(3) Industry Segment Information
Fleetwood conducts operations principally in two industries, recreational vehicles and manufactured housing. Fleetwood is organized into three segments: the RV Group, the Housing Group, and Corporate.
The RV Group, which consists of the motor home, travel trailer and RV supply divisions, is primarily a manufacturer of recreational vehicles, with the preponderance of its products being sold to a network of independent dealers. The Housing Group primarily produces factory-built homes, selling products to independent dealers, developers, or contractors. Identifiable assets exclude assets from discontinued operations in the amount of $22.0 million, $31.4 million and $28.9 million for fiscal years 2008, 2007, and 2006, respectively. The operations of Fleetwood's wholly owned insurance subsidiary have been included in the Corporate segment because the impact on consolidated operating income is not material. Intercompany sales and profits have been eliminated from the reported segment information.
Operating income (loss) is total revenues less cost of sales, operating expenses, and other operating expenses, net. The adjustments and eliminations include elimination of intercompany profits on inventories held by the former housing retail business. None of the following items have been included in the computation of operating income (loss) for the individual operating segments: certain corporate expenses, non-operating income and expenses, and income taxes. Identifiable assets are those assets used in the operation of each industry segment. Corporate assets primarily consist of cash, investments, deferred tax benefits, cash value of company-owned life insurance, other assets, and some idle facilities. Information with respect to industry segments as of April 27, 2008, April 29, 2007, and April 30, 2006, and for each of the years then ended is set forth as follows:
| RV Group | Housing Group |
Corporate and Other |
Adjustments and Eliminations |
Total | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Amounts in thousands) | |||||||||||||||||||
| 2008 Operating revenues |
$ | 1,163,041 | $ | 496,939 | $ | — | $ | — | $ | 1,659,980 | |||||||||
| Operating income | $ | 3,000 | $ | 8,608 | $ | 6,225 | $ | — | $ | 17,833 | |||||||||
| Identifiable assets | $ | 266,592 | $ | 117,929 | $ | 219,029 | $ | — | $ | 603,550 | |||||||||
| Depreciation | 7,786 | 5,257 | 4,952 | — | 17,995 | ||||||||||||||
| Amortization of financing costs | — | — | 1,543 | — | 1,543 | ||||||||||||||
| Capital expenditures | 2,927 | 2,014 | 1,078 | — | 6,019 | ||||||||||||||
| 2007 Operating revenues |
$ | 1,400,886 | $ | 518,461 | $ | — | $ | — | $ | 1,919,347 | |||||||||
| Operating loss | $ | (51,581 | ) | $ | (2,557 | ) | $ | (3,641 | ) | $ | — | $ | (57,779 | ) | |||||
| Identifiable assets | $ | 321,492 | $ | 136,791 | $ | 213,480 | $ | — | $ | 671,763 | |||||||||
| Depreciation | 8,762 | 6,649 | 6,114 | — | 21,525 | ||||||||||||||
| Amortization of financing costs | — | — | 3,549 | — | 3,549 | ||||||||||||||
| Capital expenditures | 4,212 | 2,726 | 814 | — | 7,752 | ||||||||||||||
| 2006 Operating revenues |
$ | 1,578,132 | $ | 795,877 | $ | — | $ | (25,627 | ) | $ | 2,348,382 | ||||||||
| Operating income (loss) | $ | 8,662 | $ | 38,831 | $ | (10,509 | ) | $ | (1,264 | ) | $ | 35,720 | |||||||
| Identifiable assets | $ | 347,924 | $ | 166,649 | $ | 318,587 | $ | — | $ | 833,160 | |||||||||
| Depreciation | 8,270 | 7,011 | 6,630 | — | 21,911 | ||||||||||||||
| Amortization of financing costs | — | — | 1,476 | — | 1,476 | ||||||||||||||
| Capital expenditures | 7,813 | 5,167 | 2,323 | — | 15,303 | ||||||||||||||