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Guarantor/Non-Guarantor Financial Information (Tables)
9 Months Ended
Sep. 24, 2011
Guarantor/Non-Guarantor Financial Information 
Condensed Consolidated Statements of Operations


 
  Parent   Guarantors   Non-Guarantors   Eliminations   Total  

Net sales

  $ 277,350   $ 98,619   $ 352,928   $ (56,705 ) $ 672,192  

Cost of sales

    205,787     83,008     272,671     (56,664 )   504,802  
                       
 

Gross profit

    71,563     15,611     80,257     (41 )   167,390  

Selling, general and administrative expenses

    37,169     11,212     46,976     —     95,357  
                       
 

Operating income

    34,394     4,399     33,281     (41 )   72,033  
                       

Other income (expense):

                               
 

Interest expense

    (7,562 )   —     (109 )   —     (7,671 )
 

Interest income

    9     204     2,928     —     3,141  
 

Other

    (1,297 )   12     (385 )   —     (1,670 )
                       

 

    (8,850 )   216     2,434     —     (6,200 )
                       

Earnings before income taxes and equity in earnings/(losses) of nonconsolidated subsidiaries

    25,544     4,615     35,715     (41 )   65,833  
                       

Income tax expense (benefit):

                               
 

Current

    12,153     (724 )   13,690     —     25,119  
 

Deferred

    (1,397 )   2,710     (2,659 )   —     (1,346 )
                       

 

    10,756     1,986     11,031     —     23,773  
                       

Earnings before equity in earnings/(losses) of nonconsolidated subsidiaries

    14,788     2,629     24,684     (41 )   42,060  

Equity in earnings/(losses) of nonconsolidated subsidiaries

    27,353     14,705     2,127     (41,831 )   2,354  
                       

Net Earnings

    42,141     17,334     26,811     (41,872 )   44,414  

Less: Earnings attributable to noncontrolling interests

    —     —     (2,273 )   —     (2,273 )
                       
 

Net Earnings attributable to Valmont Industries, Inc. 

  $ 42,141   $ 17,334   $ 24,538   $ (41,872 ) $ 42,141  
                       

 

 
  Parent   Guarantors   Non-Guarantors   Eliminations   Total  

Net sales

  $ 842,493   $ 259,733   $ 947,843   $ (141,319 ) $ 1,908,750  

Cost of sales

    627,802     209,827     740,621     (141,365 )   1,436,885  
                       
 

Gross profit

    214,691     49,906     207,222     46     471,865  

Selling, general and administrative expenses

    115,422     33,473     137,017     —     285,912  
                       
 

Operating income

    99,269     16,433     70,205     46     185,953  
                       

Other income (expense):

                               
 

Interest expense

    (26,417 )   —     (298 )   —     (26,715 )
 

Interest income

    43     204     6,672     —     6,919  
 

Other

    (1,105 )   42     287     —     (776 )
                       

 

    (27,479 )   246     6,661     —     (20,572 )
                       

Earnings before income taxes and equity in earnings/(losses) of nonconsolidated subsidiaries

    71,790     16,679     76,866     46     165,381  
                       

Income tax expense (benefit):

                               
 

Current

    31,505     4,552     26,099     —     62,156  
 

Deferred

    (5,307 )   1,742     (7,979 )   —     (11,544 )
                       

 

    26,198     6,294     18,120     —     50,612  
                       

Earnings before equity in earnings/(losses) of nonconsolidated subsidiaries

    45,592     10,385     58,746     46     114,769  

Equity in earnings/(losses) of nonconsolidated subsidiaries

    67,985     35,042     4,247     (102,765 )   4,509  
                       

Net Earnings

    113,577     45,427     62,993     (102,719 )   119,278  

Less: Earnings attributable to noncontrolling interests

    —     —     (5,701 )   —     (5,701 )
                       
 

Net Earnings attributable to Valmont Industries, Inc. 

  $ 113,577   $ 45,427   $ 57,292   $ (102,719 ) $ 113,577  
                       

 

 
  Parent   Guarantors   Non-Guarantors   Eliminations   Total  

Net sales

  $ 200,302   $ 84,440   $ 280,704   $ (37,615 ) $ 527,831  

Cost of sales

    147,511     64,990     220,474     (37,665 )   395,310  
                       
 

Gross profit

    52,791     19,450     60,230     50     132,521  

Selling, general and administrative expenses

    31,801     11,126     42,451     —     85,378  
                       
 

Operating income

    20,990     8,324     17,779     50     47,143  
                       

Other income (expense):

                               
 

Interest expense

    (8,515 )   187     (159 )   —     (8,487 )
 

Interest income

    4     4     1,725     —     1,733  
 

Other

    254     428     (624 )   —     58  
                       

 

