GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION |
(18) GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION
On April 8, 2010, the Company issued $300,000 of senior unsecured notes at a coupon interest rate of 6.625% per annum. In June 2011, the Company issued an additional $150,000 principal amount of these notes to redeem the senior subordinated notes. The notes are guaranteed, jointly, severally, fully and unconditionally 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. Subsequent to the issuance of the 2011 financial statements, the comprehensive income information presented below was added to reflect our retrospective adoption of ASU Nos. 2011-05 and 2011-12, Comprehensive Income in 2011 and 2010.
Consolidated financial information for the Company ("Parent"), the Guarantor subsidiaries and the Non-Guarantor subsidiaries is as follows:
CONSOLIDATED STATEMENTS OF EARNINGS
For the Year ended December 29, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent |
|
Guarantors |
|
Non-
Guarantors |
|
Eliminations |
|
Total |
|
Net sales |
|
$ |
1,375,238 |
|
$ |
620,338 |
|
$ |
1,331,827 |
|
$ |
(297,862 |
) |
$ |
3,029,541 |
|
Cost of sales |
|
|
1,008,087 |
|
|
489,560 |
|
|
1,026,037 |
|
|
(296,599 |
) |
|
2,227,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
367,151 |
|
|
130,778 |
|
|
305,790 |
|
|
(1,263 |
) |
|
802,456 |
|
Selling, general and administrative expenses |
|
|
178,669 |
|
|
55,488 |
|
|
186,003 |
|
|
— |
|
|
420,160 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
188,482 |
|
|
75,290 |
|
|
119,787 |
|
|
(1,263 |
) |
|
382,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(31,121 |
) |
|
(49,762 |
) |
|
(504 |
) |
|
49,762 |
|
|
(31,625 |
) |
Interest income |
|
|
45 |
|
|
1,131 |
|
|
56,858 |
|
|
(49,762 |
) |
|
8,272 |
|
Other |
|
|
1,938 |
|
|
55 |
|
|
(1,646 |
) |
|
— |
|
|
347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(29,138 |
) |
|
(48,576 |
) |
|
54,708 |
|
|
— |
|
|
(23,006 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries |
|
|
159,344 |
|
|
26,714 |
|
|
174,495 |
|
|
(1,263 |
) |
|
359,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
59,648 |
|
|
16,398 |
|
|
47,375 |
|
|
(639 |
) |
|
122,782 |
|
Deferred |
|
|
(4,721 |
) |
|
(496 |
) |
|
8,937 |
|
|
— |
|
|
3,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54,927 |
|
|
15,902 |
|
|
56,312 |
|
|
(639 |
) |
|
126,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before equity in earnings of nonconsolidated subsidiaries |
|
|
104,417 |
|
|
10,812 |
|
|
118,183 |
|
|
(624 |
) |
|
232,788 |
|
Equity in earnings of nonconsolidated subsidiaries |
|
|
129,655 |
|
|
86,170 |
|
|
5,150 |
|
|
(214,847 |
) |
|
6,128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
|
234,072 |
|
|
96,982 |
|
|
123,333 |
|
|
(215,471 |
) |
|
238,916 |
|
Less: Earnings attributable to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(4,844 |
) |
|
— |
|
|
(4,844 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Valmont Industries, Inc |
|
$ |
234,072 |
|
$ |
96,982 |
|
$ |
118,489 |
|
$ |
(215,471 |
) |
$ |
234,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF EARNINGS
For the Year ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent |
|
Guarantors |
|
Non-
Guarantors |
|
Eliminations |
|
Total |
|
Net sales |
|
$ |
1,164,400 |
|
$ |
401,443 |
|
$ |
1,305,424 |
|
$ |
(209,787 |
) |
$ |
2,661,480 |
|
Cost of sales |
|
|
863,269 |
|
|
323,812 |
|
|
1,016,305 |
|
|
(208,716 |
) |
|
1,994,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
301,131 |
|
|
77,631 |
|
|
289,119 |
|
|
(1,071 |
) |
|
666,810 |
|
Selling, general and administrative expenses |
|
|
166,964 |
|
|
50,783 |
|
|
185,753 |
|
|
— |
|
|
403,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
134,167 |
|
|
26,848 |
|
|
103,366 |
|
|
(1,071 |
) |
|
263,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(35,456 |
) |
|
— |
|
|
(719 |
) |
|
— |
|
|
(36,175 |
) |
Interest income |
|
|
59 |
|
|
331 |
|
|
8,875 |
|
|
— |
|
|
9,265 |
|
Other |
|
|
(311 |
) |
|
59 |
|
|
(2,391 |
) |
|
— |
|
|
(2,643 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(35,708 |
) |
|
390 |
|
|
5,765 |
|
|
— |
|
|
