BUSINESS SEGMENTS

9 Months Ended

Sep. 28, 2019

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 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 substations;

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 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 28, 2019			September 29, 2018			September 28, 2019			September 29, 2018
SALES:
Engineered Support Structures segment:
Lighting, Traffic, and Highway Safety Products	$	191,262		$	183,184		$	530,021		$	522,558
Communication Products	48,391			35,985			138,710			109,690
Access Systems	28,405			32,355			88,363			94,941
Engineered Support Structures segment	268,058			251,524			757,094			727,189
Utility Support Structures segment:
Steel	153,433			161,847			460,309			471,947
Concrete	28,011			27,715			88,415			81,562
Engineered Solar Tracker Solutions	3,418			6,090			43,642			6,090
Offshore and Other Complex Steel Structures	20,096			22,617			66,343			66,251
Utility Support Structures segment	204,958			218,269			658,709			625,850
Coatings segment	92,957			90,433			278,142			266,952
Irrigation segment:
North America	82,840			78,168			294,127			301,887
International	61,340			62,007			158,054			189,177
Irrigation segment	144,180			140,175			452,181			491,064
Other	—			—			—			23,080
Total	710,153			700,401			2,146,126			2,134,135
INTERSEGMENT SALES:
Engineered Support Structures segment	1,564			3,093			5,066			16,801
Utility Support Structures segment	762			326			2,246			1,517
Coatings segment	16,035			15,886			49,900			49,408
Irrigation segment	1,452			2,404			5,564			6,628
Total	19,813			21,709			62,776			74,354
NET SALES:
Engineered Support Structures segment	266,494			248,431			752,028			710,388
Utility Support Structures segment	204,196			217,943			656,463			624,333
Coatings segment	76,922			74,547			228,242			217,544
Irrigation segment	142,728			137,771			446,617			484,436
Other	—			—			—			23,080
Total	$	690,340		$	678,692		$	2,083,350		$	2,059,781

OPERATING INCOME:
Engineered Support Structures segment	$	21,825		$	16,499		$	55,152		$	36,411
Utility Support Structures segment	20,362			2,090			61,443			46,298
Coatings segment	13,865			14,373			39,037			41,108
Irrigation segment	18,204			21,302			59,868			82,917
Other	—			—			—			(913		)
Adjustment to LIFO inventory valuation method	2,799			(2,780		)	5,539			(5,512		)
Corporate	(13,192		)	(13,124		)	(38,360		)	(34,319		)
Total	$	63,863		$	38,360		$	182,679		$	165,990