plant and equipment, at cost | 593,387 | 520,262 |
Transportation equipment | ||
Long-lived assets | ||
Property, plant and equipment, at cost | 35,205 | 37,213 |
Office furniture and equipment | ||
Long-lived assets | ||
Property, plant and equipment, at cost | 76,589 | 73,200 |
Construction in progress | ||
Long-lived assets | ||
Property, plant and equipment, at cost | $24,153 | $49,613 |
PROPERTY_PLANT_AND_EQUIPMENT_D1
PROPERTY, PLANT AND EQUIPMENT (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Operating leases | |||
Rental expense for operating leases | $28,580 | $26,567 | $24,645 |
Minimum lease payments under operating leases | |||
2015 | 24,525 | ||
2016 | 19,694 | ||
2017 | 16,166 | ||
2018 | 12,171 | ||
2019 | 9,096 | ||
Subsequent | 35,042 | ||
Total minimum lease payments | $116,694 | ||
Minimum | |||
Operating leases | |||
Unexpired term | 1 year | ||
Maximum | |||
Operating leases | |||
Unexpired term | 15 years |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Components of amortized intangible assets | |||
Gross Carrying Amount | $228,027 | $194,345 | |
Accumulated Amortization | 103,050 | 87,597 | |
Amortization expense for intangible assets | 18,414 | 15,233 | 14,332 |
Estimated amortization expense | |||
2015 | 18,176 | ||
2016 | 16,406 | ||
2017 | 16,364 | ||
2018 | 14,703 | ||
2019 | 13,871 | ||
Customer Relationships | |||
Components of amortized intangible assets | |||
Gross Carrying Amount | 207,509 | 177,495 | |
Accumulated Amortization | 88,538 | 76,024 | |
Weighted Average Life | 13 years | 13 years | |
Proprietary Software and Database | |||
Components of amortized intangible assets | |||
Gross Carrying Amount | 3,769 | 3,896 | |
Accumulated Amortization | 2,977 | 2,896 | |
Weighted Average Life | 8 years | 6 years | |
Patents and Proprietary Technology | |||
Components of amortized intangible assets | |||
Gross Carrying Amount | 12,394 | 11,334 | |
Accumulated Amortization | 8,537 | 7,239 | |
Weighted Average Life | 8 years | 8 years | |
Non-compete Agreements | |||
Components of amortized intangible assets | |||
Gross Carrying Amount | 4,355 | 1,620 | |
Accumulated Amortization | $2,998 | $1,438 | |
Weighted Average Life | 3 years | 6 years |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS (Details 2) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Webforge | ||
Non-amortized intangible assets | ||
Carrying value of trade names | $16,801 | $17,787 |
Valmont SM | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 10,818 | |
Newmark | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 11,111 | 11,111 |
Ingal EPS/Ingal Civil Products | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 8,867 | 9,387 |
Donhad | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 6,689 | 7,082 |
Shakespeare Member | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 4,000 | |
Industrial Galvanizers | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 3,889 | 4,117 |
Other | ||
Non-amortized intangible assets | ||
Carrying value of trade names | 14,852 | 14,685 |
Trade names | ||
Non-amortized intangible assets | ||
Carrying value of trade names | $77,027 | $64,169 |
GOODWILL_AND_INTANGIBLE_ASSETS4
GOODWILL AND INTANGIBLE ASSETS (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 |
Carrying amount of goodwill | ||
Balance at the beginning of the period | $349,632 | $330,791 |
Acquisitions | 49,562 | 21,189 |
Foreign currency translation | -14,083 | -2,348 |
Balance at the end of the period | 385,111 | 349,632 |
Engineered Infrastructure Products segment: | ||
Carrying amount of goodwill | ||
Balance at the beginning of the period | 175,442 | 155,185 |
Acquisitions | 32,219 | 21,189 |
Foreign currency translation | -10,587 | -2,669 |
Other | -1,737 | |
Balance at the end of the period | 197,074 | 175,442 |
Utility Support Structures segment | ||
Carrying amount of goodwill | ||
Balance at the beginning of the period | 77,141 | |
Other | 1,737 | |
Balance at the end of the period | 75,404 | 75,404 |
Coatings segment | ||
Carrying amount of goodwill | ||
Balance at the beginning of the period | 77,062 | 77,053 |
Foreign currency translation | -2,200 | 9 |
Balance at the end of the period | 74,862 | 77,062 |
Irrigation segment | ||
Carrying amount of goodwill | ||
Balance at the beginning of the period | 2,420 | 2,517 |
Acquisitions | 17,193 | |
Foreign currency translation | -77 | -97 |
Balance at the end of the period | 19,536 | 2,420 |
Other | ||
Carrying amount of goodwill | ||
Balance at the beginning of the period | 19,304 | 18,895 |
Foreign currency translation | -1,069 | 409 |
Balance at the end of the period | $18,235 | $19,304 |
BANK_CREDIT_ARRANGEMENTS_Detai
BANK CREDIT ARRANGEMENTS (Details) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Bank Credit Arrangements | ||
Outstanding amount | $13,952 | $19,024 |
Short-term borrowings | ||
Bank Credit Arrangements | ||
Total line of credit facility for short-term borrowings | 108,554 | |
Outstanding amount | 13,058 | |
Unused and available borrowings | 95,496 | |
Fees in connection with line of credit | 0 | |
Weighted average interest rate on short-term borrowings (as a percent) | 6.56% | 8.65% |
Other short-term bank loans | ||
Bank Credit Arrangements | ||
Outstanding amount | $894 | $880 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Mar. 30, 2013 | |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | ||||
United States | $168,975,000 | $338,163,000 | $248,840,000 | |
Foreign | 115,208,000 | 111,254,000 | 110,450,000 | |
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 284,183,000 | 449,417,000 | 359,290,000 | |
Current: | ||||
Federal | 52,588,000 | 110,847,000 | 81,000,000 | |
State | 5,059,000 | 16,398,000 | 10,342,000 | |
Foreign | 32,443,000 | 39,285,000 | 32,294,000 | |
Total | 90,090,000 | 166,530,000 | 123,636,000 | |
Non-current: | -447,000 | 1,392,000 | -854,000 | |
Deferred: | ||||
Federal | 447,000 | -8,661,000 | -3,824,000 | |
State | 1,376,000 | -307,000 | -660,000 | |
Foreign | 3,428,000 | -1,173,000 | 8,204,000 | |
Total | 5,251,000 | -10,141,000 | 3,720,000 | |
Total income tax expense (benefit) | 94,894,000 | 157,781,000 | 126,502,000 | |
Reconciliations of statutory federal income tax rate and effective tax rate | ||||
Statutory federal income tax rate (as a percent) | 35.00% | 35.00% | 35.00% | |
State income taxes, net of federal benefit (as a percent) | 1.80% | 2.40% | 1.70% | |
Carryforwards, credits and changes in valuation allowances (as a percent) | -0.40% | 0.90% | 1.80% | |
Foreign tax rate differences (as a percent) | -4.40% | -2.40% | -2.50% | |
Changes in unrecognized tax benefits (as a percent) | -0.20% | 0.30% | -0.20% | |
Domestic production activities deduction (as a percent) | -1.60% | -2.10% | -2.30% | |
Other (as a percent) | 3.20% | 1.00% | 1.70% | |
Total (as a percent) | 33.40% | 35.10% | 35.20% | |
Deferred income tax assets: | ||||
Accrued expenses and allowances | 17,446,000 | 17,038,000 | ||
Accrued insurance | 882,000 | 1,508,000 | ||
Tax credits and loss carryforwards | 148,484,000 | 146,473,000 | ||
Defined benefit pension liability | 30,025,000 | 30,879,000 | ||
Inventory allowances | 4,804,000 | 3,938,000 | ||
Accrued warranty | 6,920,000 | 6,552,000 | ||
Deferred compensation | 40,348,000 | 51,413,000 | ||
Gross deferred income tax assets | 248,909,000 | 257,801,000 | ||
Valuation allowance | -104,487,000 | -107,767,000 | ||
Net deferred income tax assets | 144,422,000 | 150,034,000 | ||
Deferred income tax liabilities: | ||||
Work-in-process | 5,352,000 | |||
Property, plant and equipment | 43,084,000 | 36,657,000 | ||
Intangible assets | 60,316,000 | 57,787,000 | ||
Other liabilities | 6,738,000 | 7,206,000 | ||
Total deferred income tax liabilities | 115,490,000 | 101,650,000 | ||
Net deferred income tax asset/(liability) | 28,932,000 | 48,384,000 | ||
Deferred income tax assets (liabilities), Balance Sheet Caption | ||||
Refundable and deferred income taxes | 30,239,000 | 57,344,000 | ||
Other assets | 70,490,000 | 69,964,000 | ||
Deferred income taxes | 71,797,000 | 78,924,000 | ||
Net deferred income tax asset/(liability) | 28,932,000 | 48,384,000 | ||
Tax credit and net operating loss carryforwards related to the defined benefit pension obligation | 148,484,000 | 146,473,000 | ||
Deferred tax assets related to the defined benefit pension obligation | 30,025,000 | 30,879,000 | ||
Uncertain income tax positions recognized, if percentage is greater than, likelihood of being realized upon ultimate settlement | 50.00% | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Gross Unrecognized Tax Benefits beginning of year | 4,727,000 | 3,370,000 | ||
Gross increases tax positions in prior period | 1,464,000 | |||
Gross decreases tax positions in prior period | -456,000 | |||
