10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended October 31, 2015.

¨ 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 1-9235

THOR INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

Delaware	93-0768752
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
601 E. Beardsley Ave., Elkhart, IN	46514-3305
(Address of principal executive offices)	(Zip Code)

(574) 970-7460

(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      þ                                                                   No      ¨

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      þ                                                                   No      ¨

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

Large accelerated filer	þ	Accelerated filer	¨
Non-accelerated filer	¨  (Do not  check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

                                            Yes      ¨                                                                   No      þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at 10/31/2015
Common stock, par value
$    .10 per share	52,482,615 shares

PART I – FINANCIAL INFORMATION (Unless otherwise indicated, amounts in thousands except share and per share data.)

ITEM 1. FINANCIAL STATEMENTS

THOR INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	October 31, 2015			July 31, 2015
ASSETS
Current assets:
Cash and cash equivalents	$	179,317		$	183,478
Accounts receivable, trade, less allowance for doubtful accounts of $682 and $1,283, respectively		291,037			244,052
Accounts receivable, other		26,271			25,642
Inventories, net		271,370			246,115
Notes receivable		—			8,367
Prepaid income taxes, expenses and other		14,593			8,323
Deferred income taxes, net		59,327			59,864
Total current assets		841,915			775,841
Property, plant and equipment, net		243,515			234,045
Other assets:
Goodwill		312,622			312,622
Amortizable intangible assets, net		162,990			169,018
Other		11,341			11,722
Total other assets		486,953			493,362
TOTAL ASSETS	$	1,572,383		$	1,503,248
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	190,246		$	162,587
Accrued liabilities:
Compensation and related items		55,376			51,984
Product warranties		107,847			108,206
Income and other taxes		8,080			11,000
Promotions and rebates		21,376			19,817
Product, property and related liabilities		11,158			10,892
Other		16,332			13,849
Total current liabilities		410,415			378,335
Unrecognized tax benefits		12,627			11,945
Deferred income taxes, net		22,315			20,563
Other liabilities		26,652			27,218
Total long-term liabilities		61,594			59,726
Contingent liabilities and commitments
Stockholders’ equity:
Preferred stock – authorized 1,000,000 shares; none outstanding		—			—
Common stock – par value of $.10 per share; authorized 250,000,000 shares; issued 62,439,795 and 62,306,037 shares, respectively		6,244			6,231
Additional paid-in capital		218,443			215,539
Retained earnings		1,207,186			1,172,432
Less treasury shares of 9,957,180 and 9,911,474, respectively, at cost		(331,499	)		(329,015	)
Total stockholders’ equity		1,100,374			1,065,187
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,572,383		$	1,503,248

See Notes to the Condensed Consolidated Financial Statements.

2

THOR INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED OCTOBER 31, 2015 AND 2014 (UNAUDITED)

	Three Months Ended October 31,
	2015			2014
Net sales	$	1,030,351		$	921,992
Cost of products sold		878,135			804,327
Gross profit		152,216			117,665
Selling, general and administrative expenses		68,454			57,989
Amortization of intangible assets		6,028			3,689
Interest income		138			367
Interest expense		174			—
Other income (expense), net		(7	)		352
Income from continuing operations before income taxes		77,691			56,706
Income taxes		26,955			17,505
Net income from continuing operations		50,736			39,201
Loss from discontinued operations, net of income taxes		(239	)		(276	)
Net Income and comprehensive income	$	50,497		$	38,925
Weighted average common shares outstanding:
Basic		52,409,945			53,336,592
Diluted		52,545,560			53,433,447
Earnings per common share from continuing operations:
Basic	$	0.97		$	0.73
Diluted	$	0.97		$	0.73
Loss per common share from discontinued operations:
Basic	$	(0.01	)	$	0.00
Diluted	$	(0.01	)	$	0.00
Earnings per common share:
Basic	$	0.96		$	0.73
Diluted	$	0.96		$	0.73
Regular dividends declared and paid per common share	$	0.30		$	0.27

See Notes to the Condensed Consolidated Financial Statements.

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THOR INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED OCTOBER 31, 2015 AND 2014 (UNAUDITED)

	Three Months Ended October 31,
	2015		2014
Cash flows from operating activities:
Net income	$	50,497	$	38,925
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		5,405		3,324
Amortization of intangible assets		6,028		3,689
Deferred income tax provision		2,289		1,177
Gain on disposition of property, plant and equipment		(1)		(13)
Stock-based compensation expense		2,279		1,565
Excess tax benefits from stock-based awards		(291)		(114)
Changes in assets and liabilities (excluding acquisitions):
Accounts receivable		(47,614)		35,870
Inventories		(25,255)		(5,497)
Prepaid income taxes, expenses and other		(5,889)		(4,267)
Accounts payable		28,667		(13,743)
Accrued liabilities		2,579		(7,479)
Other liabilities		198		(3,412)
Net cash provided by operating activities		18,892		50,025
Cash flows from investing activities:
Purchases of property, plant and equipment		(15,922)		(8,541)
Proceeds from dispositions of property, plant and equipment		40		13
Proceeds from notes receivable		8,367		—
Acquisitions, net of cash acquired		—		(2,915)
Other		—		7
Net cash used in investing activities		(7,515)		(11,436)
Cash flows from financing activities:
Regular cash dividends paid		(15,743)		(14,412)
Principal payments on capital lease obligations		(86)		—
Excess tax benefits from stock-based awards		291		114
Net cash used in financing activities		(15,538)		(14,298)
Net increase (decrease) in cash and cash equivalents		(4,161)		24,291
Cash and cash equivalents, beginning of period		183,478		289,336
Cash and cash equivalents, end of period	$	179,317	$	313,627
Supplemental cash flow information:
Income taxes paid	$	35,326	$	36,246
Interest paid	$	174	$	—
Non-cash transactions:
Capital expenditures in accounts payable	$	532	$	353

See Notes to the Condensed Consolidated Financial Statements.

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NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(All dollar amounts presented in thousands except per share data)

1. Nature of Operations and Accounting Policies

Nature of Operations

Thor Industries, Inc. was founded in 1980 and, through its subsidiaries (collectively, the “Company”), manufactures a wide range of recreational vehicles (“RVs”) in the United States at various manufacturing facilities located primarily in Indiana and Ohio. These products are sold to independent dealers primarily throughout the United States and Canada. Unless the context otherwise requires or indicates, all references to “Thor”, the “Company”, “we”, “our” and “us” refer to Thor Industries, Inc. and its subsidiaries.

The Company’s core business activities are comprised of two distinct operations, which include the design, manufacture and sale of towable recreational vehicles and motorized recreational vehicles. Accordingly, the Company has presented segment financial information for these two segments in Note 4 to the Condensed Consolidated Financial Statements. See Note 3, “Discontinued Operations,” in the Notes to the Condensed Consolidated Financial Statements for a description of the Company’s bus operations that were sold during the quarter ended October 31, 2013. The accompanying financial statements (including footnote disclosures unless otherwise indicated) reflect these bus operations as discontinued operations apart from the Company’s continuing operations.

The July 31, 2015 amounts are derived from the annual audited financial statements. The interim financial statements are unaudited. In the opinion of management, all adjustments (which consist of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented have been made. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2015. Due to seasonality within the recreational vehicle industry, annualizing the results of operations for the quarter ended October 31, 2015 would not necessarily be indicative of the results for a full fiscal year.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Key estimates include reserves for inventory, incurred but not reported medical claims, warranty claims, recall liabilities, workers’ compensation claims, vehicle repurchases, uncertain tax positions, product and non-product litigation and assumptions made for both intangible assets acquired and asset impairment assessments. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances. The Company believes that such estimates are made using consistent and appropriate methods. Actual results could differ from these estimates.

Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-08 (“ASU 2014-08”) “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. Under the new guidance, the disposal of a component or group of components of a business will be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The Company adopted ASU 2014-08 as of August 1, 2015. The impact to the Company will depend on future disposals.

In May 2014, the FASB issued Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606),” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This standard will supersede most current revenue recognition guidance. Under the new standard, entities are required to identify the contract with a customer, identify the separate performance obligations in the contract, determine the transaction price, allocate the transaction price to the separate performance obligations in the contract and recognize the appropriate amount of revenue when (or as) the entity satisfies each performance obligation. The standard is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2017. The standard is effective for the Company in its fiscal year 2019 beginning on August 1, 2018. Entities have the option of using either retrospective transition or a modified approach in applying the new standard. The Company is currently evaluating the approach it will use to apply the new standard and the impact that the adoption of the new standard will have on the Company’s consolidated financial statements.

5

In July 2015, the FASB issued Accounting Standards Update No. 2015-11 (“ASU 2015-11”) “Inventory (Topic 330): Simplifying the Measurement of Inventory.” ASU 2015-11 requires inventory measured using any method other than last-in, first-out (“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, and for interim periods within those years, beginning after December 15, 2016. The standard is effective for the Company in its fiscal year 2018 beginning on August 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

In September 2015, the FASB issued Accounting Standards Update No. 2015-16 (“ASU 2015-16”) “Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments,” to simplify the accounting for measurement-period adjustments in a business combination. Under the new standard, an acquirer must recognize adjustments to provisional amounts in a business combination in the reporting period in which the adjustment amounts are determined, rather than retrospectively adjusting the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill as under current guidance. ASU 2015-16 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2015. This standard is effective for the Company in its fiscal year 2017 beginning on August 1, 2016. This new standard will be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The Company is currently evaluating the impact of this ASU on its consolidated financial statements, which will be dependent on future acquisitions.

In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (“ASU 2015-17”) “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” to simplify the presentation of deferred income taxes. Under the new standard, both deferred tax liabilities and assets are required to be classified as noncurrent in a classified balance sheet. ASU 2015-17 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2016. This standard is effective for the Company in its fiscal year 2018 beginning on August 1, 2017. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

2. Acquisitions

Postle

On May 1, 2015, the Company closed on a Membership Interest Purchase Agreement with Postle Aluminum Company, LLC for the acquisition of all the outstanding membership units of Postle Operating, LLC (“Postle”), a manufacturer of aluminum extrusion and specialized component products sold to RV and other manufacturers, for total cash consideration of $144,048, net of cash acquired. The net cash consideration of $144,048 was funded entirely from the Company’s cash on hand, based on a final determination of the actual net assets as of the May 1, 2015 closing date and paid during the fourth quarter of fiscal 2015. Postle operates as an independent operation in the same manner as the Company’s other subsidiaries. The operations of Postle are reported in Other, which is a non-reportable segment.

The following table summarizes the fair values assigned to the Postle net assets acquired, which are based on internal and independent external valuations:

Cash	$	2,963
Other current assets		54,780
Property, plant and equipment		32,251
Customer relationships		38,800
Trademarks		6,000
Backlog		300
Goodwill		42,871
Current liabilities		(23,729	)
Capital lease obligations		(7,225	)
Total fair value of net assets acquired		147,011
Less cash acquired		(2,963	)
Total cash consideration for acquisition, less cash acquired	$	144,048

On the acquisition date, amortizable intangible assets had a weighted average useful life of 12.3 years. The customer relationships were valued based on the Discounted Cash Flow Method and will be amortized on an accelerated basis over 12 years. The trademarks were valued on the Relief from Royalty Method and will be amortized on a straight-line basis over 15 years. Backlog was valued based on the Discounted Cash Flow Method and was amortized on a straight-line basis over 6 weeks. Goodwill is deductible for tax purposes.

6

Cruiser RV, LLC and DRV, LLC

On January 5, 2015, the Company closed on a Stock Purchase Agreement (“CRV/DRV SPA”) for the acquisition of all the outstanding membership units of towable recreational vehicle manufacturer Cruiser RV, LLC (“CRV”) and luxury fifth wheel towable recreational vehicle manufacturer DRV, LLC (“DRV”) through its Heartland Recreational Vehicles, LLC subsidiary (“Heartland”). The Heartland operations are reported within the towable recreational vehicle reportable segment. In accordance with the CRV/DRV SPA, the closing was deemed effective as of January 1, 2015. As contemplated in the CRV/DRV SPA, the Company also acquired, in a series of integrated transactions, certain real estate used in the ongoing operations of CRV and DRV. The initial cash paid for this acquisition was $47,412, subject to adjustment, and was funded entirely from the Company’s cash on hand. This payment of $47,412, less the $1,062 of cash on hand at the acquisition date, resulted in initial net cash consideration of $46,350. Adjustments to increase the net cash consideration by $1,173 were identified, based on the preliminary determination of the actual net assets as of the close of business on December 31, 2014 and the finalization of certain tax matters, and paid during the fourth quarter of fiscal 2015. The $1,173 included reimbursing the seller for $1,062 of cash on hand at the acquisition date and resulted in total net cash consideration of $47,523. The Company purchased CRV and DRV to expand its towable recreational vehicle market share and to supplement and expand its existing lightweight travel trailer and luxury fifth wheel product offerings and dealer base.

The following table summarizes the fair values assigned to the CRV and DRV net assets acquired, which are based on internal and independent external valuations. Additional adjustments to certain accounts, such as acquired medical benefit liabilities, are possible but not expected to be material:

Cash	$	1,062
Other current assets		22,175
Property, plant and equipment		4,533
Dealer network		14,300
Trademarks		5,400
Backlog		450
Goodwill		13,172
Current liabilities		(12,507	)
Total fair value of net assets acquired		48,585
Less cash acquired		(1,062	)
Total cash consideration for acquisition, less cash acquired	$	47,523

On the acquisition date, amortizable intangible assets had a weighted average useful life of 13.9 years. The dealer network was valued based on the Discounted Cash Flow Method and will be amortized on an accelerated basis over 12 years. The trademarks were valued on the Relief from Royalty Method and will be amortized on a straight-line basis over 20 years. Backlog was valued based on the Discounted Cash Flow Method and was amortized on a straight-line basis over 6 weeks. Goodwill is deductible for tax purposes.

The following unaudited pro forma information represents the Company’s results of operations as if the fiscal 2015 acquisitions of both Postle and CRV/DRV had occurred at the beginning of fiscal 2014. These performance results may not be indicative of the actual results that would have occurred under the ownership and management of the Company.

	Three Months Ended October 31,  2014
Net sales	$	1,001,227
Net income	$	43,774
Basic earnings per common share	$	0.82
Diluted earnings per common share	$	0.82

3. Discontinued Operations

On July 31, 2013, the Company entered into a Stock Purchase Agreement (“ASV SPA”) to sell its bus business to Allied Specialty Vehicles, Inc. (“ASV”) for cash of $100,000, subject to closing adjustments for changes in the net assets sold from April 30, 2013, to the closing date. The Company’s bus business manufactured and sold transit and shuttle buses. The sale was completed as of October 20, 2013, and the Company received the $100,000 on October 21, 2013, and an additional $5,043 in February 2014, representing the increase in bus net assets since April 30, 2013.

