GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 30, 2017

GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

Condensed Consolidated Statements of Earnings

CONSOLIDATED STATEMENTS OF EARNINGS

For the Year ended December 30, 2017

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	1,200,181		$	485,448		$	1,312,214		$	(251,876	)	$	2,745,967
Cost of sales	898,799			375,383			1,042,199			(252,182		)	2,064,199
Gross profit	301,382			110,065			270,015			306			681,768
Selling, general and administrative expenses	192,182			47,955			175,199			—			415,336
Operating income	109,200			62,110			94,816			306			266,432
Other income (expense):
Interest expense	(43,642		)	(13,866		)	(1,003		)	13,866			(44,645		)
Interest income	838			42			17,723			(13,866		)	4,737
Other	5,681			58			(3,799		)	—			1,940
	(37,123		)	(13,766		)	12,921			—			(37,968		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	72,077			48,344			107,737			306			228,464
Income tax expense (benefit):
Current	29,407			17,928			18,920			135			66,390
Deferred	10,307			—			29,448			—			39,755
	39,714			17,928			48,368			135			106,145
Earnings before equity in earnings of nonconsolidated subsidiaries	32,363			30,416			59,369			171			122,319
Equity in earnings of nonconsolidated subsidiaries	83,877			22,146			—			(106,023		)	—
Net earnings	116,240			52,562			59,369			(105,852		)	122,319
Less: Earnings attributable to noncontrolling interests	—			—			(6,079		)	—			(6,079		)
Net earnings attributable to Valmont Industries, Inc	$	116,240		$	52,562		$	53,290		$	(105,852	)	$	116,240

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

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Year ended December 31, 2016

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	1,126,985		$	390,756		$	1,195,812		$	(191,877	)	$	2,521,676
Cost of sales	837,616			285,924			932,609			(190,716		)	1,865,433
Gross profit	289,369			104,832			263,203			(1,161		)	656,243
Selling, general and administrative expenses	184,493			46,244			182,002			—			412,739
Impairment of goodwill and intangible assets	—			—			—			—			—
Operating income	104,876			58,588			81,201			(1,161		)	243,504
Other income (expense):
Interest expense	(43,703		)	(10		)	(696		)	—			(44,409		)
Interest income	273			112			2,720			—			3,105
Other	1,480			77			16,697			—			18,254
	(41,950		)	179			18,721			—			(23,050		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	62,926			58,767			99,922			(1,161		)	220,454
Income tax expense (benefit):
Current	24,539			20,270			21,262			(323		)	65,748
Deferred	6,216			—			(29,901		)	—			(23,685		)
	30,755			20,270			(8,639		)	(323		)	42,063
Earnings before equity in earnings of nonconsolidated subsidiaries	32,171			38,497			108,561			(838		)	178,391
Equity in earnings of nonconsolidated subsidiaries	141,061			66,128			—			(207,189		)	—
Net earnings	173,232			104,625			108,561			(208,027		)	178,391
Less: Earnings attributable to noncontrolling interests	—			—			(5,159		)	—			(5,159		)
Net earnings attributable to Valmont Industries, Inc	$	173,232		$	104,625		$	103,402		$	(208,027	)	$	173,232

Condensed Consolidated Statements of Comprehensive Income

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Year ended December 30, 2017

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
Net earnings	$	116,240		$	52,562	$	59,369		$	(105,852	)	$	122,319
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gains (losses)	—			138,795		(59,516		)	—			79,279
Gain (loss) on hedging activity:
Unrealized gain (loss) on net investment hedge	(1,695		)	—		—			—			(1,695		)
Amortization cost included in interest expense	74			—		—			—			74
	(1,621		)	—		—			—			(1,621		)
Actuarial gain (loss) in defined benefit pension plan liability	—			—		(10,871		)	—			(10,871		)
Equity in other comprehensive income	68,958			—		—			(68,958		)	—
Other comprehensive income (loss)	67,337			138,795		(70,387		)	(68,958		)	66,787
Comprehensive income (loss)	183,577			191,357		(11,018		)	(174,810		)	189,106
Comprehensive income attributable to noncontrolling interests	—			—		(5,529		)	—			(5,529		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	183,577		$	191,357	$	(16,547	)	$	(174,810	)	$	183,577

