GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables)

9 Months Ended

Sep. 30, 2017

GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

Condensed Consolidated Statements of Earnings

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Thirteen weeks ended September 30, 2017

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	284,538		$	113,243		$	343,818		$	(60,820	)	$	680,779
Cost of sales	216,039			88,757			272,959			(60,570		)	517,185
Gross profit	68,499			24,486			70,859			(250		)	163,594
Selling, general and administrative expenses	46,451			12,046			45,174			—			103,671
Operating income	22,048			12,440			25,685			(250		)	59,923
Other income (expense):
Interest expense	(10,884		)	(3,989		)	(306		)	3,989			(11,190		)
Interest income	268			9			5,023			(3,989		)	1,311
Other	1,379			11			(873		)	—			517
	(9,237		)	(3,969		)	3,844			—			(9,362		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	12,811			8,471			29,529			(250		)	50,561
Income tax expense (benefit):
Current	9,030			3,082			9,059			(8		)	21,163
Deferred	(3,474		)	—			(3,794		)	—			(7,268		)
	5,556			3,082			5,265			(8		)	13,895
Earnings before equity in earnings of nonconsolidated subsidiaries	7,255			5,389			24,264			(242		)	36,666
Equity in earnings of nonconsolidated subsidiaries	27,953			9,965			—			(37,918		)	—
Net earnings	35,208			15,354			24,264			(38,160		)	36,666
Less: Earnings attributable to noncontrolling interests	—			—			(1,458		)	—			(1,458		)
Net earnings attributable to Valmont Industries, Inc	$	35,208		$	15,354		$	22,806		$	(38,160	)	$	35,208

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

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

For the Thirty-nine Weeks Ended September 30, 2017

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net sales	$	893,988		$	352,827		$	967,130		$	(182,956	)	$	2,030,989
Cost of sales	666,060			271,620			764,607			(182,777		)	1,519,510
Gross profit	227,928			81,207			202,523			(179		)	511,479
Selling, general and administrative expenses	143,590			35,555			129,619			—			308,764
Operating income	84,338			45,652			72,904			(179		)	202,715
Other income (expense):
Interest expense	(32,672		)	(10,040		)	(640		)	10,040			(33,312		)
Interest income	563			33			12,649			(10,040		)	3,205
Other	3,900			42			(2,258		)	—			1,684
	(28,209		)	(9,965		)	9,751			—			(28,423		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	56,129			35,687			82,655			(179		)	174,292
Income tax expense (benefit):
Current	19,487			13,184			17,612			(19		)	50,264
Deferred	2,065			—			(1,986		)	—			79
	21,552			13,184			15,626			(19		)	50,343
Earnings before equity in earnings of nonconsolidated subsidiaries	34,577			22,503			67,029			(160		)	123,949
Equity in earnings of nonconsolidated subsidiaries	85,274			15,281			—			(100,555		)	—
Net earnings	119,851			37,784			67,029			(100,715		)	123,949
Less: Earnings attributable to noncontrolling interests	—			—			(4,098		)	—			(4,098		)
Net earnings attributable to Valmont Industries, Inc	$	119,851		$	37,784		$	62,931		$	(100,715	)	$	119,851

Condensed Consolidated Statements of Comprehensive Income

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirteen weeks ended September 30, 2017

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net earnings	$	35,208		$	15,354		$	24,264		$	(38,160	)	$	36,666
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—			(3,613		)	23,143			—			19,530
Unrealized gain/(loss) on hedging activities:
Net investment hedge	(740		)	—			—			—			(740		)
Amortization cost included in interest expense	19			—			—			—			19
Equity in other comprehensive income	18,418			—			—			(18,418		)	—
Other comprehensive income (loss)	17,697			(3,613		)	23,143			(18,418		)	18,809
Comprehensive income (loss)	52,905			11,741			47,407			(56,578		)	55,475
Comprehensive income attributable to noncontrolling interests	—			—			(2,570		)	—			(2,570		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	52,905		$	11,741		$	44,837		$	(56,578	)	$	52,905

