BUSINESS SEGMENTS

12 Months Ended

Jul. 31, 2016

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), Heartland (including Bison, CRV and DRV), Jayco (including Jayco towable, Starcraft and Highland Ridge), Keystone (including CrossRoads and Dutchmen), and KZ (including Livin’ Lite). The motorized recreational vehicle reportable segment consists of the following operating segments that have been aggregated: Airstream (motorized), Jayco (including Jayco motorized and Entegra Coach) 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.

	2016			2015			2014
Net sales:
Recreational vehicles
Towables	$	3,338,659		$	3,096,405		$	2,721,625
Motorized		1,094,250			870,799			803,831
Total recreational vehicles		4,432,909			3,967,204			3,525,456
Other		218,673			56,594			–
Intercompany eliminations		(69,470	)		(16,979	)		–
Total	$	4,582,112		$	4,006,819		$	3,525,456
Income (loss) from continuing operations before income taxes:
Recreational vehicles
Towables	$	321,874		$	259,092		$	221,123
Motorized		88,523			66,746			57,277
Total recreational vehicles		410,397			325,838			278,400
Other		18,547			1,424			–
Intercompany eliminations		(23	)		(554	)		–
Corporate		(45,608	)		(33,813	)		(25,581	)
Total	$	383,313		$	292,895		$	252,819
Total assets:
Recreational vehicles
Towables	$	1,425,168		$	907,175		$	868,017
Motorized		476,973			162,940			170,251
Total recreational vehicles		1,902,141			1,070,115			1,038,268
Other, net		156,822			161,075			–
Corporate		266,501			272,058			370,450
Total	$	2,325,464		$	1,503,248		$	1,408,718
Depreciation and amortization expense:
Recreational vehicles
Towables	$	36,054		$	26,296		$	22,192
Motorized		2,994			2,353			2,359
Total recreational vehicles		39,048			28,649			24,551
Other		12,352			1,678			–
Corporate		1,175			1,054			724
Discontinued operations		–			–			559
Total	$	52,575		$	31,381		$	25,834
Capital acquisitions:
Recreational vehicles
Towables	$	37,489		$	35,039		$	16,914
Motorized		11,191			4,309			5,942
Total recreational vehicles		48,680			39,348			22,856
Other		2,799			436			–
Corporate		2,495			3,271			7,519
Discontinued operations		–			–			63
Total	$	53,974		$	43,055		$	30,438

Export sales from the Company’s continuing operations, predominantly to Canada, were $368,426, $465,642 and $521,818 in fiscal 2016, 2015 and 2014, respectively, with the fiscal 2016 and 2015 totals being adversely impacted by the strength of the U.S. dollar during those periods.