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 which historically was reported in the Energy and Mining segment. Grinding media is reported in "Other" and was sold in the second quarter of 2018. 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. The segment financial information have been accordingly reclassified in this report to reflect these changes, for all periods presented.

The Company 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.

Reportable segments are as follows:

ENGINEERED SUPPORT STRUCTURES: This segment consists of the manufacture of engineered metal and composite structures and components for lighting, traffic, and wireless communication markets, engineered access systems, integrated solutions for smart cities, and highway safety products;

UTILITY SUPPORT STRUCTURES: This segment consists of the manufacture of engineered steel and concrete structures for the global utility transmission, distribution, and generation applications and on and offshore and other complex steel structures used in energy generation and distribution outside of North America, and inspection services;

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

IRRIGATION: This segment consists of the manufacture of agricultural irrigation equipment, parts, services, tubular products, water management solutions, and technology for precision agriculture.

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 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.

(9) BUSINESS SEGMENTS (Continued)

Summary by Business



	Thirteen Weeks Ended						Twenty-six Weeks Ended
	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
SALES:
Engineered Support Structures segment:
Lighting, Traffic, and Highway Safety Products	$	178,930		$	161,474		$	339,374		$	302,276
Communication Products	39,592			43,813			73,705			75,289
Access Systems	32,189			31,516			62,586			64,187
Engineered Support Structures segment	250,711			236,803			475,665			441,752
Utility Support Structures segment:
Steel	146,117			163,079			310,100			311,433
Concrete	30,185			22,906			53,847			49,110
Offshore and Other Complex Steel Structures	21,417			24,619			43,634			50,326
Utility Support Structures segment	197,719			210,604			407,581			410,869
Coatings segment	91,572			79,781			176,519			153,249
Irrigation segment	162,936			188,287			350,889			355,511
Other	4,681			21,072			23,080			40,666
Total	707,619			736,547			1,433,734			1,402,047
INTERSEGMENT SALES:
Engineered Support Structures segment	4,670			5,525			13,708			17,398
Utility Support Structures segment	1,188			982			1,191			1,217
Coatings segment	17,033			15,181			33,522			29,317
Irrigation segment	2,323			2,122			4,224			3,905
Other	—			—			—			—
Total	25,214			23,810			52,645			51,837
NET SALES:
Engineered Support Structures segment	246,041			231,278			461,957			424,354
Utility Support Structures segment	196,531			209,622			406,390			409,652
Coatings segment	74,539			64,600			142,997			123,932
Irrigation segment	160,613			186,165			346,665			351,606
Other	4,681			21,072			23,080			40,666
Total	$	682,405		$	712,737		$	1,381,089		$	1,350,210

OPERATING INCOME:
Engineered Support Structures segment	$	12,965		$	20,288		$	19,912		$	29,752
Utility Support Structures segment	20,841			22,394			44,208			46,601
Coatings segment	14,868			12,108			26,735			21,514
Irrigation segment	27,728			34,670			61,615			64,961
Other	(334		)	1,859			(913		)	3,945
Adjustment to LIFO inventory valuation method	(1,651		)	(434		)	(2,732		)	(1,213		)
Corporate	(10,747		)	(12,435		)	(21,195		)	(22,454		)
Total	$	63,670		$	78,450		$	127,630		$	143,106