Guarantor/Non-Guarantor Financial Information (Tables)

6 Months Ended

Jun. 25, 2011

Guarantor/Non-Guarantor Financial Information

Condensed Consolidated Statements of Operations

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Thirteen Weeks Ended June 25, 2011

		Parent			Guarantors			Non-Guarantors			Eliminations			Total
Net sales		$	302,497		$	87,273		$	324,846		$	(46,007	)	$	668,609
Cost of sales			223,712			68,513			254,565			(46,163	)		500,627
	Gross profit		78,785			18,760			70,281			156			167,982
Selling, general and administrative expenses			41,144			11,510			46,709			—			99,363
	Operating income		37,641			7,250			23,572			156			68,619
Other income (expense):
	Interest expense		(10,676	)		—			(107	)		—			(10,783	)
	Interest income		39			—			1,962			—			2,001
	Other		(179	)		19			664			—			504
			(10,816	)		19			2,519			—			(8,278	)
Earnings before income taxes and equity in earnings/(losses) of nonconsolidated subsidiaries			26,825			7,269			26,091			156			60,341
Income tax expense (benefit):
	Current		12,863			3,172			8,498			—			24,533
	Deferred		(3,970	)		(707	)		(6,305	)		—			(10,982	)
			8,893			2,465			2,193			—			13,551
Earnings before equity in earnings/(losses) of nonconsolidated subsidiaries			17,932			4,804			23,898			156			46,790
Equity in earnings/(losses) of nonconsolidated subsidiaries			27,895			13,970			1,234			(41,898	)		1,201
Net Earnings			45,827			18,774			25,132			(41,742	)		47,991
Less: Earnings attributable to noncontrolling interests			—			—			(2,164	)		—			(2,164	)
	Net Earnings attributable to Valmont Industries, Inc.	$	45,827		$	18,774		$	22,968		$	(41,742	)	$	45,827

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Twenty-six Weeks Ended June 25, 2011

		Parent			Guarantors			Non-Guarantors			Eliminations			Total
Net sales		$	565,143		$	161,114		$	594,915		$	(84,614	)	$	1,236,558
Cost of sales			422,015			126,819			467,950			(84,701	)		932,083
	Gross profit		143,128			34,295			126,965			87			304,475
Selling, general and administrative expenses			78,253			22,261			90,041			—			190,555
	Operating income		64,875			12,034			36,924			87			113,920
Other income (expense):
	Interest expense		(18,855	)		—			(189	)		—			(19,044	)
	Interest income		34			—			3,744			—			3,778
	Other		192			30			672			—			894
			(18,629	)		30			4,227			—			(14,372	)
Earnings before income taxes and equity in earnings/(losses) of nonconsolidated subsidiaries			46,246			12,064			41,151			87			99,548
Income tax expense (benefit):
	Current		19,352			5,276			12,409			—			37,037
	Deferred		(3,910	)		(968	)		(5,320	)		—			(10,198	)
			15,442			4,308			7,089			—			26,839
Earnings before equity in earnings/(losses) of nonconsolidated subsidiaries			30,804			7,756			34,062			87			72,709
Equity in earnings/(losses) of nonconsolidated subsidiaries			40,632			20,337			2,120			(60,934	)		2,155
Net Earnings			71,436			28,093			36,182			(60,847	)		74,864
Less: Earnings attributable to noncontrolling interests			—			—			(3,428	)		—			(3,428	)
	Net Earnings attributable to Valmont Industries, Inc.	$	71,436		$	28,093		$	32,754		$	(60,847	)	$	71,436

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Thirteen Weeks Ended June 26, 2010