    (8,257 )   619     942     —     (6,696 )
                       

Earnings before income taxes and equity in earnings/(losses) of nonconsolidated subsidiaries

    12,733     8,943     18,721     50     40,447  
                       

Income tax expense (benefit):

                               
 

Current

    4,594     3,081     8,019     —     15,694  
 

Deferred

    (183 )   (91 )   (1,640 )   —     (1,914 )
                       

 

    4,411     2,990     6,379     —     13,780  
                       

Earnings before equity in earnings/(losses) of nonconsolidated subsidiaries

    8,322     5,953     12,342     50     26,667  

Equity in earnings/(losses) of nonconsolidated subsidiaries

    17,613     5,751     1,021     (23,317 )   1,068  
                       

Net Earnings

    25,935     11,704     13,363     (23,267 )   27,735  

Less: Earnings attributable to noncontrolling interests

    —     —     (1,800 )   —     (1,800 )
                       
 

Net Earnings attributable to Valmont Industries, Inc. 

  $ 25,935   $ 11,704   $ 11,563   $ (23,267 ) $ 25,935  
                       

 
  Parent   Guarantors   Non-Guarantors   Eliminations   Total  

Net sales

  $ 616,823   $ 217,203   $ 640,764   $ (97,998 ) $ 1,376,792  

Cost of sales

    456,108     165,722     491,763     (98,698 )   1,014,895  
                       
 

Gross profit

    160,715     51,481     149,001     700     361,897  

Selling, general and administrative expenses

    113,581     33,765     98,457     —     245,803  
                       
 

Operating income

    47,134     17,716     50,544     700     116,094  
                       

Other income (expense):

                               
 

Interest expense

    (22,198 )   —     (680 )   —     (22,878 )
 

Interest income

    116     31     3,034     —     3,181  
 

Other

    476     (72 )   (376 )   —     28  
                       

 

    (21,606 )   (41 )   1,978     —     (19,669 )
                       

Earnings before income taxes and equity in earnings/(losses) of nonconsolidated subsidiaries

    25,528     17,675     52,522     700     96,425  
                       

Income tax expense (benefit):

                               
 

Current

    15,637     6,441     17,574     —     39,652  
 

Deferred

    (3,101 )   (376 )   (1,267 )   —     (4,744 )
                       

 

    12,536     6,065     16,307     —     34,908  
                       

Earnings before equity in earnings/(losses) of nonconsolidated subsidiaries

    12,992     11,610     36,215     700     61,517  

Equity in earnings/(losses) of nonconsolidated subsidiaries

    46,521     10,077     1,383     (55,994 )   1,987  
                       

Net Earnings

    59,513     21,687     37,598     (55,294 )   63,504  

Less: Earnings attributable to noncontrolling interests

    —     —     (3,991 )   —     (3,991 )
                       
 

Net Earnings attributable to Valmont Industries, Inc. 

  $ 59,513   $ 21,687   $ 33,607   $ (55,294 ) $ 59,513  
                       
Condensed Consolidated Balance Sheets

 

 
  Parent   Guarantors   Non-Guarantors   Eliminations   Total  

ASSETS

                               

Current assets:

                               
 

Cash and cash equivalents

  $ 25,593   $ 18,520   $ 292,795   $ —   $ 336,908  
 

Receivables, net

    116,840     50,984     281,607     —     449,431  
 

Inventories

    107,916     64,013     205,596     —     377,525  
 

Prepaid expenses

    5,231     1,245     22,356     —     28,832  
 

Refundable and deferred income taxes

    16,567     4,484     14,165     —     35,216  
                       
   

Total current assets

    272,147     139,246     816,519     —     1,227,912  
                       

Property, plant and equipment, at cost

    419,978     105,995     363,884     —     889,857  
 

Less accumulated depreciation and amortization

    280,599     54,004     118,115     —     452,718  
                       
   

Net property, plant and equipment

    139,379     51,991     245,769     —     437,139  
                       

Goodwill

    20,108     107,542     187,490     —     315,140  

Other intangible assets

    701     63,865     110,380     —     174,946  

Investment in subsidiaries and intercompany accounts

    1,231,763     594,194     (27,206 )   (1,798,751 )   —  

Other assets

    28,334     —     25,706     —     54,040  
                       
   

Total assets

  $ 1,692,432   $ 956,838   $ 1,358,658   $ (1,798,751 ) $ 2,209,177  
                       

LIABILITIES AND SHAREHOLDERS' EQUITY

                               

Current liabilities:

                               
 