Gross increases current period tax positions | 610,000 | 1,336,000 | ||
Lapse of statute of limitations | -613,000 | -1,443,000 | ||
Gross Unrecognized Tax Benefits end of year | 4,268,000 | 4,727,000 | 3,370,000 | |
Uncertain tax positions for which reversal is reasonably possible during the next 12 months | 1,284,000 | |||
Reduction of income tax expense, due to expiration of statutes of limitation | 399,000 | 938,000 | ||
Accrued interest and penalties relating to unrecognized tax benefits | 298,000 | 314,000 | ||
Unrecognized tax benefits that, if recognized, would affect effective tax rate | 4,056,000 | 4,491,000 | ||
Period for which R&E tax credit in U.S. is extended under the American Taxpayer Relief Act of 2012 | 2 years | |||
Nonconsolidated subsidiaries | 750,000 | |||
Income tax expense recorded on undistributed earnings of foreign subsidiaries which are not considered permanently invested | 3,900,000 | |||
Undistributed foreign earnings | $668,400,000 | $644,290,000 |
LONGTERM_DEBT_Details
LONG-TERM DEBT (Details) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | |||
Dec. 27, 2014 | Sep. 27, 2014 | Aug. 15, 2012 | Dec. 28, 2013 | Sep. 22, 2014 | Oct. 17, 2014 | |
Long-term debt: | ||||||
Total long-term debt | $767,835,000 | $471,109,000 | ||||
Less current installments of long-term debt | 1,181,000 | 202,000 | ||||
Long-term debt, excluding current installments | 766,654,000 | 470,907,000 | ||||
Minimum aggregate maturities of long-term debt | ||||||
2014 | 1,181,000 | |||||
2015 | 1,357,000 | |||||
2016 | 1,068,000 | |||||
2017 | 1,066,000 | |||||
2018 | 900,000 | |||||
5.00% senior unsecured notes due 2044 | ||||||
Long-term debt: | ||||||
Aggregate principal amount | 250,000,000 | 250,000,000 | ||||
Total long-term debt | 250,000,000 | |||||
Unamortized premium on senior unsecured notes | 1,155,000 | 1,155,000 | ||||
Redemption price of notes, stated as a percentage of principal amount (as a percent) | 100.00% | |||||
Interest rate on notes (as a percent) | 5.00% | 5.00% | 5.00% | |||
5.25% senior unsecured notes due 2054 | ||||||
Long-term debt: | ||||||
Aggregate principal amount | 250,000,000 | 250,000,000 | ||||
Total long-term debt | 250,000,000 | |||||
Unamortized premium on senior unsecured notes | 3,294,000 | |||||
Redemption price of notes, stated as a percentage of principal amount (as a percent) | 100.00% | |||||
Interest rate on notes (as a percent) | 5.25% | 5.25% | 5.25% | |||
Unamortized discount on 5.00% and 5.25% senior unsecured notes | ||||||
Long-term debt: | ||||||
Unamortized premium on senior unsecured notes | -4,449,000 | |||||
6.625% senior unsecured notes due in April 2020 | ||||||
Long-term debt: | ||||||
Aggregate principal amount | 250,200,000 | |||||
Total long-term debt | 250,200,000 | 450,000,000 | 250,200,000 | |||
Unamortized premium on senior unsecured notes | 5,429,000 | |||||
Unamortized premium recognized as revenue | 4,439,000 | |||||
Redemption price of notes, stated as a percentage of principal amount (as a percent) | 100.00% | |||||
Cash prepayment expenses | 41,200,000 | |||||
Interest rate on notes (as a percent) | 6.63% | 6.63% | 6.63% | |||
Repurchase amount through partial tender offer | 199,800,000 | |||||
Unamortized premium on 6.625% senior unsecured notes | ||||||
Long-term debt: | ||||||
Unamortized premium on senior unsecured notes | 5,429,000 | 11,241,000 | ||||
Revolving credit agreement | ||||||
Long-term debt: | ||||||
Total long-term debt | 0 | |||||
Term of multicurrency revolving credit agreement | 5 years | |||||
Previous borrowing capacity | 400,000,000 | |||||
Maximum borrowing capacity | 600,000,000 | |||||
Increase in borrowing capacity, maximum | 200,000 | |||||
Additional borrowing capacity | 582,400,000 | |||||
Standby letters of credit outstanding | 17,600,000 | |||||
Revolving credit agreement | Minimum | ||||||
Long-term debt: | ||||||
Basis points added to variable rate (as a percent) | 0.00% | |||||
Revolving credit agreement | Maximum | ||||||
Long-term debt: | ||||||
Basis points added to variable rate (as a percent) | 6.25% | |||||
Revolving credit agreement | LIBOR | ||||||
Long-term debt: | ||||||
Variable interest rate basis | LIBOR (based on a 1, 2, 3 or 6B month interest period, as selected by the Company) | |||||
Basis points added to variable rate (as a percent) | 1.00% | |||||
Variable interest rate, base period | 1 month | |||||
Revolving credit agreement | LIBOR | Minimum | ||||||
Long-term debt: | ||||||
Basis points added to variable rate (as a percent) | 1.00% | |||||
Revolving credit agreement | LIBOR | Maximum | ||||||
Long-term debt: | ||||||
Basis points added to variable rate (as a percent) | 1.63% | |||||
Revolving credit agreement | Prime lending rate | ||||||
Long-term debt: | ||||||
Variable interest rate basis | Prime Lending Rate | |||||
Revolving credit agreement | Federal Funds rate | ||||||
Long-term debt: | ||||||
Variable interest rate basis | Federal Funds Rate | |||||
Basis points added to variable rate (as a percent) | 50.00% | |||||
IDR Bonds | ||||||
Long-term debt: | ||||||
Total long-term debt | 8,500,000 | 8,500,000 | ||||
Effective interest rate (as a percent) | 1.16% | 0.21% | ||||
Other notes | ||||||
Long-term debt: | ||||||
Total long-term debt | 8,155,000 | 1,368,000 | ||||
Short Term Bank Lines Of Credit | ||||||
Long-term debt: | ||||||
Additional borrowing capacity | 95,500,000 | |||||
Balance | $108,600,000 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Stock Based Compensation | |||
Shares of common stock available for issuance | 1,234,445 | ||
Number of Shares | |||
Exercised (in shares) | -194,627 | -216,105 | -341,090 |
Stock option plans | |||
Stock Based Compensation | |||
Compensation expense (included in selling, general and administrative expenses) | 4,461 | 5,194 | 4,934 |
Tax benefits associated with compensation expense | 1,695 | 1,974 | 1,875 |
Weighted average period over which unrecognized stock option compensation cost would be recognized | 2 years 4 months 2 days | ||
Unrecognized stock option compensation expense | 10,961 | ||
Assumptions used in estimating fair value of each option grant | |||
Expected volatility (as a percent) | 32.27% | 33.26% | 33.76% |
Risk-free interest rate (as a percent) | 1.43% | 1.16% | 0.74% |
Expected life from vesting date | 3 years | 3 years | 3 years |
Dividend yield (as a percent) | 0.75% | 0.72% | 0.77% |
Number of Shares | |||
Balance at the beginning of the period (in shares) | 795,221 | 868,992 | 1,078,713 |
Granted (in shares) | 177,717 | 155,254 | 140,007 |
Exercised (in shares) | -194,627 | -216,105 | -341,090 |
Forfeited (in shares) | -9,716 | -12,920 | -8,638 |
Balance at the end of the period (in shares) | 768,595 | 795,221 | 868,992 |
Options vested or expected to vest (in shares) | 746,974 | 775,237 | 845,470 |
Options exercisable (in shares) | 450,539 | 464,377 | 485,786 |
Weighted Average Exercise Price | |||
Balance at the beginning of the period (in dollars per share) | 99.29 | 84.91 | 70.88 |
Granted (in dollars per share) | 132.94 | 144.86 | 136.01 |
Exercised (in dollars per share) | -71.67 | -72.17 | -61.53 |
Forfeited (in dollars per share) | -126.23 | -129.08 | -84.18 |
Balance at the end of the period (in dollars per share) | 113.72 | 99.29 | 84.91 |
Options vested or expected to vest (in dollars per share) | 113.06 | 98.41 | 84.26 |
Options exercisable (in dollars per share) | 97.29 | 81.73 | 71.06 |
Weighted Average Remaining Contractual Term | |||
Options outstanding | 4 years 8 months 27 days | 4 years 6 months 22 days | 4 years 8 months 5 days |
Options vested or expected to vest | 4 years 8 months 9 days | 4 years 6 months 4 days | 4 years 7 months 21 days |
Options exercisable | 3 years 7 months 2 days | 3 years 6 months 29 days | 3 years 8 months 1 day |
Aggregate Intrinsic Value | |||
Options outstanding | 15,983 | 39,994 | 43,410 |
Options vested or expected to vest | 15,981 | 39,678 | 42,765 |
Options exercisable | 15,944 | 31,508 | 30,846 |
Other option disclosures | |||
Weighted average per share fair value of option granted | 33.94 | 37.88 | 38.17 |
Stock option plans | Maximum | |||
Stock Based Compensation | |||
Vesting period of options | 6 years | ||
Expiration period of grant | 10 years | ||
Stock option plans | Minimum | |||
Stock Based Compensation | |||
Vesting period of options | 3 years | ||
Expiration period of grant | 6 years |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 2) (USD $) | 12 Months Ended |
Dec. 27, 2014 | |
Options outstanding and exercisable by price range | |
Options Outstanding, Number (in shares) | 768,595 |
Options Exercisable, Number (in shares) | 450,539 |
Range of exercise price per share from $24.37 to $40.21 | |
Options outstanding and exercisable by price range | |
