Segment Reporting

9 Months Ended

Sep. 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 of consolidated net sales for each of the nine month periods ended September 30, 2017 and 2016, 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 nine months ended September 30, 2017 were of components for travel trailer and fifth-wheel RVs.

The Aftermarket Segment, which accounted for 8 percent of consolidated net sales for each of the nine month periods ended September 30, 2017 and 2016, 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:
	Nine Months Ended September 30,				Three Months Ended September 30,
(In thousands)	2017		2016		2017		2016
Net sales:
OEM Segment:
RV OEMs:
Travel trailers and fifth-wheels	$	1,045,465	$	836,634	$	357,940	$	263,579
Motorhomes	114,887		85,762		41,595		29,373
Adjacent industries OEMs	310,373		253,088		106,386		82,963
Total OEM Segment net sales	1,470,725		1,175,484		505,921		375,915
Aftermarket Segment:
Total Aftermarket Segment net sales	129,908		100,515		48,893		36,455
Total net sales	$	1,600,633	$	1,275,999	$	554,814	$	412,370
Operating profit:
OEM Segment	$	151,867	$	144,102	$	41,025	$	39,049
Aftermarket Segment	18,229		16,152		6,902		6,089
Total operating profit	$	170,096	$	160,254	$	47,927	$	45,138