VALSPAR CORP - FORM 8-K - EX-99.1

Exhibit 99.1

Pro Forma Condensed Consolidated Statement of Income

For the Year Ended October 28, 2016

(In thousands, except per share data)


	Valspar Corporation		Pro Forma Adjustments			Pro Forma Valspar Corporation
Net sales	$	4,190,552	$	(229,413	)	$	3,961,139
Cost of sales		2,654,968		(140,355	)		2,514,613

Gross profit		1,535,584		(89,058	)		1,446,526

Research and development		139,318		(8,657	)		130,661
Selling, general and administrative		867,227		(21,181	)		846,046

Operating expenses		1,006,545		(29,838	)		976,707

Income from operations		529,039		(59,220	)		469,819
Interest expense		90,560					90,560
Other expense - net		3,960					3,960

Income before income taxes		434,519		(59,220	)		375,299
Income taxes		81,479		(20,727	)		60,752

Net income	$	353,040	$	(38,493	)	$	314,547

Net income per common share - basic	$	4.47				$	3.98
Net income per common share - diluted	$	4.36				$	3.88
Average number of common shares outstanding
- basic		79,009,955					79,009,955
- diluted		81,019,976					81,019,976

Unaudited Pro Forma Condensed Consolidated Statement of Income

For the Six Months Ended April 28, 2017

(In thousands, except per share data)


	Valspar Corporation			Pro Forma Adjustments			Pro Forma Valspar Corporation
Net sales	$	2,003,485		$	(119,236	)	$	1,884,249
Cost of sales		1,317,059			(75,430	)		1,241,629

Gross profit		686,426			(43,806	)		642,620

Research and development		68,708			(4,296	)		64,412
Selling, general and administrative		415,089			(10,929	)		404,160

Operating expenses		483,797			(15,225	)		468,572

Income from operations		202,629			(28,581	)		174,048
Interest expense		45,388						45,388
Other (income) - net		(2,822	)					(2,822	)

Income before income taxes		160,063			(28,581	)		131,482
Income taxes		43,769			(10,003	)		33,766

Net income	$	116,294		$	(18,578	)	$	97,716

Net income per common share - basic	$	1.47					$	1.23
Net income per common share - diluted	$	1.43					$	1.20
Average number of common shares outstanding
- basic		79,308,624						79,308,624
- diluted		81,424,897						81,424,897

Unaudited Pro Forma Condensed Consolidated Balance Sheet

As of April 28, 2017

(In thousands, except per share data)


	Valspar Corporation		Pro Forma Adjustments			Pro Forma Valspar Corporation
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	340,878				$	340,878
Restricted cash		9					9
Accounts and notes receivable less allowances		826,826	$	(26,013	)		800,813
Inventories		542,082		(20,346	)		521,736
Deferred income taxes		32,715					32,715
Prepaid expenses and other		104,824		(36	)		104,788

TOTAL CURRENT ASSETS		1,847,334		(46,395	)		1,800,939

GOODWILL		1,270,334					1,270,334
INTANGIBLES, NET		609,977					609,977
OTHER ASSETS		105,607		(65	)		105,542
LONG-TERM DEFERRED INCOME TAXES		21,637					21,637
PROPERTY, PLANT AND EQUIPMENT, NET		668,298		(14,128	)		654,170

TOTAL ASSETS		4,523,187		(60,588	)		4,462,599

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Short-term debt		284,279					284,279
Current portion of long-term debt		150,106					150,106
Trade accounts payable		605,640		(18,086	)		587,554
Income taxes payable		13,971					13,971
Other accrued liabilities		403,227		(9,989	)		393,238

TOTAL CURRENT LIABILITIES		1,457,223		(28,075	)		1,429,148

LONG-TERM DEBT, NET		1,543,704					1,543,704
LONG-TERM DEFERRED INCOME TAXES		186,146					186,146
OTHER LONG-TERM LIABILITIES		166,590					166,590

TOTAL LIABILITIES		3,353,663		(28,075	)		3,325,588

SHAREHOLDERS’ EQUITY:
TOTAL SHAREHOLDERS’ EQUITY		1,169,524		(32,513	)		1,137,011

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,523,187	$	(60,588	)	$	4,462,599

VALSPAR CORP - FORM 8-K - EX-99.1 - June 1, 2017