Exercise price range, low end of range (in dollars per share) | $24.37 |
Exercise price range, high end of range (in dollars per share) | $40.21 |
Options Outstanding, Number (in shares) | 11,400 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 months 5 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $26.32 |
Options Exercisable, Number (in shares) | 11,400 |
Options Exercisable Weighted Average Exercise Price (in dollars per share) | $26.32 |
Range of exercise price per share from $57.46 to $105.44 | |
Options outstanding and exercisable by price range | |
Exercise price range, low end of range (in dollars per share) | $57.46 |
Exercise price range, high end of range (in dollars per share) | $105.44 |
Options Outstanding, Number (in shares) | 297,279 |
Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 11 months 12 days |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $80.75 |
Options Exercisable, Number (in shares) | 297,094 |
Options Exercisable Weighted Average Exercise Price (in dollars per share) | $80.75 |
Range of exercise price per share from $110.26 to $151.45 | |
Options outstanding and exercisable by price range | |
Exercise price range, low end of range (in dollars per share) | $110.26 |
Exercise price range, high end of range (in dollars per share) | $151.45 |
Options Outstanding, Number (in shares) | 459,916 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $137.19 |
Options Exercisable, Number (in shares) | 142,045 |
Options Exercisable Weighted Average Exercise Price (in dollars per share) | $137.59 |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Details 3) (Directors and certain management employees, Non-vested stock and restricted stock units, USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Directors and certain management employees | Non-vested stock and restricted stock units | |||
Stock Based Compensation | |||
Shares issued | 35,885 | 47,271 | 27,293 |
Weighted average per share price on grant date | $136.91 | $146.72 | $132.21 |
Compensation expense | $3,978 | $3,667 | $2,835 |
Weighted-average period for grant of stock-based compensation | 1 year 9 months 4 days | ||
Deferred stock-based compensation granted | $8,337 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Basic EPS | |||||||||||
Net earnings attributable to Valmont Industries, Inc, basic | $40,461 | $23,559 | $63,976 | $55,980 | $54,868 | $56,489 | $89,563 | $77,569 | $183,976 | $278,489 | $234,072 |
Shares outstanding basic | 25,719 | 26,641 | 26,471 | ||||||||
Per share amount basic (in dollars per share) | $1.67 | $0.93 | $2.40 | $2.10 | $2.06 | $2.12 | $3.36 | $2.92 | $7.15 | $10.45 | $8.84 |
Dilutive Effect of Stock Options | |||||||||||
Dilutive effect of stock options number of shares | 213 | 258 | 293 | ||||||||
Dilutive effect of stock options (in dollars per share) | $0.06 | $0.10 | $0.09 | ||||||||
Diluted EPS | |||||||||||
Net earnings attributable to Valmont Industries, Inc, diluted | $183,976 | $278,489 | $234,072 | ||||||||
Shares outstanding dilutive | 25,932 | 26,899 | 26,764 | ||||||||
Per share amount diluted (in dollars per share) | $1.66 | $0.92 | $2.38 | $2.08 | $2.04 | $2.10 | $3.33 | $2.89 | $7.09 | $10.35 | $8.75 |
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) | 449,000 | 1,200 | 137,000 |
EARNINGS_PER_SHARE_Details_2
EARNINGS PER SHARE (Details 2) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 28, 2013 |
Deconsolidation | |||
After-tax loss on deconsolidation | $24,200 | ||
After-tax loss on deconsolidation (in dollars per share) | ($0.93) | ||
EMD | |||
Deconsolidation | |||
After-tax loss on deconsolidation | 12,011 | ||
After-tax loss on deconsolidation (in dollars per share) | ($0.45) | ||
Asset impairment loss related to deconsolidation | $4,569 | ||
Asset impairment loss related to deconsolidation (in dollars per share) | $0.17 |
EMPLOYEE_RETIREMENT_SAVINGS_PL1
EMPLOYEE RETIREMENT SAVINGS PLAN (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
EMPLOYEE RETIREMENT SAVINGS PLAN | |||
Employee contribution limit per calendar year to 401 (k) plan | 50.00% | ||
Company contributions | $12,600 | $11,600 | $10,000 |
Assets related to non-qualified deferred compensation plan included in other assets | 36,439 | 27,133 | |
Liabilities related to non-qualified deferred compensation plan included in other noncurrent liabilities | 36,439 | 27,133 | |
Total amount distributed from non-qualified deferred compensation plan | $1,519 | $1,626 |
DISCLOSURES_ABOUT_THE_FAIR_VAL2
DISCLOSURES ABOUT THE FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 |
In Thousands, unless otherwise specified | ||
Assets and liabilities measured at fair value | ||
Assets recorded for the investments held | $36,439 | $27,133 |
Liabilities recorded for the investments held | 36,439 | 27,133 |
Level 1 member | ||
Assets and liabilities measured at fair value | ||
Trading Securities | 45,473 | 41,043 |
EMD | ||
Assets and liabilities measured at fair value | ||
Fair value of remaining ownership | 9,034 | -13,091 |
Valmont Deferred Compensation Plan | ||
Assets and liabilities measured at fair value | ||
Assets recorded for the investments held | 36,439 | 27,133 |
Liabilities recorded for the investments held | 36,439 | 27,133 |
Carrying Value | ||
Assets and liabilities measured at fair value | ||
Long-term debt | 767,835 | 471,109 |
Trading Securities | 45,473 | 41,043 |
Estimated fair value | ||
Assets and liabilities measured at fair value | ||
Long-term debt | $813,333 | $517,807 |
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Sep. 10, 2014 | Sep. 22, 2014 | Sep. 27, 2014 | Dec. 31, 2011 | Jun. 25, 2011 |
MMBTU | MMBTU | ||||||
Derivative Instrument | |||||||
Annual consolidated natural gas purchase requirements (in MMBtu) | 1,079,000 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | ($134,433) | ($47,685) | |||||
5.00% senior unsecured notes due 2044 | |||||||
Derivative Instrument | |||||||
Aggregate principal amount | 250,000 | 250,000 | |||||
Interest rate on notes (as a percent) | 5.00% | 5.00% | 5.00% | ||||
5.25% senior unsecured notes due 2054 | |||||||
Derivative Instrument | |||||||
Aggregate principal amount | 250,000 | 250,000 | |||||
Interest rate on notes (as a percent) | 5.25% | 5.25% | 5.25% | ||||
6.625% senior unsecured notes due in April 2020 | |||||||
Derivative Instrument | |||||||
Aggregate principal amount | 250,200 | ||||||
Interest rate on notes (as a percent) | 6.63% | 6.63% | 6.63% | ||||
Debt Repurchase Amount | 199,800 | 199,800 | |||||
Parent | |||||||
Derivative Instrument | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -134,433 | -47,685 | |||||
Natural Gas Price Swap | |||||||
Derivative Instrument | |||||||
Quantities of natural gas (in MMBtu) | 80,000 | 120,000 | |||||
Unrealized gain (loss) | -53 | 73 | |||||
Interest rate contract | Cash flow hedging | |||||||
Derivative Instrument | |||||||
Payment to counterparty to settle the derivative contract | 4,837 | ||||||
Interest rate contract | Cash flow hedging | 5.00% senior unsecured notes due 2044 | |||||||
Derivative Instrument | |||||||
Notional amount of derivative instrument | 125,000 | ||||||
Interest rate contract | Cash flow hedging | 5.25% senior unsecured notes due 2054 | |||||||
Derivative Instrument | |||||||
Notional amount of derivative instrument | 125,000 | ||||||
Interest rate contract | Cash flow hedging | 6.625% senior unsecured notes due in April 2020 | |||||||
Derivative Instrument | |||||||
Aggregate principal amount | 150,000 | ||||||
Interest rate on notes (as a percent) | 6.63% | ||||||
Notional amount of derivative instrument | 130,000 | ||||||
Loss on interest rate cash flow hedge derivative, recorded in accumulated other comprehensive income | 983 | ||||||
Debt Repurchase Amount | 199,800 | ||||||
Forward contracts | Cash flow hedging | |||||||
Derivative Instrument | |||||||
Unrealized gain (loss) | 424 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 242 | ||||||
Notional amount of derivative instrument | 14,757 | ||||||
Forward contracts | Fair Value Hedging | |||||||
Derivative Instrument | |||||||
Unrealized gain (loss) | 475 | ||||||
Notional amount of derivative instrument | $28,032 |
GUARANTEES_Details
GUARANTEES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 |
Changes in the product warranty accrual recorded in accrued expenses | ||
Balance, beginning of period | $20,711 | $15,333 |
Payments made | -13,900 | -9,033 |
Change in liability for warranties issued during the period | 13,130 | 15,193 |
Change in liability for pre-existing warranties | -181 | -782 |
Balance, end of period | $19,760 | $20,711 |
DEFINED_BENEFIT_RETIREMENT_PLA2
DEFINED BENEFIT RETIREMENT PLAN (Details) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
