GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables)

3 Months Ended

Mar. 31, 2018

GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

Condensed Consolidated Statements of Earnings

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Thirteen weeks ended March 31, 2018

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	315,992		$	121,171		$	332,136		$	(70,615	)	$	698,684
Cost of sales	235,596			94,459			271,716			(72,327		)	529,444
Gross profit	80,396			26,712			60,420			1,712			169,240
Selling, general and administrative expenses	46,531			11,917			46,832			—			105,280
Operating income	33,865			14,795			13,588			1,712			63,960
Other income (expense):
Interest expense	(10,881		)	(3,880		)	(193		)	3,880			(11,074		)
Interest income	176			10			4,961			(3,880		)	1,267
Other	(106		)	12			(1,047		)	—			(1,141		)
	(10,811		)	(3,858		)	3,721			—			(10,948		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	23,054			10,937			17,309			1,712			53,012
Income tax expense (benefit):
Current	2,769			886			3,921			137			7,713
Deferred	5,591			1,791			(2,563		)	—			4,819
	8,360			2,677			1,358			137			12,532
Earnings before equity in earnings of nonconsolidated subsidiaries	14,694			8,260			15,951			1,575			40,480
Equity in earnings of nonconsolidated subsidiaries	24,587			2,729			—			(27,316		)	—
Net earnings	39,281			10,989			15,951			(25,741		)	40,480
Less: Earnings attributable to noncontrolling interests	—			—			(1,199		)	—			(1,199		)
Net earnings attributable to Valmont Industries, Inc	$	39,281		$	10,989		$	14,752		$	(25,741	)	$	39,281

Condensed Consolidated Statements of Comprehensive Income

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirteen weeks ended March 31, 2018

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net earnings	$	39,281		$	10,989		$	15,951		$	(25,741	)	$	40,480
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—			(8,680		)	15,484			—			6,804
Unrealized gain/(loss) on hedging activities:
Net investment hedge	(789		)	—			—			—			(789		)
Amortization cost included in interest expense	19			—			—			—			19
Cash flow hedges	(93		)	—			—			—			(93		)
Equity in other comprehensive income	3,256			—			—			(3,256		)	—
Other comprehensive income (loss)	2,393			(8,680		)	15,484			(3,256		)	5,941
Comprehensive income (loss)	41,674			2,309			31,435			(28,997		)	46,421
Comprehensive income attributable to noncontrolling interests	—			—			(4,747		)	—			(4,747		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	41,674		$	2,309		$	26,688		$	(28,997	)	$	41,674

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirteen weeks ended April 1, 2017

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
Net earnings	$	38,979		$	5,540	$	23,428		$	(27,986	)	$	39,961
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—			69,383		(49,993		)	—			19,390
Unrealized gain/(loss) on hedging activities:
Net investment hedge	(526		)	—		—			—			(526		)
Amortization cost included in interest expense	19			—		—			—			19
Equity in other comprehensive income	20,613			—		—			(20,613		)	—
Other comprehensive income (loss)	20,106			69,383		(49,993		)	(20,613		)	18,883
Comprehensive income (loss)	59,085			74,923		(26,565		)	(48,599		)	58,844
Comprehensive income attributable to noncontrolling interests	—			—		241			—			241
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	59,085		$	74,923	$	(26,324	)	$	(48,599	)	$	59,085

