GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables)

3 Months Ended

Apr. 01, 2017

GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

Condensed Consolidated Statements of Earnings

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Thirteen weeks ended April 1, 2017

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	293,265		$	117,225		$	295,296		$	(68,313	)	$	637,473
Cost of sales	216,486			91,489			232,490			(67,597		)	472,868
Gross profit	76,779			25,736			62,806			(716		)	164,605
Selling, general and administrative expenses	50,217			11,660			38,226			—			100,103
Operating income	26,562			14,076			24,580			(716		)	64,502
Other income (expense):
Interest expense	(11,142		)	(2,266		)	(162		)	2,266			(11,304		)
Interest income	151			14			3,028			(2,266		)	927
Other	1,354			16			(171		)	—			1,199
	(9,637		)	(2,236		)	2,695			—			(9,178		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	16,925			11,840			27,275			(716		)	55,324
Income tax expense (benefit):
Current	(4,887		)	5,320			1,109			(244		)	1,298
Deferred	11,327			—			2,738			—			14,065
	6,440			5,320			3,847			(244		)	15,363
Earnings before equity in earnings of nonconsolidated subsidiaries	10,485			6,520			23,428			(472		)	39,961
Equity in earnings of nonconsolidated subsidiaries	28,494			(980		)	—			(27,514		)	—
Net earnings	38,979			5,540			23,428			(27,986		)	39,961
Less: Earnings attributable to noncontrolling interests	—			—			(982		)	—			(982		)
Net earnings attributable to Valmont Industries, Inc	$	38,979		$	5,540		$	22,446		$	(27,986	)	$	38,979

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

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Thirteen weeks ended March 26, 2016

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
Net sales	$	285,038		$	91,526	$	272,114		$	(52,073	)	$	596,605
Cost of sales	207,861			67,862		211,393			(51,480		)	435,636
Gross profit	77,177			23,664		60,721			(593		)	160,969
Selling, general and administrative expenses	42,494			11,430		44,680			—			98,604
Operating income	34,683			12,234		16,041			(593		)	62,365
Other income (expense):
Interest expense	(10,930		)	—		(124		)	—			(11,054		)
Interest income	67			25		719			—			811
Other	(375		)	12		(1,315		)	—			(1,678		)
	(11,238		)	37		(720		)	—			(11,921		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	23,445			12,271		15,321			(593		)	50,444
Income tax expense (benefit):
Current	5,583			2,572		2,479			(120		)	10,514
Deferred	2,419			2,149		1,191			—			5,759
	8,002			4,721		3,670			(120		)	16,273
Earnings before equity in earnings of nonconsolidated subsidiaries	15,443			7,550		11,651			(473		)	34,171
Equity in earnings of nonconsolidated subsidiaries	17,526			2,113		—			(19,639		)	—
Net earnings	32,969			9,663		11,651			(20,112		)	34,171
Less: Earnings attributable to noncontrolling interests	—			—		(1,202		)	—			(1,202		)
Net earnings attributable to Valmont Industries, Inc	$	32,969		$	9,663	$	10,449		$	(20,112	)	$	32,969

Condensed Consolidated Statements of Comprehensive Income

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirteen weeks ended April 1, 2017

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
Net earnings	$	38,979		$	5,540	$	23,428		$	(27,986	)	$	39,961
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—			69,383		(49,993		)	—			19,390
Unrealized gain/(loss) on hedging activities:
Net investment hedge	(526		)	—		—			—			(526		)
Amortization cost included in interest expense	19			—		—			—			19
Equity in other comprehensive income	20,613			—		—			(20,613		)	—
Other comprehensive income (loss)	20,106			69,383		(49,993		)	(20,613		)	18,883
Comprehensive income (loss)	59,085			74,923		(26,565		)	(48,599		)	58,844
Comprehensive income attributable to noncontrolling interests	—			—		241			—			241
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	59,085		$	74,923	$	(26,324	)	$	(48,599	)	$	59,085

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirteen weeks ended March 26, 2016

