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GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables)
3 Months Ended
Mar. 30, 2013
GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION  
Condensed Consolidated Statements of Earnings

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
For the Thirteen Weeks Ended March 30, 2013

 
  Parent   Guarantors   Non-Guarantors   Eliminations   Total  

Net sales

  $ 416,613   $ 170,849   $ 325,409   $ (93,241 ) $ 819,630  

Cost of sales

    300,680     128,998     248,383     (93,800 )   584,261  
                       

Gross profit

    115,933     41,851     77,026     559     235,369  

Selling, general and administrative expenses

    50,026     13,994     53,159     —     117,179  
                       

Operating income

    65,907     27,857     23,867     559     118,190  
                       

Other income (expense):

                               

Interest expense

    (7,755 )   (12,630 )   (434 )   12,629     (8,190 )

Interest income

    7     253     13,722     (12,629 )   1,353  

Other

    1,408     15     133     —     1,556  
                       

 

    (6,340 )   (12,362 )   13,421     —     (5,281 )
                       

Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries

    59,567     15,495     37,288     559     112,909  
                       

Income tax expense (benefit):

                               

Current

    21,175     6,836     10,470     179     38,660  

Deferred

    (1,754 )   303     (2,236 )   —     (3,687 )
                       

 

    19,421     7,139     8,234     179     34,973  
                       

Earnings before equity in earnings of nonconsolidated subsidiaries

    40,146     8,356     29,054     380     77,936  

Equity in earnings of nonconsolidated subsidiaries

    37,423     19,151     207     (56,577 )   204  
                       

Net earnings

  $ 77,569   $ 27,507   $ 29,261   $ (56,197 ) $ 78,140  
                       

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
For the Thirteen Weeks Ended March 31, 2012

 
  Parent   Guarantors   Non-Guarantors   Eliminations   Total  

Net sales

  $ 364,840   $ 128,712   $ 293,942   $ (70,144 ) $ 717,350  

Cost of sales

    267,512     103,642     229,923     (70,041 )   531,036  
                       

Gross profit

    97,328     25,070     64,019     (103 )   186,314  

Selling, general and administrative expenses

    43,272     13,788     46,436     —     103,496  
                       

Operating income

    54,056     11,282     17,583     (103 )   82,818  
                       

Other income (expense):

                               

Interest expense

    (7,682 )   (12,257 )   (125 )   12,257     (7,807 )

Interest income

    9     194     14,132     (12,257 )   2,078  

Other

    1,459     14     104     —     1,577  
                       

 

    (6,214 )   (12,049 )   14,111     —     (4,152 )
                       

Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries

    47,842     (767 )   31,694     (103 )   78,666  
                       

Income tax expense (benefit):

                               

Current

    17,185     (901 )   10,745     —     27,029  

Deferred

    194     1,170     (627 )   —     737  
                       

 

    17,379     269     10,118     —     27,766  
                       

Earnings before equity in earnings of nonconsolidated subsidiaries

    30,463     (1,036 )   21,576     (103 )   50,900  

Equity in earnings of nonconsolidated subsidiaries

    21,862     23,108     1,656     (44,938 )   1,688  
                       

Net earnings

  $ 52,325   $ 22,072   $ 23,232   $ (45,041 ) $ 52,588  
                       
Condensed Consolidated Comprehensive Income

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Thirteen Weeks Ended March 30, 2013

 
  Parent   Guarantors   Non-Guarantors   Eliminations   Total  

Net earnings

  $ 77,569   $ 27,507   $ 29,261   $ (56,197 ) $ 78,140  
                       

Other comprehensive income (loss), net of tax:

                               

Foreign currency translation adjustments:

                               

Unrealized gains (losses) arising during the period

    —     (38,321 )   28,701     —     (9,620 )

Realized (loss) included in net earnings during the period

    —     —     (5,194 )   —     (5,194 )
                       

 

