GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

The Company has three tranches of senior unsecured notes. All of the senior notes are guaranteed, jointly, severally, fully and unconditionally (subject to certain customary release provisions, including sale of the subsidiary guarantor, or sale of all or substantially all of its assets) by certain of the Company’s current and future direct and indirect domestic and foreign subsidiaries (collectively the “Guarantors”), excluding its other current domestic and foreign subsidiaries which do not guarantee the debt (collectively referred to as the “Non-Guarantors”). All Guarantors are 100% owned by the parent company. The Company is the issuer.

Consolidated financial information for the Company ("Parent"), the Guarantor subsidiaries and the Non-Guarantor subsidiaries is as follows:

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Year ended December 31, 2016



	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	1,126,985		$	390,756		$	1,195,812		$	(191,877	)	$	2,521,676
Cost of sales	837,616			285,924			932,609			(190,716		)	1,865,433
Gross profit	289,369			104,832			263,203			(1,161		)	656,243
Selling, general and administrative expenses	184,493			46,244			182,002			—			412,739
Operating income	104,876			58,588			81,201			(1,161		)	243,504
Other income (expense):
Interest expense	(43,703		)	(10		)	(696		)	—			(44,409		)
Interest income	273			112			2,720			—			3,105
Other	1,480			77			16,697			—			18,254
	(41,950		)	179			18,721			—			(23,050		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	62,926			58,767			99,922			(1,161		)	220,454
Income tax expense (benefit):
Current	24,539			20,270			21,262			(323		)	65,748
Deferred	6,216			—			(29,901		)	—			(23,685		)
	30,755			20,270			(8,639		)	(323		)	42,063
Earnings before equity in earnings of nonconsolidated subsidiaries	32,171			38,497			108,561			(838		)	178,391
Equity in earnings of nonconsolidated subsidiaries	141,061			66,128			—			(207,189		)	—
Net earnings	173,232			104,625			108,561			(208,027		)	178,391
Less: Earnings attributable to noncontrolling interests	—			—			(5,159		)	—			(5,159		)
Net earnings attributable to Valmont Industries, Inc	$	173,232		$	104,625		$	103,402		$	(208,027	)	$	173,232

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

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Year ended December 26, 2015



	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	1,169,674		$	423,928		$	1,238,609		$	(213,287	)	$	2,618,924
Cost of sales	890,242			332,847			987,729			(212,927		)	1,997,891
Gross profit	279,432			91,081			250,880			(360		)	621,033
Selling, general and administrative expenses	194,335			45,549			207,484			—			447,368
Impairment of goodwill and intangible assets	—			—			41,970			—			41,970
Operating income	85,097			45,532			1,426			(360		)	131,695
Other income (expense):
Interest expense	(43,552		)	—			(1,069		)	—			(44,621		)
Interest income	9			103			3,184			—			3,296
Other	(2,374		)	60			4,951			—			2,637
	(45,917		)	163			7,066			—			(38,688		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	39,180			45,695			8,492			(360		)	93,007
Income tax expense (benefit):
Current	863			23,261			18,446			(1		)	42,569
Deferred	10,042			(6,224		)	1,040			—			4,858
	10,905			17,037			19,486			(1		)	47,427
Earnings before equity in earnings of nonconsolidated subsidiaries	28,275			28,658			(10,994		)	(359		)	45,580
Equity in earnings of nonconsolidated subsidiaries	11,842			(39,418		)	(247		)	27,576			(247		)
Net earnings	40,117			(10,760		)	(11,241		)	27,217			45,333
Less: Earnings attributable to noncontrolling interests	—			—			(5,216		)	—			(5,216		)
Net earnings attributable to Valmont Industries, Inc	$	40,117		$	(10,760	)	$	(16,457	)	$	27,217		$	40,117

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

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Year ended December 27, 2014



