This Management's Discussion and Analysis of Financial Condition and Results of
Operations should be read in conjunction with the Company's Condensed
Consolidated Financial Statements and Notes thereto included in Item 1 of Part 1
of this report, as well as the Company's Annual Report on Form 10-K for the year
ended December 31, 2021.

LCI Industries ("LCII" and collectively with its subsidiaries, the "Company,"
"we," "us," or "our"), through its wholly-owned subsidiary, Lippert Components,
Inc. and its subsidiaries (collectively, "Lippert Components," "LCI," or
"Lippert"), supplies, domestically and internationally, a broad array of
engineered components for the leading original equipment manufacturers ("OEMs")
in the recreation and transportation product markets, consisting primarily of
recreational vehicles ("RVs") and adjacent industries, including buses; trailers
used to haul boats, livestock, equipment, and other cargo; trucks; boats;
trains; manufactured homes; and modular housing. We also supply engineered
components to the related aftermarkets of these industries, primarily by selling
to retail dealers, wholesale distributors, and service centers, as well as
direct to retail customers via the Internet.

We have two reportable segments, the OEM Segment and the Aftermarket Segment.
Intersegment sales are insignificant. At June 30, 2022, we operated over 130
manufacturing and distribution facilities located throughout North America and
Europe. See Note 14 of the Notes to Condensed Consolidated Financial Statements
for further information regarding our segments.

Our OEM Segment manufactures or distributes a broad array of engineered
components for the leading OEMs of RVs and adjacent industries, including buses;
trailers used to haul boats, livestock, equipment and other cargo; trucks;
boats; trains; manufactured homes; and modular housing. Approximately 65 percent
of our OEM Segment net sales for the twelve months ended June 30, 2022 were of
components for travel trailer and fifth-wheel RVs, including:

? Steel chassis and related components              ? Electric and manual entry steps
? Axles and suspension solutions                    ? Awnings and awning 

accessories


? Slide-out mechanisms and solutions                ? Electronic components

? Thermoformed bath, kitchen, and other products ? Appliances ? Vinyl, aluminum, and frameless windows

            ? Air conditioners

? Manual, electric, and hydraulic stabilizer and ? Televisions and sound systems


   leveling systems
? Entry, luggage, patio, and ramp doors             ? Tankless water 

heaters


? Furniture and mattresses                          ? Other accessories


The Aftermarket Segment supplies many of these engineered components to the
related aftermarket channels of the recreation and transportation product
markets, primarily to retail dealers, wholesale distributors, and service
centers, as well as direct to retail customers via the Internet. The Aftermarket
Segment also includes biminis, covers, buoys, fenders to the marine industry,
towing products, truck accessories, appliances, air conditioners, sound systems,
and the sale of replacement glass and awnings to fulfill insurance claims.

Most industries where we sell products or where our products are used
historically have been seasonal and are generally at the highest levels when the
weather is moderate. Accordingly, our sales and profits have generally been the
highest in the second quarter and lowest in the fourth quarter. However, current
and future seasonal industry trends have been, and may in the future be,
different than in prior years due to various factors, including fluctuations in
dealer inventories and the timing of dealer orders, the impact of international,
national, and regional economic conditions and consumer confidence on retail
sales of RVs and other products for which the Company sells its components, the
impact of severe weather conditions on the timing of industry-wide shipments
from time to time, as well as the coronavirus ("COVID-19") pandemic and related
impacts. Additionally, many of the optional upgrades and non-critical
replacement parts for RVs are purchased outside the normal product selling
season, thereby causing Aftermarket Segment sales to be counter-seasonal, but
this has been, and may in the future be, different as a result of the COVID-19
pandemic and related impacts.

COVID-19 AND RUSSIA-UKRAINE WAR UPDATE



The ongoing COVID-19 pandemic has caused significant uncertainty and disruption
in the global economy and financial markets since early 2020. With RV retail
demand at record levels throughout 2021, the industry faced challenges with
                                       26
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                                 LCI INDUSTRIES
                ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                  (Continued)
supply chain constraints, rising material and freight costs, and increases in
direct labor costs due to higher production volumes and a tightened labor
market, especially in Northern Indiana. These trends have continued through the
first six months of 2022, and, with regard to supply chain constraints and
freight costs, have also been impacted by the conflict between Russia and
Ukraine (the "Russia-Ukraine War"). To address these challenges, we have
continued to strategically manage working capital, including carrying elevated
levels of certain inventory items to avoid future shortages. We continue to
focus on our culture and leadership development programs to focus on team member
retention. We continue to closely monitor the impact of COVID-19 and the
Russia-Ukraine War on all aspects of our business. The extent to which COVID-19
and/or the Russia-Ukraine War may impact our liquidity, financial condition, and
results of operations in the future remains uncertain.