		Parent			Guarantors			Non-Guarantors			Eliminations			Total
Net sales		$	217,433		$	68,299		$	228,568		$	(32,741	)	$	481,559
Cost of sales			161,324			51,803			172,746			(32,960	)		352,913
	Gross profit		56,109			16,496			55,822			219			128,646
Selling, general and administrative expenses			46,088			11,206			34,051			—			91,345
	Operating income		10,021			5,290			21,771			219			37,301
Other income (expense):
	Interest expense		(7,929	)		(187	)		(313	)		—			(8,429	)
	Interest income		101			27			964			—			1,092
	Other		64			(525	)		508			—			47
			(7,764	)		(685	)		1,159			—			(7,290	)
Earnings before income taxes and equity in earnings/(losses) of nonconsolidated subsidiaries			2,257			4,605			22,930			219			30,011
Income tax expense (benefit):
	Current		8,240			1,766			7,246			—			17,252
	Deferred		(4,503	)		(256	)		(811	)		—			(5,570	)
			3,737			1,510			6,435			—			11,682
Earnings before equity in earnings/(losses) of nonconsolidated subsidiaries			(1,480	)		3,095			16,495			219			18,329
Equity in earnings/(losses) of nonconsolidated subsidiaries			18,595			4,326			362			(22,478	)		805
Net Earnings			17,115			7,421			16,857			(22,259	)		19,134
Less: Earnings attributable to noncontrolling interests			—			—			(2,019	)		—			(2,019	)
	Net Earnings attributable to Valmont Industries, Inc.	$	17,115		$	7,421		$	14,838		$	(22,259	)	$	17,115

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Twenty-six Weeks Ended June 26, 2010

		Parent			Guarantors			Non-Guarantors			Eliminations			Total
Net sales		$	416,521		$	132,763		$	360,060		$	(60,383	)	$	848,961
Cost of sales			308,597			100,732			271,289			(61,033	)		619,585
	Gross profit		107,924			32,031			88,771			650			229,376
Selling, general and administrative expenses			81,780			22,639			56,006			—			160,425
	Operating income		26,144			9,392			32,765			650			68,951
Other income (expense):
	Interest expense		(13,683	)		(187	)		(521	)		—			(14,391	)
	Interest income		112			27			1,309			—			1,448
	Other		222			(500	)		248			—			(30	)
			(13,349	)		(660	)		1,036			—			(12,973	)
Earnings before income taxes and equity in earnings/(losses) of nonconsolidated subsidiaries			12,795			8,732			33,801			650			55,978
Income tax expense (benefit):
	Current		11,043			3,360			9,555			—			23,958
	Deferred		(2,918	)		(285	)		373			—			(2,830	)
			8,125			3,075			9,928			—			21,128
Earnings before equity in earnings/(losses) of nonconsolidated subsidiaries			4,670			5,657			23,873			650			34,850
Equity in earnings/(losses) of nonconsolidated subsidiaries			28,908			4,326			362			(32,677	)		919
Net Earnings			33,578			9,983			24,235			(32,027	)		35,769
Less: Earnings attributable to noncontrolling interests			—			—			(2,191	)		—			(2,191	)
	Net Earnings attributable to Valmont Industries, Inc.	$	33,578		$	9,983		$	22,044		$	(32,027	)	$	33,578

Condensed Consolidated Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS
June 25, 2011

