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BUSINESS SEGMENTS

12 Months Ended

Dec. 27, 2014

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, offshore, 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 reporting was reclassified to conform with the 2013 presentation. Accordingly, fiscal 2012 EIP segment sales (and the associated intersegment sales elimination) for 2012 increased by $49,427. Fiscal 2012 segment sales (after intersegment sales eliminations) and operating income were unchanged from amounts previously reported.

Summary by Business Segments

		2014			2013			2012
SALES:
Engineered Infrastructure Products segment:
Lighting, Traffic, and Roadway Products		$	648,352		$	660,423		$	637,082
Communication Products			161,618			139,888			134,711
Offshore and Other Complex Steel Structures			146,432			—			—
Access Systems			181,495			201,498			159,740
​	​	​	​	​	​	​	​	​	​	​
Engineered Infrastructure Products segment			1,137,897			1,001,809			931,533
Utility Support Structures segment:
Steel			714,427			853,459			752,621
Concrete			110,589			108,579			120,899
​	​	​	​	​	​	​	​	​	​	​
Utility Support Structures segment			825,016			962,038			873,520
Coatings segment			333,853			357,635			334,552
Irrigation segment			759,178			882,179			750,641
Other			231,668			303,595			328,737
​	​	​	​	​	​	​	​	​	​	​
Total			3,287,612			3,507,256			3,218,983
INTERSEGMENT SALES:
Engineered Infrastructure Products segment			75,259			104,306			98,220
Utility Support Structures segment			2,451			2,343			3,857
Coatings segment			55,418			56,649			52,478
Irrigation segment			19			5			49
Other			31,322			39,742			34,838
​	​	​	​	​	​	​	​	​	​	​
Total			164,469			203,045			189,442
NET SALES:
Engineered Infrastructure Products segment			1,062,638			897,503			833,313
Utility Support Structures segment			822,565			959,695			869,663
Coatings segment			278,435			300,986			282,074
Irrigation segment			759,159			882,174			750,592
Other			200,346			263,853			293,899
​	​	​	​	​	​	​	​	​	​	​
Total		$	3,123,143		$	3,304,211		$	3,029,541
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​

		2014			2013			2012
OPERATING INCOME (LOSS):
Engineered Infrastructure Products		$	103,296		$	87,647		$	54,013
Utility Support Structures			95,118			174,740			129,025
Coatings			60,921			74,917			71,641
Irrigation			128,145			181,498			143,605
Other			25,898			30,984			46,575
Corporate			(55,662	)		(76,717	)		(62,563	)
​	​	​	​	​	​	​	​	​	​	​
Total			357,716			473,069			382,296
Interest expense, net			(30,744	)		(26,025	)		(23,353	)
Costs associated with refinancing of debt			(38,705	)		—			—
Other			(4,084	)		2,373			347
​	​	​	​	​	​	​	​	​	​	​
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries		$	284,183		$	449,417		$	359,290
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​
TOTAL ASSETS:
Engineered Infrastructure Products		$	1,057,090		$	873,757		$	784,659
Utility Support Structures			470,720			524,113			510,943
Coatings			301,707			315,663			334,841
Irrigation			331,962			323,435			287,354
Other			117,300			126,337			202,289
Corporate			450,889			613,189			448,465
​	​	​	​	​	​	​	​	​	​	​
Total		$	2,729,668		$	2,776,494		$	2,568,551
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​
CAPITAL EXPENDITURES:
Engineered Infrastructure Products		$	14,328		$	15,878		$	20,244
Utility Support Structures			9,014			39,347			41,081
Coatings			14,029			12,206			13,280
Irrigation			15,488			21,416			12,618
Other			9,220			6,270			4,428
Corporate			10,944			11,636			5,423
​	​	​	​	​	​	​	​	​	​	​
Total		$	73,023		$	106,753		$	97,074
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​
DEPRECIATION AND AMORTIZATION:
Engineered Infrastructure Products		$	40,239		$	31,057		$	27,164
Utility Support Structures			17,811			14,375			13,284
Coatings			14,615			14,656			12,015
Irrigation			9,352			6,679			6,209
Other			5,512			7,663			8,168
Corporate			1,799			3,006			3,378
​	​	​	​	​	​	​	​	​	​	​
Total		$	89,328		$	77,436		$	70,218
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​

Summary by Geographical Area by Location of Valmont Facilities:

		2014			2013			2012
NET SALES:
United States		$	1,808,427		$	2,077,812		$	1,870,703
Australia			439,530			492,698			499,025
China			110,923			97,788			135,398
Denmark			146,432			—			—
Other			617,831			635,913			524,415
​	​	​	​	​	​	​	​	​	​	​
Total		$	3,123,143		$	3,304,211		$	3,029,541
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​
LONG-LIVED ASSETS:
United States		$	616,718		$	530,042		$	470,154
Australia			316,382			342,320			321,456
Denmark			111,161			—			—
Other			292,862			306,293			351,001
​	​	​	​	​	​	​	​	​	​	​
Total		$	1,337,123		$	1,178,655		$	1,142,611
​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​

        No single customer accounted for more than 10% of net sales in 2014, 2013, or 2012. 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 14% of the Company's net sales in 2014, no other foreign country accounted for more than 5% 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.

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The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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