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Year ended December 31, 2016

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
Net earnings	$	173,232		$	104,625	$	108,561		$	(208,027	)	$	178,391
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gains (losses)	—			49		(58,364		)	—			(58,315		)
	—			49		(58,364		)	—			(58,315		)
Gain (loss) on hedging activity:
Amortization cost included in interest expense	74			—		—			—			74
Unrealized gain on net investment hedge	4,226			—		—			—			4,226
	4,300			—		—			—			4,300
Actuarial gain (loss) in defined benefit pension plan liability	—			—		(24,141		)	—			(24,141		)
Equity in other comprehensive income	(83,252		)	—		—			83,252			—
Other comprehensive income (loss)	(78,952		)	49		(82,505		)	83,252			(78,156		)
Comprehensive income (loss)	94,280			104,674		26,056			(124,775		)	100,235
Comprehensive income attributable to noncontrolling interests	—			—		(6,144		)	—			(6,144		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	94,280		$	104,674	$	19,912		$	(124,775	)	$	94,091

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Year ended December 26, 2015

	Parent			Guarantors			Non- Guarantors			Eliminations		Total
Net earnings	$	40,117		$	(10,760	)	$	(11,241	)	$	27,217	$	45,333
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gains (losses)	—			(15,166		)	(81,528		)	—		(96,694		)
	—			(15,166		)	(81,528		)	—		(96,694		)
Gain (loss) on hedging activity:
Amortization cost included in interest expense	74			—			—			—		74
Realized (gain) loss included in net earnings	(3,130		)	—			—			—		(3,130		)
Unrealized gain on cash flow hedges	2,855			—			—			—		2,855
	(201		)	—			—			—		(201		)
Actuarial gain (loss) in defined benefit pension plan liability	—			—			(40,274		)	—		(40,274		)
Equity in other comprehensive income	(132,584		)	—			—			132,584		—
Other comprehensive income (loss)	(132,785		)	(15,166		)	(121,802		)	132,584		(137,169		)
Comprehensive income	(92,668		)	(25,926		)	(133,043		)	159,801		(91,836		)
Comprehensive income attributable to noncontrolling interests	—			—			(832		)	—		(832		)
Comprehensive income attributable to Valmont Industries, Inc.	$	(92,668	)	$	(25,926	)	$	(133,875	)	$	159,801	$	(92,668	)

