GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables)

6 Months Ended

Jul. 01, 2017

GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

Condensed Consolidated Statements of Earnings

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Thirteen weeks ended July 1, 2017

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	316,185		$	122,359		$	328,016		$	(53,823	)	$	712,737
Cost of sales	233,535			91,374			259,158			(54,610		)	529,457
Gross profit	82,650			30,985			68,858			787			183,280
Selling, general and administrative expenses	46,922			11,849			46,219			—			104,990
Operating income	35,728			19,136			22,639			787			78,290
Other income (expense):
Interest expense	(10,646		)	(3,785		)	(172		)	3,785			(10,818		)
Interest income	144			10			4,598			(3,785		)	967
Other	1,167			15			(1,214		)	—			(32		)
	(9,335		)	(3,760		)	3,212			—			(9,883		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	26,393			15,376			25,851			787			68,407
Income tax expense (benefit):
Current	15,344			4,782			7,444			233			27,803
Deferred	(5,788		)	—			(930		)	—			(6,718		)
	9,556			4,782			6,514			233			21,085
Earnings before equity in earnings of nonconsolidated subsidiaries	16,837			10,594			19,337			554			47,322
Equity in earnings of nonconsolidated subsidiaries	28,827			6,296			—			(35,123		)	—
Net earnings	45,664			16,890			19,337			(34,569		)	47,322
Less: Earnings attributable to noncontrolling interests	—			—			(1,658		)	—			(1,658		)
Net earnings attributable to Valmont Industries, Inc	$	45,664		$	16,890		$	17,679		$	(34,569	)	$	45,664

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

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Twenty-six Weeks Ended July 1, 2017

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	609,450		$	239,584		$	623,312		$	(122,136	)	$	1,350,210
Cost of sales	450,021			182,863			491,648			(122,207		)	1,002,325
Gross profit	159,429			56,721			131,664			71			347,885
Selling, general and administrative expenses	97,139			23,509			84,445			—			205,093
Operating income	62,290			33,212			47,219			71			142,792
Other income (expense):
Interest expense	(21,788		)	(6,051		)	(334		)	6,051			(22,122		)
Interest income	295			24			7,626			(6,051		)	1,894
Other	2,521			31			(1,385		)	—			1,167
	(18,972		)	(5,996		)	5,907			—			(19,061		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	43,318			27,216			53,126			71			123,731
Income tax expense (benefit):
Current	10,457			10,102			8,553			(11		)	29,101
Deferred	5,539			—			1,808			—			7,347
	15,996			10,102			10,361			(11		)	36,448
Earnings before equity in earnings of nonconsolidated subsidiaries	27,322			17,114			42,765			82			87,283
Equity in earnings of nonconsolidated subsidiaries	57,321			5,316			—			(62,637		)	—
Net earnings	84,643			22,430			42,765			(62,555		)	87,283
Less: Earnings attributable to noncontrolling interests	—			—			(2,640		)	—			(2,640		)
Net earnings attributable to Valmont Industries, Inc	$	84,643		$	22,430		$	40,125		$	(62,555	)	$	84,643

Condensed Consolidated Statements of Comprehensive Income

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirteen weeks ended July 1, 2017

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net earnings	$	45,664		$	16,890		$	19,337		$	(34,569	)	$	47,322
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—			(1,359		)	22,910			—			21,551
Unrealized gain/(loss) on hedging activities:
Net investment hedge	(550		)	—			—			—			(550		)
Amortization cost included in interest expense	18			—			—			—			18
Equity in other comprehensive income	20,986			—			—			(20,986		)	—
Other comprehensive income (loss)	20,454			(1,359		)	22,910			(20,986		)	21,019
Comprehensive income (loss)	66,118			15,531			42,247			(55,555		)	68,341
Comprehensive income attributable to noncontrolling interests	—			—			(2,223		)	—			(2,223		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	66,118		$	15,531		$	40,024		$	(55,555	)	$	66,118

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Twenty-six Weeks Ended July 1, 2017

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
Net earnings	$	84,643		$	22,430	$	42,765		$	(62,555	)	$	87,283
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—			68,024		(27,083		)	—			40,941
Unrealized gain/(loss) on hedging activities:
Net investment hedge	(1,076		)			—			—			(1,076		)
Amortization cost included in interest expense	37			—		—			—			37
Equity in other comprehensive income	41,599			—		—			(41,599		)	—
Other comprehensive income (loss)	40,560			68,024		(27,083		)	(41,599		)	39,902
Comprehensive income (loss)	125,203			90,454		15,682			(104,154		)	127,185
Comprehensive income attributable to noncontrolling interests	—			—		(1,982		)	—			(1,982		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	125,203		$	90,454	$	13,700		$	(104,154	)	$	125,203