USD ($) | GBP (£) | USD ($) | USD ($) | |
item | ||||
DEFINED BENEFIT RETIREMENT PLAN | ||||
Pension retirement benefits to qualified employees as percent of final salary per year of service | 1.67% | 1.67% | ||
Eligibility age | 65 years | 65 years | ||
Active members of defined benefit retirement income plan | 0 | 0 | ||
Foreign currency exchange rate used to translate the net pension liability | 1.5557 | 1.6469 | ||
Change in Projected Benefit Obligation | ||||
Beginning balance | $651,857 | $597,767 | ||
Interest cost | 28,667 | 26,431 | ||
Settlements | -12,981 | |||
Benefits paid | -14,498 | -11,573 | ||
Actuarial loss | 66,889 | 37,235 | ||
Currency translation | 40,632 | 14,978 | ||
Ending balance | 692,283 | 651,857 | ||
Plan Assets | ||||
Fair value beginning balance | 497,460 | 485,724 | ||
Employer contributions | 18,173 | 17,619 | ||
Actual return on plan assets | 72,820 | 7,676 | ||
Settlements | -12,981 | |||
Benefits paid | -14,498 | -11,573 | ||
Currency translation | -31,796 | 10,995 | ||
Fair Value ending balance | 542,159 | 497,460 | ||
Funded status | ||||
Funded status | -150,124 | -154,397 | -112,043 | |
Accumulated other comprehensive income (loss) | ||||
Balance at the beginning of the period | -38,808 | 12,617 | ||
Actuarial loss | -18,980 | -49,421 | ||
Currency translation gain (loss) | 1,835 | -2,004 | ||
Balance at the end of the period | -55,953 | -38,808 | ||
The estimated amount to be amortized from accumulated other comprehensive income into net periodic benefit cost in 2015 | 0 | |||
Weighted average actuarial assumptions used to determine the benefit obligation | ||||
Discount rate (as a percent) | 3.65% | 3.65% | 4.45% | |
CPI index (as a percent) | 2.10% | 2.10% | 2.70% | |
RPI Inflation (as a percent) | 3.20% | 3.20% | 3.60% | |
Net periodic benefit expense: | ||||
Interest cost | 28,667 | 26,431 | ||
Expected return on plan assets | -26,029 | -19,862 | ||
Net periodic benefit expense | 2,638 | 6,569 | ||
Weighted average actuarial assumptions used to determine expense | ||||
Discount rate (as a percent) | 4.45% | 4.45% | 4.60% | |
Expected return on plan assets (as a percent) | 5.50% | 5.50% | 4.20% | |
RPI index (as a percent) | 3.60% | 3.60% | 3.20% | |
CPI index (as a percent) | 2.70% | 2.70% | 2.70% | |
Limit on employer contributions per annum | 15,557 | 10,000 | ||
Administrative costs of the Plan | 1,711 | 1,000 | ||
Expected pension benefit payments | ||||
2015 | 14,000 | |||
2016 | 14,500 | |||
2017 | 14,935 | |||
2018 | 15,400 | |||
2019 | 15,870 | |||
2020-2024 | $86,341 | |||
Weighted average maturity period of corporate bond portfolio | 13 years | 13 years |
DEFINED_BENEFIT_RETIREMENT_PLA3
DEFINED BENEFIT RETIREMENT PLAN (Details 2) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | |||
Defined benefit retirement plan | |||
Fair value pension plans | $542,159 | $497,460 | $485,724 |
Level 2 member | |||
Defined benefit retirement plan | |||
Fair value pension plans | 542,159 | 497,460 | |
Temporary cash investments | |||
Defined benefit retirement plan | |||
Fair value pension plans | 12,320 | 10,791 | |
Temporary cash investments | Level 2 member | |||
Defined benefit retirement plan | |||
Fair value pension plans | 12,320 | 10,791 | |
Index linked gilts | |||
Defined benefit retirement plan | |||
Fair value pension plans | 135,229 | 112,208 | |
Index linked gilts | Level 2 member | |||
Defined benefit retirement plan | |||
Fair value pension plans | 135,229 | 112,208 | |
Corporate bonds | |||
Defined benefit retirement plan | |||
Fair value pension plans | 107,880 | 166,604 | |
Corporate bonds | Level 2 member | |||
Defined benefit retirement plan | |||
Fair value pension plans | 107,880 | 166,604 | |
Corporate stock | |||
Defined benefit retirement plan | |||
Fair value pension plans | 176,010 | 141,029 | |
Corporate stock | Level 2 member | |||
Defined benefit retirement plan | |||
Fair value pension plans | 176,010 | 141,029 | |
Diversified growth funds | |||
Defined benefit retirement plan | |||
Fair value pension plans | 110,720 | 66,828 | |
Diversified growth funds | Level 2 member | |||
Defined benefit retirement plan | |||
Fair value pension plans | $110,720 | $66,828 |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
item | |||||||||||
Business Segments | |||||||||||
Number of reportable segments | 4 | ||||||||||
Maximum percentage of sales of other businesses and activities to consolidated sales as basis for aggregation | 10.00% | ||||||||||
Net sales | $763,136 | $765,668 | $842,599 | $751,740 | $827,890 | $778,032 | $878,659 | $819,630 | $3,123,143 | $3,304,211 | $3,029,541 |
Operating Income | 357,716 | 473,069 | 382,296 | ||||||||
Interest expense, net | -30,744 | -26,025 | -23,353 | ||||||||
Costs associated with refinancing of debt | -38,705 | ||||||||||
Other | -4,084 | 2,373 | 347 | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 284,183 | 449,417 | 359,290 | ||||||||
Total assets | 2,729,668 | 2,776,494 | 2,729,668 | 2,776,494 | 2,568,551 | ||||||
Capital expenditures | 73,023 | 106,753 | 97,074 | ||||||||
Depreciation and amortization | 89,328 | 77,436 | 70,218 | ||||||||
Engineered Infrastructure Products segment: | |||||||||||
Business Segments | |||||||||||
Net sales | 1,062,638 | 897,503 | 833,313 | ||||||||
Operating Income | 103,296 | 87,647 | 54,013 | ||||||||
Total assets | 1,057,090 | 873,757 | 1,057,090 | 873,757 | 784,659 | ||||||
Capital expenditures | 14,328 | 15,878 | 20,244 | ||||||||
Depreciation and amortization | 40,239 | 31,057 | 27,164 | ||||||||
Engineered Infrastructure Products segment: | Offshore Structures | |||||||||||
Business Segments | |||||||||||
Sales | 146,432 | ||||||||||
Utility Support Structures segment | |||||||||||
Business Segments | |||||||||||
Net sales | 822,565 | 959,695 | 869,663 | ||||||||
Operating Income | 95,118 | 174,740 | 129,025 | ||||||||
Total assets | 470,720 | 524,113 | 470,720 | 524,113 | 510,943 | ||||||
Capital expenditures | 9,014 | 39,347 | 41,081 | ||||||||
Depreciation and amortization | 17,811 | 14,375 | 13,284 | ||||||||
Coatings segment | |||||||||||
Business Segments | |||||||||||
Net sales | 278,435 | 300,986 | 282,074 | ||||||||
Operating Income | 60,921 | 74,917 | 71,641 | ||||||||
Total assets | 301,707 | 315,663 | 301,707 | 315,663 | 334,841 | ||||||
Capital expenditures | 14,029 | 12,206 | 13,280 | ||||||||
Depreciation and amortization | 14,615 | 14,656 | 12,015 | ||||||||
Irrigation segment | |||||||||||
Business Segments | |||||||||||
Net sales | 759,159 | 882,174 | 750,592 | ||||||||
Operating Income | 128,145 | 181,498 | 143,605 | ||||||||
Total assets | 331,962 | 323,435 | 331,962 | 323,435 | 287,354 | ||||||
Capital expenditures | 15,488 | 21,416 | 12,618 | ||||||||
Depreciation and amortization | 9,352 | 6,679 | 6,209 | ||||||||
Other | |||||||||||
Business Segments | |||||||||||
Net sales | 200,346 | 263,853 | 293,899 | ||||||||
Operating Income | 25,898 | 30,984 | 46,575 | ||||||||
Total assets | 117,300 | 126,337 | 117,300 | 126,337 | 202,289 | ||||||
Capital expenditures | 9,220 | 6,270 | 4,428 | ||||||||
Depreciation and amortization | 5,512 | 7,663 | 8,168 | ||||||||
Corporate | |||||||||||
Business Segments | |||||||||||
Operating Income | -55,662 | -76,717 | -62,563 | ||||||||
Total assets | 450,889 | 613,189 | 450,889 | 613,189 | 448,465 | ||||||
Capital expenditures | 10,944 | 11,636 | 5,423 | ||||||||
Depreciation and amortization | 1,799 | 3,006 | 3,378 | ||||||||
Parent | |||||||||||
Business Segments | |||||||||||
Net sales | 1,392,509 | 1,540,266 | 1,375,238 | ||||||||
Operating Income | 154,714 | 223,896 | 188,482 | ||||||||
Costs associated with refinancing of debt | -38,705 | ||||||||||
Other | 2,021 | 4,791 | 1,938 | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 83,801 | 197,941 | 159,344 | ||||||||
Total assets | 2,167,173 | 2,224,916 | 2,167,173 | 2,224,916 | |||||||
Capital expenditures | 41,260 | 76,582 | 43,590 | ||||||||
Depreciation and amortization | 24,509 | 21,270 | 19,121 | ||||||||
Operating segment | |||||||||||
Business Segments | |||||||||||
Sales | 3,287,612 | 3,507,256 | 3,218,983 | ||||||||
Operating segment | Engineered Infrastructure Products segment: | |||||||||||
Business Segments | |||||||||||
Sales | 1,137,897 | 1,001,809 | 931,533 | ||||||||
Operating segment | Engineered Infrastructure Products segment: | Lighting, Traffic, and Roadway Products | |||||||||||
Business Segments | |||||||||||
Sales | 648,352 | 660,423 | 637,082 | ||||||||
Operating segment | Engineered Infrastructure Products segment: | Communication Products | |||||||||||
Business Segments | |||||||||||
Sales | 161,618 | 139,888 | 134,711 | ||||||||
Operating segment | Engineered Infrastructure Products segment: | Access Systems | |||||||||||
Business Segments | |||||||||||