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The results of operations for the bus business have been reported as discontinued operations in the Condensed Consolidated Statements of Income and Comprehensive Income for all periods presented.

The following table summarizes the results of discontinued operations:

	Three Months Ended October  31,
	2015			2014
Operating loss of discontinued operations before income taxes	$	(378	)	$	(435	)
Income tax benefit		(139	)		(159	)
Loss from discontinued operations, net of taxes	$	(239	)	$	(276	)

The operating loss of discontinued operations before income taxes for the three months ended October 31, 2015 and October 31, 2014 reflects expenses incurred directly related to the former bus operations, including ongoing costs related to liabilities retained by the Company under the ASV SPA for bus product liability and worker’s compensation claims occurring prior to the closing date of the sale.

As a result of the sale of the bus business, and in accordance with the ASV SPA, the Company is no longer the primary obligor to the taxing authorities for bus operations in certain states. Under the terms of the sale, the Company has agreed to indemnify ASV for any claims made by the taxing authorities after the date of sale for these uncertain tax positions, but does not expect future losses under this guarantee to be material.

4. Business Segments

The Company has two reportable segments: (1) towable recreational vehicles and (2) motorized recreational vehicles. The towable recreational vehicle reportable segment consists of the following operating segments that have been aggregated: Airstream (towable), Bison, CrossRoads, Heartland (including its wholly owned subsidiaries CRV and DRV), Keystone, KZ and Livin’ Lite. The motorized recreational vehicle reportable segment consists of the following operating segments that have been aggregated: Airstream (motorized) and Thor Motor Coach.

The operations of the Company’s Postle subsidiary, which was acquired May 1, 2015, are included in Other, which is a non-reportable segment. Net sales included in Other mainly relate to the sale of aluminum extrusions and specialized component products. Intercompany eliminations adjust for Postle sales to the Company’s towables and motorized segments, which are transacted at established arm’s length transfer prices generally consistent with the selling prices of extrusion components to third party customers.

All manufacturing is conducted in the United States. Total assets include those assets used in the operation of each reportable and non-reportable segment, and the Corporate assets consist primarily of cash and cash equivalents and deferred income tax assets.

	Three Months Ended October  31,
	2015			2014
Net sales:
Recreational vehicles:
Towables	$	744,679		$	699,778
Motorized		251,099			222,214
Total recreational vehicles		995,778			921,992
Other		50,382			—
Intercompany eliminations		(15,809	)		—
Total	$	1,030,351		$	921,992

8

	Three Months Ended October  31,
	2015			2014
Income (loss) from continuing operations before income taxes:
Recreational vehicles:
Towables	$	63,224		$	49,299
Motorized		21,653			15,101
Total recreational vehicles		84,877			64,400
Other, net		2,656			—
Corporate		(9,842	)		(7,694	)
Total	$	77,691		$	56,706
	October 31, 2015			July 31, 2015
Total assets:
Recreational vehicles:
Towables	$	951,863		$	907,175
Motorized		196,260			162,940
Total recreational vehicles		1,148,123			1,070,115
Other, net		155,276			161,075
Corporate		268,984			272,058
Total	$	1,572,383		$	1,503,248

5. Earnings Per Common Share

	Three Months Ended October  31,
	2015		2014
Weighted average common shares outstanding for basic earnings per share		52,409,945		53,336,592
Stock options, unvested restricted stock and restricted stock units		135,615		96,855
Weighted average common shares outstanding for diluted earnings per share		52,545,560		53,433,447

At October 31, 2015 and 2014, the Company had 48,119 and 39,523, respectively, of stock options, unvested restricted stock and restricted stock units outstanding which were excluded from this calculation as their effect would be antidilutive.

6. Inventories

Major classifications of inventories are as follows:

	October 31, 2015			July 31, 2015
Finished goods – RV	$	48,111		$	35,693
Finished goods – other		15,803			18,045
Work in process		55,368			51,556
Raw materials		132,480			133,482
Chassis		50,008			37,739
Total		301,770			276,515
Excess of FIFO costs over LIFO costs		(30,400	)		(30,400	)
Total inventories, net	$	271,370		$	246,115

Of the $301,770 and $276,515 of inventories at October 31, 2015 and July 31, 2015, all but $79,592 and $72,498, respectively, at certain subsidiaries were valued on a last-in, first-out basis. The $79,592 and $72,498 of inventories were valued on a first-in, first-out method.

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7. Property, Plant and Equipment

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

	October 31, 2015			July 31, 2015
Land	$	29,187		$	27,447
Buildings and improvements		224,001			214,462
Machinery and equipment		110,421			106,959
Total cost		363,609			348,868
Less accumulated depreciation		(120,094	)		(114,823	)
Property, plant and equipment, net	$	243,515		$	234,045

Property, plant and equipment at October 31, 2015 includes buildings and improvements under capital leases of $6,527 and related amortization included in accumulated depreciation of $272.

8. Intangible Assets and Goodwill

The components of amortizable intangible assets are as follows:

	Weighted Average Remaining Life in  Years at October 31, 2015	October 31, 2015				July 31, 2015
		Cost		Accumulated Amortization		Cost		Accumulated Amortization
Dealer networks/customer relationships	10	$	143,860	$	41,780	$	143,860	$	37,194
Trademarks	19		55,282		8,244		55,282		7,608
Design technology and other intangibles	9		22,400		8,843		22,400		8,168
Non-compete agreements	4		450		135		4,710		4,264
Total amortizable intangible assets		$	221,992	$	59,002	$	226,252	$	57,234

The dealer networks and customer relationships are being amortized on an accelerated basis. Trademarks, design technology and other intangibles and non-compete agreements are amortized on a straight-line basis.

Estimated annual amortization expense is as follows:

For the fiscal year ending July 31, 2016	$	23,440
For the fiscal year ending July 31, 2017		20,671
For the fiscal year ending July 31, 2018		18,986
For the fiscal year ending July 31, 2019		16,975
For the fiscal year ending July 31, 2020		15,256
For the fiscal year ending July 31, 2021 and thereafter		73,690
	$	169,018

Of the recorded goodwill of $312,622 at both October 31, 2015 and July 31, 2015, $269,751 resides in the towable recreational vehicle segment and $42,871 resides in the other non-reportable segment.

Goodwill is not subject to amortization, but instead is reviewed for impairment by applying a fair-value based test to the Company’s reporting units on an annual basis as of April 30, or more frequently if events or circumstances indicate a potential impairment. The Company’s reporting units are the same as its operating segments, which are identified in Note 4 to the Condensed Consolidated Financial Statements. Fair values are determined by a discounted cash flow model. These estimates are subject to significant management judgment, including the determination of many factors such as sales growth rates, gross margin patterns, cost growth rates, terminal value assumptions and discount rates, and therefore largely represent Level 3 inputs as defined by ASC 820. Changes in these estimates can have a significant impact on the determination of cash flows and fair value and could potentially result in future material impairments.

9. Concentration of Risk

One dealer, FreedomRoads, LLC (“FreedomRoads”), accounted for 18% and 14% of the Company’s continuing consolidated net sales for the three months ended October 31, 2015 and the three months ended October 31, 2014, respectively. This dealer also accounted for 15% of the Company’s consolidated trade accounts receivable at October 31, 2015 and 22% at July 31, 2015. The loss of this dealer could have a significant effect on the Company’s business.

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10. Investments and Fair Value Measurements

The Company carries at fair value its investments in securities (primarily in mutual funds) held for the benefit of certain employees of the Company as part of a deferred compensation plan. These investments are measured with Level 1 inputs as prescribed by ASC 820, which include quoted prices in active markets for identical assets or liabilities and are the most observable inputs. Deferred compensation plan asset balances of $10,757 and $10,803 were recorded as of October 31, 2015 and July 31, 2015, respectively, as components of other long-term assets in the Condensed Consolidated Balance Sheets. An equal and offsetting liability is also recorded in regards to the deferred compensation plan as a component of other long-term liabilities in the Condensed Consolidated Balance Sheets. Changes in the fair value of the plan assets and the related liability are reflected in other income (expense), net and selling, general and administrative expenses, respectively, in the Condensed Consolidated Statements of Income and Comprehensive Income.

11. Product Warranties

The Company generally provides retail customers of its products with a one-year warranty covering defects in material or workmanship, with longer warranties on certain structural components. The Company records a liability based on its best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. Factors used in estimating the warranty liability include a history of units sold, existing dealer inventory, average cost incurred and a profile of the distribution of warranty expenditures over the warranty period. Management believes that the warranty reserves are adequate. However, actual claims incurred could differ from estimates, requiring adjustments to the reserves. Warranty reserves are reviewed and adjusted as necessary on at least a quarterly basis.

Changes in our product warranty reserves are as follows:

	Three Months Ended October  31,
	2015			2014
Beginning balance	$	108,206		$	94,938
Provision		26,233			29,461
Payments		(26,592	)		(26,759	)
Ending balance	$	107,847		$	97,640

12. Provision for Income Taxes

The overall effective income tax rate for the three months ended October 31, 2015 was 34.7% compared with 30.9% for the three months ended October 31, 2014. The primary reason for the increase in the effective income tax rate was the favorable settlement of uncertain tax benefits that occurred during the three months ended October 31, 2014 while no such settlements occurred in the three months ended October 31, 2015.

It is the Company’s policy to recognize interest and penalties accrued relative to unrecognized tax benefits in income tax expense. For the three months ended October 31, 2015, there were no material changes to the balance of unrecognized tax benefits and the Company accrued $141 in interest and penalties related to the remaining uncertain tax positions recorded at July 31, 2015.

The Company anticipates a decrease of approximately $3,525 in unrecognized tax benefits, and $935 in accrued interest and penalties related to unrecognized tax benefits recorded as of October 31, 2015, within the next 12 months from expected settlements or payments of uncertain tax positions and lapses of the applicable statutes of limitations. Actual results may differ from these estimates.

Generally, fiscal years 2012, 2013 and 2014 remain open for federal income tax purposes and fiscal years 2011, 2012, 2013 and 2014 remain open for state and Canadian income tax purposes. The Company and its subsidiaries file a consolidated U.S. federal income tax return and multiple state income tax returns. The Company is currently disputing the audit results by the state of Indiana for tax years ended July 31, 2008, 2009 and 2010. The Company believes it has adequately reserved for its exposure to additional payments for uncertain tax positions related to its Indiana income tax returns in its liability for unrecognized tax benefits.

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13. Contingent Liabilities, Commitments and Legal Matters

The Company is contingently liable under terms of repurchase agreements with financial institutions providing inventory financing for certain dealers of certain of its products. These arrangements, which are customary in the industry, provide for the repurchase of products sold to dealers in the event of default by the dealer on the agreement to pay the financial institution. The repurchase price is generally determined by the original sales price of the product and pre-defined curtailment arrangements. The Company typically resells the repurchased product at a discount from its repurchase price. The risk of loss from these agreements is spread over numerous dealers. In addition to the guarantee under these repurchase agreements, we may also be required to repurchase inventory relative to dealer terminations in certain states in accordance with state laws or regulatory requirements. The repurchase activity related to dealer terminations in certain states has been insignificant in relation to our repurchase obligation with financial institutions.

The Company’s total commercial commitments under standby repurchase obligations on dealer inventory financing as of October 31, 2015 and July 31, 2015 were $1,313,093 and $1,363,576, respectively. The commitment term is primarily up to eighteen months.

The Company accounts for the guarantee under repurchase agreements of dealers’ financing by deferring a portion of the related product sale that represents the estimated fair value of the guarantee at inception. The estimated fair value takes into account an estimate of the losses that may be incurred upon resale of any repurchases. This estimate is based on recent historical experience supplemented by the Company’s assessment of current economic and other conditions affecting its dealers. This deferred amount is included in the repurchase and guarantee reserve balances of $4,010 and $4,163 as of October 31, 2015 and July 31, 2015, respectively, which are included in other current liabilities on the Condensed Consolidated Balance Sheets.

The following table reflects losses incurred related to repurchase agreements that were settled in the periods noted. The Company believes that any future losses under these agreements will not have a significant effect on the Company’s consolidated financial position, results of operations or cash flows.

	Three Months Ended October  31,
	2015		2014
Cost of units repurchased	$	819	$	1,645
Realization of units resold		687		1,440
Losses due to repurchase	$	132	$	205

The Company is also involved in certain litigation arising out of its operations in the normal course of its business, most of which is based upon state “lemon laws”, warranty claims and vehicle accidents (for which the Company carries insurance above a specified self-insured retention or deductible amount). The outcomes of legal proceedings and claims brought against the Company are subject to significant uncertainty. There is significant judgment required in assessing both the probability of an adverse outcome and the determination as to whether an exposure can be reasonably estimated. In management’s opinion, the ultimate disposition of any current legal proceedings or claims against the Company will not have a material effect on the Company’s financial condition, operating results or cash flows. Litigation is, however, inherently uncertain and an adverse outcome from such litigation could have a material effect on the operating results of a particular reporting period.

14. Stockholders’ Equity

Stock-Based Compensation

During fiscal 2013, the Compensation and Development Committee of the Board (“the Committee”) approved a program to award restricted stock units to certain employees at the operating subsidiary and corporate levels. Under this program, the Committee approved awards that were granted in fiscal 2015 related to fiscal year 2014 performance and approved additional awards that were granted in fiscal 2016 related to fiscal 2015 performance. The employee restricted stock units vest, and shares of common stock will be issued, in equal installments on the first, second and third anniversaries of the date of grant. In fiscal 2016 and fiscal 2015, the Nominating and Governance Committee of the Board awarded restricted stock units to Board members that will vest, and shares of common stock will be issued, on the first anniversary of the date of the grant.

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Total expense recognized in the three months ended October 31, 2015 and October 31, 2014 for these restricted stock unit awards and other stock-based compensation was $2,279 and $1,565, respectively.

For the restricted stock units that vested during the three month period ended October 31, 2015, a certain portion of the vested shares awarded were withheld as treasury shares to cover the recipients’ estimated withholding taxes. The total related taxes withheld of $2,484, to be paid by the Company on behalf of the recipients of these awards, is included in accrued compensation and related items as of October 31, 2015 in the Condensed Consolidated Balance Sheet and is expected to be paid in the second quarter of fiscal 2016.