Condensed Consolidated Balance Sheets

CONSOLIDATED BALANCE SHEETS

December 30, 2017

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	83,329		$	5,304	$	404,172		$	—		$	492,805
Receivables, net	149,221			82,995		271,461			—			503,677
Inventories	160,444			46,801		217,551			(3,848		)	420,948
Prepaid expenses, restricted cash, and other assets	8,607			970		34,066			—			43,643
Refundable income taxes	11,492			—		—			—			11,492
Total current assets	413,093			136,070		927,250			(3,848		)	1,472,565
Property, plant and equipment, at cost	557,371			160,767		447,549			—			1,165,687
Less accumulated depreciation and amortization	368,668			84,508		193,583			—			646,759
Net property, plant and equipment	188,703			76,259		253,966			—			518,928
Goodwill	20,108			110,562		207,050			—			337,720
Other intangible assets	130			30,955		107,514			—			138,599
Investment in subsidiaries and intercompany accounts	1,416,446			1,181,537		927,179			(3,525,162		)	—
Other assets	50,773			—		83,665			—			134,438
Total assets	$	2,089,253		$	1,535,383	$	2,506,624		$	(3,529,010	)	$	2,602,250
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	—		$	—	$	966		$	—		$	966
Notes payable to banks	—			—		161			—			161
Accounts payable	69,915			18,039		139,952			—			227,906
Accrued employee compensation and benefits	44,086			8,749		31,591			—			84,426
Accrued expenses	28,198			9,621		43,210			—			81,029
Dividends payable	8,510			—		—			—			8,510
Total current liabilities	150,709			36,409		215,880			—			402,998
Deferred income taxes	20,885			—		14,021			—			34,906
Long-term debt, excluding current installments	750,821			185,078		9,836			(191,847		)	753,888
Defined benefit pension liability	—			—		189,552			—			189,552
Deferred compensation	42,928			—		5,598			—			48,526
Other noncurrent liabilities	11,074			6		9,505			—			20,585
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	1,954,344			622,044		619,622			(1,241,666		)	1,954,344
Accumulated other comprehensive income (loss)	(279,022		)	74,482		(352,567		)	278,085			(279,022		)
Treasury stock	(590,386		)	—		—			—			(590,386		)
Total Valmont Industries, Inc. shareholders’ equity	1,112,836			1,313,890		2,023,273			(3,337,163		)	1,112,836
Noncontrolling interest in consolidated subsidiaries	—			—		38,959			—			38,959
Total shareholders’ equity	1,112,836			1,313,890		2,062,232			(3,337,163		)	1,151,795
Total liabilities and shareholders’ equity	$	2,089,253		$	1,535,383	$	2,506,624		$	(3,529,010	)	$	2,602,250

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

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2016

Condensed Consolidated Statements of Cash Flows

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Year ended December 30, 2017

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	116,240		$	52,562		$	59,369		$	(105,852	)	$	122,319
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	26,237			15,003			43,717			—			84,957
Noncash loss on trading securities	—			—			237			—			237
Decrease in restricted cash - pension plan trust	—			—			12,568			—			12,568
Stock-based compensation	10,706			—			—			—			10,706
Defined benefit pension plan expense (benefit)	—			—			648			—			648
Contribution to defined benefit pension plan	—			—			(40,245		)	—			(40,245		)
(Gain) loss on sale of property, plant and equipment	(664		)	8			(3,268		)	—			(3,924		)
Equity in earnings in nonconsolidated subsidiaries	(83,877		)	(22,146		)	—			106,023			—
Deferred income taxes	10,307			—			29,448			—			39,755
Changes in assets and liabilities (net of acquisitions):
Receivables	(13,120		)	(22,473		)	(13,519		)	—			(49,112		)
Inventories	(33,775		)	(1,345		)	(22,016		)	(306		)	(57,442		)
Prepaid expenses	(2,207		)	(90		)	(3,741		)	—			(6,038		)
Accounts payable	17,643			2,307			19,455			—			39,405
Accrued expenses	7,516			(4,116		)	(5,398		)	—			(1,998		)
Other noncurrent liabilities	(140		)	—			(7,088		)	—			(7,228		)
Income taxes payable (refundable)	(11,837		)	728			12,217			—			1,108
Net cash flows from operating activities	43,029			20,438			82,384			(135		)	145,716
Cash flows from investing activities:
Purchase of property, plant and equipment	(20,460		)	(9,454		)	(25,352		)	—			(55,266		)
Proceeds from sale of assets	748			3			7,434			—			8,185
Acquisitions, net of cash acquired	—			—			(5,362		)	—			(5,362		)
Proceeds from settlement of net investment hedge	5,123			—			—			—			5,123
Other, net	684			(22,777		)	19,663			135			(2,295		)
Net cash flows from investing activities	(13,905		)	(32,228		)	(3,617		)	135			(49,615		)
Cash flows from financing activities:
Payments under short-term agreements	—			—			(585		)	—			(585		)
Principal payments on long-term borrowings				—			(887		)	—			(887		)
Dividends paid	(33,862		)	—			—			—			(33,862		)
Dividends to noncontrolling interest	—			—			(5,674		)	—			(5,674		)
Intercompany dividends	22,662			—			(22,662		)	—			—
Intercompany capital contribution	(10,818		)	10,818									—
Proceeds from exercises under stock plans	35,159			—			—			—			35,159
Purchase of common treasury shares - stock plan exercises	(26,161		)	—			—			—			(26,161		)
Net cash flows from financing activities	(13,020		)	10,818			(29,808		)	—			(32,010		)
Effect of exchange rate changes on cash and cash equivalents	—			205			28,561			—			28,766
Net change in cash and cash equivalents	16,104			(767		)	77,520			—			92,857
Cash and cash equivalents—beginning of year	67,225			6,071			326,652			—			399,948
Cash and cash equivalents—end of period	$	83,329		$	5,304		$	404,172		$	—		$	492,805

