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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended
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Sep. 26, 2020
Accounting Policies [Abstract] |
Components of inventories | Inventories consisted of the following:
| September 26, 2020 |  | December 28, 2019
Raw materials and purchased parts | $ | 153,708 |  |  | $ | 158,314 |
Work-in-process | 25,335 |  |  | 38,088 |
Finished goods and manufactured goods | 269,045 |  |  | 221,968 |
| 448,088 |  |  | 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 thirty-nine weeks ended September 28, 2019 is as follows:
| Thirteen weeks ended |  |  | Thirty-nine weeks ended |
(in 000's, except earnings per share) | As Previously Reported | Retrospectively Adjusted | Adjustment |  | As Previously Reported | Retrospectively Adjusted | Adjustment
Cost of sales | 514,254 | 517,053 | 2,799 |  | 1,561,721 | 1,567,260 | 5,539
Operating income | 63,863 | 61,064 | (2,799) |  | 182,679 | 177,140 | (5,539)
Income tax expense | 13,763 | 13,063 | (700) |  | 40,151 | 38,766 | (1,385)
Net earnings attributed to Valmont Industries, Inc | 40,144 | 38,045 | (2,099) |  | 118,022 | 113,868 | (4,154)
Comprehensive (loss) income | 27,797 | 25,698 | (2,099) |  | 107,880 | 103,726 | (4,154)
Net earnings per diluted share | 1.85 | 1.75 | (0.10) |  | 5.41 | 5.22 | (0.19)
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 thirty-nine weeks ended September 26, 2020 and September 28, 2019, were as follows:
| Thirteen weeks ended |  | Thirty-nine weeks ended
| 2020 |  | 2019 |  | 2020 |  | 2019
United States | $ | 33,610 |  |  | $ | 42,098 |  |  | $ | 141,347 |  |  | $ | 128,878 |
Foreign | 18,978 |  |  | 11,129 |  |  | 4,283 |  |  | 27,798 |
| $ | 52,588 |  |  | $ | 53,227 |  |  | $ | 145,630 |  |  | $ | 156,676 |
Schedule of components of the net periodic pension (benefit) expense | The components of the net periodic pension (benefit) expense for the thirteen and thirty-nine weeks ended September 26, 2020 and September 28, 2019 were as follows:
| Thirteen weeks ended |  | Thirty-nine weeks ended
Net periodic (benefit) expense: | 2020 |  | 2019 |  | 2020 |  | 2019
Interest cost | $ | 3,285 |  |  | $ | 4,075 |  |  | $ | 9,569 |  |  | $ | 12,602 |
Expected return on plan assets | (5,887) |  |  | (4,815) |  |  | (17,149) |  |  | (14,893) |
Amortization of actuarial loss | 748 |  |  | 617 |  |  | 2,179 |  |  | 1,909 |
Net periodic (benefit) expense | $ | (1,854) |  |  | $ | (123) |  |  | $ | (5,401) |  |  | $ | (382) |
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 thirty-nine weeks ended September 26, 2020 and September 28, 2019, respectively, were as follows:
| Thirteen weeks ended |  | Thirty-nine weeks ended
| 2020 |  | 2019 |  | 2020 |  | 2019
Compensation expense | $ | 3,065 |  |  | $ | 2,519 |  |  | $ | 8,736 |  |  | $ | 8,889 |
Income tax benefits | 766 |  |  | 630 |  |  | 2,184 |  |  | 2,222 |
Valuation methodologies used for assets and liabilities measured at fair value |
|  |  | Fair Value Measurement Using:
| Carrying Value September 26, 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 | $ | 33,881 |  |  | $ | 33,881 |  |  | $ | — |  |  | $ | — |
Derivative financial instruments, net | 3,548 |  |  | — |  |  | 3,548 |  |  | — |
|  |  | 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 September 26, 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) | (17,062) |  |  | 8,150 |  |  | — |  |  | (8,912) |
Balance at September 26, 2020 | $ | (249,637) |  |  | $ | 22,226 |  |  | $ | (94,923) |  |  | $ | (322,334) |
Disaggregation of revenue | A breakdown by segment of revenue recognized over time and at a point in time for the thirteen and thirty-nine weeks ended September 26, 2020 and September 28, 2019 is as follows:
| Point in Time |  | Over Time |  | Point in Time |  | Over Time
| Thirteen weeks ended September 26, 2020 |  | Thirteen weeks ended September 26, 2020 |  | Thirty-nine weeks ended September 26, 2020 |  | Thirty-nine weeks ended September 26, 2020
Utility Support Structures | $ | 43,287 |  |  | $ | 229,192 |  |  | $ | 56,830 |  |  | $ | 667,070 |
Engineered Support Structures | 244,785 |  |  | 10,160 |  |  | 697,491 |  |  | 33,693 |
Coatings | 68,698 |  |  | — |  |  | 199,955 |  |  | — |
Irrigation | 133,999 |  |  | 3,849 |  |  | 430,729 |  |  | 11,210 |
Total | $ | 490,769 |  |  | $ | 243,201 |  |  | $ | 1,385,005 |  |  | $ | 711,973 |
| Point in Time |  | Over Time |  | Point in Time |  | Over Time
| Thirteen weeks ended September 28, 2019 |  | Thirteen weeks ended September 28, 2019 |  | Thirty-nine weeks ended September 28, 2019 |  | Thirty-nine weeks ended September 28, 2019
Utility Support Structures | $ | 3,418 |  |  | $ | 200,778 |  |  | $ | 43,642 |  |  | $ | 612,821 |
Engineered Support Structures | 252,501 |  |  | 13,993 |  |  | 713,574 |  |  | 38,454 |
Coatings | 76,922 |  |  | — |  |  | 228,242 |  |  | — |
Irrigation | 139,093 |  |  | 3,635 |  |  | 436,907 |  |  | 9,710 |
Total | $ | 471,934 |  |  | $ | 218,406 |  |  | $ | 1,422,365 |  |  | $ | 660,985 |

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