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Segment Reporting | 12 Months Ended
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Dec. 31, 2016
Segment Reporting [Abstract] |
Segment Reporting | SEGMENT REPORTING The Company previously had two reportable segments, the recreational vehicle products segment (the “RV Segment”) and the manufactured housing products segment (the “MH Segment”). The Company has recently increased its focus on the significant opportunities in the aftermarket for its products, primarily sales to retail dealers, wholesale distributors and service centers. Additionally, over the past several years, sales of components for manufactured homes have become a smaller part of the Company’s business, largely due to the growth the Company has experienced with respect to its components sold to customers for traditional recreational vehicles as well as the expanded use of its components in other non-RV applications, which we refer to as adjacent industries. Unit growth for MH Segment products has also been lower over the last decade, primarily due to the real estate, credit and economic environment, including the availability of site built homes at stable prices and high interest rate spreads between conventional mortgages for site-built homes and loans for manufactured homes. In response to these changes in the Company’s business, subsequent to March 31, 2016, the Company modified its internal reporting structure, reflecting a change in how its chief operating decision maker (“CODM”) assesses the performance of the Company’s operating results and makes decisions about resource allocations. The Company’s new reportable segments are the OEM Segment and the Aftermarket Segment. Intersegment sales are insignificant. The OEM Segment, which accounted for 92 percent, 93 percent and 95 percent of consolidated net sales for each of the years ended December 31, 2016, 2015 and 2014, respectively, 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 in 2016 were of components for travel trailer and fifth-wheel RVs. The Aftermarket Segment, which accounted for 8 percent, 7 percent and 5 percent of consolidated net sales for each of the years ended December 31, 2016, 2015 and 2014, respectively, 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 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. The change in reported segments had no effect on the Company’s net income, total assets or liabilities, or stockholders’ equity. 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:
| Segments | Corporate |
(In thousands) | OEM | Aftermarket | Total | and Other | Total
2016 |  |  |  |  |
Net sales to external customers (a) | $ | 1,548,091 |  | $ | 130,807 |  | $ | 1,678,898 |  | $ | — |  | $ | 1,678,898 |
Operating profit (b) | 180,850 |  | 20,000 |  | 200,850 |  | — |  | 200,850 |
Total assets (c) | 569,385 |  | 65,211 |  | 634,596 |  | 152,308 |  | 786,904 |
Expenditures for long - lived assets (d) | 80,588 |  | 6,014 |  | 86,602 |  | — |  | 86,602 |
Depreciation and amortization | $ | 42,593 |  | $ | 3,298 |  | $ | 45,891 |  | $ | 276 |  | $ | 46,167 |
2015 |  |  |  |  |
Net sales to external customers (a) | $ | 1,300,060 |  | $ | 103,006 |  | $ | 1,403,066 |  | $ | — |  | $ | 1,403,066 |
Operating profit (loss) (b) | 105,224 |  | 14,746 |  | 119,970 |  | (3,716 | ) | 116,254 |
Total assets (c) | 500,734 |  | 56,683 |  | 557,417 |  | 65,439 |  | 622,856 |
Expenditures for long - lived assets (d) | 65,492 |  | 2,095 |  | 67,587 |  | — |  | 67,587 |
Depreciation and amortization | $ | 38,583 |  | $ | 2,898 |  | $ | 41,481 |  | $ | 143 |  | $ | 41,624 |
2014 |  |  |  |  |
Net sales to external customers (a) | $ | 1,127,026 |  | $ | 63,756 |  | $ | 1,190,782 |  | $ | — |  | $ | 1,190,782 |
Operating profit (loss) (b) | 88,744 |  | 8,697 |  | 97,441 |  | (1,954 | ) | 95,487 |
Total assets (c) | 441,127 |  | 54,489 |  | 495,616 |  | 48,225 |  | 543,841 |
Expenditures for long - lived assets (d) | 119,715 |  | 27,655 |  | 147,370 |  | — |  | 147,370 |
Depreciation and amortization | $ | 30,954 |  | $ | 1,554 |  | $ | 32,508 |  | $ | 88 |  | $ | 32,596 |
(a) | Thor Industries, Inc. (“Thor”), a customer of both segments, accounted for 37 percent, 28 percent and 33 percent of the Company’s consolidated net sales for the years ended December 31, 2016, 2015 and 2014, respectively. Berkshire Hathaway Inc. (through its subsidiaries Forest River, Inc. and Clayton Homes, Inc.), a customer of both segments, accounted for 26 percent, 26 percent and 28 percent of the Company’s consolidated net sales for the years ended December 31, 2016, 2015 and 2014, respectively. Jayco, Inc., a customer of both segments, accounted for 10 percent of the Company’s consolidated net sales for the year ended December 31, 2015, this customer was subsequently acquired by Thor and is included in the Thor’s 2016 percentage above. No other customer accounted for more than 10 percent of consolidated net sales in the years ended December 31, 2016, 2015 and 2014. International sales, primarily in Europe and Australia, and export sales represented approximately 2 percent, 1 percent and 1 percent of consolidated net sales in 2016, 2015 and 2014, respectively.
(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 $42.0 million, $38.6 million and $105.0 million of long-lived assets, as part of the acquisitions of businesses in the years ended December 31, 2016, 2015 and 2014, respectively.
Net sales by product were as follows for the years ended December 31:
(In thousands) | 2016 |  | 2015 |  | 2014
OEM Segment: |  |  |  |  |
Chassis, chassis parts and slide-out mechanisms | $ | 743,160 |  |  | $ | 664,542 |  |  | $ | 593,756 |
Windows and doors | 335,717 |  |  | 301,171 |  |  | 258,915 |
Furniture and mattresses | 245,596 |  |  | 161,840 |  |  | 132,356 |
Axles and suspension solutions | 115,538 |  |  | 108,464 |  |  | 88,909 |
Other | 108,080 |  |  | 64,043 |  |  | 53,090 |
Total OEM Segment net sales | 1,548,091 |  |  | 1,300,060 |  |  | 1,127,026 |
Total Aftermarket Segment net sales | 130,807 |  |  | 103,006 |  |  | 63,756 |
Total net sales | $ | 1,678,898 |  |  | $ | 1,403,066 |  |  | $ | 1,190,782 |
The composition of net sales was as follows for the years ended December 31:
(In thousands) | 2016 |  | 2015 |  | 2014
Net sales: |  |  |  |  |
OEM Segment: |  |  |  |  |
RV OEMs: |  |  |  |  |
Travel trailers and fifth-wheels | $ | 1,099,882 |  |  | $ | 938,787 |  |  | $ | 841,497 |
Motorhomes | 116,191 |  |  | 86,513 |  |  | 70,332 |
Adjacent industries OEMs | 332,018 |  |  | 274,760 |  |  | 215,197 |
Total OEM Segment net sales | 1,548,091 |  |  | 1,300,060 |  |  | 1,127,026 |
Aftermarket Segment: |  |  |  |  |
Total Aftermarket Segment net sales | 130,807 |  |  | 103,006 |  |  | 63,756 |
Total net sales | $ | 1,678,898 |  |  | $ | 1,403,066 |  |  | $ | 1,190,782 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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