BUSINESS SEGMENTS

12 Months Ended

Dec. 28, 2013

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 employee headcounts and 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, 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.

        In 2013, the Company changed its presentation of certain intersegment utility structure sales to align with management's current reporting structure. Fiscal 2012 and 2011 reporting was reclassified to conform with the 2013 presentation. Accordingly, fiscal 2012 and 2011 EIP segment sales (and the associated intersegment sales elimination) for 2012 increased by $49,427 and $21,657, respectively. Fiscal 2012 and 2011 segment sales (after intersegment sales eliminations) and operating income were unchanged from amounts previously reported.

Summary by Business Segments

	2013		2012		2011
SALES:
Engineered Infrastructure Products segment:
Lighting, Traffic, and Roadway Products	$	660,423	$	637,082	$	595,048
Communication Products		139,888		134,711		109,131
Access Systems		201,498		159,740		135,341
Engineered Infrastructure Products segment		1,001,809		931,533		839,520
Utility Support Structures segment:
Steel		853,459		752,621		546,926
Concrete		108,579		120,899		77,944
Utility Support Structures segment		962,038		873,520		624,870
Coatings segment		357,635		334,552		327,322
Irrigation segment		882,179		750,641		666,007
Other		303,595		328,737		331,986
Total		3,507,256		3,218,983		2,789,705
INTERSEGMENT SALES:
Engineered Infrastructure Products segment		104,306		98,220		46,923
Utility Support Structures segment		2,343		3,857		4,105
Coatings segment		56,649		52,478		46,534
Irrigation segment		5		49		111
Other		39,742		34,838		30,552
Total		203,045		189,442		128,225
NET SALES:
Engineered Infrastructure Products segment		897,503		833,313		792,597
Utility Support Structures segment		959,695		869,663		620,765
Coatings segment		300,986		282,074		280,788
Irrigation segment		882,174		750,592		665,896
Other		263,853		293,899		301,434
Total	$	3,304,211	$	3,029,541	$	2,661,480

	2013			2012			2011
OPERATING INCOME (LOSS):
Engineered Infrastructure Products	$	87,647		$	54,013		$	40,753
Utility Support Structures		174,740			129,025			70,643
Coatings		74,917			71,641			58,656
Irrigation		181,498			143,605			107,759
Other		30,984			46,575			45,670
Corporate		(76,717	)		(62,563	)		(60,171	)
Total		473,069			382,296			263,310
Interest expense, net		(26,025	)		(23,353	)		(26,910	)
Other		2,373			347			(2,643	)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	$	449,417		$	359,290		$	233,757
TOTAL ASSETS:
Engineered Infrastructure Products	$	873,757		$	784,659		$	750,992
Utility Support Structures		524,113			510,943			432,657
Coatings		315,663			334,841			283,588
Irrigation		323,435			287,354			267,615
Other		126,337			202,289			203,185
Corporate		613,189			448,465			368,039
Total	$	2,776,494		$	2,568,551		$	2,306,076
CAPITAL EXPENDITURES:
Engineered Infrastructure Products	$	15,878		$	20,244		$	13,328
Utility Support Structures		39,347			41,081			31,501
Coatings		12,206			13,280			22,881
Irrigation		21,416			12,618			8,766
Other		6,270			4,428			4,501
Corporate		11,636			5,423			2,092
Total	$	106,753		$	97,074		$	83,069
DEPRECIATION AND AMORTIZATION:
Engineered Infrastructure Products	$	31,057		$	27,164		$	30,637
Utility Support Structures		14,375			13,284			12,548
Coatings		14,656			12,015			12,175
Irrigation		6,679			6,209			6,006
Other		7,663			8,168			8,539
Corporate		3,006			3,378			4,655
Total	$	77,436		$	70,218		$	74,560

Summary by Geographical Area by Location of Valmont Facilities:

	2013		2012		2011
NET SALES:
United States	$	2,077,812	$	1,870,703	$	1,473,819
Australia		492,698		499,025		491,395
China		97,788		135,398		148,219
Other		635,913		524,415		548,047
Total	$	3,304,211	$	3,029,541	$	2,661,480
LONG-LIVED ASSETS:
United States	$	530,042	$	470,154	$	439,147
Australia		342,320		321,456		329,453
Canada		71,512		77,945		36,979
Other		234,780		273,056		247,554
Total	$	1,178,654	$	1,142,611	$	1,053,133

        No single customer accounted for more than 10% of net sales in 2013, 2012, or 2011. 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 15% of the Company's net sales in 2013, no other foreign country accounted for more than 4% 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.