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SEGMENT INFORMATION
12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company has two reportable segments, Manufacturing and Distribution, which are based on its method of internal reporting, which segregates its businesses based on the way in which its chief operating decision maker allocates resources, evaluates financial results, and determines compensation. The Company does not measure profitability at the end market (RV, marine, MH and industrial) level.
 
A description of the Company’s reportable segments is as follows:
Manufacturing – This segment includes the following products: 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; RV and marine furniture; audio systems and accessories, including amplifiers, tower speakers, soundbars, and subwoofers; decorative vinyl and paper laminated panels; solid surface, granite, and quartz countertop fabrication; RV painting; fabricated aluminum products; fiberglass and plastic components; fiberglass bath fixtures and tile systems; softwoods lumber; custom cabinetry; polymer-based and other flooring; electrical systems components including instrument and dash panels; wrapped vinyl, paper and hardwood profile mouldings; interior passage doors; air handling products; slide-out trim and fascia; thermoformed shower surrounds; specialty bath and closet building products; fiberglass and plastic helm systems and components products; treated, untreated and laminated plywood; wiring and wire harnesses; adhesives and sealants; boat towers, tops, trailers and frames; marine hardware and accessories; protective covers for boats, RVs, aircraft, and military and industrial equipment; aluminum and plastic fuel tanks; CNC molds and composite parts; slotwall panels and components; and other products.
Distribution – The Company distributes pre-finished wall and ceiling panels; drywall and drywall finishing products; electronics and audio systems components; appliances; marine accessories and components; wiring, electrical and plumbing products; fiber reinforced polyester products; cement siding; raw and processed lumber; interior passage doors; roofing
products; laminate and ceramic flooring; tile; shower doors; furniture; fireplaces and surrounds; interior and exterior lighting products; and other miscellaneous products in addition to providing transportation and logistics services.
The accounting policies of the segments are the same as those described in Note 1, except that segment data includes intersegment sales. Assets are identified to the segments except for cash, prepaid expenses, land and buildings, and certain deferred assets, which are identified with the corporate division. The corporate division charges rent to the segments for use of the land and buildings based upon estimated market rates. The Company accounts for intersegment sales similar to third party transactions, which reflect current market prices. The Company also records certain income from purchase incentive agreements at the corporate division. The Company evaluates the performance of its segments and allocates resources to them based on a variety of indicators including but not limited to sales and operating income as presented in the tables below.
The tables below present information that is provided to the chief operating decision maker of the Company as of December 31, 2022 and 2021 and for the years ended December 31, 2022, 2021 and 2020 (in thousands):  
2022
  Manufacturing Distribution Total
Net outside sales $ 3,603,766  $ 1,278,106  $ 4,881,872 
Intersegment sales 77,646  9,491  87,137 
Total sales 3,681,412  1,287,597  4,969,009 
Operating income 531,547  136,889  668,436 
Total assets 2,302,745  407,861  2,710,606 
Capital expenditures 67,635  3,801  71,436 
Depreciation and amortization 114,782  11,422  126,204 
2021
  Manufacturing Distribution Total
Net outside sales $ 2,930,466  $ 1,147,626  $ 4,078,092 
Intersegment sales 71,641  7,028  78,669 
Total sales 3,002,107  1,154,654  4,156,761 
Operating income 379,885  106,241  486,126 
Total assets 2,031,465  464,575  2,496,040 
Capital expenditures 58,700  3,873  62,573 
Depreciation and amortization 89,899  10,790  100,689 
2020
  Manufacturing Distribution Total
Net outside sales $ 1,729,451  $ 757,146  $ 2,486,597 
Intersegment sales 36,367  5,326  41,693 
Total sales 1,765,818  762,472  2,528,290 
Operating income 190,518  54,376  244,894 
Capital expenditures 30,588  788  31,376 
Depreciation and amortization 61,407  8,527  69,934 
A reconciliation of certain line items pertaining to the total reportable segments to the consolidated financial statements as of December 31, 2022 and 2021 and for the years ended December 31, 2022, 2021 and 2020 is as follows (in thousands):
  2022 2021
2020
Net sales:      
Total sales for reportable segments $ 4,969,009  $ 4,156,761  $ 2,528,290 
Elimination of intersegment sales (87,137) (78,669) (41,693)
Consolidated net sales $ 4,881,872  $ 4,078,092  $ 2,486,597 
Operating income:    
Operating income for reportable segments $ 668,436  $ 486,126  $ 244,894 
Unallocated corporate expenses (99,037) (78,085) (30,653)
Amortization (73,229) (56,329) (40,868)
Consolidated operating income $ 496,170  $ 351,712  $ 173,373 
Total assets:      
Identifiable assets for reportable segments $ 2,710,606  $ 2,496,040 
Corporate assets unallocated to segments 49,018  31,842 
Cash and cash equivalents 22,847  122,849 
Consolidated total assets $ 2,782,471  $ 2,650,731 
Depreciation and amortization:      
Depreciation and amortization for reportable segments $ 126,204  $ 100,689  $ 69,934 
Corporate depreciation and amortization 4,553  4,119  3,336 
Consolidated depreciation and amortization $ 130,757  $ 104,808  $ 73,270 
Capital expenditures:
Capital expenditures for reportable segments $ 71,436  $ 62,573  $ 31,376 
Corporate capital expenditures 8,447  2,231  724 
  Consolidated capital expenditures $ 79,883  $ 64,804  $ 32,100 
Amortization expense related to intangible assets in the Manufacturing segment for the years ended December 31, 2022, 2021 and 2020 was $62.8 million, $46.7 million and $33.5 million, respectively. Intangible assets amortization expense in the Distribution segment was $10.4 million, $9.6 million and $7.4 million in 2022, 2021 and 2020, respectively.
Unallocated corporate expenses include corporate general and administrative expenses comprised of wages and other compensation, insurance, taxes, supplies, travel and entertainment, professional fees, amortization of inventory step-up adjustments, and other.
Major Customers
The Company had two major customers that accounted for the following sales in our Manufacturing and Distribution segments for the years ended December 31, 2022, 2021 and 2020 and trade receivables balances at December 31, 2022 and 2021 as shown in the table below:
2022
2021
2020
Customer 1
Net sales 21  % 24  % 22  %
Trade receivables 4  % 14  %
Customer 2
Net sales 17  % 18  % 17  %
Trade receivables 6  % 12  %