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INCOME TAXES | 12 Months Ended
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Dec. 26, 2015
Income Tax Disclosure [Abstract] |
INCOME TAXES | (9) INCOME TAXES Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries are as follows:
| 2015 |  | 2014 |  | 2013
United States | $ | 99,175 |  |  | $ | 168,975 |  |  | $ | 338,163 |
Foreign | (6,168 | ) |  | 115,208 |  |  | 111,254 |
| $ | 93,007 |  |  | $ | 284,183 |  |  | $ | 449,417 |
Income tax expense (benefit) consists of:
| 2015 |  | 2014 |  | 2013
Current: |  |  |  |  |
Federal | $ | 23,130 |  |  | $ | 52,588 |  |  | $ | 110,847 |
State | 4,431 |  |  | 5,059 |  |  | 16,398 |
Foreign | 15,077 |  |  | 32,443 |  |  | 39,285 |
| 42,638 |  |  | 90,090 |  |  | 166,530 |
Non-current: | (69 | ) |  | (447 | ) |  | 1,392 |
Deferred: |  |  |  |  |
Federal | 3,382 |  |  | 447 |  |  | (8,661 | )
State | (333 | ) |  | 1,376 |  |  | (307 | )
Foreign | 1,809 |  |  | 3,428 |  |  | (1,173 | )
| 4,858 |  |  | 5,251 |  |  | (10,141 | )
| $ | 47,427 |  |  | $ | 94,894 |  |  | $ | 157,781 |
(9) INCOME TAXES (Continued) The reconciliations of the statutory federal income tax rate and the effective tax rate follows:
| 2015 |  | 2014 |  | 2013
Statutory federal income tax rate | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal benefit | 3.1 |  |  | 1.8 |  |  | 2.4 |
Carryforwards, credits and changes in valuation allowances | (0.1 | ) |  | (0.4 | ) |  | (0.2 | )
Foreign tax rate differences | (5.7 | ) |  | (4.4 | ) |  | (2.4 | )
Changes in unrecognized tax benefits | (0.1 | ) |  | (0.2 | ) |  | 0.3 |
Domestic production activities deduction | (3.8 | ) |  | (1.6 | ) |  | (2.1 | )
Goodwill impairment | 11.3 |  |  | — |  |  | — |
UK tax rate reduction | 7.7 |  |  | — |  |  | 1.8 |
Other | 3.6 |  |  | 3.2 |  |  | 0.3 |
| 51.0 | % |  | 33.4 | % |  | 35.1 | %
Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and (b) operating loss and tax credit carryforwards. The tax effects of significant items comprising the Company’s net deferred income tax liabilities are as follows:
| 2015 |  | 2014
Deferred income tax assets: |  |  |
Accrued expenses and allowances | $ | 18,320 |  |  | $ | 17,446 |
Accrued insurance | 1,408 |  |  | 882 |
Tax credits and loss carryforwards | 130,743 |  |  | 148,484 |
Defined benefit pension liability | 32,278 |  |  | 30,025 |
Inventory allowances | 911 |  |  | 4,804 |
Accrued warranty | 12,818 |  |  | 6,920 |
Deferred compensation | 36,672 |  |  | 40,348 |
Gross deferred income tax assets | 233,150 |  |  | 248,909 |
Valuation allowance | (90,837 | ) |  | (104,487 | )
Net deferred income tax assets | 142,313 |  |  | 144,422 |
Deferred income tax liabilities: |  |  |
Work in progress | 3,087 |  |  | 5,352 |
Property, plant and equipment | 41,147 |  |  | 43,084 |
Intangible assets | 54,162 |  |  | 60,316 |
Other liabilities | 3,517 |  |  | 6,738 |
Total deferred income tax liabilities | 101,913 |  |  | 115,490 |
Net deferred income tax asset/(liability) | $ | 40,400 |  |  | $ | 28,932 |
(9) INCOME TAXES (Continued) Deferred income tax assets (liabilities) are presented as follows on the Consolidated Balance Sheets:
Balance Sheet Caption | 2015 |  | 2014
Refundable and deferred income taxes | $ | — |  |  | $ | 30,239 |
Other assets | 76,069 |  |  | 70,490 |
Deferred income taxes | (35,669 | ) |  | (71,797 | )
Net deferred income tax asset/(liability) | $ | 40,400 |  |  | $ | 28,932 |
