Guarantor/Non-Guarantor Financial Information (Tables)

12 Months Ended

Dec. 31, 2011

GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

Condensed Consolidated Statements of Operations

CONSOLIDATED STATEMENTS OF EARNINGS
For the Year ended December 31, 2011

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	1,164,400		$	401,443		$	1,305,424		$	(209,787	)	$	2,661,480
Cost of sales		863,269			323,812			1,016,305			(208,716	)		1,994,670
Gross profit		301,131			77,631			289,119			(1,071	)		666,810
Selling, general and administrative expenses		166,964			50,783			185,753			—			403,500
Operating income		134,167			26,848			103,366			(1,071	)		263,310
Other income (expense):
Interest expense		(35,456	)		—			(719	)		—			(36,175	)
Interest income		59			331			8,875			—			9,265
Other		(311	)		59			(2,391	)		—			(2,643	)
		(35,708	)		390			5,765			—			(29,553	)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries		98,459			27,238			109,131			(1,071	)		233,757
Income tax expense (benefit):
Current		48,243			10,571			30,738			—			89,552
Deferred		(4,787	)		(964	)		(79,211	)		—			(84,962	)
		43,456			9,607			(48,473	)		—			4,590
Earnings before equity in earnings of nonconsolidated subsidiaries		55,003			17,631			157,604			(1,071	)		229,167
Equity in earnings of nonconsolidated subsidiaries		173,305			125,269			6,818			(297,333	)		8,059
Net earnings		228,308			142,900			164,422			(298,404	)		237,226
Less: Earnings attributable to noncontrolling interests		—			—			(8,918	)		—			(8,918	)
Net earnings attributable to Valmont Industries, Inc	$	228,308		$	142,900		$	155,504		$	(298,404	)	$	228,308

CONSOLIDATED STATEMENTS OF EARNINGS

For the Year ended December 25, 2010

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	847,396		$	304,309		$	956,023		$	(132,223	)	$	1,975,505
Cost of sales		622,018			231,696			735,195			(132,978	)		1,455,931
Gross profit		225,378			72,613			220,828			755			519,574
Selling, general and administrative expenses		147,054			47,688			146,419			—			341,161
Operating income		78,324			24,925			74,409			755			178,413
Other income (expense):
Interest expense		(30,282	)		(1	)		(664	)		—			(30,947	)
Interest income		127			31			4,682			—			4,840
Other		995			(48	)		(271	)		—			676
		(29,160	)		(18	)		3,747			—			(25,431	)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries		49,164			24,907			78,156			755			152,982
Income tax expense (benefit):
Current		19,525			5,039			25,427			—			49,991
Deferred		722			4,984			(689	)		—			5,017
		20,247			10,023			24,738			—			55,008
Earnings before equity in earnings of nonconsolidated subsidiaries		28,917			14,884			53,418			755			97,974
Equity in earnings of nonconsolidated subsidiaries		65,462			25,264			1,525			(89,812	)		2,439
Net earnings		94,379			40,148			54,943			(89,057	)		100,413
Less: Earnings attributable to noncontrolling interests		—			—			(6,034	)		—			(6,034	)
Net earnings attributable to Valmont Industries, Inc	$	94,379		$	40,148		$	48,909		$	(89,057	)	$	94,379

CONSOLIDATED STATEMENTS OF EARNINGS

For the Year ended December 26, 2009

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	920,501		$	441,794		$	570,244		$	(145,938	)	$	1,786,601
Cost of sales		659,714			323,049			419,872			(148,048	)		1,254,587
Gross profit		260,787			118,745			150,372			2,110			532,014
Selling, general and administrative expenses		152,862			53,198			87,960			—			294,020
Operating income		107,925			65,547			62,412			2,110			237,994
Other income (expense):
Interest expense		(14,508	)		(14	)		(1,238	)		—			(15,760	)
Interest income		75			1			1,434			—			1,510
Other		3,148			173			(981	)		—			2,340
		(11,285	)		160			(785	)		—			(11,910	)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries		96,640			65,707			61,627			2,110			226,084
Income tax expense (benefit):
Current		26,067			23,426			16,026			—			65,519
Deferred		8,338			1,657			(2,620	)		—			7,375
		34,405			25,083			13,406			—			72,894
Earnings before equity in earnings of nonconsolidated subsidiaries		62,235			40,624			48,221			2,110			153,190
Equity in earnings of nonconsolidated subsidiaries		88,327			—			95			(87,671	)		751
Net earnings		150,562			40,624			48,316			(85,561	)		153,941
Less: Earnings attributable to noncontrolling interests		—			—			(3,379	)		—			(3,379	)
Net earnings attributable to Valmont Industries, Inc	$	150,562		$	40,624		$	44,937		$	(85,561	)	$	150,562

