GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables)

6 Months Ended

Jun. 25, 2016

GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

Condensed Consolidated Statements of Earnings

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Thirteen weeks ended June 25, 2016

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	290,171		$	97,159		$	300,911		$	(47,992	)	$	640,249
Cost of sales	211,675			71,234			229,248			(47,025		)	465,132
Gross profit	78,496			25,925			71,663			(967		)	175,117
Selling, general and administrative expenses	44,530			11,080			47,701			—			103,311
Operating income	33,966			14,845			23,962			(967		)	71,806
Other income (expense):
Interest expense	(10,918		)	(3		)	(201		)	—			(11,122		)
Interest income	46			14			647			—			707
Other	699			15			538			—			1,252
	(10,173		)	26			984			—			(9,163		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	23,793			14,871			24,946			(967		)	62,643
Income tax expense (benefit):
Current	10,391			6,242			6,521			(409		)	22,745
Deferred	1,068			(2,149		)	(2,463		)	—			(3,544		)
	11,459			4,093			4,058			(409		)	19,201
Earnings before equity in earnings of nonconsolidated subsidiaries	12,334			10,778			20,888			(558		)	43,442
Equity in earnings of nonconsolidated subsidiaries	29,692			5,746			—			(35,438		)	—
Net earnings	42,026			16,524			20,888			(35,996		)	43,442
Less: Earnings attributable to noncontrolling interests	—			—			(1,416		)	—			(1,416		)
Net earnings attributable to Valmont Industries, Inc	$	42,026		$	16,524		$	19,472		$	(35,996	)	$	42,026

(8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Twenty-six weeks ended June 25, 2016

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	575,209		$	188,685		$	573,025		$	(100,065	)	$	1,236,854
Cost of sales	419,536			139,096			440,641			(98,505		)	900,768
Gross profit	155,673			49,589			132,384			(1,560		)	336,086
Selling, general and administrative expenses	87,024			22,510			92,381			—			201,915
Operating income	68,649			27,079			40,003			(1,560		)	134,171
Other income (expense):
Interest expense	(21,848		)	(3		)	(325		)	—			(22,176		)
Interest income	113			39			1,366			—			1,518
Other	324			27			(777		)	—			(426		)
	(21,411		)	63			264			—			(21,084		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	47,238			27,142			40,267			(1,560		)	113,087
Income tax expense (benefit):
Current	15,974			8,814			9,000			(529		)	33,259
Deferred	3,487			—			(1,272		)				2,215
	19,461			8,814			7,728			(529		)	35,474
Earnings before equity in earnings of nonconsolidated subsidiaries	27,777			18,328			32,539			(1,031		)	77,613
Equity in earnings of nonconsolidated subsidiaries	47,218			7,859						(55,077		)	—
Net earnings	74,995			26,187			32,539			(56,108		)	77,613
Less: Earnings attributable to noncontrolling interests	—			—			(2,618		)	—			(2,618		)
Net earnings attributable to Valmont Industries, Inc	$	74,995		$	26,187		$	29,921		$	(56,108	)	$	74,995

(8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Thirteen weeks ended June 27, 2015

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	311,156		$	102,090		$	322,555		$	(53,678	)	$	682,123
Cost of sales	232,779			78,149			254,666			(53,019		)	512,575
Gross profit	78,377			23,941			67,889			(659		)	169,548
Selling, general and administrative expenses	50,913			11,091			53,544			—			115,548
Operating income	27,464			12,850			14,345			(659		)	54,000
Other income (expense):
Interest expense	(10,894		)	—			(338		)	—			(11,232		)
Interest income	4			2			610			—			616
Other	(248		)	24			196			—			(28		)
	(11,138		)	26			468			—			(10,644		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	16,326			12,876			14,813			(659		)	43,356
Income tax expense (benefit):
Current	7,545			5,223			6,547			(179		)	19,136
Deferred	(1,650		)	(51		)	(3,518		)	—			(5,219		)
	5,895			5,172			3,029			(179		)	13,917
Earnings before equity in earnings of nonconsolidated subsidiaries	10,431			7,704			11,784			(480		)	29,439
Equity in earnings of nonconsolidated subsidiaries	17,442			876			—			(18,318		)	—
Net earnings	27,873			8,580			11,784			(18,798		)	29,439
Less: Earnings attributable to noncontrolling interests	—			—			(1,566		)	—			(1,566		)
Net earnings attributable to Valmont Industries, Inc	$	27,873		$	8,580		$	10,218		$	(18,798	)	$	27,873

