GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2016

GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

Condensed Consolidated Statements of Earnings

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

Condensed Consolidated Statements of Comprehensive Income

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

Condensed Consolidated Balance Sheets

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

Condensed Consolidated Statements of Cash Flows

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