GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables)

9 Months Ended

Sep. 29, 2012

GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

Condensed Consolidated Statements of Operations

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
For the Thirteen Weeks Ended September 29, 2012

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	301,667		$	160,318		$	350,837		$	(82,983	)	$	729,839
Cost of sales		226,539			127,116			266,532			(82,750	)		537,437
Gross profit		75,128			33,202			84,305			(233	)		192,402
Selling, general and administrative expenses		41,747			13,449			46,824			—			102,020
Operating income		33,381			19,753			37,481			(233	)		90,382
Other income (expense):
Interest expense		(8,215	)		(12,635	)		(213	)		12,634			(8,429	)
Interest income		15			398			14,314			(12,634	)		2,093
Other		883			15			409			—			1,307
		(7,317	)		(12,222	)		14,510			—			(5,029	)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries		26,064			7,531			51,991			(233	)		85,353
Income tax expense (benefit):
Current		8,096			4,786			15,701			(655	)		27,928
Deferred		(1,063	)		(558	)		2,140			—			519
		7,033			4,228			17,841			(655	)		28,447
Earnings before equity in earnings of nonconsolidated subsidiaries		19,031			3,303			34,150			422			56,906
Equity in earnings of nonconsolidated subsidiaries		37,700			18,557			918			(55,639	)		1,536
Net earnings		56,731			21,860			35,068			(55,217	)		58,442
Other comprehensive income (loss)		24,562			(14,977	)		41,046			(24,822	)		25,809
Comprehensive income		81,293			6,883			76,114			(80,039	)		84,251
Less: Comprehensive income attributable to noncontrolling interests		—			—			(2,958	)		—			(2,958	)
Comprehensive income attributable to Valmont Industries, Inc	$	81,293		$	6,883		$	73,156		$	(80,039	)	$	81,293

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
For the Thirty-nine Weeks Ended September 29, 2012

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	1,014,150		$	441,189		$	977,950		$	(218,785	)	$	2,214,504
Cost of sales		743,608			352,416			757,829			(217,460	)		1,636,393
Gross profit		270,542			88,773			220,121			(1,325	)		578,111
Selling, general and administrative expenses		128,781			40,414			138,364			—			307,559
Operating income		141,761			48,359			81,757			(1,325	)		270,552
Other income (expense):
Interest expense		(23,470	)		(37,136	)		(186	)		37,135			(23,657	)
Interest income		29			721			42,466			(37,135	)		6,081
Other		1,888			40			(1,021	)		—			907
		(21,553	)		(36,375	)		41,259			—			(16,669	)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries		120,208			11,984			123,016			(1,325	)		253,883
Income tax expense (benefit):
Current		44,644			10,082			36,871			(655	)		90,942
Deferred		(3,832	)		(419	)		314			—			(3,937	)
		40,812			9,663			37,185			(655	)		87,005
Earnings before equity in earnings of nonconsolidated subsidiaries		79,396			2,321			85,831			(670	)		166,878
Equity in earnings of nonconsolidated subsidiaries		89,640			64,918			4,850			(154,097	)		5,311
Net earnings		169,036			67,239			90,681			(154,767	)		172,189
Other comprehensive income (loss)		23,097			(17,221	)		49,175			(29,668	)		25,383
Comprehensive income		192,133			50,018			139,856			(184,435	)		197,572
Less: Comprehensive income attributable to noncontrolling interests		—			—			(5,439	)		—			(5,439	)
Comprehensive income attributable to Valmont Industries, Inc	$	192,133		$	50,018		$	134,417		$	(184,435	)	$	192,133

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
For the Thirteen Weeks Ended September 24, 2011

	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 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 of nonconsolidated subsidiaries		14,788			2,629			24,684			(41	)		42,060
Equity in earnings 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
Other comprehensive income (loss)		(49,491	)		—			(57,464	)		52,773			(54,182	)
Comprehensive income (loss)		(7,350	)		17,334			(30,653	)		10,901			(9,768	)
Less: Comprehensive income attributable to noncontrolling interests		—			—			2,418			—			2,418
Comprehensive income attributable to Valmont Industries, Inc	$	(7,350	)	$	17,334		$	(28,235	)	$	10,901		$	(7,350	)

