The Company is organized into three reportable segments based on management’s process for making operating decisions, allocating capital and measuring performance, and based on the similarity of products, customers served, common use of facilities, and economic characteristics. The Company’s segments are as follows:

Fire & Emergency: This segment includes KME, E-One, Inc., Ferrara, American Emergency Vehicles, Inc., Leader Emergency Vehicles, Inc., Horton Enterprises, Inc., REV Ambulance Orlando and REV Brazil. These business units manufacture and market commercial and custom fire and emergency vehicles primarily for fire departments, airports, other governmental units, contractors, hospitals and other care providers in the United States and other countries.

Commercial: This segment includes Collins Bus, Champion Bus, Inc., ENC, ElDorado National (Kansas), Inc., Revability, Capacity, Lay-Mor and REV Coach. Collins Bus manufactures, markets and distributes school buses, normally referred to as Type A school buses, as well as shuttle buses used for churches, transit authorities, hotels and resorts, retirement centers and other similar uses. Champion Bus, Inc., ENC, ElDorado National (Kansas), Inc. and Revability manufacture, market and distribute shuttle buses and mobility vans for transit, airport car rental and hotel/motel shuttles, tour and charter operations and other uses under several well-established brand names. Capacity manufactures, markets and distributes trucks used in terminal type operations, i.e., rail yards, warehouses, rail terminals and shipping terminals/ports. Lay-Mor manufactures, markets and distributes industrial sweepers for both the commercial and rental markets.

Recreation: This segment includes REV Recreation Group, Inc. (“RRG”), Goldshield Fiberglass, Inc. (“Goldshield”), Renegade, Midwest and Lance, and their respective manufacturing facilities, service and parts divisions. RRG primarily manufactures, markets and distributes Class A and Class C mobile RVs in both gas and diesel models. Renegade primarily manufacturers Class C and “Super C” RVs and heavy-duty special application trailers. Goldshield manufactures, markets and distributes fiberglass reinforced molded parts to a diverse cross section of original equipment manufacturers and other commercial and industrial customers, including various components for RRG, which is one of Goldshield’s primary customers. Midwest manufactures Class B RVs and luxury vans. Lance designs, engineers and manufactures truck campers, towable campers and toy haulers.

For purposes of measuring financial performance of its business segments, the Company does not allocate to individual business segments costs or items that are of a corporate nature. The caption “Corporate and Other” includes corporate office expenses, results of insignificant operations, intersegment eliminations and income and expense not allocated to reportable segments.

Total assets of the business segments exclude general corporate assets, which principally consist of cash and cash equivalents, certain property, plant and equipment and certain other assets pertaining to corporate and other centralized activities.

Intersegment sales generally include amounts invoiced by a segment for work performed for another segment. Amounts are based on actual work performed and agreed-upon pricing which is intended to be reflective of the contribution made by the supplying business segment. All intersegment transactions have been eliminated in consolidation.

	Fiscal Year 2018
	Fire & Emergency		Commercial		Recreation		Corporate, Other & Elims			Consolidated
Net Sales	$	956.6	$	638.5	$	811.9	$	(25.7	)	$	2,381.3
Depreciation and amortization	$	15.3	$	10.0	$	13.4	$	7.3		$	46.0
Capital expenditures	$	7.9	$	4.2	$	9.7	$	18.8		$	40.6
Total assets	$	612.4	$	293.2	$	383.2	$	119.3		$	1,408.1
Adjusted EBITDA	$	86.0	$	38.1	$	60.4	$	(36.5	)

	Fiscal Year 2017
	Fire & Emergency		Commercial		Recreation		Corporate and Other			Consolidated
Sales:
Net Sales—External Customers	$	984.0	$	620.1	$	659.8	$	3.9		$	2,267.8
Net Sales—Intersegment	$	—	$	9.4	$	12.9	$	(22.3	)	$	—
Depreciation and amortization	$	14.6	$	8.5	$	11.0	$	3.7		$	37.8
Capital expenditures	$	9.5	$	6.4	$	5.5	$	32.6		$	54.0
Total assets	$	606.0	$	281.6	$	263.9	$	102.9		$	1,254.4
Adjusted EBITDA	$	109.5	$	50.5	$	36.2	$	(33.7	)

	Fiscal Year 2016
	Fire & Emergency		Commercial		Recreation		Corporate and Other			Consolidated
Sales:
Net Sales—External Customers	$	768.1	$	679.0	$	478.1	$	0.8		$	1,926.0
Net Sales—Intersegment	$	—	$	—	$	10.6	$	(10.6	)	$	—
Depreciation and amortization	$	9.7	$	8.1	$	5.0	$	1.8		$	24.6
Capital expenditures	$	9.6	$	5.9	$	3.6	$	18.4		$	37.5
Total assets	$	411.0	$	269.0	$	172.0	$	37.0		$	889.0
Adjusted EBITDA	$	85.2	$	53.4	$	11.0	$	(26.8	)