(29,553 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries |
|
|
98,459 |
|
|
27,238 |
|
|
109,131 |
|
|
(1,071 |
) |
|
233,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
48,243 |
|
|
10,571 |
|
|
30,738 |
|
|
— |
|
|
89,552 |
|
Deferred |
|
|
(4,787 |
) |
|
(964 |
) |
|
(79,211 |
) |
|
— |
|
|
(84,962 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
43,456 |
|
|
9,607 |
|
|
(48,473 |
) |
|
— |
|
|
4,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before equity in earnings of nonconsolidated subsidiaries |
|
|
55,003 |
|
|
17,631 |
|
|
157,604 |
|
|
(1,071 |
) |
|
229,167 |
|
Equity in earnings of nonconsolidated subsidiaries |
|
|
173,305 |
|
|
125,269 |
|
|
6,818 |
|
|
(297,333 |
) |
|
8,059 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
|
228,308 |
|
|
142,900 |
|
|
164,422 |
|
|
(298,404 |
) |
|
237,226 |
|
Less: Earnings attributable to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(8,918 |
) |
|
— |
|
|
(8,918 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Valmont Industries, Inc |
|
$ |
228,308 |
|
$ |
142,900 |
|
$ |
155,504 |
|
$ |
(298,404 |
) |
$ |
228,308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF EARNINGS
For the Year ended December 25, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent |
|
Guarantors |
|
Non-
Guarantors |
|
Eliminations |
|
Total |
|
Net sales |
|
$ |
847,396 |
|
$ |
304,309 |
|
$ |
956,023 |
|
$ |
(132,223 |
) |
$ |
1,975,505 |
|
Cost of sales |
|
|
622,018 |
|
|
231,696 |
|
|
735,195 |
|
|
(132,978 |
) |
|
1,455,931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
225,378 |
|
|
72,613 |
|
|
220,828 |
|
|
755 |
|
|
519,574 |
|
Selling, general and administrative expenses |
|
|
147,054 |
|
|
47,688 |
|
|
146,419 |
|
|
— |
|
|
341,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
78,324 |
|
|
24,925 |
|
|
74,409 |
|
|
755 |
|
|
178,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(30,282 |
) |
|
(1 |
) |
|
(664 |
) |
|
— |
|
|
(30,947 |
) |
Interest income |
|
|
127 |
|
|
31 |
|
|
4,682 |
|
|
— |
|
|
4,840 |
|
Other |
|
|
995 |
|
|
(48 |
) |
|
(271 |
) |
|
— |
|
|
676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(29,160 |
) |
|
(18 |
) |
|
3,747 |
|
|
— |
|
|
(25,431 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries |
|
|
49,164 |
|
|
24,907 |
|
|
78,156 |
|
|
755 |
|
|
152,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current |
|
|
19,525 |
|
|
5,039 |
|
|
25,427 |
|
|
— |
|
|
49,991 |
|
Deferred |
|
|
722 |
|
|
4,984 |
|
|
(689 |
) |
|
— |
|
|
5,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20,247 |
|
|
10,023 |
|
|
24,738 |
|
|
— |
|
|
55,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before equity in earnings of nonconsolidated subsidiaries |
|
|
28,917 |
|
|
14,884 |
|
|
53,418 |
|
|
755 |
|
|
97,974 |
|
Equity in earnings of nonconsolidated subsidiaries |
|
|
65,462 |
|
|
25,264 |
|
|
1,525 |
|
|
(89,812 |
) |
|
2,439 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
|
94,379 |
|
|
40,148 |
|
|
54,943 |
|
|
(89,057 |
) |
|
100,413 |
|
Less: Earnings attributable to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(6,034 |
) |
|
— |
|
|
(6,034 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Valmont Industries, Inc |
|
$ |
94,379 |
|
$ |
40,148 |
|
$ |
48,909 |
|
$ |
(89,057 |
) |
$ |
94,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Year ended December 29, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent |
|
Guarantors |
|
Non-
Guarantors |
|
Eliminations |
|
Total |
|
Net earnings |
|
$ |
234,072 |
|
$ |
96,982 |
|
$ |
123,333 |
|
$ |
(215,471 |
) |
$ |
238,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) arising during the period |
|
|
— |
|
|
(14,422 |
) |
|
30,163 |
|
|
— |
|
|
15,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
(14,422 |
) |
|
30,163 |
|
|
— |
|
|
15,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on cash flow hedge: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization cost included in interest expense |
|
|
400 |
|
|
— |
|
|
— |
|
|
— |
|
|
400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
400 |
|
|
— |
|
|
— |
|
|
— |
|
|
