10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended May 26, 2018
	or
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _________________ to _________________
	Commission File Number: 001-06403

WINNEBAGO INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

Iowa		42-0802678
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
P. O. Box 152, Forest City, Iowa		50436
(Address of principal executive offices)		(Zip Code)
	(641) 585-3535
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web Site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filerx	Accelerated filero	Non-accelerated filero
Smaller reporting companyo	Emerging growth companyo

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

The number of shares of common stock, par value $0.50 per share, outstanding June 18, 2018 was 31,529,354.

Winnebago Industries, Inc.

Table of Contents

Glossary		1
PART I	FINANCIAL INFORMATION	2
Item 1.	Condensed Consolidated Financial Statements (Unaudited)
	Condensed Consolidated Statements of Income and Comprehensive Income	2
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Cash Flows	4
	Condensed Consolidated Stockholders' Statement of Equity	5
	Notes to Condensed Consolidated Financial Statements	6
	Note 1: Basis of Presentation	6
	Note 2: Business Combination, Goodwill and Other Intangible Assets	7
	Note 3: Business Segments	10
	Note 4: Concentration Risk	11
	Note 5: Derivatives, Investments and Fair Value Measurements	11
	Note 6: Inventories	13
	Note 7: Property, Plant and Equipment	13
	Note 8: Warranty	13
	Note 9: Long-Term Debt	14
	Note 10: Employee and Retiree Benefits	15
	Note 11: Shareholders' Equity	15
	Note 12: Contingent Liabilities and Commitments	16
	Note 13: Income Taxes	17
	Note 14: Income Per Share	17
	Note 15: Accumulated Other Comprehensive Income (Loss)	18
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 6.	Exhibits	31
SIGNATURES		32

Glossary

The following terms and abbreviations appear in the text of this report and are defined as follows:

ABL	Credit Agreement dated as of November 8, 2016 and as amended on December 8, 2017 among Winnebago Industries, Inc., Winnebago of Indiana, LLC, Grand Design RV, LLC, the other loan parties thereto and JPMorgan Chase Bank, N.A. as Administrative Agent
AOCI	Accumulated Other Comprehensive Income (Loss)
ASC	Accounting Standards Codification
ASP	Average Sales Price
ASU	Accounting Standards Update
Blocker Corporation	SP GE VIII - B GD RV Blocker Corporation
Credit Agreement	Collective reference to the ABL and Term Loan
EBITDA	Earnings Before Interest, Tax, Depreciation and Amortization
ERP	Enterprise Resource Planning
FASB	Financial Accounting Standards Board
FIFO	First In, First Out
GAAP	Generally Accepted Accounting Principles
Grand Design	Grand Design RV, LLC
IRS	Internal Revenue Service
LIFO	Last In, First Out
LIBOR	London Interbank Offered Rate
Motorized	Business segment including motorhomes and other related manufactured products
NYSE	New York Stock Exchange
OCI	Other Comprehensive Income
Octavius	Octavius Corporation, a wholly-owned subsidiary of Winnebago Industries, Inc.
RV	Recreation Vehicle
RVIA	Recreation Vehicle Industry Association
SAB	Staff Accounting Bulletin
SEC	US Securities and Exchange Commission
Securities Purchase Agreement	Purchase Agreement dated as of November 8, 2016 between Winnebago Industries, Inc. and Grand Design RV, LLC
SERP	Supplemental Executive Retirement Plan
SG&A	Selling, General and Administrative Expenses
Stat Surveys	Statistical Surveys, Inc.
Tax Act	The Tax Cuts and Jobs Act
Term Loan	Loan Agreement dated as of November 8, 2016 and as amended on December 8, 2017 among Winnebago Industries, Inc., Octavius Corporation, the other loan parties thereto and JPMorgan Chase Bank, N.A. as Administrative Agent
Towable	Business segment including products that are not motorized and are towable by another vehicle
US	United States of America
XBRL	eXtensible Business Reporting Language

1

PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

Winnebago Industries, Inc.

Condensed Consolidated Statements of Income and Comprehensive Income

(Unaudited)

	Three Months Ended						Nine Months Ended
(In thousands, except per share data)	May 26, 2018			May 27, 2017			May 26, 2018			May 27, 2017
Net revenues	$	562,261		$	476,364		$	1,480,641		$	1,092,183
Cost of goods sold	476,747			405,560			1,264,635			943,188
Gross profit	85,514			70,804			216,006			148,995
SG&A:
Selling	13,100			10,141			37,443			25,564
General and administrative	21,404			15,194			57,088			37,640
Postretirement health care benefit income	—			—			—			(24,796		)
Transaction costs	800			450			850			6,374
Amortization of intangible assets	1,933			10,159			5,921			22,578
Total SG&A	37,237			35,944			101,302			67,360
Operating income	48,277			34,860			114,704			81,635
Interest expense	4,172			5,265			13,871			11,571
Non-operating income	(100		)	(54		)	(212		)	(137		)
Income before income taxes	44,205			29,649			101,045			70,201
Provision for income taxes	11,684			10,258			28,478			23,794
Net income	$	32,521		$	19,391		$	72,567		$	46,407
Income per common share:
Basic	$	1.03		$	0.61		$	2.30		$	1.53
Diluted	$	1.02		$	0.61		$	2.28		$	1.52
Weighted average common shares outstanding:
Basic	31,582			31,587			31,617			30,333
Diluted	31,753			31,691			31,825			30,448
Dividends paid per common share	$	0.10		$	0.10		$	0.30		$	0.30
Net income	$	32,521		$	19,391		$	72,567		$	46,407
Other comprehensive income (loss):
Amortization of prior service credit   (net of tax of $0, $0, $0 and $15,409)	—			—			—			(25,035		)
Amortization of net actuarial loss   (net of tax of $3, $3, $9 and $5,971)	7			6			20			9,702
Plan amendment   (net of tax of $0, $0, $0 and $2,402)	—			—			—			3,903
Change in fair value of interest rate swap   (net of tax of $42, $36, $877 and $306)	129			(58		)	2,046			(497		)
Total other comprehensive income (loss)	136			(52		)	2,066			(11,927		)
Comprehensive income	$	32,657		$	19,339		$	74,633		$	34,480

See notes to condensed consolidated financial statements.

2

Winnebago Industries, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except per share data)	May 26, 2018			August 26, 2017
Assets
Current assets:
Cash and cash equivalents	$	39,029		$	35,945
Receivables, less allowance for doubtful accounts ($172 and $183)	148,948			124,539
Inventories	177,378			142,265
Prepaid expenses and other assets	8,408			11,388
Total current assets	373,763			314,137
Property, plant and equipment, net	82,481			71,560
Other assets:
Goodwill	244,684			242,728
Other intangible assets, net	222,519			228,440
Investment in life insurance	28,130			27,418
Deferred income taxes	7,043			12,736
Other assets	7,090			5,493
Total assets	$	965,710		$	902,512
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	88,397		$	79,194
Current maturities of long-term debt	—			2,850
Income taxes payable	6,186			7,450
Accrued expenses:
Accrued compensation	27,989			24,546
Product warranties	37,444			30,805
Self-insurance	9,571			6,122
Promotional	6,523			6,560
Accrued interest	3,177			3,128
Other	11,119			6,503
Total current liabilities	190,406			167,158
Non-current liabilities:
Long-term debt, less current maturities	251,798			271,726
Unrecognized tax benefits	1,703			1,606
Deferred compensation benefits, net of current portion	15,732			19,270
Other	250			1,078
Total non-current liabilities	269,483			293,680
Stockholders' equity:
Capital stock common (par value $0.50; authorized 60,000 shares, issued 51,776 shares)	25,888			25,888
Additional paid-in capital	84,179			80,401
Retained earnings	742,148			679,138
Accumulated other comprehensive income (loss)	1,043			(1,023		)
Treasury stock, at cost (20,247 and 20,183 shares)	(347,437		)	(342,730		)
Total stockholders' equity	505,821			441,674
Total liabilities and stockholders' equity	$	965,710		$	902,512

See notes to condensed consolidated financial statements.

3

Winnebago Industries, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Nine Months Ended
(In thousands)	May 26, 2018			May 27, 2017
Operating activities:
Net income	$	72,567		$	46,407
Adjustments to reconcile net income to net cash provided byoperating activities:
Depreciation	6,679			5,287
Amortization of intangible assets	5,921			22,578
Amortization of debt issuance costs	1,222			889
LIFO expense	1,238			897
Stock-based compensation	4,983			2,206
Deferred income taxes	4,807			6,396
Deferred compensation expense and postretirement benefit income	852			(23,687		)
Other	(658		)	(946		)
Change in assets and liabilities:
Inventories	(36,351		)	(7,497		)
Receivables, prepaid and other assets	(21,275		)	(21,336		)
Income taxes and unrecognized tax benefits	(1,081		)	5,806
Accounts payable and accrued expenses	24,506			32,778
Postretirement and deferred compensation benefits	(2,398		)	(2,428		)
Net cash provided by operating activities	61,012			67,350
Investing activities:
Purchases of property and equipment	(18,123		)	(9,740		)
Proceeds from the sale of property	316			219
Acquisition of business, net of cash acquired	—			(394,694		)
Other	(83		)	684
Net cash used in investing activities	(17,890		)	(403,531		)
Financing activities:
Payments for repurchases of common stock	(6,481		)	(1,367		)
Payments of cash dividends	(9,557		)	(9,554		)
Payments of debt issuance costs	—			(11,020		)
Borrowings on credit agreement	19,700			366,400
Repayments of credit agreement	(43,700		)	(69,400		)
Other	—			(92		)
Net cash (used in) provided by financing activities	(40,038		)	274,967
Net increase (decrease) in cash and cash equivalents	3,084			(61,214		)
Cash and cash equivalents at beginning of period	35,945			85,583
Cash and cash equivalents at end of period	$	39,029		$	24,369
Supplemental cash flow disclosure:
Income taxes paid, net	$	24,833		$	11,811
Interest paid	$	11,935		$	7,288
Non-cash transactions:
Issuance of Winnebago common stock for acquisition of business	$	—		$	124,066
Capital expenditures in accounts payable	$	607		$	279
Accrued dividend	$	—		$	3,184

See notes to condensed consolidated financial statements.

4

Winnebago Industries, Inc.

Condensed Consolidated Stockholders' Statement of Equity

(Unaudited)

	Three Months Ended						Nine Months Ended
(In thousands)	May 26, 2018			May 27, 2017			May 26, 2018			May 27, 2017
Common stock and paid-in capital
Balance, beginning of period	$	106,609		$	105,093		$	106,289		$	58,605
Issuance of common stock	(57		)	(2		)	(1,625		)	44,981
Stock-based compensation, net of forfeitures	3,515			641			5,403			2,146
Balance, end of period	110,067			105,732			110,067			105,732
Retained earnings
Balance, beginning of period	712,809			641,192			679,138			620,546
Net income	32,521			19,391			72,567			46,407
Common stock dividends	(3,182		)	(6,368		)	(9,557		)	(12,738		)
Balance, end of period	742,148			654,215			742,148			654,215
Accumulated comprehensive income (loss)
Balance, beginning of period	907			(900		)	(1,023		)	10,975
Other comprehensive income (loss)	136			(52		)	2,066			(11,927		)
Balance, end of period	1,043			(952		)	1,043			(952		)
Treasury stock
Balance, beginning of period	(342,516		)	(342,770		)	(342,730		)	(421,767		)
Issuance of common stock	57			3			1,712			80,329
Stock-based compensation, net of forfeitures	25			24			62			60
Payments for the purchase of common stock	(5,003		)	(2		)	(6,481		)	(1,367		)
Balance, end of period	(347,437		)	(342,745		)	(347,437		)	(342,745		)
Total stockholders' equity	$	505,821		$	416,250		$	505,821		$	416,250

See notes to condensed consolidated financial statements.

5

Winnebago Industries, Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1: Basis of Presentation

The "Company," "we," "our" and "us" are used interchangeably to refer to Winnebago Industries, Inc. and its wholly-owned subsidiaries, as appropriate in the context.

We were incorporated under the laws of the state of Iowa on February 12, 1958 and adopted our present name on February 28, 1961. Our primary offices are located at 605 West Crystal Lake Road in Forest City, Iowa. Our telephone number is (641) 585-3535; our website is www.winnebagoind.com. Our common stock trades on the NYSE under the symbol WGO.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In our opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation as prescribed by GAAP.

The consolidated statements of income and comprehensive income for the third quarter and first nine months of Fiscal 2018 are not necessarily indicative of the results to be expected for the full year. These interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K for the fiscal year ended August 26, 2017.

Fiscal Period

We follow a 52-/53-week fiscal year, ending the last Saturday in August. Both Fiscal 2018 and Fiscal 2017 are 52-week years.

Recently Adopted Accounting Pronouncements

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for the related income taxes, forfeitures, statutory tax withholding requirements and classification in the statement of cash flows. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016 (our Fiscal 2018), including interim periods within those annual reporting periods. We adopted this ASU in the interim quarterly reporting period ended November 25, 2017. Amendments requiring recognition of excess tax benefits and tax deficiencies in the statements of income and comprehensive income resulted in $0.6 million of excess tax benefits recorded as a reduction of income tax expense upon adoption for the three months ended November 25, 2017. The reduction in income tax expense also reduced the effective tax rate by 2.2% and added $0.02 to income per share for the quarter ended November 25, 2017. Amendments related to the presentation of excess tax benefits and employee taxes paid when an employer withholds shares to meet the minimum statutory withholding requirement required no change to the statement of cash flows. There were no material impacts on the consolidated financial statements of the Company, which adopted a policy of accounting for forfeitures when they occur.

In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330),which requires inventory measured using any method other than LIFO or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Under this ASU, subsequent measurement of inventory using the LIFO and retail inventory method is unchanged. ASU 2015-11 is effective prospectively for fiscal years beginning after December 15, 2016 (our Fiscal 2018), including interim periods within those annual reporting periods. We adopted this ASU on August 27, 2017, and there was no material impact on our consolidated financial statements.

New Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which establishes a comprehensive new model for the recognition of revenue from contracts with customers. This model is based on the core principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities have the option of using either retrospective transition or a modified approach in applying the new standard. The standard is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2017 (our Fiscal 2019). Early adoption is permitted.

We have performed an evaluation that included a review of representative contracts with key customers and the performance obligations contained therein, as well as a review of our commercial terms and practices across each of our segments. Based on our preliminary review, we do not expect adoption to have a material impact on our consolidated financial statements but further work to substantiate this preliminary conclusion is underway. We continue to assess the impact of the standard on our disclosures and our internal controls over financial reporting.

6

We plan to adopt this standard in the first quarter of our Fiscal 2019. Providing we ultimately conclude that the impacts of adoption are immaterial, we would expect to use the modified retrospective method. Under this method, we would recognize the cumulative effect of the changes in retained earnings at the date of adoption, but would not restate prior periods.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. The new standard must be adopted on a modified retrospective basis for fiscal years beginning after December 15, 2018 (our Fiscal 2020), including interim periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230), which provides guidance for eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective retrospectively for annual reporting periods beginning after December 15, 2017 (our Fiscal 2019), including interim periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and do not expect adoption to have a material impact.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), which improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. ASU 2017-12 is effective for annual reporting periods beginning after December 15, 2018 (our Fiscal 2020), including interim periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220), which allows for a reclassification of stranded tax effects from the Tax Act from AOCI to retained earnings. This ASU is effective for fiscal years beginning after December 15, 2018 (our Fiscal 2020). We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and do not expect adoption to have a material impact.

Subsequent Event

On June 4, 2018, we acquired 100% of the ownership interests of Chris-Craft, a privately-owned company based in Sarasota Florida.  Chris-Craft manufactures and sells premium quality boats in the recreational powerboat industry through an established global network of independent authorized dealers.

Note 2: Business Combination, Goodwill and Other Intangible Assets

We acquired 100% of the ownership interests of Grand Design on November 8, 2016 in accordance with the Securities Purchase Agreement for an aggregate purchase price of $520.5 million, which was paid in cash and Winnebago shares as follows:

(In thousands, except shares and per share data)	November 8, 2016
Cash	$	396,442
Winnebago shares: 4,586,555 at $27.05 per share	124,066
Total	$	520,508

The cash portion was funded from cash on hand and borrowings under our ABL and Term Loan agreements. The stock was valued using our closing share price on the date of closing.

The acquisition has been accounted for in accordance with ASC 805, Business Combinations, using the acquisition method of accounting. Under the acquisition method of accounting, the total purchase price was allocated to the tangible and intangible assets of Grand Design acquired, based on their fair values at the date of the acquisition. The purchase price allocation was finalized during the first quarter of Fiscal 2018.

7

The final allocation of the purchase price to assets acquired and liabilities assumed was as follows:

(In thousands)	November 8, 2016
Cash	$	1,748
Accounts receivable	32,834
Inventories	15,300
Prepaid expenses and other assets	3,037
Property, plant and equipment	8,998
Goodwill	243,456
Other intangible assets	253,100
Total assets acquired	558,473
Accounts payable	11,163
Accrued compensation	3,615
Product warranties	12,904
Promotional	3,976
Other	1,496
Deferred tax liabilities	4,811
Total liabilities assumed	37,965
Total purchase price	$	520,508

The acquisition of 100% of the ownership interests of Grand Design occurred in two steps: (1) direct purchase of 89.34% of Grand Design member interests and (2) simultaneous acquisition of the remaining 10.66% of Grand Design member interests via the purchase of 100% of the shares of Blocker Corporation, which held the remaining 10.66% of the Grand Design member interests.  We agreed to acquire Blocker Corporation as part of the Securities Purchase Agreement, and we did not receive a step-up in basis for 10.66% of the Grand Design assets.  As a result, we established certain deferred tax liabilities on the opening balance sheet that relate to Blocker Corporation.

The goodwill recognized is primarily attributable to the value of the workforce, reputation of founders, customer and dealer growth opportunities and expected synergies. Key areas of cost synergies include increased purchasing power for raw materials and supply chain consolidation. Goodwill is expected to be mostly deductible for tax purposes. As of May 26, 2018, goodwill increased $2.0 million as compared to the end of Fiscal 2017. The increase is due to the final purchase price adjustment made for taxes in the first quarter of Fiscal 2018.

The allocation of the purchase price to the net assets acquired and liabilities assumed resulted in the recognition of intangible assets with fair value on the closing date of November 8, 2016 and amortization accumulated from the closing date through May 26, 2018 as follows:

		May 26, 2018					August 26, 2017
(In thousands)	Weighted Average Life-Years	Cost			Accumulated Amortization		Cost			Accumulated Amortization
Trade name	Indefinite	$	148,000		$	—	$	148,000		$	—
Dealer network	12.0	80,500			10,365		80,500			5,348
Backlog	0.5	18,000			18,000		18,000			18,000
Non-compete agreements	4.0	4,600			1,836		4,600			1,116
Leasehold interest-favorable	8.1	2,000			380		2,000			196
Total		253,100			$	30,581	253,100			$	24,660
Accumulated amortization		(30,581		)			(24,660		)
Net book value of intangible assets		$	222,519				$	228,440

We used the income approach to value certain intangible assets.  Under the income approach, an intangible asset’s fair value is equal to the present value of future economic benefits to be derived from ownership of the asset. We used the income approach known as the relief from royalty method to value the trade name. The relief from royalty method is based on the hypothetical royalty stream that would be received if we were to license the trade name and is based on expected revenues from such license. The fair

8

value of the dealer network was estimated using an income approach known as the cost to recreate/cost savings method. This method uses the replacement of the asset as an indicator of the fair value of the asset. The useful life of the intangible assets was determined considering the period of expected cash flows used to measure the fair value of the intangible assets adjusted as appropriate for the entity-specific factors, including legal, regulatory, contractual, competitive, economic or other factors that may limit the useful life of the intangible assets.

For the three months ended May 26, 2018 and May 27, 2017, amortization of intangible assets charged to operations was$1.9 millionand$10.2 million, respectively.For the nine months ended May 26, 2018 and May 27, 2017, amortization of intangible assets charged to operations was$5.9 millionand$22.6 million, respectively. The weighted average remaining amortization period for intangible assets as of May 26, 2018 was approximately10.3years. Remaining estimated aggregate annual amortization expense by fiscal year is as follows:

(In thousands)	Amount
Remainder of 2018	$	1,933
2019	7,733
2020	7,733
2021	7,733
2022	7,106
Thereafter	42,281

Within the Towable segment, the results of Grand Design's operations have been included in our consolidated financial statements from the close of the acquisition. The following table provides net revenues and operating income (which includes amortization expense) from the Grand Design business included in our consolidated results during the nine months ended May 26, 2018 and May 27, 2017 following the November 8, 2016 closing date:

	Nine Months Ended
(In thousands)	May 26, 2018		May 27, 2017
Net revenues	$	719,030	$	366,309
Operating income	91,452		27,083

Unaudited pro forma information has been prepared as if the acquisition had taken place on August 30, 2015. The unaudited pro forma information is not necessarily indicative of the results that we would have achieved had the transaction actually taken place on August 30, 2015, and the unaudited pro forma information does not purport to be indicative of future financial operating results. The unaudited pro forma condensed consolidated financial information does not reflect any operating efficiencies and cost savings that may be realized from the integration of the acquisition. Unaudited pro forma information is as follows:

	Nine Months Ended
(In thousands, except per share data)	May 26, 2018		May 27, 2017(1)
Net revenues	$	1,480,641	$	1,187,849
Net income	72,675		66,009
Income per share - basic	2.30		2.09
Income per share - diluted	2.28		2.08

(1) Net income and income per share include the increased benefit of $16.3 million, net of tax, associated with the termination of the postretirement health care plan in Fiscal 2017.