Sales | 181,495 | 201,498 | 159,740 | ||||||||
Operating segment | Utility Support Structures segment | |||||||||||
Business Segments | |||||||||||
Sales | 825,016 | 962,038 | 873,520 | ||||||||
Operating segment | Utility Support Structures segment | Steel | |||||||||||
Business Segments | |||||||||||
Sales | 714,427 | 853,459 | 752,621 | ||||||||
Operating segment | Utility Support Structures segment | Concrete | |||||||||||
Business Segments | |||||||||||
Sales | 110,589 | 108,579 | 120,899 | ||||||||
Operating segment | Coatings segment | |||||||||||
Business Segments | |||||||||||
Sales | 333,853 | 357,635 | 334,552 | ||||||||
Operating segment | Irrigation segment | |||||||||||
Business Segments | |||||||||||
Sales | 759,178 | 882,179 | 750,641 | ||||||||
Operating segment | Other | |||||||||||
Business Segments | |||||||||||
Sales | 231,668 | 303,595 | 328,737 | ||||||||
Intersegment | |||||||||||
Business Segments | |||||||||||
Sales | 164,469 | 203,045 | 189,442 | ||||||||
Intersegment | Engineered Infrastructure Products segment: | |||||||||||
Business Segments | |||||||||||
Sales | 75,259 | 104,306 | 98,220 | ||||||||
Intersegment | Utility Support Structures segment | |||||||||||
Business Segments | |||||||||||
Sales | 2,451 | 2,343 | 3,857 | ||||||||
Intersegment | Coatings segment | |||||||||||
Business Segments | |||||||||||
Sales | 55,418 | 56,649 | 52,478 | ||||||||
Intersegment | Irrigation segment | |||||||||||
Business Segments | |||||||||||
Sales | 19 | 5 | 49 | ||||||||
Intersegment | Other | |||||||||||
Business Segments | |||||||||||
Sales | 31,322 | 39,742 | 34,838 | ||||||||
Reclassified | Engineered Infrastructure Products segment: | |||||||||||
Business Segments | |||||||||||
Sales | $49,427 |
BUSINESS_SEGMENTS_Details_2
BUSINESS SEGMENTS (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Summary by Geographical Area by Location | |||||||||||
Net sales | $763,136 | $765,668 | $842,599 | $751,740 | $827,890 | $778,032 | $878,659 | $819,630 | $3,123,143 | $3,304,211 | $3,029,541 |
Long-lived assets | 1,337,123 | 1,178,654 | 1,337,123 | 1,178,654 | 1,142,611 | ||||||
United States | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Net sales | 1,808,427 | 2,077,812 | 1,870,703 | ||||||||
Long-lived assets | 616,718 | 530,042 | 616,718 | 530,042 | 470,154 | ||||||
Australia | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Net sales | 439,530 | 492,698 | 499,025 | ||||||||
Long-lived assets | 316,382 | 342,320 | 316,382 | 342,320 | 321,456 | ||||||
Australia | Foreign country | Net Sales | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Threshold for disclosure as percentage of net sales by customer | 14.00% | 14.00% | |||||||||
China | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Net sales | 110,923 | 97,788 | 135,398 | ||||||||
Denmark | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Net sales | 146,432 | ||||||||||
Long-lived assets | 111,161 | 111,161 | |||||||||
Other | |||||||||||
Summary by Geographical Area by Location | |||||||||||
Net sales | 617,831 | 635,913 | 524,415 | ||||||||
Long-lived assets | $292,862 | $306,293 | $292,862 | $306,293 | $351,001 |
GUARANTORNONGUARANTOR_FINANCIA2
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Details) (USD $) | 0 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 22, 2014 | Dec. 27, 2014 | Sep. 27, 2014 | Sep. 22, 2014 | Dec. 28, 2013 |
Long-term debt: | |||||
Parent company's percentage ownership of Guarantors | 100.00% | ||||
5.00% senior unsecured notes due 2044 | |||||
Long-term debt: | |||||
Face amount of debt issued to finance acquisition | $250,000 | ||||
Interest rate on notes (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | |
5.25% senior unsecured notes due 2054 | |||||
Long-term debt: | |||||
Face amount of debt issued to finance acquisition | 250,000 | ||||
Interest rate on notes (as a percent) | 5.25% | 5.25% | 5.25% | 5.25% | |
6.625% senior unsecured notes due in April 2020 | |||||
Long-term debt: | |||||
Face amount of debt issued to finance acquisition | 250,200 | ||||
Interest rate on notes (as a percent) | 6.63% | 6.63% | 6.63% | 6.63% | |
Debt Repurchase Amount | $199,800 | $199,800 | $199,800 |
GUARANTORNONGUARANTOR_FINANCIA3
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||||||||||
Net sales | $763,136 | $765,668 | $842,599 | $751,740 | $827,890 | $778,032 | $878,659 | $819,630 | $3,123,143 | $3,304,211 | $3,029,541 |
Cost of sales | 2,315,026 | 2,358,983 | 2,227,085 | ||||||||
Gross profit | 181,158 | 199,500 | 220,477 | 206,982 | 222,824 | 225,564 | 261,471 | 235,369 | 808,117 | 945,228 | 802,456 |
Selling, general and administrative expenses | 450,401 | 472,159 | 420,160 | ||||||||
Operating income | 357,716 | 473,069 | 382,296 | ||||||||
Other income (expense): | |||||||||||
Interest expense | -36,790 | -32,502 | -31,625 | ||||||||
Interest income | 6,046 | 6,477 | 8,272 | ||||||||
Costs associated with refinancing of debt | -38,705 | ||||||||||
Other | -4,084 | 2,373 | 347 | ||||||||
Total other income (expenses) | -73,533 | -23,652 | -23,006 | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 284,183 | 449,417 | 359,290 | ||||||||
Income tax expense (benefit): | |||||||||||
Current | 89,643 | 167,922 | 122,782 | ||||||||
Deferred | 5,251 | -10,141 | 3,720 | ||||||||
Total income tax expense (benefit) | 94,894 | 157,781 | 126,502 | ||||||||
Earnings before equity in earnings of nonconsolidated subsidiaries | 189,289 | 291,636 | 232,788 | ||||||||
Equity in earnings of nonconsolidated subsidiaries | 29 | 835 | 6,128 | ||||||||
Loss from deconsolidation of subsidiary | -12,011 | ||||||||||
Net earnings | 189,318 | 280,460 | 238,916 | ||||||||
Less: Earnings attributable to noncontrolling interests | -5,342 | -1,971 | -4,844 | ||||||||
Net earnings attributable to Valmont Industries, Inc. | 40,461 | 23,559 | 63,976 | 55,980 | 54,868 | 56,489 | 89,563 | 77,569 | 183,976 | 278,489 | 234,072 |
Parent | |||||||||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||||||||||
Net sales | 1,392,509 | 1,540,266 | 1,375,238 | ||||||||
Cost of sales | 1,040,808 | 1,107,020 | 1,008,087 | ||||||||
Gross profit | 351,701 | 433,246 | 367,151 | ||||||||
Selling, general and administrative expenses | 196,987 | 209,350 | 178,669 | ||||||||
Operating income | 154,714 | 223,896 | 188,482 | ||||||||
Other income (expense): | |||||||||||
Interest expense | -34,267 | -30,801 | -31,121 | ||||||||
Interest income | 38 | 55 | 45 | ||||||||
Costs associated with refinancing of debt | -38,705 | ||||||||||
Other | 2,021 | 4,791 | 1,938 | ||||||||
Total other income (expenses) | -70,913 | -25,955 | -29,138 | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 83,801 | 197,941 | 159,344 | ||||||||
Income tax expense (benefit): | |||||||||||
Current | 30,330 | 78,912 | 59,648 | ||||||||
Deferred | -1,474 | -8,948 | -4,721 | ||||||||
Total income tax expense (benefit) | 28,856 | 69,964 | 54,927 | ||||||||
Earnings before equity in earnings of nonconsolidated subsidiaries | 54,945 | 127,977 | 104,417 | ||||||||
Equity in earnings of nonconsolidated subsidiaries | 129,031 | 150,512 | 129,655 | ||||||||
Net earnings | 183,976 | 278,489 | 234,072 | ||||||||
Net earnings attributable to Valmont Industries, Inc. | 183,976 | 278,489 | 234,072 | ||||||||
Guarantors | |||||||||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||||||||||
Net sales | 496,326 | 689,230 | 620,338 | ||||||||
Cost of sales | 371,639 | 503,431 | 489,560 | ||||||||
Gross profit | 124,687 | 185,799 | 130,778 | ||||||||
Selling, general and administrative expenses | 49,171 | 59,368 | 54,305 | ||||||||
Operating income | 75,516 | 126,431 | 76,473 | ||||||||
Other income (expense): | |||||||||||
Interest expense | -5 | -2 | |||||||||
Interest income | 359 | 1,032 | 1,533 | ||||||||
Other | -511 | 9 | 55 | ||||||||
Total other income (expenses) | -157 | 1,039 | 1,588 | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 75,359 | 127,470 | 78,061 | ||||||||
Income tax expense (benefit): | |||||||||||
Current | 25,277 | 45,951 | 27,736 | ||||||||
Deferred | 1,866 | -19 | -496 | ||||||||
Total income tax expense (benefit) | 27,143 | 45,932 | 27,240 | ||||||||
Earnings before equity in earnings of nonconsolidated subsidiaries | 48,216 | 81,538 | 50,821 | ||||||||
Equity in earnings of nonconsolidated subsidiaries | 19,509 | 16,417 | 37,925 | ||||||||
Net earnings | 67,725 | 97,955 | 88,746 | ||||||||
Net earnings attributable to Valmont Industries, Inc. | 67,725 | 97,955 | 88,746 | ||||||||
Non-Guarantors | |||||||||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||||||||||
Net sales | 1,456,053 | 1,402,191 | 1,331,827 | ||||||||
Cost of sales | 1,124,813 | 1,078,695 | 1,026,037 | ||||||||
Gross profit | 331,240 | 323,496 | 305,790 | ||||||||