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME For the

Thirty-nine Weeks Ended September 24, 2011

	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 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 of nonconsolidated subsidiaries		45,592			10,385		58,746			46			114,769
Equity in earnings 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
Other comprehensive income		(21,877	)		—		(23,708	)		21,877			(23,708	)
Comprehensive income		91,700			45,427		39,285			(80,842	)		95,570
Less: Comprehensive income attributable to noncontrolling interests		—			—		(3,870	)		—			(3,870	)
Comprehensive income attributable to Valmont Industries, Inc	$	91,700		$	45,427	$	35,415		$	(80,842	)	$	91,700

Condensed Consolidated Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS
September 29, 2012

	Parent			Guarantors			Non- Guarantors		Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	75,150		$	42,164		$	309,766	$	—		$	427,080
Receivables, net		128,215			72,369			269,656		—			470,240
Inventories		124,158			89,246			219,285		—			432,689
Prepaid expenses		4,189			1,052			24,865		—			30,106
Refundable and deferred income taxes		25,891			6,558			17,243		—			49,692
Total current assets		357,603			211,389			840,815		—			1,409,807
Property, plant and equipment, at cost		447,378			116,562			401,386		—			965,326
Less accumulated depreciation and amortization		294,278			58,314			136,743		—			489,335
Net property, plant and equipment		153,100			58,248			264,643		—			475,991
Goodwill		20,108			107,542			191,407		—			319,057
Other intangible assets		539			54,986			106,754		—			162,279
Investment in subsidiaries and intercompany accounts		1,438,431			1,264,082			534,482		(3,236,995	)		—
Other assets		34,625			—			92,701		—			127,326
Total assets	$	2,004,406		$	1,696,247		$	2,030,802	$	(3,236,995	)	$	2,494,460
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current installments of long-term debt	$	189		$	—		$	37	$	—		$	226
Notes payable to banks		—			—			15,730		—			15,730
Accounts payable		53,905			24,708			139,730		(655	)		217,688
Accrued employee compensation and benefits		51,277			8,325			28,376					87,978
Accrued expenses		37,642			5,327			42,751		—			85,720
Dividends payable		5,991			—			—		—			5,991
Total current liabilities		149,004			38,360			226,624		(655	)		413,333
Deferred income taxes		19,808			27,582			33,590		—			80,980
Long-term debt, excluding current installments		472,182			602,751			1,045		(602,751	)		473,227
Defined benefit pension liability		—			—			62,667		—			62,667
Deferred compensation		27,587			—			6,733		—			34,320
Other noncurrent liabilities		4,954			—			37,085		—			42,039
Shareholders' equity:
Common stock of $1 par value		27,900			457,950			254,982		(712,932	)		27,900
Additional paid-in capital		—			150,286			893,274		(1,043,560	)		—
Retained earnings		1,238,840			437,497			345,880		(783,377	)		1,238,840
Accumulated other comprehensive income		87,149			(18,179	)		111,899		(93,720	)		87,149
Treasury stock		(23,018	)		—			—		—			(23,018	)
Total Valmont Industries, Inc. shareholders' equity		1,330,871			1,027,554			1,606,035		(2,633,589	)		1,330,871
Noncontrolling interest in consolidated subsidiaries		—			—			57,023		—			57,023
Total shareholders' equity		1,330,871			1,027,554			1,663,058		(2,633,589	)		1,387,894
Total liabilities and shareholders' equity	$	2,004,406		$	1,696,247		$	2,030,802	$	(3,236,995	)	$	2,494,460

CONDENSED 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 employee compensation and benefits		44,187			8,608			30,818					83,613
Accrued expenses		28,154			5,651			39,710		—			73,515
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
Defined benefit pension liability		—			—			68,024		—			68,024
Deferred compensation		24,142			—			6,599		—			30,741
Other noncurrent liabilities		4,506			—			36,912		—			41,418
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
Noncontrolling 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

