GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables)

6 Months Ended

Jun. 29, 2019

GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

Condensed Consolidated Statements of Earnings

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Thirteen weeks ended June 29, 2019

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	313,973		$	138,151		$	316,517		$	(67,770	)	$	700,871
Cost of sales	226,017			107,331			254,331			(67,222		)	520,457
Gross profit	87,956			30,820			62,186			(548		)	180,414
Selling, general and administrative expenses	49,788			18,867			48,047			—			116,702
Operating income	38,168			11,953			14,139			(548		)	63,712
Other income (expense):
Interest expense	(9,584		)	(2,498		)	(534		)	2,499			(10,117		)
Interest income	342			18			3,175			(2,499		)	1,036
Other	1,878			11			(213		)	—			1,676
	(7,364		)	(2,469		)	2,428			—			(7,405		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	30,804			9,484			16,567			(548		)	56,307
Income tax expense (benefit)	7,310			1,907			4,791			(47		)	13,961
Earnings before equity in earnings of nonconsolidated subsidiaries	23,494			7,577			11,776			(501		)	42,346
Equity in earnings of nonconsolidated subsidiaries	17,903			2,882			—			(20,785		)	—
Net earnings	41,397			10,459			11,776			(21,286		)	42,346
Less: Earnings attributable to noncontrolling interests	—			—			(949		)	—			(949		)
Net earnings attributable to Valmont Industries, Inc.	$	41,397		$	10,459		$	10,827		$	(21,286	)	$	41,397

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Twenty-six Weeks Ended June 29, 2019

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	612,975		$	277,658		$	628,808		$	(126,431	)	$	1,393,010
Cost of sales	451,144			210,643			511,938			(126,258		)	1,047,467
Gross profit	161,831			67,015			116,870			(173		)	345,543
Selling, general and administrative expenses	107,634			25,976			93,117			—			226,727
Operating income	54,197			41,039			23,753			(173		)	118,816
Other income (expense):
Interest expense	(19,167		)	(6,039		)	(829		)	6,040			(19,995		)
Interest income	453			30			7,403			(6,040		)	1,846
Other	5,415			21			86			—			5,522
	(13,299		)	(5,988		)	6,660			—			(12,627		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	40,898			35,051			30,413			(173		)	106,189
Income tax expense (benefit)	7,772			7,857			10,750			9			26,388
Earnings before equity in earnings of nonconsolidated subsidiaries	33,126			27,194			19,663			(182		)	79,801
Equity in earnings of nonconsolidated subsidiaries	44,752			6,826			—			(51,578		)	—
Net earnings	77,878			34,020			19,663			(51,760		)	79,801
Less: Earnings attributable to noncontrolling interests	—			—			(1,923		)	—			(1,923		)
Net earnings attributable to Valmont Industries, Inc.	$	77,878		$	34,020		$	17,740		$	(51,760	)	$	77,878

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Thirteen weeks ended June 30, 2018

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	297,916		$	133,563		$	315,499		$	(64,573	)	$	682,405
Cost of sales	220,677			98,649			252,185			(64,105		)	507,406
Gross profit	77,239			34,914			63,314			(468		)	174,999
Selling, general and administrative expenses	50,259			12,535			48,535			—			111,329
Operating income	26,980			22,379			14,779			(468		)	63,670
Other income (expense):
Interest expense	(11,396		)	(3,749		)	(395		)	3,749			(11,791		)
Interest income	305			5			4,885			(3,749		)	1,446
Loss from divestiture of grinding media business	(2,518		)	—			(3,566		)	—			(6,084		)
Other	616			14			1,214			—			1,844
	(12,993		)	(3,730		)	2,138			—			(14,585		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	13,987			18,649			16,917			(468		)	49,085
Income tax expense (benefit)	2,318			4,851			7,285			(49		)	14,405
Earnings before equity in earnings of nonconsolidated subsidiaries	11,669			13,798			9,632			(419		)	34,680
Equity in earnings of nonconsolidated subsidiaries	21,291			31,169			—			(52,460		)	—
Net earnings	32,960			44,967			9,632			(52,879		)	34,680
Less: Earnings attributable to noncontrolling interests	—			—			(1,720		)	—			(1,720		)
Net earnings attributable to Valmont Industries, Inc.	$	32,960		$	44,967		$	7,912		$	(52,879	)	$	32,960

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Twenty-six weeks ended June 30, 2018