Retained Earnings

The components of the change in retained earnings are as follows:

Balance as of July 31, 2015	$	1,172,432
Net income		50,497
Dividends declared and paid		(15,743	)
Balance as of October 31, 2015	$	1,207,186

The dividends declared and paid total of $15,743 represents the regular quarterly dividend of $0.30 per share for the first quarter of fiscal 2016.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Unless otherwise indicated, all dollar amounts are presented in thousands except per share data.

Forward Looking Statements

This report includes certain statements that are “forward looking” statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward looking statements are made based on management’s current expectations and beliefs regarding future and anticipated developments and their effects upon Thor Industries, Inc., and inherently involve uncertainties and risks. These forward looking statements are not a guarantee of future performance. We cannot assure you that actual results will not differ from our expectations. Factors which could cause materially different results include, among others, raw material and commodity price fluctuations, material or chassis supply restrictions, legislative and regulatory developments, the costs of compliance with increased governmental regulation, legal issues, the potential impact of increased tax burdens on our dealers and retail consumers, lower consumer confidence and the level of discretionary consumer spending, interest rate fluctuations and the potential economic impact of rising interest rates, restrictive lending practices, management changes, the success of new product introductions, the pace of obtaining and producing at new production facilities, the pace of acquisitions, the potential loss of existing customers of acquisitions, the integration of new acquisitions, the availability of delivery personnel, asset impairment charges, cost structure changes, competition, the potential impact of the strengthening U.S. dollar on international demand, general economic, market and political conditions and the other risks and uncertainties discussed more fully in Item 1A of our Annual Report on Form 10-K for the year ended July 31, 2015. We disclaim any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained in this report or to reflect any change in our expectations after the date hereof or any change in events, conditions or circumstances on which any statement is based, except as required by law.

Executive Overview

We were founded in 1980 and, through our operating subsidiaries, have grown to be one of the largest manufacturers of recreational vehicles (“RVs”) in North America, by units sold and revenue, based on retail statistics published by Statistical Surveys, Inc. (“Stat Surveys”) and other reported data. Our combined U.S. and Canadian RV industry market share in the travel trailer and fifth wheel portion of the towable segment is approximately 37.2% for the calendar year-to-date period ended September 30, 2015. In the motorized segment of the RV industry, we have a combined U.S. and Canadian market share of approximately 25.0% for the calendar year-to-date period ended September 30, 2015.

Our business model includes decentralized operating units, and we compensate operating management with a combination of cash and restricted stock units, based primarily upon the profitability of the business unit which they manage. Our corporate staff provides financial management, insurance, legal, human resource, risk management and internal audit functions. Senior corporate management interacts regularly with operating management to assure that corporate objectives are understood and are monitored appropriately.

Our RV products are sold to dealers who, in turn, retail those products. We generally do not finance dealers directly, but do provide industry customary repurchase agreements to certain of the dealers’ floor plan lenders.

Our growth has been achieved both organically and by acquisition. Our strategy is designed to increase our profitability by driving innovation, servicing our customers, manufacturing quality products, improving the efficiencies of our facilities and by acquisitions.

We have relied on internally generated cash flows from operations to finance substantially all of our growth, although we may borrow to make an acquisition if we believe the incremental cash flows will provide for rapid payback. Capital expenditures of $15,922 for the three months ended October 31, 2015 were made primarily for land and production building additions and improvements, as well as for replacing machinery and equipment used in the ordinary course of business.

Recent Events

On May 1, 2015, the Company closed on a Membership Interest Purchase Agreement with Postle Aluminum Company, LLC for the acquisition of all the outstanding membership units of Postle Operating, LLC (“Postle”) for cash consideration paid in fiscal 2015 of $144,048, net of cash acquired. Postle is a manufacturer of aluminum extrusion and specialized component products for the RV and other markets, and operates as an independent operation in the same manner as the Company’s other subsidiaries.

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On January 5, 2015, the Company closed on a Stock Purchase Agreement (“CRV/DRV SPA”) for the acquisition of all the outstanding membership units of towable recreational vehicle manufacturer Cruiser RV, LLC (“CRV”) and luxury fifth wheel towable recreational vehicle manufacturer DRV, LLC (“DRV”) by its Heartland Recreational Vehicles, LLC subsidiary (“Heartland”). In accordance with the CRV/DRV SPA, the closing was deemed effective as of January 1, 2015. As contemplated in the CRV/DRV SPA, the Company also acquired, in a series of integrated transactions, certain real estate used in the ongoing operations of CRV and DRV. Cash consideration paid for this acquisition in fiscal 2015 was $47,523, net of cash acquired. The Company purchased CRV and DRV to expand its towable recreational vehicle market share and to supplement and expand its existing lightweight travel trailer and luxury fifth wheel product offerings and dealer base.

Industry Outlook

The Company monitors the industry conditions in the RV market through the use of monthly wholesale shipment data as reported by the Recreation Vehicle Industry Association (“RVIA”), which is typically issued on a one month lag and represents manufacturers’ RV production and delivery to dealers. In addition, we also monitor monthly retail sales trends as reported by Stat Surveys, whose data is typically issued on a month and a half lag. The Company believes that monthly RV retail sales data is important as consumer purchases impact future dealer orders and ultimately our production.

We believe our dealer inventory levels are appropriate for seasonal consumer demand. RV dealer inventory of Thor products as of October 31, 2015 increased 6.0% to approximately 66,200 units from approximately 62,450 units as of October 31, 2014, partially attributable to acquisitions since the prior year. Thor’s RV backlog as of October 31, 2015 increased 15.5% to $1,051,023 from $909,651 as of October 31, 2014, also partially attributable to acquisitions since the prior year.

Industry Wholesale Statistics

Key wholesale statistics for the RV industry, as reported by RVIA, are as follows:

	U.S. and Canada Wholesale Unit Shipments
	Calendar Year through September  30,						% Change
	2015		2014		Increase
Towable Units		249,136		237,320		11,816		5.0
Motorized Units		35,913		34,032		1,881		5.5
Total		285,049		271,352		13,697		5.0

In August 2015, the RVIA forecasted that calendar year 2015 wholesale shipments for all RV categories will total 373,700 units, a 4.7% increase over calendar year 2014, with most of the 2015 unit growth expected in travel trailers. Calendar year 2015 motorized unit shipments are forecasted to increase 6.8% over calendar year 2014. Travel trailers and fifth wheels are expected to account for 84% of all RV shipments in 2015. The outlook for calendar 2015 growth in RV sales is based on modestly rising consumer confidence and home values, improved credit availability, continued slow gains in job and income prospects and the impact of the current stronger U.S dollar on Canadian sales as well as other global economic risks. RVIA has also forecasted that 2016 calendar year shipments for all categories will total 383,100 units, a 2.5% increase from the expected calendar year 2015 wholesale shipments.

Industry Retail Statistics

We believe that retail demand is the key to continued growth in the RV industry, and that annual RV industry wholesale shipments will generally be in line with annual retail sales going forward.

Key retail statistics for the RV industry, as reported by Stat Surveys, are as follows:

	U.S. and Canada Retail Unit Registrations
	Calendar Year through September  30,						% Change
	2015		2014		Increase
Towable Units		272,326		245,518		26,808		10.9
Motorized Units		35,076		31,327		3,749		12.0
Total		307,402		276,845		30,557		11.0

Note: Data reported by Stat Surveys is based on official state records. This information is subject to adjustment and is continuously updated.

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Company Wholesale Statistics

The Company’s wholesale RV shipments, for the calendar year periods through September 30, 2015 and 2014 to correspond to the industry periods denoted above, were as follows:

	U.S. and Canada Wholesale Unit Shipments
	Calendar Year through September  30,						%
	2015		2014		Increase		Change
Towable Units		90,611		82,363		8,248		10.0
Motorized Units		8,866		8,673		193		2.2
Total		99,477		91,036		8,441		9.3

Company Retail Statistics

Retail statistics of the Company’s RV products, as reported by Stat Surveys, for the calendar year periods through September 30, 2015 and 2014 to correspond to the industry periods denoted above (and adjusted to include results of acquisitions only from the date of acquisition forward), were as follows:

	U.S. and Canada Retail Unit Registrations
	Calendar Year through September  30,						%
	2015		2014		Increase		Change
Towable Units		97,550		87,373		10,177		11.6
Motorized Units		8,772		7,432		1,340		18.0
Total		106,322		94,805		11,517		12.1

Our outlook for future growth in retail sales is dependent upon various economic conditions faced by consumers such as the rate of unemployment, the level of consumer confidence, the growth in disposable income of consumers, changes in interest rates, credit availability, the pace of recovery in the housing market, the impact of rising taxes and fuel prices. With continued improvement in consumer confidence, availability of retail and wholesale credit, low interest rates and the absence of negative economic factors, we would expect to see incremental improvements in RV sales and expect to benefit from our ability to increase production to meet increasing demand.

A positive future outlook for the RV segment is supported by favorable demographics, as more people reach the age brackets that historically have accounted for the bulk of retail RV sales. The number of consumers between the ages of 55 and 74 will total 78 million by 2025, 24% higher than in 2012 according to the RVIA. In addition, in recent years the industry has benefited from growing retail sales to younger consumers with new product offerings targeted to younger, more active families, as they place a higher value on family outdoor recreation than any prior generation. Based on a study from the Pew Research Center, the “Millennial” generation, defined as those currently between the ages of 18 and 33, consisted of more than 68 million people in 2014. In general, these consumers are more technologically savvy, but still value active outdoor experiences shared with family and friends, making them strong potential customers for our industry in the decades to come. Younger RV consumers are generally attracted to lower and moderately priced entry-level travel trailers, as affordability is a key driver at this stage in their lives. As the first generation of the internet age, Millennials are more comfortable gathering information online, and are therefore generally more knowledgeable about products and competitive pricing than any prior generation.

Economic or industry-wide factors affecting our RV business include the costs of commodities used in the manufacture of our products. Material cost is the primary factor determining our cost of products sold, and any future increases in raw material costs would impact our profit margins negatively if we were unable to raise the prices for our products by corresponding amounts. Historically, we have been able to pass along cost increases to customers.

Recently, we have not experienced any unusual cost increases or supply constraints from our chassis suppliers. The recreational vehicle industry has, from time to time, experienced shortages of chassis due to various causes such as component shortages, production delays or work stoppages at the chassis manufacturers which has impacted our sales and earnings. We believe that the current supply of chassis used in our motorized RV production is adequate for current production levels and that available inventory would compensate for short-term changes in supply schedules if they occur.

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Three Months Ended October 31, 2015 vs. Three Months Ended October 31, 2014

	Three Months Ended October 31, 2015					Three Months Ended October 31, 2014					Change Amount		% Change
NET SALES:
Recreational vehicles
Towables	$	744,679				$	699,778				$	44,901		6.4
Motorized		251,099					222,214					28,885		13.0
Total recreational vehicles		995,778					921,992					73,786		8.0
Other		50,382					—					50,382		—
Intercompany eliminations		(15,809	)				—					(15,809)		—
Total	$	1,030,351				$	921,992				$	108,359		11.8
# OF UNITS:
Recreational vehicles
Towables		28,933					26,447					2,486		9.4
Motorized		3,069					2,734					335		12.3
Total		32,002					29,181					2,821		9.7
				% of Segment Net Sales					% of Segment Net Sales		Change Amount		% Change
GROSS PROFIT:
Recreational vehicles
Towables	$	110,765			14.9	$	91,606			13.1	$	19,159		20.9
Motorized		35,362			14.1		26,059			11.7		9,303		35.7
Total recreational vehicles		146,127			14.7		117,665			12.8		28,462		24.2
Other, net		6,089			12.1		—			—		6,089		—
Total	$	152,216			14.8	$	117,665			12.8	$	34,551		29.4
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:
Recreational vehicles
Towables	$	43,342			5.8	$	38,765			5.5	$	4,577		11.8
Motorized		13,710			5.5		10,947			4.9		2,763		25.2
Total recreational vehicles		57,052			5.7		49,712			5.4		7,340		14.8
Other		1,602			3.2		—			—		1,602		—
Corporate		9,800			—		8,277			—		1,523		18.4
Total	$	68,454			6.6	$	57,989			6.3	$	10,465		18.0
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES:
Recreational vehicles
Towables	$	63,224			8.5	$	49,299			7.0	$	13,925		28.2
Motorized		21,653			8.6		15,101			6.8		6,552		43.4
Total recreational vehicles		84,877			8.5		64,400			7.0		20,477		31.8
Other, net		2,656			5.3		—			—		2,656		—
Corporate		(9,842	)		—		(7,694	)		—		(2,148)		(27.9)
Total	$	77,691			7.5	$	56,706			6.2	$	20,985		37.0

	As of October 31, 2015		As of October 31, 2014		Change Amount		% Change
ORDER BACKLOG:
Recreational vehicles
Towables	$	710,013	$	653,441	$	56,572		8.7
Motorized		341,010		256,210		84,800		33.1
Total	$	1,051,023	$	909,651	$	141,372		15.5

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CONSOLIDATED

Consolidated net sales for the three months ended October 31, 2015 increased $108,359, or 11.8%, compared to the three months ended October 31, 2014, partially attributable to the acquisitions of CRV/DRV and Postle since the prior year period. Consolidated gross profit increased $34,551, or 29.4%, compared to the three months ended October 31, 2014. Consolidated gross profit was 14.8% of consolidated net sales for the three months ended October 31, 2015 and 12.8% for the three months ended October 31, 2014. Selling, general and administrative expenses for the three months ended October 31, 2015 increased 18.0% compared to the three months ended October 31, 2014. Income from continuing operations before income taxes for the three months ended October 31, 2015 was $77,691, as compared to $56,706 for the three months ended October 31, 2014, an increase of $20,985 or 37.0%. The reasons for the changes in net sales, gross profit, selling, general and administrative expenses and income before income taxes are addressed in the segment reporting that follows.

Corporate costs included in selling, general and administrative expenses increased $1,523 to $9,800 for the three months ended October 31, 2015 compared to $8,277 for the three months ended October 31, 2014. The increase is primarily due to an increase in legal and professional fees of $1,581, largely attributable to professional fees incurred related to the development of long-term strategic growth initiatives. In addition, compensation costs also increased, as bonuses increased $458 in correlation with the increase in income from continuing operations before income taxes compared to the prior year, and stock-based compensation increased $714. The stock-based compensation increase is due to increasing income from continuing operations before income taxes over the past three years, as most stock awards vest ratably over a three year period. These increases were partially offset by decreases in deferred compensation expense of $438 and $225 in expenses related to our Corporate repurchase reserve related to vehicle repurchase commitments. Insurance related costs also decreased $300.