Condensed Consolidated Balance Sheets

CONSOLIDATED BALANCE SHEETS

December 31, 2011

	Parent			Guarantors			Non- Guarantors		Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	27,545		$	18,257		$	317,092	$	—		$	362,894
Receivables, net		122,409			53,567			250,707		—			426,683
Inventories		125,862			77,838			190,082		—			393,782
Prepaid expenses		3,448			1,009			21,308		—			25,765
Refundable and deferred income taxes		22,053			6,218			15,548		—			43,819
Total current assets		301,317			156,889			794,737		—			1,252,943
Property, plant and equipment, at cost		427,398			107,315			376,929		—			911,642
Less accumulated depreciation and amortization		283,786			54,740			118,239		—			456,765
Net property, plant and equipment		143,612			52,575			258,690		—			454,877
Goodwill		20,108			107,542			187,012		—			314,662
Other intangible assets		661			59,389			108,033		—			168,083
Investment in subsidiaries and intercompany accounts		1,338,299			695,745			596,301		(2,630,345	)		—
Other assets		30,192			—			85,319		—			115,511
Total assets	$	1,834,189		$	1,072,140		$	2,030,092	$	(2,630,345	)	$	2,306,076
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments of long-term debt	$	187		$	—		$	48	$	—		$	235
Notes payable to banks		—			—			11,403		—			11,403
Accounts payable		85,974			21,428			127,135		—			234,537
Accrued expenses		72,341			14,259			70,528		—			157,128
Dividends payable		4,767			—			—		—			4,767
Total current liabilities		163,269			35,687			209,114		—			408,070
Deferred income taxes		21,891			27,661			35,945		—			85,497
Long-term debt, excluding current installments		473,419			—			996		—			474,415
Other noncurrent liabilities		28,648			—			111,535		—			140,183
Commitments and contingencies
Shareholders' equity:
Common stock of $1 par value		27,900			457,950			254,982		(712,932	)		27,900
Additional paid-in capital		—			181,542			893,884		(1,075,426	)		—
Retained earnings		1,079,698			370,258			407,677		(777,935	)		1,079,698
Accumulated other comprehensive income		64,052			(958	)		65,010		(64,052	)		64,052
Treasury stock		(24,688	)		—			—		—			(24,688	)
Total Valmont Industries, Inc. shareholders' equity		1,146,962			1,008,792			1,621,553		(2,630,345	)		1,146,962
Non controlling interest in consolidated subsidiaries		—			—			50,949		—			50,949
Total shareholders' equity		1,146,962			1,008,792			1,672,502		(2,630,345	)		1,197,911
Total liabilities and shareholders' equity	$	1,834,189		$	1,072,140		$	2,030,092	$	(2,630,345	)	$	2,306,076

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
Non controlling 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

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Year Ended December 31, 2011

