Segment Reporting

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Reporting

2. SEGMENT REPORTING

     The Company has two reportable segments; the recreational vehicle products segment (the "RV Segment") and the manufactured housing products segment (the "MH Segment"). Intersegment sales are insignificant.

     The RV Segment, which accounted for 87 percent, 84 percent and 83 percent of consolidated net sales for the years ended December 31, 2012, 2011 and 2010, respectively, manufactures a variety of products used primarily in the production of RVs, including:

• Steel chassis for towable RVs
• Axles and suspension solutions for towable RVs
• Slide-out mechanisms and solutions
• Thermoformed bath, kitchen and other products
• Entry steps
• Manual, electric and hydraulic stabilizer and leveling systems

• Aluminum windows and screens
• Chassis components
• Furniture and mattresses
• Entry, baggage, patio and ramp doors
• Awnings
• Other accessories
  

     The Company also supplies certain of these products to the RV aftermarket. In addition, the Company manufactures components for truck caps, buses, and trailers used to haul boats, livestock, equipment and other cargo. Approximately 84 percent of the Company's RV Segment net sales are components to manufacturers of travel trailer and fifth-wheel RVs.

     The MH Segment, which accounted for 13 percent, 16 percent and 17 percent of consolidated net sales for the years ended December 31, 2012, 2011 and 2010, respectively, manufactures a variety of products used in the production of manufactured homes and to a lesser extent, modular housing and mobile office units, including:

• Vinyl and aluminum windows and screens
• Thermoformed bath and kitchen products
• Steel and fiberglass entry doors
• Aluminum and vinyl patio doors

• Steel chassis
• Steel chassis parts
• Axles

     The Company also supplies windows, doors and thermoformed bath products as replacement parts to the manufactured housing aftermarket. Certain of the Company's MH Segment customers manufacture both manufactured homes and modular homes, and certain of the products manufactured by the Company are suitable for both types of homes. As a result, the Company is not always able to determine in which type of home its products are installed.

     Decisions concerning the allocation of the Company's resources are made by the Company's key executives, with oversight by the Board of Directors. This group evaluates the performance of each segment based upon segment operating profit or loss, defined as income or loss before interest, corporate expenses, executive succession, accretion, other non-segment items 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 RV and MH Segments are the same as those described in Note 1 of the Notes to Consolidated Financial Statements.

Information relating to segments follows for the years ended December 31, (in thousands):

				Segments				Corporate
		RV		MH		Total		and Other			Total
2012
Net sales to external customers(a)	$	780,925	$	120,198	$	901,123	$	-		$	901,123
Operating profit (loss)(b)(e)	$	55,120	$	13,335	$	68,455	$	(10,323	)	$	58,132
Total assets(c)	$	281,728	$	35,668	$	317,396	$	56,472		$	373,868
Expenditures for long-lived assets(d)	$	30,893	$	2,739	$	33,632	$	-		$	33,632
Depreciation and amortization	$	22,750	$	2,822	$	25,572	$	93		$	25,665
2011
Net sales to external customers(a)	$	570,643	$	110,523	$	681,166	$	-		$	681,166
Operating profit (loss)(b)(e)	$	45,715	$	11,980	$	57,695	$	(9,147	)	$	48,548
Total assets(c)	$	268,395	$	40,737	$	309,132	$	41,951		$	351,083
Expenditures for long-lived assets(d)	$	66,931	$	3,378	$	70,309	$	103		$	70,412
Depreciation and amortization	$	17,593	$	2,834	$	20,427	$	95		$	20,522
2010
Net sales to external customers(a)	$	477,202	$	95,553	$	572,755	$	-		$	572,755
Operating profit (loss)(b)(e)	$	44,388	$	9,590	$	53,978	$	(8,550	)	$	45,428
Total assets(c)	$	186,497	$	40,366	$	226,863	$	79,918		$	306,781
Expenditures for long-lived assets(d)	$	41,759	$	1,016	$	42,775	$	34		$	42,809
Depreciation and amortization	$	13,820	$	3,093	$	16,913	$	174		$	17,087

(a) Thor Industries, Inc., a customer of the RV Segment, accounted for 34 percent, 36 percent and 41 percent of the Company's consolidated net sales for the years ended December 31, 2012, 2011 and 2010, respectively. Berkshire Hathaway Inc. (through its subsidiaries Forest River, Inc. and Clayton Homes, Inc.), a customer of both segments, accounted for 27 percent, 27 percent and 26 percent of the Company's consolidated net sales for the years ended December 31, 2012, 2011 and 2010, respectively. No other customer accounted for more than 10 percent of consolidated net sales in the years ended December 31, 2012, 2011 and 2010.

(b) Certain general and administrative expenses of Lippert and Kinro 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, short-term investments, 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 $1.5 million, $45.2 million and $32.6 million of long-lived assets, as part of the acquisitions of businesses in the years ended December 31, 2012, 2011 and 2010, respectively.

(e)

Corporate and Other was comprised of the following for the years ended December 31, (in thousands):

		2012			2011			2010
Corporate expenses	$	(8,508	)	$	(7,483	)	$	(7,990	)
Executive succession		(1,456	)		-			-
Accretion related to contingent consideration		(1,756	)		(1,886	)		(1,582	)
Other non-segment items		1,397			222			1,022
Total Corporate and Other	$	(10,323	)	$	(9,147	)	$	(8,550	)

Net sales by product were as follows for the years ended December 31, (in thousands):

		2012		2011		2010
RV Segment:
Chassis, chassis parts and
slide-out mechanisms	$	443,850	$	316,580	$	261,811
Windows, doors and screens		173,436		126,130		112,679
Furniture and mattresses		78,082		67,088		49,017
Axles and suspension solutions		57,275		43,669		38,420
Other		28,282		17,176		15,275
Total RV Segment net sales	$	780,925	$	570,643	$	477,202
MH Segment:
Windows, doors and screens	$	63,655	$	58,377	$	57,154
Chassis and chassis parts		41,874		38,754		25,070
Other		14,669		13,392		13,329
Total MH Segment net sales	$	120,198	$	110,523	$	95,553
Total net sales	$	901,123	$	681,166	$	572,755

The composition of net sales was as follows for the years ended December 31, (in thousands):

		2012		2011		2010
RV Segment:
RV original equipment manufacturers:
Travel trailers and fifth-wheels	$	658,961	$	499,852	$	427,830
Motorhomes		30,196		15,828		16,864
RV aftermarket		19,119		14,660		13,914
Adjacent industries		72,649		40,303		18,594
Total RV Segment net sales	$	780,925	$	570,643	$	477,202
MH Segment:
Manufactured housing
original equipment manufacturers	$	80,392	$	77,087	$	68,483
Manufactured housing aftermarket		16,060		16,184		16,895
Adjacent industries		23,746		17,252		10,175
Total MH Segment net sales	$	120,198	$	110,523	$	95,553
Total net sales	$	901,123	$	681,166	$	572,755