BUSINESS SEGMENTS

12 Months Ended

Dec. 30, 2017

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

In the fourth quarter of 2017, the Company's management structure and reporting was changed to reflect management's expectations of the future growth of certain product lines and to take into consideration the expected divestiture of the grinding media business, subject to regulatory approval, which historically was reported in the Energy and Mining segment. Grinding media will be reported in "Other" pending the completion of its divestiture. The access systems applications product line is now part of the Engineered Support Structures ("ESS") segment and the offshore and other complex structures product line is now part of the Utility segment. In the first quarter of 2017, the Company also changed its reportable segment operating income to separate out the LIFO expense (benefit). Certain inventories are accounted for using the LIFO basis in the consolidated financial statements. The segment financial information have been accordingly reclassified in this report to reflect these changes, for all periods presented.

The Company now has four reportable segments based on its management 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 and distribution of engineered metal, and composite structures and components for lighting and traffic, access systems, wireless communication, and roadway safety;

UTILITY SUPPORT STRUCTURES: This segment consists of the manufacture of engineered steel and concrete structures for the utility industry and on and offshore and other complex steel structures used in energy generation and distribution outside the United States;

COATINGS: This segment consists of galvanizing, anodizing and powder coating services; and

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

In addition to these four reportable segments, the Company had other businesses and activities that individually are not more than 10% of consolidated sales, operating income or assets. This includes the manufacture of forged steel grinding media for the mining industry and is 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 LIFO expense, interest expense, non-operating income and deductions, or income taxes to its business segments.

(19) BUSINESS SEGMENTS (Continued)

Summary by Business

	2017		2016		2015
SALES:
Engineered Support Structures segment:
Lighting, Traffic, and Roadway Products	$	633,178	$	612,868	$	580,877
Communication Products	171,718		162,148		162,635
Access Systems	133,206		131,703		138,349
Engineered Support Structures segment	938,102		906,719		881,861
Utility Support Structures segment:
Steel	658,604		538,284		582,930
Concrete	99,738		90,256		95,581
Offshore and Other Complex Steel Structures	100,773		107,824		103,068
Utility Support Structures segment	859,115		736,364		781,579
Coatings segment	318,891		289,481		302,385
Irrigation segment	652,430		575,204		612,201
Other	76,300		83,110		103,690
Total	2,844,838		2,590,878		2,681,716
INTERSEGMENT SALES:
Engineered Support Structures	25,862		15,620		1,059
Utility Support Structures	2,871		747		3,829
Coatings	62,080		45,604		46,912
Irrigation	8,058		7,231		6,430
Other	—		—		4,562
Total	98,871		69,202		62,792
NET SALES:
Engineered Support Structures segment	912,240		891,099		880,802
Utility Support Structures segment	856,244		735,617		777,750
Coatings segment	256,811		243,877		255,473
Irrigation segment	644,372		567,973		605,771
Other	76,300		83,110		99,128
Total	$	2,745,967	$	2,521,676	$	2,618,924

(19) BUSINESS SEGMENTS (Continued)

	2017			2016			2015
OPERATING INCOME (LOSS):
Engineered Support Structures	$	62,960		$	72,273		$	28,792
Utility Support Structures	97,853			71,171			38,324
Coatings	50,179			46,596			27,369
Irrigation	101,498			90,945			78,218
Other	2,134			8,730			(4,767		)
Adjustment to LIFO inventory valuation method	(5,680		)	(2,972		)	12,103
Corporate	(42,512		)	(43,239		)	(48,344		)
Total	266,432			243,504			131,695
Interest expense, net	(39,908		)	(41,304		)	(41,325		)
Other	1,940			18,254			2,637
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	$	228,464		$	220,454		$	93,007
TOTAL ASSETS:
Engineered Support Structures	$	846,881		$	776,161		$	790,004
Utility Support Structures	597,231			544,015			569,205
Coatings	288,890			274,666			270,793
Irrigation	369,798			313,982			310,967
Other	68,934			65,296			72,646
Corporate	430,516			417,611			378,767
Total	$	2,602,250		$	2,391,731		$	2,392,382

CAPITAL EXPENDITURES:
Engineered Support Structures	$	16,433	$	13,313	$	12,415
Utility Support Structures	14,012		7,969		13,467
Coatings	11,080		24,873		6,836
Irrigation	7,055		8,836		7,756
Other	2,376		1,601		2,318
Corporate	4,310		1,328		2,676
Total	$	55,266	$	57,920	$	45,468

(19) BUSINESS SEGMENTS (Continued)

	2017		2016		2015
DEPRECIATION AND AMORTIZATION:
Engineered Support Structures	$	27,637	$	27,824	$	30,775
Utility Support Structures	25,079		24,639		27,305
Coatings	15,115		12,883		12,962
Irrigation	11,173		12,097		11,746
Other	2,486		2,502		3,992
Corporate	3,467		2,472		4,364
Total	$	84,957	$	82,417	$	91,144

Summary by Geographical Area by Location of Valmont Facilities:

	2017		2016		2015
NET SALES:
United States	$	1,702,826	$	1,535,321	$	1,586,702
Australia	356,959		315,470		347,975
Denmark	100,773		99,719		98,628
Other	585,409		571,166		585,619
Total	$	2,745,967	$	2,521,676	$	2,618,924
LONG-LIVED ASSETS:
United States	$	544,724	$	568,085	$	575,737
Australia	227,483		216,416		259,326
Denmark	90,372		85,654		90,463
Other	267,106		268,360		240,004
Total	$	1,129,685	$	1,138,515	$	1,165,530

No single customer accounted for more than 10% of net sales in 2017, 2016, or 2015. 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. Australia accounted for approximately 13% of the Company's net sales in 2017; 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.