(8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Twenty-six weeks ended June 27, 2015

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	640,287		$	198,038		$	624,791		$	(110,595	)	$	1,352,521
Cost of sales	482,646			153,045			491,651			(109,823		)	1,017,519
Gross profit	157,641			44,993			133,140			(772		)	335,002
Selling, general and administrative expenses	98,955			22,388			101,976			—			223,319
Operating income	58,686			22,605			31,164			(772		)	111,683
Other income (expense):
Interest expense	(21,726		)	—			(634		)	—			(22,360		)
Interest income	13			4			1,473			—			1,490
Other	(897		)	—			1,885			—			988
	(22,610		)	4			2,724			—			(19,882		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	36,076			22,609			33,888			(772		)	91,801
Income tax expense (benefit):
Current	8,937			9,850			12,344			(221		)	30,910
Deferred	3,819			(584		)	(3,290		)	—			(55		)
	12,756			9,266			9,054			(221		)	30,855
Earnings before equity in earnings of nonconsolidated subsidiaries	23,320			13,343			24,834			(551		)	60,946
Equity in earnings of nonconsolidated subsidiaries	35,292			5,181			—			(40,473		)	—
Net earnings	58,612			18,524			24,834			(41,024		)	60,946
Less: Earnings attributable to noncontrolling interests	—			—			(2,334		)	—			(2,334		)
Net earnings attributable to Valmont Industries, Inc	$	58,612		$	18,524		$	22,500		$	(41,024	)	$	58,612

Condensed Consolidated Statements of Comprehensive Income

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirteen weeks ended June 25, 2016

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
Net earnings	$	42,026		$	16,524	$	20,888		$	(35,996	)	$	43,442
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	2,925			29		(5,250		)	—			(2,296		)
Unrealized loss on cash flow hedge:
Amortization cost included in interest expense	19			—		—			—			19
Equity in other comprehensive income	(5,592		)	—		—			5,592			—
Other comprehensive income (loss)	(2,648		)	29		(5,250		)	5,592			(2,277		)
Comprehensive income (loss)	39,378			16,553		15,638			(30,404		)	41,165
Comprehensive income attributable to noncontrolling interests	—			—		(1,787		)	—			(1,787		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	39,378		$	16,553	$	13,851		$	(30,404	)	$	39,378

(8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Twenty-six weeks ended June 25, 2016

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net earnings	$	74,995		$	26,187		$	32,539		$	(56,108	)	$	77,613
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	2,925			(149		)	(2,559		)	—			217
Unrealized loss on cash flow hedge:
Amortization cost included in interest expense	38			—			—			—			38
Equity in other comprehensive income	(1,279		)	—			—			1,279			—
Other comprehensive income (loss)	1,684			(149		)	(2,559		)	1,279			255
Comprehensive income (loss)	76,679			26,038			29,980			(54,829		)	77,868
Comprehensive income attributable to noncontrolling interests	—			—			(4,114		)	—			(4,114		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	76,679		$	26,038		$	25,866		$	(54,829	)	$	73,754

(8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirteen weeks ended June 27, 2015

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
Net earnings	$	27,873		$	8,580	$	11,784		$	(18,798	)	$	29,439
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—			76		18,252			—			18,328
Unrealized loss on cash flow hedge:
Amortization cost included in interest expense	19			—		—			—			19
Actuarial gain (loss) in defined benefit pension plan liability	(301		)	—		1,052			—			751
Equity in other comprehensive income	18,978			—		—			(18,978		)	—
Other comprehensive income (loss)	18,696			76		19,304			(18,978		)	19,098
Comprehensive income (loss)	46,569			8,656		31,088			(37,776		)	48,537
Comprehensive income attributable to noncontrolling interests	—			—		(1,968		)	—			(1,968		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	46,569		$	8,656	$	29,120		$	(37,776	)	$	46,569

(8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Twenty-six weeks ended June 27, 2015

