SEGMENTS AND RELATED INFORMATION

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

SEGMENTS AND RELATED INFORMATION

12. SEGMENTS AND RELATED INFORMATION

a. Segment Reporting

The Company manages its business in three segments: Commercial Trailer Products, Diversified Products and Retail. The Commercial Trailer Products segment produces and sells new trailers to the Retail segment and to customers who purchase trailers directly from the Company or through independent dealers. The Diversified Products segment focuses on the Company’s commitment to expand its customer base, diversify its product offerings and revenues and extend its market leadership by leveraging its proprietary DuraPlate^® panel technology, drawing on its core manufacturing expertise and making available products that are complementary to truck and tank trailers and transportation equipment. The Retail segment includes the sale of new and used trailers, as well as the sale of after-market parts and service, through its retail branch network.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies except that the Company evaluates segment performance based on income from operations. The Company has not allocated certain corporate related administrative costs, interest and income taxes included in the corporate and eliminations segment to the Company’s other reportable segment. The Company accounts for intersegment sales and transfers at cost plus a specified mark-up. The Company manages its assets and capital spending on a consolidated basis, not by operating segment, as the assets and capital spending of the Diversified Products segment are intermixed with those of the Commercial Trailer Products segment. Therefore, our chief operating decision maker does not review any asset or capital spending information by operating segment and, accordingly, we do not report asset or capital spending information by operating segment. Reportable segment information is as follows (in thousands):

	Commercial		Diversified				Corporate and
	Trailer Products		Products		Retail		Eliminations		Consolidated
2015
Net sales
External customers	$	1,446,113	$	415,093	$	166,283	$	-	$	2,027,489
Intersegment sales		63,267		12,928		1,008		(77,203)	$	-
Total net sales	$	1,509,380	$	428,021	$	167,291	$	(77,203)	$	2,027,489
Depreciation and amortization		11,574		22,853		2,136		1,435		37,998
Income (Loss) from operations		158,805		47,940		4,401		(30,777)		180,369
Reconciling items to net income
Interest expense										19,548
Other, net										(2,490)
Income tax expense										59,022
Net income									$	104,289
2014
Net sales
External customers	$	1,221,040	$	453,160	$	189,115	$	-	$	1,863,315
Intersegment sales		73,124		13,078		965		(87,167)	$	-
Total net sales	$	1,294,164	$	466,238	$	190,080	$	(87,167)	$	1,863,315
Depreciation and amortization		11,332		23,806		2,061		1,630		38,829
Income (Loss) from operations		81,141		54,879		3,785		(17,419)		122,386
Reconciling items to net income
Interest expense										22,165
Other, net										1,759
Income tax expense										37,532
Net income									$	60,930
2013
Net sales
External customers	$	1,010,736	$	444,804	$	180,146	$	-	$	1,635,686
Intersegment sales		71,720		13,849		1,340		(86,909)	$	-
Total net sales	$	1,082,456	$	458,653	$	181,486	$	(86,909)	$	1,635,686
Depreciation and amortization		11,127		23,320		2,029		1,860		38,336
Income (Loss) from operations		57,543		59,126		2,885		(16,363)		103,191
Reconciling items to net income
Interest expense										26,308
Other, net										(740)
Income tax expense										31,094
Net income									$	46,529

b. Customer Concentration

The Company is subject to a concentration of risk as the five largest customers together accounted for approximately 25%, 20% and 17% of the Company’s aggregate net sales in 2015, 2014 and 2013, respectively. In addition, for each of the last three years there were no customers whose revenue individually represented 10% or more of our aggregate net sales. International sales, primarily to Canadian customers, accounted for less than 10% in each of the last three years.

c. Product Information

The Company offers products primarily in four general categories: (1) new trailers, (2) used trailers, (3) components, parts and service and (4) equipment and other. The following table sets forth the major product categories and their percentage of consolidated net sales (dollars in thousands):

	Commercial		Diversified
Year ended December 31,	Trailer Products		Products		Retail		Eliminations		Consolidated
2015	$		$		$		$		$		%
New trailers		1,467,029		218,028		67,639		(60,467)		1,692,229		83.5
Used trailers		19,962		4,558		13,622		(2,562)		35,580		1.8
Components, parts and service		6,300		93,251		83,115		(14,116)		168,550		8.3
Equipment and other		16,089		112,184		2,915		(58)		131,130		6.4
Total net external sales		1,509,380		428,021		167,291		(77,203)		2,027,489		100.0

	Commercial		Diversified
	Trailer Products		Products		Retail		Eliminations		Consolidated
2014	$		$		$		$		$		%
New trailers		1,250,264		227,382		89,041		(72,862)		1,493,825		73.7
Used trailers		23,576		4,593		16,946		-		45,115		2.2
Components, parts and service		3,475		100,764		80,533		(14,183)		170,589		8.4
Equipment and other		16,849		133,499		3,560		(122)		153,786		15.7
Total net external sales		1,294,164		466,238		190,080		(87,167)		1,863,315		100.0

	Commercial		Diversified
	Trailer Products		Products		Retail		Eliminations		Consolidated
2013	$		$		$		$		$		%
New trailers		1,031,004		204,812		82,995		(71,888)		1,246,923		66.9
Used trailers		33,443		3,158		12,819		(5)		49,415		2.7
Components, parts and service		7,420		106,312		81,405		(14,811)		180,326		9.7
Equipment and other		10,589		144,371		4,267		(205)		159,022		20.7
Total net external sales		1,082,456		458,653		181,486		(86,909)		1,635,686		100.0