INDUSTRY BACKGROUND

OEM Segment

North American Recreational Vehicle Industry



An RV is a vehicle designed as temporary living quarters for recreational,
camping, travel or seasonal use. RVs may be motorized (motorhomes) or towable
(travel trailers, fifth-wheel travel trailers, folding camping trailers, and
truck campers).

The annual sales cycle for the RV industry generally starts in October after the
"Open House" in Elkhart, Indiana where many of the largest RV OEMs display
product to RV retail dealers and ends after the conclusion of the summer selling
season in September in the following calendar year. Between October and March,
industry-wide wholesale shipments of travel trailer and fifth-wheel RVs have
historically exceeded retail sales as dealers build inventories to support
anticipated sales. Between April and September, the spring and summer selling
seasons, retail sales of travel trailer and fifth-wheel RVs have historically
exceeded industry-wide wholesale shipments. Due to the COVID-19 pandemic, the
2021 and 2020 Open Houses were canceled. The seasonality of the RV industry has
been, and will likely continue to be, impacted by the COVID-19 pandemic, and the
timing of a return to historical seasonality is not possible to predict at this
time.

According to the Recreation Vehicle Industry Association ("RVIA"), industry-wide
wholesale shipments from the United States of travel trailer and fifth-wheel RVs
in the first six months of 2022, our primary RV market, increased eight percent
to 285,900 units, compared to the first six months of 2021, primarily due to
dealers rebuilding inventory levels partially offset by a decrease in retail
demand. Retail demand for travel trailer and fifth-wheel RVs decreased 26
percent in the first six months of 2022 compared to the same period in 2021.
Retail demand has declined from recent elevated levels, partially driven by
elevated fuel prices and rising interest rates impacting retail consumers.
Retail demand is typically revised upward in subsequent months, primarily due to
delayed RV registrations.

While we measure our OEM Segment RV sales against industry-wide wholesale
shipment statistics, the underlying health of the RV industry is determined by
retail demand. A comparison of the number of units and the year-over-year
percentage change in industry-wide wholesale shipments and retail sales of
travel trailers and fifth-wheel RVs, as reported by Statistical Surveys, Inc.,
as well as the resulting estimated change in dealer inventories, for both the
United States and Canada, is as follows:

                                                                                                                                   Estimated
                                                      Wholesale                                  Retail                          Unit Impact on
                                              Units                Change              Units               Change              Dealer Inventories
Quarter ended June 30, 2022                   133,700                0%               125,600              (30)%                     8,100
Quarter ended March 31, 2022                  152,200               16%                93,100              (19)%                     59,100
Quarter ended December 31, 2021               130,400               13%                76,500              (14)%                     53,900
Quarter ended September 30, 2021              136,000               24%               130,900              (18)%                     5,100
Twelve months ended June 30, 2022             552,300               13%               426,100              (22)%                    126,200


                                       27
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                                 LCI INDUSTRIES
                ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                  (Continued)
                                                                                                                                   Estimated
                                                      Wholesale                                  Retail                          Unit Impact on
                                              Units                Change              Units               Change              Dealer Inventories
Quarter ended June 30, 2021                   133,800               100%              180,500               36%                     (46,700)
Quarter ended March 31, 2021                  131,200               49%               114,500               52%                      16,700
Quarter ended December 31, 2020               115,200               38%                89,400               40%                      25,800
Quarter ended September 30, 2020              110,100               37%               159,100               35%                     (49,000)
Twelve months ended June 30, 2021             490,300               54%               543,500               40%                     (53,200)


According to the RVIA, industry-wide wholesale shipments of motorhome RVs in the
first six months of 2022 increased three percent to 30,100 units compared to the
first six months of 2021, primarily due to dealers rebuilding inventory levels.
Retail demand for motorhome RVs decreased 12 percent year-over-year in the first
six months of 2022, compared to a 32 percent year-over-year increase in retail
demand in the same period of 2021. Retail demand has declined from recent
elevated levels, partially driven by elevated fuel prices and rising interest
rates impacting retail consumers.

