Business Segments

3 Months Ended

Nov. 28, 2020

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company has six operating segments: 1) Grand Design towables, 2) Winnebago towables, 3) Winnebago motorhomes, 4) Newmar motorhomes, 5) Chris-Craft marine, and 6) Winnebago specialty vehicles. The Company evaluates performance based on each operating segment's Adjusted EBITDA, as defined below, which excludes certain corporate administration expenses and non-operating income and expense.

The Company's two reportable segments include: 1) Towable (comprised of products which are not motorized and are generally towed by another vehicle as well as other related manufactured products and services), which is an aggregation of the Grand Design towables and the Winnebago towables operating segments and 2) Motorhome (comprised of products that include a motorized chassis as well as other related manufactured products and services), which is an aggregation of the Winnebago motorhomes and Newmar motorhomes operating segments.

The Corporate / All Other category includes the Chris-Craft marine and Winnebago specialty vehicles operating segments as well as expenses related to certain corporate administration expenses for the oversight of the enterprise. These expenses include items such as corporate leadership and administration costs.

Identifiable assets of the reportable segments exclude general corporate assets, which principally consist of cash and cash equivalents and certain deferred tax balances. The general corporate assets are included in the Corporate / All Other category.

The Company's chief operating decision maker ("CODM") is its Chief Executive Officer. The Company's CODM relies on internal management reporting that analyzes consolidated results to the net earnings level and operating segment's Adjusted EBITDA. The Company's CODM has ultimate responsibility for enterprise decisions. The Company's CODM determines, in particular, resource allocation for, and monitors the performance of, the consolidated enterprise, the Towable segment, and the Motorhome segment. The operating segments' management have responsibility for operating decisions, allocating resources, and assessing performance within their respective segments. The accounting policies of both reportable segments are the same and are described in Note 1, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the fiscal year ended August 29, 2020.

The Company evaluates the performance of its reportable segments based on 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. Examples of items excluded from Adjusted EBITDA include acquisition-related fair-value inventory step-up, acquisition-related costs, restructuring expenses, gain or loss on sale of property and equipment, and non-operating income. The following table shows information by reportable segment:

	Three Months Ended
(in thousands)	November 28, 2020		November 30, 2019
Net Revenues
Towable	$	454,901	$	341,250
Motorhome	322,389		225,891
Corporate / All Other	15,841		21,317
Consolidated	$	793,131	$	588,458
Adjusted EBITDA
Towable	$	63,143	$	35,785
Motorhome	30,343		9,331
Corporate / All Other	(4,193)		(3,068)
Consolidated	$	89,293	$	42,048
Capital Expenditures
Towable	$	4,137	$	4,026
Motorhome	4,003		2,240
Corporate / All Other	549		358
Consolidated	$	8,689	$	6,624

(in thousands)	November 28, 2020		August 29, 2020
Total Assets
Towable	$	732,419	$	718,253
Motorhome	671,761		600,304
Corporate / All Other	376,810		395,143
Consolidated	$	1,780,990	$	1,713,700

Reconciliation of net income to consolidated Adjusted EBITDA:

	Three Months Ended
(in thousands)	November 28, 2020		November 30, 2019
Net income	$	57,423	$	14,068
Interest expense	9,941		6,049
Provision for income taxes	17,557		3,893
Depreciation	4,160		3,586
Amortization of intangible assets	3,590		3,614
EBITDA	92,671		31,210
Acquisition-related fair-value inventory step-up	—		1,176
Acquisition-related costs	—		9,950
Restructuring expenses	93		(172)
Gain on sale of property and equipment	(3,565)		—
Non-operating loss (income)	94		(116)
Adjusted EBITDA	$	89,293	$	42,048