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The unaudited pro forma data above includes the following significant non-recurring adjustments made to account for certain costs, which would have changed if the acquisition of Grand Design had been completed on August 30, 2015:

	Nine Months Ended
(In thousands)	May 26, 2018			May 27, 2017(1)
Amortization of intangibles (1 year or less useful life)	$	(122	)	$	(18,601	)
Increase in amortization of intangibles	—			1,551
Expenses related to business combination (transaction costs)	(50		)	(6,432		)
Interest to reflect new debt structure	—			3,672
Taxes related to the adjustments to the pro forma data and to the income of Grand Design	64			11,513

(1) Pro forma transaction costs include $0.1 million incurred by Grand Design prior to acquisition.

We incurred approximately $6.9 million of acquisition-related costs to date, of which $0.1 million and $6.4 million were expensed during the nine months ended May 26, 2018 and May 27, 2017, respectively.

Note 3: Business Segments

We report segment information based on the "management" approach defined in ASC 280, Segment Reporting. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments.

We have two reportable segments: (1) Motorized products and services and (2) Towable products and services. The Motorized segment includes all products that include a motorized chassis as well as other related manufactured products. The Towable segment includes all products that are not motorized and are generally towed by another vehicle.

We organize our business reporting on a product basis. Each reportable segment is managed separately to better align to our customers, distribution partners and the unique market dynamics of the product groups. We aggregate two operating segments into the Towable reporting segment based upon their similar products, customers, distribution methods, production processes and economic characteristics. The accounting policies of both reportable segments are the same and described in Note 1: Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the fiscal year ended August 26, 2017.

Subsequent to the acquisition of Grand Design in Fiscal 2017, management re-evaluated the manner in which corporate expenses were allocated to the reportable segments. A new corporate allocation policy was adopted in the first quarter of Fiscal 2018 that identifies shared costs and allocates them to the operating segments based on a cost driver most appropriate for the type of cost being allocated. For example, certain costs were allocated based on the financial size of the operating segment, while other costs, where appropriate, were allocated based on the headcount in the operating segments since headcount was deemed the appropriate driver for those types of expenses. Prior year segment information has been restated to conform to the current reporting segment presentation. All corporate expenses were allocated to the operating segments. Assets presented by reportable segment exclude certain corporate assets that cannot reasonably be allocated to the reportable segments. These unallocated corporate assets include cash and deferred tax assets.

We evaluate the performance of our reportable segments based on Adjusted EBITDA after corporate allocations. EBITDA is defined as net income before interest expense, provision for income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation and amortization expense, and other adjustments made in order to present comparable results from period to period. We have included this non-GAAP performance measure as a comparable measure to illustrate the effect of non-recurring transactions occurring during the quarter and improve comparability of our results from period to period.  We believe EBITDA and Adjusted EBITDA provide meaningful supplemental information about our operating performance because each measure excludes amounts that we do not consider part of our core operating results when assessing our performance. Examples of items excluded from Adjusted EBITDA include the postretirement health care benefit income from terminating the plan and transaction costs related to our acquisition of Grand Design. These types of adjustments are also specified in the definition of certain measures required under the terms of our Credit Agreement.

Management uses these non-GAAP financial measures (a) to evaluate our historical and prospective financial performance and trends as well as its performance relative to competitors and peers; (b) to measure operational profitability on a consistent basis; (c) in presentations to the members of our board of directors to enable our board of directors to have the same measurement basis of operating performance as is used by management in its assessments of performance and in forecasting and budgeting for our company; (d) to evaluate potential acquisitions; and, (e) to ensure compliance with covenants and restricted activities under the terms of our Credit Agreement. We believe these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties to evaluate companies in our industry.

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The following table shows information by reporting segment:

	Three Months Ended				Nine Months Ended
(In thousands)	May 26, 2018		May 27, 2017		May 26, 2018		May 27, 2017
Net revenues
Motorized	$	249,245	$	241,670	$	641,602	$	635,732
Towable	313,016		234,694		839,039		456,451
Consolidated	$	562,261	$	476,364	$	1,480,641	$	1,092,183
Adjusted EBITDA
Motorized	$	9,319	$	14,567	$	16,518	$	36,521
Towable	44,042		32,761		111,636		54,557
Consolidated	$	53,361	$	47,328	$	128,154	$	91,078
Capital expenditures
Motorized	$	2,643	$	1,527	$	7,383	$	6,626
Towable	3,805		1,275		10,740		3,114
Consolidated	$	6,448	$	2,802	$	18,123	$	9,740
Total assets
Motorized	$	301,667	$	275,673	$	301,667	$	275,673
Towable	613,162		572,977		613,162		572,977
Unallocated corporate assets	50,881		41,701		50,881		41,701
Consolidated	$	965,710	$	890,351	$	965,710	$	890,351

Reconciliation of net income to consolidated Adjusted EBITDA:

	Three Months Ended						Nine Months Ended
(In thousands)	May 26, 2018			May 27, 2017			May 26, 2018			May 27, 2017
Net income	$	32,521		$	19,391		$	72,567		$	46,407
Interest expense	4,172			5,265			13,871			11,571
Provision for income taxes	11,684			10,258			28,478			23,794
Depreciation	2,351			1,859			6,679			5,287
Amortization of intangible assets	1,933			10,159			5,921			22,578
EBITDA	52,661			46,932			127,516			109,637
Postretirement health care benefit income	—			—			—			(24,796		)
Transaction costs	800			450			850			6,374
Non-operating income	(100		)	(54		)	(212		)	(137		)
Adjusted EBITDA	$	53,361		$	47,328		$	128,154		$	91,078

Note 4: Concentration Risk

During the first nine months of Fiscal 2018, no dealer organization accounted for 10% or more of our consolidated revenues. During the first nine months of Fiscal 2017, La Mesa RV Center, Inc. accounted for 10.9% of our consolidated net revenue and FreedomRoads, LLC accounted for 10.6% of our consolidated net revenues. These dealers declined on a relative basis due to the growth of other dealers and a shift in dealer mix attributable to the addition of Grand Design revenue.

Note 5: Derivatives, Investments and Fair Value Measurements

Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

We account for fair value measurements in accordance with ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measurement and expands disclosure about fair value measurement. The fair value

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hierarchy requires the use of observable market data when available. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.

The following tables set forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at May 26, 2018 and August 26, 2017 according to the valuation techniques we used to determine their fair values:

			Fair Value Measurements Using Inputs Considered As
(In thousands)	Fair Value at May 26, 2018		Level 1 Quoted Prices in Active Markets for Identical Assets		Level 2 Significant Other Observable Inputs		Level 3 Significant Unobservable Inputs
Assets that fund deferred compensation:
Domestic equity funds	$	1,474	$	1,436	$	38	$	—
International equity funds	161		142		19		—
Fixed income funds	150		66		84		—
Interest rate swap contract	2,095		—		2,095		—
Total assets at fair value	$	3,880	$	1,644	$	2,236	$	—

				Fair Value Measurements Using Inputs Considered As
(In thousands)	Fair Value at August 26, 2017			Level 1 Quoted Prices in Active Markets for Identical Assets		Level 2 Significant Other Observable Inputs			Level 3 Significant Unobservable Inputs
Assets that fund deferred compensation:
Domestic equity funds	$	1,708		$	1,671	$	37		$	—
International equity funds	174			157		17			—
Fixed income funds	259			170		89			—
Interest rate swap contract	(828		)	—		(828		)	—
Total assets (liabilities) at fair value	$	1,313		$	1,998	$	(685	)	$	—

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Assets that fund deferred compensation

Our assets that fund deferred compensation are marketable equity securities measured at fair value using quoted market prices and primarily consist of equity-based mutual funds. The majority of securities are classified as Level 1 as they are traded in an active market for which closing stock prices are readily available. These securities fund the Executive Share Option Plan and the Executive Deferred Compensation Plan (see Note 10). The proportion of the assets that will fund options that expire within a year are included in prepaid expenses and other current assets in the accompanying consolidated balance sheets. The remaining assets are classified as non-current and are included in other assets.

Interest Rate Swap Contract

Under terms of our Credit Agreement (see Note 9), we were previously required to hedge a portion of the floating interest rate exposure. In accordance with that requirement, on January 23, 2017, we entered into an interest swap contract, which effectively fixed our interest rate for our Term Loan for a notional amount that reduces each December during the swap contract. As of May 26, 2018, we had $170.0 million of our Term Loan fixed at an interest rate of 5.32%. As of August 26, 2017, we had $200.0 million of our Term Loan fixed at an interest rate of 6.32%.

The fair value of the interest rate swap based on a Level 2 valuation was an asset of $2.1 million as of May 26, 2018. The fair value is classified as Level 2 as it is corroborated based on observable market data. This amount is classified as non-current and included in other assets on the consolidated balance sheets. The change in value in the third quarter was predominately recorded to accumulated other comprehensive income on the consolidated balance sheets since the interest rate swap has been designated for hedge accounting.

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Assets and Liabilities that are measured at Fair Value on a Non-recurring Basis

Our non-financial assets, which include goodwill, intangible assets, and property, plant and equipment, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur, or if an annual impairment test is required, we must evaluate the non-financial asset for impairment. If an impairment did occur, the asset is required to be recorded at the estimated fair value. During the first nine months of Fiscal 2018 and Fiscal 2017, no impairments were recorded for non-financial assets.

The carrying value of our debt as of May 26, 2018 approximates fair value as interest is at variable market rates.

Note 6: Inventories

Inventories consist of the following:

(In thousands)	May 26, 2018			August 26, 2017
Finished goods	$	34,954		$	16,947
Work-in-process	60,206			60,818
Raw materials	118,875			99,919
Total	214,035			177,684
LIFO reserve	(36,657		)	(35,419		)
Total inventories	$	177,378		$	142,265

The above value of inventories, before reduction for the LIFO reserve, approximates replacement cost at the respective dates. Of the $214.0 million and $177.7 million inventory at May 26, 2018 and August 26, 2017, respectively, $179.1 million and $149.8 million is valued on a LIFO basis. The remaining inventories of $34.9 million and $27.9 million at May 26, 2018 and August 26, 2017, respectively, are valued on a FIFO basis.

Note 7: Property, Plant and Equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and consists of the following:

(In thousands)	May 26, 2018			August 26, 2017
Land	$	4,647		$	3,914
Buildings and building improvements	82,780			73,831
Machinery and equipment	101,525			99,952
Software	22,078			17,844
Transportation	8,543			8,993
Total property, plant and equipment, gross	219,573			204,534
Less accumulated depreciation	(137,092		)	(132,974		)
Total property, plant and equipment, net	$	82,481		$	71,560

Note 8: Warranty

We provide certain service and warranty on our products. From time to time, we also voluntarily incur costs for certain warranty-type expenses occurring after the normal warranty period to help protect the reputation of our products and the goodwill of our customers. Warranty expense is affected by dealership labor rates, the cost of parts and the frequency of claims.  Estimated costs related to product warranty are accrued at the time of sale and are based upon historical warranty and service claims experience. Adjustments are made to accruals as claim data and cost experience becomes available.

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Changes in our product warranty liability are as follows:

	Three Months Ended						Nine Months Ended
(In thousands)	May 26, 2018			May 27, 2017			May 26, 2018			May 27, 2017
Balance at beginning of period	$	34,988		$	25,030		$	30,805		$	12,412
Provision	11,645			10,202			31,881			21,832
Claims paid	(9,189		)	(7,176		)	(25,242		)	(19,092		)
Acquisition of Grand Design	—			—			—			12,904
Balance at end of period	$	37,444		$	28,056		$	37,444		$	28,056

Note 9: Long-Term Debt

The components of long-term debt are as follows:

(In thousands)	May 26, 2018			August 26, 2017
ABL	$	—		$	—
Term Loan	260,000			284,000
Gross long-term debt, excluding issuance costs	260,000			284,000
Less: debt issuance cost, net	(8,202		)	(9,424		)
Long-term debt, net of issuance costs	251,798			274,576
Less: current maturities	—			(2,850		)
Long-term debt, less current maturities	$	251,798		$	271,726

On November 8, 2016, we entered into a $125.0 million ABL and a $300.0 million Term Loan with JPMorgan Chase Bank, N.A. ("Credit Agreement"). On December 8, 2017, we amended our Credit Agreement, which decreased the interest rate spread by 1.0% on the Term Loan and 0.25% on the ABL. Prior to this amendment, $19.7 million was drawn on the ABL and used to make a voluntary prepayment on our Term Loan.

Under the ABL, we have a five-year credit facility on a revolving basis, subject to availability under a borrowing base consisting of eligible accounts receivable and eligible inventory. The ABL is available for issuance of letters of credit to a specified limit of $10.0 million. We pay a commitment fee in the range of 0.25% - 0.375% on the amount of facility available, but unused. We can elect to base the interest rate on various base rates plus specific spreads depending on the amount of borrowings outstanding. We currently pay interest on ABL borrowings at a floating rate based upon LIBOR plus 1.25%.

Under the Term Loan, we can elect to base the interest rate on various base rates plus specific spreads. The interest rate as of May 26, 2018 was based on LIBOR plus 3.5%. The Term Loan agreement currently requires quarterly payments in the amount of $3.75 million with all amounts then outstanding due on November 8, 2023. We have made voluntary prepayments that have extended the opportunity to defer quarterly payments, at our option, until December 31, 2019. There are mandatory prepayments for proceeds of new debt, sale of significant assets or subsidiaries, and excess cash flow as those terms are defined in the Term Loan. Incremental term loans of up to $125.0 million are available if certain financial ratios and other conditions are met.

The Credit Agreement contains certain financial covenants. As of May 26, 2018, we are in compliance with all financial covenants of the Credit Agreement.

The ABL and Term Loan are guaranteed by Winnebago Industries, Inc. and all material direct and indirect domestic subsidiaries, and are secured by a security interest in substantially all of our assets, except minor excluded assets.

Unamortized debt issuance costs of $0.6 million related to the voluntary prepayment on the Term Loan was expensed in the nine months ended May 26, 2018.

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Aggregate contractual maturities of debt in future fiscal years are as follows as of May 26, 2018:

(In thousands)	Amount
2018	$	—
2019	—
2020	10,250
2021	15,000
2022	15,000
Thereafter	219,750
Total debt	$	260,000

Note 10: Employee and Retiree Benefits

Deferred compensation liabilities are as follows:

(In thousands)	May 26, 2018			August 26, 2017
Non-qualified deferred compensation	$	15,244		$	16,476
Executive share option plan liability	1,256			1,498
SERP benefit liability	2,293			2,534
Executive deferred compensation	422			447
Officer stock-based compensation	1,096			1,664
Total deferred compensation	20,311			22,619
Less current portion	(4,579		)	(3,349		)
Long-term deferred compensation	$	15,732		$	19,270

Postretirement Health Care Benefits

Historically, we provided certain health care and other benefits for retired employees hired before April 1, 2001, who had fulfilled eligibility requirements at age 55 with 15 years of continuous service. During the first quarter of Fiscal 2017, we announced the termination of the remaining postretirement health care benefits to all participants. As of January 1, 2017, postretirement health care benefits were discontinued.

Net periodic postretirement benefit income consisted of the following components:

	Three Months Ended				Nine Months Ended
(In thousands)	May 26, 2018		May 27, 2017		May 26, 2018		May 27, 2017
Interest cost	$	—	$	—	$	—	$	29
Service cost	—		—		—		16
Amortization of prior service benefit	—		—		—		(40,444		)
Amortization of net actuarial loss	—		—		—		15,648
Net periodic postretirement benefit income	$	—	$	—	$	—	$	(24,751	)
Payments for postretirement health care	$	—	$	—	$	—	$	68

Note 11: Shareholders' Equity

Stock-Based Compensation

We have a 2014 Omnibus Equity, Performance Award, and Incentive Compensation Plan (as amended, the "Plan") in place as approved by shareholders, which allows us to grant or issue non-qualified stock options, incentive stock options, share awards, and other equity compensation to key employees and to non-employee directors.

On October 18, 2017 and October 11, 2016, the Human Resources Committee of the Board of Directors granted an aggregate of 62,660 and 97,600 shares, respectively, of restricted common stock to our key employees and non-employee directors under the Plan. The value of each restricted stock award is determined using the intrinsic value method, which, in this case, is based on the number of shares granted and the closing price of our common stock on the date of grant.

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Stock-based compensation expense was $1.4 million and $0.7 million during the third quarters of Fiscal 2018 and 2017, respectively. Stock-based compensation expense was $5.0 million and $2.2 million during the first nine months of Fiscal 2018 and 2017, respectively. Compensation expense is recognized over the requisite service period of the award.

Dividends

On October 18, 2017, the Board of Directors declared a quarterly cash dividend of $0.10 per share of common stock, which was paid on November 29, 2017 to shareholders of record at the close of business on November 15, 2017.

On December 13, 2017, the Board of Directors declared a quarterly cash dividend of $0.10 per share of common stock, which was paid on January 24, 2018 to shareholders of record at the close of business on January 10, 2018.

On March 14, 2018, the Board of Directors declared a quarterly cash dividend of $0.10 per share of common stock, which was paid on April 25, 2018 to shareholders of record at the close of business on April 11, 2018.

On May 23, 2018, the Board of Directors declared a quarterly cash dividend of $0.10 per share of common stock, payable on July 5, 2018 to shareholders of record at the close of business on June 20, 2018.

Share Registration

As a result of the acquisition of Grand Design, we agreed to register the 4,586,555 shares of common stock issued to the Summit Sellers and the RDB Sellers pursuant to the terms of a registration rights agreement. Under the registration rights agreement, we filed a shelf registration statement on January 20, 2017 to register these shares for resale. On April 11, 2017, pursuant to an underwriting agreement dated as of April 5, 2017, by and among the Company, the Summit Sellers and Morgan Stanley & Co., LLC, the Summit Sellers sold 2,293,277 shares of common stock in an underwritten block trade.

Note 12: Contingent Liabilities and Commitments

Repurchase Commitments

Generally, manufacturers in the RV industry enter into repurchase agreements with lending institutions that have provided wholesale floorplan financing to dealers. Most dealers' RVs are financed on a "floorplan" basis under which a bank or finance company lends the dealer all, or substantially all, of the purchase price, collateralized by a security interest in the RVs purchased.

Our repurchase agreements provide that, in the event of default by the dealer on the agreement to pay the lending institution, we will repurchase the financed merchandise. The terms of these agreements, which generally can last up to 18 months, provide that our liability will be the lesser of remaining principal owed by the dealer to the lending institution, or dealer invoice less periodic reductions based on the time since the date of the original invoice. In certain instances, we also repurchase inventory from our dealers due to state law or regulatory requirements that govern voluntary or involuntary relationship terminations. Although laws vary from state to state, some states have laws in place that require manufacturers of RVs to repurchase current inventory if a dealership exits the business. Our total contingent liability on all repurchase agreements was approximately $920.1 million and $713.1 million at May 26, 2018 and August 26, 2017, respectively, with the increase attributed primarily due to growth in the Towable segment.

Our risk of loss related to these repurchase commitments is significantly reduced by the potential resale value of any products that are subject to repurchase and is spread over numerous dealers and lenders. The aggregate contingent liability related to our repurchase agreements represents all financed dealer inventory at the period reporting date subject to a repurchase agreement, net of the greater of periodic reductions per the agreement or dealer principal payments. Based on the repurchase exposure as previously described and our historical loss experience, we established an associated loss reserve. Our accrued losses on repurchases were $1.0 million as of May 26, 2018 and $0.7 million as of August 26, 2017 and are included in accrued expenses - other on the condensed consolidated balance sheets. Repurchase risk is affected by the credit worthiness of our dealer network, and we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions used to establish the loss reserve for repurchase commitments.

There was no material activity related to repurchase agreements during the three and nine months ended May 26, 2018 and May 27, 2017.

Litigation

We are involved in various legal proceedings that are ordinary and routine litigation incidental to our business, some of which are covered in whole or in part by insurance. While we believe the ultimate disposition of litigation will not have material adverse effect on our financial position, results of operations or liquidity, there exists the possibility that such litigation may have an impact on our results for a particular reporting period in which litigation effects become probable and reasonably estimable.  Though we do not believe there is a reasonable likelihood that there will be a material change related to these matters, litigation is subject to inherent uncertainties and management’s view of these matters may change in the future.  

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Note 13: Income Taxes

We account for income taxes under ASC 740, Income Taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns.

Our effective tax rate decreased from 33.9% for the nine months ended May 27, 2017 to 28.2% for the nine months ended May 26, 2018 due primarily to the enactment of the Tax Act on December 22, 2017. One of the most significant provisions of this legislation was a reduction in the Federal corporate income tax rate from 35% to 21% effective beginning January 1, 2018. With our fiscal year ending on August 25, 2018, our blended Federal statutory tax rate for Fiscal 2018 is expected to be approximately 26%. Most of the remaining significant provisions of the Tax Act take effect in our Fiscal 2019.

In December 2017, the SEC issued SAB 118, which has since been codified by the release of ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, to provide guidance for companies that allows for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts under ASC 740. In accordance with this guidance, a company must reflect the income tax effect of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company's accounting for certain income tax effects of the Tax Act is incomplete, but it is able to determine a reasonable estimate, the company must record a provisional estimate in the financial statements.

In accordance with ASC 740, as of the date of enactment, and during the three months ended February 24, 2018, we recorded a non-cash provisional estimate of $1.4 million to income tax expense and a corresponding reduction in the net deferred tax asset as a result of revaluing all deferred tax assets and liabilities at the newly enacted Federal corporate income tax rate. For the three months ended May 26, 2018, we recorded an additional non-cash provisional estimate of $0.2 million to income tax expense and a corresponding reduction in the net deferred tax asset based on revisions to the provisional estimate.

We are still analyzing certain aspects of the Tax Act and refining our calculations, which could potentially affect the measurement of our deferred tax balances and cause us to revise our estimate in future periods. These impacts may be material, due to, among other things, further refinement of our calculations, changes in interpretations of the Tax Act, or issuance of additional guidance by the relevant tax authorities.