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirty-nine Weeks Ended September 30, 2017

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
Net earnings	$	119,851		$	37,784	$	67,029		$	(100,715	)	$	123,949
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—			64,411		(3,940		)	—			60,471
Unrealized gain/(loss) on hedging activities:
Net investment hedge	(1,816		)			—			—			(1,816		)
Amortization cost included in interest expense	56			—		—			—			56
Equity in other comprehensive income	60,017			—		—			(60,017		)	—
Other comprehensive income (loss)	58,257			64,411		(3,940		)	(60,017		)	58,711
Comprehensive income (loss)	178,108			102,195		63,089			(160,732		)	182,660
Comprehensive income attributable to noncontrolling interests	—			—		(4,552		)	—			(4,552		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	178,108		$	102,195	$	58,537		$	(160,732	)	$	178,108

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirteen weeks ended September 24, 2016

	Parent		Guarantors			Non- Guarantors			Eliminations			Total
Net earnings	$	28,173	$	6,754		$	17,239		$	(22,645	)	$	29,521
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—		(114		)	884			—			770
Unrealized gain/(loss) on hedging activities:
Net investment hedge	1,972		—			—			—			1,972
Amortization cost included in interest expense	18		—			—			—			18
Equity in other comprehensive income	500		—			—			(500		)	—
Other comprehensive income (loss)	2,490		(114		)	884			(500		)	2,760
Comprehensive income (loss)	30,663		6,640			18,123			(23,145		)	32,281
Comprehensive income attributable to noncontrolling interests	—		—			(1,618		)	—			(1,618		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	30,663	$	6,640		$	16,505		$	(23,145	)	$	30,663

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the Thirty-nine Weeks Ended September 24, 2016

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Net earnings	$	103,168		$	32,941		$	49,778		$	(78,753	)	$	107,134
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments:
Unrealized translation gain (loss)	—			(263		)	(1,675		)	—			(1,938		)
Unrealized gain/(loss) on hedging activities:
Net Investment Hedge	4,897			—			—			—			4,897
Amortization cost included in interest expense	56			—			—			—			56
Equity in other comprehensive income	(3,704		)	—			—			3,704			—
Other comprehensive income (loss)	1,249			(263		)	(1,675		)	3,704			3,015
Comprehensive income (loss)	104,417			32,678			48,103			(75,049		)	110,149
Comprehensive income attributable to noncontrolling interests	—			—			(5,732		)	—			(5,732		)
Comprehensive income (loss) attributable to Valmont Industries, Inc.	$	104,417		$	32,678		$	42,371		$	(75,049	)	$	104,417

