11.

SEGMENTS

a. Segment Reporting

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.

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.

As a result of the Supreme acquisition which took place on September 27, 2017, the operating activities of Supreme from the date of acquisition through September 30, 2017 were not material to the Company and were excluded from the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2017. Supreme assets as of September 30, 2017, which are considered preliminary and subject to adjustment, are presented within the corporate and eliminations segment. Beginning with the fourth quarter of 2017, the Company expects to implement a new reporting segment referred to as the Final Mile Products segment, which will include the Supreme operations and certain other truck body operations currently in the Company’s Commercial Trailer Products segment.

Reportable segment information is as follows (in thousands):

	Commercial		Diversified		Corporate and
Three Months Ended September 30,	Trailer Products		Products		Eliminations		Consolidated
2017
Net Sales
External Customers	$	339,494	$	85,604	$	-	$	425,098
Intersegment Sales		(2)		3,246		(3,244)		-
Total Net Sales	$	339,492	$	88,850	$	(3,244)	$	425,098

Income (Loss) from operations	$	36,319	$	5,178	$	(14,906)	$	26,591
Assets	$	362,209	$	356,147	$	660,771	$	1,379,127

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

	Commercial		Diversified		Corporate and
Nine Months Ended September 30,	Trailer Products		Products		Eliminations		Consolidated
2017
Net Sales
External Customers	$	962,371	$	261,346	$	-	$	1,223,717
Intersegment Sales		50		8,241		(8,291)		-
Total Net Sales	$	962,421	$	269,587	$	(8,291)	$	1,223,717

Income (Loss) from operations	$	111,865	$	14,844	$	(31,186)	$	95,523
Assets	$	362,209	$	356,147	$	660,771	$	1,379,127

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

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,	$		$		$		$		%
2017
New Trailers		319,463		35,225		-		354,688		83.4
Used Trailers		3,245		601		-		3,846		0.9
Components, parts and service		12,255		27,881		(3,244)		36,892		8.7
Equipment and other		4,529		25,143		-		29,672		7.0
Total net sales		339,492		88,850		(3,244)		425,098		100.0

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

Nine Months Ended September 30,
2017
New Trailers		906,058		99,210		-		1,005,268		82.1
Used Trailers		5,368		2,457		-		7,825		0.6
Components, parts and service		38,100		93,750		(8,291)		123,559		10.1
Equipment and other		12,895		74,170		-		87,065		7.2
Total net sales		962,421		269,587		(8,291)		1,223,717		100.0

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