VALMONT INDUSTRIES INC [VMI] Filings

10-Q 1 vmi-20220625.htm 10-Q vmi-20220625

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended June 25, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from ____________ to

Commission file number 1-31429

_____________________________________

Valmont Industries, Inc.

(Exact name of registrant as specified in its charter)


Delaware		47-0351813
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
15000 Valmont Plaza,
Omaha,	Nebraska	68154
(Address of Principal Executive Offices)		(Zip Code)

(402) 963-1000

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock $1.00 par value

VMI

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non‑accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐

No x

21,350,725

Outstanding shares of common stock as of July 21, 2022

VALMONT INDUSTRIES, INC

INDEX TO FORM 10-Q


		Page No.
	PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited):
	Condensed Consolidated Statements of Earnings for the thirteen and twenty-six
	weeks ended June 25, 2022 and June 26, 2021	3
	Condensed Consolidated Statements of Comprehensive Income for the thirteen
	and twenty-six weeks ended June 25, 2022 and June 26, 2021	4
	Condensed Consolidated Balance Sheets as of June 25, 2022 and
	December 25, 2021	5
	Condensed Consolidated Statements of Cash Flows for the twenty-six weeks
	ended June 25, 2022 and June 26, 2021	6
	Condensed Consolidated Statements of Shareholders' Equity for the thirteen
	and twenty-six weeks ended June 25, 2022 and June 26, 2021	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4.	Controls and Procedures	36

	PART II. OTHER INFORMATION
Item 1A.	Risk Factors	37
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 5.	Other Information	37
Item 6.	Exhibits	38
Signatures		39

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

PART I. FINANCIAL INFORMATION

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Dollars in thousands, except per share amounts)

(Unaudited)


	Thirteen weeks ended				Twenty-six weeks ended
	June 25, 2022		June 26, 2021		June 25, 2022		June 26, 2021
Product sales	$	1,036,289	$	805,801	$	1,927,159	$	1,500,766
Services sales	99,243		88,828		189,193		168,749
Net sales	1,135,532		894,629		2,116,352		1,669,515
Product cost of sales	781,323		608,101		1,454,493		1,126,735
Services cost of sales	61,608		56,881		120,072		108,579
Total cost of sales	842,931		664,982		1,574,565		1,235,314
Gross profit	292,601		229,647		541,787		434,201
Selling, general and administrative expenses	173,882		147,022		328,226		274,365

Operating income	118,719		82,625		213,561		159,836
Other income (expenses):
Interest expense	(11,386)		(10,436)		(22,649)		(20,435)
Interest income	285		186		512		497
Gain (loss) on investments - unrealized	(2,342)		1,177		(3,405)		1,068


Other	2,073		4,204		5,715		7,653
	(11,370)		(4,869)		(19,827)		(11,217)
Earnings before income taxes	107,349		77,756		193,734		148,619
Income tax expense:
Current	27,620		25,413		50,033		33,960
Deferred	1,967		(10,673)		2,675		(3,718)
	29,587		14,740		52,708		30,242
Earnings before equity in earnings of nonconsolidated subsidiaries	77,762		63,016		141,026		118,377
Equity in loss of nonconsolidated subsidiaries	(555)		(359)		(913)		(719)
Net earnings	77,207		62,657		140,113		117,658
Less: earnings attributable to noncontrolling interests	(1,099)		(547)		(1,694)		(534)
Net earnings attributable to Valmont Industries, Inc.	$	76,108	$	62,110	$	138,419	$	117,124
Earnings per share:
Basic	$	3.57	$	2.93	$	6.50	$	5.53
Diluted	$	3.53	$	2.89	$	6.43	$	5.46

See accompanying notes to condensed consolidated financial statements.

