The Company manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which the Chief Operating Decision Maker ("CODM") evaluates performance and makes resource allocation decisions. None of the reportable segments include operating segments that have been aggregated. These segments contain individual business components that have been combined on the basis of common management, customers, products, production processes and other economic characteristics. Intersegment sales are recorded with a reasonable margin and are eliminated in consolidation.

The Material Handling Segment manufactures a broad selection of durable plastic reusable containers that are used repeatedly during the course of their service life. At the end of their service life, these highly sustainable products can be recovered, recycled, and reprocessed into new products. The Material Handling Segment’s products include pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded or blow molded. This segment conducts its primary operations in the United States and Canada. Markets served include industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles and consumer, among others. Products are sold both directly to end-users and through distributors.

The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive under-vehicle repair and the manufacture of tire repair and retreading products. The product line includes categories such as tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment and tools, and tire repair/retread supplies. The Distribution Segment also manufactures and sells certain traffic markings, including reflective highway marking tape. The Distribution Segment operates domestically through its sales offices and eight regional distribution centers in the United States, and in certain foreign countries through export sales. In addition, the Distribution Segment operates directly in certain foreign markets, principally Central America, through foreign branch operations. Markets served include retail and truck tire dealers, commercial auto and truck fleets, truck stop operations, auto dealers, general service and repair centers, tire retreaders, and government agencies. The acquisition of Mohawk, described in Note 3, is included in the Distribution Segment.

Total sales from foreign business units were approximately $46.1 million, $54.2 million, and $48.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. Export sales from the Company's U.S. operations were approximately $30.0 million, $31.7 million, and $29.9 million for the years ended December 31, 2023, 2022 and 2021, respectively. Sales made to customers in Canada accounted for approximately 4.4%, 4.3% and 4.6% of total net sales in 2023, 2022 and 2021, respectively. There are no other individual foreign countries for which sales are material. Long-lived assets in foreign countries, primarily in Canada, consisted of property, plant and equipment, and were approximately $10.3 million and $10.4 million at December 31, 2023 and 2022, respectively.


	2023			2022			2021
Net Sales
Material Handling	$	555,259		$	647,619		$	564,068
Distribution		257,875			251,966			197,427
Inter-company sales		(67	)		(38	)		(60	)
Total net sales	$	813,067		$	899,547		$	761,435

Operating income
Material Handling (5)	$	100,088		$	104,079		$	62,187
Distribution (2) (3)		10,967			15,862			15,428
Corporate (1) (3) (4)		(38,650	)		(36,000	)		(28,314	)
Total operating income		72,405			83,941			49,301
Interest expense, net		(6,349	)		(5,731	)		(4,208	)
Income before income taxes	$	66,056		$	78,210		$	45,093

Total Assets
Material Handling	$	383,734		$	385,722		$	370,499
Distribution		112,323			119,652			88,757
Corporate		45,574			37,260			25,293
Total assets	$	541,631		$	542,634		$	484,549

Capital Additions, Net
Material Handling	$	20,452		$	22,528		$	17,173
Distribution		1,666			705			402
Corporate		737			1,059			292
Total capital additions, net	$	22,855		$	24,292		$	17,867

Depreciation and Amortization
Material Handling	$	18,917		$	17,814		$	17,803
Distribution		3,197			2,889			2,208
Corporate (6)		985			954			874
Total depreciation and amortization	$	23,099		$	21,657		$	20,885

(1) The Company recognized $3.2 million, $1.4 million and $0.7 million of expense to the estimated environmental reserve, net of expected insurance recoveries in the years ended December 31, 2023, 2022 and 2021, respectively, as described in Note 9. Environmental charges are not included in segment results and are shown with Corporate.

(2) In the year ended December 31, 2022, the Company recognized a $0.6 million impairment loss on an investment in a legacy joint venture within the Distribution Segment as described in Note 1.

(3) In the year ended December 31, 2023, the Company recognized $0.7 million of executive severance, of which $0.4 million was recognized in the Distribution Segment related to severance and $0.3 million was recognized in Corporate related to charges for acceleration of stock compensation.

(4) Corporate includes $1.3 million of consulting costs to improve the Company's capabilities to screen and execute large acquisitions in addition to $2.6 million of acquisition related costs associated with the Signature acquisition, as described in Note 15, for the year ended December 31, 2023.

(5) In the year ended December 31, 2023, the Company recognized a $10 million recovery of legal costs within the Material Handling Segment related to a settlement agreement with one of its insurers, as described in Note 9. $6.7 million of these recovered costs were originally incurred prior to 2023.

(6) Corporate depreciation and amortization includes amortization of deferred financing costs of $0.3 million, $0.4 million and $0.5 million in the years ended December 31, 2023, 2022 and 2021, respectively.