Our current estimate for full-year 2022 industry-wide wholesale shipments from
the United States of travel trailer, fifth-wheel, and motorhome RVs are
approximately 500,000 to 530,000 units. This estimate suggests a decrease of 35
to 45 percent in the second half of 2022 compared to actual wholesale shipments
in the first half of 2022. This projected decline is being driven by current
dealer inventory levels, as well as elevated gas prices and rising interest
rates impacting retail consumers.

Adjacent Industries



Our portfolio of products used in RVs can also be used in other applications,
including buses; trailers used to haul boats, livestock, equipment and other
cargo; trucks; boats; trains; manufactured homes; and modular housing
(collectively, "Adjacent Industries"). In many cases, OEM customers of the
Adjacent Industries are affiliated with RV OEMs through related subsidiaries. We
believe there are significant opportunities in these Adjacent Industries.

We currently expect production in the marine and manufactured housing markets to remain at or near current run rates through the remainder of 2022.

Aftermarket Segment



Many of our OEM Segment products are also sold through various aftermarket
channels of the recreation and transportation product markets, primarily to
retail dealers, wholesale distributors, and service centers, as well as direct
to retail customers via the Internet. This includes discretionary accessories
and replacement service parts. We have teams dedicated to product, technical,
and installation training as well as marketing support for our Aftermarket
Segment customers. We also support multiple call centers to provide responses to
customers for product, delivery, and technical support. This support is designed
for a rapid response to critical repairs, so customer downtime is minimal. The
Aftermarket Segment also includes biminis, covers, buoys, fenders to the marine
industry, towing products, truck accessories, appliances, air conditioners,
televisions, sound systems, and the sale of replacement glass and awnings to
fulfill insurance claims. Many of the optional upgrades and non-critical
replacements for RVs are purchased outside the normal product selling seasons,
thereby causing certain Aftermarket Segment sales to be counter-seasonal, but
this has been, and may in the future be, different as a result of the COVID-19
pandemic and related impacts.

According to Go RVing, estimated RV ownership in the United States as of 2020
had increased to over 11 million households. This vibrant market is a key driver
for aftermarket sales, as we anticipate owners will likely upgrade their units
as well as replace parts and accessories which have been subjected to normal
wear and tear.

We currently expect to see continued reduction in aftermarket volumes in the
second half of 2022 as a result of fully stocked distribution channels, chip
shortages impacting truck markets, and the impacts of inflation on consumers'
discretionary spending.

                                       28
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                                 LCI INDUSTRIES
                ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                                  (Continued)
RESULTS OF OPERATIONS

Consolidated Highlights

•Consolidated net sales in the second quarter of 2022 were $1.5 billion, 40
percent higher than consolidated net sales for the same period of 2021 of $1.1
billion. The increase was primarily driven by increased selling prices, market
share gains, acquisitions, and increased wholesale shipments. Net sales from
acquisitions completed in the twelve months ended June 30, 2022, primarily
Furrion Holdings Limited ("Furrion") and Girard Systems and Girard Products LLC
(collectively, "Girard"), contributed approximately $80.7 million in the second
quarter of 2022.
•Net income for the second quarter of 2022 was $154.5 million, or $6.06 per
diluted share, compared to net income of $67.9 million, or $2.67 per diluted
share, for the same period of 2021.
•Consolidated operating profit during the second quarter of 2022 was $218.8
million compared to $94.0 million in the same period of 2021. Operating profit
margin was 14.2 percent in the second quarter of 2022 compared to 8.6 percent in
the same period of 2021. The increase was primarily a result of increased
selling prices which are indexed to select commodities, pricing changes to
targeted products, and leveraging fixed costs over higher sales volumes,
partially offset by increased raw material and freight costs.
•The cost of aluminum and steel used in certain of our manufactured components
increased in the second quarter of 2022 compared to the same period of 2021. Raw
material costs are subject to continued fluctuation and are being partially
offset by contractual selling prices which are indexed to select commodities.
•The $26.7 million increase in selling, general and administrative costs in the
second quarter of 2022 was primarily driven by incremental costs from recent
acquisitions of $7.2 million, increases in personnel costs of $6.9 million,
increases in transportation costs of $4.7 million due to higher volumes and
rising freight costs, and incremental amortization of intangible assets from
acquired businesses of $3.0 million.
•The effective tax rate of 26.3 percent for the six months ended June 30, 2022
was higher than the comparable prior year period of 25.0 percent, primarily due
to decreases in the excess tax benefit related to the vesting of equity-based
compensation awards and the cash surrender value of life insurance, plus a
discrete tax adjustment for an acquisition-related tax election in the current
year period, as discussed below under "Income Taxes."
•In June 2022, we paid a quarterly dividend of $1.05 per share, aggregating to
$26.7 million.