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net earnings	$	58,612		$	18,524		$	24,834		$	(41,024	)	$	60,946
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—			(8,812		)	(31,038		)	—			(39,850		)
Unrealized loss on cash flow hedge:
Amortization cost included in interest expense	37			—			—			—			37
Actuarial gain (loss) in defined benefit pension plan liability	(209		)	—			1,254			—			1,045
Equity in other comprehensive income	(36,903		)	—			—			36,903			—
Other comprehensive income (loss)	(37,075		)	(8,812		)	(29,784		)	36,903			(38,768		)
Comprehensive income (loss)	21,537			9,712			(4,950		)	(4,121		)	22,178
Comprehensive income attributable to noncontrolling interests	—			—			(641		)	—			(641		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	21,537		$	9,712		$	(5,591	)	$	(4,121	)	$	21,537

Condensed Consolidated Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS

June 25, 2016

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	62,149		$	4,022		$	278,175		$	—		$	344,346
Receivables, net	130,354			58,203			278,192			—			466,749
Inventories	140,981			38,542			197,137			(4,554		)	372,106
Prepaid expenses, restricted cash, and other assets	11,405			730			51,515			—			63,650
Refundable income taxes	20,441			—			—			—			20,441
Total current assets	365,330			101,497			805,019			(4,554		)	1,267,292
Property, plant and equipment, at cost	540,415			145,857			419,683			—			1,105,955
Less accumulated depreciation and amortization	345,295			74,076			160,237			—			579,608
Net property, plant and equipment	195,120			71,781			259,446			—			526,347
Goodwill	20,108			110,562			200,933			—			331,603
Other intangible assets	211			38,460			120,143			—			158,814
Investment in subsidiaries and intercompany accounts	1,268,543			852,048			1,090,615			(3,211,206		)	—
Other assets	40,034			3			71,780			—			111,817
Total assets	$	1,889,346		$	1,174,351		$	2,547,936		$	(3,215,760	)	$	2,395,873
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	—		$	—		$	889		$	—		$	889
Notes payable to banks	—			—			3,735			—			3,735
Accounts payable	53,254			13,601			116,271			—			183,126
Accrued employee compensation and benefits	26,945			5,919			33,762			—			66,626
Accrued expenses	31,118			17,073			46,967			—			95,158
Dividends payable	8,505			—			—			—			8,505
Total current liabilities	119,822			36,593			201,624			—			358,039
Deferred income taxes	13,173			—			22,368			—			35,541
Long-term debt, excluding current installments	751,448			—			5,095			—			756,543
Defined benefit pension liability	—			—			164,329			—			164,329
Deferred compensation	43,887			—			5,078			—			48,965
Other noncurrent liabilities	4,934			5			33,346			—			38,285
Shareholders’ equity:
Common stock of $1 par value	27,900			457,950			648,682			(1,106,632		)	27,900
Additional paid-in capital	—			159,414			1,107,536			(1,266,950		)	—
Retained earnings	1,790,120			584,900			530,930			(1,115,830		)	1,790,120
Accumulated other comprehensive income (loss)	(268,459		)	(64,511		)	(209,141		)	273,652			(268,459		)
Treasury stock	(593,479		)	—			—			—			(593,479		)
Total Valmont Industries, Inc. shareholders’ equity	956,082			1,137,753			2,078,007			(3,215,760		)	956,082
Noncontrolling interest in consolidated subsidiaries	—			—			38,089			—			38,089
Total shareholders’ equity	956,082			1,137,753			2,116,096			(3,215,760		)	994,171
Total liabilities and shareholders’ equity	$	1,889,346		$	1,174,351		$	2,547,936		$	(3,215,760	)	$	2,395,873