    —     (38,321 )   23,507     —     (14,814 )
                       

Unrealized loss on cash flow hedge:

                               

Amortization cost included in interest expense          

    100     —     —     —     100  
                       

 

    100     —     —     —     100  
                       

Actuarial gain (loss) in defined benefit pension plan liability

    —     —     (936 )   —     (936 )

Equity in other comprehensive income

   
(13,539

)
 
—
   
—
   
13,539
   
—
 
                       

Other comprehensive income (loss)

    (13,439 )   (38,321 )   22,571     13,539     (15,650 )
                       

Comprehensive income

    64,130     (10,814 )   51,832     (42,658 )   62,490  

Comprehensive income attributable to noncontrolling interests

    —     —     1,640     —     1,640  
                       

Comprehensive income attributable to Valmont Industries, Inc. 

  $ 64,130   $ (10,814 ) $ 53,472   $ (42,658 ) $ 64,130  
                       


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Thirteen Weeks Ended March 31, 2012

 
  Parent   Guarantors   Non-Guarantors   Eliminations   Total  

Net earnings

  $ 52,325   $ 22,072   $ 23,232   $ (45,041 ) $ 52,588  

Other comprehensive income (loss), net of tax:

                               

Foreign currency translation adjustments:

                               

Unrealized gains (losses) arising during the period

    —     (16,367 )   45,929     —     29,562  
                       

 

    —     (16,367 )   45,929     —     29,562  
                       

Unrealized loss on cash flow hedge:

                               

Amortization cost included in interest expense          

    100     —     —     —     100  
                       

 

    100     —     —     —     100  
                       

Actuarial gain (loss) in defined benefit pension plan liability

    —     —     1,871     —     1,871  

Equity in other comprehensive income

   
26,682
   
—
   
—
   
(26,682

)
 
—
 
                       

Other comprehensive income (loss)

    26,782     (16,367 )   47,800     (26,682 )   31,533  
                       

Comprehensive income

    79,107     5,705     71,032     (71,723 )   84,121  

Comprehensive income attributable to noncontrolling interests

    —     —     (5,014 )   —     (5,014 )
                       

Comprehensive income attributable to Valmont Industries, Inc. 

  $ 79,107   $ 5,705   $ 66,018   $ (71,723 ) $ 79,107  
                       
Condensed Consolidated Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS
March 30, 2013

 
  Parent   Guarantors   Non-Guarantors   Eliminations   Total  

ASSETS

                               

Current assets:

                               

Cash and cash equivalents

  $ 85,432   $ 34,501   $ 300,063   $ —   $ 419,996  

Receivables, net

    136,838     85,702     281,393     —     503,933  

Inventories

    149,557     80,654     221,046     —     451,257  

Prepaid expenses

    5,903     835     26,817     —     33,555  

Refundable and deferred income taxes

    29,118     7,082     25,545     —     61,745  
                       

Total current assets

    406,848     208,774     854,864     —     1,470,486  
                       

Property, plant and equipment, at cost

    465,837     129,868     429,298     —     1,025,003  

Less accumulated depreciation and amortization

    292,741     56,968     140,944     —     490,653  
                       

Net property, plant and equipment

    173,096     72,900     288,354     —     534,350  
                       

Goodwill

    20,108     107,542     212,168     —     339,818  

Other intangible assets

    458     52,074     119,232     —     171,764  

Investment in subsidiaries and intercompany accounts

    1,427,044     1,309,613     586,377     (3,323,034 )   —  

Other assets

    36,246     —     64,580     —     100,826  
                       

Total assets

  $ 2,063,800   $ 1,750,903   $ 2,125,575   $ (3,323,034 ) $ 2,617,244  
                       

LIABILITIES AND SHAREHOLDERS' EQUITY

                               

Current liabilities:

                               

