XML 36 R22.htm IDEA: XBRL DOCUMENT v3.20.4
Segment Reporting
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting 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 78 percent, 88 percent, and 91 percent of consolidated net sales for each of the years ended December 31, 2020, 2019, and 2018, respectively, manufactures and distributes a broad array of engineered components for the leading OEMs in the recreation and industrial product markets, consisting of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; trains; manufactured homes; and modular housing. Approximately 61 percent, 61 percent, and 64 percent of the Company’s OEM Segment net sales in 2020, 2019, and 2018, respectively, were of components for travel trailer and fifth-wheel RVs.

The Aftermarket Segment, which accounted for 22 percent, 12 percent, and 9 percent of consolidated net sales for each of the years ended December 31, 2020, 2019, and 2018, respectively, supplies engineered components to the related aftermarket channels of the RV and adjacent industries, primarily to retail dealers, wholesale distributors, e-commerce, and service centers.
The Aftermarket Segment also includes the sale of replacement glass and awnings to fulfill insurance claims, biminis, covers, buoys, and fenders to the marine industry, and towing products and truck accessories.

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 2 of the Notes to Consolidated Financial Statements.

The following table presents the Company’s revenues disaggregated by segment and geography based on the billing address of the Company’s customers for the years ended December 31:
2020
(In thousands)U.S. (a)Int’l (b)Total
OEM Segment:
RV OEMs:
Travel trailers and fifth-wheels$1,288,209 $33,358 $1,321,567 
Motorhomes100,950 57,146 158,096 
Adjacent Industries OEMs563,082 125,166 688,248 
Total OEM Segment net sales1,952,241 215,670 2,167,911 
Aftermarket Segment:
Total Aftermarket Segment net sales607,112 21,143 628,255 
Total net sales$2,559,353 $236,813 $2,796,166 

2019
(In thousands)U.S. (a)Int’l (b)Total
OEM Segment:
RV OEMs:
Travel trailers and fifth-wheels$1,264,404 $12,314 $1,276,718 
Motorhomes110,405 45,218 155,623
Adjacent Industries OEMs587,521 72,039 659,560
Total OEM Segment net sales1,962,330 129,571 2,091,901 
Aftermarket Segment:
Total Aftermarket Segment net sales263,382 16,199 279,581 
Total net sales$2,225,712 $145,770 $2,371,482 

2018
(In thousands)U.S. (a)Int’l (b)Total
OEM Segment:
RV OEMs:
Travel trailers and fifth-wheels$1,431,574 $9,156 $1,440,730 
Motorhomes143,488 43,809 187,297
Adjacent Industries OEMs574,100 40,489 614,589
Total OEM Segment net sales2,149,162 93,454 2,242,616 
Aftermarket Segment:
Total Aftermarket Segment net sales222,588 10,603 233,191 
Total net sales$2,371,750 $104,057 $2,475,807 
(a) Net sales to customers in the United States of America
(b) Net sales to customers domiciled in countries outside of the United States of America

Long-lived assets, including net fixed assets, operating lease right-of-use assets, goodwill, and other net intangible assets, domiciled in countries outside of the United States of America were $306.8 million and $160.1 million as of December 31, 2020 and 2019, respectively.

Corporate expenses are allocated between the segments based upon net sales. Accretion related to contingent consideration and other non-segment items are included in the segment to which they relate. Information relating to segments follows for the years ended December 31:
SegmentsCorporate
(In thousands)OEMAftermarketSubtotaland OtherTotal
2020
Net sales to external customers (a)
$2,167,911 $628,255 $2,796,166 $— $2,796,166 
Operating profit (b)
156,092 66,842 222,934 — 222,934 
Total assets (c)
1,559,953 615,425 2,175,378 122,653 2,298,031 
Expenditures for long-lived assets (d)
284,109 15,150 299,259 — 299,259 
Depreciation and amortization74,088 23,892 97,980 — 97,980 
2019
Net sales to external customers (a)
$2,091,901 $279,581 $2,371,482 $— $2,371,482 
Operating profit (b)
165,290 34,920 200,210 — 200,210 
Total assets (c)
1,167,899 595,688 1,763,587 99,008 1,862,595 
Expenditures for long-lived assets (d)
166,331 302,857 469,188 — 469,188 
Depreciation and amortization66,807 8,551 75,358 — 75,358 
2018
Net sales to external customers (a)
$2,242,616 $233,191 $2,475,807 $— $2,475,807 
Operating profit (b)
167,459 31,329 198,788 — 198,788 
Total assets (c)
1,034,254 129,776 1,164,030 79,863 1,243,893 
Expenditures for long-lived assets (d)
247,895 20,544 268,439 — 268,439 
Depreciation and amortization63,447 4,079 67,526 — 67,526 

(a)     Thor Industries, Inc. (“Thor”), a customer of both segments, accounted for 21 percent, 27 percent, and 31 percent of the Company’s consolidated net sales for the years ended December 31, 2020, 2019, and 2018, respectively. Berkshire Hathaway Inc. (through its subsidiaries Forest River, Inc. and Clayton Homes, Inc.), a customer of both segments, accounted for 19 percent, 21 percent, and 23 percent of the Company’s consolidated net sales for the years ended December 31, 2020, 2019, and 2018, respectively. No other customer accounted for more than 10 percent of consolidated net sales in the years ended December 31, 2020, 2019, and 2018.
(b)     Certain general and administrative expenses are allocated between the segments based upon net sales or operating profit, depending upon the nature of the expense.
(c)     Segment assets include accounts receivable, inventories, fixed assets, goodwill and other intangible assets. Corporate and other assets include cash and cash equivalents, prepaid expenses and other current assets, deferred taxes, and other assets.
(d)     Expenditures for long-lived assets include capital expenditures, as well as fixed assets, goodwill and other intangible assets purchased as part of the acquisition of businesses. The Company purchased $299.3 million, $395.6 million, and $150.9 million of long-lived assets, as part of the acquisitions of businesses in the years ended December 31, 2020, 2019, and 2018, respectively.
Net sales by OEM Segment product were as follows for the years ended December 31:
(In thousands)202020192018
OEM Segment:
Chassis, chassis parts, and slide-out mechanisms$815,706 $796,434 $908,065 
Windows and doors620,372 585,464 615,644 
Furniture and mattresses351,107 342,691 380,514 
Axles and suspension solutions145,989 129,471 122,897 
Other234,737 237,841 215,496 
Total OEM Segment net sales2,167,911 2,091,901 2,242,616 
Total Aftermarket Segment net sales628,255 279,581 233,191 
Total net sales$2,796,166 $2,371,482 $2,475,807