400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gain (loss) in defined benefit pension plan liability |
|
|
— |
|
|
— |
|
|
(35,020 |
) |
|
— |
|
|
(35,020 |
) |
Equity in other comprehensive income |
|
|
(20,514 |
) |
|
— |
|
|
— |
|
|
20,514 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
(20,114 |
) |
|
(14,422 |
) |
|
(4,857 |
) |
|
20,514 |
|
|
(18,879 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
|
|
213,958 |
|
|
82,560 |
|
|
118,476 |
|
|
(194,957 |
) |
|
220,037 |
|
Comprehensive income attributable to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(6,079 |
) |
|
— |
|
|
(6,079 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to Valmont Industries, Inc. |
|
$ |
213,958 |
|
$ |
82,560 |
|
$ |
112,397 |
|
$ |
(194,957 |
) |
$ |
213,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Year ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent |
|
Guarantors |
|
Non-
Guarantors |
|
Eliminations |
|
Total |
|
Net earnings |
|
$ |
228,308 |
|
$ |
142,900 |
|
$ |
164,422 |
|
$ |
(298,404 |
) |
$ |
237,226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) arising during the period |
|
|
— |
|
|
(958 |
) |
|
(21,018 |
) |
|
— |
|
|
(21,976 |
) |
Realized loss on sale of investment in foreign entity included in other expense |
|
|
— |
|
|
— |
|
|
1,446 |
|
|
— |
|
|
1,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
(958 |
) |
|
(19,572 |
) |
|
— |
|
|
(20,530 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on cash flow hedge: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss arising during the period |
|
|
(3,568 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(3,568 |
) |
Amortization cost included in interest expense |
|
|
233 |
|
|
— |
|
|
— |
|
|
— |
|
|
233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,335 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(3,335 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gain (loss) in defined benefit pension plan liability |
|
|
— |
|
|
— |
|
|
22,365 |
|
|
— |
|
|
22,365 |
|
Equity in other comprehensive income |
|
|
3,742 |
|
|
— |
|
|
— |
|
|
(3,742 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
407 |
|
|
(958 |
) |
|
2,793 |
|
|
(3,742 |
) |
|
(1,500 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
|
|
228,715 |
|
|
141,942 |
|
|
167,215 |
|
|
(302,146 |
) |
|
235,726 |
|
Comprehensive income attributable to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(7,011 |
) |
|
— |
|
|
(7,011 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to Valmont Industries, Inc. |
|
$ |
228,715 |
|
$ |
141,942 |
|
$ |
160,204 |
|
$ |
(302,146 |
) |
$ |
228,715 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Year ended December 25, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent |
|
Guarantors |
|
Non-
Guarantors |
|
Eliminations |
|
Total |
|
Net earnings |
|
$ |
94,379 |
|
$ |
40,148 |
|
$ |
54,943 |
|
$ |
(89,057 |
) |
$ |
100,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses) arising during the period |
|
|
— |
|
|
— |
|
|
20,748 |
|
|
— |
|
|
20,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
— |
|
|
20,748 |
|
|
— |
|
|
20,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gain (loss) in defined benefit pension plan liability |
|
|
— |
|
|
— |
|
|
28,952 |
|
|
— |
|
|
28,952 |
|
Equity in other comprehensive income |
|
|
46,692 |
|
|
— |
|
|
— |
|
|
(46,692 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
46,692 |
|
|
— |
|
|
49,700 |
|
|
(46,692 |
) |
|
49,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
|
|
141,071 |
|
|
40,148 |
|
|
104,643 |
|
|
(135,749 |
) |
|
150,113 |
|
Comprehensive income attributable to noncontrolling interests |
|
|
— |
|
|
— |
|
|
(9,042 |
) |
|
— |
|
|
(9,042 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to Valmont Industries, Inc. |
|
$ |
141,071 |
|
$ |
40,148 |
|
$ |
95,601 |
|
$ |
(135,749 |
) |
$ |
141,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
December 29, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent |
|
Guarantors |
|
Non-
Guarantors |
|
Eliminations |
|
Total |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
40,926 |
|
$ |
83,203 |
|
$ |
290,000 |
|
$ |
— |
|
$ |
414,129 |
|
Receivables, net |
|
|
144,161 |
|
