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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended
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Jun. 27, 2020
Accounting Policies [Abstract] |
Components of inventories | Inventories consisted of the following:
| June 27, 2020 |  | December 28, 2019
Raw materials and purchased parts | $ | 167,626 |  |  | $ | 158,314 |
Work-in-process | 32,535 |  |  | 38,088 |
Finished goods and manufactured goods | 249,355 |  |  | 221,968 |
| 449,516 |  |  | 418,370 |
Schedule of Change in Accounting Estimate | The impact of the change from LIFO to FIFO on the Company’s Condensed Consolidated Statements of Earnings and Comprehensive Income for the thirteen and twenty-six weeks ended June 29, 2019 is as follows:
| Thirteen weeks ended |  |  |  | Twenty-six weeks ended |  |
(in 000's, except earnings per share) | As Previously Reported | Retrospectively Adjusted | Adjustment |  | As Previously Reported | Retrospectively Adjusted | Adjustment
Cost of sales | 520,457 | 522,695 | 2,238 |  | 1,047,467 | 1,050,207 | 2,740
Operating income | 63,712 | 61,474 | (2,238) |  | 118,816 | 116,076 | (2,740)
Income tax expense | 13,961 | 13,401 | (560) |  | 26,388 | 25,703 | (685)
Net earnings attributed to Valmont Industries, Inc | 41,397 | 39,719 | (1,679) |  | 77,878 | 75,823 | (2,055)
Comprehensive (loss) income | 38,048 | 36,370 | (1,679) |  | 80,083 | 78,028 | (2,055)
Net earnings per diluted share | 1.90 | 1.82 | (0.08) |  | 3.56 | 3.46 | (0.10)
The Company applied this change retrospectively to the earliest period presented. The resulting impact to the Condensed Consolidated Balance Sheet as of December 28, 2019 is as follows:
| December 28, 2019 |  |
Consolidated Balance Sheet | As Previously Reported | Adjustment | Retrospectively Adjusted
Inventory | 374,565 | 43,805 | 418,370
Deferred income tax liability | 47,955 | 10,951 | 58,906
Retained earnings | 2,140,948 | 32,854 | 2,173,802
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries | Earnings before income taxes for the thirteen and twenty-six weeks ended June 27, 2020 and June 29, 2019, were as follows:
| Thirteen weeks ended |  |  |  | Twenty-six weeks ended |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
United States | $ | 54,237 |  |  | $ | 45,031 |  |  | $ | 107,737 |  |  | $ | 86,780 |
Foreign | (18,621) |  |  | 9,038 |  |  | (14,695) |  |  | 16,669 |
| $ | 35,616 |  |  | $ | 54,069 |  |  | $ | 93,042 |  |  | $ | 103,449 |
Schedule of components of the net periodic pension (benefit) expense | The components of the net periodic pension (benefit) expense for the thirteen and twenty-six weeks ended June 27, 2020 and June 29, 2019 were as follows:
| Thirteen weeks ended |  |  |  | Twenty-six weeks ended |  |
Net periodic (benefit) expense: | 2020 |  | 2019 |  | 2020 |  | 2019
Interest cost | $ | 3,160 |  |  | $ | 4,182 |  |  | $ | 6,284 |  |  | $ | 8,527 |
Expected return on plan assets | (5,664) |  |  | (4,943) |  |  | (11,262) |  |  | (10,078) |
Amortization of actuarial loss | 720 |  |  | 634 |  |  | 1,431 |  |  | 1,292 |
Net periodic (benefit) expense | $ | (1,784) |  |  | $ | (127) |  |  | $ | (3,547) |  |  | $ | (259) |
Compensation expense (included in selling, general and administrative expenses) and associated income tax benefits related to stock options | The Company's compensation expense (included in selling, general and administrative expenses) and associated income tax benefits related to stock options and restricted stock for the thirteen and twenty-six weeks ended June 27, 2020 and June 29, 2019, respectively, were as follows:
| Thirteen weeks ended |  |  |  | Twenty-six weeks ended |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
Compensation expense | $ | 2,346 |  |  | $ | 2,700 |  |  | $ | 5,671 |  |  | $ | 6,370 |
Income tax benefits | 587 |  |  | 675 |  |  | 1,418 |  |  | 1,593 |
Valuation methodologies used for assets and liabilities measured at fair value |
|  |  | Fair Value Measurement Using: |  |  |  |
| Carrying Value June 27, 2020 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Trading Securities | $ | 37,205 |  |  | $ | 37,205 |  |  | $ | — |  |  | $ | — |
Derivative financial instruments, net | 7,268 |  |  | — |  |  | 7,268 |  |  | — |
|  |  | Fair Value Measurement Using: |  |  |  |
| Carrying Value December 28, 2019 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Trading Securities | $ | 36,500 |  |  | $ | 36,500 |  |  | $ | — |  |  | $ | — |
Derivative financial instruments, net | 3,247 |  |  | — |  |  | 3,247 |  |  | — |
Components of accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) consisted of the following at June 27, 2020 and December 28, 2019:
| Foreign Currency Translation Adjustments |  | Gain on Hedging Activities |  | Defined Benefit Pension Plan |  | Accumulated Other Comprehensive Loss
Balance at December 28, 2019 | $ | (232,575) |  |  | $ | 14,076 |  |  | $ | (94,923) |  |  | $ | (313,422) |
Current-period comprehensive income (loss) | (30,981) |  |  | 11,917 |  |  | — |  |  | (19,064) |
Balance at June 27, 2020 | $ | (263,556) |  |  | $ | 25,993 |  |  | $ | (94,923) |  |  | $ | (332,486) |
Disaggregation of revenue | A breakdown by segment of revenue recognized over time and at a point in time for the thirteen and twenty-six weeks ended June 27, 2020 and June 29, 2019 is as follows:
| Point in Time |  | Over Time |  | Point in Time |  | Over Time
| Thirteen weeks ended June 27, 2020 |  | Thirteen weeks ended June 27, 2020 |  | Twenty-six weeks ended June 27, 2020 |  | Twenty-six weeks ended June 27, 2020
Utility Support Structures | $ | 4,619 |  |  | $ | 223,854 |  |  | $ | 13,543 |  |  | $ | 437,878 |
Engineered Support Structures | 236,827 |  |  | 12,046 |  |  | 452,706 |  |  | 23,533 |
Coatings | 62,667 |  |  | — |  |  | 131,257 |  |  | — |
Irrigation | 144,988 |  |  | 3,807 |  |  | 296,730 |  |  | 7,361 |
Total | $ | 449,101 |  |  | $ | 239,707 |  |  | $ | 894,236 |  |  | $ | 468,772 |
| Point in Time |  | Over Time |  | Point in Time |  | Over Time
| Thirteen weeks ended June 29, 2019 |  | Thirteen weeks ended June 29, 2019 |  | Twenty-six weeks ended June 29, 2019 |  | Twenty-six weeks ended June 29, 2019
Utility Support Structures | $ | 9,932 |  |  | $ | 199,077 |  |  | $ | 40,224 |  |  | $ | 412,043 |
Engineered Support Structures | 244,604 |  |  | 12,961 |  |  | 461,074 |  |  | 24,460 |
Coatings | 81,089 |  |  | — |  |  | 151,320 |  |  | — |
Irrigation | 149,956 |  |  | 3,252 |  |  | 297,814 |  |  | 6,075 |
Total | $ | 485,581 |  |  | $ | 215,290 |  |  | $ | 950,432 |  |  | $ | 442,578 |

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