Note 17 – Industry Segment Information

The Company manages its business activities in two reportable segments: Irrigation and Infrastructure. The accounting policies of the two reportable segments are the same as those described in Note 1, Description of Business and Significant Accounting Policies. The Company evaluates the performance of its reportable segments based on segment sales, gross profit, and operating income, with operating income for segment purposes excluding unallocated corporate general and administrative expenses, interest income, interest expense, other income and expenses, and income taxes. Operating income for segment purposes does include general and administrative expenses, selling expenses, engineering and research expenses and other overhead charges directly attributable to the segment. There are no inter-segment sales included in the amounts disclosed.

Irrigation

This reporting segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems, as well as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, wireless irrigation management, M2M communication technology, and smartphone applications. The irrigation reporting segment consists of one operating segment.

Infrastructure

This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment; the manufacturing and selling of large diameter steel tubing and railroad signals and structures; and providing outsourced manufacturing and production services. The infrastructure reporting segment consists of one operating segment.

The Company has no single major customer representing ten percent or more of its total revenues during fiscal 2018, 2017, or 2016.

Summarized financial information concerning the Company’s reportable segments is shown in the following tables:

($ in thousands)	2018			2017			2016
Operating revenues:
Irrigation	$	439,858		$	418,041		$	421,641
Infrastructure		107,847			99,944			94,770
Total operating revenues	$	547,705		$	517,985		$	516,411

Operating income:
Irrigation	$	41,933		$	42,774		$	49,232
Infrastructure		23,857			20,131			18,535
Corporate		(27,227	)		(22,704	)		(33,392	)
Total operating income		38,563			40,201			34,375

Interest and other income (expense), net		(4,710	)		(4,486	)		(5,087	)
Earnings before income taxes	$	33,853		$	35,715		$	29,288

Total capital expenditures:
Irrigation	$	9,259		$	6,313		$	8,375
Infrastructure		938			1,562			2,977
Corporate		857			988			144
	$	11,054		$	8,863		$	11,496
Depreciation and amortization:
Irrigation	$	11,412		$	11,840		$	11,774
Infrastructure		4,611			4,452			4,648
Corporate		491			386			459
	$	16,514		$	16,678		$	16,881
Total assets:
Irrigation	$	277,712		$	337,446		$	332,294
Infrastructure		69,919			80,187			81,160
Corporate		152,625			88,399			74,061
	$	500,256		$	506,032		$	487,515

Summarized financial information concerning the Company’s geographical areas is shown in the following tables.

	For the years ended August 31,
($ in thousands)	2018				2017				2016
	Revenues		% of total		Revenues		% of total		Revenues		% of total
United States	$	321,698		59	$	297,261		57	$	321,554		62
International		226,007		41		220,724		43		194,857		38
Total revenues	$	547,705		100	$	517,985		100	$	516,411		100

	For the years ended August 31,
($ in thousands)	2018				2017				2016
	Long-lived tangible assets		% of total		Long-lived tangible assets		% of total		Long-lived tangible assets		% of total
United States	$	39,290		69	$	54,199		73	$	58,098		75
International		17,958		31		20,299		27		19,529		25
Total long-lived assets	$	57,248		100	$	74,498		100	$	77,627		100