Current installments of long-term debt

  $ 187   $ —   $ 49   $ —   $ 236  
 

Notes payable to banks

    —     —     11,022     —     11,022  
 

Accounts payable

    66,997     21,704     133,208     —     221,909  
 

Accrued employee compensation and benefits

    37,712     6,288     31,392     —     75,392  
 

Accrued expenses

    33,555     5,665     43,624     —     82,844  
 

Dividends payable

    4,760     —     —     —     4,760  
                       
   

Total current liabilities

    143,211     33,657     219,295     —     396,163  
                       

Deferred income taxes

    15,886     28,634     41,011     —     85,531  

Long-term debt, excluding current installments

    493,762     —     1,013     —     494,775  

Defined benefit pension liability

    —     —     96,990     —     96,990  

Deferred compensation

    23,002     —     6,399     —     29,401  

Other noncurrent liabilities

    5,148     —     37,920     —     43,068  

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

    966,872     255,055     703,666     (958,721 )   966,872  
 

Accumulated other comprehensive income (loss)

    41,768     —     41,768     (41,768 )   41,768  
 

Treasury stock

    (25,117 )   —     —     —     (25,117 )
                       
   

Total Valmont Industries, Inc. shareholders' equity

    1,011,423     894,547     904,204     (1,798,751 )   1,011,423  
                       

Noncontrolling interest in consolidated subsidiaries

    —     —     51,826     —     51,826  
                       
 

Total shareholders' equity

    1,011,423     894,547     956,030     (1,798,751 )   1,063,249  
                       
 

Total liabilities and shareholders' equity

  $ 1,692,432   $ 956,838   $ 1,358,658   $ (1,798,751 ) $ 2,209,177  
                       

 
  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

 

 
  Parent   Guarantors   Non-Guarantors   Eliminations   Total  

Cash flows from operations:

                               
 

Net earnings

  $ 113,577   $ 45,427   $ 62,993   $ (102,719 ) $ 119,278  
   

Adjustments to reconcile net earnings to net cash flow from operations:

                               
     

Depreciation

    15,758     9,416     28,019     —     53,193  
     

Stock-based compensation

    3,962     —     —     —     3,962  
     

Defined benefit pension plan expense

    —     —     4,544     —     4,544  
     

Contribution to defined benefit pension plan

    —     —     (11,754 )   —     (11,754 )
     

Loss (gain) on sale of assets

    3     (56 )   (242 )   —     (295 )
     

Equity in earnings of nonconsolidated subsidiaries

    (261 )   —     (4,248 )   —     (4,509 )
     

Deferred income taxes

    (5,307 )   1,742     (7,979 )   —     (11,544 )
     

Changes in assets and liabilities:

                               
       

Receivables

    (10,659 )   (320 )   (30,627 )   —     (41,606 )
       

Inventories

    (44,029 )   (31,983 )   (23,547 )   —     (99,559 )
       

Prepaid expenses

    (1,753 )   (325 )   (3,300 )   —     (5,378 )
       

Accounts payable

    9,850     6,450     17,482     —     33,782  
       

Accrued expenses

    17,225     3,805     (9,546 )   —     11,484  
       

Other noncurrent liabilities

    1,202     —     (5,694 )   —     (4,492 )
       

Income taxes payable/refundable

    14,814     —     2,195     —     17,009  
                       
         

Net cash flows from operations

    114,382     34,156     18,296     (102,719 )   64,115  
                       

Cash flows from investing activities:

                               
 

Purchase of property, plant and equipment

    (10,133 )   (9,358 )   (26,875 )   —     (46,366 )
 

Proceeds from sale of assets

    34     73     2,796     —     2,903  
 

Acquisitions, net of cash acquired

    —     —     (1,539 )   —     (1,539 )
 

Dividends from nonconsolidated subsidiaries

    590     —     —     —     590  
 

Other, net

    (92,449 )   (24,700 )   15,223     102,719     793  
                       
         

Net cash flows from investing activities

    (101,958 )   (33,985 )   (10,395 )   102,719     (43,619 )
                       

Cash flows from financing activities:

                               
 

Net borrowings (repayments) under short-term agreements

    —     —     2,152     —     2,152  
 

Proceeds from long-term borrowings

    213,832     —     —     —     213,832  
 

Principal payments on long-term obligations

    (187,186 )   —     (48 )   —     (187,234 )
 

Purchase of noncontrolling interest

    —     —     (25,253 )   —     (25,253 )
 

Settlement of financial derivative

    (3,568 )   —     —     —     (3,568 )
 

Dividends paid

    (13,467 )   —     —     —     (13,467 )
 

Intercompany dividends

    —     17,730     (17,730 )   —     —  
 

Dividends to noncontrolling interests

    —     —     (4,958 )   —     (4,958 )
 