OEM Segment - Second Quarter

Net sales of the OEM Segment in the second quarter of 2022 increased $411.6 million, compared to the same period of 2021. Net sales of components to the following OEMs markets for the three months ended June 30 were: (In thousands)

                          2022            2021         Change
RV OEMs:
Travel trailers and fifth-wheels    $   814,509      $ 527,614         54  %
Motorhomes                               91,480         67,253         36  %
Adjacent Industries OEMs                370,289        269,787         37  %
Total OEM Segment net sales         $ 1,276,278      $ 864,654         48  %


According to the RVIA, industry-wide wholesale unit shipments for the three months ended June 30 were:


                                        2022          2021        Change

Travel trailer and fifth-wheel RVs 133,700 133,800 0 % Motorhomes

                             14,800        14,800          -  %



The trend in our average product content per RV produced is an indicator of our
overall market share of components for new RVs. Our average product content per
type of RV, calculated based upon our net sales of components to domestic RV
                                       29
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                                 LCI INDUSTRIES
                ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                  (Continued)

OEMs for the different types of RVs produced for the twelve months ended June 30, divided by the industry-wide wholesale shipments of the different product mix of RVs for the same period, was: Content per:

                          2022         2021        Change

Travel trailer and fifth-wheel RV $ 5,382 $ 3,621 49 % Motorhome

$ 3,569      $ 2,644         35  %



Our average product content per type of RV excludes international sales and sales to the Aftermarket Segment and Adjacent Industries. Content per RV is impacted by changes in selling prices for our products, market share gains, and acquisitions.



Our increase in net sales to RV OEMs of travel trailers, fifth-wheel, and
motorhome components during the second quarter of 2022 was driven by selling
price increases, market share gains, and acquisitions during the second quarter
of 2022.

Our increase in net sales to OEMs in Adjacent Industries during the second quarter of 2022 was driven by selling price increase, market share gains, and wholesale production growth.



Operating profit of the OEM Segment was $190.6 million in the second quarter of
2022, an increase of $127.2 million compared to the same period of 2021. The
operating profit margin of the OEM Segment in the second quarter of 2022
increased to 14.9 percent compared to 7.3 percent for the same period of 2021
and was positively impacted by:

•Selling prices contractually tied to indices of select commodities increased,
resulting in an increase in operating profit of $110.9 million compared to the
same period of 2021.

•Pricing changes to targeted products, resulting in an increase in operating profit of $42.9 million compared to the same period of 2021.



•Leveraging of fixed costs over a larger sales base, which increased operating
profit by $9.9 million related to fixed selling, general, and administrative
costs and by $3.6 million related to fixed overhead costs.

Partially offset by:

•Increases in material commodity costs, which negatively impacted operating profit by $60.1 million, primarily related to increased steel and aluminum costs.



•Sales mix increase of lower margin products from the acquisition of Furrion and
related integration costs, which negatively impacted operating profit by $6.3
million.

•Additional amortization related to intangible assets from acquisitions completed in the last twelve months, which reduced operating profit by $3.3 million.



Amortization expense on intangible assets for the OEM Segment was $10.1 million
in the second quarter of 2022, compared to $7.8 million in the same period in
2021. Depreciation expense on fixed assets for the OEM Segment was $14.4 million
in the second quarter of 2022, compared to $12.1 million in the same period of
2021.


OEM Segment - Year to Date

Net sales of the OEM Segment in the first six months of 2022 increased 59
percent, or $1.0 billion, compared to the first six months of 2021. Net sales of
components to OEMs were to the following markets for the six months ended
June 30:
(In thousands)                          2022             2021          

Change


RV OEMs:
Travel trailers and fifth-wheels    $ 1,767,735      $ 1,030,630         72  %
Motorhomes                              178,734          129,846         38  %
Adjacent Industries OEMs                726,391          520,428         40  %
Total OEM Segment net sales         $ 2,672,860      $ 1,680,904         59  %



                                       30

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                                 LCI INDUSTRIES
                ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                  (Continued)

According to the RVIA, industry-wide wholesale unit shipments for the six months ended June 30 were:


                                        2022          2021        Change

Travel trailer and fifth-wheel RVs 285,900 265,000 8 % Motorhomes

                             30,600        29,100          5  %



Our increase in net sales to RV OEMs of travel trailers, fifth-wheel, and motorhome components during the first six months of 2022 was driven by selling price increases, market share gains, and acquisitions during the first six months of 2022.