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	613,908		$	254,734		$	647,635		$	(135,188	)	$	1,381,089
Cost of sales	456,273			193,108			523,901			(136,432		)	1,036,850
Gross profit	157,635			61,626			123,734			1,244			344,239
Selling, general and administrative expenses	96,790			24,452			95,367			—			216,609
Operating income	60,845			37,174			28,367			1,244			127,630
Other income (expense):
Interest expense	(22,277		)	(7,629		)	(588		)	7,629			(22,865		)
Interest income	481			15			9,846			(7,629		)	2,713
Loss from divestiture of grinding media business	(2,518		)	—			(3,566		)	—			(6,084		)
Other	510			26			167			—			703
	(23,804		)	(7,588		)	5,859			—			(25,533		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	37,041			29,586			34,226			1,244			102,097
Income tax expense (benefit)	10,678			7,528			8,643			88			26,937
Earnings before equity in earnings of nonconsolidated subsidiaries	26,363			22,058			25,583			1,156			75,160
Equity in earnings of nonconsolidated subsidiaries	45,878			33,898			—			(79,776		)	—
Net earnings	72,241			55,956			25,583			(78,620		)	75,160
Less: Earnings attributable to noncontrolling interests	—			—			(2,919		)	—			(2,919		)
Net earnings attributable to Valmont Industries, Inc.	$	72,241		$	55,956		$	22,664		$	(78,620	)	$	72,241

Condensed Consolidated Statements of Comprehensive Income

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirteen weeks ended June 29, 2019

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net earnings	$	41,397		$	10,459		$	11,776		$	(21,286	)	$	42,346
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—			(9,850		)	10,899			—			1,049
Gain (loss) on hedging activities	(5,347		)	—			—			—			(5,347		)
Equity in other comprehensive income	1,015			—			—			(1,015		)	—
Other comprehensive income (loss)	(4,332		)	(9,850		)	10,899			(1,015		)	(4,298		)
Comprehensive income (loss)	37,065			609			22,675			(22,301		)	38,048
Comprehensive income attributable to noncontrolling interests	—			—			(983		)	—			(983		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	37,065		$	609		$	21,692		$	(22,301	)	$	37,065

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Twenty-six weeks ended June 29, 2019

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net earnings	$	77,878		$	34,020		$	19,663		$	(51,760	)	$	79,801
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—			(4,221		)	7,536			—			3,315
Gain (loss) on hedging activities	(3,033		)	—			—			—			(3,033		)
Equity in other comprehensive income	3,146			—			—			(3,146		)	—
Other comprehensive income (loss)	113			(4,221		)	7,536			(3,146		)	282
Comprehensive income (loss)	77,991			29,799			27,199			(54,906		)	80,083
Comprehensive income attributable to noncontrolling interests	—			—			(2,092		)	—			(2,092		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	77,991		$	29,799		$	25,107		$	(54,906	)	$	77,991

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirteen weeks ended June 30, 2018

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
Net earnings	$	32,960		$	44,967	$	9,632		$	(52,879	)	$	34,680
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—			6,513		(53,466		)	—			(46,953		)
Realized loss on divestiture of grinding media             business recorded in earnings	—			—		9,203			—			9,203
Gain (loss) on hedging activities	2,607			—		—			—			2,607
Equity in other comprehensive income	(37,144		)	—		—			37,144			—
Other comprehensive income (loss)	(34,537		)	6,513		(44,263		)	37,144			(35,143		)
Comprehensive income (loss)	(1,577		)	51,480		(34,631		)	(15,735		)	(463		)
Comprehensive income attributable to noncontrolling interests	—			—		(1,114		)	—			(1,114		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	(1,577	)	$	51,480	$	(35,745	)	$	(15,735	)	$	(1,577	)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Twenty-six Weeks Ended June 30, 2018

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net earnings	$	72,241		$	55,956		$	25,583		$	(78,620	)	$	75,160
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—			(2,167		)	(37,982		)	—			(40,149		)
Realized loss on divestiture of grinding media             business recorded in earnings	—			—			9,203			—			9,203
Gain (loss) on hedging activities	1,744			—			—			—			1,744
Equity in other comprehensive income	(33,888		)	—			—			33,888			—
Other comprehensive income (loss)	(32,144		)	(2,167		)	(28,779		)	33,888			(29,202		)
Comprehensive income (loss)	40,097			53,789			(3,196		)	(44,732		)	45,958
Comprehensive income attributable to noncontrolling interests	—			—			(5,861		)	—			(5,861		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	40,097		$	53,789		$	(9,057	)	$	(44,732	)	$	40,097

