BUSINESS SEGMENTS

6 Months Ended

Jun. 29, 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 inspection services;

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						Twenty-six Weeks Ended
	June 29, 2019			June 30, 2018			June 29, 2019			June 30, 2018
SALES:
Engineered Support Structures segment:
Lighting, Traffic, and Highway Safety Products	$	181,575		$	178,930		$	338,759		$	339,374
Communication Products	47,454			39,592			90,319			73,705
Access Systems	29,719			32,189			59,958			62,586
Engineered Support Structures segment	258,748			250,711			489,036			475,665
Utility Support Structures segment:
Steel	147,116			146,117			306,876			310,100
Concrete	30,560			30,185			60,404			53,847
Engineered Solar Tracker Solutions	9,932			—			40,224			—
Offshore and Other Complex Steel Structures	22,221			21,417			46,247			43,634
Utility Support Structures segment	209,829			197,719			453,751			407,581
Coatings segment	98,406			91,572			185,185			176,519
Irrigation segment:
North America	102,810			113,865			211,287			223,719
International	52,375			49,071			96,714			127,170
Irrigation segment	155,185			162,936			308,001			350,889
Other	—			4,681			—			23,080
Total	722,168			707,619			1,435,973			1,433,734
INTERSEGMENT SALES:
Engineered Support Structures segment	1,183			4,670			3,502			13,708
Utility Support Structures segment	820			1,188			1,484			1,191
Coatings segment	17,317			17,033			33,865			33,522
Irrigation segment	1,977			2,323			4,112			4,224
Total	21,297			25,214			42,963			52,645
NET SALES:
Engineered Support Structures segment	257,565			246,041			485,534			461,957
Utility Support Structures segment	209,009			196,531			452,267			406,390
Coatings segment	81,089			74,539			151,320			142,997
Irrigation segment	153,208			160,613			303,889			346,665
Other	—			4,681			—			23,080
Total	$	700,871		$	682,405		$	1,393,010		$	1,381,089

OPERATING INCOME:
Engineered Support Structures segment	$	20,882		$	12,965		$	33,327		$	19,912
Utility Support Structures segment	16,033			20,841			41,081			44,208
Coatings segment	15,032			14,868			25,172			26,735
Irrigation segment	21,530			27,728			41,664			61,615
Other	—			(334		)	—			(913		)
Adjustment to LIFO inventory valuation method	2,238			(1,651		)	2,740			(2,732		)
Corporate	(12,003		)	(10,747		)	(25,168		)	(21,195		)
Total	$	63,712		$	63,670		$	118,816		$	127,630