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirteen weeks ended June 25, 2016

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
Net earnings	$	42,026		$	16,524	$	20,888		$	(35,996	)	$	43,442
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	2,925			29		(5,250		)	—			(2,296		)
Unrealized gain/(loss) on hedging activities:
Amortization cost included in interest expense	19			—		—			—			19
Equity in other comprehensive income	(5,592		)	—		—			5,592			—
Other comprehensive income (loss)	(2,648		)	29		(5,250		)	5,592			(2,277		)
Comprehensive income (loss)	39,378			16,553		15,638			(30,404		)	41,165
Comprehensive income attributable to noncontrolling interests	—			—		(1,787		)	—			(1,787		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	39,378		$	16,553	$	13,851		$	(30,404	)	$	39,378

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Twenty-six Weeks Ended June 25, 2016

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net earnings	$	74,995		$	26,187		$	32,539		$	(56,108	)	$	77,613
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	2,925			(149		)	(2,559		)	—			217
Unrealized gain/(loss) on hedging activities:
Amortization cost included in interest expense	38			—			—			—			38
Equity in other comprehensive income	(1,279		)	—			—			1,279			—
Other comprehensive income (loss)	1,684			(149		)	(2,559		)	1,279			255
Comprehensive income (loss)	76,679			26,038			29,980			(54,829		)	77,868
Comprehensive income attributable to noncontrolling interests	—			—			(4,114		)	—			(4,114		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	76,679		$	26,038		$	25,866		$	(54,829	)	$	73,754

Condensed Consolidated Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS

July 1, 2017

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	94,099		$	4,422	$	349,701		$	—		$	448,222
Receivables, net	144,846			80,026		272,090			—			496,962
Inventories	137,534			43,536		205,800			(4,222		)	382,648
Prepaid expenses, restricted cash, and other assets	6,141			814		36,590			—			43,545
Refundable income taxes	4,830			—		—			—			4,830
Total current assets	387,450			128,798		864,181			(4,222		)	1,376,207
Property, plant and equipment, at cost	554,027			156,700		437,755			—			1,148,482
Less accumulated depreciation and amortization	364,591			81,154		182,630			—			628,375
Net property, plant and equipment	189,436			75,546		255,125			—			520,107
Goodwill	20,108			110,562		199,038			—			329,708
Other intangible assets	157			33,454		107,946			—			141,557
Investment in subsidiaries and intercompany accounts	1,367,336			1,155,599		1,021,205			(3,544,140		)	—
Other assets	47,042			—		108,541			—			155,583
Total assets	$	2,011,529		$	1,503,959	$	2,556,036		$	(3,548,362	)	$	2,523,162
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	—		$	—	$	921		$	—		$	921
Notes payable to banks	—			—		376			—			376
Accounts payable	55,029			10,891		127,167			—			193,087
Accrued employee compensation and benefits	33,624			6,088		29,232			—			68,944
Accrued expenses	33,217			10,745		58,285			—			102,247
Dividends payable	8,472			—		—			—			8,472
Total current liabilities	130,342			27,724		215,981			—			374,047
Deferred income taxes	18,958			—		13,684			—			32,642
Long-term debt, excluding current installments	751,041			182,193		10,057			(188,855		)	754,436
Defined benefit pension liability	—			—		194,517			—			194,517
Deferred compensation	42,492			—		5,307			—			47,799
Other noncurrent liabilities	4,447			5		12,823			—			17,275
Shareholders’ equity:
Common stock of $1 par value	27,900			457,950		648,682			(1,106,632		)	27,900
Additional paid-in capital	—			163,199		1,107,536			(1,270,735		)	—
Retained earnings	1,945,874			669,177		617,796			(1,286,973		)	1,945,874
Accumulated other comprehensive income (loss)	(305,799		)	3,711		(308,544		)	304,833			(305,799		)
Treasury stock	(603,726		)	—		—			—			(603,726		)
Total Valmont Industries, Inc. shareholders’ equity	1,064,249			1,294,037		2,065,470			(3,359,507		)	1,064,249
Noncontrolling interest in consolidated subsidiaries	—			—		38,197			—			38,197
Total shareholders’ equity	1,064,249			1,294,037		2,103,667			(3,359,507		)	1,102,446
Total liabilities and shareholders’ equity	$	2,011,529		$	1,503,959	$	2,556,036		$	(3,548,362	)	$	2,523,162

