GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables)

3 Months Ended

Mar. 30, 2019

GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

Condensed Consolidated Statements of Earnings

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Thirteen weeks ended March 30, 2019

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	299,002		$	139,507		$	312,291		$	(58,661	)	$	692,139
Cost of sales	225,127			103,312			257,607			(59,036		)	527,010
Gross profit	73,875			36,195			54,684			375			165,129
Selling, general and administrative expenses	57,846			7,109			45,070			—			110,025
Operating income	16,029			29,086			9,614			375			55,104
Other income (expense):
Interest expense	(9,583		)	(3,541		)	(295		)	3,541			(9,878		)
Interest income	111			12			4,228			(3,541		)	810
Other	3,537			10			299						3,846
	(5,935		)	(3,519		)	4,232			—			(5,222		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	10,094			25,567			13,846			375			49,882
Income tax expense (benefit)	462			5,950			5,959			56			12,427
Earnings before equity in earnings of nonconsolidated subsidiaries	9,632			19,617			7,887			319			37,455
Equity in earnings of nonconsolidated subsidiaries	26,849			3,944			—			(30,793		)	—
Net earnings	36,481			23,561			7,887			(30,474		)	37,455
Less: Earnings attributable to noncontrolling interests	—			—			(974		)	—			(974		)
Net earnings attributable to Valmont Industries, Inc.	$	36,481		$	23,561		$	6,913		$	(30,474	)	$	36,481

GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

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)	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 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)	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 30, 2019

	Parent		Guarantors		Non- Guarantors			Eliminations			Total
Net earnings	$	36,481	$	23,561	$	7,887		$	(30,474	)	$	37,455
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—		5,629		(3,363		)	—			2,266
Gain (loss) on hedging activities	2,314		—		—			—			2,314
Equity in other comprehensive income	2,131		—		—			(2,131		)	—
Other comprehensive income (loss)	4,445		5,629		(3,363		)	(2,131		)	4,580
Comprehensive income (loss)	40,926		29,190		4,524			(32,605		)	42,035
Comprehensive income attributable to noncontrolling interests	—		—		(1,109		)	—			(1,109		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	40,926	$	29,190	$	3,415		$	(32,605	)	$	40,926

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
Gain (loss) on hedging activities	(863		)	—			—			—			(863		)
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

Condensed Consolidated Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS

March 30, 2019

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	58,146		$	7,731	$	145,360		$	—		$	211,237
Receivables, net	148,952			91,153		272,747			—			512,852
Inventories	133,792			38,993		225,041			(2,027		)	395,799
Contract asset - costs and profits in excess of billings	58,485			35,086		26,315			—			119,886
Prepaid expenses and other assets	12,288			13,079		29,012			—			54,379
Refundable income taxes	4,747			—		—			—			4,747
Total current assets	416,410			186,042		698,475			(2,027		)	1,298,900
Property, plant and equipment, at cost	590,577			188,120		417,936			—			1,196,633
Less accumulated depreciation and amortization	398,031			101,322		169,951			—			669,304
Net property, plant and equipment	192,546			86,798		247,985			—			527,329
Goodwill	20,108			140,775		256,113			—			416,996
Other intangible assets	63			47,561		145,273			—			192,897
Investment in subsidiaries and intercompany accounts	1,336,332			1,031,430		1,277,773			(3,645,535		)	—
Other assets	99,721			4,028		106,116			—			209,865
Total assets	$	2,065,180		$	1,496,634	$	2,731,735		$	(3,647,562	)	$	2,645,987
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	—		$	—	$	764		$	—		$	764
Notes payable to banks	—			—		19,816			—			19,816
Accounts payable	63,348			22,967		133,145			—			219,460
Accrued employee compensation and benefits	30,829			4,633		27,963			—			63,425
Accrued expenses	44,779			9,516		74,866			—			129,161
Dividends payable	8,213			—		—			—			8,213
Total current liabilities	147,169			37,116		256,554			—			440,839
Deferred income taxes	18,505			—		27,935			—			46,440
Long-term debt, excluding current installments	734,114			125,685		7,515			(125,685		)	741,629
Defined benefit pension liability	—			—		133,761			—			133,761
Other noncurrent liabilities	87,127			3,440		61,536			—			152,103
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	2,049,438			634,175		810,599			(1,444,774		)	2,049,438
Accumulated other comprehensive income (loss)	(298,740		)	75,362		(375,333		)	299,971			(298,740		)
Treasury stock	(700,333		)	—		—			—			(700,333		)
Total Valmont Industries, Inc. shareholders’ equity	1,078,265			1,330,393		2,191,484			(3,521,877		)	1,078,265
Noncontrolling interest in consolidated subsidiaries	—			—		52,950			—			52,950
Total shareholders’ equity	1,078,265			1,330,393		2,244,434			(3,521,877		)	1,131,215
Total liabilities and shareholders’ equity	$	2,065,180		$	1,496,634	$	2,731,735		$	(3,647,562	)	$	2,645,987