Condensed Consolidated Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS

June 29, 2019

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	87,608		$	5,615	$	163,721		$	—		$	256,944
Receivables, net	152,234			88,774		266,053			—			507,061
Inventories	141,709			44,033		223,380			(2,576		)	406,546
Contract asset - costs and profits in excess of billings	61,754			38,180		23,992			—			123,926
Prepaid expenses and other assets	6,757			8,736		29,449			—			44,942
Refundable income taxes	8,579			—		—			—			8,579
Total current assets	458,641			185,338		706,595			(2,576		)	1,347,998
Property, plant and equipment, at cost	601,146			192,902		431,790			—			1,225,838
Less accumulated depreciation and amortization	405,799			98,864		177,618			—			682,281
Net property, plant and equipment	195,347			94,038		254,172			—			543,557
Goodwill	20,108			140,924		263,156			—			424,188
Other intangible assets	49			47,206		141,759			—			189,014
Investment in subsidiaries and intercompany accounts	1,359,065			1,097,380		840,064			(3,296,509		)	—
Other assets	94,400			4,029		108,553			—			206,982
Total assets	$	2,127,610		$	1,568,915	$	2,314,299		$	(3,299,085	)	$	2,711,739
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	—		$	—	$	774		$	—		$	774
Notes payable to banks	—			—		20,375			—			20,375
Accounts payable	67,877			21,285		138,975			—			228,137
Accrued employee compensation and benefits	32,552			4,856		28,315			—			65,723
Accrued expenses	101,998			11,746		61,328			(909		)	174,163
Dividends payable	8,129			—		—			—			8,129
Total current liabilities	210,556			37,887		249,767			(909		)	497,301
Deferred income taxes	14,402			—		29,372			—			43,774
Long-term debt, excluding current installments	734,265			124,233		31,293			(124,233		)	765,558
Defined benefit pension liability	—			—		130,210			—			130,210
Other noncurrent liabilities	86,645			3,214		58,023			—			147,882
Shareholders’ equity:
Common stock of $1 par value	27,900			457,950		648,957			(1,106,907		)	27,900
Additional paid-in capital	—			162,906		1,107,536			(1,270,442		)	—
Retained earnings	2,085,594			705,955		390,062			(1,096,017		)	2,085,594
Accumulated other comprehensive income (loss)	(303,072		)	76,770		(376,193		)	299,423			(303,072		)
Treasury stock	(728,680		)	—		—			—			(728,680		)
Total Valmont Industries, Inc. shareholders’ equity	1,081,742			1,403,581		1,770,362			(3,173,943		)	1,081,742
Noncontrolling interest in consolidated subsidiaries	—			—		45,272			—			45,272
Total shareholders’ equity	1,081,742			1,403,581		1,815,634			(3,173,943		)	1,127,014
Total liabilities and shareholders’ equity	$	2,127,610		$	1,568,915	$	2,314,299		$	(3,299,085	)	$	2,711,739

(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 Twenty-six weeks ended June 29, 2019

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	77,878		$	34,020		$	19,663		$	(51,760	)	$	79,801
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	13,094			6,888			20,601			—			40,583
Noncash gain on trading securities	—			—			28			—			28
Stock-based compensation	6,370			—			—			—			6,370
Defined benefit pension plan benefit	—			—			(259		)	—			(259		)
Contribution to defined benefit pension plan	—			—			(13,682		)	—			(13,682		)
Loss (gain) on sale of property, plant and equipment	132			44			(454		)	—			(278		)
Equity in earnings in nonconsolidated subsidiaries	(44,752		)	(6,826		)	—			51,578			—
Deferred income taxes	1,317			—			4,393			—			5,710
Changes in assets and liabilities:
Net working capital	15,058			(29,557		)	22,001			175			7,677
Other noncurrent liabilities	3,596			(5,461		)	(3,717		)	—			(5,582		)
Income taxes payable (refundable)	(265		)	(1,819		)	(3,938		)	(909		)	(6,931		)
Net cash flows from operating activities	72,428			(2,711		)	44,636			(916		)	113,437
Cash flows from investing activities:
Purchase of property, plant and equipment	(26,526		)	(3,213		)	(19,571		)	—			(49,310		)
Proceeds from sale of assets	6			38			422			—			466
Acquisitions, net of cash acquired	—			(63,141		)	(18,700		)	—			(81,841		)
Settlement of net investment hedge	11,184			—			—			—			11,184
Other, net	(68,443		)	64,103			7,317			916			3,893
Net cash flows from investing activities	(83,779		)	(2,213		)	(30,532		)	916			(115,608		)
Cash flows from financing activities:
Proceeds from short-term agreements	—			—			9,886			—			9,886
Proceeds from long-term borrowings	31,000			—			—			—			31,000
Principal payments on long-term borrowings	(10,000		)	—			(386		)	—			(10,386		)
Principal payments on long-term intercompany note	—			(42,574		)	42,574			—			—
Dividends paid	(16,425		)	—			—			—			(16,425		)
Dividends to noncontrolling interest	—			—			(4,459		)	—			(4,459		)
Intercompany dividends	63,650			47,541			(111,191		)	—			—
Purchase of noncontrolling interest	(22,805		)	—			(5,040		)	—			(27,845		)
Intercompany capital contribution	(13,284		)	—			13,284			—			—
Purchase of treasury shares	(38,350		)	—			—			—			(38,350		)
Proceeds from exercises under stock plans	1,744			—			—			—			1,744
Purchase of common treasury shares - stock plan exercises	(827		)	—			—			—			(827		)
Net cash flows from financing activities	(5,297		)	4,967			(55,332		)	—			(55,662		)
Effect of exchange rate changes on cash and cash equivalents	—			54			1,513			—			1,567
Net change in cash and cash equivalents	(16,648		)	97			(39,715		)	—			(56,266		)
Cash and cash equivalents—beginning of year	104,256			5,518			203,436			—			313,210
Cash and cash equivalents—end of period	$	87,608		$	5,615		$	163,721		$	—		$	256,944

