11.

SEGMENTS

a. Segment Reporting

The Company manages its business in three segments: Commercial Trailer Products, Diversified Products and Retail. The Commercial Trailer Products segment produces and sells new trailers to the Retail segment and to customers who purchase trailers directly from the Company or through independent dealers. The Diversified Products segment focuses on the Company’s commitment to expand its customer base, diversify its product offerings and revenues and extend its market leadership by leveraging its proprietary DuraPlate^® panel technology, drawing on its core manufacturing expertise and making available products that are complementary to truck and tank trailers and transportation equipment. The results related to the purchased Beall assets from the date of the purchase, February 4, 2013, are included in the Diversified Products segment. The Retail segment includes the sale of new and used trailers, as well as the sale of after-market parts and service, through its retail branch network. The Company has not allocated certain corporate related administrative costs, interest and income taxes included in the corporate and eliminations segment to the Company’s other reportable segments. The Company accounts for intersegment sales and transfers at cost plus a specified mark-up. The Company manages its assets on a consolidated basis, not by operating segment, as the assets of the Diversified Products segment are intermixed with those of the Commercial Trailer Products segment. Therefore, our chief operating decision maker does not review any asset information by operating segment and, accordingly, we do not report asset information by operating segment. Reportable segment information is as follows (in thousands):

	Commercial		Diversified				Corporate and
Three Months Ended June 30,	Trailer Products		Products		Retail		Eliminations		Consolidated
2014
Net sales
External customers	$	318,997	$	115,657	$	51,367	$	-	$	486,021
Intersegment sales		16,656		19,386		217		(36,259)		-
Total net sales	$	335,653	$	135,043	$	51,584	$	(36,259)	$	486,021

Income (Loss) from operations	$	23,087	$	12,739	$	1,281	$	(3,252)	$	33,855
Reconciling items to income before income taxes
Interest expense										(5,733)
Other, net										(1,048)
Income before income taxes									$	27,074

2013
Net sales
External customers	$	244,060	$	121,360	$	47,706	$	-	$	413,126
Intersegment sales		21,775		14,107		430		(36,312)		-
Total net sales	$	265,835	$	135,467	$	48,136	$	(36,312)	$	413,126

Income (Loss) from operations	$	14,555	$	19,262	$	1,261	$	(4,626)	$	30,452
Reconciling items to income before income taxes
Interest expense										(6,577)
Other, net										(333)
Income before income taxes									$	23,542

	Commercial		Diversified				Corporate and
	Trailer Products		Products		Retail		Eliminations		Consolidated
Six Months Ended June 30,
2014
Net Sales
External customers	$	525,994	$	221,421	$	96,726	$	-	$	844,141
Intersegment sales		37,109		33,571		494		(71,174)		-
Total net sales	$	563,103	$	254,992	$	97,220	$	(71,174)	$	844,141

Income (Loss) from operations	$	32,018	$	25,596	$	2,331	$	(6,625)	$	53,320
Reconciling items to income before income taxes
Interest expense										(11,450)
Other, net										(1,016)
Income before income taxes									$	40,854

2013
Net Sales
External customers	$	428,148	$	220,947	$	88,260	$	-	$	737,355
Intersegment sales		35,762		26,536		719		(63,017)		-
Total net sales	$	463,910	$	247,483	$	88,979	$	(63,017)	$	737,355

Income (Loss) from operations	$	19,873	$	32,782	$	2,134	$	(9,481)	$	45,308
Reconciling items to income before income taxes
Interest expense										(14,112)
Other, net										1,905
Income before income taxes									$	33,101

b. Product Information

The Company offers products primarily in four general categories: (1) new trailers, (2) used trailers, (3) components, parts and service and (4) equipment and other. The following table sets forth the major product categories and their percentage of consolidated net sales (dollars in thousands):

	Commercial		Diversified
	Trailer Products		Products		Retail		Consolidated
Three Months Ended June 30,	$		$		$		$		%
2014
New trailers		306,181		54,090		24,311		384,582	79.1
Used trailers		8,584		1,259		5,167		15,010	3.1
Components, parts and service		688		30,208		20,942		51,838	10.7
Equipment and other		3,544		30,100		947		34,591	7.1
Total net external sales		318,997		115,657		51,367		486,021	100.0

	Commercial	Diversified
	Trailer Products	Products	Retail	Consolidated
2013	$	$	$	$	%
New trailers	232,848	51,232	22,864	306,944	74.3
Used trailers	6,265	671	3,657	10,593	2.6
Components, parts and service	2,592	30,515	19,795	52,902	12.8
Equipment and other	2,355	38,942	1,390	42,687	10.3
Total net external sales	244,060	121,360	47,706	413,126	100.0

	Commercial	Diversified
	Trailer Products	Products	Retail	Consolidated
Six Months Ended June 30,	$	$	$	$	%
2014
New trailers	499,180	108,938	44,582	652,700	77.3
Used trailers	19,832	2,437	8,806	31,075	3.7
Components, parts and service	1,268	50,628	41,640	93,536	11.1
Equipment and other	5,714	59,418	1,698	66,830	7.9
Total net external sales	525,994	221,421	96,726	844,141	100.0

	Commercial	Diversified
	Trailer Products	Products	Retail	Consolidated
2013	$	$	$	$	%
New trailers	407,850	94,753	39,807	542,410	73.6
Used trailers	11,315	1,620	6,305	19,240	2.6
Components, parts and service	5,401	49,314	39,474	94,189	12.8
Equipment and other	3,582	75,260	2,674	81,516	11.1
Total net external sales	428,148	220,947	88,260	737,355	100.0