BUSINESS SEGMENTS

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 and sales dollars.

Reportable segments are as follows:

ENGINEERED SUPPORT STRUCTURES: This segment consists of the manufacture of engineered metal and composite poles, towers, and components for global 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 until its divestiture in 2018.

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.

(20) BUSINESS SEGMENTS (Continued)

Summary by Business



	2018		2017		2016
SALES:
Engineered Support Structures segment:
Lighting, Traffic, and Roadway Products	$	706,582	$	633,178	$	612,868
Communication Products	149,817		171,718		162,148
Access Systems	130,481		133,206		131,703
Engineered Support Structures segment	986,880		938,102		906,719
Utility Support Structures segment:
Steel	637,979		658,604		538,284
Concrete	111,875		99,738		90,256
Engineered Solar Tracker Solutions	16,760		—		—
Offshore and Other Complex Steel Structures	92,559		100,773		107,824
Utility Support Structures segment	859,173		859,115		736,364
Coatings segment	353,351		318,891		289,481
Irrigation segment:
North America	386,683		369,832		351,436
International	246,983		282,598		223,768
Irrigation segment	633,666		652,430		575,204
Other	23,080		76,300		83,110
Total	2,856,150		2,844,838		2,590,878
INTERSEGMENT SALES:
Engineered Support Structures	19,522		25,862		15,620
Utility Support Structures	3,967		2,871		747
Coatings	66,612		62,080		45,604
Irrigation	8,905		8,058		7,231
Total	99,006		98,871		69,202
NET SALES:
Engineered Support Structures segment	967,358		912,240		891,099
Utility Support Structures segment	855,206		856,244		735,617
Coatings segment	286,739		256,811		243,877
Irrigation segment	624,761		644,372		567,973
Other	23,080		76,300		83,110
Total	$	2,757,144	$	2,745,967	$	2,521,676

(20) BUSINESS SEGMENTS (Continued)



	2018			2017			2016
OPERATING INCOME (LOSS):
Engineered Support Structures	$	34,776		$	62,960		$	72,273
Utility Support Structures	64,766			97,853			71,171
Coatings	55,325			50,179			46,596
Irrigation	97,722			101,498			90,945
Other	(913		)	2,134			8,730
Adjustment to LIFO inventory valuation method	(9,892		)	(5,680		)	(2,972		)
Corporate	(39,504		)	(41,864		)	(41,369		)
Total	202,280			267,080			245,374
Interest expense, net	(39,569		)	(39,908		)	(41,304		)
Costs associated with refinancing of debt	(14,820		)	—			—
Loss from divestiture of grinding media business	(6,084		)	—			—
Other	1,634			1,292			16,384
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	$	143,441		$	228,464		$	220,454

TOTAL ASSETS:
Engineered Support Structures	$	867,735		$	846,881		$	776,161
Utility Support Structures	700,915			597,231			544,015
Coatings	294,951			288,890			274,666
Irrigation	347,894			369,798			313,982
Other	—			68,934			65,296
Corporate	318,779			430,516			417,611
Total	$	2,530,274		$	2,602,250		$	2,391,731



CAPITAL EXPENDITURES:
Engineered Support Structures	$	26,783	$	16,433	$	13,313
Utility Support Structures	17,442		14,012		7,969
Coatings	10,320		11,080		24,873
Irrigation	7,249		7,055		8,836
Other	7		2,376		1,601
Corporate	10,184		4,310		1,328
Total	$	71,985	$	55,266	$	57,920

(20) BUSINESS SEGMENTS (Continued)



	2018		2017		2016
DEPRECIATION AND AMORTIZATION:
Engineered Support Structures	$	27,274	$	27,637	$	27,824
Utility Support Structures	23,618		25,079		24,639
Coatings	15,956		15,115		12,883
Irrigation	11,335		11,173		12,097
Other	775		2,486		2,502
Corporate	3,869		3,467		2,472
Total	$	82,827	$	84,957	$	82,417

Summary by Geographical Area by Location of Valmont Facilities:



	2018		2017		2016
NET SALES:
United States	$	1,771,390	$	1,702,826	$	1,535,321
Australia	325,553		356,959		315,470
Denmark	92,559		100,773		99,719
Other	567,642		585,409		571,166
Total	$	2,757,144	$	2,745,967	$	2,521,676

LONG-LIVED ASSETS:
United States	$	624,143	$	544,724	$	568,085
Australia	168,438		227,483		216,416
Denmark	64,497		90,372		85,654
Other	332,556		267,106		268,360
Total	$	1,189,634	$	1,129,685	$	1,138,515

No single customer accounted for more than 10% of net sales in 2018, 2017, or 2016. 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 12% of the Company's net sales in 2018; 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.