Calculation of Annual TVI (continued) 140 Valmont Industries, Inc. | 2016 Investor Day 2010 2011 2012 2013 2014 2015 TVI Calculation Operating Income $ 193,720 3 $ 263,310 $ 382,296 $ 473,069 $ 357,716 $ 237,520 1 Tax rate 36.0% 30.2% 35.2% 35.1% 33.4% 32.2% 2 Tax effected Operating Income $ 123,981 $ 183,790 $ 247,728 $ 307,022 $ 238,239 $ 161,039 Total Assets 2,090,743 2,306,076 2,568,551 2,776,494 2,729,668 2,399,428 Less: Accounts payable (179,814) (234,537) (212,424) (216,121) (196,565) (179,983) Less: Accrued expenses (153,686) (157,128) (180,408) (194,527) (176,431) (175,947) Less: Dividends Payable (4,352) (4,767) (6,002) (6,706) (9,086) (8,571) Less: Defined benefit pension obligation (104,171) (68,024) (112,043) (154,397) (150,124) (179,323) Less: Deferred compensation (23,300) (30,741) (31,920) (39,109) (47,932) (48,417) Less: Other non-current liabilities (47,713) (41,418) (44,252) (51,731) (45,541) (40,290) Invested Capital 1,577,707 1,769,461 1,981,502 2,113,903 2,103,989 1,766,897 Average Invested Capital 1,303,839 1,673,584 1,875,482 2,047,703 2,108,946 1,935,443 Cost of Capital 8.5% 8.5% 8.5% 8.5% 8.5% 8.5% Required Capital 110,826 142,255 159,416 174,055 179,260 164,513 TVI in Excess of Cost of Capital $ 13,155 $ 41,536 $ 88,312 $ 132,967 $ 58,978 $ (3,474) 1 Figure reported for 2015 is adjusted operating income. See the Company's Reg. G reconciliation at the beginni For purposes of this calculation, management has added back $41,970 of goodwill and intangible asset impairments, $39,852 of restructuring expense, $17,000 of expense related to the utility commercial settlement, and the $7,003 allowance for a Chinese receivable. 2 The effective tax rate in 2015 excludes the effects of the goodwill impairments which are not deductible for income tax purposes and the $7.1 million deferred income tax expense recognized as a result of the U.K. corporate tax rate decreasing from 20% to 18%. The effective tax rate in 2015 including these items is 50.7%. 3 The Company incurred certain expenses in 2010 associated with the acquisition of Delta plc (Delta). The expenses included $15,307 of SG&A expenses related to the Company's evaluation of Delta and other required expenses associated with the Company's offer and ongoing integration. GAAP operating income for 2010 was $178,413.
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