Selling, general and administrative expenses | 204,243 | 203,441 | 187,186 | ||||||||
Operating income | 126,997 | 120,055 | 118,604 | ||||||||
Other income (expense): | |||||||||||
Interest expense | -2,518 | -1,699 | -1,845 | ||||||||
Interest income | 5,649 | 5,390 | 8,035 | ||||||||
Other | -5,594 | -2,427 | -1,646 | ||||||||
Total other income (expenses) | -2,463 | 1,264 | 4,544 | ||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 124,534 | 121,319 | 123,148 | ||||||||
Income tax expense (benefit): | |||||||||||
Current | 33,898 | 42,379 | 36,098 | ||||||||
Deferred | 4,859 | -1,174 | 8,937 | ||||||||
Total income tax expense (benefit) | 38,757 | 41,205 | 45,035 | ||||||||
Earnings before equity in earnings of nonconsolidated subsidiaries | 85,777 | 80,114 | 78,113 | ||||||||
Equity in earnings of nonconsolidated subsidiaries | 63 | 494 | 5,150 | ||||||||
Loss from deconsolidation of subsidiary | -12,011 | ||||||||||
Net earnings | 85,840 | 68,597 | 83,263 | ||||||||
Less: Earnings attributable to noncontrolling interests | -5,342 | -1,971 | -4,844 | ||||||||
Net earnings attributable to Valmont Industries, Inc. | 80,498 | 66,626 | 78,419 | ||||||||
Eliminations | |||||||||||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||||||||||
Net sales | -221,745 | -327,476 | -297,862 | ||||||||
Cost of sales | -222,234 | -330,163 | -296,599 | ||||||||
Gross profit | 489 | 2,687 | -1,263 | ||||||||
Operating income | 489 | 2,687 | -1,263 | ||||||||
Other income (expense): | |||||||||||
Interest expense | 1,341 | ||||||||||
Interest income | -1,341 | ||||||||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | 489 | 2,687 | -1,263 | ||||||||
Income tax expense (benefit): | |||||||||||
Current | 138 | 680 | -700 | ||||||||
Total income tax expense (benefit) | 138 | 680 | -700 | ||||||||
Earnings before equity in earnings of nonconsolidated subsidiaries | 351 | 2,007 | -563 | ||||||||
Equity in earnings of nonconsolidated subsidiaries | -148,574 | -166,588 | -166,602 | ||||||||
Net earnings | -148,223 | -164,581 | -167,165 | ||||||||
Net earnings attributable to Valmont Industries, Inc. | ($148,223) | ($164,581) | ($167,165) |
GUARANTORNONGUARANTOR_FINANCIA4
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | $189,318 | $280,460 | $238,916 |
Foreign currency translation adjustments: | |||
Unrealized gains (losses) arising during the period | -82,275 | -71,698 | 15,741 |
Realized loss on sale of investment in foreign entity included in other expense | 5,194 | ||
Realized loss on deconsolidation of subsidiary | 8,559 | ||
Foreign currency translation adjustments | -82,275 | -57,945 | 15,741 |
Unrealized loss on cash flow hedge: | |||
Loss arising during the period | 983 | ||
Gain (deferred) on cash flow hedges | 4,837 | ||
Amortization cost included in interest expense | 594 | 400 | 400 |
Derivative adjustment | 6,414 | 400 | 400 |
Actuarial gain (loss) in defined benefit pension plan liability | -13,709 | -41,282 | -35,020 |
Other comprehensive income (loss) | -89,570 | -98,827 | -18,879 |
Comprehensive income | 99,748 | 181,633 | 220,037 |
Comprehensive income attributable to noncontrolling interests | -2,520 | -9,174 | -6,079 |
Comprehensive income attributable to Valmont Industries, Inc. | 97,228 | 172,459 | 213,958 |
Parent | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | 183,976 | 278,489 | 234,072 |
Unrealized loss on cash flow hedge: | |||
Loss arising during the period | 983 | ||
Gain (deferred) on cash flow hedges | 4,837 | ||
Amortization cost included in interest expense | 594 | 400 | 400 |
Derivative adjustment | 6,414 | 400 | 400 |
Equity in other comprehensive income | -93,162 | -106,430 | -20,514 |
Other comprehensive income (loss) | -86,748 | -106,030 | -20,114 |
Comprehensive income | 97,228 | 172,459 | 213,958 |
Comprehensive income attributable to Valmont Industries, Inc. | 97,228 | 172,459 | 213,958 |
Guarantors | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | 67,725 | 97,955 | 88,746 |
Foreign currency translation adjustments: | |||
Unrealized gains (losses) arising during the period | -51,536 | -4,772 | 884 |
Foreign currency translation adjustments | -51,536 | -4,772 | 884 |
Unrealized loss on cash flow hedge: | |||
Other comprehensive income (loss) | -51,536 | -4,772 | 884 |
Comprehensive income | 16,189 | 93,183 | 89,630 |
Comprehensive income attributable to Valmont Industries, Inc. | 16,189 | 93,183 | 89,630 |
Non-Guarantors | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | 85,840 | 68,597 | 83,263 |
Foreign currency translation adjustments: | |||
Unrealized gains (losses) arising during the period | -30,739 | -66,926 | 14,857 |
Realized loss on sale of investment in foreign entity included in other expense | 5,194 | ||
Realized loss on deconsolidation of subsidiary | 8,559 | ||
Foreign currency translation adjustments | -30,739 | -53,173 | 14,857 |
Unrealized loss on cash flow hedge: | |||
Actuarial gain (loss) in defined benefit pension plan liability | -13,709 | -41,282 | -35,020 |
Other comprehensive income (loss) | -44,448 | -94,455 | -20,163 |
Comprehensive income | 41,392 | -25,858 | 63,100 |
Comprehensive income attributable to noncontrolling interests | -2,520 | -9,174 | -6,079 |
Comprehensive income attributable to Valmont Industries, Inc. | 38,872 | -35,032 | 57,021 |
Eliminations | |||
Condensed consolidated financial information for the Company (Parent), the guarantor subsidiaries and the non-guarantor subsidiaries | |||
Net earnings | -148,223 | -164,581 | -167,165 |
Unrealized loss on cash flow hedge: | |||
Equity in other comprehensive income | 93,162 | 106,430 | 20,514 |
Other comprehensive income (loss) | 93,162 | 106,430 | 20,514 |
Comprehensive income | -55,061 | -58,151 | -146,651 |
Comprehensive income attributable to Valmont Industries, Inc. | ($55,061) | ($58,151) | ($146,651) |
GUARANTORNONGUARANTOR_FINANCIA5
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Details 4) (USD $) | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $371,579 | $613,706 | $414,129 | $362,894 |
Receivables, net | 536,918 | 515,440 | ||
Inventories | 359,522 | 380,000 | ||
Prepaid expenses | 56,912 | 22,997 | ||
Refundable and deferred income taxes | 68,010 | 65,697 | ||
Total current assets | 1,392,941 | 1,597,840 | ||
Property, plant and equipment, at cost | 1,139,569 | 1,017,126 | ||
Less accumulated depreciation and amortization | 533,116 | 482,916 | ||
Net property, plant and equipment | 606,453 | 534,210 | ||
Goodwill | 385,111 | 349,632 | 330,791 | |
Other intangible assets | 202,004 | 170,917 | ||
Other assets | 143,159 | 123,895 | ||
Total assets | 2,729,668 | 2,776,494 | 2,568,551 | |
Current liabilities: | ||||
Current installments of long-term debt | 1,181 | 202 | ||
Notes payable to banks | 13,952 | 19,024 | ||
Accounts payable | 196,565 | 216,121 | ||
Accrued employee compensation and benefits | 87,950 | 122,967 | ||
Accrued expenses | 88,480 | 71,560 | ||
Dividends payable | 9,086 | 6,706 | ||
Total current liabilities | 397,214 | 436,580 | ||
Deferred income taxes | 71,797 | 78,924 | ||
Long-term debt, excluding current installments | 766,654 | 470,907 | ||
Defined benefit pension liability | 150,124 | 154,397 | ||
Deferred compensation | 47,932 | 39,109 | ||
Other noncurrent liabilities | 45,542 | 51,731 | ||
Commitments and contingencies | ||||
Shareholders' equity: | ||||
Common stock of $1 par value | 27,900 | 27,900 | ||
Retained earnings | 1,718,662 | 1,562,670 | ||
Accumulated other comprehensive income | -134,433 | -47,685 | ||
Treasury stock | -410,296 | -20,860 | ||
Total Valmont Industries, Inc. shareholders' equity | 1,201,833 | 1,522,025 | ||
Noncontrolling interest in consolidated subsidiaries | 48,572 | 22,821 | ||
Total shareholders' equity | 1,250,405 | 1,544,846 | 1,407,010 | 1,197,911 |
Total liabilities and shareholders' equity | 2,729,668 | 2,776,494 | ||
Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 69,869 | 215,576 | 40,926 | 27,545 |
Receivables, net | 158,316 | 139,179 | ||
Inventories | 127,859 | 132,953 | ||
Prepaid expenses | 7,087 | 4,735 | ||
Refundable and deferred income taxes | 53,307 | 41,167 | ||
Total current assets | 416,438 | 533,610 | ||
Property, plant and equipment, at cost | 556,658 | 522,734 | ||
Less accumulated depreciation and amortization | 319,899 | 300,066 | ||
Net property, plant and equipment | 236,759 | 222,668 | ||
Goodwill | 20,108 | 20,108 | ||
Other intangible assets | 292 | 346 | ||
Investment in subsidiaries and intercompany accounts | 1,446,989 | 1,417,425 | ||
Other assets | 46,587 | 30,759 | ||
Total assets | 2,167,173 | 2,224,916 | ||
Current liabilities: | ||||
Current installments of long-term debt | 213 | 188 | ||
Accounts payable | 59,893 | 62,153 | ||
Accrued employee compensation and benefits | 48,169 | 76,370 | ||