The following tables present net sales by geographic region based on product shipment destination for fiscal years 2018, 2017 and 2016:

	Fiscal Year 2018
	U.S. and Canada			Europe/ Africa		Rest of World		Total
Fire & Emergency	$	938.2		$	3.3	$	15.1	$	956.6
Commercial		632.3			—		6.2		638.5
Recreation		808.2			—		3.7		811.9
Corporate, Other & Elims		(26.2	)		0.1		0.4		(25.7	)
Total Net Sales	$	2,352.5		$	3.4	$	25.4	$	2,381.3

	Fiscal Year 2017
	U.S. and Canada			Europe/ Africa		Rest of World		Total
Fire & Emergency	$	969.4		$	0.9	$	13.7	$	984.0
Commercial		610.8			—		9.3		620.1
Recreation		656.5			—		3.3		659.8
Corporate & Other		3.9			—		—		3.9
Total Net Sales—External Customers	$	2,240.6		$	0.9	$	26.3	$	2,267.8
Intersegment Sales	$	22.3			—		—		—
Corporate Eliminations		(22.3	)		—		—		—

	Fiscal Year 2016
	U.S. and Canada			Europe/ Africa		Rest of World		Total
Fire & Emergency	$	758.5		$	0.7	$	8.9	$	768.1
Commercial		672.6			0.5		5.9		679.0
Recreation		475.0			—		3.1		478.1
Corporate and other		0.8			—		—		0.8
Total Net Sales—External Customers	$	1,906.9		$	1.2	$	17.9	$	1,926.0
Intersegment Sales	$	10.6			—		—		—
Corporate Eliminations		(10.6	)		—		—		—

In considering the financial performance of the business, the chief operating decision maker analyzes the primary financial performance measure of Adjusted EBITDA. Adjusted EBITDA is defined as net income for the relevant period before depreciation and amortization, interest expense and provision (benefit) for income taxes, as adjusted for transaction expenses, sponsor expenses, restructuring costs, loss on early extinguishment of debt, certain legal matters, non-cash purchase accounting expenses, stock-based compensation expense, initial public company costs, impairment charges, losses attributable to assets held for sale, and deferred purchase price payment which the Company believes are not indicative of the Company’s ongoing operating performance. Adjusted EBITDA is not a measure defined by U.S. GAAP but is computed using amounts that are determined in accordance with U.S. GAAP. A reconciliation of this performance measure to income before provision for income taxes is included below.

The Company believes that Adjusted EBITDA is useful to investors and used by management for measuring profitability because the measure excludes the impact of certain items which management believes has less bearing on the Company’s core operating performance. The Company believes that utilizing Adjusted EBITDA allows for a more meaningful comparison of operating fundamentals between companies within its industries by eliminating the impact of capital structure and taxation differences between the companies.

The Company also adjusts for exceptional items which are determined to be those that in management’s judgment need to be disclosed by virtue of their size, nature or incidence, which include non-cash items and items settled in cash. In determining whether an event or transaction is exceptional, management considers quantitative as well as qualitative factors such as the frequency or predictability of occurrence. This is consistent with the way that financial performance is measured by management and reported to the Company’s Board of Directors, assists in providing a meaningful analysis of the Company’s operating performance and used as a measurement in incentive compensation for management.

	Fiscal Year Ended
	October 31, 2018			October 31, 2017			October 29, 2016
Fire & Emergency Adjusted EBITDA	$	86.0		$	109.5		$	85.2
Commercial Adjusted EBITDA		38.1			50.5			53.4
Recreation Adjusted EBITDA		60.4			36.2			11.0
Corporate and Other Adjusted EBITDA		(36.5	)		(33.7	)		(26.8	)
Depreciation and amortization		(45.5	)		(37.8	)		(24.6	)
Interest expense, net		(25.3	)		(20.7	)		(29.2	)
Benefit (provision) for income taxes		12.2			(18.7	)		(13.0	)
Transaction expenses		(2.8	)		(5.2	)		(1.6	)
Sponsor expenses		(0.9	)		(0.6	)		(0.2	)
Restructuring costs		(7.0	)		(4.5	)		(3.5	)
Stock-based compensation expense		(6.3	)		(26.6	)		(19.7	)
Non-cash purchase accounting		(0.9	)		(5.1	)		(0.8	)
Loss on early extinguishment of debt		-			(11.9	)		-
Legal matters		(5.5	)		-			-
First year public company costs		(1.5	)		-			-
Impairment charges		(35.6	)		-			-
Losses attributable to assets held for sale		(9.9	)		-			-
Deferred purchase price payment		(6.0	)		-			-
Net Income	$	13.0		$	31.4		$	30.2