(8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

CONDENSED CONSOLIDATED BALANCE SHEETS

December 26, 2015

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	62,281		$	4,008		$	282,785		$	—		$	349,074
Receivables, net	130,741			66,387			269,315			—			466,443
Inventories	132,222			38,379			173,064			(2,993		)	340,672
Prepaid expenses	9,900			766			35,471			—			46,137
Refundable income taxes	24,526			—			—			—			24,526
Total current assets	359,670			109,540			760,635			(2,993		)	1,226,852
Property, plant and equipment, at cost	541,536			132,864			406,656			—			1,081,056
Less accumulated depreciation and amortization	334,471			69,956			144,140			—			548,567
Net property, plant and equipment	207,065			62,908			262,516			—			532,489
Goodwill	20,108			110,562			206,246			—			336,916
Other intangible assets	238			40,959			129,000			—			170,197
Investment in subsidiaries and intercompany accounts	1,239,228			813,779			939,177			(2,992,184		)	—
Other assets	40,067			—			85,861			—			125,928
Total assets	$	1,866,376		$	1,137,748		$	2,383,435		$	(2,995,177	)	$	2,392,382
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	215		$	—		$	862		$	—		$	1,077
Notes payable to banks	—			—			976			—			976
Accounts payable	66,723			13,680			99,580			—			179,983
Accrued employee compensation and benefits	32,272			6,347			31,735			—			70,354
Accrued expenses	31,073			22,802			51,718			—			105,593
Dividends payable	8,571			—			—			—			8,571
Total current liabilities	138,854			42,829			184,871			—			366,554
Deferred income taxes	9,686			—			25,983			—			35,669
Long-term debt, excluding current installments	751,765			—			5,153			—			756,918
Defined benefit pension liability	—			—			179,323			—			179,323
Deferred compensation	43,485			—			4,932			—			48,417
Other noncurrent liabilities	4,145			—			36,145			—			40,290
Shareholders’ equity:
Common stock of $1 par value	27,900			457,950			648,683			(1,106,633		)	27,900
Additional paid-in capital	—			159,414			1,107,536			(1,266,950		)	—
Retained earnings	1,729,679			541,917			354,727			(896,644		)	1,729,679
Accumulated other comprehensive income	(267,218		)	(64,362		)	(210,688		)	275,050			(267,218		)
Treasury stock	(571,920		)	—			—			—			(571,920		)
Total Valmont Industries, Inc. shareholders’ equity	918,441			1,094,919			1,900,258			(2,995,177		)	918,441
Noncontrolling interest in consolidated subsidiaries	—			—			46,770			—			46,770
Total shareholders’ equity	918,441			1,094,919			1,947,028			(2,995,177		)	965,211
Total liabilities and shareholders’ equity	$	1,866,376		$	1,137,748		$	2,383,435		$	(2,995,177	)	$	2,392,382

Condensed Consolidated Statements of Cash Flows

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Twenty-six Weeks Ended June 25, 2016

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	74,995		$	26,187		$	32,539		$	(56,108	)	$	77,613
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	13,705			6,591			20,508			—			40,804
Noncash loss on trading securities	—			—			1,035			—			1,035
Stock-based compensation	4,201			—			—			—			4,201
Defined benefit pension plan expense	—			—			959			—			959
Contribution to defined benefit pension plan	—			—			(712		)	—			(712		)
Increase in restricted cash - pension plan trust	—			—			(13,652		)	—			(13,652		)
Loss (gain) on sale of property, plant and equipment	(6		)	60			1,020			—			1,074
Equity in earnings in nonconsolidated subsidiaries	(47,218		)	(7,859		)	—			55,077			—
Deferred income taxes	3,487			—			(1,272		)	—			2,215
Changes in assets and liabilities:
Receivables	386			8,185			(5,629		)	—			2,942
Inventories	(8,757		)	(164		)	(21,974		)	1,560			(29,335		)
Prepaid expenses and other assets	(1,504		)	35			(3,390		)	—			(4,859		)
Accounts payable	(13,469		)	(79		)	14,978			—			1,430
Accrued expenses	(4,040		)	(6,158		)	(3,438		)	—			(13,636		)
Other noncurrent liabilities	868			5			(546		)	—			327
Income taxes payable (refundable)	19,033			(16,499		)	6,982			—			9,516
Net cash flows from operating activities	41,681			10,304			27,408			529			79,922
Cash flows from investing activities:
Purchase of property, plant and equipment	(1,240		)	(13,167		)	(11,612		)	—			(26,019		)
Proceeds from sale of assets	58			141			1,628			—			1,827
Other, net	918			2,641			(4,638		)	(529		)	(1,608		)
Net cash flows from investing activities	(264		)	(10,385		)	(14,622		)	(529		)	(25,800		)
Cash flows from financing activities:
Net borrowings under short-term agreements	—			—			2,593			—			2,593
Principal payments on long-term borrowings	(215		)	—			(444		)	—			(659		)
Dividends paid	(17,098		)	—			—			—			(17,098		)
Dividends to noncontrolling interest	—			—			(1,923		)	—			(1,923		)
Purchase of noncontrolling interest	(137		)	—			(10,872		)	—			(11,009		)
Proceeds from exercises under stock plans	5,975			—			—			—			5,975
Purchase of treasury shares	(28,621		)	—			—			—			(28,621		)
Purchase of common treasury shares - stock plan exercises	(1,453		)	—			—			—			(1,453		)
Net cash flows from financing activities	(41,549		)	—			(10,646		)	—			(52,195		)
Effect of exchange rate changes on cash and cash equivalents	—			95			(6,750		)	—			(6,655		)
Net change in cash and cash equivalents	(132		)	14			(4,610		)	—			(4,728		)
Cash and cash equivalents—beginning of year	62,281			4,008			282,785			—			349,074
Cash and cash equivalents—end of period	$	62,149		$	4,022		$	278,175		$	—		$	344,346

