GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

The Company has three tranches of senior unsecured notes. All of the senior notes are guaranteed, jointly, severally, fully and unconditionally (subject to certain customary release provisions, including sale of the subsidiary guarantor, or sale of all or substantially all of its assets) by certain of the Company’s current and future direct and indirect domestic and foreign subsidiaries (collectively the “Guarantors”), excluding its other current domestic and foreign subsidiaries which do not guarantee the debt (collectively referred to as the “Non-Guarantors”). All Guarantors are 100% owned by the parent company.

Consolidated financial information for the Company ("Parent"), the Guarantor subsidiaries and the Non-Guarantor subsidiaries is as follows:

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Thirteen weeks ended March 26, 2016



	Parent			Guarantors		Non- Guarantors			Eliminations			Total
Net sales	$	285,038		$	91,526	$	272,114		$	(52,073	)	$	596,605
Cost of sales	207,861			67,862		211,393			(51,480		)	435,636
Gross profit	77,177			23,664		60,721			(593		)	160,969
Selling, general and administrative expenses	42,494			11,430		44,680			—			98,604
Operating income	34,683			12,234		16,041			(593		)	62,365
Other income (expense):
Interest expense	(10,930		)	—		(124		)	—			(11,054		)
Interest income	67			25		719			—			811
Other	(375		)	12		(1,315		)	—			(1,678		)
	(11,238		)	37		(720		)	—			(11,921		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	23,445			12,271		15,321			(593		)	50,444
Income tax expense (benefit):
Current	5,583			2,572		2,479			(120		)	10,514
Deferred	2,419			2,149		1,191			—			5,759
	8,002			4,721		3,670			(120		)	16,273
Earnings before equity in earnings of nonconsolidated subsidiaries	15,443			7,550		11,651			(473		)	34,171
Equity in earnings of nonconsolidated subsidiaries	17,526			2,113		—			(19,639		)	—
Net earnings	32,969			9,663		11,651			(20,112		)	34,171
Less: Earnings attributable to noncontrolling interests	—			—		(1,202		)	—			(1,202		)
Net earnings attributable to Valmont Industries, Inc	$	32,969		$	9,663	$	10,449		$	(20,112	)	$	32,969

(8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Thirteen weeks ended March 28, 2015



	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	329,131		$	95,948		$	302,236		$	(56,917	)	$	670,398
Cost of sales	249,867			74,896			236,985			(56,804		)	504,944
Gross profit	79,264			21,052			65,251			(113		)	165,454
Selling, general and administrative expenses	48,042			11,297			48,432			—			107,771
Operating income	31,222			9,755			16,819			(113		)	57,683
Other income (expense):
Interest expense	(10,832		)	—			(296		)	—			(11,128		)
Interest income	9			2			863			—			874
Other	(649		)	(24		)	1,689			—			1,016
	(11,472		)	(22		)	2,256			—			(9,238		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	19,750			9,733			19,075			(113		)	48,445
Income tax expense (benefit):
Current	1,392			4,627			5,797			(42		)	11,774
Deferred	5,469			(533		)	228			—			5,164
	6,861			4,094			6,025			(42		)	16,938
Earnings before equity in earnings of nonconsolidated subsidiaries	12,889			5,639			13,050			(71		)	31,507
Equity in earnings of nonconsolidated subsidiaries	17,850			4,305			—			(22,155		)	—
Net earnings	30,739			9,944			13,050			(22,226		)	31,507
Less: Earnings attributable to noncontrolling interests	—			—			(768		)	—			(768		)
Net earnings attributable to Valmont Industries, Inc	$	30,739		$	9,944		$	12,282		$	(22,226	)	$	30,739

(8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirteen weeks ended March 26, 2016



	Parent		Guarantors			Non- Guarantors			Eliminations			Total
Net earnings	$	32,969	$	9,663		$	11,651		$	(20,112	)	$	34,171
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—		(178		)	2,691			—			2,513
Unrealized loss on cash flow hedge:
Amortization cost included in interest expense	19		—			—			—			19
Equity in other comprehensive income	1,388		—			—			(1,388		)	—
Other comprehensive income (loss)	1,407		(178		)	2,691			(1,388		)	2,532
Comprehensive income (loss)	34,376		9,485			14,342			(21,500		)	36,703
Comprehensive income attributable to noncontrolling interests	—		—			(2,327		)	—			(2,327		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	34,376	$	9,485		$	12,015		$	(21,500	)	$	34,376