Condensed Consolidated Statements of Cash Flows

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Thirty-nine Weeks Ended September 29, 2012

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	169,036		$	67,239		$	90,681		$	(154,767	)	$	172,189
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization		14,183			9,602			28,477			—			52,262
Stock-based compensation		4,517			—			—			—			4,517
Defined benefit pension plan expense		—			—			3,076			—			3,076
Contribution to defined benefit pension plan		—			—			(11,591	)		—			(11,591	)
Gain on sale of property, plant and equipment		(66	)		(58	)		(63	)		—			(187	)
Equity in earnings in nonconsolidated subsidiaries		(461	)		—			(4,850	)		—			(5,311	)
Deferred income taxes		(3,832	)		(419	)		314			—			(3,937	)
Changes in assets and liabilities:
Receivables		(5,806	)		(18,798	)		(22,059	)		—			(46,663	)
Inventories		1,705			(11,409	)		(26,803	)		—			(36,507	)
Prepaid expenses		(741	)		(43	)		(2,873	)		—			(3,657	)
Accounts payable		(14,260	)		3,280			10,945			—			(35	)
Accrued expenses		16,577			(607	)		19			—			15,989
Other noncurrent liabilities		532			—			(1,255	)		—			(723	)
Income taxes payable (refundable)		(19,897	)		273			(1,461	)		(655	)		(21,740	)
Net cash flows from operating activities		161,487			49,060			62,557			(155,422	)		117,682
Cash flows from investing activities:
Purchase of property, plant and equipment		(23,270	)		(10,885	)		(24,545	)		—			(58,700	)
Proceeds from sale of assets		112			71			5,414			—			5,597
Other, net		(77,917	)		(15,657	)		(61,768	)		155,422			80
Net cash flows from investing activities		(101,075	)		(26,471	)		(80,899	)		155,422			(53,023	)
Cash flows from financing activities:
Net borrowings under short-term agreements		—			—			4,096			—			4,096
Proceeds from long-term borrowings		39,000			—			126			—			39,126
Principal payments on long-term borrowings		(39,197	)		—			(83	)		—			(39,280	)
Proceeds from sale of partial ownership interest		—			—			1,404			—			1,404
Dividends paid		(15,530	)		—			—			—			(15,530	)
Dividends to noncontrolling interest		—			—			(1,379	)		—			(1,379	)
Debt issuance costs		(1,703	)		—			—			—			(1,703	)
Proceeds from exercises under stock plans		19,527			—			—			—			19,527
Excess tax benefits from stock option exercises		4,212			—			—			—			4,212
Purchase of common treasury shares—stock plan exercises:		(19,116	)		—			—			—			(19,116	)
Net cash flows from financing activities		(12,807	)		—			4,164			—			(8,643	)
Effect of exchange rate changes on cash and cash equivalents		—			1,318			6,852			—			8,170
Net change in cash and cash equivalents		47,605			23,907			(7,326	)		—			64,186
Cash and cash equivalents—beginning of year		27,545			18,257			317,092			—			362,894
Cash and cash equivalents—end of period	$	75,150		$	42,164		$	309,766		$	—		$	427,080

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Thirty-nine Weeks Ended September 24, 2011

	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 flows from operations:
Depreciation and amortization		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 property, plant and equipment		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 under short-term agreements		—			—			2,152			—			2,152
Proceeds from long-term borrowings		213,832			—			—			—			213,832
Principal payments on long-term borrowings		(187,186	)		—			(48	)		—			(187,234	)
Purchase of noncontrolling interest		—			—			(25,253	)		—			(25,253	)
Dividends paid		(13,467	)		—			—			—			(13,467	)
Intercompany dividends		—			17,730			(17,730	)		—			—
Dividend to noncontrolling interests		—			—			(4,958	)		—			(4,958	)
Settlement of financial derivative		(3,568	)		—			—			—			(3,568	)
Debt issues 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