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Year ended December 31, 2016

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	173,232		$	104,625		$	108,561		$	(208,027	)	$	178,391
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	27,096			13,316			42,005			—			82,417
Noncash loss on trading securities	—			—			586			—			586
Increase in restricted cash - pension plan trust	—			—			(13,652		)	—			(13,652		)
Impairment of property, plant and equipment	—			—			1,099			—			1,099
Stock-based compensation	9,931			—			—			—			9,931
Change in fair value of contingent consideration	—			—			(3,242		)	—			(3,242		)
Defined benefit pension plan expense (benefit)	—			—			1,870			—			1,870
Contribution to defined benefit pension plan	—			—			(1,488		)	—			(1,488		)
(Gain) loss on sale of property, plant and equipment	165			103			363			—			631
Equity in earnings in nonconsolidated subsidiaries	(141,061		)	(66,128		)	—			207,189			—
Deferred income taxes	6,216			—			(29,901		)	—			(23,685		)
Changes in assets and liabilities (net of acquisitions):
Receivables	(3,610		)	5,865			22,367			—			24,622
Inventories	5,554			(7,078		)	(11,097		)	1,160			(11,461		)
Prepaid expenses	(1,250		)	(114		)	2,502			—			1,138
Accounts payable	(14,452		)	2,052			12,504			—			104
Accrued expenses	1,423			(6,664		)	(6,966		)	—			(12,207		)
Other noncurrent liabilities	(2,333		)	5			(21,552		)	—			(23,880		)
Income taxes payable (refundable)	32,873			(16,567		)	(8,312		)	—			7,994
Net cash flows from operating activities	93,784			29,415			95,647			322			219,168
Cash flows from investing activities:
Purchase of property, plant and equipment	(9,031		)	(22,320		)	(26,569		)	—			(57,920		)
Proceeds from sale of assets	44			102			4,980			—			5,126
Other, net	(633		)	(5,085		)	5,785			(322		)	(255		)
Net cash flows from investing activities	(9,620		)	(27,303		)	(15,804		)	(322		)	(53,049		)
Cash flows from financing activities:
Payments under short-term agreements	—			—			(200		)	—			(200		)
Principal payments on long-term borrowings	(215		)	—			(1,791		)	—			(2,006		)
Dividends paid	(34,053		)	—			—			—			(34,053		)
Purchase of noncontrolling interest	—			—			(11,009		)	—			(11,009		)
Dividends to noncontrolling interest	—			—			(2,938		)	—			(2,938		)
Proceeds from exercises under stock plans	11,153			—			—			—			11,153
Purchase of treasury shares	(53,800		)	—			—			—			(53,800		)
Purchase of common treasury shares - stock plan exercises	(2,305		)	—			—			—			(2,305		)
Net cash flows from financing activities	(79,220		)	—			(15,938		)	—			(95,158		)
Effect of exchange rate changes on cash and cash equivalents	—			(49		)	(20,038		)	—			(20,087		)
Net change in cash and cash equivalents	4,944			2,063			43,867			—			50,874
Cash and cash equivalents—beginning of year	62,281			4,008			282,785			—			349,074
Cash and cash equivalents—end of period	$	67,225		$	6,071		$	326,652		$	—		$	399,948

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Year ended December 26, 2015