	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	1,392,509		$	496,326		$	1,456,053		$	(221,745	)	$	3,123,143
Cost of sales	1,040,808			371,639			1,124,813			(222,234		)	2,315,026
Gross profit	351,701			124,687			331,240			489			808,117
Selling, general and administrative expenses	196,987			49,171			204,243			—			450,401
Operating income	154,714			75,516			126,997			489			357,716
Other income (expense):
Interest expense	(34,267		)	(5		)	(2,518		)	—			(36,790		)
Interest income	38			359			5,649			—			6,046
Costs associated with refinancing of debt	(38,705		)	—			—			—			(38,705		)
Other	2,021			(511		)	(5,594		)	—			(4,084		)
	(70,913		)	(157		)	(2,463		)	—			(73,533		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	83,801			75,359			124,534			489			284,183
Income tax expense (benefit):
Current	30,330			25,277			33,898			138			89,643
Deferred	(1,474		)	1,866			4,859			—			5,251
	28,856			27,143			38,757			138			94,894
Earnings before equity in earnings of nonconsolidated subsidiaries	54,945			48,216			85,777			351			189,289
Equity in earnings of nonconsolidated subsidiaries	129,031			19,509			63			(148,574		)	29
Net earnings	183,976			67,725			85,840			(148,223		)	189,318
Less: Earnings attributable to noncontrolling interests	—			—			(5,342		)	—			(5,342		)
Net earnings attributable to Valmont Industries, Inc	$	183,976		$	67,725		$	80,498		$	(148,223	)	$	183,976

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Year ended December 31, 2016



	Parent			Guarantors		Non- Guarantors			Eliminations			Total
Net earnings	$	173,232		$	104,625	$	108,561		$	(208,027	)	$	178,391
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gains (losses)	—			49		(58,364		)	—			(58,315		)
Gain (loss) on hedging activity:
Unrealized gain on net investment hedge	4,226			—		—			—			4,226
Amortization cost included in interest expense	74			—		—			—			74
	4,300			—		—			—			4,300
Actuarial gain (loss) in defined benefit pension plan liability	—			—		(24,141		)	—			(24,141		)
Equity in other comprehensive income	(83,252		)	—		—			83,252			—
Other comprehensive income (loss)	(78,952		)	49		(82,505		)	83,252			(78,156		)
Comprehensive income (loss)	94,280			104,674		26,056			(124,775		)	100,235
Comprehensive income attributable to noncontrolling interests	—			—		(6,144		)	—			(6,144		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	94,280		$	104,674	$	19,912		$	(124,775	)	$	94,091

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Year ended December 26, 2015



	Parent			Guarantors			Non- Guarantors			Eliminations		Total
Net earnings	$	40,117		$	(10,760	)	$	(11,241	)	$	27,217	$	45,333
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gains (losses)	—			(15,166		)	(81,528		)	—		(96,694		)
	—			(15,166		)	(81,528		)	—		(96,694		)
Gain (loss) on cash flow hedge:
Amortization cost included in interest expense	74			—			—			—		74
Realized (gain) loss included in net earnings	(3,130		)	—			—			—		(3,130		)
Unrealized gain on cash flow hedges	2,855			—			—			—		2,855
	(201		)	—			—			—		(201		)
Actuarial gain (loss) in defined benefit pension plan liability	—			—			(40,274		)	—		(40,274		)
Equity in other comprehensive income	(132,584		)	—			—			132,584		—
Other comprehensive income (loss)	(132,785		)	(15,166		)	(121,802		)	132,584		(137,169		)
Comprehensive income (loss)	(92,668		)	(25,926		)	(133,043		)	159,801		(91,836		)
Comprehensive income attributable to noncontrolling interests	—			—			(832		)	—		(832		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	(92,668	)	$	(25,926	)	$	(133,875	)	$	159,801	$	(92,668	)

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Year ended December 27, 2014



	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net earnings	$	183,976		$	67,725		$	85,840		$	(148,223	)	$	189,318
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gains (losses)	—			(51,536		)	(30,739		)	—			(82,275		)
	—			(51,536		)	(30,739		)	—			(82,275		)
Gain (loss) on cash flow hedge:
Amortization cost included in interest expense	594			—			—			—			594
Realized (gain) loss included in net earnings	983			—			—			—			983
Unrealized gain on cash flow hedges	4,837			—			—			—			4,837
	6,414			—			—			—			6,414
Actuarial gain (loss) in defined benefit pension plan liability	—			—			(13,709		)	—			(13,709		)
Equity in other comprehensive income	(93,162		)	—			—			93,162			—
Other comprehensive income (loss)	(86,748		)	(51,536		)	(44,448		)	93,162			(89,570		)
Comprehensive income	97,228			16,189			41,392			(55,061		)	99,748
Comprehensive income attributable to noncontrolling interests	—			—			(2,520		)	—			(2,520		)
Comprehensive income attributable to Valmont Industries, Inc.	$	97,228		$	16,189		$	38,872		$	(55,061	)	$	97,228