Condensed Consolidated Balance Sheets

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 2017

	Parent			Guarantors		Non- Guarantors			Eliminations			Total
ASSETS
Current assets:
Cash and cash equivalents	$	118,499		$	4,167	$	370,824		$	—		$	493,490
Receivables, net	152,290			69,781		270,771			—			492,842
Inventories	141,774			46,747		219,046			(4,333		)	403,234
Prepaid expenses, restricted cash, and other assets	8,903			1,023		40,138			—			50,064
Refundable income taxes	8,493			—		—			—			8,493
Total current assets	429,959			121,718		900,779			(4,333		)	1,448,123
Property, plant and equipment, at cost	558,484			158,087		453,283			—			1,169,854
Less accumulated depreciation and amortization	369,620			82,708		195,102			—			647,430
Net property, plant and equipment	188,864			75,379		258,181			—			522,424
Goodwill	20,108			110,562		206,084			—			336,754
Other intangible assets	144			32,204		109,742			—			142,090
Investment in subsidiaries and intercompany accounts	1,392,533			1,180,732		1,029,831			(3,603,096		)	—
Other assets	47,613			—		113,167			—			160,780
Total assets	$	2,079,221		$	1,520,595	$	2,617,784		$	(3,607,429	)	$	2,610,171
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current installments of long-term debt	$	—		$	—	$	949		$	—		$	949
Notes payable to banks	—			—		197			—			197
Accounts payable	59,467			8,032		148,605			—			216,104
Accrued employee compensation and benefits	40,760			8,293		32,441			—			81,494
Accrued expenses	44,896			9,222		52,120			—			106,238
Dividends payable	8,478			—		—			—			8,478
Total current liabilities	153,601			25,547		234,312			—			413,460
Deferred income taxes	15,617			—		12,566			—			28,183
Long-term debt, excluding current installments	750,933			185,674		10,060			(192,465		)	754,202
Defined benefit pension liability	—			—		199,562			—			199,562
Deferred compensation	43,077			—		5,535			—			48,612
Other noncurrent liabilities	3,159			5		10,393			—			13,557
Shareholders’ equity:
Common stock of $1 par value	27,900			457,950		648,682			(1,106,632		)	27,900
Additional paid-in capital	—			166,789		1,107,536			(1,274,325		)	—
Retained earnings	1,974,601			684,532		636,283			(1,320,815		)	1,974,601
Accumulated other comprehensive income (loss)	(288,102		)	98		(286,906		)	286,808			(288,102		)
Treasury stock	(601,565		)	—		—			—			(601,565		)
Total Valmont Industries, Inc. shareholders’ equity	1,112,834			1,309,369		2,105,595			(3,414,964		)	1,112,834
Noncontrolling interest in consolidated subsidiaries	—			—		39,761			—			39,761
Total shareholders’ equity	1,112,834			1,309,369		2,145,356			(3,414,964		)	1,152,595
Total liabilities and shareholders’ equity	$	2,079,221		$	1,520,595	$	2,617,784		$	(3,607,429	)	$	2,610,171

(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 Thirty-nine Weeks Ended September 30, 2017

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	119,851		$	37,784		$	67,029		$	(100,715	)	$	123,949
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	19,600			11,130			32,770			—			63,500
Noncash loss on trading securities	—			—			395			—			395
Stock-based compensation	7,300			—			—			—			7,300
Defined benefit pension plan expense	—			—			481			—			481
Contribution to defined benefit pension plan	—			—			(26,064		)	—			(26,064		)
Decrease in restricted cash - pension plan trust	—			—			12,568			—			12,568
Loss (gain) on sale of property, plant and equipment	(725		)	59			(66		)	—			(732		)
Equity in earnings in nonconsolidated subsidiaries	(85,274		)	(15,281		)	—			100,555			—
Deferred income taxes	2,065			—			(1,986		)	—			79
Changes in assets and liabilities:
Receivables	(16,190		)	(9,259		)	(14,135		)	—			(39,584		)
Inventories	(15,105		)	(1,290		)	(25,329		)	179			(41,545		)
Prepaid expenses and other assets	(2,501		)	(144		)	(8,991		)	—			(11,636		)
Accounts payable	7,196			(7,700		)	29,399			—			28,895
Accrued expenses	20,887			(4,971		)	4,241			—			20,157
Other noncurrent liabilities	(381		)	—			(1,246		)	—			(1,627		)
Income taxes payable (refundable)	(11,403		)	802			8,869			—			(1,732		)
Net cash flows from operating activities	45,320			11,130			77,935			19			134,404
Cash flows from investing activities:
Purchase of property, plant and equipment	(14,046		)	(5,952		)	(19,900		)	—			(39,898		)
Proceeds from sale of assets	745			(48		)	878			—			1,575
Acquisitions, net of cash acquired	—			—			(5,362		)	—			(5,362		)
Proceeds from settlement of net investment hedge	5,123			—			—			—			5,123
Other, net	15,714			(8,985		)	(10,172		)	(19		)	(3,462		)
Net cash flows from investing activities	7,536			(14,985		)	(34,556		)	(19		)	(42,024		)
Cash flows from financing activities:
Net borrowings under short-term agreements	—			—			(549		)	—			(549		)
Principal payments on long-term borrowings				—			(658		)	—			(658		)
Dividends paid	(25,386		)	—			—			—			(25,386		)
Dividends to noncontrolling interest	—						(3,895		)	—			(3,895		)
Intercompany dividends	22,662			—			(22,662		)	—			—
Intercompany interest on long-term note	—			(5,669		)	5,669			—			—
Intercompany capital contribution	(7,375		)	7,375			—			—			—
Proceeds from exercises under stock plans	12,446			—			—			—			12,446
Purchase of common treasury shares - stock plan exercises	(3,929		)	—			—			—			(3,929		)
Net cash flows from financing activities	(1,582		)	1,706			(22,095		)	—			(21,971		)
Effect of exchange rate changes on cash and cash equivalents	—			245			22,888			—			23,133
Net change in cash and cash equivalents	51,274			(1,904		)	44,172			—			93,542
Cash and cash equivalents—beginning of year	67,225			6,071			326,652			—			399,948
Cash and cash equivalents—end of period	$	118,499		$	4,167		$	370,824		$	—		$	493,490

