10.

SEGMENTS

a. Segment Reporting

During the second quarter of 2016, the Company realigned its reporting segments and, as a result, the businesses previously operating within the former retail segment are now reported under either Commercial Trailer Products or Diversified Products in effort to strengthen the alignment between the Company’s manufacturing businesses and its retail sales and service operations, improve profitability and capitalize on growth opportunities. Additionally, the Company performed an analysis to determine the allocations of goodwill and test for impairment. Based on this analysis, the Company determined that the portion of goodwill allocated to the retail branch operations was impaired as the fair value of the reporting unit did not exceed its carrying value resulting in an impairment charge of $1.7 million in the second quarter of 2016 for the Commercial Trailer Products reporting segment.

As a result of the realignment of reporting segments, the Company now manages its business in two segments: Commercial Trailer Products and Diversified Products. The Commercial Trailer Products segment manufacturers standard and customized van and platform trailers, truck bodies and other transportation related equipment to customers who purchase directly from the Company, through independent dealers or Company owned branch locations through which the Company offers additional service and support. The Diversified Products segment, comprised of four strategic business units including, Tank Trailer, Aviation & Truck Equipment, Process Systems and Composites, 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. Financial performance for each of the Company’s reporting segments below has been restated to reflect the realignment.

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. Reportable segment information is as follows (in thousands):

	Commercial		Diversified		Corporate and
Three Months Ended September 30,	Trailer Products		Products		Eliminations		Consolidated
2016
Net Sales
External Customers	$	380,514	$	83,758	$	-	$	464,272
Intersegment Sales		-		3,692		(3,692)		-
Total Net Sales	$	380,514	$	87,450	$	(3,692)	$	464,272

Income (Loss) from operations	$	55,043	$	6,224	$	(6,412)	$	54,855
Assets	$	362,337	$	386,255	$	243,225	$	991,817

2015
Net Sales
External Customers	$	406,382	$	124,968	$	-	$	531,350
Intersegment Sales		28		2,819		(2,847)		-
Total Net Sales	$	406,410	$	127,787	$	(2,847)	$	531,350

Income (Loss) from operations	$	45,789	$	17,601	$	(7,001)	$	56,389
Assets	$	367,567	$	418,741	$	238,063	$	1,024,371

	Commercial		Diversified		Corporate and
Nine Months Ended September 30,	Trailer Products		Products		Eliminations		Consolidated
2016
Net Sales
External Customers	$	1,126,752	$	256,635	$	-	$	1,383,387
Intersegment Sales		15		9,974		(9,989)		-
Total Net Sales	$	1,126,767	$	266,609	$	(9,989)	$	1,383,387

Income (Loss) from operations	$	162,435	$	23,471	$	(23,995)	$	161,911
Assets	$	362,337	$	386,255	$	243,225	$	991,817

2015
Net Sales
External Customers	$	1,148,039	$	335,739	$	-	$	1,483,778
Intersegment Sales		224		8,494		(8,718)		-
Total Net Sales	$	1,148,263	$	344,233	$	(8,718)	$	1,483,778

Income (Loss) from operations	$	107,948	$	38,725	$	(20,967)	$	125,706
Assets	$	367,567	$	418,741	$	238,063	$	1,024,371

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		Corporate and
	Trailer Products		Products		Eliminations		Consolidated
Three Months Ended September 30,	$		$		$		$		%
2016
New Trailers		360,023		32,280		(89)		392,214		84.5
Used Trailers		2,923		621		-		3,544		0.8
Components, parts and service		14,038		29,308		(3,603)		39,743		8.6
Equipment and other		3,530		25,241		-		28,771		6.1
Total net sales		380,514		87,450		(3,692)		464,272		100.0

2015
New Trailers		377,892		64,358		-		442,250		83.2
Used Trailers		8,441		921		-		9,362		1.8
Components, parts and service		16,067		32,715		(2,847)		45,935		8.6
Equipment and other		4,010		29,793		-		33,803		6.4
Total net sales		406,410		127,787		(2,847)		531,350		100.0

Nine Months Ended September 30,
2016
New Trailers		1,061,819		96,285		(89)		1,158,015		83.7
Used Trailers		10,202		2,615		-		12,817		0.9
Components, parts and service		43,108		88,653		(9,900)		121,861		8.8
Equipment and other		11,638		79,056		-		90,694		6.6
Total net sales		1,126,767		266,609		(9,989)		1,383,387		100.0

2015
New Trailers		1,069,588		169,612		-		1,239,200		83.5
Used Trailers		22,081		3,413		-		25,494		1.7
Components, parts and service		45,686		93,632		(8,670)		130,648		8.8
Equipment and other		10,908		77,576		(48)		88,436		6.0
Total net sales		1,148,263		344,233		(8,718)		1,483,778		100.0