			Parent			Guarantors		Non-Guarantors			Eliminations			Total
ASSETS
Current assets:
	Cash and cash equivalents		$	8,269		$	481	$	318,040		$	—		$	326,790
	Receivables, net			122,808			47,872		282,386			—			453,066
	Inventories			105,230			47,349		213,606			—			366,185
	Prepaid expenses			4,748			977		25,137			—			30,862
	Refundable and deferred income taxes			15,971			3,662		15,217			—			34,850
		Total current assets		257,026			100,341		854,386			—			1,211,753
Property, plant and equipment, at cost				416,545			104,750		385,411			—			906,706
	Less accumulated depreciation and amortization			277,747			52,703		128,239			—			458,689
		Net property, plant and equipment		138,798			52,047		257,172			—			448,017
Goodwill				20,108			107,542		194,700			—			322,350
Other intangible assets				742			65,334		116,664			—			182,740
Investment in subsidiaries and intercompany accounts				1,245,517			604,337		(7,420	)		(1,842,434	)		—
Other assets				29,584			—		28,836			—			58,420
		Total assets	$	1,691,775		$	929,601	$	1,444,338		$	(1,842,434	)	$	2,223,280
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Current installments of long-term debt		$	187		$	—	$	85		$	—		$	272
	Notes payable to banks			—			—		11,415			—			11,415
	Accounts payable			73,698			18,304		145,686						237,688
	Accrued expenses			56,903			8,983		75,382			—			141,268
	Dividends payable			4,757			—		—			—			4,757
		Total current liabilities		135,545			27,287		232,568			—			395,400
Deferred income taxes				16,687			25,101		44,818			—			86,606
Long-term debt, excluding current installments				488,094			—		1,036			—			489,130
Other noncurrent liabilities				29,866			—		146,451			—			176,317
Shareholders' equity:
	Common stock of $1 par value			27,900			457,950		2,582			(460,532	)		27,900
	Additional paid-in capital			—			181,542		156,188			(337,730	)		—
	Retained earnings			927,712			237,721		709,050			(946,771	)		927,712
	Accumulated other comprehensive income (loss)			91,259			—		97,401			(97,401	)		91,259
	Treasury stock			(25,288	)		—		—			—			(25,288	)
		Total Valmont Industries, Inc. shareholders' equity		1,021,583			877,213		956,221			(1,842,434	)		1,021,583
Noncontrolling interest in consolidated subsidiaries				—			—		54,244			—			54,244
	Total shareholders' equity			1,021,583			877,213		1,019,465			(1,842,434	)		1,075,827
	Total liabilities and shareholders' equity		$	1,691,775		$	929,601	$	1,444,338		$	(1,842,434	)	$	2,223,280

CONSOLIDATED BALANCE SHEETS
December 25, 2010

			Parent			Guarantors		Non-Guarantors		Eliminations			Total
ASSETS
Current assets:
	Cash and cash equivalents		$	8,015		$	619	$	338,270	$	—		$	346,904
	Receivables, net			106,181			50,663		253,722		—			410,566
	Inventories			63,887			32,030		184,306		—			280,223
	Prepaid expenses			3,478			920		19,408		—			23,806
	Refundable and deferred income taxes			14,978			2,597		15,152		—			32,727
		Total current assets		196,539			86,829		810,858		—			1,094,226
Property, plant and equipment, at cost				413,149			98,019		354,119		—			865,287
	Less accumulated depreciation and amortization			269,831			50,406		105,441		—			425,678
		Net property, plant and equipment		143,318			47,613		248,678		—			439,609
Goodwill				20,108			107,542		187,197		—			314,847
Other intangible assets				823			68,310		116,402		—			185,535
Investment in subsidiaries and intercompany accounts				1,146,364			587,231		30,017		(1,742,468	)		21,144
Other assets				24,426			—		10,956		—			35,382
		Total assets	$	1,531,578		$	897,525	$	1,404,108	$	(1,742,468	)	$	2,090,743
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
	Current installments of long-term debt		$	187		$	—	$	51	$	—		$	238
	Notes payable to banks			—			—		8,824		—			8,824
	Accounts payable			45,854			15,254		118,706		—			179,814
	Accrued expenses			54,368			8,147		91,171		—			153,686
	Dividends payable			4,352			—		—		—			4,352
		Total current liabilities		104,761			23,401		218,752		—			346,914
Deferred income taxes				16,083			25,004		48,835		—			89,922
Long-term debt, excluding current installments				467,511			—		1,085		—			468,596
Other noncurrent liabilities				27,331			—		147,853		—			175,184
Commitments and contingencies
Shareholders' equity:
	Common stock of $1 par value			27,900			457,950		2,582		(460,532	)		27,900
	Additional paid-in capital			—			181,542		156,188		(337,730	)		—
	Retained earnings			850,269			209,628		670,933		(880,561	)		850,269
	Accumulated other comprehensive income			63,645			—		63,645		(63,645	)		63,645
	Treasury stock			(25,922	)		—		—		—			(25,922	)
		Total Valmont Industries, Inc. shareholders' equity		915,892			849,120		893,348		(1,742,468	)		915,892
Noncontrolling interest in consolidated subsidiaries				—			—		94,235		—			94,235
	Total shareholders' equity			915,892			849,120		987,583		(1,742,468	)		1,010,127
	Total liabilities and shareholders' equity		$	1,531,578		$	897,525	$	1,404,108	$	(1,742,468	)	$	2,090,743