(8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirteen weeks ended March 28, 2015



	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net earnings	$	30,739		$	9,944		$	13,050		$	(22,226	)	$	31,507
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—			(8,888		)	(49,290		)	—			(58,178		)
Unrealized loss on cash flow hedge:
Amortization cost included in interest expense	18			—			—			—			18
Actuarial gain (loss) in defined benefit pension plan liability	92			—			202			—			294
Equity in other comprehensive income	(55,881		)	—			—			55,881			—
Other comprehensive income (loss)	(55,771		)	(8,888		)	(49,088		)	55,881			(57,866		)
Comprehensive income (loss)	(25,032		)	1,056			(36,038		)	33,655			(26,359		)
Comprehensive income attributable to noncontrolling interests	—			—			1,327			—			1,327
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	(25,032	)	$	1,056		$	(34,711	)	$	33,655		$	(25,032	)

(8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

CONDENSED CONSOLIDATED BALANCE SHEETS

March 26, 2016



	Parent			Guarantors			Non- Guarantors			Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	76,634		$	4,566		$	306,514		$	—		$	387,714
Receivables, net	128,713			54,384			266,282			—			449,379
Inventories	138,589			40,782			174,983			(3,586		)	350,768
Prepaid expenses	5,435			804			39,841			—			46,080
Refundable income taxes	18,897			—			—			—			18,897
Total current assets	368,268			100,536			787,620			(3,586		)	1,252,838
Property, plant and equipment, at cost	537,701			142,955			420,148			—			1,100,804
Less accumulated depreciation and amortization	338,782			74,063			155,452			—			568,297
Net property, plant and equipment	198,919			68,892			264,696			—			532,507
Goodwill	20,108			110,562			203,599			—			334,269
Other intangible assets	225			39,710			124,602			—			164,537
Investment in subsidiaries and intercompany accounts	1,250,625			837,066			1,096,458			(3,184,149		)	—
Other assets	39,645			—			76,066			—			115,711
Total assets	$	1,877,790		$	1,156,766		$	2,553,041		$	(3,187,735	)	$	2,399,862
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	215		$	—		$	895		$	—		$	1,110
Notes payable to banks	—			—			2,402			—			2,402
Accounts payable	58,622			14,148			110,289			—			183,059
Accrued employee compensation and benefits	21,357			4,665			31,980			—			58,002
Accrued expenses	42,241			16,752			52,484			—			111,477
Dividends payable	8,527			—			—			—			8,527
Total current liabilities	130,962			35,565			198,050			—			364,577
Deferred income taxes	15,874			—			23,770			—			39,644
Long-term debt, excluding current installments	751,541			—			5,337			—			756,878
Defined benefit pension liability	—			—			170,203			—			170,203
Deferred compensation	43,338			—			5,118			—			48,456
Other noncurrent liabilities	5,021			—			34,932			—			39,953
Shareholders’ equity:
Common stock of $1 par value	27,900			457,950			648,682			(1,106,632		)	27,900
Additional paid-in capital	—			159,414			1,107,536			(1,266,950		)	—
Retained earnings	1,756,082			568,377			513,246			(1,081,623		)	1,756,082
Accumulated other comprehensive income (loss)	(265,811		)	(64,540		)	(202,930		)	267,470			(265,811		)
Treasury stock	(587,117		)	—			—			—			(587,117		)
Total Valmont Industries, Inc. shareholders’ equity	931,054			1,121,201			2,066,534			(3,187,735		)	931,054
Noncontrolling interest in consolidated subsidiaries	—			—			49,097			—			49,097
Total shareholders’ equity	931,054			1,121,201			2,115,631			(3,187,735		)	980,151
Total liabilities and shareholders’ equity	$	1,877,790		$	1,156,766		$	2,553,041		$	(3,187,735	)	$	2,399,862