Current installments of long-term debt

  $ 189   $ —   $ —   $ —   $ 189  

Notes payable to banks

    —     —     13,324     —     13,324  

Accounts payable

    70,976     16,992     123,604     —     211,572  

Accrued employee compensation and benefits

    44,181     6,249     27,682     —     78,112  

Accrued expenses

    41,337     3,628     40,539     —     85,504  

Income taxes payable

    16,061     —     647     (647 )   16,061  

Dividends payable

    6,020     —     —     —     6,020  
                       

Total current liabilities

    178,764     26,869     205,796     (647 )   410,782  
                       

Deferred income taxes

    22,482     28,332     35,777     —     86,591  

Long-term debt, excluding current installments

    471,468     601,872     781     (601,872 )   472,249  

Defined benefit pension liability

    —     —     96,841     —     96,841  

Deferred compensation

    29,160     —     8,533     —     37,693  

Other noncurrent liabilities

    7,123     —     42,040     —     49,163  

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

    1,306,299     539,295     441,195     (914,052 )   1,372,737  

Accumulated other comprehensive income

    42,122     (53,701 )   92,049     (49,971 )   30,499  

Treasury stock

    (21,518 )   —     —     —     (21,518 )
                       

Total Valmont Industries, Inc. shareholders' equity

    1,354,803     1,093,830     1,681,500     (2,720,515 )   1,409,618  
                       

Noncontrolling interest in consolidated subsidiaries

    —     —     54,307     —     54,307  
                       

Total shareholders' equity

    1,354,803     1,093,830     1,735,807     (2,720,515 )   1,463,925  
                       

Total liabilities and shareholders' equity

  $ 2,063,800   $ 1,750,903   $ 2,125,575   $ (3,323,034 ) $ 2,617,244  
                       

CONDENSED CONSOLIDATED BALANCE SHEETS
December 29, 2012

 
  Parent   Guarantors   Non-Guarantors   Eliminations   Total  

ASSETS

                               

Current assets:

                               

Cash and cash equivalents

  $ 40,926   $ 83,203   $ 290,000   $ —   $ 414,129  

Receivables, net

    144,161     86,403     285,338     —     515,902  

Inventories

    146,619     71,988     193,777     —     412,384  

Prepaid expenses

    7,153     1,029     16,962     —     25,144  

Refundable and deferred income taxes

    29,359     6,904     22,118     —     58,381  
                       

Total current assets

    368,218     249,527     808,195     —     1,425,940  
                       

Property, plant and equipment, at cost

    456,497     122,937     415,340     —     994,774  

Less accumulated depreciation and amortization

    288,226     55,239     138,697     —     482,162  
                       

Net property, plant and equipment

    168,271     67,698     276,643     —     512,612  
                       

Goodwill

    20,108     107,542     203,141     —     330,791  

Other intangible assets

    499     53,517     118,254     —     172,270  

Investment in subsidiaries and intercompany accounts

    1,456,159     1,246,777     615,152     (3,318,088 )   —  

Other assets

    32,511     —     94,427     —     126,938  
                       

Total assets

  $ 2,045,766   $ 1,725,061   $ 2,115,812   $ (3,318,088 ) $ 2,568,551  
                       

LIABILITIES AND SHAREHOLDERS' EQUITY

                               

Current liabilities:

                               

Current installments of long-term debt

  $ 189   $ —   $ 35   $ —   $ 224  

Notes payable to banks

    —     —     13,375     —     13,375  

Accounts payable

    72,610     22,006     117,808     —     212,424  

Accrued employee compensation and benefits

    61,572     10,530     29,803           101,905  

Accrued expenses

    30,641     4,674     43,188     —     78,503  

Income taxes payable

    —     31     669     (700 )   —  

Dividends payable

    6,002     —     —     —     6,002  
                       

Total current liabilities

    171,014     37,241     204,878     (700 )   412,433  
                       

Deferred income taxes

    23,305     27,851     37,144     —     88,300  

Long-term debt, excluding current installments

    471,828     599,873     765     (599,873 )   472,593  

Defined benefit pension liability

    —     —     112,043     —     112,043  

Deferred compensation

    25,200     —     6,720     —     31,920  

Other noncurrent liabilities

    4,507     —     39,745     —     44,252  

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

    1,300,529     467,240     443,337     (910,577 )   1,300,529  

Accumulated other comprehensive income

    43,938     (15,380 )   65,826     (50,446 )   43,938  

Treasury stock

    (22,455 )   —     —     —     (22,455 )
                       