Corporate interest income and other income and expense was $42 of net expense for the three months ended October 31, 2015 compared to $583 of net interest and other income for the three months ended October 31, 2014. The $625 increase in net expense is primarily due to the market value of the Company’s deferred compensation plan assets depreciating $192 in the current period as compared to appreciating $246 in the prior year, an increase in net expense of $438. In addition, interest income on notes receivable decreased $217 as a result of lower note balances.

The overall effective income tax rate for the three months ended October 31, 2015 was 34.7% compared with 30.9% for the three months ended October 31, 2014. The primary reason for the increase in the effective income tax rate was the favorable settlement of uncertain tax benefits that occurred during the three months ended October 31, 2014 while no such settlements occurred in the three months ended October 31, 2015.

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Segment Reporting

TOWABLE RECREATIONAL VEHICLES

Analysis of the change in net sales for the three months ended October 31, 2015 vs. the three months ended October 31, 2014:

	Three Months Ended October 31, 2015		% of Segment Net Sales		Three Months Ended October 31, 2014		% of Segment Net Sales		Change Amount			% Change
NET SALES:
Towables
Travel Trailers and Other	$	417,263		56.0	$	359,487		51.4	$	57,776			16.1
Fifth Wheels		327,416		44.0		340,291		48.6		(12,875	)		(3.8	)
Total Towables	$	744,679		100.0	$	699,778		100.0	$	44,901			6.4
	Three Months Ended October 31, 2015		% of Segment Shipments		Three Months Ended October 31, 2014		% of Segment Shipments		Change Amount			% Change
# OF UNITS:
Towables
Travel Trailers and Other		21,396		74.0		18,359		69.4		3,037			16.5
Fifth Wheels		7,537		26.0		8,088		30.6		(551	)		(6.8	)
Total Towables		28,933		100.0		26,447		100.0		2,486			9.4

Impact of Change in Mix and Price on Net Sales:	% Increase (Decrease)
Towables
Travel Trailers and Other		(0.4	)
Fifth Wheels		3.0
Total Towables		(3.0	)

The increase in total towables net sales of 6.4% compared to the prior year quarter resulted from a 9.4% increase in unit shipments and a 3.0% decrease in the impact of the change in the overall net price per unit. The increase in total towable net sales was partially due to the acquisition of CRV/DRV since the prior year period. The overall industry increase in combined travel trailer and fifth wheel wholesale unit shipments for the three months ended September 30, 2015 was 4.8% compared to the same period last year according to statistics published by RVIA.

The decrease in the overall net price per unit within the travel trailer product lines of 0.4% was primarily due to product mix, as sales in the current period include a higher concentration of entry-level to mid-level product lines as compared to the prior year period. The increase in the overall net price per unit within the fifth wheel product lines of 3.0% was due to changes in product mix, which is primarily due to acquisitions since the prior year, and net price increases.

Cost of products sold increased $25,742 to $633,914, or 85.1% of towables net sales, for the three months ended October 31, 2015 compared to $608,172, or 86.9% of towables net sales, for the three months ended October 31, 2014. The change in material, labor, freight-out and warranty comprised $21,620 of the $25,742 increase in cost of products sold due to increased sales volume. Material, labor, freight-out and warranty as a combined percentage of towables net sales decreased to 79.2% for the three months ended October 31, 2015 compared to 81.3% for the three months ended October 31, 2014. This decrease in percentage was primarily the result of a decrease in the material cost percentage to sales due to favorable product mix and selective net selling price increases since the prior year period. Labor and warranty cost percentages also improved slightly. Total manufacturing overhead increased $4,122 with the increase in sales, and increased as a percentage of towables net sales from 5.6% to 5.9% due to increased percentages in both facility related and self-insured insurance costs.

Towables gross profit increased $19,159 to $110,765, or 14.9% of towables net sales, for the three months ended October 31, 2015 compared to $91,606, or 13.1% of towables net sales, for the three months ended October 31, 2014. The increases in gross profit and gross profit percentage were primarily due to the increase in net sales noted above coupled with the decrease in the cost of products sold percentage noted above.

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Selling, general and administrative expenses were $43,342, or 5.8% of towables net sales, for the three months ended October 31, 2015 compared to $38,765, or 5.5% of towables net sales, for the three months ended October 31, 2014. The primary reason for the $4,577 increase was increased towables net sales and towables income before income taxes, which caused related commissions, bonuses and other compensation to increase by $3,405. Sales related travel, advertising and promotional costs also increased $754 in correlation with the sales increase. These two cost categories were also the primary reasons for the increase in selling, general and administrative expense as a percentage of net sales.

Towables income before income taxes was 8.5% of towables net sales for the three months ended October 31, 2015 and 7.0% for the three months ended October 31, 2014. The primary reasons for this increase in percentage were the impact of the increase in net sales along with the decrease in the cost of products sold percentage noted above, partially offset by the increase in the selling, general and administrative expense percentage noted above.

MOTORIZED RECREATIONAL VEHICLES

Analysis of the change in net sales for the three months ended October 31, 2015 vs. the three months ended October 31, 2014:

	Three Months Ended October 31, 2015		% of Segment Net Sales		Three Months Ended October 31, 2014		% of Segment Net Sales		Change Amount			% Change
NET SALES:
Motorized
Class A	$	145,431		57.9	$	137,848		62.0	$	7,583			5.5
Class C		82,427		32.8		62,840		28.3		19,587			31.2
Class B		23,241		9.3		21,526		9.7		1,715			8.0
Total Motorized	$	251,099		100.0	$	222,214		100.0	$	28,885			13.0
	Three Months Ended October 31, 2015		% of Segment Shipments		Three Months Ended October 31, 2014		% of Segment Shipments		Change Amount			% Change
# OF UNITS:
Motorized
Class A		1,537		50.1		1,551		56.7		(14	)		(0.9	)
Class C		1,341		43.7		994		36.4		347			34.9
Class B		191		6.2		189		6.9		2			1.1
Total Motorized		3,069		100.0		2,734		100.0		335			12.3

Impact of Change in Mix and Price on Net Sales:	% Increase (Decrease)
Motorized
Class A		6.4
Class C		(3.7	)
Class B		6.9
Total Motorized		0.7

The increase in total motorized net sales of 13.0% compared to the prior year quarter resulted from a 12.3% increase in unit shipments and a 0.7% increase in the impact of the change in the overall net price per unit. The overall market increase in wholesale unit shipments of motorhomes was 4.6% for the three months ended September 30, 2015 compared to the same period last year according to statistics published by RVIA.

The increase in the overall net price per unit within the Class A product line of 6.4% was primarily due to a slight shift in the concentration of sales of the larger and generally more expensive diesel units from the more moderately priced gas units compared to a year ago. The decrease in the overall net price per unit within the Class C product line of 3.7% is primarily due to changes in product mix. The increase in the overall net price per unit within the Class B product line of 6.9% is primarily due to changes in product mix and net price increases.

Cost of products sold increased $19,582 to $215,737, or 85.9% of motorized net sales, for the three months ended October 31, 2015 compared to $196,155, or 88.3% of motorized net sales, for the three months ended October 31, 2014. The change in material, labor, freight-out and warranty comprised $18,776 of the $19,582 increase due to increased sales volume. Material, labor, freight-out and warranty as a combined percentage of motorized net sales was 81.7% compared to 83.9% for the prior year period. The decrease in percentage was primarily due to improved warranty and labor costs percentages, as the combination of assimilating an increasing labor force while expanding production lines and product offerings in the past two years led to increased warranty and labor costs in the prior year period.

20

The material cost percentage to net sales also improved due to a reduction in certain material costs. Total manufacturing overhead increased $806 but decreased slightly as a percentage of motorized net sales from 4.4% to 4.2%.

Motorized gross profit increased $9,303 to $35,362, or 14.1% of motorized net sales, for the three months ended October 31, 2015 compared to $26,059, or 11.7% of motorized net sales, for the three months ended October 31, 2014. The $9,303 increase in gross profit was due primarily to the impact of the 12.3% increase in unit sales volume noted above, while the increase in gross profit as a percentage of motorized net sales was due to the increase in sales and the reduction in the costs of products sold percentage noted above.

Selling, general and administrative expenses were $13,710, or 5.5% of motorized net sales, for the three months ended October 31, 2015 compared to $10,947, or 4.9% of motorized net sales, for the three months ended October 31, 2014. The primary reason for the $2,763 increase, and the increase as a percentage of motorized net sales, was increased motorized net sales and motorized income before income taxes, which caused related commissions, bonuses and other compensation to increase by $2,272. Legal, professional and related settlement costs also increased $854. These increases were partially offset by a $337 reduction in vehicle repurchase losses.

Motorized income before income taxes was 8.6% of motorized net sales for the three months ended October 31, 2015 and 6.8% of motorized net sales for the three months ended October 31, 2014. The primary reasons for this increase in percentage were the impact of the increase in net sales coupled with the decrease in the cost of products sold percentage noted above, partially offset by the increase in the selling, general and administrative expense percentage noted above.

Financial Condition and Liquidity

As of October 31, 2015, we had $179,317 in cash and cash equivalents compared to $183,478 on July 31, 2015. The components of this $4,161 decrease in cash and cash equivalents are described in more detail below, but the decrease is primarily attributable to cash provided by operations of $18,892 and $8,367 in proceeds on notes receivable, less $15,922 and $15,743 paid for capital expenditures and dividends, respectively.

Working capital at October 31, 2015 was $431,500 compared to $397,506 at July 31, 2015. Capital expenditures of $15,922 for the three months ended October 31, 2015 were made primarily for land and production building additions and improvements, as well as replacing machinery and equipment used in the ordinary course of business.

We believe our cash and cash equivalents on hand and funds generated from operations will be sufficient to fund expected future operational requirements. We have relied on internally generated cash flows from operations to finance substantially all our growth. We may, however, consider debt to make an acquisition.

Our three main priorities for the use of current and future available cash include supporting and growing our core RV business, both organically and through acquisitions, maintaining and growing our regular dividends over time and strategic share repurchases or special dividends as determined by the Company’s Board.

In regard to supporting and growing our business, we anticipate additional capital expenditures in the remainder of fiscal 2016 of approximately $40,000, primarily for expanding our recreational vehicle production facilities and replacing and upgrading machinery, equipment and other assets to be used in the ordinary course of business. We may also consider additional strategic growth acquisitions that complement or expand our ongoing RV operations.

The Company’s Board currently intends to continue quarterly cash dividend payments in the future. The declaration of future dividends and the establishment of the per share amounts, record dates and payment dates for any such future dividends are subject to the determination of the Board, and will be dependent upon future earnings, cash flows and other factors. There are no limitations on the Company’s ability to pay dividends pursuant to any credit facility.

Future purchases of the Company’s common stock or special cash dividends may occur based upon market and business conditions, and excess cash availability, subject to applicable legal limitations and determination by the Board.

Operating Activities

Net cash provided by operating activities for the three months ended October 31, 2015 was $18,892 as compared to net cash provided by operating activities of $50,025 for the three months ended October 31, 2014.

For the three months ended October 31, 2015, net income adjusted for non-cash items (primarily depreciation, amortization of intangibles, deferred income tax provision and stock-based compensation) provided $66,206 of operating cash. The changes in working capital used $47,314 of operating cash during that period, primarily due to larger than usual seasonal increases in accounts receivable and inventory in correlation with the increase in current sales, production levels and backlog, partially offset by an increase in accounts payable.

21

For the three months ended October 31, 2014, net income adjusted for non-cash items provided $48,553 of operating cash. Changes in working capital provided $1,472 during that period, primarily due to a larger than usual increase in accounts receivable collections. In addition, there was a lower seasonal increase in inventory due to improved inventory management during this period compared to the prior period.

Investing Activities

Net cash used in investing activities for the three months ended October 31, 2015 was $7,515, primarily due to capital expenditures of $15,922, partially offset by proceeds received on notes receivable of $8,367.

Net cash used in investing activities for the three months ended October 31, 2014 was $11,436, primarily due to capital expenditures of $8,541 and a final purchase price adjustment of $2,915 related to the fiscal 2014 acquisition of the KZ towable recreational vehicle business.

Financing Activities

Net cash used in financing activities for the three months ended October 31, 2015 was $15,538, primarily for the regular quarterly cash dividend payments of $0.30 per share for the first quarter of fiscal 2016 totaling $15,743.

Net cash used in financing activities for the three months ended October 31, 2014 was $14,298, primarily for the regular quarterly cash dividend payments of $0.27 per share for the first quarter of fiscal 2015 totaling $14,412.

The Company increased its previous regular quarterly dividend of $0.27 per share to $0.30 per share in October 2015. In October 2014, the Company increased its previous regular quarterly dividend of $0.23 per share to $0.27 per share.

Accounting Pronouncements

Reference is made to Note 1 of our Condensed Consolidated Financial Statements contained in this report for a summary of recently issued accounting pronouncements, which summary is hereby incorporated by reference.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

None

ITEM 4. CONTROLS AND PROCEDURES

The Company maintains “disclosure controls and procedures”, as such term is defined under Exchange Act Rule 13a-15(e), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s 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. In designing and evaluating the disclosure controls and procedures, our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives and our management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. The Company has carried out an evaluation, as of the end of the period covered by this report, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective at attaining the level of reasonable assurance noted above.

During the quarter ended October 31, 2015, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

22

PART II – Other Information

ITEM 1. LEGAL PROCEEDINGS

The Company is involved in certain litigation arising out of its operations in the normal course of its business, most of which is based upon state “lemon laws”, warranty claims and vehicle accidents (for which the Company carries insurance above a specified self-insured retention or deductible amount). The outcomes of legal proceedings and claims brought against the Company are subject to significant uncertainty. There is significant judgment required in assessing both the probability of an adverse outcome and the determination as to whether an exposure can be reasonably estimated. In management’s opinion, the ultimate disposition of any current legal proceedings or claims against the Company will not have a material effect on the Company’s financial condition, operating results or cash flows. Litigation is, however, inherently uncertain and an adverse outcome from such litigation could have a material effect on the operating results of a particular reporting period.

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 July 31, 2015.

