BUSINESS SEGMENTS

12 Months Ended

Jul. 31, 2019

The Company has three

reportable segments, all related to recreational vehicles: (1) North American towables, (2) North American motorized and (3) European.

The North American towable recreational vehicle reportable segment consists of the following operating segments that have been aggregated: Airstream (towable), Heartland (including Bison, Cruiser RV and DRV), Jayco (including Jayco towable, Starcraft and Highland Ridge), Keystone (including CrossRoads and Dutchmen) and KZ (including Venture RV). The North American 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 European recreational vehicles reportable segment consists solely of the recently acquired EHG business, as discussed in Note

to the Consolidated Financial Statements. EHG includes the operations of

eight

RV production facilities producing numerous respected and well-known brands within Europe, including Hymer, Buerstner, Carado, Dethleffs, Eriba, Etrusco, Laika, LMC, Niesmann+Bischoff, Xplore, Elddis, Compass, Buccaneer, Sunlight and CrossCamp. EHG’s products include numerous types of towable and motorized recreational vehicles, including motorcaravans, caravans, campervans and other

RV-related

products and services.

The operations of the Company’s Postle subsidiary 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 North American towable and North American motorized segments, which are consummated at established transfer prices generally consistent with the selling prices of extrusion components to third-party customers.

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, deferred income taxes, deferred compensation plan assets and certain Corporate real estate holdings primarily utilized by Thor’s U.S.-based operating subsidiaries.


	2019			2018			2017
NET SALES:
Recreational vehicles
North American Towables	$	4,558,451		$	6,008,700		$	5,127,491
North American Motorized		1,649,329			2,146,315			1,971,466
Total North America		6,207,780			8,155,015			7,098,957
European		1,486,978			–			–
Total recreational vehicles		7,694,758			8,155,015			7,098,957
Other		263,374			305,947			253,557
Intercompany eliminations		(93,374	)		(132,053	)		(105,562	)
Total	$	7,864,758		$	8,328,909		$	7,246,952
INCOME (LOSS) BEFORE INCOME TAXES:
Recreational vehicles
North American Towables	$	322,228		$	532,657		$	458,915
North American Motorized		80,910			134,785			125,323
Total North America		403,138			667,442			584,238
European		(5,946	)		–			–
Total recreational vehicles		397,192			667,442			584,238
Other, net		29,086			32,667			28,714
Corporate		(241,612	)		(67,080	)		(56,566	)
Total	$	184,666		$	633,029		$	556,386

TOTAL ASSETS:
Recreational vehicles
North American Towables	$	1,516,519		$	1,654,361		$	1,535,029
North American Motorized		446,626			492,830			500,761
Total North America		1,963,145			2,147,191			2,035,790
European		3,077,804			–			–
Total recreational vehicles		5,040,949			2,147,191			2,035,790
Other, net		163,897			167,965			156,996
Corporate		455,600			463,509			365,145
Total	$	5,660,446		$	2,778,665		$	2,557,931

DEPRECIATION AND INTANGIBLE AMORTIZATION EXPENSE:
Recreational vehicles
North American Towables	$	67,751		$	68,964		$	75,568
North American Motorized		13,831			11,800			9,393
Total North America		81,582			80,764			84,961
European		54,881			–			–
Total recreational vehicles		136,463			80,764			84,961
Other		10,647			10,861			11,967
Corporate		1,667			1,598			1,330
Total	$	148,777		$	93,223		$	98,258

CAPITAL ACQUISITIONS:
Recreational vehicles
North American Towables	$	69,321		$	85,304		$	72,801
North American Motorized		17,179			34,660			41,677
Total North America		86,500			119,964			114,478
European		35,653			–			–
Total recreational vehicles		122,153			119,964			114,478
Other		3,493			8,440			1,157
Corporate		1,599			8,902			2,120
Total	$	127,245		$	137,306		$	117,755

DESTINATION OF NET SALES BY GEOGRAPHIC REGION:
United States	$	5,803,373		$	7,540,015		$	6,618,874
Germany		836,151			1,687			1,138
Other Europe		636,105			4,358			1,504
Canada		561,172			776,068			614,528
Other foreign		27,957			6,781			10,908
Total	$	7,864,758		$	8,328,909		$	7,246,952

PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC REGION:
United States	$	569,641		$	522,054		$	425,238
Germany		424,333			–			–
Other Europe		92,553			–			–
Other		5,944			–			–
Total	$	1,092,471		$	522,054		$	425,238