Our increase in net sales to OEMs in Adjacent Industries during the first six
months of 2022 was driven by selling price increases, market share gains, and
wholesale production growth. We continue to believe there are significant
opportunities in Adjacent Industries.

Operating profit of the OEM Segment was $436.0 million in the first six months
of 2022, an increase of $293.3 million compared to the same period of 2021. The
operating profit margin of the OEM Segment in the first six months of 2022
increased to 16.3 percent, compared to 8.5 percent for the same period of 2021,
and was positively impacted by:

•Selling prices contractually tied to indices of select commodities increased,
resulting in an increase in operating profit of $260.6 million compared to the
same period of 2021.

•Pricing changes to targeted products, resulting in an increase in operating profit of $94.7 million compared to the same period of 2021.



•Leveraging of fixed costs over a larger sales base, which increased operating
profit by $26.5 million related to fixed selling, general, and administrative
costs and by $10.5 million related to fixed overhead costs.

Partially offset by:

•Increases in material commodity costs, which negatively impacted operating profit by $170.3 million, primarily related to increased steel and aluminum costs.



•Sales mix increase of lower margin products from the acquisition of Furrion and
related integration costs, which negatively impacted operating profit by $11.3
million.

•Additional amortization related to intangible assets from acquisitions completed in the last twelve months, which reduced operating profit by $6.8 million.



Amortization expense on intangible assets for the OEM Segment was $20.2 million
in first six months of 2022, compared to $14.3 million in the same period of
2021. Depreciation expense on fixed assets for the OEM Segment was $28.9 million
in first six months of 2022, compared to $24.8 million in the same period of
2021.


Aftermarket Segment - Second Quarter



Net sales of the Aftermarket Segment in the second quarter of 2022 increased 13
percent, or $30.8 million, compared to the same period of 2021. Net sales of
components in the Aftermarket Segment were as follows for the three months ended
June 30:
(In thousands)                            2022           2021         

Change

Total Aftermarket Segment net sales $ 259,872 $ 229,066 13 %

Net sales of the Aftermarket Segment increased during the second quarter of 2022, primarily due to selling price increases to targeted products and acquisitions.



Operating profit of the Aftermarket Segment was $28.2 million in the second
quarter of 2022, a decrease of $2.4 million compared to the same period of 2021.
The operating profit margin of the Aftermarket Segment was 10.9 percent in the
second quarter of 2022, compared to 13.4 percent in the same period in 2021, and
was negatively impacted by:

•Increases in material commodity costs and production supplies, which negatively
impacted operating profit by $31.7 million, primarily related to increased steel
and aluminum costs.

•The impact of fixed costs due to reduced organic volumes, which decreased operating profit by $3.7 million related to fixed selling, general, and administrative costs and $1.6 million related to fixed overhead costs.


                                       31
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                                 LCI INDUSTRIES
                ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                  (Continued)

•Investments in marketing activities and administrative structure of $5.0 million.

•Increases in direct labor costs due to production volumes and a tight labor market, which reduced operating profit by $2.5 million.

•Increases in transportation costs, primarily for third party freight, which reduced operating profit by $2.0 million.

•Increases in production overhead costs in order to meet growing sales demands, which negatively impacted operating profit by $1.7 million.

Partially offset by:

•Pricing changes to targeted products, resulting in an increase in operating profit of $37.0 million compared to the same period of 2021.

•Sales mix increase of higher margin products from the acquisition of Furrion, which positively impacted operating profit by $4.2 million.



Amortization expense on intangible assets for the Aftermarket Segment was $3.8
million in the second quarter of 2022, compared to $3.5 million in the same
period of 2021. Depreciation expense on fixed assets for the Aftermarket Segment
was $3.6 million in the second quarter of 2022, compared to $3.3 million in the
same period of 2021.