23

ITEM 6. EXHIBITS

Exhibit	Description
31.1	Chief Executive Officer’s Certification filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Chief Financial Officer’s Certification filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Chief Executive Officer’s Certification furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Chief Financial Officer’s Certification furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Calculation Linkbase Document
101.PRE	XBRL Taxonomy Presentation Linkbase Document
101.LAB	XBRL Taxonomy Label Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

Attached as Exhibits 101 to this report are the following financial statements from the Company’s Quarterly report on Form 10-Q for the quarter ended October 31, 2015 formatted in XBRL (“eXtensible Business Reporting Language”): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Income and Comprehensive Income, (iii) the Condensed Consolidated Statements of Cash Flows, and (iv) related notes to these financial statements.

24

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.

	THOR INDUSTRIES, INC.
	(Registrant)
DATE: November 30, 2015	/s/ Robert W. Martin
	Robert W. Martin
	President and Chief Executive Officer
DATE: November 30, 2015	/s/ Colleen Zuhl
	Colleen Zuhl
	Senior Vice President and Chief Financial Officer

25

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Robert W. Martin, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Thor Industries, Inc.;

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(s) 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 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(s) 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 involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

DATE: November 30, 2015	/s/ Robert W. Martin
	Robert W. Martin
	President and Chief Executive Officer (Principal executive officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Colleen Zuhl, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Thor Industries, Inc.;

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(s) 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 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(s) 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 involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

DATE: November 30, 2015	/s/ Colleen Zuhl
	Colleen Zuhl
	Senior Vice President and Chief Financial Officer (Principal financial and accounting officer)

EX-32.1

EXHIBIT 32.1

SARBANES-OXLEY ACT SECTION 906 CERTIFICATIONS

OF CHIEF EXECUTIVE OFFICER

In connection with this quarterly report on Form 10-Q of Thor Industries, Inc. for the period ended October 31, 2015, I, Robert W. Martin, Chief Executive Officer and President of Thor Industries, Inc., hereby certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1. this Form 10-Q for the period ended October 31, 2015 fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in this Form 10-Q for the period ended October 31, 2015 fairly presents, in all material respects, the financial condition and results of operations of Thor Industries, Inc.

DATE: November 30, 2015	/s/ Robert W. Martin
	Robert W. Martin
	President and Chief Executive Officer (Principal executive officer)

EX-32.2

EXHIBIT 32.2

SARBANES-OXLEY ACT SECTION 906 CERTIFICATIONS

OF CHIEF FINANCIAL OFFICER

In connection with this quarterly report on Form 10-Q of Thor Industries, Inc. for the period ended October 31, 2015, I, Colleen Zuhl, Vice President and Chief Financial Officer of Thor Industries, Inc., hereby certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

1. this Form 10-Q for the period ended October 31, 2015 fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in this Form 10-Q for the period ended October 31, 2015 fairly presents, in all material respects, the financial condition and results of operations of Thor Industries, Inc.

DATE: November 30, 2015	/s/ Colleen Zuhl
	Colleen Zuhl
	Senior Vice President and Chief Financial Officer (Principal financial and accounting officer)

XML

Schedule of Segment Reporting Information by Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Segment Reporting Information [Line Items]
Net sales	$ 1,030,351	$ 921,992
Income (loss) from continuing operations before income taxes	77,691	56,706
Corporate
Segment Reporting Information [Line Items]
Income (loss) from continuing operations before income taxes	(9,842)	(7,694)
Operating Segments | Recreational vehicles
Segment Reporting Information [Line Items]
Income (loss) from continuing operations before income taxes	84,877	64,400
Operating Segments | Recreational vehicles | Towables
Segment Reporting Information [Line Items]
Income (loss) from continuing operations before income taxes	63,224	49,299
Operating Segments | Recreational vehicles | Motorized
Segment Reporting Information [Line Items]
Income (loss) from continuing operations before income taxes	21,653	15,101
Operating Segments | Other
Segment Reporting Information [Line Items]
Income (loss) from continuing operations before income taxes	2,656
Continuing Operations
Segment Reporting Information [Line Items]
Net sales	1,030,351	921,992
Continuing Operations | Operating Segments | Recreational vehicles
Segment Reporting Information [Line Items]
Net sales	995,778	921,992
Continuing Operations | Operating Segments | Recreational vehicles | Towables
Segment Reporting Information [Line Items]
Net sales	744,679	699,778
Continuing Operations | Operating Segments | Recreational vehicles | Motorized
Segment Reporting Information [Line Items]
Net sales	251,099	$ 222,214
Continuing Operations | Operating Segments | Other
Segment Reporting Information [Line Items]
Net sales	50,382
Continuing Operations | Intercompany Eliminations
Segment Reporting Information [Line Items]
Net sales	$ (15,809)

XML

Provision for Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Income Tax [Line Items]
Effective income tax rate	34.70%	30.90%
Interest and penalties related to uncertain tax benefits	$ 141
Expected decrease in unrecognized tax benefits due to resolution of uncertain tax positions	3,525
Expected decrease in interest due to resolution of uncertain tax positions	$ 935

XML

Estimated Amortization Expense (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Expected Amortization Expense [Line Items]
Estimated annual amortization expense, For the fiscal year ending July 31, 2016		$ 23,440
Estimated annual amortization expense, For the fiscal year ending July 31, 2017		20,671
Estimated annual amortization expense, For the fiscal year ending July 31, 2018		18,986
Estimated annual amortization expense, For the fiscal year ending July 31, 2019		16,975
Estimated annual amortization expense, For the fiscal year ending July 31, 2020		15,256
Estimated annual amortization expense, For the fiscal year ending July 31, 2021 and thereafter		73,690
Estimated annual amortization expense, Total	$ 162,990	$ 169,018

XML

Contingent Liabilities Commitments and Legal Matters - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Jul. 31, 2015
Loss Contingencies [Line Items]
Standby Repurchase Obligations Amount	$ 1,313,093	$ 1,363,576
Term of Commitments	Up to eighteen months
Repurchase and guarantee reserve balances	$ 4,010	$ 4,163

XML

Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 363,609	$ 348,868
Accumulated depreciation	120,094	$ 114,823
Assets Held under Capital Leases
Property, Plant and Equipment [Line Items]
Property, plant and equipment	6,527
Accumulated depreciation	$ 272

XML

Summary of Preliminary Fair Value Assigned to Net Assets Acquired (Detail) - USD ($) $ in Thousands		3 Months Ended
	May. 01, 2015	Oct. 31, 2014	Oct. 31, 2015	Jul. 31, 2015
Business Acquisition [Line Items]
Goodwill			$ 312,622	$ 312,622
Total cash consideration for acquisition, less cash acquired		$ 2,915
Postle Operating, LLC
Business Acquisition [Line Items]
Cash	$ 2,963
Other current assets	54,780
Property, plant and equipment	32,251
Goodwill	42,871
Current liabilities	(23,729)
Capital lease obligations	(7,225)
Total fair value of net assets acquired	147,011
Less cash acquired	(2,963)
Total cash consideration for acquisition, less cash acquired	144,048
Postle Operating, LLC | Customer Relationships
Business Acquisition [Line Items]
Business acquisition allocated to amortizing intangible asset	38,800
Postle Operating, LLC | Trademarks
Business Acquisition [Line Items]
Business acquisition allocated to amortizing intangible asset	6,000
Postle Operating, LLC | Backlog
Business Acquisition [Line Items]
Business acquisition allocated to amortizing intangible asset	$ 300

XML

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Stock Based Compensation And Stockholders Equity [Line Items]
Stock-based compensation expense	$ 2,279	$ 1,565
Regular dividends declared and paid per common share	$ 0.30	$ 0.27
Regular Dividends declared and paid	$ 15,743
Restricted Stock
Stock Based Compensation And Stockholders Equity [Line Items]
Withholding taxes payable	$ 2,484

XML

Inventories (Tables)

3 Months Ended

Oct. 31, 2015

Schedule of Major Classifications of Inventories

Major classifications of inventories are as follows:

	October 31, 2015			July 31, 2015
Finished goods – RV	$	48,111		$	35,693
Finished goods – other		15,803			18,045
Work in process		55,368			51,556
Raw materials		132,480			133,482
Chassis		50,008			37,739
Total		301,770			276,515
Excess of FIFO costs over LIFO costs		(30,400	)		(30,400	)
Total inventories, net	$	271,370		$	246,115

XML

Concentration of Risk - Additional Information (Detail) - Freedom Roads, LLC	3 Months Ended		12 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Jul. 31, 2015
Net Sales
Concentration Risk [Line Items]
Concentration risk percentage	18.00%	14.00%
Accounts Receivable
Concentration Risk [Line Items]
Concentration risk percentage	15.00%		22.00%

XML

Earnings Per Common Share - Additional Information (Detail) - shares	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive stock options, unvested restricted stock and restricted stock units outstanding	48,119	39,523

XML

Operating Results of Discontinued Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Operating loss of discontinued operations before income taxes	$ (378)	$ (435)
Income tax benefit	(139)	(159)
Loss from discontinued operations, net of taxes	$ (239)	$ (276)

XML

Product Warranties - Additional Information (Detail)	3 Months Ended
	Oct. 31, 2015
Product Warranty Liability [Line Items]
Warranty period for retail customers, years	1 year

XML

Components of Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands			3 Months Ended
	May. 01, 2015	Jan. 05, 2015	Oct. 31, 2015	Jul. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Cost			$ 221,992	$ 226,252
Accumulated Amortization			$ 59,002	57,234
Dealer Network/Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Life in Years			10 years
Cost			$ 143,860	143,860
Accumulated Amortization			$ 41,780	37,194
Trademarks
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Life in Years	15 years	20 years	19 years
Cost			$ 55,282	55,282
Accumulated Amortization			$ 8,244	7,608
Design Technology And Other Intangibles
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Life in Years			9 years
Cost			$ 22,400	22,400
Accumulated Amortization			$ 8,843	8,168
Non-Compete Agreements
Finite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Life in Years			4 years
Cost			$ 450	4,710
Accumulated Amortization			$ 135	$ 4,264

XML

Business Segments

3 Months Ended

Oct. 31, 2015

Business Segments

4. Business Segments

The Company has two reportable segments: (1) towable recreational vehicles and (2) motorized recreational vehicles. The towable recreational vehicle reportable segment consists of the following operating segments that have been aggregated: Airstream (towable), Bison, CrossRoads, Heartland (including its wholly owned subsidiaries CRV and DRV), Keystone, KZ and Livin’ Lite. The motorized recreational vehicle reportable segment consists of the following operating segments that have been aggregated: Airstream (motorized) and Thor Motor Coach.

The operations of the Company’s Postle subsidiary, which was acquired May 1, 2015, are included in Other, which is a non-reportable segment. Net sales included in Other mainly relate to the sale of aluminum extrusions and specialized component products. Intercompany eliminations adjust for Postle sales to the Company’s towables and motorized segments, which are transacted at established arm’s length transfer prices generally consistent with the selling prices of extrusion components to third party customers.

All manufacturing is conducted in the United States. Total assets include those assets used in the operation of each reportable and non-reportable segment, and the Corporate assets consist primarily of cash and cash equivalents and deferred income tax assets.

	Three Months Ended October  31,
	2015			2014
Net sales:
Recreational vehicles:
Towables	$	744,679		$	699,778
Motorized		251,099			222,214
Total recreational vehicles		995,778			921,992
Other		50,382			—
Intercompany eliminations		(15,809	)		—
Total	$	1,030,351		$	921,992
	Three Months Ended October  31,
	2015			2014
Income (loss) from continuing operations before income taxes:
Recreational vehicles:
Towables	$	63,224		$	49,299
Motorized		21,653			15,101
Total recreational vehicles		84,877			64,400
Other, net		2,656			—
Corporate		(9,842	)		(7,694	)
Total	$	77,691		$	56,706
	October 31, 2015			July 31, 2015
Total assets:
Recreational vehicles:
Towables	$	951,863		$	907,175
Motorized		196,260			162,940
Total recreational vehicles		1,148,123			1,070,115
Other, net		155,276			161,075
Corporate		268,984			272,058
Total	$	1,572,383		$	1,503,248

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Schedule of Major Classifications of Inventories (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Inventory [Line Items]
Work in process	$ 55,368	$ 51,556
Raw materials	132,480	133,482
Chassis	50,008	37,739
Total	301,770	276,515
Excess of FIFO costs over LIFO costs	(30,400)	(30,400)
Total inventories, net	271,370	246,115
Recreational vehicles
Inventory [Line Items]
Finished goods	48,111	35,693
Other
Inventory [Line Items]
Finished goods	$ 15,803	$ 18,045

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Contingent Liabilities, Commitments and Legal Matters (Tables)

3 Months Ended

Oct. 31, 2015

Losses Due to Repurchases Related to Repurchase Agreements

The following table reflects losses incurred related to repurchase agreements that were settled in the periods noted. The Company believes that any future losses under these agreements will not have a significant effect on the Company’s consolidated financial position, results of operations or cash flows.

	Three Months Ended October  31,
	2015		2014
Cost of units repurchased	$	819	$	1,645
Realization of units resold		687		1,440
Losses due to repurchase	$	132	$	205

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Product Warranties (Tables)

3 Months Ended

Oct. 31, 2015

Schedule of Changes in Product Warranty Liabilities

Changes in our product warranty reserves are as follows:

	Three Months Ended October  31,
	2015			2014
Beginning balance	$	108,206		$	94,938
Provision		26,233			29,461
Payments		(26,592	)		(26,759	)
Ending balance	$	107,847		$	97,640

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Losses Due to Repurchases Related to Repurchase Agreements (Detail) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Loss Contingencies [Line Items]
Cost of units repurchased	$ 819	$ 1,645
Realization of units resold	687	1,440
Losses due to repurchase	$ 132	$ 205

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Inventories - Additional Information (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Inventory [Line Items]
Inventories	$ 301,770	$ 276,515
Subsidiaries valued inventories in first-in, first-out method	$ 79,592	$ 72,498

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Stockholders' Equity (Tables)

3 Months Ended

Oct. 31, 2015

Schedule of Change in Retained Earnings

The components of the change in retained earnings are as follows:

Balance as of July 31, 2015	$	1,172,432
Net income		50,497
Dividends declared and paid		(15,743	)
Balance as of October 31, 2015	$	1,207,186

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Summary of Significant Accounting Policies - Additional Information (Detail)	3 Months Ended
	Oct. 31, 2015 Segment
Summary Of Significant Accounting Policies [Line Items]
Number of reportable segments	2

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Discontinued Operations

3 Months Ended

Oct. 31, 2015

Discontinued Operations

3. Discontinued Operations

On July 31, 2013, the Company entered into a Stock Purchase Agreement (“ASV SPA”) to sell its bus business to Allied Specialty Vehicles, Inc. (“ASV”) for cash of $100,000, subject to closing adjustments for changes in the net assets sold from April 30, 2013, to the closing date. The Company’s bus business manufactured and sold transit and shuttle buses. The sale was completed as of October 20, 2013, and the Company received the $100,000 on October 21, 2013, and an additional $5,043 in February 2014, representing the increase in bus net assets since April 30, 2013.