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

CONDENSED CONSOLIDATED BALANCE SHEETS

December 29, 2018

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	104,256		$	5,518	$	203,436		$	—		$	313,210
Receivables, net	134,943			75,204		273,816			—			483,963
Inventories	138,158			37,019		210,791			(2,402		)	383,566
Contract asset - costs and profits in excess of billings	50,271			35,200		27,054			—			112,525
Prepaid expenses and other assets	21,858			746		20,196			—			42,800
Refundable income taxes	4,576			—		—			—			4,576
Total current assets	454,062			153,687		735,293			(2,402		)	1,340,640
Property, plant and equipment, at cost	579,046			172,050		409,769			—			1,160,865
Less accumulated depreciation and amortization	390,438			93,374		163,061			—			646,873
Net property, plant and equipment	188,608			78,676		246,708			—			513,992
Goodwill	20,108			110,562		254,537			—			385,207
Other intangible assets	76			27,452		148,428			—			175,956
Investment in subsidiaries and intercompany accounts	1,286,545			1,161,612		932,982			(3,381,139		)	—
Other assets	47,674			—		66,805			—			114,479
Total assets	$	1,997,073		$	1,531,989	$	2,384,753		$	(3,383,541	)	$	2,530,274
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	—		$	—	$	779		$	—		$	779
Notes payable to banks	—			—		10,678			—			10,678
Accounts payable	68,304			21,081		128,730			—			218,115
Accrued employee compensation and benefits	41,418			7,186		30,687			—			79,291
Accrued expenses	25,936			10,132		55,874			—			91,942
Dividends payable	8,230			—		—			—			8,230
Total current liabilities	143,888			38,399		226,748			—			409,035
Deferred income taxes	14,376			—		29,113			—			43,489
Long-term debt, excluding current installments	733,964			166,729		7,858			(166,729		)	741,822
Defined benefit pension liability	—			—		143,904			—			143,904
Other noncurrent liabilities	45,083			620		10,798			—			56,501
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	2,027,596			624,394		467,699			(1,092,093		)	2,027,596
Accumulated other comprehensive income	(303,185		)	80,991		(333,346		)	252,355			(303,185		)
Treasury stock	(692,549		)	—		—			—			(692,549		)
Total Valmont Industries, Inc. shareholders’ equity	1,059,762			1,326,241		1,890,571			(3,216,812		)	1,059,762
Noncontrolling interest in consolidated subsidiaries	—			—		75,761			—			75,761
Total shareholders’ equity	1,059,762			1,326,241		1,966,332			(3,216,812		)	1,135,523
Total liabilities and shareholders’ equity	$	1,997,073		$	1,531,989	$	2,384,753		$	(3,383,541	)	$	2,530,274

Condensed Consolidated Statements of Cash Flows

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Thirteen weeks ended March 30, 2019

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	36,481		$	23,561		$	7,887		$	(30,474	)	$	37,455
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	6,476			3,390			10,387			—			20,253
Noncash gain on trading securities	—			—			87			—			87
Stock-based compensation	3,670			—			—			—			3,670
Defined benefit pension plan benefit	—			—			(132		)	—			(132		)
Contribution to defined benefit pension plan	—			—			(13,943		)	—			(13,943		)
Loss (gain) on sale of property, plant and equipment	132			(2		)	(357		)	—			(227		)
Equity in earnings in nonconsolidated subsidiaries	(26,849		)	(3,944		)	—			30,793			—
Deferred income taxes	5,320			—			4,342			—			9,662
Changes in assets and liabilities:
Net working capital	(8,136		)	(28,699		)	(6,621		)	(374		)	(43,830		)
Other noncurrent liabilities	2,046			(5,461		)	3,181			—			(234		)
Income taxes payable (refundable)	(1,440		)	(1,819		)	(1,589		)	—			(4,848		)
Net cash flows from operating activities	17,700			(12,974		)	3,242			(55		)	7,913
Cash flows from investing activities:
Purchase of property, plant and equipment	(10,214		)	(1,854		)	(9,041		)	—			(21,109		)
Proceeds from sale of assets	1			2			419			—			422
Acquisitions, net of cash acquired	—			(57,106		)	—			—			(57,106		)
Settlement of net investment hedge	—			—			—			—			—
Other, net	(60,869		)	69,124			(9,977		)	55			(1,667		)
Net cash flows from investing activities	(71,082		)	10,166			(18,599		)	55			(79,460		)
Cash flows from financing activities:
Proceeds from short-term agreements	—			—			9,327			—			9,327
Proceeds from long-term borrowings	10,000			—			—			—			10,000
Principal payments on long-term borrowings	(10,000		)	—			(194		)	—			(10,194		)
Principal payments on long-term intercompany note	—			(42,575		)	42,575			—			—
Dividends paid	(8,213		)	—			—			—			(8,213		)
Dividends to noncontrolling interest	—			—			(838		)	—			(838		)
Intercompany dividends	60,845			47,541			(108,386		)	—			—
Purchase of noncontrolling interest	(23,082		)	—			—			—			(23,082		)
Intercompany capital contribution	(13,284		)	—			13,284			—			—
Purchase of treasury shares	(9,421		)	—			—			—			(9,421		)
Proceeds from exercises under stock plans	1,174			—			—			—			1,174
Purchase of common treasury shares - stock plan exercises	(747		)	—			—			—			(747		)
Net cash flows from financing activities	7,272			4,966			(44,232		)	—			(31,994		)
Effect of exchange rate changes on cash and cash equivalents	—			55			1,513			—			1,568
Net change in cash and cash equivalents	(46,110		)	2,213			(58,076		)	—			(101,973		)
Cash and cash equivalents—beginning of year	104,256			5,518			203,436			—			313,210
Cash and cash equivalents—end of period	$	58,146		$	7,731		$	145,360		$	—		$	211,237

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

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:
Net working capital	(8,850		)	(21,761		)	(7,529		)	(1,148		)	(39,288		)
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		)
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:
Payments 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		)
Purchase of treasury shares	(14,790		)	—			—			—			(14,790		)
Intercompany capital contribution	(3,492		)	3,492			—			—			—
Proceeds from exercises under stock plans	2,972			—			—			—			2,972
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