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands)

(Unaudited)


	Thirteen Weeks Ended				Twenty-six weeks ended
	June 25, 2022		June 26, 2021		June 25, 2022		June 26, 2021
Net earnings	$	77,207	$	62,657	$	140,113	$	117,658
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	(43,666)		10,690		(32,050)		(1,943)
Gain (loss) on hedging activities:

Cash flow hedges	—		(313)		—		(291)

Amortization cost included in interest expense	(16)		(16)		(32)		(32)

Commodity hedges	(19,512)		16,308		1,048		26,254
Realized (gain) loss on commodity hedges recorded in earnings	1,545		(270)		(498)		(270)
Cross currency swaps	3,470		(2,095)		5,281		1,511
Defined Benefit Pension Plan:

Actuarial gain on defined benefit pension plan	124		843		256		1,675
Other comprehensive income (loss)	(58,055)		25,147		(25,995)		26,904
Comprehensive income	19,152		87,804		114,118		144,562
Comprehensive (income) loss attributable to noncontrolling interests	932		(1,573)		(756)		(1,087)
Comprehensive income attributable to Valmont Industries, Inc.	$	20,084	$	86,231	$	113,362	$	143,475

See accompanying notes to condensed consolidated financial statements.

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)


	June 25, 2022		December 25, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	154,579	$	177,232
Receivables, net	627,876		571,593
Inventories	786,600		728,834
Contract assets	200,522		142,643
Prepaid expenses and other assets	87,070		83,646
Refundable income taxes	—		8,815
Total current assets	1,856,647		1,712,763
Property, plant and equipment, at cost	1,452,413		1,422,101
Less accumulated depreciation and amortization	844,850		823,496
Net property, plant and equipment	607,563		598,605
Goodwill	741,743		708,566
Other intangible assets, net	192,333		175,364
Other assets	276,466		251,951
Total assets	$	3,674,752	$	3,447,249

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	3,018	$	4,884
Notes payable to banks	4,428		13,439
Accounts payable	388,498		347,841
Accrued employee compensation and benefits	107,108		144,559
Contract liabilities	175,814		135,746
Other accrued expenses	130,114		108,771
Income taxes payable	10,036		—

Dividends payable	11,743		10,616
Total current liabilities	830,759		765,856
Deferred income taxes	55,641		47,849
Long-term debt, excluding current installments	995,647		947,072
Defined benefit pension liability	—		536
Operating lease liabilities	154,799		147,759
Deferred compensation	33,778		35,373
Other noncurrent liabilities	50,978		89,207
Shareholders’ equity:


Common stock of $1 par value -
Authorized 75,000,000 shares; 27,900,000 issued	27,900		27,900
Additional paid in capital	4,321		1,479
Retained earnings	2,509,262		2,394,307
Accumulated other comprehensive loss	(288,184)		(263,127)
Treasury stock	(764,917)		(773,712)
Total Valmont Industries, Inc. shareholders’ equity	1,488,382		1,386,847
Noncontrolling interest in consolidated subsidiaries	64,768		26,750
Total shareholders’ equity	1,553,150		1,413,597
Total liabilities and shareholders’ equity	$	3,674,752	$	3,447,249

See accompanying notes to condensed consolidated financial statements.

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)


	Twenty-six weeks ended
	June 25, 2022		June 26, 2021
Cash flows from operating activities:
Net earnings	$	140,113	$	117,658
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	48,012		44,063




Stock-based compensation	19,583		8,948

Defined benefit pension plan benefit	(5,242)		(7,400)
Contribution to defined benefit pension plan	(17,155)		(970)
Loss (gain) on sale of property, plant and equipment	737		(1,330)
Equity in loss in nonconsolidated subsidiaries	913		719
Deferred income taxes	2,675		(3,718)
Changes in assets and liabilities:
Receivables	(53,809)		(45,398)
Inventories	(56,625)		(142,218)
Prepaid expenses and other assets (current and non-current)	5,369		(19,680)
Contract assets	(59,536)		(17,165)
Accounts payable	39,875		55,445
Accrued expenses	(16,034)		(18,119)
Contract liabilities	4,798		24,963
Other noncurrent liabilities	(6,447)		52,229
Income taxes payable/refundable	20,792		22,158
Net cash flows from operating activities	68,019		70,185
Cash flows from investing activities:
Purchase of property, plant and equipment	(49,676)		(48,824)
Proceeds from sale of assets	45		1,595
Acquisitions, net of cash acquired	(39,297)		(312,500)