The results of operations for the bus business have been reported as discontinued operations in the Condensed Consolidated Statements of Income and Comprehensive Income for all periods presented.

The following table summarizes the results of discontinued operations:

	Three Months Ended October  31,
	2015			2014
Operating loss of discontinued operations before income taxes	$	(378	)	$	(435	)
Income tax benefit		(139	)		(159	)
Loss from discontinued operations, net of taxes	$	(239	)	$	(276	)

The operating loss of discontinued operations before income taxes for the three months ended October 31, 2015 and October 31, 2014 reflects expenses incurred directly related to the former bus operations, including ongoing costs related to liabilities retained by the Company under the ASV SPA for bus product liability and worker’s compensation claims occurring prior to the closing date of the sale.

As a result of the sale of the bus business, and in accordance with the ASV SPA, the Company is no longer the primary obligor to the taxing authorities for bus operations in certain states. Under the terms of the sale, the Company has agreed to indemnify ASV for any claims made by the taxing authorities after the date of sale for these uncertain tax positions, but does not expect future losses under this guarantee to be material.

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Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands			3 Months Ended			12 Months Ended
	May. 01, 2015	Jan. 05, 2015	Oct. 31, 2015	Jul. 31, 2015	Oct. 31, 2014	Jul. 31, 2015
Business Acquisition [Line Items]
Payment to acquire business, net					$ 2,915
Postle Operating, LLC
Business Acquisition [Line Items]
Payment to acquire business, net	$ 144,048
Asset purchase agreement date						May 01, 2015
Amortizable intangible assets, weighted average useful life	12 years 3 months 18 days
Cash on hand at the acquisition date	$ 2,963
Cruiser RV, LLC and DRV, LLC
Business Acquisition [Line Items]
Payment to acquire business, net		$ 47,523		$ 47,523
Asset purchase agreement date		Dec. 31, 2014
Amortizable intangible assets, weighted average useful life		13 years 10 months 24 days
Payment to acquire business		$ 47,412
Purchase price adjustment				1,173
Cash on hand at the acquisition date		1,062		$ 1,062		$ 1,062
Initial payment to acquire business		$ 46,350
Customer Relationships
Business Acquisition [Line Items]
Intangible assets amortization period	12 years
Amortizable intangible assets, amortization method			Accelerated cash flow basis
Trademarks
Business Acquisition [Line Items]
Intangible assets amortization period	15 years	20 years	19 years
Amortizable intangible assets, amortization method			Straight-line basis
Backlog
Business Acquisition [Line Items]
Intangible assets amortization period	42 days	42 days
Amortizable intangible assets, amortization method			Straight-line basis
Dealer Networks
Business Acquisition [Line Items]
Intangible assets amortization period		12 years
Amortizable intangible assets, amortization method			Accelerated cash flow basis

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Schedule of Segment Reporting Information, by Segment Balance Sheet Item (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Segment Reporting Information [Line Items]
Total assets	$ 1,572,383	$ 1,503,248
Continuing Operations | Corporate
Segment Reporting Information [Line Items]
Total assets	268,984	272,058
Continuing Operations | Operating Segments | Recreational vehicles
Segment Reporting Information [Line Items]
Total assets	1,148,123	1,070,115
Continuing Operations | Operating Segments | Recreational vehicles | Towables
Segment Reporting Information [Line Items]
Total assets	951,863	907,175
Continuing Operations | Operating Segments | Recreational vehicles | Motorized
Segment Reporting Information [Line Items]
Total assets	196,260	162,940
Continuing Operations | Operating Segments | Other
Segment Reporting Information [Line Items]
Total assets	$ 155,276	$ 161,075

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Schedule of Changes in Product Warranty Liabilities for Continuing Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Product Warranty
Beginning balance	$ 108,206	$ 94,938
Provision	26,233	29,461
Payments	(26,592)	(26,759)
Ending balance	$ 107,847	$ 97,640

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Current assets:
Cash and cash equivalents	$ 179,317	$ 183,478
Accounts receivable, trade, less allowance for doubtful accounts of $682 and $1,283, respectively	291,037	244,052
Accounts receivable, other	26,271	25,642
Inventories, net	271,370	246,115
Notes receivable		8,367
Prepaid income taxes, expenses and other	14,593	8,323
Deferred income taxes, net	59,327	59,864
Total current assets	841,915	775,841
Property, plant and equipment, net	243,515	234,045
Other assets:
Goodwill	312,622	312,622
Amortizable intangible assets, net	162,990	169,018
Other	11,341	11,722
Total other assets	486,953	493,362
TOTAL ASSETS	1,572,383	1,503,248
Current liabilities:
Accounts payable	190,246	162,587
Accrued liabilities:
Compensation and related items	55,376	51,984
Product warranties	107,847	108,206
Income and other taxes	8,080	11,000
Promotions and rebates	21,376	19,817
Product, property and related liabilities	11,158	10,892
Other	16,332	13,849
Total current liabilities	410,415	378,335
Unrecognized tax benefits	12,627	11,945
Deferred income taxes, net	22,315	20,563
Other liabilities	26,652	27,218
Total long-term liabilities	$ 61,594	$ 59,726
Contingent liabilities and commitments
Stockholders' equity:
Preferred stock - authorized 1,000,000 shares; none outstanding
Common stock - par value of $.10 per share; authorized 250,000,000 shares; issued 62,439,795 and 62,306,037 shares, respectively	$ 6,244	$ 6,231
Additional paid-in capital	218,443	215,539
Retained earnings	1,207,186	1,172,432
Less treasury shares of 9,957,180 and 9,911,474, respectively, at cost	(331,499)	(329,015)
Total stockholders' equity	1,100,374	1,065,187
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,572,383	$ 1,503,248

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Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Property, Plant and Equipment [Line Items]
Total cost	$ 363,609	$ 348,868
Less accumulated depreciation	(120,094)	(114,823)
Property, plant and equipment, net	243,515	234,045
Land
Property, Plant and Equipment [Line Items]
Total cost	29,187	27,447
Building and Building Improvements
Property, Plant and Equipment [Line Items]
Total cost	224,001	214,462
Machinery and Equipment
Property, Plant and Equipment [Line Items]
Total cost	$ 110,421	$ 106,959

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Nature of Operations and Accounting Policies

3 Months Ended

Oct. 31, 2015

Nature of Operations and Accounting Policies

1. Nature of Operations and Accounting Policies

Nature of Operations

Thor Industries, Inc. was founded in 1980 and, through its subsidiaries (collectively, the “Company”), manufactures a wide range of recreational vehicles (“RVs”) in the United States at various manufacturing facilities located primarily in Indiana and Ohio. These products are sold to independent dealers primarily throughout the United States and Canada. Unless the context otherwise requires or indicates, all references to “Thor”, the “Company”, “we”, “our” and “us” refer to Thor Industries, Inc. and its subsidiaries.

The Company’s core business activities are comprised of two distinct operations, which include the design, manufacture and sale of towable recreational vehicles and motorized recreational vehicles. Accordingly, the Company has presented segment financial information for these two segments in Note 4 to the Condensed Consolidated Financial Statements. See Note 3, “Discontinued Operations,” in the Notes to the Condensed Consolidated Financial Statements for a description of the Company’s bus operations that were sold during the quarter ended October 31, 2013. The accompanying financial statements (including footnote disclosures unless otherwise indicated) reflect these bus operations as discontinued operations apart from the Company’s continuing operations.

The July 31, 2015 amounts are derived from the annual audited financial statements. The interim financial statements are unaudited. In the opinion of management, all adjustments (which consist of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented have been made. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2015. Due to seasonality within the recreational vehicle industry, annualizing the results of operations for the quarter ended October 31, 2015 would not necessarily be indicative of the results for a full fiscal year.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Key estimates include reserves for inventory, incurred but not reported medical claims, warranty claims, recall liabilities, workers’ compensation claims, vehicle repurchases, uncertain tax positions, product and non-product litigation and assumptions made for both intangible assets acquired and asset impairment assessments. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances. The Company believes that such estimates are made using consistent and appropriate methods. Actual results could differ from these estimates.

Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-08 (“ASU 2014-08”) “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. Under the new guidance, the disposal of a component or group of components of a business will be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The Company adopted ASU 2014-08 as of August 1, 2015. The impact to the Company will depend on future disposals.

In May 2014, the FASB issued Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606),” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This standard will supersede most current revenue recognition guidance. Under the new standard, entities are required to identify the contract with a customer, identify the separate performance obligations in the contract, determine the transaction price, allocate the transaction price to the separate performance obligations in the contract and recognize the appropriate amount of revenue when (or as) the entity satisfies each performance obligation. The standard is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2017. The standard is effective for the Company in its fiscal year 2019 beginning on August 1, 2018. Entities have the option of using either retrospective transition or a modified approach in applying the new standard. The Company is currently evaluating the approach it will use to apply the new standard and the impact that the adoption of the new standard will have on the Company’s consolidated financial statements.

In July 2015, the FASB issued Accounting Standards Update No. 2015-11 (“ASU 2015-11”) “Inventory (Topic 330): Simplifying the Measurement of Inventory.” ASU 2015-11 requires inventory measured using any method other than last-in, first-out (“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, and for interim periods within those years, beginning after December 15, 2016. The standard is effective for the Company in its fiscal year 2018 beginning on August 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

In September 2015, the FASB issued Accounting Standards Update No. 2015-16 (“ASU 2015-16”) “Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments,” to simplify the accounting for measurement-period adjustments in a business combination. Under the new standard, an acquirer must recognize adjustments to provisional amounts in a business combination in the reporting period in which the adjustment amounts are determined, rather than retrospectively adjusting the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill as under current guidance. ASU 2015-16 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2015. This standard is effective for the Company in its fiscal year 2017 beginning on August 1, 2016. This new standard will be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The Company is currently evaluating the impact of this ASU on its consolidated financial statements, which will be dependent on future acquisitions.

In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (“ASU 2015-17”) “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” to simplify the presentation of deferred income taxes. Under the new standard, both deferred tax liabilities and assets are required to be classified as noncurrent in a classified balance sheet. ASU 2015-17 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2016. This standard is effective for the Company in its fiscal year 2018 beginning on August 1, 2017. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

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Unaudited Pro Forma Information (Detail) $ / shares in Units, $ in Thousands	3 Months Ended
	Oct. 31, 2014 USD ($) $ / shares
Business Acquisition, Pro Forma Information [Line Items]
Net sales	$ 1,001,227
Net income	$ 43,774
Basic earnings per common share | $ / shares	$ 0.82
Diluted earnings per common share | $ / shares	$ 0.82

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Discontinued Operations (Tables)

3 Months Ended

Oct. 31, 2015

Operating Results of Discontinued Operations

The following table summarizes the results of discontinued operations:

	Three Months Ended October  31,
	2015			2014
Operating loss of discontinued operations before income taxes	$	(378	)	$	(435	)
Income tax benefit		(139	)		(159	)
Loss from discontinued operations, net of taxes	$	(239	)	$	(276	)

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Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands		1 Months Ended
	Oct. 21, 2013	Feb. 28, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of bus business	$ 100,000
Discontinued operation, amounts collected from ASV		$ 5,043

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Earnings Per Common Share (Tables)

3 Months Ended

Oct. 31, 2015

Schedule of Earnings Per Common Share

	Three Months Ended October  31,
	2015		2014
Weighted average common shares outstanding for basic earnings per share		52,409,945		53,336,592
Stock options, unvested restricted stock and restricted stock units		135,615		96,855
Weighted average common shares outstanding for diluted earnings per share		52,545,560		53,433,447

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Acquisitions

3 Months Ended

Oct. 31, 2015

Acquisitions

2. Acquisitions

Postle

On May 1, 2015, the Company closed on a Membership Interest Purchase Agreement with Postle Aluminum Company, LLC for the acquisition of all the outstanding membership units of Postle Operating, LLC (“Postle”), a manufacturer of aluminum extrusion and specialized component products sold to RV and other manufacturers, for total cash consideration of $144,048, net of cash acquired. The net cash consideration of $144,048 was funded entirely from the Company’s cash on hand, based on a final determination of the actual net assets as of the May 1, 2015 closing date and paid during the fourth quarter of fiscal 2015. Postle operates as an independent operation in the same manner as the Company’s other subsidiaries. The operations of Postle are reported in Other, which is a non-reportable segment.

The following table summarizes the fair values assigned to the Postle net assets acquired, which are based on internal and independent external valuations:

Cash	$	2,963
Other current assets		54,780
Property, plant and equipment		32,251
Customer relationships		38,800
Trademarks		6,000
Backlog		300
Goodwill		42,871
Current liabilities		(23,729	)
Capital lease obligations		(7,225	)
Total fair value of net assets acquired		147,011
Less cash acquired		(2,963	)
Total cash consideration for acquisition, less cash acquired	$	144,048

On the acquisition date, amortizable intangible assets had a weighted average useful life of 12.3 years. The customer relationships were valued based on the Discounted Cash Flow Method and will be amortized on an accelerated basis over 12 years. The trademarks were valued on the Relief from Royalty Method and will be amortized on a straight-line basis over 15 years. Backlog was valued based on the Discounted Cash Flow Method and was amortized on a straight-line basis over 6 weeks. Goodwill is deductible for tax purposes.

Cruiser RV, LLC and DRV, LLC

On January 5, 2015, the Company closed on a Stock Purchase Agreement (“CRV/DRV SPA”) for the acquisition of all the outstanding membership units of towable recreational vehicle manufacturer Cruiser RV, LLC (“CRV”) and luxury fifth wheel towable recreational vehicle manufacturer DRV, LLC (“DRV”) through its Heartland Recreational Vehicles, LLC subsidiary (“Heartland”). The Heartland operations are reported within the towable recreational vehicle reportable segment. In accordance with the CRV/DRV SPA, the closing was deemed effective as of January 1, 2015. As contemplated in the CRV/DRV SPA, the Company also acquired, in a series of integrated transactions, certain real estate used in the ongoing operations of CRV and DRV. The initial cash paid for this acquisition was $47,412, subject to adjustment, and was funded entirely from the Company’s cash on hand. This payment of $47,412, less the $1,062 of cash on hand at the acquisition date, resulted in initial net cash consideration of $46,350. Adjustments to increase the net cash consideration by $1,173 were identified, based on the preliminary determination of the actual net assets as of the close of business on December 31, 2014 and the finalization of certain tax matters, and paid during the fourth quarter of fiscal 2015. The $1,173 included reimbursing the seller for $1,062 of cash on hand at the acquisition date and resulted in total net cash consideration of $47,523. The Company purchased CRV and DRV to expand its towable recreational vehicle market share and to supplement and expand its existing lightweight travel trailer and luxury fifth wheel product offerings and dealer base.