Aftermarket Segment - Year to Date



Net sales of the Aftermarket Segment in the first six months of 2022 increased
23 percent, or $94.8 million, compared to the same period of 2021. Net sales of
components in the Aftermarket Segment were as follows for the six months ended
June 30:
(In thousands)                            2022           2021         

Change

Total Aftermarket Segment net sales $ 507,858 $ 413,074 23 %

Net sales of the Aftermarket Segment increased during the first six months of 2022 primarily due to selling price increases and sales from acquisitions.



Operating profit of the Aftermarket Segment was $52.5 million in the first six
months of 2022, a decrease of $0.3 million compared to the same period of 2021.
The operating profit margin of the Aftermarket Segment was 10.3 percent in the
first six months of 2022, compared to 12.8 percent in the same period in 2021,
and was negatively impacted by:

•Increases in material commodity costs and production supplies, which negatively
impacted operating profit by $52.0 million, primarily related to increased steel
and aluminum costs.

•Investments in marketing costs, information technology, and administrative structure of $14.5 million.

•Increases in transportation costs, primarily for third party freight, which reduced operating profit by $6.5 million.

•Increases in production overhead costs in order to meet sales demands, which negatively impacted operating profit by $5.5 million.

•The impact of fixed costs due to reduced organic volumes, which decreased operating profit by $3.5 million related to fixed selling, general, and administrative costs and $1.8 million related to fixed overhead costs.

•Increases in direct labor costs due to production volumes and a tight labor market, which reduced operating profit by $3.0 million.

•Additional amortization related to intangible assets from acquisitions completed in the last twelve months, which reduced operating profit by $1.2 million.

Partially offset by:

•Pricing changes to targeted products, resulting in an increase in operating profit of $67.9 million compared to the same period of 2021.

•Sales mix increase of higher margin products from the acquisition of Furrion and integration costs, which positively impacted operating profit by $8.1 million.



Amortization expense on intangible assets for the Aftermarket Segment was $7.6
million in first six months of 2022, compared to $6.4 million in the same period
of 2021. Depreciation expense on fixed assets for the Aftermarket Segment was
$7.1 million in first six months of 2022, compared to $5.8 million in the same
period of 2021.


                                       32

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LCI INDUSTRIES
                ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                  (Continued)
Income Taxes

The effective tax rates for the six months ended June 30, 2022 and 2021 were
26.3 percent and 25.0 percent, respectively. The effective tax rate for the six
months ended June 30, 2022 differed from the Federal statutory rate primarily
due to state taxes, foreign taxes, and non-deductible expenses, partially offset
by the recognition of excess tax benefits as a component of the provision for
income taxes, and Federal and Indiana research and development credits. The
increase in the effective tax rate for the six months ended June 30, 2022 as
compared to the same period in 2021 was primarily due to decreases in the excess
tax benefit related to the vesting of equity-based compensation awards and the
cash surrender value of life insurance plus a discrete tax adjustment in the
current year period for an acquisition-related tax election.

LIQUIDITY AND CAPITAL RESOURCES

Cash Flows



As of June 30, 2022, we had $55.0 million in cash and cash equivalents, and
$286.7 million of availability under our revolving credit facility under the
Credit Agreement. We paid off the full outstanding $50.0 million balance of our
Shelf-Loan Facility in March 2022. See Note 9 of the Notes to Condensed
Consolidated Financial Statements for a description of our credit facilities.

We maintain a level of liquidity sufficient to allow us to meet our cash needs
in the short term. Over the long term, we manage our cash and capital structure
to maximize shareholder return, maintain our financial condition, and maintain
flexibility for our future strategic investments. We continuously assess our
capital requirements, working capital needs, debt and leverage levels, debt and
lease maturity schedules, capital expenditure requirements, dividends, future
investments or acquisitions, and potential share repurchases. With elevated
demand continuing into the first six months of 2022, the industry has faced
challenges with supply chain constraints, rising material costs, and a tightened
labor market, especially in northern Indiana. To address these challenges, we
have strategically managed working capital, including intentionally building up
levels of certain inventory items to avoid future shortages, and have expanded
our production capacity. As we reinvest in the business, we also closely monitor
our liquidity. In the event additional needs for cash arise, or if we refinance
our existing debt, we may raise additional funds from a combination of sources,
including the potential issuance of debt or equity securities. Additional
financing might not be available on terms favorable to us, or at all.

We believe the availability under the revolving credit facility under the Credit
Agreement, along with our cash flows from operations, are adequate to finance
our anticipated cash requirements for the next twelve months.

The Condensed Consolidated Statements of Cash Flows reflect the following for the six months ended June 30:

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