Accrued expenses | 32,616 | 28,362 | ||
Dividends payable | 9,086 | 6,706 | ||
Total current liabilities | 149,977 | 173,779 | ||
Deferred income taxes | 5,584 | 18,983 | ||
Long-term debt, excluding current installments | 759,895 | 470,175 | ||
Deferred compensation | 41,803 | 32,339 | ||
Other noncurrent liabilities | 8,081 | 7,615 | ||
Shareholders' equity: | ||||
Common stock of $1 par value | 27,900 | 27,900 | ||
Retained earnings | 1,718,662 | 1,562,670 | ||
Accumulated other comprehensive income | -134,433 | -47,685 | ||
Treasury stock | -410,296 | -20,860 | ||
Total Valmont Industries, Inc. shareholders' equity | 1,201,833 | 1,522,025 | ||
Total shareholders' equity | 1,201,833 | 1,522,025 | ||
Total liabilities and shareholders' equity | 2,167,173 | 2,224,916 | ||
Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 2,157 | 29,797 | 6,714 | 6,883 |
Receivables, net | 68,414 | 108,600 | ||
Inventories | 54,914 | 70,231 | ||
Prepaid expenses | 502 | 932 | ||
Refundable and deferred income taxes | 6,194 | 8,351 | ||
Total current assets | 132,181 | 217,911 | ||
Property, plant and equipment, at cost | 124,182 | 125,764 | ||
Less accumulated depreciation and amortization | 65,493 | 61,520 | ||
Net property, plant and equipment | 58,689 | 64,244 | ||
Goodwill | 107,542 | 107,542 | ||
Other intangible assets | 43,644 | 48,461 | ||
Investment in subsidiaries and intercompany accounts | 825,236 | 791,450 | ||
Total assets | 1,167,292 | 1,229,608 | ||
Current liabilities: | ||||
Accounts payable | 15,151 | 20,365 | ||
Accrued employee compensation and benefits | 5,385 | 13,713 | ||
Accrued expenses | 6,052 | 7,315 | ||
Income taxes payable | 19,377 | |||
Total current liabilities | 26,588 | 60,770 | ||
Deferred income taxes | 28,988 | 29,310 | ||
Shareholders' equity: | ||||
Common stock of $1 par value | 457,950 | 457,950 | ||
Additional paid-in capital | 150,286 | 150,286 | ||
Retained earnings | 552,676 | 528,952 | ||
Accumulated other comprehensive income | -49,196 | 2,340 | ||
Total Valmont Industries, Inc. shareholders' equity | 1,111,716 | 1,139,528 | ||
Total shareholders' equity | 1,111,716 | 1,139,528 | ||
Total liabilities and shareholders' equity | 1,167,292 | 1,229,608 | ||
Non-Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 299,553 | 368,333 | 366,489 | 328,466 |
Receivables, net | 310,188 | 267,661 | ||
Inventories | 177,512 | 176,816 | ||
Prepaid expenses | 49,323 | 17,330 | ||
Refundable and deferred income taxes | 8,509 | 16,179 | ||
Total current assets | 845,085 | 846,319 | ||
Property, plant and equipment, at cost | 458,729 | 368,628 | ||
Less accumulated depreciation and amortization | 147,724 | 121,330 | ||
Net property, plant and equipment | 311,005 | 247,298 | ||
Goodwill | 257,461 | 221,982 | ||
Other intangible assets | 158,068 | 122,110 | ||
Investment in subsidiaries and intercompany accounts | 887,055 | 827,508 | ||
Other assets | 96,572 | 112,513 | ||
Total assets | 2,555,246 | 2,377,730 | ||
Current liabilities: | ||||
Current installments of long-term debt | 968 | 14 | ||
Notes payable to banks | 13,952 | 19,024 | ||
Accounts payable | 121,521 | 133,603 | ||
Accrued employee compensation and benefits | 34,396 | 32,884 | ||
Accrued expenses | 49,812 | 35,883 | ||
Total current liabilities | 220,649 | 221,408 | ||
Deferred income taxes | 37,225 | 30,631 | ||
Long-term debt, excluding current installments | 6,759 | 732 | ||
Defined benefit pension liability | 150,124 | 154,397 | ||
Deferred compensation | 6,129 | 6,770 | ||
Other noncurrent liabilities | 37,461 | 44,116 | ||
Shareholders' equity: | ||||
Common stock of $1 par value | 648,682 | 648,682 | ||
Additional paid-in capital | 1,098,408 | 891,236 | ||
Retained earnings | 397,302 | 472,162 | ||
Accumulated other comprehensive income | -96,065 | -115,225 | ||
Total Valmont Industries, Inc. shareholders' equity | 2,048,327 | 1,896,855 | ||
Noncontrolling interest in consolidated subsidiaries | 48,572 | 22,821 | ||
Total shareholders' equity | 2,096,899 | 1,919,676 | ||
Total liabilities and shareholders' equity | 2,555,246 | 2,377,730 | ||
Eliminations | ||||
Current assets: | ||||
Inventories | -763 | |||
Total current assets | -763 | |||
Investment in subsidiaries and intercompany accounts | -3,159,280 | -3,036,383 | ||
Other assets | -19,377 | |||
Total assets | -3,160,043 | -3,055,760 | ||
Current liabilities: | ||||
Income taxes payable | -19,377 | |||
Total current liabilities | -19,377 | |||
Shareholders' equity: | ||||
Common stock of $1 par value | -1,106,633 | -1,106,632 | ||
Additional paid-in capital | -1,248,694 | -1,041,522 | ||
Retained earnings | -949,978 | -1,001,114 | ||
Accumulated other comprehensive income | 145,261 | 112,885 | ||
Total Valmont Industries, Inc. shareholders' equity | -3,160,043 | -3,036,353 | ||
Total shareholders' equity | -3,160,043 | -3,036,353 | ||
Total liabilities and shareholders' equity | ($3,160,043) | ($3,055,760) |
GUARANTORNONGUARANTOR_FINANCIA6
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Cash flows from operating activities: | |||
Net earnings | $189,318 | $280,460 | $238,916 |
Adjustments to reconcile net earnings to net cash flows from operations: | |||
Depreciation and amortization | 89,328 | 77,436 | 70,218 |
Deconsolidation of subsidiary | 12,011 | ||
Impairment of property, plant and equipment | 0 | 12,161 | |
Non-cash debt refinancing costs | -2,478 | ||
Loss on investment | 3,795 | ||
Stock-based compensation | 6,730 | 6,513 | 5,829 |
Defined benefit pension plan expense | 2,638 | 6,569 | 4,281 |
Contribution to defined benefit pension plan | -18,173 | -17,619 | -11,591 |
Change in fair value of contingent consideration | -4,300 | ||
(Gain) loss on sale of property, plant and equipment | 392 | -4,318 | 321 |
Equity in earnings in nonconsolidated subsidiaries | -29 | -835 | -6,128 |
Deferred income taxes | 5,251 | -10,141 | 3,720 |
Changes in assets and liabilities (net of the effect from acquisitions): | |||
Receivables | 907 | -12,708 | -84,890 |
Inventories | 21,458 | 13,431 | -13,613 |
Prepaid expenses | -13,594 | 4,115 | 1,243 |
Accounts payable | -34,321 | 12,448 | -6,249 |
Accrued expenses | -34,778 | 21,698 | 20,640 |
Other noncurrent liabilities | 1,755 | -1,474 | -4,350 |
Income taxes payable (refundable) | -39,803 | -3,305 | -21,250 |
Net cash flows from operating activities | 174,096 | 396,442 | 197,097 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | -73,023 | -106,753 | -97,074 |
Acquisitions, net of cash acquired | -185,710 | -63,152 | -45,687 |
Proceeds from sale of assets | 2,489 | 37,582 | 6,025 |
Other, net | -619 | 602 | 44 |
Net cash flows from investing activities | -256,863 | -131,721 | -136,692 |
Cash flows from financing activities: | |||
Net borrowings under short-term agreements | -4,472 | 5,510 | 1,828 |
Proceeds from long-term borrowings | 652,211 | 274 | 39,126 |
Principal payments on long-term obligations | -357,858 | -591 | -39,564 |
Settlement of financial derivative | 4,981 | ||
Cash decrease due to deconsolidation of subsidiary | -11,615 | ||
Dividends paid | -32,443 | -25,414 | -21,520 |
Dividends to noncontrolling interest | -2,919 | -1,767 | -1,944 |
Proceeds from sale of partial ownership interest | 1,404 | ||
Purchase of noncontrolling interest | -9,324 | ||
Debt issuance fees | -7,644 | -1,747 | |
Proceeds from exercises under stock plans | 14,572 | 16,348 | 21,827 |
Excess tax benefits from stock option exercises | 4,264 | 5,306 | 5,494 |
Purchase of treasury shares | -395,045 | ||
Purchase of common treasury shares - stock plan exercises | -15,403 | -16,107 | -21,259 |
Net cash flows from financing activities | -139,756 | -37,380 | -16,355 |
Effect of exchange rate changes on cash and cash equivalents | -19,604 | -27,764 | 7,185 |
Net change in cash and cash equivalents | -242,127 | 199,577 | 51,235 |
Cash and cash equivalents-beginning of year | 613,706 | 414,129 | 362,894 |
Cash and cash equivalents-end of year | 371,579 | 613,706 | 414,129 |
Parent | |||
Cash flows from operating activities: | |||
Net earnings | 183,976 | 278,489 | 234,072 |
Adjustments to reconcile net earnings to net cash flows from operations: | |||
Depreciation and amortization | 24,509 | 21,270 | 19,121 |
Non-cash debt refinancing costs | -2,478 | ||
Stock-based compensation | 6,730 | 6,513 | 5,829 |
(Gain) loss on sale of property, plant and equipment | 145 | 885 | 89 |
Equity in earnings in nonconsolidated subsidiaries | -129,031 | -150,512 | -129,655 |
Deferred income taxes | -1,474 | -8,948 | -4,721 |
Changes in assets and liabilities (net of the effect from acquisitions): | |||
Receivables | -19,136 | 6,181 | -21,751 |
Inventories | 5,094 | 12,966 | -20,756 |
Prepaid expenses | -2,352 | 2,417 | -3,705 |
Accounts payable | -2,260 | -10,458 | 4,446 |