Condensed Consolidated Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS

March 31, 2018

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	71,423		$	3,409	$	404,831		$	—		$	479,663
Receivables, net	139,677			67,545		259,788			—			467,010
Inventories	135,973			38,734		197,998			(2,700		)	370,005
Prepaid expenses and other assets	42,926			37,527		46,798			—			127,251
Assets held for sale	—			—		72,665			—			72,665
Refundable income taxes	6,749			—		—			—			6,749
Total current assets	396,748			147,215		982,080			(2,700		)	1,523,343
Property, plant and equipment, at cost	560,719			165,996		410,437			—			1,137,152
Less accumulated depreciation and amortization	374,716			87,080		171,644			—			633,440
Net property, plant and equipment	186,003			78,916		238,793			—			503,712
Goodwill	20,108			110,562		197,204			—			327,874
Other intangible assets	117			30,057		99,366			—			129,540
Investment in subsidiaries and intercompany accounts	1,430,127			1,178,134		947,570			(3,555,831		)	—
Other assets	50,467			—		83,128			—			133,595
Total assets	$	2,083,570		$	1,544,884	$	2,548,141		$	(3,558,531	)	$	2,618,064
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	—		$	—	$	951		$	—		$	951
Notes payable to banks	—			—		377			—			377
Accounts payable	51,996			14,047		124,859			—			190,902
Accrued employee compensation and benefits	33,685			5,623		28,620			—			67,928
Accrued expenses	37,633			6,571		48,447			—			92,651
Liabilities held for sale	—			—		12,960			—			12,960
Dividends payable	8,493			—		—			—			8,493
Total current liabilities	131,807			26,241		216,214			—			374,262
Deferred income taxes	925			16,883		21,861			—			39,669
Long-term debt, excluding current installments	750,705			182,065		9,601			(188,724		)	753,647
Defined benefit pension liability	—			—		195,490			—			195,490
Deferred compensation	42,988			—		5,609			—			48,597
Other noncurrent liabilities	11,904			5		9,134			—			21,043
Shareholders’ equity:
Common stock of $1 par value	27,900			457,950		648,682			(1,106,632		)	27,900
Additional paid-in capital	—			162,906		1,107,536			(1,270,442		)	—
Retained earnings	1,996,474			633,032		630,982			(1,264,014		)	1,996,474
Accumulated other comprehensive income (loss)	(276,629		)	65,802		(337,083		)	271,281			(276,629		)
Treasury stock	(602,504		)	—		—			—			(602,504		)
Total Valmont Industries, Inc. shareholders’ equity	1,145,241			1,319,690		2,050,117			(3,369,807		)	1,145,241
Noncontrolling interest in consolidated subsidiaries	—			—		40,115			—			40,115
Total shareholders’ equity	1,145,241			1,319,690		2,090,232			(3,369,807		)	1,185,356
Total liabilities and shareholders’ equity	$	2,083,570		$	1,544,884	$	2,548,141		$	(3,558,531	)	$	2,618,064

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

CONDENSED 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 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	(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

Condensed Consolidated Statements of Cash Flows

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Thirteen Weeks Ended March 31, 2018

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	39,281		$	10,989		$	15,951		$	(25,741	)	$	40,480
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	6,444			3,478			11,256			—			21,178
Noncash loss on trading securities	—			—			71			—			71
Impairment of property, plant and equipment	—			—			1,145			—			1,145
Stock-based compensation	2,775			—			—			—			2,775
Defined benefit pension plan expense	—			—			(594		)	—			(594		)
Contribution to defined benefit pension plan	—			—			(731		)	—			(731		)
Loss (gain) on sale of property, plant and equipment	—			4			(284		)	—			(280		)
Equity in earnings in nonconsolidated subsidiaries	(24,587		)	(2,729		)	—			27,316			—
Deferred income taxes	5,591			1,791			(2,563		)	—			4,819
Changes in assets and liabilities:
Receivables	10,407			15,450			3,937			—			29,794
Inventories	(934		)	4,089			(3,208		)	(1,148		)	(1,201		)
Prepaid expenses and other assets	2,202			(31,130		)	(3,097		)	—			(32,025		)
Accounts payable	(17,919		)	(3,992		)	(7,538		)	—			(29,449		)
Accrued expenses	(2,606		)	(6,178		)	2,377			—			(6,407		)
Other noncurrent liabilities	861			—			(421		)	—			440
Income taxes payable (refundable)	(7,862		)	(514		)	11,409			—			3,033
Net cash flows from operating activities	13,653			(8,742		)	27,710			427			33,048
Cash flows from investing activities:
Purchase of property, plant and equipment	(3,928		)	(5,241		)	(7,079		)	—			(16,248		)
Proceeds from sale of assets	5			—			709			—			714
Acquisitions, net of cash acquired	—			—			(4,800		)	—			(4,800		)
Loss from settlement of net investment hedge	(863		)	—			—			—			(863		)
Other, net	4,551			8,633			(14,539		)	(427		)	(1,782		)
Net cash flows from investing activities	(235		)	3,392			(25,709		)	(427		)	(22,979		)
Cash flows from financing activities:
Net borrowings under short-term agreements	—			—			219			—			219
Principal payments on long-term borrowings				—			(249		)	—			(249		)
Dividends paid	(8,510		)	—			—			—			(8,510		)
Dividends to noncontrolling interest	—			—			(1,281		)	—			(1,281		)
Purchase of noncontrolling interest	—			—			(5,510		)	—			(5,510		)
Intercompany capital contribution	(3,492		)	3,492			—			—			—
Proceeds from exercises under stock plans	2,972			—			—			—			2,972
Purchase of treasury shares	(14,790		)	—			—			—			(14,790		)
Purchase of common treasury shares - stock plan exercises	(1,504		)	—			—			—			(1,504		)
Net cash flows from financing activities	(25,324		)	3,492			(6,821		)	—			(28,653		)
Effect of exchange rate changes on cash and cash equivalents	—			(37		)	5,479			—			5,442
Net change in cash and cash equivalents	(11,906		)	(1,895		)	659			—			(13,142		)
Cash and cash equivalents—beginning of year	83,329			5,304			404,172			—			492,805
Cash and cash equivalents—end of period	$	71,423		$	3,409		$	404,831		$	—		$	479,663