|
86,403 |
|
|
285,338 |
|
|
— |
|
|
515,902 |
|
Inventories |
|
|
146,619 |
|
|
71,988 |
|
|
193,777 |
|
|
— |
|
|
412,384 |
|
Prepaid expenses |
|
|
7,153 |
|
|
1,029 |
|
|
16,962 |
|
|
— |
|
|
25,144 |
|
Refundable and deferred income taxes |
|
|
29,359 |
|
|
6,904 |
|
|
22,118 |
|
|
— |
|
|
58,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
368,218 |
|
|
249,527 |
|
|
808,195 |
|
|
— |
|
|
1,425,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, at cost |
|
|
456,497 |
|
|
122,937 |
|
|
415,340 |
|
|
— |
|
|
994,774 |
|
Less accumulated depreciation and amortization |
|
|
288,226 |
|
|
55,239 |
|
|
138,697 |
|
|
— |
|
|
482,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net property, plant and equipment |
|
|
168,271 |
|
|
67,698 |
|
|
276,643 |
|
|
— |
|
|
512,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
20,108 |
|
|
107,542 |
|
|
203,141 |
|
|
— |
|
|
330,791 |
|
Other intangible assets |
|
|
499 |
|
|
53,517 |
|
|
118,254 |
|
|
— |
|
|
172,270 |
|
Investment in subsidiaries and intercompany accounts |
|
|
1,456,159 |
|
|
1,246,777 |
|
|
615,152 |
|
|
(3,318,088 |
) |
|
— |
|
Other assets |
|
|
32,511 |
|
|
— |
|
|
94,427 |
|
|
— |
|
|
126,938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,045,766 |
|
$ |
1,725,061 |
|
$ |
2,115,812 |
|
$ |
(3,318,088 |
) |
$ |
2,568,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current installments of long-term debt |
|
$ |
189 |
|
$ |
— |
|
$ |
35 |
|
$ |
— |
|
$ |
224 |
|
Notes payable to banks |
|
|
— |
|
|
— |
|
|
13,375 |
|
|
— |
|
|
13,375 |
|
Accounts payable |
|
|
72,610 |
|
|
22,006 |
|
|
117,808 |
|
|
— |
|
|
212,424 |
|
Accrued employee compensation and benefits |
|
|
61,572 |
|
|
10,530 |
|
|
29,803 |
|
|
|
|
|
101,905 |
|
Accrued expenses |
|
|
30,641 |
|
|
4,674 |
|
|
43,188 |
|
|
— |
|
|
78,503 |
|
Income Taxes Payable |
|
|
— |
|
|
31 |
|
|
669 |
|
|
(700 |
) |
|
— |
|
Dividends payable |
|
|
6,002 |
|
|
— |
|
|
— |
|
|
— |
|
|
6,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
171,014 |
|
|
37,241 |
|
|
204,878 |
|
|
(700 |
) |
|
412,433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income taxes |
|
|
23,305 |
|
|
27,851 |
|
|
37,144 |
|
|
— |
|
|
88,300 |
|
Long-term debt, excluding current installments |
|
|
471,828 |
|
|
599,873 |
|
|
765 |
|
|
(599,873 |
) |
|
472,593 |
|
Defined benefit pension liability |
|
|
— |
|
|
— |
|
|
112,043 |
|
|
— |
|
|
112,043 |
|
Deferred compensation |
|
|
25,200 |
|
|
— |
|
|
6,720 |
|
|
— |
|
|
31,920 |
|
Other noncurrent liabilities |
|
|
4,507 |
|
|
— |
|
|
39,745 |
|
|
— |
|
|
44,252 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock of $1 par value |
|
|
27,900 |
|
|
457,950 |
|
|
254,982 |
|
|
(712,932 |
) |
|
27,900 |
|
Additional paid-in capital |
|
|
— |
|
|
150,286 |
|
|
893,274 |
|
|
(1,043,560 |
) |
|
— |
|
Retained earnings |
|
|
1,300,529 |
|
|
467,240 |
|
|
443,337 |
|
|
(910,577 |
) |
|
1,300,529 |
|
Accumulated other comprehensive income |
|
|
43,938 |
|
|
(15,380 |
) |
|
65,826 |
|
|
(50,446 |
) |
|
43,938 |
|
Treasury stock |
|
|
(22,455 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(22,455 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total Valmont Industries, Inc. shareholders' equity |
|
|
1,349,912 |
|
|
1,060,096 |
|
|
1,657,419 |
|
|
(2,717,515 |
) |
|
1,349,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling interest in consolidated subsidiaries |
|
|
— |
|
|
— |
|
|
57,098 |
|
|
— |
|
|
57,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
|
1,349,912 |
|
|
1,060,096 |
|
|
1,714,517 |
|
|
(2,717,515 |
) |
|
1,407,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,045,766 |
|
$ |
1,725,061 |
|
$ |
2,115,812 |
|
$ |
(3,318,088 |
) |
$ |
2,568,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent |
|
Guarantors |
|
Non-
Guarantors |
|
Eliminations |
|
Total |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
27,545 |
|
$ |
18,257 |
|
$ |
317,092 |
|
$ |
— |
|
$ |
362,894 |
|
Receivables, net |
|
|
122,409 |
|
|
53,567 |
|
|
250,707 |
|
|
— |
|
|
426,683 |
|
Inventories |
|
|
125,862 |
|
|
77,838 |
|
|
190,082 |
|
|
— |
|
|
393,782 |
|
Prepaid expenses |
|
|
3,448 |
|
|
1,009 |
|
|
21,308 |