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

CONDENSED CONSOLIDATED BALANCE SHEETS

December 31, 2016



	Parent			Guarantors			Non- Guarantors			Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	67,225		$	6,071		$	326,652		$	—		$	399,948
Receivables, net	134,351			60,522			244,469			—			439,342
Inventories	126,669			45,457			182,056			(4,154		)	350,028
Prepaid expenses, restricted cash, and other assets	13,271			880			43,146			—			57,297
Refundable income taxes	6,601			—			—			—			6,601
Total current assets	348,117			112,930			796,323			(4,154		)	1,253,216
Property, plant and equipment, at cost	547,076			153,596			405,064			—			1,105,736
Less accumulated depreciation and amortization	352,960			76,776			157,665			—			587,401
Net property, plant and equipment	194,116			76,820			247,399			—			518,335
Goodwill	20,108			110,561			190,441			—			321,110
Other intangible assets	184			35,953			108,241			—			144,378
Investment in subsidiaries and intercompany accounts	1,279,413			901,758			1,089,369			(3,270,540		)	—
Other assets	43,880			—			110,812			—			154,692
Total assets	$	1,885,818		$	1,238,022		$	2,542,585		$	(3,274,694	)	$	2,391,731
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	—		$	—		$	851		$	—		$	851
Notes payable to banks	—			—			746			—			746
Accounts payable	52,272			15,732			109,484			—			177,488
Accrued employee compensation and benefits	34,508			7,243			30,653			—			72,404
Accrued expenses	30,261			15,242			44,411			—			89,914
Dividends payable	8,445			—			—			—			8,445
Total current liabilities	125,486			38,217			186,145			—			349,848
Deferred income taxes	22,481			—			13,322			—			35,803
Long-term debt, excluding current installments	751,251			—			3,544			—			754,795
Defined benefit pension liability	—			—			209,470			—			209,470
Deferred compensation	39,476			—			4,843			—			44,319
Other noncurrent liabilities	3,642			5			11,263			—			14,910
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	1,874,722			646,749			603,338			(1,250,087		)	1,874,722
Accumulated other comprehensive income (loss)	(346,359		)	(64,313		)	(284,663		)	348,976			(346,359		)
Treasury stock	(612,781		)	—			—			—			(612,781		)
Total Valmont Industries, Inc. shareholders’ equity	943,482			1,199,800			2,074,894			(3,274,694		)	943,482
Noncontrolling interest in consolidated subsidiaries	—			—			39,104			—			39,104
Total shareholders’ equity	943,482			1,199,800			2,113,998			(3,274,694		)	982,586
Total liabilities and shareholders’ equity	$	1,885,818		$	1,238,022		$	2,542,585		$	(3,274,694	)	$	2,391,731

(20) 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, restricted cash, and other assets	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

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Year ended December 31, 2016