We file a US Federal tax return, as well as returns in various international and state jurisdictions. Although certain years are no longer subject to examination by the IRS and various state taxing authorities, net operating loss carryforwards generated in those years may still be adjusted upon examination by the IRS or state taxing authorities. As of May 26, 2018, our Federal returns from Fiscal 2014 to present continue to be subject to review by the IRS. With few exceptions, the state returns from Fiscal 2013 to present continue to be subject to review by the state taxing jurisdictions.

As of May 26, 2018, our unrecognized tax benefits were $1.7 million, including accrued interest and penalties of $0.5 million. If we were to prevail on all unrecognized tax benefits recorded, $1.5 million of the $1.7 million would benefit the overall effective tax rate. It is our policy to recognize interest and penalties accrued relative to unrecognized tax benefits as tax expense. We do not believe that there will be a significant change in the total amount of unrecognized tax benefits within the next twelve months.

Note 14: Income Per Share

The following table reflects the calculation of basic and diluted income per share:

	Three Months Ended				Nine Months Ended
(In thousands, except per share data)	May 26, 2018		May 27, 2017		May 26, 2018		May 27, 2017
Income per share - basic
Net income	$	32,521	$	19,391	$	72,567	$	46,407
Weighted average shares outstanding	31,582		31,587		31,617		30,333
Net income per share - basic	$	1.03	$	0.61	$	2.30	$	1.53
Income per share - diluted
Net income	$	32,521	$	19,391	$	72,567	$	46,407
Weighted average shares outstanding	31,582		31,587		31,617		30,333
Dilutive impact of awards and options outstanding	171		104		208		115
Weighted average shares and potential dilutive shares outstanding	31,753		31,691		31,825		30,448
Net income per share - diluted	$	1.02	$	0.61	$	2.28	$	1.52

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The computation of weighted average shares and potential dilutive shares outstanding excludes the effect of options to purchase 89,710 and 61,000 shares of common stock for the three months ended May 26, 2018 and May 27, 2017, respectively, and 58,860 and 61,000 shares of common stock for the nine months ended May 26, 2018 and May 27, 2017, respectively. These amounts were not included in the computation of diluted income per share because they are considered anti-dilutive under the treasury stock method per ASC 260, Earnings Per Share.

Note 15: Accumulated Other Comprehensive Income (Loss)

Changes in AOCI by component, net of tax, were:

	Three Months Ended
	May 26, 2018							May 27, 2017
(In thousands)	Defined Benefit Pension Items			Interest Rate Swap		Total		Defined Benefit Pension Items			Interest Rate Swap			Total
Balance at beginning of period	$	(496	)	$	1,403	$	907	$	(461	)	$	(439	)	$	(900	)
OCI before reclassifications	—			129		129		—			(58		)	(58		)
Amounts reclassified from AOCI	7			—		7		6			—			6
Net current-period OCI	7			129		136		6			(58		)	(52		)
Balance at end of period	$	(489	)	$	1,532	$	1,043	$	(455	)	$	(497	)	$	(952	)

	Nine Months Ended
	May 26, 2018									May 27, 2017
(In thousands)	Defined Benefit Pension Items			Interest Rate Swap			Total			Defined Benefit Pension Items			Interest Rate Swap			Total
Balance at beginning of period	$	(509	)	$	(514	)	$	(1,023	)	$	10,975		$	—		$	10,975
OCI before reclassifications	—			2,046			2,046			3,903			(497		)	3,406
Amounts reclassified from AOCI	20			—			20			(15,333		)	—			(15,333		)
Net current-period OCI	20			2,046			2,066			(11,430		)	(497		)	(11,927		)
Balance at end of period	$	(489	)	$	1,532		$	1,043		$	(455	)	$	(497	)	$	(952	)

Reclassifications out of AOCI in net periodic benefit costs, net of tax, were:

		Three Months Ended				Nine Months Ended
(In thousands)	Location on Consolidated Statements of Income and Comprehensive Income	May 26, 2018		May 27, 2017		May 26, 2018		May 27, 2017
Amortization of prior service credit	SG&A	$	—	$	—	$	—	$	(25,035	)
Amortization of net actuarial loss	SG&A	7		6		20		9,702
Total reclassifications		$	7	$	6	$	20	$	(15,333	)

18

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

This section should be read in conjunction with the unaudited consolidated financial statements contained in this Form 10-Q as well as the Management's Discussion and Analysis and Risk Factors included in our Annual Report on Form 10‑K for the fiscal year ended August 26, 2017 and in Part II, Item 1A of this Quarterly Report on Form 10-Q.

Forward-Looking Information

This Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. A number of factors could cause actual results to differ materially from these statements, including, but not limited to, competition and new product introductions by competitors, our ability to attract and retain qualified personnel, business or production disruptions, sales order cancellations, risk related to compliance with debt covenants and leverage ratios, stock price volatility, availability of labor, a slowdown in the economy, low consumer confidence, the effect of global tensions, increases in interest rates, availability of credit, risk related to cyclicality and seasonality, slower than anticipated sales of new or existing products, integration of operations relating to merger and acquisition activities generally, inadequate liquidity or capital resources, inventory and distribution channel management, our ability to innovate, our reliance on large dealer organizations, significant increase in repurchase obligations, availability and price of fuel, availability of chassis and other key component parts, increased material and component costs, exposure to warranty claims, ability to protect our intellectual property, exposure to product liability claims, dependence on information systems and web applications, any unexpected expenses related to ERP, risk related to data security, governmental regulation, including for climate change, and risk related to anti-takeover provisions applicable to us and other factors. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in our filings with the SEC over the last 12 months, copies of which are available from the SEC or from us upon request. We disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release or to reflect any changes in expectations after the date of this release or any change in events, conditions or circumstances on which any statement is based, except as required by law.

Overview

Winnebago Industries, Inc. is a leading US manufacturer of RVs with a proud history of manufacturing RV products for 60 years. We currently produce a large majority of our motorhomes in vertically integrated manufacturing facilities in Iowa, and we produce all of our travel trailer and fifth wheel trailers in Indiana. We are in the process of expanding some motorhome manufacturing to Junction City, Oregon. We distribute our products primarily through independent dealers throughout the US and Canada, who then retail the products to the end consumer.

Non-GAAP Reconciliation

This MD&A includes financial information prepared in accordance with GAAP, as well as certain adjusted or non-GAAP financial measures such as EBITDA and Adjusted EBITDA. These non-GAAP financial measures, which are not calculated or presented in accordance with GAAP, have been provided as information supplemental and in addition to the financial measures presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented herein. The non-GAAP financial measures presented may differ from similar measures used by other companies.

Refer to the Consolidated Results of Operations-Current Quarter Compared to the Comparable Quarter Last Year and Consolidated Results of Operations-First Nine Months of Fiscal 2018 Compared to the Comparable Nine Months of Fiscal 2017 for a detailed reconciliation of items that impacted EBITDA and Adjusted EBITDA. EBITDA is defined as net income before interest expense, provision for income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation and amortization expense, and other adjustments made in order to present comparable results from period to period. We have included this non-GAAP performance measure as a comparable measure to illustrate the effect of non-recurring transactions occurring during the quarter and improve comparability of our results from period to period.  We believe EBITDA and Adjusted EBITDA provide meaningful supplemental information about our operating performance because each measure excludes amounts that we do not consider part of our core operating results when assessing our performance. Examples of items excluded from Adjusted EBITDA include the postretirement health care benefit income from terminating the plan and transaction costs related to our acquisition of Grand Design. These types of adjustments are also specified in the definition of certain measures required under the terms of our Credit Agreement.

Management uses these non-GAAP financial measures (a) to evaluate our historical and prospective financial performance and trends as well as its performance relative to competitors and peers; (b) to measure operational profitability on a consistent basis; (c) in presentations to the members of our board of directors to enable our board of directors to have the same measurement basis of operating performance as is used by management in its assessments of performance and in forecasting and budgeting for our company; (d) to evaluate potential acquisitions; and, (e) to ensure compliance with covenants and restricted activities under the terms of our Credit Agreement. We believe these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties to evaluate companies in our industry.

19

Significant Transaction

On November 8, 2016, we acquired all of the issued and outstanding capital stock of towable RV manufacturer Grand Design for an aggregate purchase price of $520.5 million. This acquisition was funded from our cash on hand, $353.0 million from asset-based revolving and term loan credit facilities, as well as stock consideration, as is more fully described in Note 2 and Note 9 to the Condensed Consolidated Financial Statements. We purchased Grand Design to significantly expand our existing towable RV product offerings and dealer base and acquire additional talent in the RV industry.

With the acquisition of Grand Design in the first quarter of Fiscal 2017, we expanded the number of reporting segments to two: (1) Motorized products and services and (2) Towable products and services. The Motorized segment includes all products that include a motorized chassis as well as other related manufactured products. The Towable segment includes all products that are not motorized and are generally towed by another vehicle.

Subsequent Event

Subsequent to the third quarter of Fiscal 2018, we acquired 100% of the ownership interests of Chris-Craft, a privately-owned company based in Sarasota Florida. Chris-Craft manufactures and sells premium quality boats in the recreational powerboat industry through an established global network of independent authorized dealers.

Industry Trends

Key reported statistics for the North American RV industry are as follows:

• Wholesale unit shipments: RV product delivered to the dealers, which is reported monthly by RVIA

• Retail unit registrations: consumer purchases of RVs from dealers, which is reported by Stat Surveys

We track RV industry conditions using these key statistics to monitor trends and evaluate and understand our performance relative to the overall industry. The rolling twelve months shipment and retail information for 2018 and 2017, as noted below, illustrates that the RV industry continues to grow at the wholesale and retail level. We believe that retail demand is the key driver to continued growth in the industry.

	US and Canada Industry
	Wholesale Unit Shipments per RVIA					Retail Unit Registrations per Stat Surveys
	Rolling 12 Months through April					Rolling 12 Months through April
	2018	2017	Unit Change	% Change		2018	2017	Unit Change	% Change
Towable (1)	448,693	376,022	72,671	19.3	%	404,225	363,369	40,856	11.2	%
Motorized (2)	64,715	57,133	7,582	13.3	%	57,647	52,990	4,657	8.8	%
Combined	513,408	433,155	80,253	18.5	%	461,872	416,359	45,513	10.9	%

(1) Towable: Fifth wheel and travel trailer products

(2) Motorized: Class A, B and C products

The most recent towable and motorized RVIA wholesale shipment forecasts for calendar years 2018 and 2017, as noted in the table below, illustrates continued projected growth of the industry. The outlook for future growth in RV sales is based on continued modest gains in job and disposable income prospects as well as low inflation, and takes into account the impact of slowly rising interest rates, a strong US dollar and continued weakness in energy production and prices.

	Calendar Year
Wholesale Unit Shipment Forecast per RVIA(1)	2018	2017	Unit Change	% Change
Towable	462,600	429,500	33,100	7.7	%
Motorized	66,800	62,700	4,100	6.5	%
Combined	529,400	492,200	37,200	7.6	%

(1) Forecast prepared by Dr. Richard Curtin of the University of Michigan Consumer Survey Research Center for RVIA and reported in the Roadsigns RV Summer 2018 Industry Forecast Issue. Unit forecasts exclude folding camper and truck camper categories.

20

Market Share

Our retail unit market share, as reported by Stat Surveys based on state records, is illustrated below. Note that this data is subject to adjustment and is continuously updated.

	Rolling 12 Months Through April		Calendar Year
	2018	2017(1)	2017(1)	2016(1)	2015
Motorized A, B, C	16.2%	17.0%	16.2%	18.0%	20.5	%
Travel trailer and fifth wheels	6.7%	3.1%	6.1%	1.7%	0.9	%

(1) Travel trailer and fifth wheels include retail unit market share for Grand Design since acquisition on November 8, 2016.

Debt Repricing

Effective December 8, 2017, we amended our Credit Agreement to reprice $260.0 million of Term Loan debt. The revised interest rate is LIBOR plus 3.5%, down from the previous rate of LIBOR plus 4.5%. Prior to this repricing, $19.7 million was drawn on our ABL and the proceeds from the ABL borrowing were used to voluntarily pay down our Term Loan. Various other amendments were made to our ABL providing us with reduced borrowing costs and facility fees under the ABL. The requirement to hedge a portion of the Term Loan floating rate interest exposure was also removed from the ABL, providing greater flexibility under the Credit Agreement.

Facility Expansion

During Fiscal 2017, our Board of Directors approved two large facility expansion projects in the fast growing Towable segment. The Grand Design expansion project consisted of two new production facilities. The first was completed in January 2018, and we have seen an increase in units produced beginning in the second quarter of Fiscal 2018. The second building in the Grand Design expansion project was completed in the third quarter of Fiscal 2018. The facility expansion in the Winnebago-branded Towable division is expected to be completed in early Fiscal 2019.

ERP System

In the second quarter of Fiscal 2015, our Board of Directors approved the strategic initiative of implementing an ERP system to replace our legacy business applications. The new ERP platform will provide better support for our changing business needs and plans for future growth. Our initial cost estimates have grown for additional needs of the business, such as the acquisition of the Junction City, Oregon plant and the opportunity to integrate the ERP system with additional manufacturing systems. The project includes software, external implementation assistance and increased internal staffing directly related to this initiative. We anticipate that approximately 40% of the cost will be expensed in the period incurred and 60% will be capitalized and depreciated over its useful life.

The following table illustrates the cumulative project costs:

	Fiscal 2018						Fiscal		Fiscal		Fiscal		Cumulative
(In thousands)	Q3		Q2		Q1		2017		2016		2015		Investment
Capitalized	$	1,549	$	1,271	$	1,416	$	1,881	$	7,798	$	3,291	$	17,206	58	%
Expensed	435		420		387		2,601		5,930		2,528		12,301		42	%
Total	$	1,984	$	1,691	$	1,803	$	4,482	$	13,728	$	5,819	$	29,507	100	%

In May of 2017, our Board of Directors approved continued investment in the ERP system and a change in implementation partner. The project is proceeding and the benefits are expected to be realized over the next several years. Total project costs are expected to be approximately $38.0 million.

21

Consolidated Results of Operations

Current Quarter Compared to the Comparable Quarter Last Year

The following is an analysis of changes in key items included in the consolidated statements of income and comprehensive income for the three months ended May 26, 2018 compared to the three months ended May 27, 2017:

	Three Months Ended
(In thousands, except per share data)	May 26, 2018			% of Revenues(1)		May 27, 2017			% of Revenues(1)		Increase (Decrease)			% Change
Net revenues	$	562,261		100.0	%	$	476,364		100.0	%	$	85,897		18.0	%
Cost of goods sold	476,747			84.8	%	405,560			85.1	%	71,187			17.6	%
Gross profit	85,514			15.2	%	70,804			14.9	%	14,710			20.8	%
Selling	13,100			2.3	%	10,141			2.1	%	2,959			29.2	%
General and administrative	21,404			3.8	%	15,194			3.2	%	6,210			40.9	%
Postretirement health care benefit income	—			—	%	—			—	%	—			—	%
Transaction costs	800			0.1	%	450			0.1	%	350			77.8	%
Amortization of intangible assets	1,933			0.3	%	10,159			2.1	%	(8,226		)	(81.0	)%
Total general and administrative	24,137			4.3	%	25,803			5.4	%	(1,666		)	(6.5	)%
Total SG&A	37,237			6.6	%	35,944			7.5	%	1,293			3.6	%
Operating income	48,277			8.6	%	34,860			7.3	%	13,417			38.5	%
Interest expense	4,172			0.7	%	5,265			1.1	%	(1,093		)	(20.8	)%
Non-operating income	(100		)	—	%	(54		)	—	%	(46		)	85.2	%
Income before income taxes	44,205			7.9	%	29,649			6.2	%	14,556			49.1	%
Provision for income taxes	11,684			2.1	%	10,258			2.2	%	1,426			13.9	%
Net income	$	32,521		5.8	%	$	19,391		4.1	%	$	13,130		67.7	%
Diluted income per share	$	1.02				$	0.61				$	0.41		67.2	%
Diluted average shares outstanding	31,753					31,691					62			0.2	%

(1) Percentages may not add due to rounding differences.

Consolidated net revenues increased in the third quarter of Fiscal 2018 compared to the third quarter of Fiscal 2017 primarily due to an increase in volume in our Towable segment.

Gross profit as a percentage of revenue increased in the third quarter of Fiscal 2018 compared to the same period a year ago due to a decrease in manufacturing costs as a percentage of revenue due to our Towable segment volume growth and cost savings initiatives. This was partially offset by inflationary input cost pressures and continued margin pressure in the Motorized segment due to ongoing expenses related to the ramp-up of our West Coast production facility and costs associated with new product start-up.

Selling expenses as a percentage of revenue increased in the third quarter of Fiscal 2018 compared to the third quarter of Fiscal 2017 primarily due to a mix change driven by volume growth in our Towable segment.

Total general and administrative expenses decreased in the third quarter of Fiscal 2018 compared to the same period a year ago due to the reduction of amortization of definite-lived intangible assets driven by the Grand Design acquisition in Fiscal 2017. This decrease was partially offset by an increase in general and administrative expenses related to investments in our business as well as an increase in transaction-related expenses due to the acquisition of Chris-Craft.

Interest expense decreased in the third quarter of Fiscal 2018 compared to the same period a year ago due to our Credit Agreement amendment during the second quarter of Fiscal 2018. This amendment resulted in a decrease to the interest rate spread by 1.0% on the Term Loan and 0.25% on the ABL. See Analysis of Financial Condition, Liquidity, and Resources and Note 9 to the Condensed Consolidated Financial Statements for further information.

The overall effective income tax rate for the third quarter of Fiscal 2018 was 26.4% compared to the effective tax rate of 34.6% for the same period in Fiscal 2017. The effective tax rate for the third quarter of Fiscal 2018 was favorably impacted by the enactment of the Tax Act. This decrease was primarily due to the decrease in the Federal rate as a result of the Tax Act.

22

Net income and diluted income per share increased in the third quarter of Fiscal 2018 compared to the same period a year ago primarily due to the increased gross profit rate, the lower SG&A rate, and the lower effective income tax rate.

Non-GAAP Reconciliation

The following table reconciles net income to consolidated EBITDA and Adjusted EBITDA for the three months ended May 26, 2018 and May 27, 2017.

	Three Months Ended
(In thousands)	May 26, 2018			May 27, 2017
Net income	$	32,521		$	19,391
Interest expense	4,172			5,265
Provision for income taxes	11,684			10,258
Depreciation	2,351			1,859
Amortization of intangible assets	1,933			10,159
EBITDA	52,661			46,932
Postretirement health care benefit income	—			—
Transaction costs	800			450
Non-operating expense	(100		)	(54		)
Adjusted EBITDA	$	53,361		$	47,328

Segment Results of Operations

The following is an analysis of key changes in our Motorized segment for the three months ended May 26, 2018 compared to the three months ended May 27, 2017:

Motorized
(In thousands, except units)	Three Months Ended
	May 26, 2018		% of Revenue		May 27, 2017		% of Revenue			Increase (Decrease)			% Change
Net revenues	$	249,245			$	241,670				$	7,575		3.1	%
Adjusted EBITDA	9,319		3.7	%	14,567		6.0		%	(5,248		)	(36.0	)%
Unit deliveries	May 26, 2018		Product Mix %(1)		May 27, 2017		Product Mix %(1)			Increase (Decrease)			% Change
Class A	722		25.3	%	797		28.5		%	(75		)	(9.4	)%
Class B	606		21.2	%	471		16.9		%	135			28.7	%
Class C	1,528		53.5	%	1,524		54.6		%	4			0.3	%
Total motorhomes	2,856		100.0	%	2,792		100.0		%	64			2.3	%
Motorhome ASP	$	85,950			$	85,953				$	(3	)	—	%
					As Of
Backlog(2)					May 26, 2018		May 27, 2017			Increase			% Change
Units					2,155		1,640			515			31.4	%
Dollars					$	193,079	$	141,998		$	51,081		36.0	%
Dealer Inventory
Units					4,750		4,670			80			1.7	%

(1) Percentages may not add due to rounding differences.

(2) We include in our backlog all accepted orders from dealers to generally be shipped within the next six months. Orders in backlog can be cancelled or postponed at the option of the dealer at any time without penalty and, therefore, backlog may not necessarily be an accurate measure of future sales.

23

Motorized net revenues increased in the third quarter of Fiscal 2018 as compared to the third quarter of Fiscal 2017 due to an increase in the number of units sold.

Motorized unit deliveries increased in the third quarter of Fiscal 2018 as compared to the third quarter of Fiscal 2017 driven by the unit growth we have generated in our Class B and entry-level Class A products. Additionally, we have seen an increase in the backlog volumes in the third quarter of Fiscal 2018 as compared to the third quarter of Fiscal 2017 due largely to the introduction of new products. Dealer inventory increased slightly due to timing, noting that the number of backlog units has increased.

Motorized segment Adjusted EBITDA decreased in the third quarter of Fiscal 2018 as compared to the third quarter of Fiscal 2017 due to inflationary input cost pressures and continued margin pressure due to ongoing expenses related to the ramp-up of our West Coast production facility and costs associated with new product start-up.

The following is an analysis of key changes in our Towable segment for the three months ended May 26, 2018 compared to the three months ended May 27, 2017:

Towable
(In thousands, except units)	Three Months Ended
	May 26, 2018		% of Revenue		May 27, 2017		% of Revenue			Increase		% Change
Net revenues	$	313,016			$	234,694				$	78,322	33.4	%
Adjusted EBITDA	44,042		14.1	%	32,761		14.0		%	11,281		34.4	%
Unit deliveries	May 26, 2018		Product Mix %(1)		May 27, 2017		Product Mix %(1)			Increase		% Change
Travel trailer	6,063		62.1	%	4,359		58.5		%	1,704		39.1	%
Fifth wheel	3,703		37.9	%	3,092		41.5		%	611		19.8	%
Total towables	9,766		100.0	%	7,451		100.0		%	2,315		31.1	%
Towable ASP	$	31,826			$	31,459				$	367	1.2	%
					As Of
Backlog(2)					May 26, 2018		May 27, 2017			Increase		% Change
Units					9,968		8,657			1,311		15.1	%
Dollars					$	313,513	$	269,965		$	43,548	16.1	%
Dealer Inventory
Units					15,986		9,520			6,466		67.9	%

(1) Percentages may not add due to rounding differences.

