BUSINESS SEGMENTS |
(7) BUSINESS SEGMENTS & RELATED REVENUE INFORMATION During the first quarter of 2022, the Company’s CODM changed the Company’s management structure and began to manage the business, allocate resources and evaluate performance based on the new structure. As a result, the Company has realigned to a two reportable segment structure organized by market dynamics (Infrastructure and Agriculture). Three operating segments resulted from the new management structure and two are aggregated into the Agriculture reportable segment. The Company considers gross profit margins, nature of products sold, nature of the production processes, type and class of customer, and methods used to distribute products when assessing aggregation of operating segments. The Infrastructure segment includes the previous reportable segments of Utility Structures, Engineered Support Structures, and Coatings. All prior period segment information has been recast to reflect this change in reportable segments. Both reportable segments are 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: INFRASTRUCTURE: This segment consists of the manufacture and distribution of products and solutions to serve the infrastructure markets of utility, renewable energy, lighting, transportation, and telecommunications, and coatings services to preserve metal products. AGRICULTURE: This segment consists of the manufacture of center pivot and linear irrigation equipment for agricultural markets, including parts and tubular products, and advanced technology solutions for precision agriculture. The Company evaluates the performance of its reportable segments based upon operating income and invested capital. The Company does not allocate interest expense, non-operating income (expense), or income taxes to its reportable segments. Summary by Business | | | | | | | | | | | | | | | Thirteen weeks ended | | Thirty-nine weeks ended | | | September 24, | | September 25, | | September 24, | | September 25, | | | 2022 | | 2021 | | 2022 | | 2021 | SALES: | | | | | | | | | | | | | Infrastructure | | $ | 778,353 | | $ | 634,283 | | $ | 2,224,029 | | $ | 1,801,533 | Agriculture | | | 327,261 | | | 240,331 | | | 1,011,606 | | | 751,960 | Total | | | 1,105,614 | | | 874,614 | | | 3,235,635 | | | 2,553,493 | INTERSEGMENT SALES: | | | | | | | | | | | | | Infrastructure | | | (5,112) | | | (1,826) | | | (12,413) | | | (7,823) | Agriculture | | | (3,120) | | | (4,006) | | | (9,488) | | | (7,373) | Total | | | (8,232) | | | (5,832) | | | (21,901) | | | (15,196) | NET SALES: | | | | | | | | | | | | | Infrastructure | | | 773,241 | | | 632,457 | | | 2,211,616 | | | 1,793,710 | Agriculture | | | 324,141 | | | 236,325 | | | 1,002,118 | | | 744,587 | Total | | $ | 1,097,382 | | $ | 868,782 | | $ | 3,213,734 | | $ | 2,538,297 | | | | | | | | | | | | | | OPERATING INCOME: | | | | | | | | | | | | | Infrastructure | | $ | 93,572 | | $ | 71,422 | | $ | 255,722 | | $ | 187,421 | Agriculture | | | 43,258 | | | 27,735 | | | 138,779 | | | 108,467 | Corporate | | | (26,858) | | | (22,962) | | | (70,968) | | | (59,857) | Total | | $ | 109,972 | | $ | 76,195 | | $ | 323,533 | | $ | 236,031 |
| | | | | | | | | | | | | | | Thirteen weeks ended September 24, 2022 | | | Infrastructure | | Agriculture | | Intersegment Sales | | Consolidated | Geographical market: | | | | | | | | | | | | | North America | | $ | 579,628 | | $ | 178,626 | | $ | (7,114) | | $ | 751,140 | International | | | 198,725 | | | 148,635 | | | (1,118) | | | 346,242 | Total | | $ | 778,353 | | $ | 327,261 | | $ | (8,232) | | $ | 1,097,382 | | | | | | | | | | | | | | Product line: | | | | | | | | | | | | | Transmission, Distribution and Substation | | $ | 304,781 | | $ | — | | $ | — | | $ | 304,781 | Lighting and Transportation | | | 241,590 | | | — | | | — | | | 241,590 | Coatings | | | 91,969 | | | — | | | (3,994) | | | 87,975 | Telecommunications | | | 92,830 | | | — | | | — | | | 92,830 | Renewable Energy | | | 47,183 | | | — | | | (1,118) | | | 46,065 | Irrigation Equipment and Parts, excluding Technology | | | — | | | 303,003 | | | (3,120) | | | 299,883 | Technology Products and Services | | | — | | | 24,258 | | | — | | | 24,258 | Total | | $ | 778,353 | | $ | 327,261 | | $ | (8,232) | | $ | 1,097,382 |