The following table summarizes the fair values assigned to the CRV and DRV net assets acquired, which are based on internal and independent external valuations. Additional adjustments to certain accounts, such as acquired medical benefit liabilities, are possible but not expected to be material:

Cash	$	1,062
Other current assets		22,175
Property, plant and equipment		4,533
Dealer network		14,300
Trademarks		5,400
Backlog		450
Goodwill		13,172
Current liabilities		(12,507	)
Total fair value of net assets acquired		48,585
Less cash acquired		(1,062	)
Total cash consideration for acquisition, less cash acquired	$	47,523

On the acquisition date, amortizable intangible assets had a weighted average useful life of 13.9 years. The dealer network was valued based on the Discounted Cash Flow Method and will be amortized on an accelerated basis over 12 years. The trademarks were valued on the Relief from Royalty Method and will be amortized on a straight-line basis over 20 years. Backlog was valued based on the Discounted Cash Flow Method and was amortized on a straight-line basis over 6 weeks. Goodwill is deductible for tax purposes.

The following unaudited pro forma information represents the Company’s results of operations as if the fiscal 2015 acquisitions of both Postle and CRV/DRV had occurred at the beginning of fiscal 2014. These performance results may not be indicative of the actual results that would have occurred under the ownership and management of the Company.

	Three Months Ended October 31,  2014
Net sales	$	1,001,227
Net income	$	43,774
Basic earnings per common share	$	0.82
Diluted earnings per common share	$	0.82

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Allowance for doubtful accounts	$ 682	$ 1,283
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	62,439,795	62,306,037
Treasury, shares	9,957,180	9,911,474

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Provision for Income Taxes

3 Months Ended

Oct. 31, 2015

Provision for Income Taxes

12. Provision for Income Taxes

The overall effective income tax rate for the three months ended October 31, 2015 was 34.7% compared with 30.9% for the three months ended October 31, 2014. The primary reason for the increase in the effective income tax rate was the favorable settlement of uncertain tax benefits that occurred during the three months ended October 31, 2014 while no such settlements occurred in the three months ended October 31, 2015.

It is the Company’s policy to recognize interest and penalties accrued relative to unrecognized tax benefits in income tax expense. For the three months ended October 31, 2015, there were no material changes to the balance of unrecognized tax benefits and the Company accrued $141 in interest and penalties related to the remaining uncertain tax positions recorded at July 31, 2015.

The Company anticipates a decrease of approximately $3,525 in unrecognized tax benefits, and $935 in accrued interest and penalties related to unrecognized tax benefits recorded as of October 31, 2015, within the next 12 months from expected settlements or payments of uncertain tax positions and lapses of the applicable statutes of limitations. Actual results may differ from these estimates.

Generally, fiscal years 2012, 2013 and 2014 remain open for federal income tax purposes and fiscal years 2011, 2012, 2013 and 2014 remain open for state and Canadian income tax purposes. The Company and its subsidiaries file a consolidated U.S. federal income tax return and multiple state income tax returns. The Company is currently disputing the audit results by the state of Indiana for tax years ended July 31, 2008, 2009 and 2010. The Company believes it has adequately reserved for its exposure to additional payments for uncertain tax positions related to its Indiana income tax returns in its liability for unrecognized tax benefits.

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Document and Entity Information	3 Months Ended
	Oct. 31, 2015 shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Oct. 31, 2015
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Trading Symbol	THO
Entity Registrant Name	THOR INDUSTRIES INC
Entity Central Index Key	0000730263
Current Fiscal Year End Date	--07-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	52,482,615

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Contingent Liabilities, Commitments and Legal Matters

3 Months Ended

Oct. 31, 2015

Contingent Liabilities, Commitments and Legal Matters

13. Contingent Liabilities, Commitments and Legal Matters

The Company is contingently liable under terms of repurchase agreements with financial institutions providing inventory financing for certain dealers of certain of its products. These arrangements, which are customary in the industry, provide for the repurchase of products sold to dealers in the event of default by the dealer on the agreement to pay the financial institution. The repurchase price is generally determined by the original sales price of the product and pre-defined curtailment arrangements. The Company typically resells the repurchased product at a discount from its repurchase price. The risk of loss from these agreements is spread over numerous dealers. In addition to the guarantee under these repurchase agreements, we may also be required to repurchase inventory relative to dealer terminations in certain states in accordance with state laws or regulatory requirements. The repurchase activity related to dealer terminations in certain states has been insignificant in relation to our repurchase obligation with financial institutions.

The Company’s total commercial commitments under standby repurchase obligations on dealer inventory financing as of October 31, 2015 and July 31, 2015 were $1,313,093 and $1,363,576, respectively. The commitment term is primarily up to eighteen months.

The Company accounts for the guarantee under repurchase agreements of dealers’ financing by deferring a portion of the related product sale that represents the estimated fair value of the guarantee at inception. The estimated fair value takes into account an estimate of the losses that may be incurred upon resale of any repurchases. This estimate is based on recent historical experience supplemented by the Company’s assessment of current economic and other conditions affecting its dealers. This deferred amount is included in the repurchase and guarantee reserve balances of $4,010 and $4,163 as of October 31, 2015 and July 31, 2015, respectively, which are included in other current liabilities on the Condensed Consolidated Balance Sheets.

The following table reflects losses incurred related to repurchase agreements that were settled in the periods noted. The Company believes that any future losses under these agreements will not have a significant effect on the Company’s consolidated financial position, results of operations or cash flows.

	Three Months Ended October  31,
	2015		2014
Cost of units repurchased	$	819	$	1,645
Realization of units resold		687		1,440
Losses due to repurchase	$	132	$	205

The Company is also involved in certain litigation arising out of its operations in the normal course of its business, most of which is based upon state “lemon laws”, warranty claims and vehicle accidents (for which the Company carries insurance above a specified self-insured retention or deductible amount). The outcomes of legal proceedings and claims brought against the Company are subject to significant uncertainty. There is significant judgment required in assessing both the probability of an adverse outcome and the determination as to whether an exposure can be reasonably estimated. In management’s opinion, the ultimate disposition of any current legal proceedings or claims against the Company will not have a material effect on the Company’s financial condition, operating results or cash flows. Litigation is, however, inherently uncertain and an adverse outcome from such litigation could have a material effect on the operating results of a particular reporting period.

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Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Net sales	$ 1,030,351	$ 921,992
Cost of products sold	878,135	804,327
Gross profit	152,216	117,665
Selling, general and administrative expenses	68,454	57,989
Amortization of intangible assets	6,028	3,689
Interest income	138	367
Interest expense	174
Other income (expense), net	(7)	352
Income from continuing operations before income taxes	77,691	56,706
Income taxes	26,955	17,505
Net income from continuing operations	50,736	39,201
Loss from discontinued operations, net of income taxes	(239)	(276)
Net Income and comprehensive income	$ 50,497	$ 38,925
Weighted average common shares outstanding:
Basic	52,409,945	53,336,592
Diluted	52,545,560	53,433,447
Earnings per common share from continuing operations:
Basic	$ 0.97	$ 0.73
Diluted	0.97	0.73
Loss per common share from discontinued operations:
Basic	(0.01)	0.00
Diluted	(0.01)	0.00
Earnings per common share:
Basic	0.96	0.73
Diluted	0.96	0.73
Regular dividends declared and paid per common share	$ 0.30	$ 0.27

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Property, Plant and Equipment

3 Months Ended

Oct. 31, 2015

Property, Plant and Equipment

7. Property, Plant and Equipment

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

	October 31, 2015			July 31, 2015
Land	$	29,187		$	27,447
Buildings and improvements		224,001			214,462
Machinery and equipment		110,421			106,959
Total cost		363,609			348,868
Less accumulated depreciation		(120,094	)		(114,823	)
Property, plant and equipment, net	$	243,515		$	234,045

Property, plant and equipment at October 31, 2015 includes buildings and improvements under capital leases of $6,527 and related amortization included in accumulated depreciation of $272.

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Inventories

3 Months Ended

Oct. 31, 2015

Inventories

6. Inventories

Major classifications of inventories are as follows:

	October 31, 2015			July 31, 2015
Finished goods – RV	$	48,111		$	35,693
Finished goods – other		15,803			18,045
Work in process		55,368			51,556
Raw materials		132,480			133,482
Chassis		50,008			37,739
Total		301,770			276,515
Excess of FIFO costs over LIFO costs		(30,400	)		(30,400	)
Total inventories, net	$	271,370		$	246,115

Of the $301,770 and $276,515 of inventories at October 31, 2015 and July 31, 2015, all but $79,592 and $72,498, respectively, at certain subsidiaries were valued on a last-in, first-out basis. The $79,592 and $72,498 of inventories were valued on a first-in, first-out method.

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Business Segments (Tables)

3 Months Ended

Oct. 31, 2015

Schedule of Segment Reporting Information by Segment

	Three Months Ended October  31,
	2015			2014
Net sales:
Recreational vehicles:
Towables	$	744,679		$	699,778
Motorized		251,099			222,214
Total recreational vehicles		995,778			921,992
Other		50,382			—
Intercompany eliminations		(15,809	)		—
Total	$	1,030,351		$	921,992
	Three Months Ended October  31,
	2015			2014
Income (loss) from continuing operations before income taxes:
Recreational vehicles:
Towables	$	63,224		$	49,299
Motorized		21,653			15,101
Total recreational vehicles		84,877			64,400
Other, net		2,656			—
Corporate		(9,842	)		(7,694	)
Total	$	77,691		$	56,706
	October 31, 2015			July 31, 2015
Total assets:
Recreational vehicles:
Towables	$	951,863		$	907,175
Motorized		196,260			162,940
Total recreational vehicles		1,148,123			1,070,115
Other, net		155,276			161,075
Corporate		268,984			272,058
Total	$	1,572,383		$	1,503,248

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Stockholders' Equity

3 Months Ended

Oct. 31, 2015

Stockholders' Equity

14. Stockholders’ Equity

Stock-Based Compensation

During fiscal 2013, the Compensation and Development Committee of the Board (“the Committee”) approved a program to award restricted stock units to certain employees at the operating subsidiary and corporate levels. Under this program, the Committee approved awards that were granted in fiscal 2015 related to fiscal year 2014 performance and approved additional awards that were granted in fiscal 2016 related to fiscal 2015 performance. The employee restricted stock units vest, and shares of common stock will be issued, in equal installments on the first, second and third anniversaries of the date of grant. In fiscal 2016 and fiscal 2015, the Nominating and Governance Committee of the Board awarded restricted stock units to Board members that will vest, and shares of common stock will be issued, on the first anniversary of the date of the grant.

Total expense recognized in the three months ended October 31, 2015 and October 31, 2014 for these restricted stock unit awards and other stock-based compensation was $2,279 and $1,565, respectively.

For the restricted stock units that vested during the three month period ended October 31, 2015, a certain portion of the vested shares awarded were withheld as treasury shares to cover the recipients’ estimated withholding taxes. The total related taxes withheld of $2,484, to be paid by the Company on behalf of the recipients of these awards, is included in accrued compensation and related items as of October 31, 2015 in the Condensed Consolidated Balance Sheet and is expected to be paid in the second quarter of fiscal 2016.

Retained Earnings

The components of the change in retained earnings are as follows:

Balance as of July 31, 2015	$	1,172,432
Net income		50,497
Dividends declared and paid		(15,743	)
Balance as of October 31, 2015	$	1,207,186

The dividends declared and paid total of $15,743 represents the regular quarterly dividend of $0.30 per share for the first quarter of fiscal 2016.

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Investments and Fair Value Measurements

3 Months Ended

Oct. 31, 2015

Investments and Fair Value Measurements

10. Investments and Fair Value Measurements

The Company carries at fair value its investments in securities (primarily in mutual funds) held for the benefit of certain employees of the Company as part of a deferred compensation plan. These investments are measured with Level 1 inputs as prescribed by ASC 820, which include quoted prices in active markets for identical assets or liabilities and are the most observable inputs. Deferred compensation plan asset balances of $10,757 and $10,803 were recorded as of October 31, 2015 and July 31, 2015, respectively, as components of other long-term assets in the Condensed Consolidated Balance Sheets. An equal and offsetting liability is also recorded in regards to the deferred compensation plan as a component of other long-term liabilities in the Condensed Consolidated Balance Sheets. Changes in the fair value of the plan assets and the related liability are reflected in other income (expense), net and selling, general and administrative expenses, respectively, in the Condensed Consolidated Statements of Income and Comprehensive Income.

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Intangible Assets and Goodwill

3 Months Ended

Oct. 31, 2015

Intangible Assets and Goodwill

8. Intangible Assets and Goodwill

The components of amortizable intangible assets are as follows:

	Weighted Average Remaining Life in  Years at October 31, 2015	October 31, 2015				July 31, 2015
		Cost		Accumulated Amortization		Cost		Accumulated Amortization
Dealer networks/customer relationships	10	$	143,860	$	41,780	$	143,860	$	37,194
Trademarks	19		55,282		8,244		55,282		7,608
Design technology and other intangibles	9		22,400		8,843		22,400		8,168
Non-compete agreements	4		450		135		4,710		4,264
Total amortizable intangible assets		$	221,992	$	59,002	$	226,252	$	57,234

The dealer networks and customer relationships are being amortized on an accelerated basis. Trademarks, design technology and other intangibles and non-compete agreements are amortized on a straight-line basis.

Estimated annual amortization expense is as follows:

For the fiscal year ending July 31, 2016	$	23,440
For the fiscal year ending July 31, 2017		20,671
For the fiscal year ending July 31, 2018		18,986
For the fiscal year ending July 31, 2019		16,975
For the fiscal year ending July 31, 2020		15,256
For the fiscal year ending July 31, 2021 and thereafter		73,690
	$	169,018

Of the recorded goodwill of $312,622 at both October 31, 2015 and July 31, 2015, $269,751 resides in the towable recreational vehicle segment and $42,871 resides in the other non-reportable segment.

