BUSINESS SEGMENTS

12 Months Ended

Jul. 31, 2015

BUSINESS SEGMENTS

4.  BUSINESS SEGMENTS

The Company has two reportable segments: (1) towable recreational vehicles and (2) motorized recreational vehicles. The towables recreational vehicle reportable segment consists of the following operating segments that have been aggregated: Airstream (towable), Bison, CrossRoads, Heartland (including its wholly-owned subsidiaries CRV and DRV), Keystone, KZ and Livin’ Lite. The motorized recreational vehicle reportable segment consists of the following operating segments that have been aggregated: Airstream (motorized) and Thor Motor Coach.

The operations of the Company’s Postle subsidiary, which was acquired May 1, 2015, are included in Other, which is a non-reportable segment. Net sales included in Other mainly relate to the sale of aluminum extrusions and specialized component products. Intercompany eliminations adjust for Postle sales to the Company’s towables and motorized segments, which are consummated at established arm’s length transfer prices consistent with the selling prices of extrusion components to third party customers.

All manufacturing is conducted in the United States. Total assets include those assets used in the operation of each reportable and non-reportable segment, and the Corporate assets consist primarily of cash and cash equivalents and deferred income tax assets.

	2015			2014			2013
Net sales:
Recreational vehicles
Towables	$	3,096,405		$	2,721,625		$	2,650,253
Motorized		870,799			803,831			591,542
Total recreational vehicles		3,967,204			3,525,456			3,241,795
Other		56,594			–			–
Intercompany eliminations		(16,979	)		–			–
Total	$	4,006,819		$	3,525,456		$	3,241,795
Income (loss) from continuing operations before income taxes:
Recreational vehicles
Towables	$	259,092		$	221,123		$	205,724
Motorized		66,746			57,277			43,907
Total recreational vehicles		325,838			278,400			249,631
Other		1,424			–			–
Intercompany eliminations		(554	)		–			–
Corporate		(33,813	)		(25,581	)		(27,659	)
Total	$	292,895		$	252,819		$	221,972
Total assets:
Recreational vehicles
Towables	$	907,175		$	868,017		$	759,658
Motorized		162,940			170,251			126,123
Total recreational vehicles		1,070,115			1,038,268			885,781
Other, net		161,075			–			–
Corporate		272,058			370,450			305,981
Assets of discontinued operations		–			–			136,506
Total	$	1,503,248		$	1,408,718		$	1,328,268
Depreciation and amortization expense:
Recreational vehicles
Towables	$	26,296		$	22,192		$	19,888
Motorized		2,353			2,359			2,040
Total recreational vehicles		28,649			24,551			21,928
Other		1,678			–			–
Corporate		1,054			724			322
Discontinued operations		–			559			2,737
Total	$	31,381		$	25,834		$	24,987
Capital acquisitions:
Recreational vehicles
Towables	$	35,039		$	16,914		$	13,954
Motorized		4,309			5,942			1,673
Total recreational vehicles		39,348			22,856			15,627
Other		436			–			–
Corporate		3,271			7,519			8,143
Discontinued operations		–			63			420
Total	$	43,055		$	30,438		$	24,190

Export sales from the Company’s continuing operations, predominantly to Canada, were $465,642, $521,818 and $537,374 in fiscal 2015, 2014 and 2013, respectively, with the fiscal 2015 total being adversely impacted by the current strength of the U.S. dollar.