|
|
— |
|
|
25,765 |
|
Refundable and deferred income taxes |
|
|
22,053 |
|
|
6,218 |
|
|
15,548 |
|
|
— |
|
|
43,819 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
301,317 |
|
|
156,889 |
|
|
794,737 |
|
|
— |
|
|
1,252,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, at cost |
|
|
427,398 |
|
|
107,315 |
|
|
376,929 |
|
|
— |
|
|
911,642 |
|
Less accumulated depreciation and amortization |
|
|
283,786 |
|
|
54,740 |
|
|
118,239 |
|
|
— |
|
|
456,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net property, plant and equipment |
|
|
143,612 |
|
|
52,575 |
|
|
258,690 |
|
|
— |
|
|
454,877 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
20,108 |
|
|
107,542 |
|
|
187,012 |
|
|
— |
|
|
314,662 |
|
Other intangible assets |
|
|
661 |
|
|
59,389 |
|
|
108,033 |
|
|
— |
|
|
168,083 |
|
Investment in subsidiaries and intercompany accounts |
|
|
1,338,299 |
|
|
695,745 |
|
|
596,301 |
|
|
(2,630,345 |
) |
|
— |
|
Other assets |
|
|
30,192 |
|
|
— |
|
|
85,319 |
|
|
— |
|
|
115,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,834,189 |
|
$ |
1,072,140 |
|
$ |
2,030,092 |
|
$ |
(2,630,345 |
) |
$ |
2,306,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current installments of long-term debt |
|
$ |
187 |
|
$ |
— |
|
$ |
48 |
|
$ |
— |
|
$ |
235 |
|
Notes payable to banks |
|
|
— |
|
|
— |
|
|
11,403 |
|
|
— |
|
|
11,403 |
|
Accounts payable |
|
|
68,166 |
|
|
21,428 |
|
|
127,135 |
|
|
— |
|
|
216,729 |
|
Accrued expenses |
|
|
44,187 |
|
|
8,608 |
|
|
30,818 |
|
|
— |
|
|
83,613 |
|
Accrued expenses |
|
|
28,154 |
|
|
5,651 |
|
|
39,710 |
|
|
— |
|
|
73,515 |
|
Income Tax payable |
|
|
17,808 |
|
|
— |
|
|
— |
|
|
— |
|
|
17,808 |
|
Dividends payable |
|
|
4,767 |
|
|
— |
|
|
— |
|
|
— |
|
|
4,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
163,269 |
|
|
35,687 |
|
|
209,114 |
|
|
— |
|
|
408,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income taxes |
|
|
21,891 |
|
|
27,661 |
|
|
35,945 |
|
|
— |
|
|
85,497 |
|
Long-term debt, excluding current installments |
|
|
473,419 |
|
|
— |
|
|
996 |
|
|
— |
|
|
474,415 |
|
Defined benefit pension liability |
|
|
— |
|
|
— |
|
|
68,024 |
|
|
— |
|
|
68,024 |
|
Deferred compensation |
|
|
24,142 |
|
|
— |
|
|
6,599 |
|
|
— |
|
|
30,741 |
|
Other noncurrent liabilities |
|
|
4,506 |
|
|
— |
|
|
36,912 |
|
|
— |
|
|
41,418 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock of $1 par value |
|
|
27,900 |
|
|
457,950 |
|
|
254,982 |
|
|
(712,932 |
) |
|
27,900 |
|
Additional paid-in capital |
|
|
— |
|
|
181,542 |
|
|
893,884 |
|
|
(1,075,426 |
) |
|
— |
|
Retained earnings |
|
|
1,079,698 |
|
|
370,258 |
|
|
407,677 |
|
|
(777,935 |
) |
|
1,079,698 |
|
Accumulated other comprehensive income |
|
|
64,052 |
|
|
(958 |
) |
|
65,010 |
|
|
(64,052 |
) |
|
64,052 |
|
Treasury stock |
|
|
(24,688 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(24,688 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Total Valmont Industries, Inc. shareholders' equity |
|
|
1,146,962 |
|
|
1,008,792 |
|
|
1,621,553 |
|
|
(2,630,345 |
) |
|
1,146,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling interest in consolidated subsidiaries |
|
|
— |
|
|
— |
|
|
50,949 |
|
|
— |
|
|
50,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity |
|
|
1,146,962 |
|
|
1,008,792 |
|
|
1,672,502 |
|
|
(2,630,345 |
) |
|
1,197,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
1,834,189 |
|
$ |
1,072,140 |
|
$ |
2,030,092 |
|
$ |
(2,630,345 |
) |
$ |
2,306,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Year Ended December 29, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent |
|
Guarantors |
|
Non-
Guarantors |
|
Eliminations |
|
Total |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
234,072 |
|
$ |
96,982 |
|
$ |
123,333 |
|
$ |
(215,471 |
) |
$ |
238,916 |
|
Adjustments to reconcile net earnings to net cash flows from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
19,121 |
|
|
12,923 |
|
|
38,174 |
|
|
— |
|
|
70,218 |
|
Stock-based compensation |
|
|
5,829 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,829 |
|
Defined benefit pension plan expense |
|
|
— |
|
|
— |
|
|
4,281 |
|
|
— |
|
|
4,281 |
