

13.	SEGMENT INFORMATION

The Company has determined that its reportable segments are those based on its method of internal reporting, which segregates its businesses by product category and production/distribution process.

A description of the Company’s reportable segments is as follows:

Manufacturing – This segment includes the following divisions: laminated products that are utilized to produce

furniture, shelving, walls, countertops, and cabinet products, cabinet doors, fiberglass bath fixtures and tile systems,

hardwood furniture, vinyl printing, solid surface, granite, and quartz countertop fabrication, RV painting, fabricated

aluminum products, fiberglass and plastic components, softwoods lumber, custom cabinetry, polymer-based

flooring, electrical systems components including instrument and dash panels, and other products. Patrick’s major

manufactured products also include wrapped vinyl, paper and hardwood profile mouldings, interior passage doors,

slide-out trim and fascia, thermoformed shower surrounds, specialty bath and closet building products, fiberglass

and plastic helm systems and components products, wiring and wire harnesses, aluminum fuel tanks, CNC molds

and composite parts, and slotwall panels and components. The Manufacturing segment contributed approximately 79% and 82% of the Company’s net sales for the first quarter ended April 1, 2018 and March 26, 2017, respectively.

Distribution – The Company distributes pre-finished wall and ceiling panels, drywall and drywall finishing

products, electronics and audio systems components, wiring, electrical and plumbing products, appliances, fiber reinforced

polyester products, cement siding, interior passage doors, roofing products, laminate and ceramic flooring, shower

doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other miscellaneous products, in addition to providing transportation and logistics services. The Distribution segment contributed approximately 21% and 18% of the Company’s net sales for the first quarter ended April 1, 2018 and March 26, 2017, respectively.

The tables below present unaudited information about the sales and operating income of those segments.



First Quarter Ended April 1, 2018
(thousands)	Manufacturing		Distribution		Total
Net outside sales	$	435,913	$	115,919	$	551,832
Intersegment sales	9,369		669		10,038
Total sales	445,282		116,588		561,870
Operating income	52,923		7,290		60,213



First Quarter Ended March 26, 2017
(thousands)	Manufacturing		Distribution		Total
Net outside sales	$	284,506	$	60,921	$	345,427
Intersegment sales	6,984		600		7,584
Total sales	291,490		61,521		353,011
Operating income	31,069		3,710		34,779

The following table presents a reconciliation of segment operating income to consolidated operating income:



	First Quarter Ended
(thousands)	Apr. 1, 2018			Mar. 26, 2017
Operating income for reportable segments	$	60,213		$	34,779
Unallocated corporate expenses	(11,328		)	(6,679		)
Amortization	(7,127		)	(4,185		)
Consolidated operating income	$	41,758		$	23,915

Unallocated corporate expenses include corporate general and administrative expenses comprised of wages, insurance, taxes, supplies, travel and entertainment, professional fees and other.