	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	173,232		$	104,625		$	108,561		$	(208,027	)	$	178,391
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	27,096			13,316			42,005			—			82,417
Noncash loss on trading securities	—			—			586			—			586
Increase in restricted cash - pension plan trust	—			—			(13,652		)	—			(13,652		)
Impairment of property, plant and equipment	—			—			1,099			—			1,099
Stock-based compensation	9,931			—			—			—			9,931
Change in fair value of contingent consideration	—			—			(3,242		)	—			(3,242		)
Defined benefit pension plan expense (benefit)	—			—			1,870			—			1,870
Contribution to defined benefit pension plan	—			—			(1,488		)	—			(1,488		)
(Gain) loss on sale of property, plant and equipment	165			103			363			—			631
Equity in earnings in nonconsolidated subsidiaries	(141,061		)	(66,128		)	—			207,189			—
Deferred income taxes	6,216			—			(29,901		)	—			(23,685		)
Changes in assets and liabilities (net of acquisitions):
Receivables	(3,610		)	5,865			22,367			—			24,622
Inventories	5,554			(7,078		)	(11,097		)	1,160			(11,461		)
Prepaid expenses	(1,250		)	(114		)	2,502			—			1,138
Accounts payable	(14,452		)	2,052			12,504			—			104
Accrued expenses	1,423			(6,664		)	(6,966		)	—			(12,207		)
Other noncurrent liabilities	(2,333		)	5			(21,552		)	—			(23,880		)
Income taxes payable (refundable)	32,873			(16,567		)	(8,312		)	—			7,994
Net cash flows from operating activities	93,784			29,415			95,647			322			219,168
Cash flows from investing activities:
Purchase of property, plant and equipment	(9,031		)	(22,320		)	(26,569		)	—			(57,920		)
Proceeds from sale of assets	44			102			4,980			—			5,126
Other, net	(633		)	(5,085		)	5,785			(322		)	(255		)
Net cash flows from investing activities	(9,620		)	(27,303		)	(15,804		)	(322		)	(53,049		)
Cash flows from financing activities:
Net payments under short-term agreements	—			—			(200		)	—			(200		)
Principal payments on long-term borrowings	(215		)	—			(1,791		)	—			(2,006		)
Dividends paid	(34,053		)	—			—			—			(34,053		)
Purchase of noncontrolling interest	—			—			(11,009		)	—			(11,009		)
Dividends to noncontrolling interest	—			—			(2,938		)	—			(2,938		)
Proceeds from exercises under stock plans	11,153			—			—			—			11,153
Purchase of treasury shares	(53,800		)	—			—			—			(53,800		)
Purchase of common treasury shares - stock plan exercises	(2,305		)	—			—			—			(2,305		)
Net cash flows from financing activities	(79,220		)	—			(15,938		)	—			(95,158		)
Effect of exchange rate changes on cash and cash equivalents	—			(49		)	(20,038		)	—			(20,087		)
Net change in cash and cash equivalents	4,944			2,063			43,867			—			50,874
Cash and cash equivalents—beginning of year	62,281			4,008			282,785			—			349,074
Cash and cash equivalents—end of period	$	67,225		$	6,071		$	326,652		$	—		$	399,948

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Year ended December 26, 2015



	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	40,117		$	(10,760	)	$	(11,241	)	$	27,217		$	45,333
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	29,433			12,611			49,100			—			91,144
Noncash loss on trading securities	—			—			4,555			—			4,555
Impairment of property, plant and equipment	7,486			542			11,808			—			19,836
Impairment of goodwill & intangibles assets	—			—			41,970			—			41,970
Stock-based compensation	7,244			—			—			—			7,244
Defined benefit pension plan expense (benefit)	—			—			(610		)	—			(610		)
Contribution to defined benefit pension plan	—			—			(16,500		)	—			(16,500		)
(Gain) loss on sale of property, plant and equipment	983			319			1,025			—			2,327
Equity in earnings in nonconsolidated subsidiaries	(11,842		)	39,418			247			(27,576		)	247
Deferred income taxes	10,042			(6,224		)	1,040			—			4,858
Changes in assets and liabilities (net of acquisitions):
Receivables	27,576			3,547			19,144			—			50,267
Inventories	(4,364		)	18,130			(12,698		)	2,228			3,296
Prepaid expenses	2,337			(172		)	8,679			—			10,844
Accounts payable	6,831			(1,970		)	(11,666		)	—			(6,805		)
Accrued expenses	(16,485		)	17,713			7,366			324			8,918
Other noncurrent liabilities	177			—			(1,941		)	—			(1,764		)
Income taxes payable (refundable)	7,895			(306		)	(482		)	—			7,107
Net cash flows from operating activities	107,430			72,848			89,796			2,193			272,267
Cash flows from investing activities:
Purchase of property, plant and equipment	(14,362		)	(7,718		)	(23,388		)	—			(45,468		)
Proceeds from sale of assets	3,996			302			(1,049		)	—			3,249
Acquisitions, net of cash acquired	—			(12,778		)	—			—			(12,778		)
Other, net	72,866			(50,447		)	(13,400		)	(2,193		)	6,826
Net cash flows from investing activities	62,500			(70,641		)	(37,837		)	(2,193		)	(48,171		)
Cash flows from financing activities:
Net payments under short-term agreements	—			—			(12,853		)	—			(12,853		)
Proceeds from long-term borrowings	68,000			—			—			—			68,000
Principal payments on long-term borrowings	(68,213		)	—			(885		)	—			(69,098		)
Dividends paid	(35,357		)	—			—			—			(35,357		)
Intercompany dividends	26,115			—			(26,115		)	—			—
Dividends to noncontrolling interest	—			—			(2,634		)	—			(2,634		)
Proceeds from exercises under stock plans	13,075			—			—			—			13,075
Excess tax benefits from stock option exercises	1,699			—			—			—			1,699
Purchase of treasury shares	(168,983		)	—			—			—			(168,983		)
Purchase of common treasury shares - stock plan exercises	(13,854		)	—			—			—			(13,854		)
Net cash flows from financing activities	(177,518		)	—			(42,487		)	—			(220,005		)
Effect of exchange rate changes on cash and cash equivalents	—			(356		)	(26,240		)	—			(26,596		)
Net change in cash and cash equivalents	(7,588		)	1,851			(16,768		)	—			(22,505		)
Cash and cash equivalents—beginning of year	69,869			2,157			299,553			—			371,579
Cash and cash equivalents—end of period	$	62,281		$	4,008		$	282,785		$	—		$	349,074