Debt issue fees

    (1,284 )   —     —     —     (1,284 )
 

Proceeds from exercises under stock plans

    18,659     —     —     —     18,659  
 

Excess tax benefits from stock option exercises

    2,799     —     —     —     2,799  
 

Purchase of treasury shares

    (4,802 )   —     —     —     (4,802 )
 

Purchase of common treasury shares—stock plan exercises

    (19,829 )   —     —     —     (19,829 )
                       
         

Net cash flows from financing activities

    5,154     17,730     (45,837 )   —     (22,953 )
                       

Effect of exchange rate changes on cash and cash equivalents

    —     —     (7,539 )   —     (7,539 )
                       

Net change in cash and cash equivalents

    17,578     17,901     (45,475 )   —     (9,996 )

Cash and cash equivalents—beginning of year

    8,015     619     338,270     —     346,904  
                       

Cash and cash equivalents—end of period

  $ 25,593   $ 18,520   $ 292,795   $ —   $ 336,908  
                       

 

 
  Parent   Guarantors   Non-Guarantors   Eliminations   Total  

Cash flows from operations:

                               
 

Net earnings

  $ 59,513   $ 21,687   $ 37,598   $ (55,294 ) $ 63,504  
   

Adjustments to reconcile net earnings to net cash flow from operations:

                               
     

Depreciation

    14,984     9,564     17,281     —     41,829  
     

Stock-based compensation

    4,712     —     —     —     4,712  
     

Loss on sale of assets

    23     4     1,486     —     1,513  
     

Equity in earnings of nonconsolidated subsidiaries

    (604 )   —     (1,383 )   —     (1,987 )
     

Deferred income taxes

    (3,101 )   (376 )   (1,267 )   —     (4,744 )
     

Changes in assets and liabilities:

                               
       

Receivables

    (19,675 )   1,177     (25,548 )   —     (44,046 )
       

Inventories

    6,432     7,606     (9,648 )   —     4,390  
       

Prepaid expenses

    (1,108 )   (305 )   2,476     —     1,063  
       

Accounts payable

    4,022     1,031     (27,727 )   —     (22,674 )
       

Accrued expenses

    9,199     (9,803 )   19,834     —     19,230  
       

Other noncurrent liabilities

    160     —     10,094     —     10,254  
       

Income taxes payable/refundable

    (2,601 )   14,923     (27 )   —     12,295  
                       
         

Net cash flows from operations

    71,956     45,508     23,169     (55,294 )   85,339  
                       

Cash flows from investing activities:

                               
 

Purchase of property, plant and equipment

    (8,443 )   (1,468 )   (10,372 )   —     (20,283 )
 

Proceeds from sale of assets

    21     7     11,062     —     11,090  
 

Acquisitions, gross of cash acquired

    —     (436,736 )   (11,131 )   —     (447,867 )
 

Cash acquired through acquisitions

    —     —     198,810     —     198,810  
 

Dividends from nonconsolidated subsidiaries

    100     —     9,506     —     9,606  
 

Other, net

    3,229     (51,750 )   (4,711 )   55,294     2,062  
                       
         

Net cash flows from investing activities

    (5,093 )   (489,947 )   193,164     55,294     (246,582 )
                       

Cash flows from financing activities:

                               
 

Net repayments under short-term agreements

    —     (10 )   2,559     —     2,549  
 

Proceeds from long-term borrowings

    491,000     —     —     —     491,000  
 

Principal payments on long-term obligations

    (168,181 )   —     (90 )   —     (168,271 )
 

Debt issue costs

    (3,858 )   —     —     —     (3,858 )
 

Activity under intercompany note

    (443,702 )   443,702     —     —     —  
 

Dividends paid

    (12,240 )   —     —     —     (12,240 )
 

Dividends to noncontrolling interests

    —     —     (12,265 )   —     (12,265 )
 

Proceeds from exercises under stock plans

    3,390     —     —     —     3,390  
 

Excess tax benefits from stock option exercises

    1,479     —     —     —     1,479  
 

Purchase of treasury shares

    (2,678 )   —     1,800     —     (878 )
 

Purchase of common treasury shares—stock plan exercises

    (2,144 )   —     —     —     (2,144 )
                       
         

Net cash flows from financing activities

    (136,934 )   443,692     (7,996 )   —     298,762  
                       

Effect of exchange rate changes on cash and cash equivalents

    —     —     4,845     —     4,845  
                       

Net change in cash and cash equivalents

    (70,071 )   (747 )   213,182     —     142,364  

Cash and cash equivalents—beginning of year

    82,017     1,666     97,103     —     180,786  
                       

Cash and cash equivalents—end of period

  $ 11,946   $ 919   $ 310,285   $ —   $ 323,150