SEGMENTS

Segment Reporting

The Company manages its business in three segments: Commercial Trailer Products, Diversified Products, and Final Mile Products. The Commercial Trailer Products segment manufactures standard and customized van and platform trailers and other transportation related equipment for customers who purchase directly from the Company or through independent dealers. The Diversified Products segment, comprised of three strategic business units including, Tank Trailer, 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 Final Mile Products segment manufactures truck bodies for customers in the final mile space.

Previously, the Company managed its business in two segments: Commercial Trailer Products and Diversified Products. In 2017, the Company completed the acquisition of Supreme. As a result, the Company created a new reporting segment referred to as the Final Mile Products segment, which includes the Supreme operations and certain other truck body operations which were previously included in the Commercial Trailer Products segment. The Company has not restated the historical comparative periods due to the immaterial impact of the existing truck body activities on the presented segments and periods.

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 Trailer Products		Diversified Products			Final Mile Products			Corporate and Eliminations			Consolidated
2018
Net sales
External customers	$	1,536,687	$	372,342		$	358,249		$	—		$	2,267,278
Intersegment sales	252		21,629			—			(21,881		)	—
Total net sales	$	1,536,939	$	393,971		$	358,249		$	(21,881	)	$	2,267,278

Depreciation and amortization	$	9,631	$	21,177		$	8,314		$	1,560		$	40,682
Income (Loss) from operations	$	141,795	$	(3,033	)	$	7,907		$	(35,682	)	$	110,987
Assets	$	355,183	$	349,423		$	484,634		$	115,153		$	1,304,393

2017
Net sales
External customers	$	1,348,251	$	348,449		$	70,461		$	—		$	1,767,161
Intersegment sales	131		12,909			—			(13,040		)	—
Total net sales	$	1,348,382	$	361,358		$	70,461		$	(13,040	)	$	1,767,161

Depreciation and amortization	$	9,975	$	22,236		$	1,152		$	1,690		$	35,053
Income (Loss) from operations	$	151,999	$	20,376		$	(2,098	)	$	(39,461	)	$	130,816
Assets	$	311,705	$	340,651		$	404,246		$	294,911		$	1,351,513

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
Assets	$	312,848	$	370,338		$	—		$	215,547		$	898,733

Customer Concentration

The Company is subject to a concentration of risk as the five largest customers together accounted for approximately 25%, 24% and 24% of the Company’s aggregate net sales in 2018, 2017 and 2016, respectively. In addition, for each of the last three years there were no customers whose revenue individually represented 10% or more of our aggregate net sales. International sales accounted for less than 10% in each of the last three years.

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):



Year ended December 31, 2018	Commercial Trailer Products		Diversified Products		Final Mile Products		Eliminations			Consolidated
New trailers	$	1,473,583	$	164,790	$	—	$	—		$	1,638,373	72.2	%
Used trailers	9,618		3,514		—		—			13,132		0.6	%
Components, parts and service	34,994		122,099		9,968		(21,811		)	145,250		6.4	%
Equipment and other	18,744		103,568		348,281		(70		)	470,523		20.8	%
Total net external sales	$	1,536,939	$	393,971	$	358,249	$	(21,881	)	$	2,267,278	100.0	%



Year ended December 31, 2017	Commercial Trailer Products		Diversified Products		Final Mile Products		Eliminations			Consolidated
New trailers	$	1,273,584	$	140,105	$	—	$	—		$	1,413,689	80.0	%
Used trailers	10,720		3,278		—		—			13,998		0.8	%
Components, parts and service	48,008		117,681		1,877		(13,040		)	154,526		8.7	%
Equipment and other	16,070		100,294		68,584					184,948		10.5	%
Total net external sales	$	1,348,382	$	361,358	$	70,461	$	(13,040	)	$	1,767,161	100.0	%



Year ended December 31, 2016	Commercial Trailer Products		Diversified Products		Final Mile Products		Eliminations			Consolidated
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	%