BUSINESS SEGMENTS

12 Months Ended

Dec. 29, 2012

BUSINESS SEGMENTS

BUSINESS SEGMENTS

(17) 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 number of employees or sales dollars.

        Reportable segments are as follows:

•         ENGINEERED INFRASTRUCTURE PRODUCTS:     This segment consists of the manufacture of engineered metal structures and components for the global lighting and traffic, wireless communication, roadway safety and access systems applications;

          UTILITY SUPPORT STRUCTURES:    This segment consists of the manufacture of engineered steel and concrete structures for the global utility industry;

          COATINGS:     This segment consists of galvanizing, anodizing and powder coating services on a global basis; and

          IRRIGATION:     This segment consists of the manufacture of agricultural irrigation equipment and related parts and services for the global agricultural industry.

        In addition to these four reportable segments, the Company has other businesses and activities that individually are not more than 10% of consolidated sales. These include the manufacture of forged steel grinding media for the mining industry, tubular products for industrial customers, the electrolytic manganese dioxide for disposable batteries and the distribution of industrial fasteners and are 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 interest expense, non-operating income and deductions, or income taxes to its business segments.

Summary by Business Segments

	2012		2011		2010
SALES:
Engineered Infrastructure Products segment:
Lighting, Traffic, and Roadway Products	$	587,655	$	573,121	$	490,359
Communication Products		134,711		109,131		105,852
Access Systems		159,740		135,341		81,103
Engineered Infrastructure Products segment		882,106		817,593		677,314
Utility Support Structures segment:
Steel		752,621		546,926		407,703
Concrete		120,899		77,944		67,217
Utility Support Structures segment		873,520		624,870		474,920
Coatings segment		334,552		327,322		238,273
Irrigation segment		750,641		666,007		443,371
Other		328,737		331,986		198,550
Total		3,169,556		2,767,778		2,032,428
INTERSEGMENT SALES:
Engineered Infrastructure Products		48,793		24,996		8,044
Utility Support Structures		3,857		4,105		2,219
Coatings		52,478		46,534		29,906
Irrigation		49		111		12
Other		34,838		30,552		16,742
Total		140,015		106,298		56,923
NET SALES:
Engineered Infrastructure Products segment		833,313		792,597		669,270
Utility Support Structures segment		869,663		620,765		472,701
Coatings segment		282,074		280,788		208,367
Irrigation segment		750,592		665,896		443,359
Other		293,899		301,434		181,808
Total	$	3,029,541	$	2,661,480	$	1,975,505

	2012			2011			2010
OPERATING INCOME (LOSS):
Engineered Infrastructure Products	$	54,013		$	40,753		$	52,151
Utility Support Structures		129,025			70,643			51,741
Coatings		71,641			58,656			42,602
Irrigation		143,605			107,759			61,973
Other		46,575			45,670			28,499
Corporate		(62,563	)		(60,171	)		(58,553	)
Total		382,296			263,310			178,413
Interest expense, net		(23,353	)		(26,910	)		(26,107	)
Other		347			(2,643	)		676
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	$	359,290		$	233,757		$	152,982
TOTAL ASSETS:
Engineered Infrastructure Products	$	784,659		$	750,992		$	762,600
Utility Support Structures		510,943			432,657			360,256
Coatings		334,841			283,588			325,675
Irrigation		287,354			267,615			209,850
Other		202,289			203,185			222,984
Corporate		448,465			368,039			209,378
Total	$	2,568,551		$	2,306,076		$	2,090,743
CAPITAL EXPENDITURES:
Engineered Infrastructure Products	$	20,244		$	13,328		$	17,050
Utility Support Structures		41,081			31,501			5,228
Coatings		13,280			22,881			5,570
Irrigation		12,618			8,766			4,248
Other		4,428			4,501			1,582
Corporate		5,423			2,092			2,414
Total	$	97,074		$	83,069		$	36,092
DEPRECIATION AND AMORTIZATION:
Engineered Infrastructure Products	$	27,164		$	30,637		$	25,281
Utility Support Structures		13,284			12,548			11,320
Coatings		12,015			12,175			8,376
Irrigation		6,209			6,006			4,823
Other		8,168			8,539			6,260
Corporate		3,378			4,655			3,603
Total	$	70,218		$	74,560		$	59,663

Summary by Geographical Area by Location of Valmont Facilities:

	2012		2011		2010
NET SALES:
United States	$	1,870,703	$	1,473,819	$	1,088,724
Australia		499,025		491,395		273,551
China		135,398		148,219		121,437
France		74,217		79,329		99,508
Other		450,198		468,718		392,285
Total	$	3,029,541	$	2,661,480	$	1,975,505
LONG-LIVED ASSETS:
United States	$	470,154	$	439,147	$	450,587
Australia		321,456		329,453		283,714
France		10,736		11,342		11,917
China		34,359		32,565		30,877
Canada		77,945		36,979		39,252
Other		227,961		203,647		180,170
Total	$	1,142,611	$	1,053,133	$	996,517

        No single customer accounted for more than 10% of net sales in 2012, 2011, or 2010. 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. While Australia accounted for approximately 16% of the Company's net sales in 2012, no other foreign country accounted for more than 5% of the Company's net sales.

        Operating income by business segment and geographical areas 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.