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Business Segments (Notes)
 9 Months Ended
May 27, 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 RV 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 reported on Form 8-K dated January 20, 2017.

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 resulting 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
 
Nine Months Ended
(In thousands)
 
May 27,
2017
 
May 28,
2016
 
May 27,
2017
 
May 28,
2016
Net revenues
 
 
 
 
 
 
 
 
Motorized
 
$
241,670

 
$
246,684

 
$
635,732

 
$
649,162

Towable
 
234,694

 
25,393

 
456,451

 
62,810

Consolidated
 
$
476,364

 
$
272,077

 
$
1,092,183

 
$
711,972

 
 
 
 
 
 
 
 
 
Adjusted EBITDA
 
 
 
 
 
 
 
 
Motorized
 
$
12,598

 
$
16,218

 
$
31,738

 
$
39,683

Towable
 
34,730

 
1,512

 
59,340

 
4,134

Consolidated
 
$
47,328

 
$
17,730

 
$
91,078

 
$
43,817

 
 
 
 
 
 
 
 
 
Capital Expenditures
 
 
 
 
 
 
 
 
Motorized
 
$
1,527

 
$
3,498

 
$
6,626

 
$
19,364

Towable
 
1,275

 
73

 
3,114

 
564

   Consolidated
 
$
2,802

 
$
3,571

 
$
9,740

 
$
19,928

 
 
 
 
 
 
 
 
 
Total Assets
 
 
 
 
 
 
 
 
Motorized
 
$
319,912

 
$
354,481

 
$
319,912

 
$
354,481

Towable
 
570,439

 
25,556

 
570,439

 
25,556

   Consolidated
 
$
890,351

 
$
380,037

 
$
890,351

 
$
380,037


Reconciliation of net income to consolidated Adjusted EBITDA:
 
 
Three Months Ended
 
Nine Months Ended
(In thousands)
 
May 27,
2017
 
May 28,
2016
 
May 27,
2017
 
May 28,
2016
Net income
 
$
19,391

 
$
14,438

 
$
46,407

 
$
32,350

Interest expense
 
5,265

 
—

 
11,571

 
—

Provision for income taxes
 
10,258

 
6,232

 
23,794

 
14,699

Depreciation
 
1,859

 
1,480

 
5,287

 
4,243

Amortization of intangible assets
 
10,159

 
—

 
22,578

 
—

EBITDA
 
46,932

 
22,150

 
109,637

 
51,292

Postretirement health care benefit income
 
—

 
(1,593
)
 
(24,796
)
 
(4,531
)
Legal settlement
 
—

 
(2,750
)
 
—

 
(2,750
)
Transaction costs
 
450

 
—

 
6,374

 
—

Non-operating income
 
(54
)
 
(77
)
 
(137
)
 
(194
)
Adjusted EBITDA
 
$
47,328

 
$
17,730

 
$
91,078

 
$
43,817