14. Industry Segments

Using the criteria of ASC 280, Segment Reporting, the Company manages its business under two operating segments, Material Handling and Distribution, consistent with the manner in which our 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. The Company accounts for intersegment sales and transfers at cost plus a specified mark-up.

The Material Handling Segment manufactures a broad selection of plastic reusable containers, pallets, small parts bins, bulk shipping containers, storage and organization products and rotationally-molded plastic tanks for water, fuel and waste handling. This segment conducts its primary operations in the United States, but also operates in Brazil and Canada. Markets served encompass various niches of industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles, consumer, and 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 undervehicle 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 operates domestically through sales offices, and four regional distribution centers in the United States and in 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, auto dealers, general service and repair centers, tire retreaders, and government agencies.

Summarized segment detail for the three and six months ended June 30, 2017 and 2016 are presented in the following table:

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016
Net Sales
Material Handling	$	103,074		$	100,907		$	206,254		$	209,931
Distribution		39,258			43,234			77,832			85,455
Inter-company sales		(29	)		(24	)		(80	)		(64	)
Total net sales	$	142,303		$	144,117		$	284,006		$	295,322

Income (loss) from continuing operations before income taxes
Material Handling	$	7,426		$	14,333		$	19,514		$	21,774
Distribution		3,025			3,966			4,563			6,502
Corporate		(4,871	)		(7,133	)		(11,139	)		(15,981	)
Total operating income		5,580			11,166			12,938			12,295
Interest expense, net		(1,785	)		(2,053	)		(3,760	)		(4,072	)
Income from continuing operations before income taxes	$	3,795		$	9,113		$	9,178		$	8,223