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

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2016

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	67,225		$	6,071		$	326,652		$	—		$	399,948
Receivables, net	134,351			60,522			244,469			—			439,342
Inventories	126,669			45,457			182,056			(4,154		)	350,028
Prepaid expenses	13,271			880			43,146			—			57,297
Refundable income taxes	6,601			—			—			—			6,601
Total current assets	348,117			112,930			796,323			(4,154		)	1,253,216
Property, plant and equipment, at cost	547,076			153,596			405,064			—			1,105,736
Less accumulated depreciation and amortization	352,960			76,776			157,665			—			587,401
Net property, plant and equipment	194,116			76,820			247,399			—			518,335
Goodwill	20,108			110,561			190,441			—			321,110
Other intangible assets	184			35,953			108,241			—			144,378
Investment in subsidiaries and intercompany accounts	1,279,413			901,758			1,089,369			(3,270,540		)	—
Other assets	43,880			—			110,812			—			154,692
Total assets	$	1,885,818		$	1,238,022		$	2,542,585		$	(3,274,694	)	$	2,391,731
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	—		$	—		$	851		$	—		$	851
Notes payable to banks	—			—			746			—			746
Accounts payable	52,272			15,732			109,484			—			177,488
Accrued employee compensation and benefits	34,508			7,243			30,653			—			72,404
Accrued expenses	30,261			15,242			44,411			—			89,914
Dividends payable	8,445			—			—			—			8,445
Total current liabilities	125,486			38,217			186,145			—			349,848
Deferred income taxes	22,481			—			13,322			—			35,803
Long-term debt, excluding current installments	751,251			—			3,544			—			754,795
Defined benefit pension liability	—			—			209,470			—			209,470
Deferred compensation	39,476			—			4,843			—			44,319
Other noncurrent liabilities	3,642			5			11,263			—			14,910
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	1,874,722			646,749			603,338			(1,250,087		)	1,874,722
Accumulated other comprehensive income	(346,359		)	(64,313		)	(284,663		)	348,976			(346,359		)
Treasury stock	(612,781		)	—			—			—			(612,781		)
Total Valmont Industries, Inc. shareholders’ equity	943,482			1,199,800			2,074,894			(3,274,694		)	943,482
Noncontrolling interest in consolidated subsidiaries	—			—			39,104			—			39,104
Total shareholders’ equity	943,482			1,199,800			2,113,998			(3,274,694		)	982,586
Total liabilities and shareholders’ equity	$	1,885,818		$	1,238,022		$	2,542,585		$	(3,274,694	)	$	2,391,731

Condensed Consolidated Statements of Cash Flows

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Twenty-six Weeks Ended July 1, 2017

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	84,643		$	22,430		$	42,765		$	(62,555	)	$	87,283
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	13,048			7,113			21,593			—			41,754
Noncash loss on trading securities	—			—			188			—			188
Stock-based compensation	4,590			—			—			—			4,590
Defined benefit pension plan expense	—			—			314			—			314
Contribution to defined benefit pension plan	—			—			(25,379		)	—			(25,379		)
Decrease in restricted cash - pension plan trust	—			—			12,568			—			12,568
Loss (gain) on sale of property, plant and equipment	(20		)	—			(44		)	—			(64		)
Equity in earnings in nonconsolidated subsidiaries	(57,321		)	(5,316		)	—			62,637			—
Deferred income taxes	5,539			—			1,808			—			7,347
Changes in assets and liabilities:
Receivables	(8,746		)	(19,504		)	(21,166		)	—			(49,416		)
Inventories	(10,866		)	1,921			(16,087		)	69			(24,963		)
Prepaid expenses and other assets	259			66			(6,217		)	—			(5,892		)
Accounts payable	2,757			(4,841		)	12,799			—			10,715
Accrued expenses	2,073			(5,652		)	8,831			—			5,252
Other noncurrent liabilities	874			—			1,099			—			1,973
Income taxes payable (refundable)	(7,737		)	542			9,223			—			2,028
Net cash flows from operating activities	29,093			(3,241		)	42,295			151			68,298
Cash flows from investing activities:
Purchase of property, plant and equipment	(8,126		)	(3,351		)	(14,706		)	—			(26,183		)
Proceeds from sale of assets	21			11			858			—			890
Proceeds from settlement of net investment hedge	5,123			—			—			—			5,123
Other, net	(8,313		)	6,604			(607		)	(151		)	(2,467		)
Net cash flows from investing activities	(11,295		)	3,264			(14,455		)	(151		)	(22,637		)
Cash flows from financing activities:
Net borrowings under short-term agreements	—			—			(369		)	—			(369		)
Principal payments on long-term borrowings				—			(434		)	—			(434		)
Dividends paid	(16,913		)	—			—			—			(16,913		)
Dividends to noncontrolling interest	—						(2,889		)	—			(2,889		)
Intercompany dividends	22,662			—			(22,662		)	—			—
Intercompany interest on long-term note	—			(5,669		)	5,669			—			—
Intercompany capital contribution	(3,785		)	3,785			—			—			—
Proceeds from exercises under stock plans	10,168			—			—			—			10,168
Purchase of common treasury shares - stock plan exercises	(3,056		)	—			—			—			(3,056		)
Net cash flows from financing activities	9,076			(1,884		)	(20,685		)	—			(13,493		)
Effect of exchange rate changes on cash and cash equivalents	—			212			15,894			—			16,106
Net change in cash and cash equivalents	26,874			(1,649		)	23,049			—			48,274
Cash and cash equivalents—beginning of year	67,225			6,071			326,652			—			399,948
Cash and cash equivalents—end of period	$	94,099		$	4,422		$	349,701		$	—		$	448,222