	Parent		Guarantors			Non- Guarantors			Eliminations			Total
Net earnings	$	32,969	$	9,663		$	11,651		$	(20,112	)	$	34,171
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—		(178		)	2,691			—			2,513
Unrealized gain/(loss) on hedging activities:
Amortization cost included in interest expense	19		—			—			—			19
Equity in other comprehensive income	1,388		—			—			(1,388		)	—
Other comprehensive income (loss)	1,407		(178		)	2,691			(1,388		)	2,532
Comprehensive income (loss)	34,376		9,485			14,342			(21,500		)	36,703
Comprehensive income attributable to noncontrolling interests	—		—			(2,327		)	—			(2,327		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	34,376	$	9,485		$	12,015		$	(21,500	)	$	34,376

Condensed Consolidated Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS

April 1, 2017

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	93,149		$	5,479	$	326,588		$	—		$	425,216
Receivables, net	133,907			74,221		246,916			—			455,044
Inventories	143,773			49,322		200,930			(4,869		)	389,156
Prepaid expenses, restricted cash, and other assets	8,913			852		44,767			—			54,532
Refundable income taxes	7,325			—		—			—			7,325
Total current assets	387,067			129,874		819,201			(4,869		)	1,331,273
Property, plant and equipment, at cost	551,491			155,330		422,966			—			1,129,787
Less accumulated depreciation and amortization	359,317			79,023		171,789			—			610,129
Net property, plant and equipment	192,174			76,307		251,177			—			519,658
Goodwill	20,108			110,562		193,391			—			324,061
Other intangible assets	171			34,703		107,126			—			142,000
Investment in subsidiaries and intercompany accounts	1,319,342			1,171,413		1,299,723			(3,790,478		)	—
Other assets	45,976			—		103,920			—			149,896
Total assets	$	1,964,838		$	1,522,859	$	2,774,538		$	(3,795,347	)	$	2,466,888
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	—		$	—	$	860		$	—		$	860
Notes payable to banks	—			—		957			—			957
Accounts payable	54,551			17,559		122,415			—			194,525
Accrued employee compensation and benefits	32,084			5,774		27,805			—			65,663
Accrued expenses	45,272			13,014		53,945			—			112,231
Dividends payable	8,468			—		—			—			8,468
Total current liabilities	140,375			36,347		205,982			—			382,704
Deferred income taxes	24,693			—		14,337			—			39,030
Long-term debt, excluding current installments	751,148			180,863		10,339			(187,827		)	754,523
Defined benefit pension liability	—			—		187,276			—			187,276
Deferred compensation	41,327			—		5,240			—			46,567
Other noncurrent liabilities	4,456			5		11,047			—			15,508
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		1,107,531			(1,266,945		)	—
Retained earnings	1,906,161			683,203		880,319			(1,563,522		)	1,906,161
Accumulated other comprehensive income (loss)	(326,253		)	5,077		(334,656		)	329,579			(326,253		)
Treasury stock	(604,969		)	—		—			—			(604,969		)
Total Valmont Industries, Inc. shareholders’ equity	1,002,839			1,305,644		2,301,876			(3,607,520		)	1,002,839
Noncontrolling interest in consolidated subsidiaries	—			—		38,441			—			38,441
Total shareholders’ equity	1,002,839			1,305,644		2,340,317			(3,607,520		)	1,041,280
Total liabilities and shareholders’ equity	$	1,964,838		$	1,522,859	$	2,774,538		$	(3,795,347	)	$	2,466,888

(8) 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	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	(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

Condensed Consolidated Statements of Cash Flows

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Thirteen Weeks Ended April 1, 2017

