IRRIGATION SEGMENT REVIEW Lindsay experienced  solid performance in key  markets throughout the  U.S. and around the world. LAKOS Filtration Products was acquired in August 2013. IRRIGATION SEGMENT  PERFORMANCE IRRIGATION MARKET CONDITIONS Lindsay Corporation is one of the  world’s leading providers of irrigation  and water management systems.  Our product lines include center  pivot and lateral move irrigation  systems, hose reel travelers, integrated  water-pumping stations, irrigation  scheduling and controls, chemical  injection systems, water  fi ltration  systems, and remote monitoring and  control systems. Lindsay’s irrigation  products are sold through more than  200 dealers in the U.S. and more  than 140 dealers in international  markets. Our products and systems  help growers around the world  conserve precious water, increase crop  production, and reduce costs such as  fuel and labor. Lindsay’s irrigation segment  generates revenue from three primary  sources: 1) conversion of dry land  to irrigation; 2) conversion from  less ef fi cient irrigation methods to  mechanized systems; and 3) sales of  replacement systems and parts. In  fi scal 2014, lower agricultural  commodity prices continued to exert  downward pressure on irrigation  equipment demand in the U.S.  In addition, in August the USDA  forecasted 2014 net farm income  to be 14 percent below 2013 levels,  although still remaining above the  10-year average. Finally, enhanced  Section 179 depreciation tax bene fi ts  expired on December 31, 2013.  These factors contributed to farmer  sentiment being less inclined to make  capital purchases. The irrigation segment provided  87 percent of Lindsay’s revenue in  fi scal 2014 compared to 91 percent  the prior year. Irrigation equipment  sales in the U.S. accounted for  approximately 61 percent of segment  revenue, with international sales  comprising approximately 39 percent. Operating margin for the irrigation  segment was 17 percent in  fi scal 2014  compared to 20 percent the prior  year, primarily due to cost deleverage  on lower sales. However, the decrease in irrigation  equipment sales was mitigated  somewhat by revenue contributions  from LAKOS  fi ltration products,  a business acquired at the end of  fi scal 2013, along with higher than  normal replacement sales due to  severe spring and summer storms  across the Midwest. With the superb  responsiveness of our Nebraska  factory and entire irrigation team,  we were able to quickly meet the  urgent needs of our dealers and  their customers and provide the  replacement equipment needed in  the peak of the growing season. International markets remain  important in Lindsay’s growth  strategy. In  fi scal 2014, international  sales accounted for 39 percent of  4