Other, net	1,117		(1,669)
Net cash flows from investing activities	(87,811)		(361,398)
Cash flows from financing activities:
Proceeds from short-term borrowings	—		11,972
Payments on short-term borrowings	(9,155)		(17,021)
Proceeds from long-term borrowings	201,462		149,342
Principal payments on long-term borrowings	(156,973)		(15,421)


Dividends paid	(22,337)		(20,181)

Purchase of noncontrolling interest	(4,292)		—
Purchase of treasury shares	(9,776)		(21,600)
Proceeds from exercises under stock plans	5,846		19,891
Purchase of common treasury shares—stock plan exercises	(4,205)		(16,922)
Net cash flows from financing activities	570		90,060
Effect of exchange rate changes on cash and cash equivalents	(3,431)		(288)
Net change in cash and cash equivalents	(22,653)		(201,441)
Cash and cash equivalents—beginning of year	177,232		400,726
Cash and cash equivalents—end of period	$	154,579	$	199,285

See accompanying notes to condensed consolidated financial statements

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Dollars in thousands)

(Unaudited)


	Common stock		Additional paid-in capital		Retained earnings		Accumulated other comprehensive income (loss)		Treasury stock		Noncontrolling interest in consolidated subsidiaries		Total shareholders’ equity
Balance at March 27, 2021	$	27,900	$	—	$	2,282,355	$	(307,556)	$	(777,885)	$	25,288	$	1,250,102
Net earnings	—		—		62,110		—		—		547		62,657
Other comprehensive income (loss)	—		—		—		24,121		—		1,026		25,147
Cash dividends declared ($0.5 per share)	—		—		(10,606)		—		—		—		(10,606)




Purchase of treasury shares; 42,150 shares acquired	—		—		—		—		(10,469)		—		(10,469)
Stock plan exercises; 63,783 shares acquired	—		—		—		—		(197)		—		(197)
Stock options exercised; 1,245 shares issued	—		(3,500)		3,156		—		917		—		573
Stock option expense	—		619		—		—		—		—		619
Stock awards; 6,351 shares issued	—		2,881		—		—		777		—		3,658
Balance at June 26, 2021	$	27,900	$	—	$	2,337,015	$	(283,435)	$	(786,857)	$	26,861	$	1,321,484
Balance at March 26, 2022	$	27,900	$	5,251	$	2,444,897	$	(232,160)	$	(769,835)	$	28,438	1,504,491
Net earnings	—		—		76,108		—		—		1,099		77,207
Other comprehensive income (loss)	—		—		—		(56,024)		—		(2,031)		(58,055)
Cash dividends declared ($0.55 per share)	—		—		(11,743)		—		—		—		(11,743)

Purchase of noncontrolling interest	—		189		—		—		—		(4,481)		(4,292)
Addition of noncontrolling interest due to acquisition	—		—		—		—		—		41,743		41,743
Purchase of treasury shares; 38,804 shares acquired	—		—		—		—		(9,776)		—		(9,776)
Stock plan exercises; 7,080 shares acquired	—		—		—		—		(1,678)		—		(1,678)
Stock options exercised; 42,961 shares issued	—		(1,551)		—		—		6,684		—		5,133
Stock option expense	—		836		—		—		—		—		836
Stock awards; 42,145 shares issued	—		(404)		—		—		9,688		—		9,284
Balance at June 25, 2022	$	27,900	$	4,321	$	2,509,262	$	(288,184)	$	(764,917)	$	64,768	$	1,553,150

See accompanying notes to the condensed consolidated financial statements.