(2) We include in our backlog all accepted orders from dealers to generally be shipped within the next six months. Orders in backlog can be cancelled or postponed at the option of the dealer at any time without penalty and, therefore, backlog may not necessarily be an accurate measure of future sales.

Towable net revenues increased in the third quarter of Fiscal 2018 as compared to the third quarter of Fiscal 2017 primarily due to strong organic growth.

Towable unit deliveries grew in the third quarter of Fiscal 2018 as compared to the third quarter of Fiscal 2017 primarily due to volume growth in excess of recent industry trends. Our Towable market share increased from 3.1% to 6.7% when comparing shipments during the twelve-month trailing periods ended April 2017 and April 2018. Towable ASP increased slightly due to a mix change for the third quarter of Fiscal 2018 compared to the same period in Fiscal 2017.

Towable segment Adjusted EBITDA increased in the third quarter of Fiscal 2018 as compared to the third quarter of Fiscal 2017 due primarily to organic volume growth. Shipments grew faster than the industry as a result of greater penetration of our new products and further expansion of our distribution base. In addition to the growth in the Towable segment, profitability has increased due to the leverage of higher volume on the fixed cost components of our business as well as effective cost-savings initiatives.

24

Consolidated Results of Operations

First Nine Months of Fiscal 2018 Compared to the Comparable Nine Months of Fiscal 2017

The following is an analysis of changes in key items included in the consolidated statements of income and comprehensive income for the nine months ended May 26, 2018 compared to the nine months ended May 27, 2017:

	Nine Months Ended
(In thousands, except percent and per share data)	May 26, 2018			% of Revenues(1)		May 27, 2017			% of Revenues(1)		Increase (Decrease)			% Change
Net revenues	$	1,480,641		100.0	%	$	1,092,183		100.0	%	$	388,458		35.6	%
Cost of goods sold	1,264,635			85.4	%	943,188			86.4	%	321,447			34.1	%
Gross profit	216,006			14.6	%	148,995			13.6	%	67,011			45.0	%
Selling	37,443			2.5	%	25,564			2.3	%	11,879			46.5	%
General and administrative	57,088			3.9	%	37,640			3.4	%	19,448			51.7	%
Postretirement health care benefit income	—			—	%	(24,796		)	(2.3	)%	24,796			(100.0	)%
Transaction costs	850			0.1	%	6,374			0.6	%	(5,524		)	(86.7	)%
Amortization of intangible assets	5,921			0.4	%	22,578			2.1	%	(16,657		)	(73.8	)%
Total general and administrative	63,859			4.3	%	41,796			3.8	%	22,063			52.8	%
Total SG&A	101,302			6.8	%	67,360			6.2	%	33,942			50.4	%
Operating income	114,704			7.7	%	81,635			7.5	%	33,069			40.5	%
Interest expense	13,871			0.9	%	11,571			1.1	%	2,300			19.9	%
Non-operating income	(212		)	—	%	(137		)	—	%	(75		)	54.7	%
Income before income taxes	101,045			6.8	%	70,201			6.4	%	30,844			43.9	%
Provision for income taxes	28,478			1.9	%	23,794			2.2	%	4,684			19.7	%
Net income	$	72,567		4.9	%	$	46,407		4.2	%	$	26,160		56.4	%
Diluted income per share	$	2.28				$	1.52				$	0.76		50.0	%
Diluted average shares outstanding	31,825					30,448					1,377			4.5	%

(1) Percentages may not add due to rounding differences.

Consolidated net revenues increased in the first nine months of Fiscal 2018 compared to the first nine months of Fiscal 2017 primarily due to the acquisition of Grand Design and strong volume growth in our Towable segment.

Gross profit as a percentage of revenue increased in the first nine months of Fiscal 2018 compared to the first nine months of Fiscal 2017 due to the Towable segment, which operates at a higher gross profit, growing faster than the Motorized segment, and also due to effectiveness of cost savings initiatives.

Selling expenses increased in the first nine months of Fiscal 2018 compared to the first nine months of Fiscal 2017 primarily due to a mix change driven by volume growth in our Towable segment.

Total general and administrative expenses increased in the first nine months of Fiscal 2018 compared to the first nine months of Fiscal 2017 due primarily to the $24.8 million benefit recorded in Fiscal 2017 associated with the termination of the postretirement health care plan. The increase was partially offset by the reduction of amortization of definite-lived intangible assets and transaction-related expenses, both of which were driven by the Grand Design acquisition in Fiscal 2017.

Interest expense increased in the first nine months of Fiscal 2018 compared to the first nine months of Fiscal 2017, which was related to the ABL and Term Loan agreements associated with the acquisition of Grand Design. See Analysis of Financial Condition, Liquidity, and Resources and Note 9 to the Condensed Consolidated Financial Statements for further information.

The overall effective income tax rate for the first nine months of Fiscal 2018 was 28.2% compared to the effective income tax rate of 33.9% for the first nine months of Fiscal 2017. The effective rate for the first nine months of Fiscal 2018 was favorably impacted by the enactment of the Tax Act. This decrease was primarily due to the decrease in the Federal rate as a result of the Tax Act, which was partially offset by the associated remeasurement of our deferred tax assets.

25

Net income and diluted income per share increased in the first nine months of Fiscal 2018 compared to the first nine months of Fiscal 2017 primarily due to the increased gross profit rate and the lower effective income tax rate. These increases were partially offset by an increase in the SG&A rate.

Non-GAAP Reconciliation

The following table reconciles net income to consolidated EBITDA and Adjusted EBITDA for the nine months ended May 26, 2018 and May 27, 2017.

	Nine Months Ended
(In thousands)	May 26, 2018			May 27, 2017
Net income	$	72,567		$	46,407
Interest expense	13,871			11,571
Provision for income taxes	28,478			23,794
Depreciation	6,679			5,287
Amortization of intangible assets	5,921			22,578
EBITDA	127,516			109,637
Postretirement health care benefit income	—			(24,796		)
Transaction costs	850			6,374
Non-operating income	(212		)	(137		)
Adjusted EBITDA	$	128,154		$	91,078

Segment Results of Operations

The following is an analysis of key changes in our Motorized segment:

Motorized
(In thousands, except units)	Nine Months Ended
	May 26, 2018		% of Revenue		May 27, 2017		% of Revenue			Increase (Decrease)			% Change
Net revenues	$	641,602			$	635,732				$	5,870		0.9	%
Adjusted EBITDA	16,518		2.6	%	36,521		5.7		%	(20,003		)	(54.8	)%
Unit deliveries	May 26, 2018		Product Mix %(1)		May 27, 2017		Product Mix %(1)			Increase (Decrease)			% Change
Class A	2,326		32.8	%	2,263		32.8		%	63			2.8	%
Class B	1,387		19.6	%	1,148		16.6		%	239			20.8	%
Class C	3,372		47.6	%	3,488		50.6		%	(116		)	(3.3	)%
Total motorhomes	7,085		100.0	%	6,899		100.0		%	186			2.7	%
Motorhome ASP	$	88,728			$	91,162				$	(2,434	)	(2.7	)%
					As Of
Backlog(2)					May 26, 2018		May 27, 2017			Increase			% Change
Units					2,155		1,640			515			31.4	%
Dollars					$	193,079	$	141,998		$	51,081		36.0	%
Dealer Inventory
Units					4,750		4,670			80			1.7	%

(1) Percentages may not add due to rounding differences.

(2) We include in our backlog all accepted orders from dealers to generally be shipped within the next six months. Orders in backlog can be cancelled or postponed at the option of the dealer at any time without penalty and, therefore, backlog may not necessarily be an accurate measure of future sales.

26

Motorized net revenues increased in the first nine months of Fiscal 2018 as compared to the first nine months of Fiscal 2017 primarily due to an increase in the number of units sold.

Motorized unit deliveries grew slower than recent industry growth in the first nine months of Fiscal 2018 compared to the first nine months of Fiscal 2017. Our overall Motorized market share moved from 17.0% to 16.2% when comparing shipments during the twelve-month trailing periods ended April 2017 and April 2018 due to a mix change from our Class C products to our Class B and entry-level Class A products.

Motorized segment Adjusted EBITDA decreased in the first nine months of Fiscal 2018 as compared to the first nine months of Fiscal 2017 due to costs associated with ongoing expenses related to the ramp-up of our West Coast production facility and costs associated with new product start-up.

The following is an analysis of key changes in our Towable segment:

Towable
(In thousands, except units)	Nine Months Ended
	May 26, 2018		% of Revenue		May 27, 2017		% of Revenue			Increase		% Change
Net revenues	$	839,039			$	456,451				$	382,588	83.8	%
Adjusted EBITDA	111,636		13.3	%	54,557		12.0		%	57,079		104.6	%
Unit deliveries	May 26, 2018		Product Mix %(1)		May 27, 2017		Product Mix %(1)			Increase		% Change
Travel trailer	16,495		61.3	%	8,914		59.9		%	7,581		85.0	%
Fifth wheel	10,428		38.7	%	5,960		40.1		%	4,468		75.0	%
Total towables	26,923		100.0	%	14,874		100.0		%	12,049		81.0	%
Towables ASP	$	31,361			$	30,877				$	484	1.6	%
					As Of
Backlog(2)					May 26, 2018		May 27, 2017			Increase		% Change
Units					9,968		8,657			1,311		15.1	%
Dollars					$	313,513	$	269,965		$	43,548	16.1	%
Dealer Inventory
Units					15,986		9,520			6,466		67.9	%

(1) Percentages may not add due to rounding differences.

(2) We include in our backlog all accepted orders from dealers to generally be shipped within the next six months. Orders in backlog can be cancelled or postponed at the option of the dealer at any time without penalty and, therefore, backlog may not necessarily be an accurate measure of future sales.

Towable net revenues increased in the first nine monthsof Fiscal 2018 as compared to the first nine months of Fiscal 2017 primarily due to the Fiscal 2017 acquisition of Grand Design in November 2016 and organic volume growth.

Towable unit deliveries grew in the first nine months of Fiscal 2018 as compared to the first nine months of Fiscal 2017 primarily due to Towable growth in excess of recent industry trends and due to the acquisition of Grand Design. With the addition of Grand Design in the first quarter of Fiscal 2017, our Towable market share increased from 3.1% to 6.7% when comparing shipments during the twelve-month trailing periods ended April 2017 and April 2018.

Towable segment Adjusted EBITDA increased in the first nine months of Fiscal 2018 as compared to the first nine months of Fiscal 2017 due to the favorable impact of organic growth. We achieved strong results in our Towable segment, where shipments grew much faster than the industry as a result of greater penetration of our new products and further expansion of our distribution base, as well as higher gross profit from cost savings initiatives.

27

Analysis of Financial Condition, Liquidity and Resources

Cash and cash equivalents decreased during the first nine months of Fiscal 2018 and totaled $39.0 million as of May 26, 2018. Significant liquidity events that occurred during the first nine months of Fiscal 2018 were:

• Generated net income of $72.6 million

• Total borrowings at May 26, 2018 were $260.0 million, and we have an additional $125.0 million available to borrow under the revolving credit agreement, subject to sufficient borrowing base

• Net repayment of $24.0 million of debt ($43.7 million repayments less $19.7 million borrowings)

• Increase in payables of $24.5 million partially offset by increases in receivables, prepaid and other assets of $21.3 million

• Increase in inventory of $36.4 million

As described in Note 9 to the Condensed Consolidated Financial Statements, our Credit Agreement at May 26, 2018 consisted of a $300.0 million Term Loan and a $125.0 million ABL with JPMorgan Chase.

We filed a registration statement on Form S-3, which was declared effective by the SEC on April 25, 2016. Subject to market conditions, we have the ability to offer and sell up to $35.0 million of our common stock in one or more offerings pursuant to the registration statement. The registration statement will be available for three years from its effective date. We currently have no plans to offer and sell the common stock registered under the registration statement; however, it does provide another potential source of liquidity to raise capital if we need it, in addition to other alternatives already in place.

Working capital at May 26, 2018 and August 26, 2017 was $183.4 million and $147.0 million, respectively. We currently expect cash on hand, funds generated from operations, and the borrowing available under our Credit Agreement to be sufficient to cover both short-term and long-term operating requirements. We will continue to invest in our current motorhome facilities and our ERP system as well as expand our Towable facilities.

We repurchase our common stock and pay dividends pursuant to programs approved by our Board of Directors. Our long-term capital allocation strategy is to first fund operations and investments in growth and then return excess cash over time to shareholders through dividends and share repurchases.

On December 19, 2007, our Board of Directors authorized the repurchase of outstanding shares of our common stock, depending on market conditions, for an aggregate consideration of up to $60 million. On October 18, 2017, our Board of Directors authorized a share repurchase program in the amount of $70.0 million. There is no time restriction on either authorization. During the first nine months of Fiscal 2018, we repurchased 134,803 shares of our common stock at a cost of $5.0 million. An additional 33,560 shares of our common stock at a cost of $1.5 million were repurchased to satisfy tax obligations on employee equity awards as they vested. Repurchased shares are retired and constitute authorized but unissued shares. We continually evaluate if share repurchases reflect a prudent use of our capital and, subject to compliance with our Credit Agreement, we may purchase shares in the remainder of Fiscal 2018. At May 26, 2018, we have $66.0 million remaining on our board repurchase authorization. See Part II, Item 2 of this Form 10-Q.

The following table summarizes our cash flows from total operations for the nine months ended May 26, 2018 and May 27, 2017:

	Nine Months Ended
(In thousands)	May 26, 2018			May 27, 2017
Total cash provided by (used in):
Operating activities	$	61,012		$	67,350
Investing activities	(17,890		)	(403,531		)
Financing activities	(40,038		)	274,967
Increase (decrease) in cash and cash equivalents	$	3,084		$	(61,214	)

Operating Activities

Cash provided by operating activities decreased for the nine months ended May 26, 2018 due to an increase in inventory, partially offset by growth in net income.

Investing Activities

Cash used in investing activities for the nine months ended May 26, 2018 consisted primarily of capital expenditures related to the capacity expansions taking place in our Towable segment. In the nine months ended May 27, 2017, cash used in investing activities consisted of the acquisition of Grand Design for which we paid cash of $394.7 million, net of cash acquired, in addition to issuing Winnebago stock with a value of $124.1 million at closing.

28

Financing Activities

Cash used in financing activities for the nine months ended May 26, 2018 consisted of payments on the Credit Agreement, dividends payments, and share repurchases; these were partially offset by cash proceeds on the Credit Agreement. Cash provided by financing activities for the nine months ended May 27, 2017 consisted of cash proceeds from the Credit Agreement of $366.4 million, partially offset by payments on the Credit Agreement of $69.4 million, $11.0 million for the payment of debt issuance costs, and $9.6 million for the payment of dividends.

Significant Accounting Policies

We describe our significant accounting policies in Note 1: Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended August 26, 2017. We discuss our critical accounting estimates in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, in our Annual Report on Form 10-K for the fiscal year ended August 26, 2017. We refer to these disclosures for a detailed explanation of our significant accounting policies and critical accounting estimates. There has been no significant change in our significant accounting policies or critical accounting estimates since the end of Fiscal 2017, except as disclosed in Note 1 to the Condensed Consolidated Financial Statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest rate risk

We are exposed to market risks related to fluctuations in interest rates on the outstanding variable rate debt. As of May 26, 2018, we had $260.0 million outstanding under our Term Loan, subject to variable interest rates. This risk is partially mitigated through an interest rate swap contract as detailed below.

Under terms of the Credit Agreement, we were previously required to maintain interest rate swaps to manage our interest rate exposure related to the variable component of interest cost on the Term Loan. In accordance with this requirement, we entered into an interest swap contract on January 23, 2017, to effectively convert $200.0 million of the Term Loan balance to a fixed rate. The notional amount of the swap reduced to $170.0 million on December 8, 2017 and will be reduced to $120.0 million on December 10, 2018 and $60.0 million on December 9, 2019. The swap contract expires on December 8, 2020. A hypothetical one percentage point increase in interest rates on the Term Loan would increase our interest expense (after consideration of the interest rate swap) for 2018 by approximately $0.9 million. Due to the floor of 1.0% on LIBOR for the Term Loan, a 1.0% decrease could only decrease to the floor for the variable rate, resulting in a decrease in interest expense (after consideration of the interest rate swap) for Fiscal 2018 of $0.9 million.  As discussed in Note 5: Derivatives, Investments and Fair Value Measurements, the requirement to hedge a portion of the Term Loan floating rate interest exposure was removed through an amendment to the ABL.

For variable rate debt, interest rate changes generally do not affect the fair value of the debt instrument, but do impact future earnings and cash flows, assuming other factors are held constant.

Derivative instruments are accounted for at fair value in accordance with ASC Topic 815, Derivatives and Hedging, and have been designated for hedge accounting. The fair value of the interest rate swap is based on observable market data (Level 2) and was $2.1 million as of May 26, 2018. The interest rate swap requires us to pay interest at a fixed rate of 1.82% through the December 8, 2020 expiration of the swap. A 1.0% increase in the interest rate would have changed the fair value of the swap as of May 26, 2018 by approximately $2.5 million and a 1.0% decrease would have changed the fair value by $2.6 million. These increases and decreases would be recorded in OCI and the hedged value on our consolidated balance sheet (currently recorded within other non-current liabilities).  While these are our best estimates of the impact of the specified interest rate scenario, actual results could differ from those projected. The sensitivity analysis presented assumes interest rate changes are instantaneous, parallel shifts in the yield curve. In reality, interest rate changes of this magnitude are rarely instantaneous or parallel.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain "disclosure controls and procedures", as such term is defined under Securities Exchange Act of 1934, as amended ("Exchange Act") Rule 13a-15(e), that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. Management necessarily applied its judgment in assessing the costs and benefits of such controls and procedures and believes that such controls and procedures are effective at the reasonable assurance level.

Our management, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures, required by Exchange Act Rule

29

13a-15(b), as of the end of the period covered by this report (the "Evaluation Date"). Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of the Evaluation Date.

Changes in Internal Control Over Financial Reporting

We are implementing an ERP system, which is expected to improve the efficiency of certain financial and related transaction processes. The implementation of an ERP system will likely affect the processes that constitute our internal control over financial reporting and will require testing for effectiveness.  As we have completed implementation of certain phases of the ERP, internal controls over financial reporting have been tested for effectiveness with respect to the scope of the phase completed.  We concluded, as part of our evaluation described in the above paragraphs, that the implementation of ERP in these circumstances has not materially affected our internal control over financial reporting. The implementation is continuing in a phased approach and will continue to be evaluated for effect on our internal control over financial reporting.

There were no changes in our internal control over financial reporting that occurred during the third quarter of Fiscal 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are involved in various legal proceedings that are ordinary litigation incidental to our business, some of which are covered in whole or in part by insurance. While we believe the ultimate disposition of litigation will not have material adverse effect on our financial position, results of operations or liquidity, there exists the possibility that such litigation may have an impact on our results for a particular reporting period in which litigation effects become probable and reasonably estimable.  Though we do not believe there is a reasonable likelihood that there will be a material change related to these matters, litigation is subject to inherent uncertainties and management’s view of these matters may change in the future.

Item 1A. Risk Factors

There have been no material changes from the risk factors previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended August 26, 2017.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(c) Stock Repurchases

Purchases of our common stock during each fiscal month of the third quarter of Fiscal 2018 were:

Period	Total Number of Shares Purchased(1)	Average Price Paid per Share		Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1)	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs(2)
02/25/18 - 03/31/18	—	$	—	—	$	70,989,000
04/01/18 - 04/28/18	134,803	$	37.09	134,803	$	65,989,000
04/29/18 - 05/26/18	—	$	—	—	$	65,989,000
Total	134,803	$	37.09	134,803	$	65,989,000

(1) Shares not purchased as part of a publicly announced program were repurchased from employees who vested in Company shares and elected to pay their payroll tax via the value of shares delivered as opposed to cash.

(2) Pursuant to a combined $130.0 million share repurchase program authorized by our Board of Directors. On December 18, 2007, $60.0 million was approved, and on October 18, 2017, $70.0 million was approved. There is no time restriction on either authorization.

Our Credit Agreement contains restrictions that may limit our ability to make distributions or payments with respect to purchases of our common stock without consent of the lenders, except for limited purchases of our common stock from employees, in the event of a significant reduction in our EBITDA or in the event of a significant borrowing on our ABL.

30

Item 6. Exhibits

3a.	Articles of Incorporation of the Registrant previously filed with the Registrant’s Quarterly Report on Form 10-Q for the quarter ended May 27, 2000 (Commission File Number 001-06403) and incorporated by reference herein.
3b.	Amended By-Laws of the Registrant previously filed with the Registrant’s Current Report on Form 8-K dated March 24, 2010 (Commission File Number 001-06403) and incorporated by reference herein.
31.1	Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 dated June 21, 2018
31.2	Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 dated June 21, 2018
32.1	Certification by the Chief Executive Officer pursuant to Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated June 21, 2018
32.2	Certification by the Chief Financial Officer pursuant to Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated June 21, 2018
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definitions Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

*Attached as Exhibit 101 to this report are the following financial statements from our Quarterly Report on Form 10-Q for the quarter ended May 26, 2018 formatted in XBRL: (i) the Unaudited Condensed Consolidated Statements of Income and Comprehensive Income, (ii) the Unaudited Condensed Consolidated Balance Sheets, (iii) the Unaudited Condensed Consolidated Statements of Cash Flows, (iv) the Unaudited Condensed Consolidated Stockholders' Statement of Equity and (v) related notes to these financial statements. Such exhibits are deemed furnished and not filed pursuant to Rule 406T of Regulation S-T.

