BUSINESS SEGMENTS

12 Months Ended

Dec. 26, 2015

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

In the fourth quarter of 2015, the Company changed its reportable segment structure to improve transparency. The Company now has five reportable segments and its management structure was changed to align with this new reporting structure. A new reportable segment, Energy & Mining, includes the businesses primarily serving the energy and mining end markets. This segment includes the access systems applications businesses and offshore structures business that was formerly part of the Engineered Infrastructure Products (EIP) segment, and the grinding media business that was formerly included in the "Other" category. The remaining businesses from the EIP segment was also renamed "Engineered Support Structures". The last change in the reporting structure was moving the tubing business from the "Other" category to the Irrigation segment. Prior year information in this footnote has been updated to match the new reportable segment structure.

Each segment is global in nature with a manager responsible for segment operational performance and the allocation of capital within the segment. Net corporate expense is net of certain service‑related expenses that are allocated to business units generally on the basis of employee headcounts and sales dollars.

Reportable segments are as follows:

ENGINEERED SUPPORT STRUCTURES: This segment consists of the manufacture of engineered metal structures and components for the global lighting and traffic, wireless communication, and roadway safety industries;

ENERGY AND MINING: This segment, all outside of the United States, consists of the manufacture of access systems applications, forged steel grinding media, on and off shore oil, gas, and wind energy structures;

UTILITY SUPPORT STRUCTURES: This segment consists of the manufacture of engineered steel and concrete structures for the global utility industry;

COATINGS: This segment consists of galvanizing, anodizing and powder coating services on a global basis; and

IRRIGATION: This segment consists of the manufacture of agricultural irrigation equipment and related parts and services for the global agricultural industry and tubular products for industrial customers.

In addition to these five reportable segments, the Company has other businesses and activities that individually are not more than 10% of consolidated sales. This includes the distribution of industrial fasteners and are reported in the "Other" category.

The accounting policies of the reportable segments are the same as those described in Note 1. The Company evaluates the performance of its business segments based upon operating income and invested capital. The Company does not allocate interest expense, non-operating income and deductions, or income taxes to its business segments.

(18) BUSINESS SEGMENTS (Continued)

Summary by Business

	2015		2014		2013
SALES:
Engineered Support Structures segment:
Lighting, Traffic, and Roadway Products	$	600,280	$	648,352	$	660,423
Communication Products	171,173		161,618		139,888
Engineered Support Structures segment	771,453		809,970		800,311
Energy and Mining segment:
Offshore and Other Complex Steel Structures	103,068		146,432		—
Grinding Media	96,442		116,056		138,634
Access Systems	138,349		181,495		201,498
Energy and Mining segment	337,859		443,983		340,132
Utility Support Structures segment:
Steel	578,996		714,427		853,459
Concrete	95,581		110,589		108,579
Utility Support Structures segment	674,577		825,016		962,038
Coatings segment	302,385		333,853		357,635
Irrigation segment	612,201		846,326		970,890
Other	7,247		10,108		51,645
Total	2,705,722		3,269,256		3,482,651
INTERSEGMENT SALES:
Engineered Support Structures	23,003		74,963		103,974
Energy and Mining	4,652		295		332
Utility Support Structures	1,239		2,451		2,343
Coatings	46,912		55,418		56,649
Irrigation	6,430		6,609		6,523
Other	4,562		6,377		8,619
Total	86,798		146,113		178,440
NET SALES:
Engineered Support Structures segment	748,450		735,007		696,337
Energy and Mining segment	333,207		443,688		339,800
Utility Support Structures segment	673,338		822,565		959,695
Coatings segment	255,473		278,435		300,986
Irrigation segment	605,771		839,717		964,367
Other	2,685		3,731		43,026
Total	$	2,618,924	$	3,123,143	$	3,304,211

(18) BUSINESS SEGMENTS (Continued)

	2015			2014			2013
OPERATING INCOME (LOSS):
Engineered Support Structures	$	59,592		$	66,024		$	65,861
Energy and Mining	(18,762		)	41,342			35,087
Utility Support Structures	37,847			95,118			174,740
Coatings	27,369			60,921			74,917
Irrigation	84,537			151,508			206,394
Other	(9,802		)	(1,535		)	(7,213		)
Corporate	(49,086		)	(55,662		)	(76,717		)
Total	131,695			357,716			473,069
Interest expense, net	(41,325		)	(30,744		)	(26,025		)
Costs associated with refinancing of debt	—			(38,705		)	—
Other	2,637			(4,084		)	2,373
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	$	93,007		$	284,183		$	449,417
TOTAL ASSETS:
Engineered Support Structures	$	611,201		$	640,132		$	616,231
Energy and Mining	396,366			500,407			353,018
Utility Support Structures	422,021			470,720			524,113
Coatings	270,793			301,707			315,663
Irrigation	310,967			360,883			351,742
Other	2,267			4,930			2,538
Corporate	385,813			450,889			613,189
Total	$	2,399,428		$	2,729,668		$	2,776,494

CAPITAL EXPENDITURES:
Engineered Support Structures	$	11,445	$	11,849	$	12,905
Energy and Mining	3,544		4,893		4,515
Utility Support Structures	11,815		9,014		39,347
Coatings	6,836		14,029		12,206
Irrigation	7,756		21,113		26,039
Other	1,396		1,181		105
Corporate	2,676		10,944		11,636
Total	$	45,468	$	73,023	$	106,753

(18) BUSINESS SEGMENTS (Continued)

	2015		2014		2013
DEPRECIATION AND AMORTIZATION:
Engineered Support Structures	$	22,810	$	22,363	$	22,037
Energy and Mining	20,733		22,146		13,167
Utility Support Structures	17,959		17,811		14,375
Coatings	12,962		14,615		14,656
Irrigation	11,746		10,471		7,859
Other	570		123		2,336
Corporate	4,364		1,799		3,006
Total	$	91,144	$	89,328	$	77,436

Summary by Geographical Area by Location of Valmont Facilities:

	2015		2014		2013
NET SALES:
United States	$	1,586,702	$	1,808,427	$	2,077,812
Australia	347,975		439,530		492,698
Denmark	98,628		146,432		—
Other	585,619		728,754		733,701
Total	$	2,618,924	$	3,123,143	$	3,304,211
LONG-LIVED ASSETS:
United States	$	582,783	$	616,718	$	530,042
Australia	259,326		316,382		342,320
Denmark	90,463		111,161		—
Other	240,004		292,466		306,293
Total	$	1,172,576	$	1,336,727	$	1,178,655

No single customer accounted for more than 10% of net sales in 2015, 2014, or 2013. Net sales by geographical area are based on the location of the facility producing the sales and do not include sales to other operating units of the company. While Australia accounted for approximately 13% of the Company's net sales in 2015, no other foreign country accounted for more than 5% of the Company’s net sales.

Operating income by business segment are based on net sales less identifiable operating expenses and allocations and includes profits recorded on sales to other operating units of the company. Long-lived assets consist of property, plant and equipment, net of depreciation, goodwill, other intangible assets and other assets. Long-lived assets by geographical area are based on location of facilities.