| | | | | | | | | | | | | | | Thirty-nine weeks ended September 24, 2022 | | | Infrastructure | | Agriculture | | Intersegment Sales | | Consolidated | Geographical market: | | | | | | | | | | | | | North America | | $ | 1,645,472 | | $ | 564,369 | | $ | (20,316) | | $ | 2,189,525 | International | | | 578,557 | | | 447,237 | | | (1,585) | | | 1,024,209 | Total | | $ | 2,224,029 | | $ | 1,011,606 | | $ | (21,901) | | $ | 3,213,734 | | | | | | | | | | | | | | Product line: | | | | | | | | | | | | | Transmission, Distribution and Substation | | $ | 882,216 | | $ | — | | $ | — | | $ | 882,216 | Lighting and Transportation | | | 701,009 | | | — | | | — | | | 701,009 | Coatings | | | 264,266 | | | — | | | (11,295) | | | 252,971 | Telecommunications | | | 232,765 | | | — | | | — | | | 232,765 | Renewable Energy | | | 143,773 | | | — | | | (1,118) | | | 142,655 | Irrigation Equipment and Parts, excluding Technology | | | — | | | 928,622 | | | (9,488) | | | 919,134 | Technology Products and Services | | | — | | | 82,984 | | | — | | | 82,984 | Total | | $ | 2,224,029 | | $ | 1,011,606 | | $ | (21,901) | | $ | 3,213,734 |
| | | | | | | | | | | | | | | Thirteen weeks ended September 25, 2021 | | | Infrastructure | | Agriculture | | Intersegment Sales | | Consolidated | Geographical market: | | | | | | | | | | | | | North America | | $ | 439,610 | | $ | 116,308 | | $ | (5,832) | | $ | 550,086 | International | | | 194,673 | | | 124,023 | | | — | | | 318,696 | Total | | $ | 634,283 | | $ | 240,331 | | $ | (5,832) | | $ | 868,782 | | | | | | | | | | | | | | Product line: | | | | | | | | | | | | | Transmission, Distribution and Substation | | $ | 239,572 | | $ | — | | $ | — | | $ | 239,572 | Lighting and Transportation | | | 217,962 | | | — | | | — | | | 217,962 | Coatings | | | 76,761 | | | — | | | (1,826) | | | 74,935 | Telecommunications | | | 63,088 | | | — | | | — | | | 63,088 | Renewable Energy | | | 36,900 | | | — | | | — | | | 36,900 | Irrigation Equipment and Parts, excluding Technology | | | — | | | 218,892 | | | (4,006) | | | 214,886 | Technology Products and Services | | | — | | | 21,439 | | | — | | | 21,439 | Total | | $ | 634,283 | | $ | 240,331 | | $ | (5,832) | | $ | 868,782 |
| | | | | | | | | | | | | | | Thirty-nine weeks ended September 25, 2021 | | | Infrastructure | | Agriculture | | Intersegment Sales | | Consolidated | Geographical market: | | | | | | | | | | | | | North America | | $ | 1,246,512 | | $ | 395,096 | | $ | (15,196) | | $ | 1,626,412 | International | | | 555,021 | | | 356,864 | | | — | | | 911,885 | Total | | $ | 1,801,533 | | $ | 751,960 | | $ | (15,196) | | $ | 2,538,297 | | | | | | | | | | | | | | Product line: | | | | | | | | | | | | | Transmission, Distribution and Substation | | $ | 668,474 | | $ | — | | $ | — | | $ | 668,474 | Lighting and Transportation | | | 609,725 | | | — | | | — | | | 609,725 | Coatings | | | 231,900 | | | — | | | (7,823) | | | 224,077 | Telecommunications | | | 162,830 | | | — | | | — | | | 162,830 | Renewable Energy | | | 128,604 | | | — | | | — | | | 128,604 | Irrigation Equipment and Parts, excluding Technology | | | — | | | 679,600 | | | (7,373) | | | 672,227 | Technology Products and Services | | | — | | | 72,360 | | | — | | | 72,360 | Total | | $ | 1,801,533 | | $ | 751,960 | | $ | (15,196) | | $ | 2,538,297 |
A breakdown by segment of revenue recognized over time and at a point in time for the thirteen and thirty-nine weeks ended September 24, 2022 and September 25, 2021 is as follows: | | | | | | | | | | | | Point in Time | | Over Time | | Total | | | Thirteen | | Thirteen | | Thirteen | | | weeks ended | | weeks ended | | weeks ended | | | September 24, 2022 | | September 24, 2022 | | September 24, 2022 | Infrastructure | | $ | 434,839 | | $ | 338,402 | | $ | 773,241 | Agriculture | | | 317,669 | | | 6,472 | | | 324,141 | Total | | $ | 752,508 | | $ | 344,874 | | $ | 1,097,382 |
| | | | | | | | | | | | Point in Time | | Over Time | | Total | | | Thirty-nine | | Thirty-nine | | Thirty-nine | | | weeks ended | | weeks ended | | weeks ended | | | September 24, 2022 | | September 24, 2022 | | September 24, 2022 | Infrastructure | | $ | 1,233,320 | | $ | 978,296 | | $ | 2,211,616 | Agriculture | | | 983,450 | | | 18,668 | | | 1,002,118 | Total | | $ | 2,216,770 | | $ | 996,964 | | $ | 3,213,734 |
| | | | | | | | | | | | Point in Time | | Over Time | | Total | | | Thirteen | | Thirteen | | Thirteen | | | weeks ended | | weeks ended | | weeks ended | | | September 25, 2021 | | September 25, 2021 | | September 25, 2021 | Infrastructure | | $ | 359,017 | | $ | 273,440 | | $ | 632,457 | Agriculture | | | 230,273 | | | 6,052 | | | 236,325 | Total | | $ | 589,290 | | $ | 279,492 | | $ | 868,782 |
| | | | | | | | | | | | Point in Time | | Over Time | | Total | | | Thirty-nine | | Thirty-nine | | Thirty-nine | | | weeks ended | | weeks ended | | weeks ended | | | September 25, 2021 | | September 25, 2021 | | September 25, 2021 | Infrastructure | | $ | 997,482 | | $ | 796,228 | | $ | 1,793,710 | Agriculture | | | 729,813 | | | 14,774 | | | 744,587 | Total | | $ | 1,727,295 | | $ | 811,002 | | $ | 2,538,297 |
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