31

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		WINNEBAGO INDUSTRIES, INC.
Date:	June 21, 2018	By	/s/ Michael J. Happe
			Michael J. Happe
			Chief Executive Officer, President
			(Principal Executive Officer)
Date:	June 21, 2018	By	/s/ Bryan L. Hughes
			Bryan L. Hughes
			Vice President, Chief Financial Officer
			(Principal Financial and Accounting Officer)

32

EX-31.1

Exhibit 31.1

 CERTIFICATION BY CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Michael J. Happe, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Winnebago Industries, Inc. (the "Registrant");

2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3. Based on my knowledge, the financial statements and other financial information included in this Report fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

d. disclosed in this Report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's third fiscal quarter in this case) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of Registrant's Board of Directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involved management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date:	June 21, 2018	By:	/s/ Michael J. Happe
			Michael J. Happe
			Chief Executive Officer, President

EX-31.2

Exhibit 31.2

CERTIFICATION BY CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Bryan L. Hughes, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Winnebago Industries, Inc. (the "Registrant");

2. Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3. Based on my knowledge, the financial statements and other financial information included in this Report fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report;

4. The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

d. disclosed in this Report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's third fiscal quarter in this case) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of Registrant's Board of Directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involved management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date:	June 21, 2018	By:	/s/ Bryan L. Hughes
			Bryan L. Hughes
			Vice President, Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with this Quarterly Report on Form 10-Q of Winnebago Industries, Inc. for the quarter ended May 26, 2018, I, Michael J. Happe, Chief Executive Officer and President of Winnebago Industries, Inc., certify that pursuant to 18 U.S.C. §1350 as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

a. This Quarterly Report on Form 10-Q (“periodic report”) of Winnebago Industries, Inc. (the “issuer”), for the fiscal quarter ended May 26, 2018 as filed with the Securities and Exchange Commission on the date of this certificate, which this statement accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

b. the information contained in this periodic report fairly represents, in all material respects, the financial condition and results of operations of the issuer.

Date:	June 21, 2018	By:	/s/ Michael J. Happe
			Michael J. Happe
			Chief Executive Officer, President

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with this Quarterly Report on Form 10-Q of Winnebago Industries, Inc. for the quarter ended May 26, 2018, I, Bryan L. Hughes, Vice President, Chief Financial Officer of Winnebago Industries, Inc., certify that pursuant to 18 U.S.C. §1350 as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

a. This Quarterly Report on Form 10-Q (“periodic report”) of Winnebago Industries, Inc. (the “issuer”), for the fiscal quarter ended May 26, 2018 as filed with the Securities and Exchange Commission on the date of this certificate, which this statement accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and

b. the information contained in this periodic report fairly represents, in all material respects, the financial condition and results of operations of the issuer.

Date:	June 21, 2018	By:	/s/ Bryan L. Hughes
			Bryan L. Hughes
			Vice President, Chief Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	May 26, 2018	Jun. 18, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	WINNEBAGO INDUSTRIES INC
Entity Central Index Key	0000107687
Current Fiscal Year End Date	--08-25
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	May 26, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		31,529,354

XML

Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	May 26, 2018	May 27, 2017	May 26, 2018	May 27, 2017
Net revenues	$ 562,261	$ 476,364	$ 1,480,641	$ 1,092,183
Cost of goods sold	476,747	405,560	1,264,635	943,188
Gross profit	85,514	70,804	216,006	148,995
SG&A:
Selling	13,100	10,141	37,443	25,564
General and administrative	21,404	15,194	57,088	37,640
Postretirement health care benefit income	0	0	0	(24,796)
Transaction costs	800	450	850	6,374
Amortization of intangible assets	1,933	10,159	5,921	22,578
Total SG&A	37,237	35,944	101,302	67,360
Operating income	48,277	34,860	114,704	81,635
Interest expense	4,172	5,265	13,871	11,571
Non-operating income	(100)	(54)	(212)	(137)
Income before income taxes	44,205	29,649	101,045	70,201
Provision for income taxes	11,684	10,258	28,478	23,794
Net income	$ 32,521	$ 19,391	$ 72,567	$ 46,407
Income per common share:
Basic	$ 1.03	$ 0.61	$ 2.30	$ 1.53
Diluted	$ 1.02	$ 0.61	$ 2.28	$ 1.52
Weighted average common shares outstanding:
Basic (in shares)	31,582	31,587	31,617	30,333
Diluted (in shares)	31,753	31,691	31,825	30,448
Dividends paid per common share (in dollars per share)	$ 0.10	$ 0.10	$ 0.30	$ 0.30
Other comprehensive income (loss):
Amortization of prior service credit (net of tax of $0, $0, $0 and $15,409)	$ 0	$ 0	$ 0	$ (25,035)
Amortization of net actuarial loss (net of tax of $3, $3, $9 and $5,971)	7	6	20	9,702
Plan amendment (net of tax of $0, $0, $0 and $2,402)	0	0	0	3,903
Change in fair value of interest rate swap (net of tax of $42, $36, $877 and $306)	129	(58)	2,046	(497)
Total other comprehensive income (loss)	136	(52)	2,066	(11,927)
Comprehensive income	$ 32,657	$ 19,339	$ 74,633	$ 34,480

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Consolidated Statements of Operations and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 26, 2018	May 27, 2017	May 26, 2018	May 27, 2017
Amortization of prior service credit, tax	$ 0	$ 0	$ 0	$ 15,409
Amortization of net actuarial loss, tax	3	3	9	5,971
Plan amendment, tax	0	0	0	2,402
Change in value of interest rate swap, tax	$ 42	$ 36	$ 877	$ 306

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Consolidated Balance Sheets - USD ($) $ in Thousands	May 26, 2018	Aug. 26, 2017
Current assets:
Cash and cash equivalents	$ 39,029	$ 35,945
Receivables, less allowance for doubtful accounts ($172 and $183)	148,948	124,539
Inventories	177,378	142,265
Prepaid expenses and other assets	8,408	11,388
Total current assets	373,763	314,137
Property, plant and equipment, net	82,481	71,560
Other assets:
Goodwill	244,684	242,728
Other intangible assets, net	222,519	228,440
Investment in life insurance	28,130	27,418
Deferred income taxes	7,043	12,736
Other assets	7,090	5,493
Total assets	965,710	902,512
Current liabilities:
Accounts payable	88,397	79,194
Current maturities of long-term debt	0	2,850
Income taxes payable	6,186	7,450
Accrued expenses:
Accrued compensation	27,989	24,546
Product warranties	37,444	30,805
Self-insurance	9,571	6,122
Promotional	6,523	6,560
Accrued interest	3,177	3,128
Other	11,119	6,503
Total current liabilities	190,406	167,158
Non-current liabilities:
Long-term debt, less current maturities	251,798	271,726
Unrecognized tax benefits	1,703	1,606
Deferred compensation benefits, net of current portion	15,732	19,270
Other	250	1,078
Total non-current liabilities	269,483	293,680
Stockholders' equity:
Capital stock common (par value $0.50; authorized 60,000 shares, issued 51,776 shares)	25,888	25,888
Additional paid-in capital	84,179	80,401
Retained earnings	742,148	679,138
Accumulated other comprehensive income ( loss)	1,043	(1,023)
Treasury stock, at cost (20,247 and 20,183 shares)	(347,437)	(342,730)
Total shareholders' equity	505,821	441,674
Total liabilities and shareholders' equity	$ 965,710	$ 902,512

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Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	May 26, 2018	Aug. 26, 2017
Statement of Financial Position [Abstract]
Receivables, less allowance for doubtful accounts	$ 172	$ 183
Capital stock common, par value (in dollars per share)	$ 0.50	$ 0.50
Capital stock common, shares authorized (in shares)	60,000	60,000
Capital stock common, shares issued (in shares)	51,776	51,776
Treasury stock, at cost, shares (in shares)	20,247	20,183

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	May 26, 2018	May 27, 2017
Operating activities:
Net income	$ 72,567	$ 46,407
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	6,679	5,287
Amortization of intangible assets	5,921	22,578
Amortization of debt issuance costs	1,222	889
LIFO expense	1,238	897
Stock-based compensation	4,983	2,206
Deferred income taxes	4,807	6,396
Deferred compensation expense and postretirement benefit income	852	(23,687)
Other	(658)	(946)
Change in assets and liabilities:
Inventories	(36,351)	(7,497)
Receivables, prepaid and other assets	(21,275)	(21,336)
Income taxes and unrecognized tax benefits	(1,081)	5,806
Accounts payable and accrued expenses	24,506	32,778
Postretirement and deferred compensation benefits	(2,398)	(2,428)
Net cash provided by operating activities	61,012	67,350
Investing activities:
Purchases of property and equipment	(18,123)	(9,740)
Proceeds from the sale of property	316	219
Acquisition of business, net of cash acquired	0	(394,694)
Other	(83)	684
Net cash used in investing activities	(17,890)	(403,531)
Financing activities:
Payments for repurchases of common stock	(6,481)	(1,367)
Payments of cash dividends	(9,557)	(9,554)
Payments of debt issuance costs	0	(11,020)
Borrowings on credit agreement	19,700	366,400
Repayments of credit agreement	(43,700)	(69,400)
Other	0	(92)
Net cash (used in) provided by financing activities	(40,038)	274,967
Net increase (decrease) in cash and cash equivalents	3,084	(61,214)
Cash and cash equivalents at beginning of period	35,945	85,583
Cash and cash equivalents at end of period	39,029	24,369
Supplemental cash flow disclosure:
Income taxes paid, net	24,833	11,811
Interest paid	11,935	7,288
Non-cash transactions:
Issuance of Winnebago common stock for acquisition of business	0	124,066
Capital expenditures in accounts payable	607	279
Dividends Payable, Current	$ 0	$ 3,184

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Condensed Consolidated Stockholders' Statement of Equity - USD ($) $ in Thousands	Total	Common stock and paid-in capital	Retained earnings	Accumulated comprehensive income (loss)	Treasury stock
Balance, beginning of period at Aug. 27, 2016		$ 58,605	$ 620,546	$ 10,975	$ (421,767)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock		44,981
Stock-based compensation, net of forfeitures		2,146			60
Net income	$ 46,407		46,407
Common stock dividends			(12,738)
Other comprehensive income (loss)	(11,927)			(11,927)
Issuance of common stock					80,329
Payments for the purchase of common stock					(1,367)
Balance, end of period at May. 27, 2017	416,250	105,732	654,215	(952)	(342,745)
Balance, beginning of period at Feb. 25, 2017		105,093	641,192	(900)	(342,770)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock		(2)
Stock-based compensation, net of forfeitures		641			24
Net income	19,391		19,391
Common stock dividends			(6,368)
Other comprehensive income (loss)	(52)			(52)
Issuance of common stock					3
Payments for the purchase of common stock					(2)
Balance, end of period at May. 27, 2017	416,250	105,732	654,215	(952)	(342,745)
Balance, beginning of period at Aug. 26, 2017	441,674	106,289	679,138	(1,023)	(342,730)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock		(1,625)
Stock-based compensation, net of forfeitures		5,403			62
Net income	72,567		72,567
Common stock dividends			(9,557)
Other comprehensive income (loss)	2,066			2,066
Issuance of common stock					1,712
Payments for the purchase of common stock					(6,481)
Balance, end of period at May. 26, 2018	505,821	110,067	742,148	1,043	(347,437)
Balance, beginning of period at Feb. 24, 2018		106,609	712,809	907	(342,516)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock		(57)
Stock-based compensation, net of forfeitures		3,515			25
Net income	32,521		32,521
Common stock dividends			(3,182)
Other comprehensive income (loss)	136			136
Issuance of common stock					57
Payments for the purchase of common stock					(5,003)
Balance, end of period at May. 26, 2018	$ 505,821	$ 110,067	$ 742,148	$ 1,043	$ (347,437)

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Basis of Presentation

9 Months Ended

May 26, 2018

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The "Company," "we," "our" and "us" are used interchangeably to refer to Winnebago Industries, Inc. and its wholly-owned subsidiaries, as appropriate in the context.

We were incorporated under the laws of the state of Iowa on February 12, 1958 and adopted our present name on February 28, 1961. Our primary offices are located at 605 West Crystal Lake Road in Forest City, Iowa. Our telephone number is (641) 585-3535; our website is www.winnebagoind.com. Our common stock trades on the NYSE under the symbol WGO.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In our opinion, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation as prescribed by GAAP.

The consolidated statements of income and comprehensive income for the third quarter and first nine months of Fiscal 2018 are not necessarily indicative of the results to be expected for the full year. These interim financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K for the fiscal year ended August 26, 2017.

Fiscal Period

We follow a 52-/53-week fiscal year, ending the last Saturday in August. Both Fiscal 2018 and Fiscal 2017 are 52-week years.

Recently Adopted Accounting Pronouncements

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for the related income taxes, forfeitures, statutory tax withholding requirements and classification in the statement of cash flows. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016 (our Fiscal 2018), including interim periods within those annual reporting periods. We adopted this ASU in the interim quarterly reporting period ended November 25, 2017. Amendments requiring recognition of excess tax benefits and tax deficiencies in the statements of income and comprehensive income resulted in $0.6 million of excess tax benefits recorded as a reduction of income tax expense upon adoption for the three months ended November 25, 2017. The reduction in income tax expense also reduced the effective tax rate by 2.2% and added $0.02 to income per share for the quarter ended November 25, 2017. Amendments related to the presentation of excess tax benefits and employee taxes paid when an employer withholds shares to meet the minimum statutory withholding requirement required no change to the statement of cash flows. There were no material impacts on the consolidated financial statements of the Company, which adopted a policy of accounting for forfeitures when they occur.

In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330),which requires inventory measured using any method other than LIFO or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Under this ASU, subsequent measurement of inventory using the LIFO and retail inventory method is unchanged. ASU 2015-11 is effective prospectively for fiscal years beginning after December 15, 2016 (our Fiscal 2018), including interim periods within those annual reporting periods. We adopted this ASU on August 27, 2017, and there was no material impact on our consolidated financial statements.

New Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which establishes a comprehensive new model for the recognition of revenue from contracts with customers. This model is based on the core principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities have the option of using either retrospective transition or a modified approach in applying the new standard. The standard is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2017 (our Fiscal 2019). Early adoption is permitted.

We have performed an evaluation that included a review of representative contracts with key customers and the performance obligations contained therein, as well as a review of our commercial terms and practices across each of our segments. Based on our preliminary review, we do not expect adoption to have a material impact on our consolidated financial statements but further work to substantiate this preliminary conclusion is underway. We continue to assess the impact of the standard on our disclosures and our internal controls over financial reporting.

We plan to adopt this standard in the first quarter of our Fiscal 2019. Providing we ultimately conclude that the impacts of adoption are immaterial, we would expect to use the modified retrospective method. Under this method, we would recognize the cumulative effect of the changes in retained earnings at the date of adoption, but would not restate prior periods.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. The new standard must be adopted on a modified retrospective basis for fiscal years beginning after December 15, 2018 (our Fiscal 2020), including interim periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230), which provides guidance for eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective retrospectively for annual reporting periods beginning after December 15, 2017 (our Fiscal 2019), including interim periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and do not expect adoption to have a material impact.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), which improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. ASU 2017-12 is effective for annual reporting periods beginning after December 15, 2018 (our Fiscal 2020), including interim periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220), which allows for a reclassification of stranded tax effects from the Tax Act from AOCI to retained earnings. This ASU is effective for fiscal years beginning after December 15, 2018 (our Fiscal 2020). We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and do not expect adoption to have a material impact.

Subsequent Event

On June 4, 2018, we acquired 100% of the ownership interests of Chris-Craft, a privately-owned company based in Sarasota Florida.  Chris-Craft manufactures and sells premium quality boats in the recreational powerboat industry through an established global network of independent authorized dealers.

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Business Combination, Goodwill and Other Intangible Assets

9 Months Ended

May 26, 2018

Business Combinations [Abstract]

Business Combination, Goodwill and Other Intangible Assets

Business Combination, Goodwill and Other Intangible Assets

We acquired 100% of the ownership interests of Grand Design on November 8, 2016 in accordance with the Securities Purchase Agreement for an aggregate purchase price of $520.5 million, which was paid in cash and Winnebago shares as follows:

(In thousands, except shares and per share data)	November 8, 2016
Cash	$	396,442
Winnebago shares: 4,586,555 at $27.05 per share	124,066
Total	$	520,508

The cash portion was funded from cash on hand and borrowings under our ABL and Term Loan agreements. The stock was valued using our closing share price on the date of closing.

The acquisition has been accounted for in accordance with ASC 805, Business Combinations, using the acquisition method of accounting. Under the acquisition method of accounting, the total purchase price was allocated to the tangible and intangible assets of Grand Design acquired, based on their fair values at the date of the acquisition. The purchase price allocation was finalized during the first quarter of Fiscal 2018.

The final allocation of the purchase price to assets acquired and liabilities assumed was as follows:

(In thousands)	November 8, 2016
Cash	$	1,748
Accounts receivable	32,834
Inventories	15,300
Prepaid expenses and other assets	3,037
Property, plant and equipment	8,998
Goodwill	243,456
Other intangible assets	253,100
Total assets acquired	558,473
Accounts payable	11,163
Accrued compensation	3,615
Product warranties	12,904
Promotional	3,976
Other	1,496
Deferred tax liabilities	4,811
Total liabilities assumed	37,965
Total purchase price	$	520,508

The acquisition of 100% of the ownership interests of Grand Design occurred in two steps: (1) direct purchase of 89.34% of Grand Design member interests and (2) simultaneous acquisition of the remaining 10.66% of Grand Design member interests via the purchase of 100% of the shares of Blocker Corporation, which held the remaining 10.66% of the Grand Design member interests.  We agreed to acquire Blocker Corporation as part of the Securities Purchase Agreement, and we did not receive a step-up in basis for 10.66% of the Grand Design assets.  As a result, we established certain deferred tax liabilities on the opening balance sheet that relate to Blocker Corporation.

The goodwill recognized is primarily attributable to the value of the workforce, reputation of founders, customer and dealer growth opportunities and expected synergies. Key areas of cost synergies include increased purchasing power for raw materials and supply chain consolidation. Goodwill is expected to be mostly deductible for tax purposes. As of May 26, 2018, goodwill increased $2.0 million as compared to the end of Fiscal 2017. The increase is due to the final purchase price adjustment made for taxes in the first quarter of Fiscal 2018.

The allocation of the purchase price to the net assets acquired and liabilities assumed resulted in the recognition of intangible assets with fair value on the closing date of November 8, 2016 and amortization accumulated from the closing date through May 26, 2018 as follows:

		May 26, 2018					August 26, 2017
(In thousands)	Weighted Average Life-Years	Cost			Accumulated Amortization		Cost			Accumulated Amortization
Trade name	Indefinite	$	148,000		$	—	$	148,000		$	—
Dealer network	12.0	80,500			10,365		80,500			5,348
Backlog	0.5	18,000			18,000		18,000			18,000
Non-compete agreements	4.0	4,600			1,836		4,600			1,116
Leasehold interest-favorable	8.1	2,000			380		2,000			196
Total		253,100			$	30,581	253,100			$	24,660
Accumulated amortization		(30,581		)			(24,660		)
Net book value of intangible assets		$	222,519				$	228,440

We used the income approach to value certain intangible assets.  Under the income approach, an intangible asset’s fair value is equal to the present value of future economic benefits to be derived from ownership of the asset. We used the income approach known as the relief from royalty method to value the trade name. The relief from royalty method is based on the hypothetical royalty stream that would be received if we were to license the trade name and is based on expected revenues from such license. The fair value of the dealer network was estimated using an income approach known as the cost to recreate/cost savings method. This method uses the replacement of the asset as an indicator of the fair value of the asset. The useful life of the intangible assets was determined considering the period of expected cash flows used to measure the fair value of the intangible assets adjusted as appropriate for the entity-specific factors, including legal, regulatory, contractual, competitive, economic or other factors that may limit the useful life of the intangible assets.

For the three months ended May 26, 2018 and May 27, 2017, amortization of intangible assets charged to operations was$1.9 millionand$10.2 million, respectively.For the nine months ended May 26, 2018 and May 27, 2017, amortization of intangible assets charged to operations was$5.9 millionand$22.6 million, respectively. The weighted average remaining amortization period for intangible assets as of May 26, 2018 was approximately10.3years. Remaining estimated aggregate annual amortization expense by fiscal year is as follows:

(In thousands)	Amount
Remainder of 2018	$	1,933
2019	7,733
2020	7,733
2021	7,733
2022	7,106
Thereafter	42,281

Within the Towable segment, the results of Grand Design's operations have been included in our consolidated financial statements from the close of the acquisition. The following table provides net revenues and operating income (which includes amortization expense) from the Grand Design business included in our consolidated results during the nine months ended May 26, 2018 and May 27, 2017 following the November 8, 2016 closing date:

	Nine Months Ended
(In thousands)	May 26, 2018		May 27, 2017
Net revenues	$	719,030	$	366,309
Operating income	91,452		27,083

Unaudited pro forma information has been prepared as if the acquisition had taken place on August 30, 2015. The unaudited pro forma information is not necessarily indicative of the results that we would have achieved had the transaction actually taken place on August 30, 2015, and the unaudited pro forma information does not purport to be indicative of future financial operating results. The unaudited pro forma condensed consolidated financial information does not reflect any operating efficiencies and cost savings that may be realized from the integration of the acquisition. Unaudited pro forma information is as follows:

	Nine Months Ended
(In thousands, except per share data)	May 26, 2018		May 27, 2017(1)
Net revenues	$	1,480,641	$	1,187,849
Net income	72,675		66,009
Income per share - basic	2.30		2.09
Income per share - diluted	2.28		2.08

(1) Net income and income per share include the increased benefit of $16.3 million, net of tax, associated with the termination of the postretirement health care plan in Fiscal 2017.

