10.

SEGMENTS

a. Segment Reporting

During the second quarter of 2016, the Company realigned its reporting segments and, as a result, the businesses previously operating within the former retail segment are now reported under either Commercial Trailer Products or Diversified Products in effort to strengthen the alignment between the Company’s manufacturing businesses and its retail sales and service operations, improve profitability and capitalize on growth opportunities. Additionally, the Company performed an analysis to determine the allocations of goodwill and test for impairment. Based on the testing performed, the Company determined that the portion of goodwill allocated to the retail branch operations was impaired as the fair value of the reporting unit did not exceed its carrying value resulting in an impairment charge for the Commercial Trailer Products reporting segment of $1.7 million.

As a result of the realignment of reporting segments, the Company now manages its business in two segments: Commercial Trailer Products and Diversified Products. The Commercial Trailer Products segment produces and sells new trailers to customers who purchase trailers directly from the Company, through independent dealers and Company owned branch locations. 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. Financial performance for each of the Company’s reporting segments below has been restated to reflect the realignment.

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 segments. The Company accounts for intersegment sales and transfers at cost plus a specified mark-up. Reportable segment information is as follows (in thousands):

	Commercial		Diversified		Corporate and
	Trailer Products		Products		Eliminations		Consolidated
Three Months Ended June 30, 2016
Net Sales
External Customers	$	382,207	$	89,231	$	-	$	471,438
Intersegment Sales		5		3,639		(3,644)		-
Total Net Sales	$	382,212	$	92,870	$	(3,644)	$	471,438

Income (Loss) from operations	$	57,135	$	10,258	$	(8,521)	$	58,872
Assets	$	353,270	$	394,233	$	239,090	$	986,593

2015
Net Sales
External Customers	$	412,641	$	102,190	$	-	$	514,831
Intersegment Sales		23		3,116		(3,139)		-
Total Net Sales	$	412,664	$	105,306	$	(3,139)	$	514,831

Income (Loss) from operations	$	39,249	$	9,769	$	(6,964)	$	42,054
Assets	$	381,821	$	424,518	$	188,463	$	994,802

	Commercial		Diversified		Corporate and
	Trailer Products		Products		Eliminations		Consolidated
Six Months Ended June 30, 2016
Net Sales
External Customers	$	746,237	$	172,877	$	-	$	919,114
Intersegment Sales		15		6,282		(6,297)		-
Total Net Sales	$	746,252	$	179,159	$	(6,297)	$	919,114

Income (Loss) from operations	$	107,392	$	17,247	$	(17,583)	$	107,056
Assets	$	353,270	$	394,233	$	239,090	$	986,593

2015
Net Sales
External Customers	$	741,657	$	210,771	$	-	$	952,428
Intersegment Sales		196		5,675		(5,871)		-
Total Net Sales	$	741,853	$	216,446	$	(5,871)	$	952,428

Income (Loss) from operations	$	62,159	$	21,124	$	(13,966)	$	69,317
Assets	$	381,821	$	424,518	$	188,463	$	994,802

b. 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		Corporate and
	Trailer Products		Products		Eliminations		Consolidated
	$		$		$		$		%
Three Months Ended June 30, 2016
New Trailers		359,763		34,229		-		393,992		83.6
Used Trailers		3,427		1,093		-		4,520		1.0
Components, parts and service		14,869		31,958		(3,644)		43,183		9.2
Equipment and other		4,153		25,590		-		29,743		6.2
Total net sales		382,212		92,870		(3,644)		471,438		100.0

2015
New Trailers		384,442		51,236		-		435,678		84.6
Used Trailers		9,226		1,323		-		10,549		2.0
Components, parts and service		15,616		30,723		(3,139)		43,200		8.4
Equipment and other		3,380		22,024		-		25,404		5.0
Total net sales		412,664		105,306		(3,139)		514,831		100.0

Six Months Ended June 30, 2016
New Trailers		701,796		64,005		-		765,801		83.3
Used Trailers		7,279		1,994		-		9,273		1.0
Components, parts and service		29,070		59,345		(6,297)		82,118		8.9
Equipment and other		8,107		53,815		-		61,922		6.8
Total net sales		746,252		179,159		(6,297)		919,114		100.0

2015
New Trailers		691,696		105,254		-		796,950		83.7
Used Trailers		13,640		2,492		-		16,132		1.7
Components, parts and service		29,619		60,917		(5,823)		84,713		8.9
Equipment and other		6,898		47,783		(48)		54,633		5.7
Total net sales		741,853		216,446		(5,871)		952,428		100.0