Goodwill is not subject to amortization, but instead is reviewed for impairment by applying a fair-value based test to the Company’s reporting units on an annual basis as of April 30, or more frequently if events or circumstances indicate a potential impairment. The Company’s reporting units are the same as its operating segments, which are identified in Note 4 to the Condensed Consolidated Financial Statements. Fair values are determined by a discounted cash flow model. These estimates are subject to significant management judgment, including the determination of many factors such as sales growth rates, gross margin patterns, cost growth rates, terminal value assumptions and discount rates, and therefore largely represent Level 3 inputs as defined by ASC 820. Changes in these estimates can have a significant impact on the determination of cash flows and fair value and could potentially result in future material impairments.

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Concentration of Risk

3 Months Ended

Oct. 31, 2015

Concentration of Risk

9. Concentration of Risk

One dealer, FreedomRoads, LLC (“FreedomRoads”), accounted for 18% and 14% of the Company’s continuing consolidated net sales for the three months ended October 31, 2015 and the three months ended October 31, 2014, respectively. This dealer also accounted for 15% of the Company’s consolidated trade accounts receivable at October 31, 2015 and 22% at July 31, 2015. The loss of this dealer could have a significant effect on the Company’s business.

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Product Warranties

3 Months Ended

Oct. 31, 2015

Product Warranties

11. Product Warranties

The Company generally provides retail customers of its products with a one-year warranty covering defects in material or workmanship, with longer warranties on certain structural components. The Company records a liability based on its best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. Factors used in estimating the warranty liability include a history of units sold, existing dealer inventory, average cost incurred and a profile of the distribution of warranty expenditures over the warranty period. Management believes that the warranty reserves are adequate. However, actual claims incurred could differ from estimates, requiring adjustments to the reserves. Warranty reserves are reviewed and adjusted as necessary on at least a quarterly basis.

Changes in our product warranty reserves are as follows:

	Three Months Ended October  31,
	2015			2014
Beginning balance	$	108,206		$	94,938
Provision		26,233			29,461
Payments		(26,592	)		(26,759	)
Ending balance	$	107,847		$	97,640

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Summary of Fair Value Assigned to Net Assets Acquired (Detail) - USD ($) $ in Thousands		3 Months Ended
	Jan. 05, 2015	Jul. 31, 2015	Oct. 31, 2014	Oct. 31, 2015
Business Acquisition [Line Items]
Goodwill		$ 312,622		$ 312,622
Total cash consideration for acquisition, less cash acquired			$ 2,915
Cruiser RV, LLC and DRV, LLC
Business Acquisition [Line Items]
Cash	$ 1,062	1,062
Other current assets	22,175
Property, plant and equipment	4,533
Goodwill	13,172
Current liabilities	(12,507)
Total fair value of net assets acquired	48,585
Less cash acquired	(1,062)
Total cash consideration for acquisition, less cash acquired	47,523	$ 47,523
Cruiser RV, LLC and DRV, LLC | Dealer Networks
Business Acquisition [Line Items]
Business acquisition allocated to amortizing intangible asset	14,300
Cruiser RV, LLC and DRV, LLC | Trademarks
Business Acquisition [Line Items]
Business acquisition allocated to amortizing intangible asset	5,400
Cruiser RV, LLC and DRV, LLC | Backlog
Business Acquisition [Line Items]
Business acquisition allocated to amortizing intangible asset	$ 450

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Investments and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investments under employees deferred compensation plan	$ 10,757	$ 10,803

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Acquisitions (Tables)

3 Months Ended

Oct. 31, 2015

Unaudited Pro Forma Information

The following unaudited pro forma information represents the Company’s results of operations as if the fiscal 2015 acquisitions of both Postle and CRV/DRV had occurred at the beginning of fiscal 2014. These performance results may not be indicative of the actual results that would have occurred under the ownership and management of the Company.

	Three Months Ended October 31,  2014
Net sales	$	1,001,227
Net income	$	43,774
Basic earnings per common share	$	0.82
Diluted earnings per common share	$	0.82

Postle Operating, LLC

Summary of Fair Value Assigned to Assets Acquired

The following table summarizes the fair values assigned to the Postle net assets acquired, which are based on internal and independent external valuations:

Cash	$	2,963
Other current assets		54,780
Property, plant and equipment		32,251
Customer relationships		38,800
Trademarks		6,000
Backlog		300
Goodwill		42,871
Current liabilities		(23,729	)
Capital lease obligations		(7,225	)
Total fair value of net assets acquired		147,011
Less cash acquired		(2,963	)
Total cash consideration for acquisition, less cash acquired	$	144,048

Cruiser RV, LLC and DRV, LLC

Summary of Fair Value Assigned to Assets Acquired

The following table summarizes the fair values assigned to the CRV and DRV net assets acquired, which are based on internal and independent external valuations. Additional adjustments to certain accounts, such as acquired medical benefit liabilities, are possible but not expected to be material:

Cash	$	1,062
Other current assets		22,175
Property, plant and equipment		4,533
Dealer network		14,300
Trademarks		5,400
Backlog		450
Goodwill		13,172
Current liabilities		(12,507	)
Total fair value of net assets acquired		48,585
Less cash acquired		(1,062	)
Total cash consideration for acquisition, less cash acquired	$	47,523

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Property, Plant and Equipment (Tables)

3 Months Ended

Oct. 31, 2015

Property, Plant and Equipment

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

	October 31, 2015			July 31, 2015
Land	$	29,187		$	27,447
Buildings and improvements		224,001			214,462
Machinery and equipment		110,421			106,959
Total cost		363,609			348,868
Less accumulated depreciation		(120,094	)		(114,823	)
Property, plant and equipment, net	$	243,515		$	234,045

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Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) $ in Thousands	Oct. 31, 2015	Jul. 31, 2015
Intangible Assets And Goodwill [Line Items]
Goodwill	$ 312,622	$ 312,622
Towables
Intangible Assets And Goodwill [Line Items]
Goodwill	269,751	269,751
Other
Intangible Assets And Goodwill [Line Items]
Goodwill	$ 42,871	$ 42,871

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Earnings Per Common Share (Detail) - shares	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Earnings Per Share Disclosure [Line Items]
Weighted average common shares outstanding for basic earnings per share	52,409,945	53,336,592
Stock options, unvested restricted stock and restricted stock units	135,615	96,855
Weighted average common shares outstanding for diluted earnings per share	52,545,560	53,433,447

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Cash flows from operating activities:
Net income	$ 50,497	$ 38,925
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	5,405	3,324
Amortization of intangible assets	6,028	3,689
Deferred income tax provision	2,289	1,177
Gain on disposition of property, plant and equipment	(1)	(13)
Stock-based compensation expense	2,279	1,565
Excess tax benefits from stock-based awards	(291)	(114)
Changes in assets and liabilities (excluding acquisitions):
Accounts receivable	(47,614)	35,870
Inventories	(25,255)	(5,497)
Prepaid income taxes, expenses and other	(5,889)	(4,267)
Accounts payable	28,667	(13,743)
Accrued liabilities	2,579	(7,479)
Other liabilities	198	(3,412)
Net cash provided by operating activities	18,892	50,025
Cash flows from investing activities:
Purchases of property, plant and equipment	(15,922)	(8,541)
Proceeds from dispositions of property, plant and equipment	40	13
Proceeds from notes receivable	8,367
Acquisitions, net of cash acquired		(2,915)
Other		7
Net cash used in investing activities	(7,515)	(11,436)
Cash flows from financing activities:
Regular cash dividends paid	(15,743)	(14,412)
Principal payments on capital lease obligations	(86)
Excess tax benefits from stock-based awards	291	114
Net cash used in financing activities	(15,538)	(14,298)
Net increase (decrease) in cash and cash equivalents	(4,161)	24,291
Cash and cash equivalents, beginning of period	183,478	289,336
Cash and cash equivalents, end of period	179,317	313,627
Supplemental cash flow information:
Income taxes paid	35,326	36,246
Interest paid	174
Non-cash transactions:
Capital expenditures in accounts payable	$ 532	$ 353

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Earnings Per Common Share

3 Months Ended

Oct. 31, 2015

Earnings Per Common Share

5. Earnings Per Common Share

	Three Months Ended October  31,
	2015		2014
Weighted average common shares outstanding for basic earnings per share		52,409,945		53,336,592
Stock options, unvested restricted stock and restricted stock units		135,615		96,855
Weighted average common shares outstanding for diluted earnings per share		52,545,560		53,433,447

At October 31, 2015 and 2014, the Company had 48,119 and 39,523, respectively, of stock options, unvested restricted stock and restricted stock units outstanding which were excluded from this calculation as their effect would be antidilutive.

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Schedule of Change in Retained Earnings (Detail) - USD ($) $ in Thousands	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Retained Earnings Adjustments [Line Items]
Beginning Balance	$ 1,172,432
Net income	50,497	$ 38,925
Dividends declared and paid	(15,743)
Ending Balance	$ 1,207,186

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Intangible Assets and Goodwill (Tables)

3 Months Ended

Oct. 31, 2015

Components of Amortizable Intangible Assets

The components of amortizable intangible assets are as follows:

	Weighted Average Remaining Life in  Years at October 31, 2015	October 31, 2015				July 31, 2015
		Cost		Accumulated Amortization		Cost		Accumulated Amortization
Dealer networks/customer relationships	10	$	143,860	$	41,780	$	143,860	$	37,194
Trademarks	19		55,282		8,244		55,282		7,608
Design technology and other intangibles	9		22,400		8,843		22,400		8,168
Non-compete agreements	4		450		135		4,710		4,264
Total amortizable intangible assets		$	221,992	$	59,002	$	226,252	$	57,234

Estimated Amortization Expense

Estimated annual amortization expense is as follows:

For the fiscal year ending July 31, 2016	$	23,440
For the fiscal year ending July 31, 2017		20,671
For the fiscal year ending July 31, 2018		18,986
For the fiscal year ending July 31, 2019		16,975
For the fiscal year ending July 31, 2020		15,256
For the fiscal year ending July 31, 2021 and thereafter		73,690
	$	169,018

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Business Segments - Additional Information (Detail)	3 Months Ended
	Oct. 31, 2015 Segment
Segment Reporting Information [Line Items]
Number of reportable segments	2
Postle Operating, LLC
Segment Reporting Information [Line Items]
Subsidiary acquisition date	May 01, 2015

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Nature of Operations and Accounting Policies (Policies)

3 Months Ended

Oct. 31, 2015

Nature of Operations

Nature of Operations

Thor Industries, Inc. was founded in 1980 and, through its subsidiaries (collectively, the “Company”), manufactures a wide range of recreational vehicles (“RVs”) in the United States at various manufacturing facilities located primarily in Indiana and Ohio. These products are sold to independent dealers primarily throughout the United States and Canada. Unless the context otherwise requires or indicates, all references to “Thor”, the “Company”, “we”, “our” and “us” refer to Thor Industries, Inc. and its subsidiaries.

The Company’s core business activities are comprised of two distinct operations, which include the design, manufacture and sale of towable recreational vehicles and motorized recreational vehicles. Accordingly, the Company has presented segment financial information for these two segments in Note 4 to the Condensed Consolidated Financial Statements. See Note 3, “Discontinued Operations,” in the Notes to the Condensed Consolidated Financial Statements for a description of the Company’s bus operations that were sold during the quarter ended October 31, 2013. The accompanying financial statements (including footnote disclosures unless otherwise indicated) reflect these bus operations as discontinued operations apart from the Company’s continuing operations.

The July 31, 2015 amounts are derived from the annual audited financial statements. The interim financial statements are unaudited. In the opinion of management, all adjustments (which consist of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented have been made. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2015. Due to seasonality within the recreational vehicle industry, annualizing the results of operations for the quarter ended October 31, 2015 would not necessarily be indicative of the results for a full fiscal year.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Key estimates include reserves for inventory, incurred but not reported medical claims, warranty claims, recall liabilities, workers’ compensation claims, vehicle repurchases, uncertain tax positions, product and non-product litigation and assumptions made for both intangible assets acquired and asset impairment assessments. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable under the circumstances. The Company believes that such estimates are made using consistent and appropriate methods. Actual results could differ from these estimates.

Accounting Pronouncements

Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-08 (“ASU 2014-08”) “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. Under the new guidance, the disposal of a component or group of components of a business will be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The Company adopted ASU 2014-08 as of August 1, 2015. The impact to the Company will depend on future disposals.

In May 2014, the FASB issued Accounting Standards Update No. 2014-09 “Revenue from Contracts with Customers (Topic 606),” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. This standard will supersede most current revenue recognition guidance. Under the new standard, entities are required to identify the contract with a customer, identify the separate performance obligations in the contract, determine the transaction price, allocate the transaction price to the separate performance obligations in the contract and recognize the appropriate amount of revenue when (or as) the entity satisfies each performance obligation. The standard is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2017. The standard is effective for the Company in its fiscal year 2019 beginning on August 1, 2018. Entities have the option of using either retrospective transition or a modified approach in applying the new standard. The Company is currently evaluating the approach it will use to apply the new standard and the impact that the adoption of the new standard will have on the Company’s consolidated financial statements.

In July 2015, the FASB issued Accounting Standards Update No. 2015-11 (“ASU 2015-11”) “Inventory (Topic 330): Simplifying the Measurement of Inventory.” ASU 2015-11 requires inventory measured using any method other than last-in, first-out (“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, and for interim periods within those years, beginning after December 15, 2016. The standard is effective for the Company in its fiscal year 2018 beginning on August 1, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

In September 2015, the FASB issued Accounting Standards Update No. 2015-16 (“ASU 2015-16”) “Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments,” to simplify the accounting for measurement-period adjustments in a business combination. Under the new standard, an acquirer must recognize adjustments to provisional amounts in a business combination in the reporting period in which the adjustment amounts are determined, rather than retrospectively adjusting the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill as under current guidance. ASU 2015-16 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2015. This standard is effective for the Company in its fiscal year 2017 beginning on August 1, 2016. This new standard will be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. The Company is currently evaluating the impact of this ASU on its consolidated financial statements, which will be dependent on future acquisitions.

In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (“ASU 2015-17”) “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” to simplify the presentation of deferred income taxes. Under the new standard, both deferred tax liabilities and assets are required to be classified as noncurrent in a classified balance sheet. ASU 2015-17 is effective for fiscal years, and the interim periods within those years, beginning after December 15, 2016. This standard is effective for the Company in its fiscal year 2018 beginning on August 1, 2017. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.