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 has 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 poles, towers, and components for lighting, traffic, and wireless communication markets, engineered access systems, integrated structure 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, renewable energy generation equipment, 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.

(10) BUSINESS SEGMENTS (Continued)

Summary by Business



	Thirteen Weeks Ended						Thirty-nine Weeks Ended
	September 29, 2018			September 30, 2017			September 29, 2018			September 30, 2017
SALES:
Engineered Support Structures segment:
Lighting, Traffic, and Highway Safety Products	$	183,184		$	165,031		$	522,558		$	467,307
Communication Products	35,985			46,324			109,690			121,613
Access Systems	32,355			34,909			94,941			99,096
Engineered Support Structures segment	251,524			246,264			727,189			688,016
Utility Support Structures segment:
Steel	161,847			160,952			471,947			472,385
Concrete	27,715			18,811			81,562			67,921
Engineered Solar Tracker Solutions	6,090			—			6,090			—
Offshore and Other Complex Steel Structures	22,617			25,046			66,251			75,372
Utility Support Structures segment	218,269			204,809			625,850			615,678
Coatings segment	90,433			82,593			266,952			235,842
Irrigation segment	140,175			147,428			491,064			502,939
Other	—			19,800			23,080			60,466
Total	700,401			700,894			2,134,135			2,102,941
INTERSEGMENT SALES:
Engineered Support Structures segment	3,093			1,589			16,801			18,987
Utility Support Structures segment	326			1,235			1,517			2,452
Coatings segment	15,886			14,913			49,408			44,230
Irrigation segment	2,404			2,378			6,628			6,283
Other	—			—			—			—
Total	21,709			20,115			74,354			71,952
NET SALES:
Engineered Support Structures segment	248,431			244,675			710,388			669,029
Utility Support Structures segment	217,943			203,574			624,333			613,226
Coatings segment	74,547			67,680			217,544			191,612
Irrigation segment	137,771			145,050			484,436			496,656
Other	—			19,800			23,080			60,466
Total	$	678,692		$	680,779		$	2,059,781		$	2,030,989

OPERATING INCOME:
Engineered Support Structures segment	$	16,499		$	16,986		$	36,411		$	46,738
Utility Support Structures segment	2,090			22,845			46,298			69,446
Coatings segment	14,373			14,577			41,108			36,091
Irrigation segment	21,302			18,235			82,917			83,196
Other	—			(217		)	(913		)	3,728
Adjustment to LIFO inventory valuation method	(2,780		)	(1,626		)	(5,512		)	(2,839		)
Corporate	(13,124		)	(10,710		)	(34,319		)	(33,164		)
Total	$	38,360		$	60,090		$	165,990		$	203,196