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Business Segments (Notes)
 6 Months Ended
Feb. 25, 2017
Segment Reporting [Abstract]  
Business Segments
Business Segments

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

In the first quarter of Fiscal 2017, we revised our reporting segments. Previously we had one reporting segment which included all recreational vehicle products and services. With the acquisition of Grand Design in the first quarter, we expanded the number of reporting segments to two: (1) Motorized products and services and (2) Towable products and services. The Motorized segment includes all products that include a motorized chassis as well as other related manufactured products. The Towable segment includes all products which are not motorized and are generally towed by another vehicle. Prior year segment information has been restated to conform to the current reporting segment presentation.

We organize our business on a product basis. Each reportable segment is managed separately to better align to our customers, distribution partners and the unique market dynamics of the product groups. We have aggregated two operating segments into the Towable reporting segment based upon their similar products, customers, distribution methods, production processes and economic characteristics. The accounting policies of both reportable segments are the same and described in Note 1, "Summary of Significant Accounting Policies" in our annual report on Form 10-K for the year ended August 27, 2016.

We evaluate the performance of our reportable segments based on Adjusted EBITDA. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization and other adjustments made in order to present comparable results from period to period. These types of adjustments are also specified in the definition of certain measures required under the terms of our Credit Facility. Examples of items excluded from Adjusted EBITDA include the postretirement health care benefit results from terminating the plan and the transaction costs related to our acquisition of Grand Design.


The following table shows information by reporting segment:
 
 
Three Months Ended
 
Six Months Ended
(In thousands)
 
February 25,
2017
 
February 27,
2016
 
February 25,
2017
 
February 27,
2016
Net revenues
 
 
 
 
 
 
 
 
Motorized
 
$
198,936

 
$
205,138

 
$
394,061

 
$
402,478

Towable
 
171,574

 
20,534

 
221,757

 
37,417

Consolidated
 
$
370,510

 
$
225,672

 
$
615,818

 
$
439,895

 
 
 
 
 
 
 
 
 
Adjusted EBITDA
 
 
 
 
 
 
 
 
Motorized
 
$
9,117

 
$
11,740

 
$
19,140

 
$
23,464

Towable
 
19,954

 
1,563

 
24,610

 
2,623

Consolidated
 
$
29,071

 
$
13,303

 
$
43,750

 
$
26,087

 
 
 
 
 
 
 
 
 
Capital Expenditures
 
 
 
 
 
 
 
 
Motorized
 
$
1,953

 
$
12,994

 
$
5,099

 
$
15,866

Towable
 
1,423

 
254

 
1,839

 
491

   Consolidated
 
$
3,376

 
$
13,248

 
$
6,938

 
$
16,357

 
 
 
 
 
 
 
 
 
Total Assets
 
 
 
 
 
 
 
 
Motorized
 
$
315,374

 
$
332,698

 
$
315,374

 
$
332,698

Towable
 
579,347

 
27,644

 
579,347

 
27,644

   Consolidated
 
$
894,721

 
$
360,342

 
$
894,721

 
$
360,342


Reconciliation of net income to consolidated Adjusted EBITDA:
 
 
Three Months Ended
 
Six Months Ended
(In thousands)
 
February 25,
2017
 
February 27,
2016
 
February 25,
2017
 
February 27,
2016
Net income
 
$
15,278

 
$
9,354

 
$
27,016

 
$
17,912

Interest expense
 
5,178

 
—

 
6,306

 
—

Provision for income taxes
 
7,916

 
4,131

 
13,536

 
8,467

Depreciation
 
1,848

 
1,393

 
3,428

 
2,763

Amortization of intangible assets
 
10,367

 
—

 
12,418

 
—

EBITDA
 
40,587

 
14,878

 
62,704

 
29,142

Postretirement health care benefit income
 
(11,983
)
 
(1,593
)
 
(24,796
)
 
(2,938
)
Transaction costs
 
463

 
—

 
5,925

 
—

Non-operating expense (income)
 
4

 
18

 
(83
)
 
(117
)
Adjusted EBITDA
 
$
29,071

 
$
13,303

 
$
43,750

 
$
26,087