(8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

CONDENSED CONSOLIDATED BALANCE SHEETS

December 26, 2015



	Parent			Guarantors			Non- Guarantors			Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	62,281		$	4,008		$	282,785		$	—		$	349,074
Receivables, net	130,741			66,387			269,315			—			466,443
Inventories	132,222			38,379			173,064			(2,993		)	340,672
Prepaid expenses	9,900			766			35,471			—			46,137
Refundable income taxes	24,526			—			—			—			24,526
Total current assets	359,670			109,540			760,635			(2,993		)	1,226,852
Property, plant and equipment, at cost	541,536			132,864			406,656			—			1,081,056
Less accumulated depreciation and amortization	334,471			69,956			144,140			—			548,567
Net property, plant and equipment	207,065			62,908			262,516			—			532,489
Goodwill	20,108			110,562			206,246			—			336,916
Other intangible assets	238			40,959			129,000			—			170,197
Investment in subsidiaries and intercompany accounts	1,239,228			813,779			939,177			(2,992,184		)	—
Other assets	40,067			—			85,861			—			125,928
Total assets	$	1,866,376		$	1,137,748		$	2,383,435		$	(2,995,177	)	$	2,392,382
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	215		$	—		$	862		$	—		$	1,077
Notes payable to banks	—			—			976			—			976
Accounts payable	66,723			13,680			99,580			—			179,983
Accrued employee compensation and benefits	32,272			6,347			31,735			—			70,354
Accrued expenses	31,073			22,802			51,718			—			105,593
Dividends payable	8,571			—			—			—			8,571
Total current liabilities	138,854			42,829			184,871			—			366,554
Deferred income taxes	9,686			—			25,983			—			35,669
Long-term debt, excluding current installments	751,765			—			5,153			—			756,918
Defined benefit pension liability	—			—			179,323			—			179,323
Deferred compensation	43,485			—			4,932			—			48,417
Other noncurrent liabilities	4,145			—			36,145			—			40,290
Shareholders’ equity:
Common stock of $1 par value	27,900			457,950			648,683			(1,106,633		)	27,900
Additional paid-in capital	—			159,414			1,107,536			(1,266,950		)	—
Retained earnings	1,729,679			541,917			354,727			(896,644		)	1,729,679
Accumulated other comprehensive income	(267,218		)	(64,362		)	(210,688		)	275,050			(267,218		)
Treasury stock	(571,920		)	—			—			—			(571,920		)
Total Valmont Industries, Inc. shareholders’ equity	918,441			1,094,919			1,900,258			(2,995,177		)	918,441
Noncontrolling interest in consolidated subsidiaries	—			—			46,770			—			46,770
Total shareholders’ equity	918,441			1,094,919			1,947,028			(2,995,177		)	965,211
Total liabilities and shareholders’ equity	$	1,866,376		$	1,137,748		$	2,383,435		$	(2,995,177	)	$	2,392,382

(8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Thirteen Weeks Ended March 26, 2016



	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	32,969		$	9,663		$	11,651		$	(20,112	)	$	34,171
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	6,857			3,277			10,464			—			20,598
Noncash loss on trading securities	—			—			995			—			995
Stock-based compensation	2,049			—			—			—			2,049
Defined benefit pension plan expense	—			—			384			—			384
Loss (gain) on sale of property, plant and equipment	(3		)	52			95			—			144
Equity in earnings in nonconsolidated subsidiaries	(17,526		)	(2,113		)	—			19,639			—
Deferred income taxes	2,419			2,149			1,191			—			5,759
Changes in assets and liabilities:
Receivables	2,027			12,003			6,314			—			20,344
Inventories	(6,367		)	(2,403		)	155			593			(8,022		)
Prepaid expenses	4,465			(38		)	(3,517		)	—			910
Accounts payable	(8,102		)	468			9,017			—			1,383
Accrued expenses	843			(7,732		)	(289		)	—			(7,178		)
Other noncurrent liabilities	916			—			(1,739		)	—			(823		)
Income taxes payable (refundable)	5,628			85			4,100			—			9,813
Net cash flows from operating activities	26,175			15,411			38,821			120			80,527
Cash flows from investing activities:
Purchase of property, plant and equipment	1,248			(8,630		)	(6,579		)	—			(13,961		)
Proceeds from sale of assets	104			(51		)	89			—			142
Other, net	11,332			(6,286		)	(7,248		)	(120		)	(2,322		)
Net cash flows from investing activities	12,684			(14,967		)	(13,738		)	(120		)	(16,141		)
Cash flows from financing activities:
Net borrowings under short-term agreements	—			—			1,352			—			1,352
Principal payments on long-term borrowings	—			—			(220		)	—			(220		)
Dividends paid	(8,571		)	—			—			—			(8,571		)
Proceeds from exercises under stock plans	1,289			—			—			—			1,289
Excess tax benefits from stock option exercises	(66		)	—			—			—			(66		)
Purchase of treasury shares	(16,939		)	—			—			—			(16,939		)
Purchase of common treasury shares - stock plan exercises	(219		)	—			—			—			(219		)
Net cash flows from financing activities	(24,506		)	—			1,132			—			(23,374		)
Effect of exchange rate changes on cash and cash equivalents	—			114			(2,486		)	—			(2,372		)
Net change in cash and cash equivalents	14,353			558			23,729			—			38,640
Cash and cash equivalents—beginning of year	62,281			4,008			282,785			—			349,074
Cash and cash equivalents—end of period	$	76,634		$	4,566		$	306,514		$	—		$	387,714