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Twenty-six Weeks Ended June 25, 2016

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	74,995		$	26,187		$	32,539		$	(56,108	)	$	77,613
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	13,705			6,591			20,508			—			40,804
Noncash loss on trading securities	—			—			1,035			—			1,035
Stock-based compensation	4,201			—			—			—			4,201
Defined benefit pension plan expense	—			—			959			—			959
Contribution to defined benefit pension plan	—			—			(712		)	—			(712		)
Increase in restricted cash - pension plan trust	—			—			(13,652		)	—			(13,652		)
Loss (gain) on sale of property, plant and equipment	(6		)	60			1,020			—			1,074
Equity in earnings in nonconsolidated subsidiaries	(47,218		)	(7,859		)	—			55,077			—
Deferred income taxes	3,487			—			(1,272		)	—			2,215
Changes in assets and liabilities:
Receivables	386			8,185			(5,629		)	—			2,942
Inventories	(8,757		)	(164		)	(21,974		)	1,560			(29,335		)
Prepaid expenses	(1,504		)	35			(3,390		)	—			(4,859		)
Accounts payable	(13,469		)	(79		)	14,978			—			1,430
Accrued expenses	(4,040		)	(6,158		)	(3,438		)	—			(13,636		)
Other noncurrent liabilities	868			5			(546		)	—			327
Income taxes payable (refundable)	19,033			(16,499		)	6,982			—			9,516
Net cash flows from operating activities	41,681			10,304			27,408			529			79,922
Cash flows from investing activities:
Purchase of property, plant and equipment	(1,240		)	(13,167		)	(11,612		)	—			(26,019		)
Proceeds from sale of assets	58			141			1,628			—			1,827
Other, net	918			2,641			(4,638		)	(529		)	(1,608		)
Net cash flows from investing activities	(264		)	(10,385		)	(14,622		)	(529		)	(25,800		)
Cash flows from financing activities:
Net borrowings under short-term agreements	—			—			2,593			—			2,593
Principal payments on long-term borrowings	(215		)	—			(444		)	—			(659		)
Dividends paid	(17,098		)	—			—			—			(17,098		)
Dividends to noncontrolling interest	—			—			(1,923		)	—			(1,923		)
Purchase of noncontrolling interest	(137		)	—			(10,872		)	—			(11,009		)
Proceeds from exercises under stock plans	5,975			—			—			—			5,975
Purchase of treasury shares	(28,621		)	—			—			—			(28,621		)
Purchase of common treasury shares - stock plan exercises	(1,453		)	—			—			—			(1,453		)
Net cash flows from financing activities	(41,549		)	—			(10,646		)	—			(52,195		)
Effect of exchange rate changes on cash and cash equivalents	—			95			(6,750		)	—			(6,655		)
Net change in cash and cash equivalents	(132		)	14			(4,610		)	—			(4,728		)
Cash and cash equivalents—beginning of year	62,281			4,008			282,785			—			349,074
Cash and cash equivalents—end of period	$	62,149		$	4,022		$	278,175		$	—		$	344,346