The unaudited pro forma data above includes the following significant non-recurring adjustments made to account for certain costs, which would have changed if the acquisition of Grand Design had been completed on August 30, 2015:

	Nine Months Ended
(In thousands)	May 26, 2018			May 27, 2017(1)
Amortization of intangibles (1 year or less useful life)	$	(122	)	$	(18,601	)
Increase in amortization of intangibles	—			1,551
Expenses related to business combination (transaction costs)	(50		)	(6,432		)
Interest to reflect new debt structure	—			3,672
Taxes related to the adjustments to the pro forma data and to the income of Grand Design	64			11,513

(1) Pro forma transaction costs include $0.1 million incurred by Grand Design prior to acquisition.

We incurred approximately $6.9 million of acquisition-related costs to date, of which $0.1 million and $6.4 million were expensed during the nine months ended May 26, 2018 and May 27, 2017, respectively.

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Business Segments (Notes)

9 Months Ended

May 26, 2018

Segment Reporting [Abstract]

Business Segments

Business Segments

We report segment information based on the "management" approach defined in ASC 280, Segment Reporting. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable segments.

We have two reportable segments: (1) Motorized products and services and (2) Towable products and services. The Motorized segment includes all products that include a motorized chassis as well as other related manufactured products. The Towable segment includes all products that are not motorized and are generally towed by another vehicle.

We organize our business reporting on a product basis. Each reportable segment is managed separately to better align to our customers, distribution partners and the unique market dynamics of the product groups. We aggregate two operating segments into the Towable reporting segment based upon their similar products, customers, distribution methods, production processes and economic characteristics. The accounting policies of both reportable segments are the same and described in Note 1: Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the fiscal year ended August 26, 2017.

Subsequent to the acquisition of Grand Design in Fiscal 2017, management re-evaluated the manner in which corporate expenses were allocated to the reportable segments. A new corporate allocation policy was adopted in the first quarter of Fiscal 2018 that identifies shared costs and allocates them to the operating segments based on a cost driver most appropriate for the type of cost being allocated. For example, certain costs were allocated based on the financial size of the operating segment, while other costs, where appropriate, were allocated based on the headcount in the operating segments since headcount was deemed the appropriate driver for those types of expenses. Prior year segment information has been restated to conform to the current reporting segment presentation. All corporate expenses were allocated to the operating segments. Assets presented by reportable segment exclude certain corporate assets that cannot reasonably be allocated to the reportable segments. These unallocated corporate assets include cash and deferred tax assets.

We evaluate the performance of our reportable segments based on Adjusted EBITDA after corporate allocations. EBITDA is defined as net income before interest expense, provision for income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation and amortization expense, and other adjustments made in order to present comparable results from period to period. We have included this non-GAAP performance measure as a comparable measure to illustrate the effect of non-recurring transactions occurring during the quarter and improve comparability of our results from period to period.  We believe EBITDA and Adjusted EBITDA provide meaningful supplemental information about our operating performance because each measure excludes amounts that we do not consider part of our core operating results when assessing our performance. Examples of items excluded from Adjusted EBITDA include the postretirement health care benefit income from terminating the plan and transaction costs related to our acquisition of Grand Design. These types of adjustments are also specified in the definition of certain measures required under the terms of our Credit Agreement.

Management uses these non-GAAP financial measures (a) to evaluate our historical and prospective financial performance and trends as well as its performance relative to competitors and peers; (b) to measure operational profitability on a consistent basis; (c) in presentations to the members of our board of directors to enable our board of directors to have the same measurement basis of operating performance as is used by management in its assessments of performance and in forecasting and budgeting for our company; (d) to evaluate potential acquisitions; and, (e) to ensure compliance with covenants and restricted activities under the terms of our Credit Agreement. We believe these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties to evaluate companies in our industry.

The following table shows information by reporting segment:

	Three Months Ended				Nine Months Ended
(In thousands)	May 26, 2018		May 27, 2017		May 26, 2018		May 27, 2017
Net revenues
Motorized	$	249,245	$	241,670	$	641,602	$	635,732
Towable	313,016		234,694		839,039		456,451
Consolidated	$	562,261	$	476,364	$	1,480,641	$	1,092,183
Adjusted EBITDA
Motorized	$	9,319	$	14,567	$	16,518	$	36,521
Towable	44,042		32,761		111,636		54,557
Consolidated	$	53,361	$	47,328	$	128,154	$	91,078
Capital expenditures
Motorized	$	2,643	$	1,527	$	7,383	$	6,626
Towable	3,805		1,275		10,740		3,114
Consolidated	$	6,448	$	2,802	$	18,123	$	9,740
Total assets
Motorized	$	301,667	$	275,673	$	301,667	$	275,673
Towable	613,162		572,977		613,162		572,977
Unallocated corporate assets	50,881		41,701		50,881		41,701
Consolidated	$	965,710	$	890,351	$	965,710	$	890,351

Reconciliation of net income to consolidated Adjusted EBITDA:

	Three Months Ended						Nine Months Ended
(In thousands)	May 26, 2018			May 27, 2017			May 26, 2018			May 27, 2017
Net income	$	32,521		$	19,391		$	72,567		$	46,407
Interest expense	4,172			5,265			13,871			11,571
Provision for income taxes	11,684			10,258			28,478			23,794
Depreciation	2,351			1,859			6,679			5,287
Amortization of intangible assets	1,933			10,159			5,921			22,578
EBITDA	52,661			46,932			127,516			109,637
Postretirement health care benefit income	—			—			—			(24,796		)
Transaction costs	800			450			850			6,374
Non-operating income	(100		)	(54		)	(212		)	(137		)
Adjusted EBITDA	$	53,361		$	47,328		$	128,154		$	91,078

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Concentration Risk

9 Months Ended

May 26, 2018

Risks and Uncertainties [Abstract]

Concentration Risk

Concentration Risk

During the first nine months of Fiscal 2018, no dealer organization accounted for 10% or more of our consolidated revenues. During the first nine months of Fiscal 2017, La Mesa RV Center, Inc. accounted for 10.9% of our consolidated net revenue and FreedomRoads, LLC accounted for 10.6% of our consolidated net revenues. These dealers declined on a relative basis due to the growth of other dealers and a shift in dealer mix attributable to the addition of Grand Design revenue.

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Derivatives, Investments and Fair Value Measurements

9 Months Ended

May 26, 2018

Fair Value Disclosures [Abstract]

Derivatives, Investments and Fair Value Measurements

Derivatives, Investments and Fair Value Measurements

Assets and Liabilities that are Measured at Fair Value on a Recurring Basis

We account for fair value measurements in accordance with ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measurement and expands disclosure about fair value measurement. The fair value hierarchy requires the use of observable market data when available. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.

The following tables set forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at May 26, 2018 and August 26, 2017 according to the valuation techniques we used to determine their fair values:

			Fair Value Measurements Using Inputs Considered As
(In thousands)	Fair Value at May 26, 2018		Level 1 Quoted Prices in Active Markets for Identical Assets		Level 2 Significant Other Observable Inputs		Level 3 Significant Unobservable Inputs
Assets that fund deferred compensation:
Domestic equity funds	$	1,474	$	1,436	$	38	$	—
International equity funds	161		142		19		—
Fixed income funds	150		66		84		—
Interest rate swap contract	2,095		—		2,095		—
Total assets at fair value	$	3,880	$	1,644	$	2,236	$	—

				Fair Value Measurements Using Inputs Considered As
(In thousands)	Fair Value at August 26, 2017			Level 1 Quoted Prices in Active Markets for Identical Assets		Level 2 Significant Other Observable Inputs			Level 3 Significant Unobservable Inputs
Assets that fund deferred compensation:
Domestic equity funds	$	1,708		$	1,671	$	37		$	—
International equity funds	174			157		17			—
Fixed income funds	259			170		89			—
Interest rate swap contract	(828		)	—		(828		)	—
Total assets (liabilities) at fair value	$	1,313		$	1,998	$	(685	)	$	—

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Assets that fund deferred compensation

Our assets that fund deferred compensation are marketable equity securities measured at fair value using quoted market prices and primarily consist of equity-based mutual funds. The majority of securities are classified as Level 1 as they are traded in an active market for which closing stock prices are readily available. These securities fund the Executive Share Option Plan and the Executive Deferred Compensation Plan (see Note 10). The proportion of the assets that will fund options that expire within a year are included in prepaid expenses and other current assets in the accompanying consolidated balance sheets. The remaining assets are classified as non-current and are included in other assets.

Interest Rate Swap Contract

Under terms of our Credit Agreement (see Note 9), we were previously required to hedge a portion of the floating interest rate exposure. In accordance with that requirement, on January 23, 2017, we entered into an interest swap contract, which effectively fixed our interest rate for our Term Loan for a notional amount that reduces each December during the swap contract. As of May 26, 2018, we had $170.0 million of our Term Loan fixed at an interest rate of 5.32%. As of August 26, 2017, we had $200.0 million of our Term Loan fixed at an interest rate of 6.32%.

The fair value of the interest rate swap based on a Level 2 valuation was an asset of $2.1 million as of May 26, 2018. The fair value is classified as Level 2 as it is corroborated based on observable market data. This amount is classified as non-current and included in other assets on the consolidated balance sheets. The change in value in the third quarter was predominately recorded to accumulated other comprehensive income on the consolidated balance sheets since the interest rate swap has been designated for hedge accounting.

Assets and Liabilities that are measured at Fair Value on a Non-recurring Basis

Our non-financial assets, which include goodwill, intangible assets, and property, plant and equipment, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur, or if an annual impairment test is required, we must evaluate the non-financial asset for impairment. If an impairment did occur, the asset is required to be recorded at the estimated fair value. During the first nine months of Fiscal 2018 and Fiscal 2017, no impairments were recorded for non-financial assets.

The carrying value of our debt as of May 26, 2018 approximates fair value as interest is at variable market rates.

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Inventories

9 Months Ended

May 26, 2018

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consist of the following:

(In thousands)	May 26, 2018			August 26, 2017
Finished goods	$	34,954		$	16,947
Work-in-process	60,206			60,818
Raw materials	118,875			99,919
Total	214,035			177,684
LIFO reserve	(36,657		)	(35,419		)
Total inventories	$	177,378		$	142,265

The above value of inventories, before reduction for the LIFO reserve, approximates replacement cost at the respective dates. Of the $214.0 million and $177.7 million inventory at May 26, 2018 and August 26, 2017, respectively, $179.1 million and $149.8 million is valued on a LIFO basis. The remaining inventories of $34.9 million and $27.9 million at May 26, 2018 and August 26, 2017, respectively, are valued on a FIFO basis.

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Property, Plant and Equipment

9 Months Ended

May 26, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and consists of the following:

(In thousands)	May 26, 2018			August 26, 2017
Land	$	4,647		$	3,914
Buildings and building improvements	82,780			73,831
Machinery and equipment	101,525			99,952
Software	22,078			17,844
Transportation	8,543			8,993
Total property, plant and equipment, gross	219,573			204,534
Less accumulated depreciation	(137,092		)	(132,974		)
Total property, plant and equipment, net	$	82,481		$	71,560

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Warranty

9 Months Ended

May 26, 2018

Product Warranties Disclosures [Abstract]

Warranty

Warranty

We provide certain service and warranty on our products. From time to time, we also voluntarily incur costs for certain warranty-type expenses occurring after the normal warranty period to help protect the reputation of our products and the goodwill of our customers. Warranty expense is affected by dealership labor rates, the cost of parts and the frequency of claims.  Estimated costs related to product warranty are accrued at the time of sale and are based upon historical warranty and service claims experience. Adjustments are made to accruals as claim data and cost experience becomes available.

Changes in our product warranty liability are as follows:

	Three Months Ended						Nine Months Ended
(In thousands)	May 26, 2018			May 27, 2017			May 26, 2018			May 27, 2017
Balance at beginning of period	$	34,988		$	25,030		$	30,805		$	12,412
Provision	11,645			10,202			31,881			21,832
Claims paid	(9,189		)	(7,176		)	(25,242		)	(19,092		)
Acquisition of Grand Design	—			—			—			12,904
Balance at end of period	$	37,444		$	28,056		$	37,444		$	28,056

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Long-Term Debt (Notes)

9 Months Ended

May 26, 2018

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

The components of long-term debt are as follows:

(In thousands)	May 26, 2018			August 26, 2017
ABL	$	—		$	—
Term Loan	260,000			284,000
Gross long-term debt, excluding issuance costs	260,000			284,000
Less: debt issuance cost, net	(8,202		)	(9,424		)
Long-term debt, net of issuance costs	251,798			274,576
Less: current maturities	—			(2,850		)
Long-term debt, less current maturities	$	251,798		$	271,726

On November 8, 2016, we entered into a $125.0 million ABL and a $300.0 million Term Loan with JPMorgan Chase Bank, N.A. ("Credit Agreement"). On December 8, 2017, we amended our Credit Agreement, which decreased the interest rate spread by 1.0% on the Term Loan and 0.25% on the ABL. Prior to this amendment, $19.7 million was drawn on the ABL and used to make a voluntary prepayment on our Term Loan.

Under the ABL, we have a five-year credit facility on a revolving basis, subject to availability under a borrowing base consisting of eligible accounts receivable and eligible inventory. The ABL is available for issuance of letters of credit to a specified limit of $10.0 million. We pay a commitment fee in the range of 0.25% - 0.375% on the amount of facility available, but unused. We can elect to base the interest rate on various base rates plus specific spreads depending on the amount of borrowings outstanding. We currently pay interest on ABL borrowings at a floating rate based upon LIBOR plus 1.25%.

Under the Term Loan, we can elect to base the interest rate on various base rates plus specific spreads. The interest rate as of May 26, 2018 was based on LIBOR plus 3.5%. The Term Loan agreement currently requires quarterly payments in the amount of $3.75 million with all amounts then outstanding due on November 8, 2023. We have made voluntary prepayments that have extended the opportunity to defer quarterly payments, at our option, until December 31, 2019. There are mandatory prepayments for proceeds of new debt, sale of significant assets or subsidiaries, and excess cash flow as those terms are defined in the Term Loan. Incremental term loans of up to $125.0 million are available if certain financial ratios and other conditions are met.

The Credit Agreement contains certain financial covenants. As of May 26, 2018, we are in compliance with all financial covenants of the Credit Agreement.

The ABL and Term Loan are guaranteed by Winnebago Industries, Inc. and all material direct and indirect domestic subsidiaries, and are secured by a security interest in substantially all of our assets, except minor excluded assets.

Unamortized debt issuance costs of $0.6 million related to the voluntary prepayment on the Term Loan was expensed in the nine months ended May 26, 2018.

Aggregate contractual maturities of debt in future fiscal years are as follows as of May 26, 2018:

(In thousands)	Amount
2018	$	—
2019	—
2020	10,250
2021	15,000
2022	15,000
Thereafter	219,750
Total debt	$	260,000

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Employee and Retiree Benefits

9 Months Ended

May 26, 2018

Retirement Benefits [Abstract]

Employee and Retiree Benefits

Employee and Retiree Benefits

Deferred compensation liabilities are as follows:

(In thousands)	May 26, 2018			August 26, 2017
Non-qualified deferred compensation	$	15,244		$	16,476
Executive share option plan liability	1,256			1,498
SERP benefit liability	2,293			2,534
Executive deferred compensation	422			447
Officer stock-based compensation	1,096			1,664
Total deferred compensation	20,311			22,619
Less current portion	(4,579		)	(3,349		)
Long-term deferred compensation	$	15,732		$	19,270

Postretirement Health Care Benefits

Historically, we provided certain health care and other benefits for retired employees hired before April 1, 2001, who had fulfilled eligibility requirements at age 55 with 15 years of continuous service. During the first quarter of Fiscal 2017, we announced the termination of the remaining postretirement health care benefits to all participants. As of January 1, 2017, postretirement health care benefits were discontinued.

Net periodic postretirement benefit income consisted of the following components:

	Three Months Ended				Nine Months Ended
(In thousands)	May 26, 2018		May 27, 2017		May 26, 2018		May 27, 2017
Interest cost	$	—	$	—	$	—	$	29
Service cost	—		—		—		16
Amortization of prior service benefit	—		—		—		(40,444		)
Amortization of net actuarial loss	—		—		—		15,648
Net periodic postretirement benefit income	$	—	$	—	$	—	$	(24,751	)
Payments for postretirement health care	$	—	$	—	$	—	$	68

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Shareholders' Equity

9 Months Ended

May 26, 2018

Stockholders' Equity Note [Abstract]

Shareholders' Equity

Shareholders' Equity

Stock-Based Compensation

We have a 2014 Omnibus Equity, Performance Award, and Incentive Compensation Plan (as amended, the "Plan") in place as approved by shareholders, which allows us to grant or issue non-qualified stock options, incentive stock options, share awards, and other equity compensation to key employees and to non-employee directors.

On October 18, 2017 and October 11, 2016, the Human Resources Committee of the Board of Directors granted an aggregate of 62,660 and 97,600 shares, respectively, of restricted common stock to our key employees and non-employee directors under the Plan. The value of each restricted stock award is determined using the intrinsic value method, which, in this case, is based on the number of shares granted and the closing price of our common stock on the date of grant.

Stock-based compensation expense was $1.4 million and $0.7 million during the third quarters of Fiscal 2018 and 2017, respectively. Stock-based compensation expense was $5.0 million and $2.2 million during the first nine months of Fiscal 2018 and 2017, respectively. Compensation expense is recognized over the requisite service period of the award.

Dividends

On October 18, 2017, the Board of Directors declared a quarterly cash dividend of $0.10 per share of common stock, which was paid on November 29, 2017 to shareholders of record at the close of business on November 15, 2017.

On December 13, 2017, the Board of Directors declared a quarterly cash dividend of $0.10 per share of common stock, which was paid on January 24, 2018 to shareholders of record at the close of business on January 10, 2018.

On March 14, 2018, the Board of Directors declared a quarterly cash dividend of $0.10 per share of common stock, which was paid on April 25, 2018 to shareholders of record at the close of business on April 11, 2018.

On May 23, 2018, the Board of Directors declared a quarterly cash dividend of $0.10 per share of common stock, payable on July 5, 2018 to shareholders of record at the close of business on June 20, 2018.

Share Registration

As a result of the acquisition of Grand Design, we agreed to register the 4,586,555 shares of common stock issued to the Summit Sellers and the RDB Sellers pursuant to the terms of a registration rights agreement. Under the registration rights agreement, we filed a shelf registration statement on January 20, 2017 to register these shares for resale. On April 11, 2017, pursuant to an underwriting agreement dated as of April 5, 2017, by and among the Company, the Summit Sellers and Morgan Stanley & Co., LLC, the Summit Sellers sold 2,293,277 shares of common stock in an underwritten block trade.

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Contingent Liabilites and Commitments

9 Months Ended

May 26, 2018

Commitments and Contingencies Disclosure [Abstract]

Contingent Liabilities and Commitments

Contingent Liabilities and Commitments

Repurchase Commitments

Generally, manufacturers in the RV industry enter into repurchase agreements with lending institutions that have provided wholesale floorplan financing to dealers. Most dealers' RVs are financed on a "floorplan" basis under which a bank or finance company lends the dealer all, or substantially all, of the purchase price, collateralized by a security interest in the RVs purchased.

Our repurchase agreements provide that, in the event of default by the dealer on the agreement to pay the lending institution, we will repurchase the financed merchandise. The terms of these agreements, which generally can last up to 18 months, provide that our liability will be the lesser of remaining principal owed by the dealer to the lending institution, or dealer invoice less periodic reductions based on the time since the date of the original invoice. In certain instances, we also repurchase inventory from our dealers due to state law or regulatory requirements that govern voluntary or involuntary relationship terminations. Although laws vary from state to state, some states have laws in place that require manufacturers of RVs to repurchase current inventory if a dealership exits the business. Our total contingent liability on all repurchase agreements was approximately $920.1 million and $713.1 million at May 26, 2018 and August 26, 2017, respectively, with the increase attributed primarily due to growth in the Towable segment.

Our risk of loss related to these repurchase commitments is significantly reduced by the potential resale value of any products that are subject to repurchase and is spread over numerous dealers and lenders. The aggregate contingent liability related to our repurchase agreements represents all financed dealer inventory at the period reporting date subject to a repurchase agreement, net of the greater of periodic reductions per the agreement or dealer principal payments. Based on the repurchase exposure as previously described and our historical loss experience, we established an associated loss reserve. Our accrued losses on repurchases were $1.0 million as of May 26, 2018 and $0.7 million as of August 26, 2017 and are included in accrued expenses - other on the condensed consolidated balance sheets. Repurchase risk is affected by the credit worthiness of our dealer network, and we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions used to establish the loss reserve for repurchase commitments.

There was no material activity related to repurchase agreements during the three and nine months ended May 26, 2018 and May 27, 2017.

Litigation

We are involved in various legal proceedings that are ordinary and routine litigation incidental to our business, some of which are covered in whole or in part by insurance. While we believe the ultimate disposition of litigation will not have material adverse effect on our financial position, results of operations or liquidity, there exists the possibility that such litigation may have an impact on our results for a particular reporting period in which litigation effects become probable and reasonably estimable.  Though we do not believe there is a reasonable likelihood that there will be a material change related to these matters, litigation is subject to inherent uncertainties and management’s view of these matters may change in the future.

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Income Taxes

9 Months Ended

May 26, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We account for income taxes under ASC 740, Income Taxes. The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns.

Our effective tax rate decreased from 33.9% for the nine months ended May 27, 2017 to 28.2% for the nine months ended May 26, 2018 due primarily to the enactment of the Tax Act on December 22, 2017. One of the most significant provisions of this legislation was a reduction in the Federal corporate income tax rate from 35% to 21% effective beginning January 1, 2018. With our fiscal year ending on August 25, 2018, our blended Federal statutory tax rate for Fiscal 2018 is expected to be approximately 26%. Most of the remaining significant provisions of the Tax Act take effect in our Fiscal 2019.

