Segment Reporting

6 Months Ended

Jun. 30, 2017

SEGMENT REPORTING

The Company has two reportable segments, the OEM Segment and the Aftermarket Segment. Intersegment sales are insignificant.

The OEM Segment, which accounted for 92 percent and 93 percent of consolidated net sales for each of the six month periods ended June 30, 2017 and 2016, respectively, manufactures or distributes a broad array of components for the leading OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment and other cargo; trucks; pontoon boats; trains; manufactured homes; and modular housing. Approximately 71 percent of the Company’s OEM Segment net sales for the six months ended June 30, 2017 were of components for travel trailer and fifth-wheel RVs.

The Aftermarket Segment, which accounted for 8 percent and 7 percent of consolidated net sales for each of the six month periods ended June 30, 2017 and 2016, respectively, supplies components to the related aftermarket channels of the RV and adjacent industries, primarily to retail dealers, wholesale distributors and service centers. The Aftermarket Segment also includes the sale of replacement glass and awnings to fulfill insurance claims.

Decisions concerning the allocation of the Company’s resources are made by the Company’s chief operating decision maker (“CODM”), with oversight by the Board of Directors. The CODM evaluates the performance of each segment based upon segment operating profit or loss, generally defined as income or loss before interest and income taxes. Decisions concerning the allocation of resources are also based on each segment’s utilization of assets. Management of debt is a corporate function. The accounting policies of the OEM and Aftermarket Segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.



Information relating to segments follows for the:
	Six Months Ended June 30,				Three Months Ended June 30,
(In thousands)	2017		2016		2017		2016
Net sales:
OEM Segment:
RV OEMs:
Travel trailers and fifth-wheels	$	687,525	$	573,055	$	357,251	$	289,686
Motorhomes	73,292		56,389		36,248		27,866
Adjacent industries OEMs	203,987		170,125		109,276		89,364
Total OEM Segment net sales	964,804		799,569		502,775		406,916
Aftermarket Segment:
Total Aftermarket Segment net sales	81,015		64,060		44,708		33,915
Total net sales	$	1,045,819	$	863,629	$	547,483	$	440,831
Operating profit:
OEM Segment	$	110,842	$	105,053	$	56,445	$	54,402
Aftermarket Segment	11,327		10,063		6,595		4,986
Total operating profit	$	122,169	$	115,116	$	63,040	$	59,388