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SEGMENTS AND RELATED INFORMATION
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
SEGMENTS AND RELATED INFORMATION
12.
SEGMENTS AND RELATED INFORMATION
 
a.
Segment Reporting
 
During the second quarter of 2016, the Company realigned its reporting segments into two segments, Commercial Trailer Products and Diversified Products. As a result of the realignment, the businesses previously operating within the former retail segment are now reported under one of these two segments. The Company undertook the realignment in an effort to strengthen the alignment between its 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 resulting in an impairment charge of $1.7 million in the second quarter of 2016 for the Commercial Trailer Products segment.
 
The Commercial Trailer Products segment manufactures 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 accounting policies of the segments are the same as those described in the summary of significant accounting policies except that the Company evaluates segment performance based on income from operations. 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
 
 
 
 
 
Trailer Products
 
Products
 
Eliminations
 
Consolidated
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
 
 
 
 
 
External customers
 
$
1,506,070
 
$
339,374
 
$
-
 
$
1,845,444
 
Intersegment sales
 
 
40
 
 
13,030
 
 
(13,070)
 
 
-
 
Total net sales
 
$
1,506,110
 
$
352,404
 
$
(13,070)
 
$
1,845,444
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
12,345
 
 
22,970
 
 
1,454
 
 
36,769
 
Income (Loss) from operations
 
 
212,351
 
 
24,595
 
 
(34,414)
 
 
202,532
 
Reconciling items to net income
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
 
 
15,663
 
Other, net
 
 
 
 
 
 
 
 
 
 
 
1,452
 
Income tax expense
 
 
 
 
 
 
 
 
 
 
 
65,984
 
Net income
 
 
 
 
 
 
 
 
 
 
$
119,433
 
Assets
 
$
312,848
 
$
370,338
 
$
215,547
 
$
898,733
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
 
 
 
 
 
External customers
 
$
1,582,019
 
$
445,470
 
$
-
 
$
2,027,489
 
Intersegment sales
 
 
222
 
 
11,457
 
 
(11,679)
 
 
-
 
Total net sales
 
$
1,582,241
 
$
456,927
 
$
(11,679)
 
$
2,027,489
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
12,674
 
 
23,888
 
 
1,436
 
 
37,998
 
Income (Loss) from operations
 
 
159,385
 
 
51,078
 
 
(30,094)
 
 
180,369
 
Reconciling items to net income
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
 
 
19,548
 
Other, net
 
 
 
 
 
 
 
 
 
 
 
(2,490)
 
Income tax expense
 
 
 
 
 
 
 
 
 
 
 
59,022
 
Net income
 
 
 
 
 
 
 
 
 
 
$
104,289
 
Assets
 
$
336,235
 
$
397,892
 
$
215,543
 
$
949,670
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
 
 
 
 
 
External customers
 
$
1,380,195
 
$
483,120
 
$
-
 
$
1,863,315
 
Intersegment sales
 
 
428
 
 
11,872
 
 
(12,300)
 
 
-
 
Total net sales
 
$
1,380,623
 
$
494,992
 
$
(12,300)
 
$
1,863,315
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
 
12,331
 
 
24,868
 
 
1,630
 
 
38,829
 
Income (Loss) from operations
 
 
82,290
 
 
57,635
 
 
(17,539)
 
 
122,386
 
Reconciling items to net income
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
 
 
 
22,165
 
Other, net
 
 
 
 
 
 
 
 
 
 
 
1,759
 
Income tax expense
 
 
 
 
 
 
 
 
 
 
 
37,532
 
Net income
 
 
 
 
 
 
 
 
 
 
$
60,930
 
Assets
 
$
342,015
 
$
422,322
 
$
163,109
 
$
927,446
 
 
b.
Customer Concentration
 
The Company is subject to a concentration of risk as the five largest customers together accounted for approximately 24%, 25% and 20% of the Company’s aggregate net sales in 2016, 2015 and 2014, respectively. In addition, for each of the last three years there were no customers whose revenue individually represented 10% or more of the Company’s aggregate net sales. International sales, primarily to Canadian customers, accounted for less than 10% in each of the last three years. 
 
c.
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
 
 
 
 
 
Year ended December 31,
 
Trailer Products
 
Products
 
Eliminations
 
Consolidated
 
2016
 
$
 
$
 
$
 
$
 
%
 
New trailers
 
 
1,421,586
 
 
129,639
 
 
(89)
 
 
1,551,136
 
 
84.1
 
Used trailers
 
 
11,998
 
 
3,176
 
 
-
 
 
15,174
 
 
0.8
 
Components, parts and service
 
 
56,191
 
 
111,519
 
 
(12,955)
 
 
154,755
 
 
8.4
 
Equipment and other
 
 
16,335
 
 
108,070
 
 
(26)
 
 
124,379
 
 
6.7
 
Total net external sales
 
 
1,506,110
 
 
352,404
 
 
(13,070)
 
 
1,845,444
 
 
100.0
 
 
 
 
Commercial
 
Diversified
 
 
 
 
 
 
 
Trailer Products
 
Products
 
Eliminations
 
Consolidated
 
2015
 
$
 
$
 
$
 
$
 
%
 
New trailers
 
 
1,474,201
 
 
218,028
 
 
-
 
 
1,692,229
 
 
83.5
 
Used trailers
 
 
31,022
 
 
4,558
 
 
-
 
 
35,580
 
 
1.8
 
Components, parts and service
 
 
60,482
 
 
119,696
 
 
(11,628)
 
 
168,550
 
 
8.3
 
Equipment and other
 
 
16,536
 
 
114,645
 
 
(51)
 
 
131,130
 
 
6.4
 
Total net external sales
 
 
1,582,241
 
 
456,927
 
 
(11,679)
 
 
2,027,489
 
 
100.0
 
 
 
 
Commercial
 
Diversified
 
 
 
 
 
 
 
Trailer Products
 
Products
 
Eliminations
 
Consolidated
 
2014
 
$
 
$
 
$
 
$
 
%
 
New trailers
 
 
1,267,610
 
 
226,215
 
 
-
 
 
1,493,825
 
 
80.2
 
Used trailers
 
 
41,027
 
 
4,088
 
 
-
 
 
45,115
 
 
2.4
 
Components, parts and service
 
 
55,429
 
 
127,460
 
 
(12,300)
 
 
170,589
 
 
9.2
 
Equipment and other
 
 
16,557
 
 
137,229
 
 
-
 
 
153,786
 
 
8.2
 
Total net external sales
 
 
1,380,623
 
 
494,992
 
 
(12,300)
 
 
1,863,315
 
 
100.0