Condensed Consolidated Statements of Cash Flows

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Twenty-six Weeks Ended June 25, 2011

						Parent			Guarantors			Non-Guarantors			Eliminations			Total
Cash flows from operations:
	Net earnings					$	71,436		$	28,093		$	36,182		$	(60,847	)	$	74,864
		Adjustments to reconcile net earnings to net cash flow from operations:
			Depreciation				9,982			6,147			19,741			—			35,870
			Stock-based compensation				2,618			—			—			—			2,618
			Defined benefit pension plan expense				—			—			2,962			—			2,962
			Contribution to defined benefit pension plan				—			—			(10,086	)		—			(10,086	)
			Loss (gain) on sale of assets				(216	)		—			(23	)		—			(239	)
			Equity in earnings of nonconsolidated subsidiaries				(34	)		—			(2,121	)		—			(2,155	)
			Deferred income taxes				(3,910	)		(968	)		(5,320	)		—			(10,198	)
			Other
			Changes in assets and liabilities:
				Receivables			(16,627	)		2,791			(17,227	)		—			(31,063	)
				Inventories			(41,343	)		(15,317	)		(22,296	)		—			(78,956	)
				Prepaid expenses			(1,270	)		(57	)		(4,301	)		—			(5,628	)
				Accounts payable			14,104			3,050			21,740			—			38,894
				Accrued expenses			2,860			836			(13,170	)		—			(9,474	)
				Other noncurrent liabilities			(5,438	)		—			1,036			—			(4,402	)
				Income taxes payable/refundable			27,822						(10,914	)		—			16,908
					Net cash flows from operations		59,984			24,575			(3,797	)		(60,847	)		19,915
Cash flows from investing activities:
	Purchase of property, plant and equipment						(4,644	)		(7,604	)		(15,663	)		—			(27,911	)
	Proceeds from sale of assets						14			13			2,428			—			2,455
	Acquisitions, net of cash acquired						—						(1,539	)		—			(1,539	)
	Other, net						(58,343	)		(17,122	)		16,566			60,847			1,948
					Net cash flows from investing activities		(62,973	)		(24,713	)		1,792			60,847			(25,047	)
Cash flows from financing activities:
	Net borrowings (repayments) under short-term agreements						—						2,160			—			2,160
	Proceeds from long-term borrowings						187,770			—			—			—			187,770
	Principal payments on long-term obligations						(167,186	)		—			(44	)		—			(167,230	)
	Purchase of noncontrolling interest						—			—			(25,253	)		—			(25,253	)
	Settlement of financial derivative						(3,568	)											(3,568	)
	Dividends paid						(8,710	)		—			—			—			(8,710	)
	Dividends to noncontrolling interests						—			—			(4,958	)		—			(4,958	)
	Debt issue fees						(1,284	)		—			—			—			(1,284	)
	Proceeds from exercises under stock plans						16,933			—			—			—			16,933
	Excess tax benefits from stock option exercises						2,533			—			—			—			2,533
	Purchase of treasury shares						(4,802	)		—						—			(4,802	)
	Purchase of common treasury shares—stock plan exercises						(18,443	)		—			—			—			(18,443	)
					Net cash flows from financing activities		3,243						(28,095	)		—			(24,852	)
Effect of exchange rate changes on cash and cash equivalents							—			—			9,870			—			9,870
Net change in cash and cash equivalents							254			(138	)		(20,230	)		—			(20,114	)
Cash and cash equivalents—beginning of year							8,015			619			338,270			—			346,904
Cash and cash equivalents—end of period						$	8,269		$	481		$	318,040		$	—		$	326,790