Total Valmont Industries, Inc. shareholders' equity

    1,349,912     1,060,096     1,657,419     (2,717,515 )   1,349,912  
                       

Noncontrolling interest in consolidated subsidiaries

    —     —     57,098     —     57,098  
                       

Total shareholders' equity

    1,349,912     1,060,096     1,714,517     (2,717,515 )   1,407,010  
                       

Total liabilities and shareholders' equity

  $ 2,045,766   $ 1,725,061   $ 2,115,812   $ (3,318,088 ) $ 2,568,551  
                       
Condensed Consolidated Statements of Cash Flows

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Thirteen Weeks Ended March 30, 2013

 
  Parent   Guarantors   Non-Guarantors   Eliminations   Total  

Cash flows from operating activities:

                               

Net earnings

  $ 77,569   $ 27,507   $ 29,261   $ (56,197 ) $ 78,140  

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

                               

Depreciation and amortization

    4,787     3,318     11,103     —     19,208  

Stock-based compensation

    1,675     —     —     —     1,675  

Defined benefit pension plan expense

    —     —     1,633     —     1,633  

Contribution to defined benefit pension plan

    —     —     (10,346 )   —     (10,346 )

Gain on sale of property, plant and equipment

    19     4     (89 )   —     (66 )

Equity in earnings in nonconsolidated subsidiaries

    3     —     (207 )   —     (204 )

Deferred income taxes

    (1,754 )   303     (2,236 )   —     (3,687 )

Changes in assets and liabilities (net of acquisitions):

                               

Receivables

    7,323     701     10,982     —     19,006  

Inventories

    (2,938 )   (8,666 )   (18,786 )   —     (30,390 )

Prepaid expenses

    1,249     194     (4,229 )   —     (2,786 )

Accounts payable

    (1,634 )   (5,014 )   1,345     —     (5,303 )

Accrued expenses

    (6,374 )   (5,328 )   (6,106 )   —     (17,808 )

Other noncurrent liabilities

    2,592     —     (1,462 )   —     1,130  

Income taxes payable (refundable)

    17,232     17     (3,018 )   179     14,410  
                       

Net cash flows from operating activities

    99,749     13,036     7,845     (56,018 )   64,612  
                       

Cash flows from investing activities:

                               

Purchase of property, plant and equipment

    (9,589 )   (7,084 )   (5,172 )   —     (21,845 )

Proceeds from sale of assets

    35     —     29,380     —     29,415  

Acquisitions, net of cash aquired

    —     —     (54,714 )         (54,714 )

Other, net

    (39,236 )   (54,761 )   40,768     56,018     2,789  
                       

Net cash flows from investing activities

    (48,790 )   (61,845 )   10,262     56,018     (44,355 )
                       

Cash flows from financing activities:

                               

Net borrowings under short-term agreements

    —     —     (573 )   —     (573 )

Proceeds from long-term borrowings

    —     —     —     —     —  

Principal payments on long-term borrowings

    —     —     (16 )   —     (16 )

Dividends paid

    (6,001 )   —     —     —     (6,001 )

Dividends to noncontrolling interest

    —     —     (1,476 )   —     (1,476 )

Proceeds from exercises under stock plans

    11,697     —     —     —     11,697  

Excess tax benefits from stock option exercises

    226     —     —     —     226  

Purchase of common treasury shares—stock plan exercises:

    (12,375 )   —     —     —     (12,375 )
                       

Net cash flows from financing activities

    (6,453 )   —     (2,065 )   —     (8,518 )
                       

Effect of exchange rate changes on cash and cash equivalents

    —     107     (5,979 )   —     (5,872 )
                       

Net change in cash and cash equivalents

    44,506     (48,702 )   10,063     —     5,867  

Cash and cash equivalents—beginning of year

    40,926     83,203     290,000     —     414,129  
                       

Cash and cash equivalents—end of period

  $ 85,432   $ 34,501   $ 300,063   $ —   $ 419,996  
                       

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Thirteen Weeks Ended March 31, 2012

 
  Parent   Guarantors   Non-Guarantors   Eliminations   Total  

Cash flows from operations:

                               

Net earnings

  $ 52,325   $ 22,072   $ 23,232   $ (45,041 ) $ 52,588  

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

                               

Depreciation and amortization

    4,595     3,171     9,574     —     17,340  

Stock-based compensation

    1,563     —     —     —     1,563  

Defined benefit pension plan expense

    —     —     1,021     —     1,021  

Contribution to defined benefit pension plan

    —     —     (10,750 )   —     (10,750 )

Loss (gain) on sale of property, plant and equipment

    (9 )   7     1     —     (1 )

Equity in earnings of nonconsolidated subsidiaries

    (32 )   —     (1,656 )   —     (1,688 )

Deferred income taxes

    194     1,170     (627 )   —     737  

Changes in assets and liabilities:

                               

Receivables

    (17,142 )   (6,418 )   858     —     (22,702 )

Inventories

    (2,780 )   (5,263 )   (32,167 )   (822 )   (41,032 )

Prepaid expenses

    1,482     64     (2,598 )   —     (1,052 )

Accounts payable

    (1,667 )   (129 )   (3,649 )   —     (5,445 )

Accrued expenses

    1,379     (5,264 )   (3,532 )   —     (7,417 )

Other noncurrent liabilities

    1,190     —     (872 )   —     318  

Income taxes payable (refundable)

    3,684     10     (46 )   —     3,648  
                       

Net cash flows from operations

    44,782     9,420     (21,211 )   (45,863 )   (12,872 )
                       

Cash flows from investing activities:

                               

Purchase of property, plant and equipment

    (9,189 )   (2,784 )   (8,161 )   —     (20,134 )

Proceeds from sale of assets

    11     1     33     —     45  

Other, net

    (36,517 )   (8,934 )   2,261     45,863     2,673  
                       

Net cash flows from investing activities

    (45,695 )   (11,717 )   (5,867 )   45,863     (17,416 )
                       

Cash flows from financing activities:

                               

Net borrowings under short-term agreements

    —     —     725     —     725  

Proceeds from long-term borrowings

    3,000     —     —     —     3,000  

Principal payments on long-term borrowings

    (3,000 )   —     (35 )   —     (3,035 )

Dividends paid

    (4,767 )   —     —     —     (4,767 )

Dividend to noncontrolling interests

    —     —     (431 )   —     (431 )

Proceeds from exercises under stock plans

    8,230     —     —     —     8,230  

Excess tax benefits from stock option exercises

    2,134     —     —     —     2,134  

Purchase of common treasury shares—stock plan exercises

    (7,747 )   —     —     —     (7,747 )
                       

Net cash flows from financing activities

    (2,150 )   —     259     —     (1,891 )
                       

Effect of exchange rate changes on cash and cash equivalents

    —     445     8,408     —     8,853  
                       

Net change in cash and cash equivalents

    (3,063 )   (1,852 )   (18,411 )   —     (23,326 )

Cash and cash equivalents—beginning of year

    27,545     18,257     317,092     —     362,894  
                       

Cash and cash equivalents—end of period

  $ 24,482   $ 16,405   $ 298,681   $ —   $ 339,568