|
Contribution to defined benefit pension plan |
|
|
— |
|
|
— |
|
|
(11,591 |
) |
|
— |
|
|
(11,591 |
) |
Loss on sale of property, plant and equipment |
|
|
89 |
|
|
(17 |
) |
|
249 |
|
|
— |
|
|
321 |
|
Equity in earnings in nonconsolidated subsidiaries |
|
|
(978 |
) |
|
— |
|
|
(5,150 |
) |
|
— |
|
|
(6,128 |
) |
Deferred income taxes |
|
|
(4,721 |
) |
|
(496 |
) |
|
8,937 |
|
|
— |
|
|
3,720 |
|
Changes in assets and liabilities (net of the effect from acquisitions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables |
|
|
(21,751 |
) |
|
(32,833 |
) |
|
(30,306 |
) |
|
— |
|
|
(84,890 |
) |
Inventories |
|
|
(20,756 |
) |
|
5,850 |
|
|
1,293 |
|
|
— |
|
|
(13,613 |
) |
Prepaid expenses |
|
|
(3,705 |
) |
|
(20 |
) |
|
4,968 |
|
|
— |
|
|
1,243 |
|
Accounts payable |
|
|
4,446 |
|
|
578 |
|
|
(11,273 |
) |
|
— |
|
|
(6,249 |
) |
Accrued expenses |
|
|
20,339 |
|
|
945 |
|
|
(644 |
) |
|
— |
|
|
20,640 |
|
Other noncurrent liabilities |
|
|
123 |
|
|
— |
|
|
(4,473 |
) |
|
— |
|
|
(4,350 |
) |
Income taxes payable |
|
|
(18,979 |
) |
|
350 |
|
|
(1,921 |
) |
|
(700 |
) |
|
(21,250 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from operating activities |
|
|
213,129 |
|
|
84,262 |
|
|
115,877 |
|
|
(216,171 |
) |
|
197,097 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(43,590 |
) |
|
(22,197 |
) |
|
(31,287 |
) |
|
— |
|
|
(97,074 |
) |
Acquisitions, net of cash acquired |
|
|
— |
|
|
— |
|
|
(45,687 |
) |
|
— |
|
|
(45,687 |
) |
Proceeds from sale of assets |
|
|
113 |
|
|
39 |
|
|
5,873 |
|
|
— |
|
|
6,025 |
|
Other, net |
|
|
(138,869 |
) |
|
(63,791 |
) |
|
(13,467 |
) |
|
216,171 |
|
|
44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from investing activities |
|
|
(182,346 |
) |
|
(85,949 |
) |
|
(84,568 |
) |
|
216,171 |
|
|
(136,692 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net borrowings under short-term agreements |
|
|
— |
|
|
— |
|
|
1,828 |
|
|
— |
|
|
1,828 |
|
Proceeds from long-term borrowings |
|
|
39,000 |
|
|
— |
|
|
126 |
|
|
— |
|
|
39,126 |
|
Principal payments on long-term obligations |
|
|
(39,197 |
) |
|
— |
|
|
(367 |
) |
|
— |
|
|
(39,564 |
) |
Dividends paid |
|
|
(21,520 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(21,520 |
) |
Intercompany dividends |
|
|
— |
|
|
64,348 |
|
|
(64,348 |
) |
|
— |
|
|
— |
|
Sale of EMD shares |
|
|
— |
|
|
— |
|
|
1,404 |
|
|
— |
|
|
1,404 |
|
Dividends to noncontrolling interest |
|
|
— |
|
|
— |
|
|
(1,944 |
) |
|
— |
|
|
(1,944 |
) |
Debt issuance fees |
|
|
(1,747 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(1,747 |
) |
Proceeds from exercises under stock plans |
|
|
21,827 |
|
|
— |
|
|
— |
|
|
— |
|
|
21,827 |
|
Excess tax benefits from stock option exercises |
|
|
5,494 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,494 |
|
Purchase of treasury shares |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Purchase of common treasury shares—stock plan exercises: |
|
|
(21,259 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(21,259 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from financing activities |
|
|
(17,402 |
) |
|
64,348 |
|
|
(63,301 |
) |
|
— |
|
|
(16,355 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
— |
|
|
2,285 |
|
|
4,900 |
|
|
— |
|
|
7,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents |
|
|
13,381 |
|
|
64,946 |
|
|
(27,092 |
) |
|
— |
|
|
51,235 |
|
Cash and cash equivalents—beginning of year |
|
|
27,545 |
|
|
18,257 |
|
|
317,092 |
|
|
— |
|
|
362,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents—end of year |
|
$ |
40,926 |
|
$ |
83,203 |
|
$ |
290,000 |
|
$ |
— |
|
$ |
414,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Year Ended December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent |
|
Guarantors |
|
Non-
Guarantors |
|
Eliminations |
|
Total |
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
228,308 |
|
$ |
142,900 |
|
$ |
164,422 |
|
$ |
(298,404 |
) |
$ |
237,226 |
|
Adjustments to reconcile net earnings to net cash flows from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
20,570 |
|
|
15,593 |
|
|
38,397 |
|
|
— |
|
|
74,560 |
|
Stock-based compensation |
|
|
5,931 |
