The Company manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which the Chief Operating Decision Maker (“CODM”) evaluates performance and makes resource allocation decisions. None of the reportable segments include operating segments that have been aggregated. These segments contain individual business components that have been combined on the basis of common management, customers, products, production processes and other economic characteristics. Intersegment sales are recorded with a reasonable margin and are eliminated in consolidation.

The Material Handling Segment manufactures a broad selection of durable plastic reusable containers that are used repeatedly during the course of their service life. At the end of their service life, these highly sustainable products can be recovered, recycled, and reprocessed into new products. The Material Handling Segment’s products include pallets, small parts bins, bulk shipping containers, storage and organization products, OEM parts, custom plastic products, consumer fuel containers and tanks for water, fuel and waste handling. Products in the Material Handling Segment are primarily injection molded, rotationally molded or blow molded. This segment conducts its primary operations in the United States and Canada. Markets served include industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles and consumer, among others. Products are sold both directly to end-users and through distributors.

The Distribution Segment is engaged in the distribution of equipment, tools, and supplies used for tire servicing and automotive under-vehicle repair and the manufacture of tire repair and retreading products. The product line includes categories such as tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment and tools, and tire repair/retread supplies. The Distribution Segment also manufactures and sells certain traffic markings, including reflective highway marking tape. The Distribution Segment operates domestically through its sales offices and eight regional distribution centers in the United States, and in certain foreign countries through export sales. In addition, the Distribution Segment operates directly in certain foreign markets, principally Central America, through foreign branch operations. Markets served include retail and truck tire dealers, commercial auto and truck fleets, truck stop operations, auto dealers, general service and repair centers, tire re-treaders, and government agencies. The acquisition of Mohawk, described in Note 3, is included in the Distribution Segment.

Total sales from foreign business units were approximately $11.2 million and $13.8 million for the quarters ended June 30, 2023 and 2022, respectively, and $23.7 million and $26.4 million for the six months ended June 30, 2023 and 2022, respectively.

Summarized segment detail for the quarters and six months ended June 30, 2023 and 2022 are presented in the following table:


	For the Quarter Ended June 30,						For the Six Months Ended June 30,
	2023			2022			2023			2022
Net Sales
Material Handling	$	143,295		$	173,090		$	295,857		$	349,726
Distribution		65,173			60,075			128,358			108,936
Inter-company sales		(15	)		(9	)		(23	)		(20	)
Total net sales	$	208,453		$	233,156		$	424,192		$	458,642

Operating income
Material Handling	$	24,828		$	28,034		$	50,179		$	59,254
Distribution (2)		3,398			4,269			5,635			7,570
Corporate(1) (2) (3)		(12,084	)		(9,686	)		(20,715	)		(19,802	)
Total operating income		16,142			22,617			35,099			47,022
Interest expense, net		(1,790	)		(1,211	)		(3,436	)		(2,358	)
Income before income taxes	$	14,352		$	21,406		$	31,663		$	44,664

(1) The company recognized $1.8 million and $0.6 million of expense to the estimated environmental reserve, net of probable insurance recoveries for the quarters ended June 30, 2023 and 2022, respectively, and $2.3 million and $1.3 million for the six months ended June 30, 2023 and 2022, respectively, as described in Note 10. Environmental charges are not included in segment results and are shown with Corporate.

(2) In the three and six months ended June 30, 2023 the company recognized $0.7 million of executive severance, of which $0.4 million was recognized in the Distribution Segment related to severance and benefits and $0.3 million was recognized in Corporate related to charges for the acceleration of stock compensation.

(3) Corporate includes $1.3 million of consulting costs to improve the Company's capabilities to screen and execute large acquisitions in the three and six months ended June 30, 2023.