In December 2017, the SEC issued SAB 118, which has since been codified by the release of ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, to provide guidance for companies that allows for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts under ASC 740. In accordance with this guidance, a company must reflect the income tax effect of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company's accounting for certain income tax effects of the Tax Act is incomplete, but it is able to determine a reasonable estimate, the company must record a provisional estimate in the financial statements.

In accordance with ASC 740, as of the date of enactment, and during the three months ended February 24, 2018, we recorded a non-cash provisional estimate of $1.4 million to income tax expense and a corresponding reduction in the net deferred tax asset as a result of revaluing all deferred tax assets and liabilities at the newly enacted Federal corporate income tax rate. For the three months ended May 26, 2018, we recorded an additional non-cash provisional estimate of $0.2 million to income tax expense and a corresponding reduction in the net deferred tax asset based on revisions to the provisional estimate.

We are still analyzing certain aspects of the Tax Act and refining our calculations, which could potentially affect the measurement of our deferred tax balances and cause us to revise our estimate in future periods. These impacts may be material, due to, among other things, further refinement of our calculations, changes in interpretations of the Tax Act, or issuance of additional guidance by the relevant tax authorities.

We file a US Federal tax return, as well as returns in various international and state jurisdictions. Although certain years are no longer subject to examination by the IRS and various state taxing authorities, net operating loss carryforwards generated in those years may still be adjusted upon examination by the IRS or state taxing authorities. As of May 26, 2018, our Federal returns from Fiscal 2014 to present continue to be subject to review by the IRS. With few exceptions, the state returns from Fiscal 2013 to present continue to be subject to review by the state taxing jurisdictions.

As of May 26, 2018, our unrecognized tax benefits were $1.7 million, including accrued interest and penalties of $0.5 million. If we were to prevail on all unrecognized tax benefits recorded, $1.5 million of the $1.7 million would benefit the overall effective tax rate. It is our policy to recognize interest and penalties accrued relative to unrecognized tax benefits as tax expense. We do not believe that there will be a significant change in the total amount of unrecognized tax benefits within the next twelve months.

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Income Per Share

9 Months Ended

May 26, 2018

Earnings Per Share [Abstract]

Income Per Share

Income Per Share

The following table reflects the calculation of basic and diluted income per share:

	Three Months Ended				Nine Months Ended
(In thousands, except per share data)	May 26, 2018		May 27, 2017		May 26, 2018		May 27, 2017
Income per share - basic
Net income	$	32,521	$	19,391	$	72,567	$	46,407
Weighted average shares outstanding	31,582		31,587		31,617		30,333
Net income per share - basic	$	1.03	$	0.61	$	2.30	$	1.53
Income per share - diluted
Net income	$	32,521	$	19,391	$	72,567	$	46,407
Weighted average shares outstanding	31,582		31,587		31,617		30,333
Dilutive impact of awards and options outstanding	171		104		208		115
Weighted average shares and potential dilutive shares outstanding	31,753		31,691		31,825		30,448
Net income per share - diluted	$	1.02	$	0.61	$	2.28	$	1.52

The computation of weighted average shares and potential dilutive shares outstanding excludes the effect of options to purchase 89,710 and 61,000 shares of common stock for the three months ended May 26, 2018 and May 27, 2017, respectively, and 58,860 and 61,000 shares of common stock for the nine months ended May 26, 2018 and May 27, 2017, respectively. These amounts were not included in the computation of diluted income per share because they are considered anti-dilutive under the treasury stock method per ASC 260, Earnings Per Share.

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

May 26, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

Changes in AOCI by component, net of tax, were:

	Three Months Ended
	May 26, 2018							May 27, 2017
(In thousands)	Defined Benefit Pension Items			Interest Rate Swap		Total		Defined Benefit Pension Items			Interest Rate Swap			Total
Balance at beginning of period	$	(496	)	$	1,403	$	907	$	(461	)	$	(439	)	$	(900	)
OCI before reclassifications	—			129		129		—			(58		)	(58		)
Amounts reclassified from AOCI	7			—		7		6			—			6
Net current-period OCI	7			129		136		6			(58		)	(52		)
Balance at end of period	$	(489	)	$	1,532	$	1,043	$	(455	)	$	(497	)	$	(952	)

	Nine Months Ended
	May 26, 2018									May 27, 2017
(In thousands)	Defined Benefit Pension Items			Interest Rate Swap			Total			Defined Benefit Pension Items			Interest Rate Swap			Total
Balance at beginning of period	$	(509	)	$	(514	)	$	(1,023	)	$	10,975		$	—		$	10,975
OCI before reclassifications	—			2,046			2,046			3,903			(497		)	3,406
Amounts reclassified from AOCI	20			—			20			(15,333		)	—			(15,333		)
Net current-period OCI	20			2,046			2,066			(11,430		)	(497		)	(11,927		)
Balance at end of period	$	(489	)	$	1,532		$	1,043		$	(455	)	$	(497	)	$	(952	)

Reclassifications out of AOCI in net periodic benefit costs, net of tax, were:

		Three Months Ended				Nine Months Ended
(In thousands)	Location on Consolidated Statements of Income and Comprehensive Income	May 26, 2018		May 27, 2017		May 26, 2018		May 27, 2017
Amortization of prior service credit	SG&A	$	—	$	—	$	—	$	(25,035	)
Amortization of net actuarial loss	SG&A	7		6		20		9,702
Total reclassifications		$	7	$	6	$	20	$	(15,333	)

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Basis of Presentation (Policies)

9 Months Ended

May 26, 2018

Accounting Policies [Abstract]

Fiscal Period [Policy Text Block]

Fiscal Period

We follow a 52-/53-week fiscal year, ending the last Saturday in August. Both Fiscal 2018 and Fiscal 2017 are 52-week years.

New Accounting Pronouncements [Policy Text Block]

Recently Adopted Accounting Pronouncements

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (Topic 718), which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for the related income taxes, forfeitures, statutory tax withholding requirements and classification in the statement of cash flows. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016 (our Fiscal 2018), including interim periods within those annual reporting periods. We adopted this ASU in the interim quarterly reporting period ended November 25, 2017. Amendments requiring recognition of excess tax benefits and tax deficiencies in the statements of income and comprehensive income resulted in $0.6 million of excess tax benefits recorded as a reduction of income tax expense upon adoption for the three months ended November 25, 2017. The reduction in income tax expense also reduced the effective tax rate by 2.2% and added $0.02 to income per share for the quarter ended November 25, 2017. Amendments related to the presentation of excess tax benefits and employee taxes paid when an employer withholds shares to meet the minimum statutory withholding requirement required no change to the statement of cash flows. There were no material impacts on the consolidated financial statements of the Company, which adopted a policy of accounting for forfeitures when they occur.

In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330),which requires inventory measured using any method other than LIFO or the retail inventory method to be subsequently measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Under this ASU, subsequent measurement of inventory using the LIFO and retail inventory method is unchanged. ASU 2015-11 is effective prospectively for fiscal years beginning after December 15, 2016 (our Fiscal 2018), including interim periods within those annual reporting periods. We adopted this ASU on August 27, 2017, and there was no material impact on our consolidated financial statements.

New Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which establishes a comprehensive new model for the recognition of revenue from contracts with customers. This model is based on the core principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities have the option of using either retrospective transition or a modified approach in applying the new standard. The standard is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2017 (our Fiscal 2019). Early adoption is permitted.

We have performed an evaluation that included a review of representative contracts with key customers and the performance obligations contained therein, as well as a review of our commercial terms and practices across each of our segments. Based on our preliminary review, we do not expect adoption to have a material impact on our consolidated financial statements but further work to substantiate this preliminary conclusion is underway. We continue to assess the impact of the standard on our disclosures and our internal controls over financial reporting.

We plan to adopt this standard in the first quarter of our Fiscal 2019. Providing we ultimately conclude that the impacts of adoption are immaterial, we would expect to use the modified retrospective method. Under this method, we would recognize the cumulative effect of the changes in retained earnings at the date of adoption, but would not restate prior periods.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and quantitative disclosures. The new standard must be adopted on a modified retrospective basis for fiscal years beginning after December 15, 2018 (our Fiscal 2020), including interim periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (Topic 230), which provides guidance for eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective retrospectively for annual reporting periods beginning after December 15, 2017 (our Fiscal 2019), including interim periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and do not expect adoption to have a material impact.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815), which improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements. ASU 2017-12 is effective for annual reporting periods beginning after December 15, 2018 (our Fiscal 2020), including interim periods within those annual reporting periods. Early adoption is permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220), which allows for a reclassification of stranded tax effects from the Tax Act from AOCI to retained earnings. This ASU is effective for fiscal years beginning after December 15, 2018 (our Fiscal 2020). We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and do not expect adoption to have a material impact.

Subsequent Events [Policy Text Block]

Subsequent Event

On June 4, 2018, we acquired 100% of the ownership interests of Chris-Craft, a privately-owned company based in Sarasota Florida.  Chris-Craft manufactures and sells premium quality boats in the recreational powerboat industry through an established global network of independent authorized dealers.

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Business Combination, Goodwill and Other Intangible Assets (Tables)

9 Months Ended

May 26, 2018

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The final allocation of the purchase price to assets acquired and liabilities assumed was as follows:

(In thousands)	November 8, 2016
Cash	$	1,748
Accounts receivable	32,834
Inventories	15,300
Prepaid expenses and other assets	3,037
Property, plant and equipment	8,998
Goodwill	243,456
Other intangible assets	253,100
Total assets acquired	558,473
Accounts payable	11,163
Accrued compensation	3,615
Product warranties	12,904
Promotional	3,976
Other	1,496
Deferred tax liabilities	4,811
Total liabilities assumed	37,965
Total purchase price	$	520,508

We acquired 100% of the ownership interests of Grand Design on November 8, 2016 in accordance with the Securities Purchase Agreement for an aggregate purchase price of $520.5 million, which was paid in cash and Winnebago shares as follows:

(In thousands, except shares and per share data)	November 8, 2016
Cash	$	396,442
Winnebago shares: 4,586,555 at $27.05 per share	124,066
Total	$	520,508

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

The allocation of the purchase price to the net assets acquired and liabilities assumed resulted in the recognition of intangible assets with fair value on the closing date of November 8, 2016 and amortization accumulated from the closing date through May 26, 2018 as follows:

		May 26, 2018					August 26, 2017
(In thousands)	Weighted Average Life-Years	Cost			Accumulated Amortization		Cost			Accumulated Amortization
Trade name	Indefinite	$	148,000		$	—	$	148,000		$	—
Dealer network	12.0	80,500			10,365		80,500			5,348
Backlog	0.5	18,000			18,000		18,000			18,000
Non-compete agreements	4.0	4,600			1,836		4,600			1,116
Leasehold interest-favorable	8.1	2,000			380		2,000			196
Total		253,100			$	30,581	253,100			$	24,660
Accumulated amortization		(30,581		)			(24,660		)
Net book value of intangible assets		$	222,519				$	228,440

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Remaining estimated aggregate annual amortization expense by fiscal year is as follows:

(In thousands)	Amount
Remainder of 2018	$	1,933
2019	7,733
2020	7,733
2021	7,733
2022	7,106
Thereafter	42,281

Business Acquisition, Pro Forma Information [Table Text Block]

The following table provides net revenues and operating income (which includes amortization expense) from the Grand Design business included in our consolidated results during the nine months ended May 26, 2018 and May 27, 2017 following the November 8, 2016 closing date:

	Nine Months Ended
(In thousands)	May 26, 2018		May 27, 2017
Net revenues	$	719,030	$	366,309
Operating income	91,452		27,083

Unaudited pro forma information is as follows:

	Nine Months Ended
(In thousands, except per share data)	May 26, 2018		May 27, 2017(1)
Net revenues	$	1,480,641	$	1,187,849
Net income	72,675		66,009
Income per share - basic	2.30		2.09
Income per share - diluted	2.28		2.08

(1) Net income and income per share include the increased benefit of $16.3 million, net of tax, associated with the termination of the postretirement health care plan in Fiscal 2017.

The unaudited pro forma data above includes the following significant non-recurring adjustments made to account for certain costs, which would have changed if the acquisition of Grand Design had been completed on August 30, 2015:

	Nine Months Ended
(In thousands)	May 26, 2018			May 27, 2017(1)
Amortization of intangibles (1 year or less useful life)	$	(122	)	$	(18,601	)
Increase in amortization of intangibles	—			1,551
Expenses related to business combination (transaction costs)	(50		)	(6,432		)
Interest to reflect new debt structure	—			3,672
Taxes related to the adjustments to the pro forma data and to the income of Grand Design	64			11,513

(1) Pro forma transaction costs include $0.1 million incurred by Grand Design prior to acquisition.

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Business Segments (Tables)

9 Months Ended

May 26, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table shows information by reporting segment:

	Three Months Ended				Nine Months Ended
(In thousands)	May 26, 2018		May 27, 2017		May 26, 2018		May 27, 2017
Net revenues
Motorized	$	249,245	$	241,670	$	641,602	$	635,732
Towable	313,016		234,694		839,039		456,451
Consolidated	$	562,261	$	476,364	$	1,480,641	$	1,092,183
Adjusted EBITDA
Motorized	$	9,319	$	14,567	$	16,518	$	36,521
Towable	44,042		32,761		111,636		54,557
Consolidated	$	53,361	$	47,328	$	128,154	$	91,078
Capital expenditures
Motorized	$	2,643	$	1,527	$	7,383	$	6,626
Towable	3,805		1,275		10,740		3,114
Consolidated	$	6,448	$	2,802	$	18,123	$	9,740
Total assets
Motorized	$	301,667	$	275,673	$	301,667	$	275,673
Towable	613,162		572,977		613,162		572,977
Unallocated corporate assets	50,881		41,701		50,881		41,701
Consolidated	$	965,710	$	890,351	$	965,710	$	890,351

Reconciliation of net income to consolidated Adjusted EBITDA:

	Three Months Ended						Nine Months Ended
(In thousands)	May 26, 2018			May 27, 2017			May 26, 2018			May 27, 2017
Net income	$	32,521		$	19,391		$	72,567		$	46,407
Interest expense	4,172			5,265			13,871			11,571
Provision for income taxes	11,684			10,258			28,478			23,794
Depreciation	2,351			1,859			6,679			5,287
Amortization of intangible assets	1,933			10,159			5,921			22,578
EBITDA	52,661			46,932			127,516			109,637
Postretirement health care benefit income	—			—			—			(24,796		)
Transaction costs	800			450			850			6,374
Non-operating income	(100		)	(54		)	(212		)	(137		)
Adjusted EBITDA	$	53,361		$	47,328		$	128,154		$	91,078

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Derivatives, Investments and Fair Value Measurements (Tables)

9 Months Ended

May 26, 2018

Fair Value Disclosures [Abstract]

Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following tables set forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis at May 26, 2018 and August 26, 2017 according to the valuation techniques we used to determine their fair values:

			Fair Value Measurements Using Inputs Considered As
(In thousands)	Fair Value at May 26, 2018		Level 1 Quoted Prices in Active Markets for Identical Assets		Level 2 Significant Other Observable Inputs		Level 3 Significant Unobservable Inputs
Assets that fund deferred compensation:
Domestic equity funds	$	1,474	$	1,436	$	38	$	—
International equity funds	161		142		19		—
Fixed income funds	150		66		84		—
Interest rate swap contract	2,095		—		2,095		—
Total assets at fair value	$	3,880	$	1,644	$	2,236	$	—

				Fair Value Measurements Using Inputs Considered As
(In thousands)	Fair Value at August 26, 2017			Level 1 Quoted Prices in Active Markets for Identical Assets		Level 2 Significant Other Observable Inputs			Level 3 Significant Unobservable Inputs
Assets that fund deferred compensation:
Domestic equity funds	$	1,708		$	1,671	$	37		$	—
International equity funds	174			157		17			—
Fixed income funds	259			170		89			—
Interest rate swap contract	(828		)	—		(828		)	—
Total assets (liabilities) at fair value	$	1,313		$	1,998	$	(685	)	$	—

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Inventories (Tables)

9 Months Ended

May 26, 2018

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

Inventories consist of the following:

(In thousands)	May 26, 2018			August 26, 2017
Finished goods	$	34,954		$	16,947
Work-in-process	60,206			60,818
Raw materials	118,875			99,919
Total	214,035			177,684
LIFO reserve	(36,657		)	(35,419		)
Total inventories	$	177,378		$	142,265

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Property, Plant and Equipment (Tables)

9 Months Ended

May 26, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Property, plant and equipment is stated at cost, net of accumulated depreciation and consists of the following:

(In thousands)	May 26, 2018			August 26, 2017
Land	$	4,647		$	3,914
Buildings and building improvements	82,780			73,831
Machinery and equipment	101,525			99,952
Software	22,078			17,844
Transportation	8,543			8,993
Total property, plant and equipment, gross	219,573			204,534
Less accumulated depreciation	(137,092		)	(132,974		)
Total property, plant and equipment, net	$	82,481		$	71,560

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Warranty (Tables)

9 Months Ended

May 26, 2018

Product Warranties Disclosures [Abstract]

Schedule of Product Warranty Liability [Table Text Block]

Changes in our product warranty liability are as follows:

	Three Months Ended						Nine Months Ended
(In thousands)	May 26, 2018			May 27, 2017			May 26, 2018			May 27, 2017
Balance at beginning of period	$	34,988		$	25,030		$	30,805		$	12,412
Provision	11,645			10,202			31,881			21,832
Claims paid	(9,189		)	(7,176		)	(25,242		)	(19,092		)
Acquisition of Grand Design	—			—			—			12,904
Balance at end of period	$	37,444		$	28,056		$	37,444		$	28,056

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Long-Term Debt (Tables)

9 Months Ended

May 26, 2018

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments

The components of long-term debt are as follows:

(In thousands)	May 26, 2018			August 26, 2017
ABL	$	—		$	—
Term Loan	260,000			284,000
Gross long-term debt, excluding issuance costs	260,000			284,000
Less: debt issuance cost, net	(8,202		)	(9,424		)
Long-term debt, net of issuance costs	251,798			274,576
Less: current maturities	—			(2,850		)
Long-term debt, less current maturities	$	251,798		$	271,726

Schedule of Maturities of Long-term Debt

Aggregate contractual maturities of debt in future fiscal years are as follows as of May 26, 2018:

(In thousands)	Amount
2018	$	—
2019	—
2020	10,250
2021	15,000
2022	15,000
Thereafter	219,750
Total debt	$	260,000

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Employee and Retiree Benefits (Tables)

9 Months Ended

May 26, 2018

Retirement Benefits [Abstract]

Schedule of Amounts Recognized in Balance Sheet [Table Text Block]

Deferred compensation liabilities are as follows:

(In thousands)	May 26, 2018			August 26, 2017
Non-qualified deferred compensation	$	15,244		$	16,476
Executive share option plan liability	1,256			1,498
SERP benefit liability	2,293			2,534
Executive deferred compensation	422			447
Officer stock-based compensation	1,096			1,664
Total deferred compensation	20,311			22,619
Less current portion	(4,579		)	(3,349		)
Long-term deferred compensation	$	15,732		$	19,270

Schedule of Net Benefit Costs [Table Text Block]

Net periodic postretirement benefit income consisted of the following components:

	Three Months Ended				Nine Months Ended
(In thousands)	May 26, 2018		May 27, 2017		May 26, 2018		May 27, 2017
Interest cost	$	—	$	—	$	—	$	29
Service cost	—		—		—		16
Amortization of prior service benefit	—		—		—		(40,444		)
Amortization of net actuarial loss	—		—		—		15,648
Net periodic postretirement benefit income	$	—	$	—	$	—	$	(24,751	)
Payments for postretirement health care	$	—	$	—	$	—	$	68

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Income Per Share (Tables)

9 Months Ended

May 26, 2018

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table reflects the calculation of basic and diluted income per share:

	Three Months Ended				Nine Months Ended
(In thousands, except per share data)	May 26, 2018		May 27, 2017		May 26, 2018		May 27, 2017
Income per share - basic
Net income	$	32,521	$	19,391	$	72,567	$	46,407
Weighted average shares outstanding	31,582		31,587		31,617		30,333
Net income per share - basic	$	1.03	$	0.61	$	2.30	$	1.53
Income per share - diluted
Net income	$	32,521	$	19,391	$	72,567	$	46,407
Weighted average shares outstanding	31,582		31,587		31,617		30,333
Dilutive impact of awards and options outstanding	171		104		208		115
Weighted average shares and potential dilutive shares outstanding	31,753		31,691		31,825		30,448
Net income per share - diluted	$	1.02	$	0.61	$	2.28	$	1.52

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

May 26, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Changes in AOCI by component, net of tax, were:

	Three Months Ended
	May 26, 2018							May 27, 2017
(In thousands)	Defined Benefit Pension Items			Interest Rate Swap		Total		Defined Benefit Pension Items			Interest Rate Swap			Total
Balance at beginning of period	$	(496	)	$	1,403	$	907	$	(461	)	$	(439	)	$	(900	)
OCI before reclassifications	—			129		129		—			(58		)	(58		)
Amounts reclassified from AOCI	7			—		7		6			—			6
Net current-period OCI	7			129		136		6			(58		)	(52		)
Balance at end of period	$	(489	)	$	1,532	$	1,043	$	(455	)	$	(497	)	$	(952	)

	Nine Months Ended
	May 26, 2018									May 27, 2017
(In thousands)	Defined Benefit Pension Items			Interest Rate Swap			Total			Defined Benefit Pension Items			Interest Rate Swap			Total
Balance at beginning of period	$	(509	)	$	(514	)	$	(1,023	)	$	10,975		$	—		$	10,975
OCI before reclassifications	—			2,046			2,046			3,903			(497		)	3,406
Amounts reclassified from AOCI	20			—			20			(15,333		)	—			(15,333		)
Net current-period OCI	20			2,046			2,066			(11,430		)	(497		)	(11,927		)
Balance at end of period	$	(489	)	$	1,532		$	1,043		$	(455	)	$	(497	)	$	(952	)