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	38,979		$	5,540		$	23,428		$	(27,986	)	$	39,961
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	6,536			3,557			10,734			—			20,827
Noncash loss on trading securities	—			—			70			—			70
Stock-based compensation	2,494			—			—			—			2,494
Defined benefit pension plan expense	—			—			154			—			154
Contribution to defined benefit pension plan	—			—			(25,379		)	—			(25,379		)
Decrease in restricted cash - pension plan trust	—			—			12,568			—			12,568
Loss (gain) on sale of property, plant and equipment	(5		)	(2		)	(95		)	—			(102		)
Equity in earnings in nonconsolidated subsidiaries	(28,494		)	980			—			27,514			—
Deferred income taxes	11,327			—			2,738			—			14,065
Changes in assets and liabilities:
Receivables	1,116			(13,699		)	(146		)	—			(12,729		)
Inventories	(17,105		)	(3,865		)	(14,563		)	716			(34,817		)
Prepaid expenses and other assets	3,688			27			(13,513		)	—			(9,798		)
Accounts payable	2,278			1,826			10,020			—			14,124
Accrued expenses	12,588			(3,697		)	5,129			—			14,020
Other noncurrent liabilities	848			—			(236		)	—			612
Income taxes payable (refundable)	(9,839		)	22			9,730			—			(87		)
Net cash flows from operating activities	24,411			(9,311		)	20,639			244			35,983
Cash flows from investing activities:
Purchase of property, plant and equipment	(4,547		)	(1,797		)	(7,824		)	—			(14,168		)
Proceeds from sale of assets	7			6			289			—			302
Other, net	8,474			12,586			(22,531		)	(244		)	(1,715		)
Net cash flows from investing activities	3,934			10,795			(30,066		)	(244		)	(15,581		)
Cash flows from financing activities:
Net borrowings under short-term agreements	—			—			198			—			198
Principal payments on long-term borrowings				—			(215		)	—			(215		)
Dividends paid	(8,445		)	—			—			—			(8,445		)
Intercompany interest on long-term note	—			(2,263		)	2,263			—			—
Dividends to noncontrolling interest	—			—			(422		)	—			(422		)
Proceeds from exercises under stock plans	8,894			—			—			—			8,894
Purchase of common treasury shares - stock plan exercises	(2,870		)	—			—			—			(2,870		)
Net cash flows from financing activities	(2,421		)	(2,263		)	1,824			—			(2,860		)
Effect of exchange rate changes on cash and cash equivalents	—			187			7,539			—			7,726
Net change in cash and cash equivalents	25,924			(592		)	(64		)	—			25,268
Cash and cash equivalents—beginning of year	67,225			6,071			326,652			—			399,948
Cash and cash equivalents—end of period	$	93,149		$	5,479		$	326,588		$	—		$	425,216

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Thirteen Weeks Ended March 26, 2016

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	32,969		$	9,663		$	11,651		$	(20,112	)	$	34,171
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	6,857			3,277			10,464			—			20,598
Noncash loss on trading securities	—			—			995			—			995
Stock-based compensation	2,049			—			—			—			2,049
Defined benefit pension plan expense	—			—			384			—			384
Loss (gain) on sale of property, plant and equipment	(3		)	52			95			—			144
Equity in earnings in nonconsolidated subsidiaries	(17,526		)	(2,113		)	—			19,639			—
Deferred income taxes	2,419			2,149			1,191			—			5,759
Changes in assets and liabilities:
Receivables	2,027			12,003			6,314			—			20,344
Inventories	(6,367		)	(2,403		)	155			593			(8,022		)
Prepaid expenses	4,465			(38		)	(3,517		)	—			910
Accounts payable	(8,102		)	468			9,017			—			1,383
Accrued expenses	843			(7,732		)	(289		)	—			(7,178		)
Other noncurrent liabilities	916			—			(1,739		)	—			(823		)
Income taxes payable (refundable)	5,628			85			4,100			—			9,813
Net cash flows from operating activities	26,175			15,411			38,821			120			80,527
Cash flows from investing activities:
Purchase of property, plant and equipment	1,248			(8,630		)	(6,579		)	—			(13,961		)
Proceeds from sale of assets	104			(51		)	89			—			142
Other, net	11,332			(6,286		)	(7,248		)	(120		)	(2,322		)
Net cash flows from investing activities	12,684			(14,967		)	(13,738		)	(120		)	(16,141		)
Cash flows from financing activities:
Net borrowings under short-term agreements	—			—			1,352			—			1,352
Principal payments on long-term borrowings	—			—			(220		)	—			(220		)
Dividends paid	(8,571		)	—			—			—			(8,571		)
Proceeds from exercises under stock plans	1,289			—			—			—			1,289
Excess tax benefits from stock option exercises	(66		)	—			—			—			(66		)
Purchase of treasury shares	(16,939		)	—			—			—			(16,939		)
Purchase of common treasury shares - stock plan exercises	(219		)	—			—			—			(219		)
Net cash flows from financing activities	(24,506		)	—			1,132			—			(23,374		)
Effect of exchange rate changes on cash and cash equivalents	—			114			(2,486		)	—			(2,372		)
Net change in cash and cash equivalents	14,353			558			23,729			—			38,640
Cash and cash equivalents—beginning of year	62,281			4,008			282,785			—			349,074
Cash and cash equivalents—end of period	$	76,634		$	4,566		$	306,514		$	—		$	387,714