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Twenty-six weeks ended June 30, 2018

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	72,241		$	55,956		$	25,583		$	(78,620	)	$	75,160
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	12,871			7,063			21,723			—			41,657
Noncash loss on trading securities	—			—			229			—			229
Impairment of property, plant and equipment	—			—			2,791			—			2,791
Loss on divestiture of grinding media business	2,518			—			3,566			—			6,084
Stock-based compensation	5,374			—			—			—			5,374
Defined benefit pension plan expense	—			—			(1,159		)	—			(1,159		)
Contribution to defined benefit pension plan	—			—			(731		)	—			(731		)
Loss (gain) on sale of property, plant and equipment	10			(7		)	(290		)	—			(287		)
Equity in earnings in nonconsolidated subsidiaries	(45,878		)	(33,898		)	—			79,776			—
Deferred income taxes	3,343			1,791			(2,634		)	—			2,500
Changes in assets and liabilities:
Net working capital	(15,781		)	(43,990		)	(12,177		)	(1,244		)	(73,192		)
Other noncurrent liabilities	640			—			(1,120		)	—			(480		)
Income taxes payable (refundable)	(11,054		)	(843		)	7,609			—			(4,288		)
Net cash flows from operating activities	24,284			(13,928		)	43,390			(88		)	53,658
Cash flows from investing activities:
Purchase of property, plant and equipment	(10,051		)	(6,770		)	(14,995		)	—			(31,816		)
Proceeds from sale of assets	5			209			64,179			—			64,393
Acquisitions, net of cash acquired	—			—			(9,300		)	—			(9,300		)
Settlement of net investment hedge	(1,621		)	—			—			—			(1,621		)
Other, net	6,335			13,752			(17,771		)	88			2,404
Net cash flows from investing activities	(5,332		)	7,191			22,113			88			24,060
Cash flows from financing activities:
Payments under short-term agreements	—			—			130			—			130
Proceeds from long-term borrowings	237,641			—			—			—			237,641
Principal payments on long-term borrowings	—			—			(495		)	—			(495		)
Settlement of financial derivative	(2,467		)	—			—			—			(2,467		)
Debt issuance costs	(2,322		)	—			—			—			(2,322		)
Dividends paid	(17,003		)	—			—			—			(17,003		)
Dividends to noncontrolling interest	—			—			(4,852		)	—			(4,852		)
Intercompany dividends	75,325			11,296			(86,621		)	—			—
Purchase of noncontrolling interest	—			—			(5,510		)	—			(5,510		)
Purchase of treasury shares	(43,999		)	—			—			—			(43,999		)
Intercompany capital contribution	(3,492		)	3,492			—			—			—
Proceeds from exercises under stock plans	5,711			—			—			—			5,711
Purchase of common treasury shares - stock plan exercises	(1,769		)	—			—			—			(1,769		)
Net cash flows from financing activities	247,625			14,788			(97,348		)	—			165,065
Effect of exchange rate changes on cash and cash equivalents	—			(657		)	(12,343		)	—			(13,000		)
Net change in cash and cash equivalents	266,577			7,394			(44,188		)	—			229,783
Cash and cash equivalents—beginning of year	83,329			5,304			404,172			—			492,805
Cash and cash equivalents—end of period	$	349,906		$	12,698		$	359,984		$	—		$	722,588