VALMONT INDUSTRIES INC Leases Disclosure
(19) LEASES
The Company is a lessee in noncancellable operating leases for plant locations, corporate and sales offices, and certain equipment. The Company does not have any finance leases. At the inception of a contract, or when an existing contract is modified, the Company determines if the arrangement constitutes a lease based on whether it conveys the right to use an identified asset and whether the Company obtains substantially all of the economic benefits from, and has the ability to direct the use of, the asset.
At lease commencement, the Company recognizes a lease liability and a right-of-use (“ROU”) asset, based on the present value of lease payments over the lease term. ROU assets represent the right to use the underlying asset for the lease term, while lease liabilities represent the Company’s obligation to make lease payments. The Company uses its collateralized incremental borrowing rate to calculate the present value of future lease payments. ROU assets are adjusted for any lease payments, incentives, or impairments. Lease costs are recognized on a straight-line basis over the lease term.
The Company's operating lease ROU assets are included in “Operating lease right-of-use assets” and the corresponding lease obligations are included in “Other accrued expenses” and “Operating lease liabilities” in the Consolidated Balance Sheets.
The Company has elected not to separate lease and non-lease components in all asset classes and does not recognize ROU assets and lease liabilities for short-term leases with a term of 12 months or less. As of December 27, 2025, the remaining terms of the Company’s operating leases range from one year to twenty-one years, with certain leases offering renewal options of up to ten years. For facilities where lease terms include renewal options that are reasonably certain to be exercised, the extended term is included in the lease term.
The following table provides supplemental balance sheet information related to operating leases as of December 27, 2025 and December 28, 2024:
Consolidated Balance | December 27, | December 28, | ||||||
Sheets location | 2025 | | 2024 | |||||
Operating lease ROU assets |
| Operating lease right-of-use assets | $ | 139,857 | $ | 146,916 | ||
Current portion of operating lease liabilities |
|
| 21,818 |
| 22,446 | |||
Long-term operating lease liabilities |
| Operating lease liabilities |
| 130,007 |
| 134,534 | ||
Total operating lease liabilities | $ | 151,825 | $ | 156,980 | ||||
Lease costs and other information related to the Company’s operating leases as of and for the fiscal years ended December 27, 2025 and December 28, 2024 were as follows:
| December 27, | December 28, | ||||
2025 | 2024 | |||||
Operating lease cost | $ | 33,269 | $ | 30,154 | ||
Cash paid related to operating lease liabilities | $ | 32,749 | $ | 29,603 | ||
ROU assets obtained in exchange for lease liabilities | 23,577 | 10,613 | ||||
Weighted-average remaining lease term |
| |||||
Weighted-average discount rate | 4.6% |
| 4.6% | |||
Total lease cost also includes approximately $4,700 for short-term lease costs and approximately $7,500 for variable lease costs in fiscal 2025 which are excluded from operating lease cost above.
Maturities of operating lease liabilities as of December 27, 2025 were as follows:
2026 | $ | 28,148 | |
2027 |
| 23,058 | |
2028 |
| 19,231 | |
2029 |
| 15,879 | |
2030 |
| 14,300 | |
Thereafter |
| 103,955 | |
Total lease payments | 204,571 | ||
Less: Present value adjustment | 52,746 | ||
Present value of lease liabilities | $ | 151,825 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 26, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.