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Segment Reporting | 12 Months Ended
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Dec. 31, 2018
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 91 percent, 92 percent and 92 percent of consolidated net sales for each of the years ended December 31, 2018, 2017 and 2016, 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 64 percent of the Company’s OEM Segment net sales in 2018 were of components for travel trailer and fifth-wheel RVs. The Aftermarket Segment, which accounted for 9 percent, 8 percent and 8 percent of consolidated net sales for each of the years ended December 31, 2018, 2017 and 2016, respectively, supplies engineered 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 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 tables 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:
|  |  | 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
Motorhomes | 143,488 |  | 43,809 |  | 187,297
Adjacent industries OEMs | 574,100 |  | 40,489 |  | 614,589
Total OEM Segment net sales | 2,149,162 |  | 93,454 |  | 2,242,616
Aftermarket Segment: |  |  |  |  |
Total Aftermarket Segment net sales | 222,588 |  | 10,603 |  | 233,191
Total net sales | $ | 2,371,750 |  | $ | 104,057 |  | $ | 2,475,807
|  |  | 2017 |  |
(In thousands) | U.S. (a) |  | Int’l (b) |  | Total
OEM Segment: |  |  |  |  |
RV OEMs: |  |  |  |  |
Travel trailers and fifth-wheels | $ | 1,403,079 |  | $ | 2,904 |  | $ | 1,405,983
Motorhomes | 138,895 |  | 20,522 |  | 159,417
Adjacent industries OEMs | 398,919 |  | 12,304 |  | 411,223
Total OEM Segment net sales | 1,940,893 |  | 35,730 |  | 1,976,623
Aftermarket Segment: |  |  |  |  |
Total Aftermarket Segment net sales | 160,637 |  | 10,510 |  | 171,147
Total net sales | $ | 2,101,530 |  | $ | 46,240 |  | $ | 2,147,770
|  |  | 2016 |  |
(In thousands) | U.S. (a) |  | Int’l (b) |  | Total
OEM Segment: |  |  |  |  |
RV OEMs: |  |  |  |  |
Travel trailers and fifth-wheels | $ | 1,097,385 |  | $ | 2,497 |  | $ | 1,099,882
Motorhomes | 108,961 |  | 7,230 |  | 116,191
Adjacent industries OEMs | 325,550 |  | 6,468 |  | 332,018
Total OEM Segment net sales | 1,531,896 |  | 16,195 |  | 1,548,091
Aftermarket Segment: |  |  |  |  |
Total Aftermarket Segment net sales | 124,733 |  | 6,074 |  | 130,807
Total net sales | $ | 1,656,629 |  | $ | 22,269 |  | $ | 1,678,898
(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 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 |  | Subtotal |  | and Other |  | Total
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 amortization | 63,447 |  | 4,079 |  | 67,526 |  | — |  | 67,526
2017 |  |  |  |  |  |  |  |  |
Net sales to external customers (a) | $ | 1,976,623 |  | $ | 171,147 |  | $ | 2,147,770 |  | $ | — |  | $ | 2,147,770
Operating profit (b) | 190,276 |  | 24,005 |  | 214,281 |  | — |  | 214,281
Total assets (c) | 785,926 |  | 76,309 |  | 862,235 |  | 83,623 |  | 945,858
Expenditures for long-lived assets (d) | 148,570 |  | 4,875 |  | 153,445 |  | — |  | 153,445
Depreciation and amortization | 50,751 |  | 3,662 |  | 54,413 |  | 314 |  | 54,727
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
(a) Thor Industries, Inc. (“Thor”), a customer of both segments, accounted for 31 percent, 38 percent and 37 percent of the Company’s consolidated net sales for the years ended December 31, 2018, 2017 and 2016, respectively. Berkshire Hathaway Inc. (through its subsidiaries Forest River, Inc. and Clayton Homes, Inc.), a customer of both segments, accounted for 23 percent, 25 percent and 26 percent of the Company’s consolidated net sales for the years ended December 31, 2018, 2017 and 2016, respectively. No other customer accounted for more than 10 percent of consolidated net sales in the years ended December 31, 2018, 2017 and 2016. (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 $150.9 million, $65.0 million and $42.0 million of long-lived assets, as part of the acquisitions of businesses in the years ended December 31, 2018, 2017 and 2016, respectively. Net sales by OEM Segment product were as follows for the years ended December 31:
(In thousands) | 2018 |  | 2017 |  | 2016
OEM Segment: |  |  |  |  |
Chassis, chassis parts and slide-out mechanisms | $ | 908,065 |  | $ | 914,397 |  | $ | 743,160
Windows and doors | 615,644 |  | 424,625 |  | 335,717
Furniture and mattresses | 380,514 |  | 342,680 |  | 245,596
Axles and suspension solutions | 122,897 |  | 123,513 |  | 115,538
Other | 215,496 |  | 171,408 |  | 108,080
Total OEM Segment net sales | 2,242,616 |  | 1,976,623 |  | 1,548,091
Total Aftermarket Segment net sales | 233,191 |  | 171,147 |  | 130,807
Total net sales | $ | 2,475,807 |  | $ | 2,147,770 |  | $ | 1,678,898

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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