SEGMENT INFORMATION

6 Months Ended

Jun. 26, 2011

Segment Reporting [Abstract]

SEGMENT INFORMATION

15.SEGMENT INFORMATION

Patrick has determined that its reportable segments are those based on the Company's method of internal reporting, which segregates its businesses by product category and production/distribution process.  Effective January 1, 2011, certain changes were made to the manner in which operating segment results are used by or provided to the chief operating decision makers of the Company, including: (1) certain costs related to wages, payroll taxes and incentive compensation that were previously reflected as unallocated corporate expenses are now being allocated to the Company's two operating segments; and (2) a majority of corporate incentive agreements (which include vendor rebate agreements) previously included in the corporate segment are now being allocated to the operating segments and reflected as a reduction of cost of goods sold.   Prior period results were reclassified to reflect the current year presentation.

A description of the Company's reportable segments is as follows:

Manufacturing - Utilizes various materials, including lauan, MDF, gypsum, and particleboard, which are bonded by adhesives or a heating process to a number of products, including vinyl, paper, foil, and high pressure

laminate. These products are utilized to produce furniture, shelving, wall, counter, and cabinet products with a wide variety of finishes and textures.  This segment also includes a cabinet door division and a vinyl printing division.  The Manufacturing segment contributed approximately 76% and 83% of the Company's net sales for the six months ended June 26, 2011 and June 27, 2010, respectively.

Distribution - Distributes pre-finished wall and ceiling panels, drywall and drywall finishing products, electronics, adhesives, wiring, electrical and plumbing products, cement siding, interior passage doors, roofing products, laminate flooring, and other miscellaneous products.  The Distribution segment contributed approximately 24%and 17% of the Company's net sales for the six months ended June 26, 2011 and June 27, 2010, respectively.

The tables below present unaudited information about the sales and operating income of those segments.

Second Quarter Ended June 26, 2011:
(thousands)		Manufacturing		Distribution		Total
Net outside sales	$	62,543	$	20,077	$	82,620
Intersegment sales		3,240		17		3,257
Operating income		5,392		568		5,960

Second Quarter Ended June 27, 2010:
(thousands)		Manufacturing		Distribution		Total
Net outside sales	$	69,505	$	14,360	$	83,865
Intersegment sales		3,794		8		3,802
Operating income		4,047		512		4,559

Six Months Ended June 26, 2011:
(thousands)		Manufacturing		Distribution		Total
Net outside sales	$	115,862	$	36,243	$	152,105
Intersegment sales		6,282		25		6,307
Operating income		7,732		795		8,527

Six Months Ended June 27, 2010:
(thousands)		Manufacturing		Distribution		Total
Net outside sales	$	122,392	$	24,973	$	147,365
Intersegment sales		6,505		19		6,524
Operating income		5,856		663		6,519

                                         Reconciliation of segment operating income to consolidated operating income:

		Second Quarter Ended						Six Months Ended
(thousands)		June 26, 2011			June 27,  2010			June 26, 2011			June 27,  2010
Operating income for reportable segments	$	5,960		$	4,559		$	8,527		$	6,519
Corporate incentive agreements		21			(20	)		81			(35	)
Gain on sale of fixed assets and acquisition of business		228			29			252			2,820
Unallocated corporate expenses		(1,543	)		(1,542	)		(3,250	)		(3,449	)
Amortization of intangible assets		(171	)		(126	)		(343	)		(252	)
Consolidated operating income	$	4,495		$	2,900		$	5,267		$	5,603