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	228,308		$	142,900		$	164,422		$	(298,404	)	$	237,226
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization		20,570			15,593			38,397			—			74,560
Stock-based compensation		5,931			—			—			—			5,931
Defined benefit pension plan expense		—			—			5,449			—			5,449
Contribution to defined benefit pension plan		—			—			(11,860	)		—			(11,860	)
Loss on sale of property, plant and equipment		18			123			552			—			693
Equity in earnings in nonconsolidated subsidiaries		(1,241	)		—			(6,818	)		—			(8,059	)
Deferred income taxes		(4,787	)		(964	)		(79,211	)		—			(84,962	)
Other
Changes in assets and liabilities (net of the effect from acquisitions):
Receivables		(16,228	)		(2,904	)		1,702			—			(17,430	)
Inventories		(61,976	)		(45,808	)		(11,082	)		—			(118,866	)
Prepaid expenses		30			(89	)		(3,983	)		—			(4,042	)
Accounts payable		22,311			6,174			14,152			—			42,637
Accrued expenses		18,298			6,112			(12,565	)		—			11,845
Other noncurrent liabilities		598			—			(6,479	)		—			(5,881	)
Income taxes payable		21,329			—			1,101						22,430
Net cash flows from operating activities		233,161			121,137			93,777			(298,404	)		149,671
Cash flows from investing activities:
Purchase of property, plant and equipment		(19,185	)		(12,180	)		(51,704	)		—			(83,069	)
Acquisitions, net of cash acquired		—			—			(1,539	)		—			(1,539	)
Proceeds from sale of assets		51			408			3,247			—			3,706
Other, net		(190,242	)		(109,457	)		(1,866	)		298,404			(3,161	)
Net cash flows from investing activities		(209,376	)		(121,229	)		(51,862	)		298,404			(84,063	)
Cash flows from financing activities:
Net borrowings under short-term agreements		—			—			2,698			—			2,698
Proceeds from long-term borrowings		277,832			—			—			—			277,832
Principal payments on long-term obligations		(271,192	)		—			(53	)		—			(271,245	)
Dividends paid		(18,227	)		—			—			—			(18,227	)
Intercompany dividends		14,090			17,730			(31,820	)		—			—
Dividends to noncontrolling interest		—			—			(4,958	)		—			(4,958	)
Purchase of noncontrolling interest		—			—			(25,253	)		—			(25,253	)
Settlement of financial derivative		(3,568	)		—			—			—			(3,568	)
Debt issuance fees		(1,339	)		—			—			—			(1,339	)
Proceeds from exercises under stock plans		20,008			—			—			—			20,008
Excess tax benefits from stock option exercises		3,033			—			—			—			3,033
Purchase of treasury shares		(4,802	)		—			—			—			(4,802	)
Purchase of common treasury shares—stock plan exercises:		(20,090	)		—			—			—			(20,090	)
Net cash flows from financing activities		(4,255	)		17,730			(59,386	)		—			(45,911	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(3,707	)		—			(3,707	)
Net change in cash and cash equivalents		19,530			17,638			(21,178	)		—			15,990
Cash and cash equivalents—beginning of year		8,015			619			338,270			—			346,904
Cash and cash equivalents—end of year	$	27,545		$	18,257		$	317,092		$	—		$	362,894

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Year Ended December 25, 2010

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operations:
Net earnings	$	94,379		$	40,148		$	54,943		$	(89,057	)	$	100,413
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization		20,069			12,749			26,845			—			59,663
Stock-based compensation		7,154			—			—			—			7,154
Defined benefit pension plan expense		—			—			5,874			—			5,874
Loss on sale of property, plant and equipment		66			44			3,093			—			3,203
Equity in earnings in nonconsolidated subsidiaries		(914	)		—			(1,525	)		—			(2,439	)
Deferred income taxes		(657	)		4,984			690			—			5,017
Other		(393	)		—			—			—			(393	)
Changes in assets and liabilities, before acquisitions:
Receivables		(30,979	)		(2,008	)		(18,806	)		—			(51,793	)
Inventories		13,820			10,792			(2,291	)		—			22,321
Prepaid expenses		(169	)		(465	)		4,999			—			4,365
Accounts payable		9,246			1,643			(11,761	)		—			(872	)
Accrued expenses		(6,108	)		(9,689	)		8,255			—			(7,542	)
Other noncurrent liabilities		(598	)		—			—			—			(598	)
Income taxes payable (refundable)		(10,395	)		14,923			3,319						7,847
Net cash flows from operations		94,521			73,121			73,635			(89,057	)		152,220
Cash flows from investing activities:
Purchase of property, plant and equipment		(11,702	)		(4,815	)		(19,575	)		—			(36,092	)
Proceeds from sale of property, plant and equipment		22			286			11,079			—			11,387
Acquisitions (net of cash acquired of $198,810)		—			(436,736	)		187,679			—			(249,057	)
Dividends from nonconsolidated subsidiaries		100			—			10,025			—			10,125
Other, net		(1,156	)		(76,593	)		(10,384	)		89,057			924
Net cash flows from investing activities		(12,736	)		(517,858	)		178,824			89,057			(262,713	)
Cash flows from financing activities:
Net borrowings under short-term agreements		—			(12	)		(3,063	)		—			(3,075	)
Proceeds from long-term borrowings		491,000			—			680			—			491,680
Principal payments on long-term obligations		(183,188	)		—			(97	)		—			(183,285	)
Dividends paid		(16,588	)		—			—			—			(16,588	)
Dividends to noncontrolling interest		—			—			(13,071	)		—			(13,071	)
Retirement of Delta plc preference shares		—			—			(4,467	)		—			(4,467	)
Debt issuance fees		(3,858	)		—			—			—			(3,858	)
Intercompany loan activity		(443,702	)		443,702									—
Proceeds from exercises under stock plans		4,464			—			—			—			4,464
Excess tax benefits from stock option exercises		2,021			—			—			—			2,021
Purchase of treasury shares		(2,676	)		—			1,800			—			(876	)
Purchase of common treasury shares—stock plan exercises		(3,260	)		—			—			—			(3,260	)
Net cash flows from financing activities		(155,787	)		443,690			(18,218	)		—			269,685
Effect of exchange rate changes on cash and cash equivalents		—			—			6,926			—			6,926
Net change in cash and cash equivalents		(74,002	)		(1,047	)		241,167			—			166,118
Cash and cash equivalents—beginning of year		82,017			1,666			97,103			—			180,786
Cash and cash equivalents—end of year	$	8,015		$	619		$	338,270		$	—		$	346,904