|
|
— |
|
|
— |
|
|
— |
|
|
5,931 |
|
Defined benefit pension plan expense |
|
|
— |
|
|
— |
|
|
5,449 |
|
|
— |
|
|
5,449 |
|
Contribution to defined benefit pension plan |
|
|
— |
|
|
— |
|
|
(11,860 |
) |
|
— |
|
|
(11,860 |
) |
Loss on sale of property, plant and equipment |
|
|
18 |
|
|
123 |
|
|
552 |
|
|
— |
|
|
693 |
|
Equity in earnings in nonconsolidated subsidiaries |
|
|
(1,241 |
) |
|
— |
|
|
(6,818 |
) |
|
— |
|
|
(8,059 |
) |
Deferred income taxes |
|
|
(4,787 |
) |
|
(964 |
) |
|
(79,211 |
) |
|
— |
|
|
(84,962 |
) |
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in assets and liabilities (net of the effect from acquisitions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables |
|
|
(16,228 |
) |
|
(2,904 |
) |
|
1,702 |
|
|
— |
|
|
(17,430 |
) |
Inventories |
|
|
(61,976 |
) |
|
(45,808 |
) |
|
(11,082 |
) |
|
— |
|
|
(118,866 |
) |
Prepaid expenses |
|
|
30 |
|
|
(89 |
) |
|
(3,983 |
) |
|
— |
|
|
(4,042 |
) |
Accounts payable |
|
|
22,311 |
|
|
6,174 |
|
|
14,152 |
|
|
— |
|
|
42,637 |
|
Accrued expenses |
|
|
18,298 |
|
|
6,112 |
|
|
(12,565 |
) |
|
— |
|
|
11,845 |
|
Other noncurrent liabilities |
|
|
598 |
|
|
— |
|
|
(6,479 |
) |
|
— |
|
|
(5,881 |
) |
Income taxes payable |
|
|
21,329 |
|
|
— |
|
|
1,101 |
|
|
|
|
|
22,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from operating activities |
|
|
233,161 |
|
|
121,137 |
|
|
93,777 |
|
|
(298,404 |
) |
|
149,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(19,185 |
) |
|
(12,180 |
) |
|
(51,704 |
) |
|
— |
|
|
(83,069 |
) |
Acquisitions, net of cash acquired |
|
|
— |
|
|
— |
|
|
(1,539 |
) |
|
— |
|
|
(1,539 |
) |
Proceeds from sale of assets |
|
|
51 |
|
|
408 |
|
|
3,247 |
|
|
— |
|
|
3,706 |
|
Other, net |
|
|
(190,242 |
) |
|
(109,457 |
) |
|
(1,866 |
) |
|
298,404 |
|
|
(3,161 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from investing activities |
|
|
(209,376 |
) |
|
(121,229 |
) |
|
(51,862 |
) |
|
298,404 |
|
|
(84,063 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net borrowings under short-term agreements |
|
|
— |
|
|
— |
|
|
2,698 |
|
|
— |
|
|
2,698 |
|
Proceeds from long-term borrowings |
|
|
277,832 |
|
|
— |
|
|
— |
|
|
— |
|
|
277,832 |
|
Principal payments on long-term obligations |
|
|
(271,192 |
) |
|
— |
|
|
(53 |
) |
|
— |
|
|
(271,245 |
) |
Dividends paid |
|
|
(18,227 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(18,227 |
) |
Intercompany dividends |
|
|
14,090 |
|
|
17,730 |
|
|
(31,820 |
) |
|
— |
|
|
— |
|
Dividends to noncontrolling interest |
|
|
— |
|
|
— |
|
|
(4,958 |
) |
|
— |
|
|
(4,958 |
) |
Purchase of noncontrolling interest |
|
|
— |
|
|
— |
|
|
(25,253 |
) |
|
— |
|
|
(25,253 |
) |
Settlement of financial derivative |
|
|
(3,568 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(3,568 |
) |
Debt issuance fees |
|
|
(1,339 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(1,339 |
) |
Proceeds from exercises under stock plans |
|
|
20,008 |
|
|
— |
|
|
— |
|
|
— |
|
|
20,008 |
|
Excess tax benefits from stock option exercises |
|
|
3,033 |
|
|
— |
|
|
— |
|
|
— |
|
|
3,033 |
|
Purchase of treasury shares |
|
|
(4,802 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(4,802 |
) |
Purchase of common treasury shares—stock plan exercises: |
|
|
(20,090 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(20,090 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from financing activities |
|
|
(4,255 |
) |
|
17,730 |
|
|
(59,386 |
) |
|
— |
|
|
(45,911 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
— |
|
|
— |
|
|
(3,707 |
) |
|
— |
|
|
(3,707 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents |
|
|
19,530 |
|
|
17,638 |
|
|
(21,178 |
) |
|
— |
|
|
15,990 |
|
Cash and cash equivalents—beginning of year |
|
|
8,015 |
|
|
619 |
|
|
338,270 |
|
|
— |
|
|
346,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents—end of year |
|
$ |
27,545 |
|
$ |
18,257 |
|
$ |
317,092 |
|
$ |
— |
|
$ |
362,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Year Ended December 25, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent |
|
Guarantors |
|
Non-
Guarantors |
|
Eliminations |
|
Total |
|