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Twenty-Six Weeks Ended June 26, 2010

						Parent			Guarantors			Non-Guarantors			Eliminations			Total
Cash flows from operations:
	Net earnings					$	33,578		$	9,983		$	24,235		$	(32,027	)	$	35,769
		Adjustments to reconcile net earnings to net cash flow from operations:
			Depreciation				9,994			6,372			8,214			—			24,580
			Stock-based compensation				3,168			—			—			—			3,168
			Loss on sale of assets				7			7			109			—			123
			Equity in earnings of nonconsolidated subsidiaries				(557	)		—			(362	)		—			(919	)
			Deferred income taxes				(2,918	)		(285	)		373			—			(2,830	)
			Other adjustments				—			—			19			—			19
			Changes in assets and liabilities:
				Receivables			(18,581	)		12,224			(25,714	)		—			(32,071	)
				Inventories			2,390			4,779			(12,629	)		(650	)		(6,110	)
				Prepaid expenses			(2,030	)		(281	)		2,372			—			61
				Accounts payable			6,250			(1,426	)		6,562			—			11,386
				Accrued expenses			(2,419	)		7,007			(2,919	)		—			1,669
				Other noncurrent liabilities			(341	)					8,237			—			7,896
				Income taxes payable/refundable			(4,178	)		14,923			496			—			11,241
					Net cash flows from operations		24,363			53,303			8,993			(32,677	)		53,982
Cash flows from investing activities:
	Purchase of property, plant and equipment						(5,469	)		(589	)		(4,967	)		—			(11,025	)
	Proceeds from sale of assets						10			3			83			—			96
	Acquisitions, gross of cash acquired						—			(436,736	)		(7,383	)		—			(444,119	)
	Cash acquired through acquisitions						—			—			198,809			—			198,809
	Other, net						14,520			(40,113	)		(5,568	)		32,677			1,516
					Net cash flows from investing activities		9,061			(477,435	)		180,974			32,677			(254,723	)
Cash flows from financing activities:
	Net repayments under short-term agreements						—			(6	)		(2,142	)		—			(2,148	)
	Proceeds from long-term borrowings						491,000			—						—			491,000
	Principal payments on long-term obligations						(133,228	)		—			—			—			(133,228	)
	Debt issue costs						(3,858	)											(3,858	)
	Activity under intercompany note						(443,702	)		443,702			—			—			—
	Dividends paid						(7,892	)		—			—			—			(7,892	)
	Dividends to noncontrolling interests						—			—			(3,477	)		—			(3,477	)
	Proceeds from exercises under stock plans						3,197			—			—			—			3,197
	Excess tax benefits from stock option exercises						1,216			—			—			—			1,216
	Purchase of treasury shares						(2,676	)		—			1,799			—			(877	)
	Purchase of common treasury shares—stock plan exercises						(1,961	)		—			—			—			(1,961	)
					Net cash flows from financing activities		(97,904	)		443,696			(3,820	)		—			341,972
Effect of exchange rate changes on cash and cash equivalents							—			—			(7,644	)		—			(7,644	)
Net change in cash and cash equivalents							(64,480	)		19,564			178,503			—			133,587
Cash and cash equivalents—beginning of year							82,017			1,666			97,103			—			180,786
Cash and cash equivalents—end of period						$	17,537		$	21,230		$	275,606		$	—		$	314,373