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Year Ended December 26, 2009

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	153,941		$	40,623		$	51,696		$	(92,319	)	$	153,941
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization		19,005			12,666			13,077			—			44,748
Stock-based compensation		6,586			—			—			—			6,586
Loss on sale of property, plant and equipment		90			416			676			—			1,182
Equity in earnings in nonconsolidated subsidiaries		(656	)		—			(95	)		—			(751	)
Deferred income taxes		8,338			1,657			(2,620	)		—			7,375
Other		(267	)		—			(238	)		—			(505	)
Changes in assets and liabilities, before acquisitions:
Receivables		38,348			12,971			22,863			—			74,182
Inventories		55,187			27,091			24,967			—			107,245
Prepaid expenses		53			185			(7,506	)		—			(7,268	)
Accounts payable		(15,070	)		(6,202	)		1,554			—			(19,718	)
Accrued expenses		(1,394	)		4,662			(6,288	)		—			(3,020	)
Other noncurrent liabilities		(1,523	)		—			823			—			(700	)
Income taxes payable (refundable)		1,612			(15,566	)		177			—			(13,777	)
Net cash flows from operating activities		264,250			78,503			99,086			(92,319	)		349,520
Cash flows from investing activities:
Purchase of property, plant and equipment		(24,818	)		(7,671	)		(11,640	)					(44,129	)
Proceeds from sale of property, plant and equipment		367			553			411			—			1,331
Other, net		11,557			(71,184	)		(33,489	)		92,319			(797	)
Net cash flows from investing activities		(12,894	)		(78,302	)		(44,718	)		92,319			(43,595	)
Cash flows from financing activities:
Net borrowings under short-term agreements		—			—			(7,652	)		—			(7,652	)
Proceeds from long-term borrowings		—			—			10,001			—			10,001
Principal payments on long-term obligations		(176,504	)		(38	)		(11,427	)		—			(187,969	)
Dividends paid		(14,695	)		—			—			—			(14,695	)
Dividends to noncontrolling interest		—			—			(956	)		—			(956	)
Proceeds from exercises under stock plans		4,942			—			—			—			4,942
Excess tax benefits from stock option exercises		2,665			—			—			—			2,665
Purchase of treasury shares		(669	)		—			—			—			(669	)
Purchase of common treasury shares—stock plan exercises		(4,067	)		—			—			—			(4,067	)
Net cash flows from financing activities		(188,328	)		(38	)		(10,034	)		—			(198,400	)
Effect of exchange rate changes on cash and cash equivalents		—			—			4,694			—			4,694
Net change in cash and cash equivalents		63,028			163			49,029			—			112,219
Cash and cash equivalents—beginning of year		18,989			1,503			48,075			—			68,567
Cash and cash equivalents—end of year	$	82,017		$	1,666		$	97,103		$	—		$	180,786