	Common stock		Additional paid-in capital		Retained earnings		Accumulated other comprehensive income (loss)		Treasury stock		Noncontrolling interest in consolidated subsidiaries		Total shareholders’ equity
Balance at December 26, 2020	$	27,900	$	335	$	2,245,035	$	(309,786)	$	(781,422)	$	25,774	$	1,207,836
Net earnings	—		—		117,124		—		—		534		117,658
Other comprehensive income (loss)	—		—		—		26,351		—		553		26,904
Cash dividends declared ($1.00 per share)	—		—		(21,231)		—		—		—		(21,231)




Purchase of treasury shares; 92,297 shares acquired	—		—		—		—		(21,600)		—		(21,600)
Stock plan exercises; 71,268 shares acquired	—		—		—		—		(16,922)		—		(16,922)
Stock options exercised; 144,123 shares issued	—		(8,100)		(3,913)		—		31,904		—		19,891
Stock option expense	—		1,267		—		—		—		—		1,267
Stock awards; 9,060 shares issued	—		6,498		—		—		1,183		—		7,681
Balance at June 26, 2021	$	27,900	$	—	$	2,337,015	$	(283,435)	$	(786,857)	$	26,861	$	1,321,484
Balance at December 25, 2021	$	27,900	$	1,479	$	2,394,307	$	(263,127)	$	(773,712)	$	26,750	$	1,413,597
Net earnings	—		—		138,419		—		—		1,694		140,113
Other comprehensive income (loss)	—		—		—		(25,057)		—		(938)		(25,995)
Cash dividends declared ($1.10 per share)	—		—		(23,464)		—		—		—		(23,464)

Purchase of noncontrolling interest	—		189		—		—		—		(4,481)		(4,292)
Addition of noncontrolling interest due to acquisition	—		—		—		—		—		41,743		41,743
Purchase of treasury shares; 38,804 shares acquired	—		—		—		—		(9,776)		—		(9,776)
Stock plan exercises; 18,775 shares acquired	—		—		—		—		(4,205)		—		(4,205)
Stock options exercised; 48,577 shares issued	—		(2,087)		—		—		7,933		—		5,846
Stock option expense	—		1,552		—		—		—		—		1,552
Stock awards; 79,893 shares issued	—		3,188		—		—		14,843		—		18,031
Balance at June 25, 2022	$	27,900	$	4,321	$	2,509,262	$	(288,184)	$	(764,917)	$	64,768	$	1,553,150

See accompanying notes to the condensed consolidated financial statements.

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except per share amounts)

(Unaudited)

(1) BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Condensed Consolidated Financial Statements

The Condensed Consolidated Balance Sheet as of June 25, 2022, the Condensed Consolidated Statements of Earnings, Comprehensive Income, and Shareholders' Equity for the thirteen and twenty-six weeks ended June 25, 2022 and June 26, 2021, and the Condensed Consolidated Statement of Cash Flows for the twenty-six weeks then ended have been prepared by Valmont Industries Inc. (the Company), without audit. In the opinion of management, all necessary adjustments (which include normal recurring adjustments) have been made to present fairly the financial statements as of June 25, 2022 and for all periods presented.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These Condensed Consolidated Financial Statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 25, 2021. The results of operations for the period ended June 25, 2022 are not necessarily indicative of the operating results for the full year.

Change in Reportable Segments

During the first quarter of 2022, the Company's Chief Executive Officer, as the chief operating decision maker ("CODM"), made changes to the Company’s management structure and began to manage the business, allocate resources, and evaluate performance under the new structure. As a result, the Company has realigned its reportable segment structure. All prior period segment information has been recast to reflect this change in reportable segments. Refer to Note 7 for additional information.

Inventories

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.

