Business Segments

9 Months Ended

Apr. 30, 2019

3.	Business Segments

The Company has three reportable segments, all related to recreational vehicles: (1) North American towables, (2) North American motorized and (3) European. The North American towable recreational vehicle reportable segment consists of the following operating segments that have been aggregated: Airstream (towable), Heartland (including Bison, Cruiser RV and DRV), Jayco (including Jayco towable, Starcraft and Highland Ridge), Keystone (including CrossRoads and Dutchmen) and KZ (including Venture RV). The North American motorized recreational vehicle reportable segment consists of the following operating segments that have been aggregated: Airstream (motorized), Jayco (including Jayco motorized and Entegra Coach) and Thor Motor Coach. The European recreational vehicles reportable segment consists solely of the recently acquired EHG business, as discussed in Note 2 to the Condensed Consolidated Financial Statements. EHG includes the operations of 8 RV production facilities producing numerous respected and well-known brands within Europe, including Hymer, Buerstner, Carado, Dethleffs, Etrusco, Laika, LMC, Niesmann+Bischoff, Xplore, Elddis, Compass, Buccaneer, Sunlight and CrossCamp. EHG’s products include numerous types of towable and motorized recreational vehicles, including motorcaravans, caravans, campervans and other RV-related products and services.

The operations of the Company’s Postle subsidiary are included in “Other,” which is a

non-reportable

segment. Net sales included in Other mainly relate to the sale of aluminum extrusions and specialized component products. Intercompany eliminations adjust for Postle sales to the Company’s North American towable and North American motorized segments, which are consummated at established transfer prices generally consistent with the selling prices of extrusion components to third-party customers.

Total assets include those assets used in the operation of each reportable and

non-reportable

segment, and the Corporate assets consist primarily of cash and cash equivalents, deferred income taxes, deferred compensation plan assets and certain Corporate real estate holdings primarily utilized by Thor’s U.S.-based operating subsidiaries.


	Three Months Ended April 30,						Nine Months Ended April 30,
NET SALES:	2019			2018			2019			2018
Recreational vehicles
North American Towables	$	1,237,255		$	1,608,214		$	3,397,917		$	4,599,833
North American Motorized		459,238			598,459			1,261,931			1,724,979
Total North America		1,696,493			2,206,673			4,659,848			6,324,812
European		767,509			—			767,509			—
Total recreational vehicles		2,464,002			2,206,673			5,427,357			6,324,812
Other		69,506			82,239			198,468			233,171
Intercompany eliminations		(26,925	)		(37,342	)		(72,690	)		(103,185	)
Total	$	2,506,583		$	2,251,570		$	5,553,135		$	6,454,798

	Three Months Ended April 30,						Nine Months Ended April 30,
INCOME (LOSS) BEFORE INCOME TAXES:	2019			2018			2019			2018
Recreational vehicles
North American Towables	$	103,715		$	147,853		$	212,325		$	423,432
North American Motorized		25,185			38,908			64,102			114,032

Total North America		128,900			186,761			276,427			537,464
European		(30,947	)		—			(30,947	)		—

Total recreational vehicles		97,953			186,761			245,480			537,464
Other, net		7,868			8,872			19,728			22,645
Corporate		(64,298	)		(15,108	)		(190,295	)		(51,428	)

Total	$	41,523		$	180,525		$	74,913		$	508,681


TOTAL ASSETS:	April 30, 2019			July 31, 2018
Recreational vehicles
North American Towables	$	1,593,377		$	1,654,361
North American Motorized		521,187			492,830

Total North America		2,114,564			2,147,191
European		3,127,221			—

Total recreational vehicles		5,241,785			2,147,191
Other, net		160,661			167,965
Corporate		569,874			463,509

Total	$	5,972,320		$	2,778,665


	Three Months Ended April 30,						Nine Months Ended April 30,
DEPRECIATION AND INTANGIBLE AMORTIZATION EXPENSE:	2019			2018			2019			2018
Recreational vehicles
North American Towables	$	17,097		$	17,357		$	50,699		$	51,373
North American Motorized		3,494			3,004			10,373			8,641

Total North America		20,591			20,361			61,072			60,014
European		27,227			—			27,227			—

Total recreational vehicles		47,818			20,361			88,299			60,014
Other		2,705			2,762			7,972			8,319
Corporate		407			410			1,239			1,173

Total	$	50,930		$	23,533		$	97,510		$	69,506


	Three Months Ended April 30,						Nine Months Ended April 30,
CAPITAL ACQUISITIONS:	2019			2018			2019			2018
Recreational vehicles
North American Towables	$	13,013		$	23,175		$	49,510		$	59,588
North American Motorized		3,088			10,083			13,316			24,152

Total North America		16,101			33,258			62,826			83,740
European		15,879			—			15,879			—

Total recreational vehicles		31,980			33,258			78,705			83,740
Other		248			744			2,979			3,337
Corporate		419			169			880			8,760

Total	$	32,647		$	34,171		$	82,564		$	95,837