Cash flows from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
94,379 |
|
$ |
40,148 |
|
$ |
54,943 |
|
$ |
(89,057 |
) |
$ |
100,413 |
|
Adjustments to reconcile net earnings to net cash flows from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
20,069 |
|
|
12,749 |
|
|
26,845 |
|
|
— |
|
|
59,663 |
|
Stock-based compensation |
|
|
7,154 |
|
|
— |
|
|
— |
|
|
— |
|
|
7,154 |
|
Defined benefit pension plan expense |
|
|
— |
|
|
— |
|
|
5,874 |
|
|
— |
|
|
5,874 |
|
Loss on sale of property, plant and equipment |
|
|
66 |
|
|
44 |
|
|
3,093 |
|
|
— |
|
|
3,203 |
|
Equity in earnings in nonconsolidated subsidiaries |
|
|
(914 |
) |
|
— |
|
|
(1,525 |
) |
|
— |
|
|
(2,439 |
) |
Deferred income taxes |
|
|
(657 |
) |
|
4,984 |
|
|
690 |
|
|
— |
|
|
5,017 |
|
Other |
|
|
(393 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(393 |
) |
Changes in assets and liabilities, before acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables |
|
|
(30,979 |
) |
|
(2,008 |
) |
|
(18,806 |
) |
|
— |
|
|
(51,793 |
) |
Inventories |
|
|
13,820 |
|
|
10,792 |
|
|
(2,291 |
) |
|
— |
|
|
22,321 |
|
Prepaid expenses |
|
|
(169 |
) |
|
(465 |
) |
|
4,999 |
|
|
— |
|
|
4,365 |
|
Accounts payable |
|
|
9,246 |
|
|
1,643 |
|
|
(11,761 |
) |
|
— |
|
|
(872 |
) |
Accrued expenses |
|
|
(6,108 |
) |
|
(9,689 |
) |
|
8,255 |
|
|
— |
|
|
(7,542 |
) |
Other noncurrent liabilities |
|
|
(598 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(598 |
) |
Income taxes payable (refundable) |
|
|
(10,395 |
) |
|
14,923 |
|
|
3,319 |
|
|
— |
|
|
7,847 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from operations |
|
|
94,521 |
|
|
73,121 |
|
|
73,635 |
|
|
(89,057 |
) |
|
152,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(11,702 |
) |
|
(4,815 |
) |
|
(19,575 |
) |
|
— |
|
|
(36,092 |
) |
Proceeds from sale of property, plant and equipment |
|
|
22 |
|
|
286 |
|
|
11,079 |
|
|
— |
|
|
11,387 |
|
Acquisitions (net of cash acquired, $198,810) |
|
|
— |
|
|
(436,736 |
) |
|
187,679 |
|
|
— |
|
|
(249,057 |
) |
Other, net |
|
|
(1,056 |
) |
|
(76,593 |
) |
|
(359 |
) |
|
89,057 |
|
|
11,049 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from investing activities |
|
|
(12,736 |
) |
|
(517,858 |
) |
|
178,824 |
|
|
89,057 |
|
|
(262,713 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net borrowings under short-term agreements |
|
|
— |
|
|
(12 |
) |
|
(3,063 |
) |
|
— |
|
|
(3,075 |
) |
Proceeds from long-term borrowings |
|
|
491,000 |
|
|
— |
|
|
680 |
|
|
— |
|
|
491,680 |
|
Principal payments on long-term obligations |
|
|
(183,188 |
) |
|
— |
|
|
(97 |
) |
|
— |
|
|
(183,285 |
) |
Dividends paid |
|
|
(16,588 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(16,588 |
) |
Dividends to noncontrolling interest |
|
|
— |
|
|
— |
|
|
(13,071 |
) |
|
— |
|
|
(13,071 |
) |
Retirement of Delta plc preference shares |
|
|
— |
|
|
— |
|
|
(4,467 |
) |
|
— |
|
|
(4,467 |
) |
Debt issuance fees |
|
|
(3,858 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(3,858 |
) |
Intercompany loan activity |
|
|
(443,702 |
) |
|
443,702 |
|
|
— |
|
|
— |
|
|
— |
|
Proceeds from exercises under stock plans |
|
|
4,464 |
|
|
— |
|
|
— |
|
|
— |
|
|
4,464 |
|
Excess tax benefits from stock option exercises |
|
|
2,021 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,021 |
|
Purchase of treasury shares |
|
|
(2,676 |
) |
|
— |
|
|
1,800 |
|
|
— |
|
|
(876 |
) |
Purchase of common treasury shares—stock plan exercises |
|
|
(3,260 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(3,260 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from financing activities |
|
|
(155,787 |
) |
|
443,690 |
|
|
(18,218 |
) |
|
— |
|
|
269,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
— |
|
|
— |
|
|
6,926 |
|
|
— |
|
|
6,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents |
|
|
(74,002 |
) |
|
(1,047 |
) |
|
241,167 |
|
|
— |
|
|
166,118 |
|
Cash and cash equivalents—beginning of year |
|
|
82,017 |
|
|
1,666 |
|
|
97,103 |
|
|
— |
|
|
180,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents—end of year |
|
$ |
8,015 |
|
$ |
619 |
|
$ |
338,270 |
|
$ |
— |
|
$ |
346,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|