Accrued expenses | -21,448 | 19,191 | 20,339 |
Other noncurrent liabilities | 622 | 3,201 | 123 |
Income taxes payable (refundable) | -24,945 | -5,908 | -18,979 |
Net cash flows from operating activities | 17,952 | 175,287 | 84,452 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | -41,260 | -76,582 | -43,590 |
Proceeds from sale of assets | 43 | 794 | 113 |
Other, net | -34,735 | 86,258 | -10,192 |
Net cash flows from investing activities | -6,482 | 10,470 | -53,669 |
Cash flows from financing activities: | |||
Proceeds from long-term borrowings | 652,540 | 39,000 | |
Principal payments on long-term obligations | -356,994 | -187 | -39,197 |
Settlement of financial derivative | 4,981 | ||
Dividends paid | -32,443 | -25,414 | -21,520 |
Intercompany dividends | 116,995 | 8,947 | |
Intercompany capital contribution | -143,000 | ||
Debt issuance fees | -7,644 | -1,747 | |
Proceeds from exercises under stock plans | 14,572 | 16,348 | 21,827 |
Excess tax benefits from stock option exercises | 4,264 | 5,306 | 5,494 |
Purchase of treasury shares | -395,045 | ||
Purchase of common treasury shares - stock plan exercises | -15,403 | -16,107 | -21,259 |
Net cash flows from financing activities | -157,177 | -11,107 | -17,402 |
Net change in cash and cash equivalents | -145,707 | 174,650 | 13,381 |
Cash and cash equivalents-beginning of year | 215,576 | 40,926 | 27,545 |
Cash and cash equivalents-end of year | 69,869 | 215,576 | 40,926 |
Guarantors | |||
Cash flows from operating activities: | |||
Net earnings | 67,725 | 97,955 | 88,746 |
Adjustments to reconcile net earnings to net cash flows from operations: | |||
Depreciation and amortization | 12,926 | 12,862 | 12,923 |
(Gain) loss on sale of property, plant and equipment | 143 | 42 | -17 |
Equity in earnings in nonconsolidated subsidiaries | -19,509 | -16,417 | -37,925 |
Deferred income taxes | 1,866 | -19 | -496 |
Changes in assets and liabilities (net of the effect from acquisitions): | |||
Receivables | 40,186 | -22,259 | -32,833 |
Inventories | 15,317 | 1,757 | 5,850 |
Prepaid expenses | 429 | 98 | -20 |
Accounts payable | -5,212 | -1,643 | 578 |
Accrued expenses | -9,590 | 5,824 | 945 |
Income taxes payable (refundable) | -19,417 | -3,251 | 350 |
Net cash flows from operating activities | 84,864 | 74,949 | 38,101 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | -2,823 | -4,439 | -22,197 |
Proceeds from sale of assets | 126 | 35 | 39 |
Other, net | 73,799 | -83,327 | -18,397 |
Net cash flows from investing activities | -76,496 | -87,731 | -40,555 |
Cash flows from financing activities: | |||
Intercompany dividends | -36,600 | 20,133 | |
Intercompany interest on long-term note | 648 | 1,229 | |
Intercompany principal payment on long-term note | -22,430 | ||
Net cash flows from financing activities | -35,952 | 43,792 | |
Effect of exchange rate changes on cash and cash equivalents | -56 | -7,927 | 2,285 |
Net change in cash and cash equivalents | -27,640 | 23,083 | -169 |
Cash and cash equivalents-beginning of year | 29,797 | 6,714 | 6,883 |
Cash and cash equivalents-end of year | 2,157 | 29,797 | 6,714 |
Non-Guarantors | |||
Cash flows from operating activities: | |||
Net earnings | 85,840 | 68,597 | 83,263 |
Adjustments to reconcile net earnings to net cash flows from operations: | |||
Depreciation and amortization | 51,893 | 43,304 | 38,174 |
Deconsolidation of subsidiary | 12,011 | ||
Impairment of property, plant and equipment | 12,161 | ||
Loss on investment | 3,795 | ||
Defined benefit pension plan expense | 2,638 | 6,569 | 4,281 |
Contribution to defined benefit pension plan | -18,173 | -17,619 | -11,591 |
Change in fair value of contingent consideration | -4,300 | ||
(Gain) loss on sale of property, plant and equipment | 104 | -5,245 | 249 |
Equity in earnings in nonconsolidated subsidiaries | -63 | -494 | -5,150 |
Deferred income taxes | 4,859 | -1,174 | 8,937 |
Changes in assets and liabilities (net of the effect from acquisitions): | |||
Receivables | -20,143 | 3,370 | -30,306 |
Inventories | 1,047 | -1,292 | 1,293 |
Prepaid expenses | -11,671 | 1,600 | 4,968 |
Accounts payable | -26,849 | 24,549 | -11,273 |
Accrued expenses | -3,740 | -3,317 | -644 |
Other noncurrent liabilities | 1,133 | -4,675 | -4,473 |
Income taxes payable (refundable) | 4,559 | 5,029 | -1,921 |
Net cash flows from operating activities | 70,929 | 143,374 | 75,807 |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | -28,940 | -25,732 | -31,287 |
Acquisitions, net of cash acquired | -185,710 | -63,152 | -45,687 |
Proceeds from sale of assets | 2,320 | 36,753 | 5,873 |
Other, net | -38,796 | 503 | 27,370 |
Net cash flows from investing activities | -173,534 | -51,628 | -43,731 |
Cash flows from financing activities: | |||
Net borrowings under short-term agreements | -4,472 | 5,510 | 1,828 |
Proceeds from long-term borrowings | -329 | 274 | 126 |
Principal payments on long-term obligations | -864 | -404 | -367 |
Cash decrease due to deconsolidation of subsidiary | -11,615 | ||
Intercompany dividends | -80,395 | -29,080 | |
Intercompany interest on long-term note | -648 | -1,229 | |
Intercompany principal payment on long-term note | 22,430 | ||
Intercompany capital contribution | 143,000 | ||
Dividends to noncontrolling interest | -2,919 | -1,767 | -1,944 |
Proceeds from sale of partial ownership interest | 1,404 | ||
Purchase of noncontrolling interest | -9,324 | ||
Net cash flows from financing activities | 53,373 | -70,065 | 1,047 |
Effect of exchange rate changes on cash and cash equivalents | -19,548 | -19,837 | 4,900 |
Net change in cash and cash equivalents | -68,780 | 1,844 | 38,023 |
Cash and cash equivalents-beginning of year | 368,333 | 366,489 | 328,466 |
Cash and cash equivalents-end of year | 299,553 | 368,333 | 366,489 |
Eliminations | |||
Cash flows from operating activities: | |||
Net earnings | -148,223 | -164,581 | -167,165 |
Adjustments to reconcile net earnings to net cash flows from operations: | |||
Equity in earnings in nonconsolidated subsidiaries | 148,574 | 166,588 | 166,602 |
Changes in assets and liabilities (net of the effect from acquisitions): | |||
Income taxes payable (refundable) | 825 | -700 | |
Net cash flows from operating activities | 351 | 2,832 | -1,263 |
Cash flows from investing activities: | |||
Other, net | 351 | -2,832 | 1,263 |
Net cash flows from investing activities | ($351) | ($2,832) | $1,263 |
QUARTERLY_FINANCIAL_DATA_Unaud2
QUARTERLY FINANCIAL DATA (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
QUARTERLY FINANCIAL DATA (Unaudited) | |||||||||||
Net sales | $763,136 | $765,668 | $842,599 | $751,740 | $827,890 | $778,032 | $878,659 | $819,630 | $3,123,143 | $3,304,211 | $3,029,541 |
Gross profit | 181,158 | 199,500 | 220,477 | 206,982 | 222,824 | 225,564 | 261,471 | 235,369 | 808,117 | 945,228 | 802,456 |
Net Earnings, Amount | 40,461 | 23,559 | 63,976 | 55,980 | 54,868 | 56,489 | 89,563 | 77,569 | 183,976 | 278,489 | 234,072 |
Net Earnings, Per Share, Basic (in dollars per share) | $1.67 | $0.93 | $2.40 | $2.10 | $2.06 | $2.12 | $3.36 | $2.92 | $7.15 | $10.45 | $8.84 |
Net Earnings, Per Share, Diluted (in dollars per share) | $1.66 | $0.92 | $2.38 | $2.08 | $2.04 | $2.10 | $3.33 | $2.89 | $7.09 | $10.35 | $8.75 |
Stock Price, High (in dollars per share) | $139.31 | $155.62 | $163.23 | $155.64 | $150.58 | $153.16 | $157.99 | $164.93 | $163.23 | $164.93 | |
Stock Price, Low (in dollars per share) | $123.44 | $131.68 | $143.02 | $141.74 | $129 | $133.38 | $132.16 | $133.40 | $123.44 | $129 | |
Dividends Declared (in dollars per share) | $0.38 | $0.38 | $0.38 | $0.25 | $0.25 | $0.25 | $0.25 | $0.23 | $1.38 | $0.98 | $0.86 |
Quarterly Financial Data | |||||||||||
Non-cash after-tax loss on deconsolidation | 12,011 | ||||||||||
EMD | |||||||||||
Quarterly Financial Data | |||||||||||
Non-cash after-tax loss on deconsolidation | 12,011 | ||||||||||
Non-cash after-tax loss on deconsolidation (in dollars per share) | $0.45 | ||||||||||
Fixed asset impairment loss | $4,569 | ||||||||||
Fixed asset impairment loss (in dollars per share) | $0.17 |
Schedule_IIValuation_and_Quali1
Schedule II-Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Allowance for doubtful receivables | |||
Movement in Valuation and Qualifying Accounts | |||
Balance at beginning of period | $10,369 | $7,898 | $7,555 |
Charged to profit and loss | 1,780 | 4,674 | 1,336 |
Deductions from reserves | -2,227 | -2,203 | -993 |
Balance at close of period | 9,922 | 10,369 | 7,898 |
Allowance for deferred income tax asset valuation | |||
Movement in Valuation and Qualifying Accounts | |||
Balance at beginning of period | 107,767 | 120,979 | 123,522 |
Charged to profit and loss | -3,280 | -13,212 | -2,543 |
Balance at close of period | $104,487 | $107,767 | $120,979 |