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Thirty-nine Weeks Ended September 24, 2016

	Parent			Guarantors			Non- Guarantors			Eliminations			Total
Cash flows from operating activities:
Net earnings	$	103,168		$	32,941		$	49,778		$	(78,753	)	$	107,134
Adjustments to reconcile net earnings to net cash flows from operations:
Depreciation and amortization	20,482			9,897			30,863			—			61,242
Noncash loss on trading securities	—			—			973			—			973
Impairment of assets - restructuring activities	—			—			618			—			618
Stock-based compensation	6,572			—			—			—			6,572
Change in fair value of contingent consideration	—			—			(3,527		)	—			(3,527		)
Defined benefit pension plan expense	—			—			1,486			—			1,486
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	2			117			131			—			250
Equity in earnings in nonconsolidated subsidiaries	(69,876		)	(7,859		)	—			77,735			—
Deferred income taxes	(1,834		)	—			300			—			(1,534		)
Changes in assets and liabilities:
Receivables	(10,501		)	14,969			11,968			—			16,436
Inventories	(11,847		)	(5,024		)	(19,041		)	1,499			(34,413		)
Prepaid expenses	(4,526		)	76			(6,174		)	—			(10,624		)
Accounts payable	(16,605		)	2,530			2,737			—			(11,338		)
Accrued expenses	11,179			(7,218		)	(689		)	—			3,272
Other noncurrent liabilities	(252		)	5			487			—			240
Income taxes payable (refundable)	19,132			(16,444		)	2,143			—			4,831
Net cash flows from operating activities	45,094			23,990			57,689			481			127,254
Cash flows from investing activities:
Purchase of property, plant and equipment	(5,699		)	(17,944		)	(18,590		)	—			(42,233		)
Proceeds from sale of assets	36			84			3,818			—			3,938
Other, net	13,070			(4,488		)	(10,925		)	(481		)	(2,824		)
Net cash flows from investing activities	7,407			(22,348		)	(25,697		)	(481		)	(41,119		)
Cash flows from financing activities:
Net borrowings under short-term agreements	—			—			(128		)	—			(128		)
Principal payments on long-term borrowings	(215		)	—			(1,348		)	—			(1,563		)
Dividends paid	(25,604		)	—			—			—			(25,604		)
Dividends to noncontrolling interest	—			—			(2,527		)	—			(2,527		)
Purchase of noncontrolling interest	(137		)	—			(10,872		)	—			(11,009		)
Proceeds from exercises under stock plans	6,509			—			—			—			6,509
Purchase of treasury shares	(46,581		)	—			—			—			(46,581		)
Purchase of common treasury shares - stock plan exercises	(1,453		)	—			—			—			(1,453		)
Net cash flows from financing activities	(67,481		)	—			(14,875		)	—			(82,356		)
Effect of exchange rate changes on cash and cash equivalents	—			168			(3,646		)	—			(3,478		)
Net change in cash and cash equivalents	(14,980		)	1,810			13,471			—			301
Cash and cash equivalents—beginning of year	62,281			4,008			282,785			—			349,074
Cash and cash equivalents—end of period	$	47,301		$	5,818		$	296,256		$	—		$	349,375