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

Reclassifications out of AOCI in net periodic benefit costs, net of tax, were:

		Three Months Ended				Nine Months Ended
(In thousands)	Location on Consolidated Statements of Income and Comprehensive Income	May 26, 2018		May 27, 2017		May 26, 2018		May 27, 2017
Amortization of prior service credit	SG&A	$	—	$	—	$	—	$	(25,035	)
Amortization of net actuarial loss	SG&A	7		6		20		9,702
Total reclassifications		$	7	$	6	$	20	$	(15,333	)

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Basis of Presentation Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Nov. 25, 2017	Jun. 04, 2018
New Accounting Pronouncements and Subsequent Events [Line Items]
Excess tax benefits	$ 0.6
Excess tax benefit, percent	2.20%
Excess tax benefit effect on earnings per share	$ 0.02
Chris-Craft [Member] [Member] | Subsequent Event [Member]
New Accounting Pronouncements and Subsequent Events [Line Items]
Percent of voting interest acquired		100.00%

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Business Combination, Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		24 Months Ended
	May 26, 2018	May 27, 2017	May 26, 2018	May 27, 2017	May 26, 2018	Nov. 08, 2016
Business Acquisition [Line Items]
Goodwill increase during period			$ 2,000
Amortization of intangible assets	$ 1,933	$ 10,159	5,921	$ 22,578
Finite-lived intangible assets, remaining amortization period	10 years 3 months
Acquisition related costs	$ 800	$ 450	850	6,374
Grand Design [Member]
Business Acquisition [Line Items]
Member interest held						10.66%
Grand Design [Member]
Business Acquisition [Line Items]
Revenue since acquisition			719,030	366,309
Operating income since acquisition			91,452	27,083
Percent of voting interest acquired						100.00%
Acquisition related costs			$ 100	$ 6,400	$ 6,900
Grand Design Member Interest [Member]
Business Acquisition [Line Items]
Percent of voting interest acquired						89.34%
Blocker Corp [Member]
Business Acquisition [Line Items]
Percent of voting interest acquired						100.00%

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Business Combination, Goodwill and Other Intangible Assets (Details) - Grand Design [Member] $ / shares in Units, $ in Thousands	Nov. 08, 2016 USD ($) $ / shares shares
Business Acquisition [Line Items]
Cash	$ 396,442
Winnebago shares: 4,586,555 at $27.05 per share	124,066
Total	$ 520,508
Shares issued for acquisition | shares	4,586,555
Share price (in dollars per share) | $ / shares	$ 27.05

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Business Combination, Goodwill and Other Intangible Assets - Purchase Price Allocation (Details) - USD ($) $ in Thousands	May 26, 2018	Aug. 26, 2017	Nov. 08, 2016
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Goodwill	$ 244,684	$ 242,728
Grand Design [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract]
Cash			$ 1,748
Accounts receivable			32,834
Inventories			15,300
Prepaid expenses and other assets			3,037
Property, plant and equipment			8,998
Goodwill			243,456
Other intangible assets			253,100
Total assets acquired			558,473
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract]
Accounts payable			11,163
Accrued compensation			3,615
Product warranties			12,904
Promotional			3,976
Other			1,496
Deferred tax liabilities			4,811
Total liabilities assumed			37,965
Total purchase price			$ 520,508

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Business Combination, Goodwill and Other Intangible Assets - Intangible Assets Acquired (Details) - USD ($) $ in Thousands	Nov. 08, 2016	May 26, 2018	Aug. 26, 2017
Acquired Indefinite-lived Intangible Assets [Line Items]
Accumulated amortization		$ (30,581)	$ (24,660)
Grand Design [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Fair value of intangible assets acquired	$ 253,100
Accumulated amortization		(30,581)	(24,660)
Intangible assets, net		222,519	228,440
Grand Design [Member] | Trade name [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Fair value of indefinite-lived intangible assets acquired	$ 148,000
Dealer network [Member] | Grand Design [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets, weighted average life	12 years
Fair value of finite-lived intangible assets acquired	$ 80,500
Accumulated amortization		(10,365)	(5,348)
Backlog [Member] | Grand Design [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets, weighted average life	6 months
Fair value of finite-lived intangible assets acquired	$ 18,000
Accumulated amortization		(18,000)	(18,000)
Noncompete agreements [Member] | Grand Design [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets, weighted average life	4 years
Fair value of finite-lived intangible assets acquired	$ 4,600
Accumulated amortization		(1,836)	(1,116)
Leasehold interest-favorable [Member] | Grand Design [Member]
Acquired Indefinite-lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets, weighted average life	8 years 1 month 6 days
Fair value of finite-lived intangible assets acquired	$ 2,000
Accumulated amortization		$ (380)	$ (196)

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Business Combination, Goodwill and Other Intangible Assets - Future Amortization of Intangible Assets (Details) $ in Thousands	May 26, 2018 USD ($)
Business Combinations [Abstract]
Remainder of 2018	$ 1,933
2019	7,733
2020	7,733
2021	7,733
2022	7,106
Thereafter	$ 42,281

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Business Combination, Goodwill and Other Intangible Assets - ProForma Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			9 Months Ended			24 Months Ended
	May 26, 2018	May 27, 2017	Nov. 26, 2016	May 26, 2018	May 27, 2017		May 26, 2018
Business Acquisition [Line Items]
Postretirement health care benefit income, net of tax					$ 16,300
Acquisition related costs	$ 800	$ 450		$ 850	6,374
Grand Design [Member]
Business Acquisition [Line Items]
Revenue since acquisition				719,030	366,309
Operating income since acquisition				91,452	27,083
Pro forma net revenues				1,480,641	1,187,849
Pro forma net income				$ 72,675	$ 66,009	[1]
Pro forma income per share - basic (in dollars per share)				$ 2.30	$ 2.09	[1]
Pro forma income per share - diluted (in dollars per share)				$ 2.28	$ 2.08	[1]
Acquisition related costs				$ 100	$ 6,400		$ 6,900
Amortization of intangibles (1 year or less useful life) [Member]
Business Acquisition [Line Items]
Nonrecurring adjustments				(122)	(18,601)
Increase in amortization of intangibles [Member]
Business Acquisition [Line Items]
Nonrecurring adjustments				0	1,551
Expenses Related to Business Combination [Member]
Business Acquisition [Line Items]
Nonrecurring adjustments				(50)	(6,432)	[2]
Grand Design Expenses Related to Business Combination [Member]
Business Acquisition [Line Items]
Nonrecurring adjustments			$ (100)
Interest to reflect new debt structure [Member]
Business Acquisition [Line Items]
Nonrecurring adjustments				0	3,672
Taxes related to the adjustments to the pro forma [Member]
Business Acquisition [Line Items]
Nonrecurring adjustments				$ 64	$ 11,513

[1] Net income and income per share include the increased benefit of $16.3 million, net of tax, associated with the termination of the postretirement health care plan in Fiscal 2017.

[2] Pro forma transaction costs include $0.1 million incurred by Grand Design prior to acquisition.

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Business Segments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	May 26, 2018 USD ($)	May 27, 2017 USD ($)	May 26, 2018 USD ($) segment	May 27, 2017 USD ($)	Aug. 26, 2017 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			2
Revenues	$ 562,261	$ 476,364	$ 1,480,641	$ 1,092,183
Adjusted EBITDA	53,361	47,328	128,154	91,078
Capital expenditures	6,448	2,802	18,123	9,740
Assets	965,710	890,351	965,710	890,351	$ 902,512
Operating Segments [Member] | Motorized [Member]
Segment Reporting Information [Line Items]
Revenues	249,245	241,670	641,602	635,732
Adjusted EBITDA	9,319	14,567	16,518	36,521
Capital expenditures	2,643	1,527	7,383	6,626
Assets	301,667	275,673	301,667	275,673
Operating Segments [Member] | Towable [Member]
Segment Reporting Information [Line Items]
Revenues	313,016	234,694	839,039	456,451
Adjusted EBITDA	44,042	32,761	111,636	54,557
Capital expenditures	3,805	1,275	10,740	3,114
Assets	613,162	572,977	613,162	572,977
Operating Segments [Member] | Unallocated Corporate [Member]
Segment Reporting Information [Line Items]
Assets	$ 50,881	$ 41,701	$ 50,881	$ 41,701

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Business Segments - Reconciliation of Adjusted EBITDA (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 26, 2018	May 27, 2017	May 26, 2018	May 27, 2017
Segment Reporting [Abstract]
Net income	$ 32,521	$ 19,391	$ 72,567	$ 46,407
Interest expense	4,172	5,265	13,871	11,571
Provision for income taxes	11,684	10,258	28,478	23,794
Depreciation	2,351	1,859	6,679	5,287
Amortization of intangible assets	1,933	10,159	5,921	22,578
EBITDA	52,661	46,932	127,516	109,637
Postretirement health care benefit income	0	0	0	(24,796)
Transaction costs	800	450	850	6,374
Non-operating income	(100)	(54)	(212)	(137)
Adjusted EBITDA	$ 53,361	$ 47,328	$ 128,154	$ 91,078

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Concentration Risk (Narrative) (Details) - Sales Revenue, Goods, Net [Member] - Customer Concentration Risk [Member]	9 Months Ended
	May 26, 2018	May 27, 2017
Concentration risk threshhold [Member]
Concentration Risk [Line Items]
Percent of revenue	10.00%
Major Customer One [Member]
Concentration Risk [Line Items]
Percent of revenue		10.90%
Major Customer Two [Member]
Concentration Risk [Line Items]
Percent of revenue		10.60%

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Derivatives, Investments and Fair Value Measurements (Fair Value Inputs) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	May 26, 2018	Aug. 26, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Domestic equity funds	$ 1,474	$ 1,708
International equity funds	161	174
Fixed income funds	150	259
Interest rate swap contract, assets	2,095
Interest rate swap contract, liabilities		828
Total assets (liabilities) at fair value	3,880	1,313
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Domestic equity funds	1,436	1,671
International equity funds	142	157
Fixed income funds	66	170
Interest rate swap contract, assets	0
Interest rate swap contract, liabilities		0
Total assets (liabilities) at fair value	1,644	1,998
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Domestic equity funds	38	37
International equity funds	19	17
Fixed income funds	84	89
Interest rate swap contract, assets	2,095
Interest rate swap contract, liabilities		828
Total assets (liabilities) at fair value	2,236	(685)
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Domestic equity funds	0	0
International equity funds	0	0
Fixed income funds	0	0
Interest rate swap contract, assets	0
Interest rate swap contract, liabilities		0
Total assets (liabilities) at fair value	$ 0	$ 0

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Derivatives, Investments and Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands	May 26, 2018	Aug. 26, 2017
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap contract, liabilities		$ (828)
Interest rate swap contract, assets	$ 2,095
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swap contract, liabilities		(828)
Interest rate swap contract, assets	2,095
Term Loan | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional amount	$ 170,000	$ 200,000
Interest rate, stated percentage	5.32%	6.32%

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Inventories (Inventory Schedule) (Details) - USD ($) $ in Thousands	May 26, 2018	Aug. 26, 2017
Inventory Disclosure [Abstract]
Finished goods	$ 34,954	$ 16,947
Work-in-process	60,206	60,818
Raw materials	118,875	99,919
Total	214,035	177,684
LIFO reserve	(36,657)	(35,419)
Total inventories	$ 177,378	$ 142,265

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Inventories (Narrative) (Details) - USD ($) $ in Thousands	May 26, 2018	Aug. 26, 2017
Inventory Disclosure [Abstract]
Inventory, gross	$ 214,035	$ 177,684
Inventory, LIFO	179,100	149,800
Inventory, FIFO	$ 34,900	$ 27,900

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Property, Plant and Equipment (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands	May 26, 2018	Aug. 26, 2017
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 219,573	$ 204,534
Less accumulated depreciation	(137,092)	(132,974)
Total property, plant and equipment, net	82,481	71,560
Land [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	4,647	3,914
Buildings and building improvements [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	82,780	73,831
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	101,525	99,952
Software [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	22,078	17,844
Transportation [Member]
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, gross	$ 8,543	$ 8,993

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Warranty (Schedule of Product Warranty Liability) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 26, 2018	May 27, 2017	May 26, 2018	May 27, 2017
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at beginning of period	$ 34,988	$ 25,030	$ 30,805	$ 12,412
Provision	11,645	10,202	31,881	21,832
Claims paid	(9,189)	(7,176)	(25,242)	(19,092)
Acquisition of Grand Design	0	0	0	12,904
Balance at end of period	$ 37,444	$ 28,056	$ 37,444	$ 28,056

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Long-Term Debt - Components of Long-Term Debt (Details) - USD ($) $ in Thousands	May 26, 2018	Aug. 26, 2017
Debt Instrument [Line Items]
Long-term debt, gross	$ 260,000	$ 284,000
Less: debt issuance cost, net	(8,202)	(9,424)
Long-term debt	251,798	274,576
Less: current maturities	0	(2,850)
Long-term debt, less current maturities	251,798	271,726
Line of Credit [Member] | ABL
Debt Instrument [Line Items]
Long-term debt, gross	0	0
Line of Credit [Member] | Term Loan
Debt Instrument [Line Items]
Long-term debt, gross	$ 260,000	$ 284,000

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Long-Term Debt - Narrative (Details) - USD ($) $ in Thousands			9 Months Ended
	Dec. 08, 2017	Nov. 08, 2016	May 26, 2018	May 27, 2017	Aug. 26, 2017
Debt Instrument [Line Items]
Borrowings on credit agreement			$ 19,700	$ 366,400
Debt issuance costs, net			8,202		$ 9,424
Amortization of debt issuance costs			1,222	$ 889
Term Loan
Debt Instrument [Line Items]
Amortization of debt issuance costs			$ 600
JPMorgan Chase [Member] | Line of Credit [Member] | ABL
Debt Instrument [Line Items]
Debt, face amount		$ 125,000
Basis spread on variable rate, decrease	0.25%
Borrowings on credit agreement	$ 19,700
Debt instrument, term		5 years
JPMorgan Chase [Member] | Line of Credit [Member] | ABL | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate			1.25%
JPMorgan Chase [Member] | Line of Credit [Member] | Term Loan
Debt Instrument [Line Items]
Debt, face amount		$ 300,000
Basis spread on variable rate, decrease	1.00%
Quarterly payment amount			$ 3,750
Incremental term loans, up to		125,000
JPMorgan Chase [Member] | Line of Credit [Member] | Term Loan | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate			3.50%
JPMorgan Chase [Member] | Line of Credit [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Debt, face amount		$ 10,000
Minimum [Member] | JPMorgan Chase [Member] | Line of Credit [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Commitment fee percentage			0.25%
Maximum [Member] | JPMorgan Chase [Member] | Line of Credit [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Commitment fee percentage			0.375%

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Long-Term Debt - Contractual Maturities (Details) - USD ($) $ in Thousands	May 26, 2018	Aug. 26, 2017
Debt Disclosure [Abstract]
2018	$ 0
2019	0
2020	10,250
2021	15,000
2022	15,000
Thereafter	219,750
Total debt	$ 260,000	$ 284,000

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Employee and Retiree Benefits (Postretirement Health Care and Deferred Compensation Benefits) (Details) - USD ($) $ in Thousands	May 26, 2018	Aug. 26, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]
Non-qualified deferred compensation	$ 15,244	$ 16,476
Executive share option plan liability	1,256	1,498
SERP benefit liability	2,293	2,534
Executive deferred compensation	422	447
Officer stock-based compensation	1,096	1,664
Total deferred compensation	20,311	22,619
Less current portion	(4,579)	(3,349)
Long-term deferred compensation	$ 15,732	$ 19,270

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Employee and Retiree Benefits (Postretirement Benefit Income) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 26, 2018	May 27, 2017	May 26, 2018	May 27, 2017
Retirement Benefits [Abstract]
Interest cost	$ 0	$ 0	$ 0	$ 29
Service cost	0	0	0	16
Amortization of prior service benfit	0	0	0	(40,444)
Amortization of net actuarial loss	0	0	0	15,648
Net periodic postretirement benefit income	0	0	0	(24,751)
Payments for postretirement health care	$ 0	$ 0	$ 0	$ 68

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Employee and Retiree Benefits (Narrative) (Details)	9 Months Ended
	May 26, 2018
Retirement Benefits [Abstract]
Postretirement health care benefits age requirement before distribution occurs	55 years
Postretirement health care benefits continuous service requirement	15 years

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Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions							3 Months Ended				9 Months Ended
	Jul. 05, 2018	Apr. 25, 2018	Jan. 24, 2018	Nov. 29, 2017	Apr. 11, 2017	Nov. 08, 2016	May 26, 2018	Nov. 25, 2017	May 27, 2017	Nov. 26, 2016	May 26, 2018	May 27, 2017
Shareholders Equity [Line Items]
Stock-based compensation expense							$ 1.4		$ 0.7		$ 5.0	$ 2.2
Dividends paid per common share (in dollars per share)			$ 0.10	$ 0.10			$ 0.10		$ 0.10		$ 0.30	$ 0.30
Dividends declared per common share (in dollars per share)		$ 0.10
Oct 18 2017 Grant [Member] | Management [Member] | Restricted Stock [Member]
Shareholders Equity [Line Items]
Issuance of stock (in shares)								62,660
Oct 11 2016 Grant [Member] | Management [Member] | Restricted Stock [Member]
Shareholders Equity [Line Items]
Issuance of stock (in shares)										97,600
Grand Design [Member]
Shareholders Equity [Line Items]
Shares issued for acquisition						4,586,555
Acquisition shares sold					2,293,277
Subsequent Event [Member]
Shareholders Equity [Line Items]
Dividends declared per common share (in dollars per share)	$ 0.10

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Contingent Liabilites and Commitments (Repurchase Commitments Narrative) (Details) - USD ($) $ in Millions	9 Months Ended
	May 26, 2018	Aug. 26, 2017
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Repurchase agreement term	18 months
Accrued loss on repurchases	$ 1.0	$ 0.7
Obligation to Repurchase from Dealers [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Contingent liability on repurchase agreements	$ 920.1	$ 713.1

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Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		4 Months Ended	5 Months Ended	9 Months Ended		12 Months Ended
	May 26, 2018	Feb. 24, 2018	Dec. 31, 2017	May 26, 2018	May 26, 2018	May 27, 2017	Aug. 25, 2018
Federal corporate income tax rate			35.00%	21.00%
Effective income tax rate					28.20%	33.90%
Tax cuts and jobs act of 2017, provisional income tax expense (benefit)	$ 0.2	$ 1.4
Unrecognized tax benefits	1.7			$ 1.7	$ 1.7
Unrecognized tax benefits that would have an impact on effective tax rate	1.5			1.5	1.5
Unrecognized tax benefits, income tax penalties and interest accrued	$ 0.5			$ 0.5	$ 0.5
Scenario, Forecast [Member]
Federal corporate income tax rate							26.00%

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Income Per Share (Calculation of Basic and Diluted Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	May 26, 2018	May 27, 2017	May 26, 2018	May 27, 2017
Earnings Per Share [Abstract]
Net income	$ 32,521	$ 19,391	$ 72,567	$ 46,407
Weighted average shares outstanding	31,582	31,587	31,617	30,333
Net income per share - basic (in dollars per share)	$ 1.03	$ 0.61	$ 2.30	$ 1.53
Dilutive impact of awards and options outstanding	171	104	208	115
Weighted average shares and potential dilutive shares outstanding	31,753	31,691	31,825	30,448
Net income per share - assuming dilution (in dollars per share)	$ 1.02	$ 0.61	$ 2.28	$ 1.52

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Income Per Share (Narrative) (Details) - shares	3 Months Ended		9 Months Ended
	May 26, 2018	May 27, 2017	May 26, 2018	May 27, 2017
Employee Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive shares	89,710	61,000	58,860	61,000

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Accumulated Other Comprehensive Income (Loss) Changes in AOCI by component (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 26, 2018	May 27, 2017	May 26, 2018	May 27, 2017
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period			$ (1,023)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Balance at end of period	$ 1,043		1,043
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	(496)	$ (461)	(509)	$ 10,975
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
OCI before reclassifications	0	0	0	3,903
Amounts reclassified from AOCI	7	6	20	(15,333)
Net current-period OCI	7	6	20	(11,430)
Balance at end of period	(489)	(455)	(489)	(455)
Accumulated Net Gain (Loss) from Interest Rate Swap [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	1,403	(439)	(514)	0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
OCI before reclassifications	129	(58)	2,046	(497)
Amounts reclassified from AOCI	0	0	0	0
Net current-period OCI	129	(58)	2,046	(497)
Balance at end of period	1,532	(497)	1,532	(497)
Accumulated comprehensive income (loss)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance at beginning of period	907	(900)	(1,023)	10,975
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
OCI before reclassifications	129	(58)	2,046	3,406
Amounts reclassified from AOCI	7	6	20	(15,333)
Net current-period OCI		(52)	2,066	(11,927)
Balance at end of period	$ 1,043	$ (952)	$ 1,043	$ (952)

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Accumulated Other Comprehensive Income (Loss) Reclassification from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	May 26, 2018	May 27, 2017	May 26, 2018	May 27, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of prior service credit (net of tax)	$ 0	$ 0	$ 0	$ 25,035
Amortization of net actuarial loss (net of tax)	7	6	20	9,702
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications	7	6	20	(15,333)
Reclassification out of Accumulated Other Comprehensive Income [Member] | SG&A | Amortization of prior service credit
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of prior service credit (net of tax)	0	0	0	(25,035)
Reclassification out of Accumulated Other Comprehensive Income [Member] | SG&A | Amortization of net actuarial loss
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amortization of net actuarial loss (net of tax)	$ 7	$ 6	$ 20	$ 9,702