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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