(8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Thirteen Weeks Ended March 28, 2015



	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	30,739		$	9,944		$	13,050		$	(22,226	)	$	31,507
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	7,478			3,151			13,272			—			23,901
Loss on investment	—			—			4,415			—			4,415
Stock-based compensation	1,761			—			—			—			1,761
Defined benefit pension plan expense	—			—			(150		)	—			(150		)
Contribution to defined benefit pension plan	—			—			(15,735		)	—			(15,735		)
Gain on sale of property, plant and equipment	(13		)	(10		)	(113		)	—			(136		)
Equity in earnings in nonconsolidated subsidiaries	(17,850		)	(4,305		)	—			22,155			—
Deferred income taxes	5,469			(533		)	228			—			5,164
Changes in assets and liabilities:
Receivables	(4,779		)	6,595			16,768			—			18,584
Inventories	4,897			(10,307		)	(21,631		)	—			(27,041		)
Prepaid expenses	2,282			(251		)	2,923			—			4,954
Accounts payable	4,358			(1,442		)	(4,177		)	—			(1,261		)
Accrued expenses	(2,966		)	(1,001		)	(1,357		)	—			(5,324		)
Other noncurrent liabilities	1,834			—			(150		)	—			1,684
Income taxes payable (refundable)	6,252			(4		)	6,957			—			13,205
Net cash flows from operating activities	39,462			1,837			14,300			(71		)	55,528
Cash flows from investing activities:
Purchase of property, plant and equipment	(4,995		)	(1,492		)	(10,128		)	—			(16,615		)
Proceeds from sale of assets	15			19			151			—			185
Other, net	3,257			(1,130		)	732			71			2,930
Net cash flows from investing activities	(1,723		)	(2,603		)	(9,245		)	71			(13,500		)
Cash flows from financing activities:
Net borrowings under short-term agreements	—			—			1,155			—			1,155
Principal payments on long-term borrowings	—			—			(224		)	—			(224		)
Dividends paid	(9,086		)	—			—			—			(9,086		)
Dividends to noncontrolling interest	—			—			(1,290		)	—			(1,290		)
Proceeds from exercises under stock plans	1,760			—			—			—			1,760
Excess tax benefits from stock option exercises	345			—			—			—			345
Purchase of treasury shares	(72,900		)	—			—			—			(72,900		)
Purchase of common treasury shares - stock plan exercises	(2,156		)	—			—			—			(2,156		)
Net cash flows from financing activities	(82,037		)	—			(359		)	—			(82,396		)
Effect of exchange rate changes on cash and cash equivalents	—			(24		)	(12,821		)	—			(12,845		)
Net change in cash and cash equivalents	(44,298		)	(790		)	(8,125		)	—			(53,213		)
Cash and cash equivalents—beginning of year	69,869			2,157			299,553			—			371,579
Cash and cash equivalents—end of period	$	25,571		$	1,367		$	291,428		$	—		$	318,366