Inventories consisted of the following:


	June 25, 2022		December 25, 2021
Raw materials and purchased parts	$	309,372	$	278,107
Work-in-process	72,632		63,628
Finished goods and manufactured goods	404,596		387,099
Total Inventory	$	786,600	$	728,834

Income Taxes

Earnings before income taxes for the thirteen and twenty-six weeks ended June 25, 2022 and June 26, 2021, were as follows:


	Thirteen weeks ended				Twenty-six weeks ended
	2022		2021		2022		2021
United States	$	62,214	$	57,090	$	123,031	$	108,245
Foreign	45,135		20,666		70,703		40,374
	$	107,349	$	77,756	$	193,734	$	148,619

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except per share amounts)

(Unaudited)

Pension Benefits

The Company incurs expenses in connection with the Delta Pension Plan ("DPP"). The DPP was acquired as part of the Delta plc acquisition in fiscal 2010 and has no members that are active employees. In order to measure expense and the related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as current facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits.

The components of the net periodic pension (benefit) expense for the thirteen and twenty-six weeks ended June 25, 2022 and June 26, 2021 were as follows:


	Thirteen weeks ended				Twenty-six weeks ended
Net periodic (benefit) expense:	2022		2021		2022		2021
Interest cost	$	3,157	$	2,530	$	6,522	$	5,027
Expected return on plan assets	(5,818)		(7,097)		(12,020)		(14,102)
Amortization of actuarial loss	124		843		256		1,675
Net periodic benefit	$	(2,537)	$	(3,724)	$	(5,242)	$	(7,400)

Stock Plans

The Company maintains stock-based compensation plans approved by the shareholders, which provide that the Human Resource Committee of the Board of Directors may grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, and bonuses of common stock. At June 25, 2022, 1,892,141 shares of common stock remained available for issuance under the plans.

Under the plans, the exercise price of each option equals the closing market price at the date of the grant. Options vest beginning on the first anniversary of the grant in equal amounts over three years or on the grant's fifth anniversary. Expiration of grants is seven years to ten years from the date of grant. Restricted stock units and awards generally vest in equal installments over three or four years beginning on the first anniversary of the grant.

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 25, 2022 and June 26, 2021, respectively, were as follows:


	Thirteen weeks ended				Twenty-six weeks ended
	2022		2021		2022		2021
Compensation expense	$	10,120	$	4,277	$	19,583	$	8,948
Income tax benefits	2,530		1,069		4,896		2,237

Fair Value

The Company applies the provisions of Accounting Standards Codification 820, Fair Value Measurements (“ASC 820”) which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The provisions of ASC 820 apply to other accounting pronouncements that require or permit fair value measurements. As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except per share amounts)

(Unaudited)

ASC 820 establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Financial assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value.

Trading Securities: The assets and liabilities recorded for the investments held in the Valmont Deferred Compensation Plan at June 25, 2022 of $28,383 ($29,982 at December 25, 2021) represent mutual funds, invested in debt and equity securities, classified as trading securities in accordance with Accounting Standards Codification ("ASC") 320, Accounting for Certain Investments in Debt and Equity Securities, considering the employee's ability to change investment allocation of their deferred compensation at any time. The Company's ownership of shares in Delta EMD Pty. Ltd. (JSE:DTA) is also classified as trading securities. The shares are valued at $93 and $94 as of June 25, 2022 and December 25, 2021, respectively, which is the estimated fair value. Quoted market prices are available for these securities in an active market and therefore categorized as a Level 1 input.

Derivative Financial Instruments: The fair value of foreign currency and commodity forward contracts, and cross currency contracts is based on a valuation model that discounts cash flows resulting from the differential between the contract price and the market-based forward rate.


			Fair Value Measurement Using:
	Carrying Value June 25, 2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Trading Securities	$	28,476	$	28,476	$	—	$	—
Derivative financial instruments, net	3,432		—		3,432		—


			Fair Value Measurement Using:
	Carrying Value December 25, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets (Liabilities):
Trading Securities	$	30,076	$	30,076	$	—	$	—

Derivative financial instruments, net	(4,007)