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