(8) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Continued)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Twenty-six Weeks Ended June 27, 2015

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	58,612		$	18,524		$	24,834		$	(41,024	)	$	60,946
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	14,983			6,278			26,500			—			47,761
Noncash loss on trading securities	—			—			4,582			—			4,582
Impairment of assets - restructuring activities	1,890			215			7,187			—			9,292
Stock-based compensation	7,466			—			(3,953		)	—			3,513
Defined benefit pension plan expense	—			—			(305		)	—			(305		)
Contribution to defined benefit pension plan	—			—			(15,735		)	—			(15,735		)
Gain on sale of property, plant and equipment	(8		)	97			453			—			542
Equity in earnings in nonconsolidated subsidiaries	(35,292		)	(5,181		)	—			40,473			—
Deferred income taxes	3,819			(584		)	(3,290		)	—			(55		)
Changes in assets and liabilities:
Receivables	12,153			13,807			6,551			—			32,511
Inventories	10,161			3,093			(41,000		)	—			(27,746		)
Prepaid expenses	305			(160		)	(3,232		)	—			(3,087		)
Accounts payable	(8,538		)	204			3,313			—			(5,021		)
Accrued expenses	(13,652		)	(46		)	7,267			—			(6,431		)
Other noncurrent liabilities	(2,729		)	—			4,490			—			1,761
Income taxes payable (refundable)	15,016			(5		)	806			—			15,817
Net cash flows from operating activities	64,186			36,242			18,468			(551		)	118,345
Cash flows from investing activities:
Purchase of property, plant and equipment	(7,065		)	(3,147		)	(14,546		)	—			(24,758		)
Proceeds from sale of assets	25			19			1,057			—			1,101
Other, net	24,268			(33,440		)	14,517			551			5,896
Net cash flows from investing activities	17,228			(36,568		)	1,028			551			(17,761		)
Cash flows from financing activities:
Net borrowings under short-term agreements	—			—			(5,890		)	—			(5,890		)
Proceeds from long-term borrowings	33,000			—			—			—			33,000
Principal payments on long-term borrowings	(33,212		)	—			(445		)	—			(33,657		)
Dividends paid	(17,956		)	—			—			—			(17,956		)
Dividends to noncontrolling interest	—			—			(1,669		)	—			(1,669		)
Proceeds from exercises under stock plans	9,454			—			—			—			9,454
Excess tax benefits from stock option exercises	1,394			—			—			—			1,394
Purchase of treasury shares	(121,020		)	—			—			—			(121,020		)
Purchase of common treasury shares - stock plan exercises	(10,490		)	—			—			—			(10,490		)
Net cash flows from financing activities	(138,830		)	—			(8,004		)	—			(146,834		)
Effect of exchange rate changes on cash and cash equivalents	—			(31		)	(7,775		)	—			(7,806		)
Net change in cash and cash equivalents	(57,416		)	(357		)	3,717			—			(54,056		)
Cash and cash equivalents—beginning of year	69,869			2,157			299,553			—			371,579
Cash and cash equivalents—end of period	$	12,453		$	1,800		$	303,270		$	—		$	317,523