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Year ended December 27, 2014



	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	183,976		$	67,725		$	85,840		$	(148,223	)	$	189,318
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	24,509			12,926			51,893			—			89,328
Non-cash loss on trading securities	—			—			3,795			—			3,795
Non-cash debt refinancing costs	(2,478		)	—			—			—			(2,478		)
Stock-based compensation	6,730			—			—			—			6,730
Defined benefit pension plan expense	—			—			2,638			—			2,638
Contribution to defined benefit pension plan	—			—			(18,173		)	—			(18,173		)
Change in fair value of contingent consideration	—			—			(4,300		)	—			(4,300		)
(Gain) loss on sale of property, plant and equipment	145			143			104			—			392
Equity in earnings in nonconsolidated subsidiaries	(129,031		)	(19,509		)	(63		)	148,574			(29		)
Deferred income taxes	(1,474		)	1,866			4,859			—			5,251
Changes in assets and liabilities (net of acquisitions):
Receivables	(19,136		)	40,186			(20,143		)	—			907
Inventories	5,094			15,317			1,047			—			21,458
Prepaid expenses	(2,352		)	429			(11,671		)	—			(13,594		)
Accounts payable	(2,260		)	(5,212		)	(26,849		)	—			(34,321		)
Accrued expenses	(21,448		)	(9,590		)	(3,740		)	—			(34,778		)
Other noncurrent liabilities	622			—			1,133			—			1,755
Income taxes payable	(24,945		)	(19,417		)	4,559			—			(39,803		)
Net cash flows from operating activities	17,952			84,864			70,929			351			174,096
Cash flows from investing activities:
Purchase of property, plant and equipment	(41,260		)	(2,823		)	(28,940		)	—			(73,023		)
Acquisitions, net of cash acquired	—			—			(185,710		)	—			(185,710		)
Proceeds from sale of assets	43			126			2,320			—			2,489
Other, net	34,735			(73,799		)	38,796			(351		)	(619		)
Net cash flows from investing activities	(6,482		)	(76,496		)	(173,534		)	(351		)	(256,863		)
Cash flows from financing activities:
Net payments under short-term agreements	—			—			(4,472		)	—			(4,472		)
Proceeds from long-term borrowings	652,540			—			(329		)	—			652,211
Principal payments on long-term obligations	(356,994		)	—			(864		)	—			(357,858		)
Settlement of financial derivative	4,981			—			—			—			4,981
Dividends paid	(32,443		)	—			—			—			(32,443		)
Intercompany dividends	116,995			(36,600		)	(80,395		)	—			—
Intercompany interest on long-term note	—			648			(648		)	—			—
Intercompany capital contribution	(143,000		)	—			143,000			—			—
Dividends to noncontrolling interest	—			—			(2,919		)	—			(2,919		)
Debt issuance fees	(7,644		)	—			—			—			(7,644		)
Proceeds from exercises under stock plans	14,572			—			—			—			14,572
Excess tax benefits from stock option exercises	4,264			—			—			—			4,264
Purchase of treasury shares	(395,045		)	—			—			—			(395,045		)
Purchase of common treasury shares - stock plan exercises	(15,403		)	—			—			—			(15,403		)
Net cash flows from financing activities	(157,177		)	(35,952		)	53,373			—			(139,756		)
Effect of exchange rate changes on cash and cash equivalents	—			(56		)	(19,548		)	—			(19,604		)
Net change in cash and cash equivalents	(145,707		)	(27,640		)	(68,780		)	—			(242,127		)
Cash and cash equivalents—beginning of year	215,576			29,797			368,333			—			613,706
Cash and cash equivalents—end of year	$	69,869		$	2,157		$	299,553		$	—		$	371,579