In November 2015, the FASB issued ASU 2015-17 which provides guidance on simplifying the balance sheet classification of deferred taxes. Currently, GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts for balance sheet presentation. ASU 2015-17 simplifies the presentation by classifying all deferred tax liabilities and assets as noncurrent. Valmont adopted ASU 2015-17 as of December 26, 2015 on a prospective basis. The net amount of current deferred tax assets being classified as noncurrent at December 26, 2015 is $31,967. Management of the Company has reviewed recent operating results and projected future operating results. The Company's belief that realization of its net deferred tax assets is more likely than not is based on, among other factors, changes in operations that have occurred in recent years and available tax planning strategies. At December 26, 2015 and December 27, 2014 respectively, there were $130,743 and $148,484 relating to tax credits and loss carryforwards and $32,278 and $30,025 related to the defined benefit pension obligation. Valuation allowances have been established for certain losses that reduce deferred tax assets to an amount that will, more likely than not, be realized. The deferred tax assets at December 26, 2015 that are associated with tax loss and tax credit carryforwards not reduced by valuation allowances expire in periods starting 2016. Uncertain tax positions included in other non-current liabilities are evaluated in a two-step process, whereby (1) the Company determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (2) for those tax positions that meet the more likely than not recognition threshold, the Company would recognize the largest amount of tax benefit that is greater than fifty percent likely to be realized upon ultimate settlement with the related tax authority. The following summarizes the activity related to our unrecognized tax benefits in 2015 and 2014, in thousands:
| 2015 |  | 2014
Gross unrecognized tax benefits—beginning of year | $ | 4,268 |  |  | $ | 4,727 |
Gross decreases—tax positions in prior period | (173 | ) |  | (456 | )
Gross increases—current‑period tax positions | 687 |  |  | 610 |
Settlements with taxing authorities | (361 | ) |  | — |
Lapse of statute of limitations | (545 | ) |  | (613 | )
Gross unrecognized tax benefits—end of year | $ | 3,876 |  |  | $ | 4,268 |
There are approximately $1,304 of uncertain tax positions for which reversal is reasonably possible during the next 12 months due to the closing of the statute of limitations. The nature of these uncertain tax positions is generally the computation of a tax deduction or tax credit. During 2015, the Company recorded a reduction of its gross unrecognized tax benefit of $545 with $511 recorded as a reduction of income tax expense, due to the expiration of statutes of limitation in the United States. During 2014, the company recorded a reduction of its gross unrecognized tax benefit of $613, with $399 recorded as a reduction of its income tax expense, due to the expiration of statutes of limitation in the United States. In addition to these amounts, there was an aggregate of $280 and $298 of interest and penalties at December 26, 2015 and December 27, 2014, respectively. The Company’s policy is to record interest and penalties directly related to income taxes as income tax expense in the Consolidated Statements of Earnings. (9) INCOME TAXES (Continued) The Company files income tax returns in the U.S. and various states as well as foreign jurisdictions. Tax years 2011 and forward remain open under U.S. statutes of limitation. Generally, tax years 2012 and forward remain open under state statutes of limitation. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was $3,813 and $4,056 at December 26, 2015 and December 27, 2014, respectively. All foreign subsidiaries are considered permanently invested at December 26, 2015. Provision has not been made for United States income taxes on the undistributed earnings of the Company’s foreign subsidiaries (approximately $415,400 at December 26, 2015 and $432,700 at December 27, 2014, respectively) because the Company intends to reinvest those earnings. Such earnings would become taxable upon the sale or liquidation of these foreign subsidiaries or upon remittance of dividends. Furthermore, the currency translation adjustments in “Accumulated other comprehensive income (loss)” are not adjusted for income taxes as they relate to indefinite investments in foreign subsidiaries.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 + Details
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