SEGMENT INFORMATION

6 Months Ended

Jun. 29, 2019

Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and is evaluated on a regular basis by the chief operating decision maker to make decisions regarding the allocation of resources to the segment and assess the performance of the segment. For the transition period ended December 31, 2018, the Company began reporting results under three reportable segments: Commercial, Siding and Windows. The Company’s prior reportable segments, Engineered Building Systems, Metal Components, Insulated Metal Panels, and Metal Coil Coating, are now collectively in the Commercial segment. Prior periods for all periods presented have been recast to conform to the current segment presentation. The Siding segment will include the operating results of the legacy Ply Gem operating segment of Siding, Fencing, and Stone, and the Windows segment will include the operating results of the legacy Ply Gem operating segment of Windows and Doors.

These operating segments follow the same accounting policies used for our consolidated financial statements. We evaluate a segment’s performance based primarily upon operating income before corporate expenses.

Corporate assets consist primarily of cash, investments, prepaid expenses, current and deferred taxes and property, plant and equipment associated with our headquarters in Cary, North Carolina and office in Houston, Texas. These items (and income and expenses related to these items) are not allocated to the operating segments. During the three months ended June 29, 2019, the Company changed the manner in which costs were allocated to the Commercial segment for commercial cost centers that had previously been categorized as unallocated corporate costs. Corporate unallocated expenses include share-based compensation expenses, acquisition costs, and other expenses related to executive, legal, finance, tax, treasury, human resources, information technology and strategic sourcing, and corporate travel expenses. Additional unallocated amounts primarily include non-operating items such as interest income, interest expense, loss on extinguishment of debt and other income (expense).

The following table represents summary financial data attributable to the segments for the periods indicated (in thousands):



	Three Months Ended						Six Months Ended
	June 29, 2019			April 29, 2018			June 29, 2019			April 29, 2018
Net sales:
Commercial	$	480,285		$	457,069		$	905,246		$	878,418
Siding	306,525			—			524,802			—
Windows	508,647			—			930,241			—
Total net sales	$	1,295,457		$	457,069		$	2,360,289		$	878,418
Operating income:
Commercial	$	58,809		$	40,022		$	83,119		$	77,821
Siding	25,937			—			14,283			—
Windows	31,912			—			27,593			—
Corporate	(35,727		)	(21,066		)	(71,429		)	(45,967		)
Total operating income	80,931			18,956			53,566			31,854
Unallocated other expense, net	(58,052		)	(26,722		)	(114,601		)	(33,253		)
Income (loss) before taxes	$	22,879		$	(7,766	)	$	(61,035	)	$	(1,399	)



	June 29, 2019		October 28, 2018
Total assets:
Commercial	$	1,009,885	$	1,024,433
Siding	2,386,627		—
Windows	2,057,063		—
Corporate	200,165		85,942
Total assets	$	5,653,740	$	1,110,375