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Thirteen Weeks Ended April 1, 2017

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	38,979		$	5,540		$	23,428		$	(27,986	)	$	39,961
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	6,536			3,557			10,734			—			20,827
Noncash loss on trading securities	—			—			70			—			70
Stock-based compensation	2,494			—			—			—			2,494
Defined benefit pension plan expense	—			—			154			—			154
Contribution to defined benefit pension plan	—			—			(25,379		)	—			(25,379		)
Loss (gain) on sale of property, plant and equipment	(5		)	(2		)	(95		)	—			(102		)
Equity in earnings in nonconsolidated subsidiaries	(28,494		)	980			—			27,514			—
Deferred income taxes	11,327			—			2,738			—			14,065
Changes in assets and liabilities:
Receivables	1,116			(13,699		)	(146		)	—			(12,729		)
Inventories	(17,105		)	(3,865		)	(14,563		)	716			(34,817		)
Prepaid expenses and other assets	3,688			27			(13,513		)	—			(9,798		)
Accounts payable	2,278			1,826			10,020			—			14,124
Accrued expenses	12,588			(3,697		)	5,129			—			14,020
Other noncurrent liabilities	848			—			(236		)	—			612
Income taxes payable (refundable)	(9,839		)	22			9,730			—			(87		)
Net cash flows from operating activities	24,411			(9,311		)	8,071			244			23,415
Cash flows from investing activities:
Purchase of property, plant and equipment	(4,547		)	(1,797		)	(7,824		)	—			(14,168		)
Proceeds from sale of assets	7			6			289			—			302
Other, net	8,474			12,586			(22,531		)	(244		)	(1,715		)
Net cash flows from investing activities	3,934			10,795			(30,066		)	(244		)	(15,581		)
Cash flows from financing activities:
Net borrowings under short-term agreements	—			—			198			—			198
Principal payments on long-term borrowings	—			—			(215		)	—			(215		)
Dividends paid	(8,445		)	—			—			—			(8,445		)
Intercompany interest on long-term note	—			(2,263		)	2,263			—			—
Dividends to noncontrolling interest	—			—			(422		)	—			(422		)
Proceeds from exercises under stock plans	8,894			—			—			—			8,894
Purchase of common treasury shares - stock plan exercises	(2,870		)	—			—			—			(2,870		)
Net cash flows from financing activities	(2,421		)	(2,263		)	1,824			—			(2,860		)
Effect of exchange rate changes on cash and cash equivalents	—			187			7,539			—			7,726
Net change in cash and cash equivalents	25,924			(592		)	(12,632		)	—			12,700
Cash and cash equivalents—beginning of year	67,225			6,071			339,220			—			412,516
Cash and cash equivalents—end of period	$	93,149		$	5,479		$	326,588		$	—		$	425,216