BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

The Company has five 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 structures and components for the global lighting and traffic, wireless communication, and roadway safety industries;

ENERGY AND MINING: This segment, all outside of the United States, consists of the manufacture of access systems applications, forged steel grinding media, on and off shore oil, gas, and wind energy structures;

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 and tubular products for industrial customers.

In addition to these five reportable segments, the Company had other businesses and activities that individually are not more than 10% of consolidated sales. Due to the business reorganization that occurred in the fourth quarter of 2015, there are no longer business operations included in Other.

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.

(19) BUSINESS SEGMENTS (Continued)

Summary by Business

	2016		2015		2014
SALES:
Engineered Support Structures segment:
Lighting, Traffic, and Roadway Products	$	632,455	$	600,280	$	648,352
Communication Products	168,070		171,173		161,618
Engineered Support Structures segment	800,525		771,453		809,970
Energy and Mining segment:
Offshore and Other Complex Steel Structures	107,824		103,068		146,432
Grinding Media	83,110		96,442		116,056
Access Systems	131,703		138,349		181,495
Energy and Mining segment	322,637		337,859		443,983
Utility Support Structures segment:
Steel	541,295		578,996		714,427
Concrete	90,256		95,581		110,589
Utility Support Structures segment	631,551		674,577		825,016
Coatings segment	289,481		302,385		333,853
Irrigation segment	575,204		612,201		846,326
Other	—		7,247		10,108
Total	2,619,398		2,705,722		3,269,256
INTERSEGMENT SALES:
Engineered Support Structures	36,013		23,003		74,963
Energy and Mining	8,105		4,652		295
Utility Support Structures	769		1,239		2,451
Coatings	45,604		46,912		55,418
Irrigation	7,231		6,430		6,609
Other	—		4,562		6,377
Total	97,722		86,798		146,113
NET SALES:
Engineered Support Structures segment	764,512		748,450		735,007
Energy and Mining segment	314,532		333,207		443,688
Utility Support Structures segment	630,782		673,338		822,565
Coatings segment	243,877		255,473		278,435
Irrigation segment	567,973		605,771		839,717
Other	—		2,685		3,731
Total	$	2,521,676	$	2,618,924	$	3,123,143

(19) BUSINESS SEGMENTS (Continued)

	2016			2015			2014
OPERATING INCOME (LOSS):
Engineered Support Structures	$	71,398		$	59,592		$	66,024
Energy and Mining	11,851			(18,762		)	41,342
Utility Support Structures	69,077			37,847			95,118
Coatings	46,596			27,369			60,921
Irrigation	87,835			84,537			151,508
Other	—			(9,802		)	(1,535		)
Corporate	(43,253		)	(49,086		)	(55,662		)
Total	243,504			131,695			357,716
Interest expense, net	(41,304		)	(41,325		)	(30,744		)
Costs associated with refinancing of debt	—			—			(38,705		)
Other	18,254			2,637			(4,084		)
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries	$	220,454		$	93,007		$	284,183
TOTAL ASSETS:
Engineered Support Structures	$	610,366		$	611,201		$	640,132
Energy and Mining	364,658			396,366			500,407
Utility Support Structures	410,448			422,021			470,720
Coatings	274,666			270,793			301,707
Irrigation	313,982			310,967			360,883
Other	—			2,267			4,930
Corporate	417,611			378,767			443,176
Total	$	2,391,731		$	2,392,382		$	2,721,955

CAPITAL EXPENDITURES:
Engineered Support Structures	$	16,045	$	11,445	$	11,849
Energy and Mining	3,427		3,544		4,893
Utility Support Structures	3,411		11,815		9,014
Coatings	24,873		6,836		14,029
Irrigation	8,836		7,756		21,113
Other	—		1,396		1,181
Corporate	1,328		2,676		10,944
Total	$	57,920	$	45,468	$	73,023

(19) BUSINESS SEGMENTS (Continued)

	2016		2015		2014
DEPRECIATION AND AMORTIZATION:
Engineered Support Structures	$	21,048	$	22,810	$	22,363
Energy and Mining	17,425		20,733		22,146
Utility Support Structures	16,492		17,959		17,811
Coatings	12,883		12,962		14,615
Irrigation	12,097		11,746		10,471
Other	—		570		123
Corporate	2,472		4,364		1,799
Total	$	82,417	$	91,144	$	89,328

Summary by Geographical Area by Location of Valmont Facilities:

	2016		2015		2014
NET SALES:
United States	$	1,535,321	$	1,586,702	$	1,808,427
Australia	315,470		347,975		439,530
Denmark	99,719		98,628		146,432
Other	571,166		585,619		728,754
Total	$	2,521,676	$	2,618,924	$	3,123,143
LONG-LIVED ASSETS:
United States	$	568,085	$	575,737	$	609,005
Australia	216,416		259,326		316,382
Denmark	85,654		90,463		111,161
Other	268,360		240,004		292,466
Total	$	1,138,515	$	1,165,530	$	1,329,014

No single customer accounted for more than 10% of net sales in 2016, 2015, or 2014. 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 13% of the Company's net sales in 2016, 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.