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 segments.

We have two reportable segments: (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.

We organize our business reporting 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 aggregate 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 26, 2017.

Subsequent to the acquisition of Grand Design in Fiscal 2017, management re-evaluated the manner in which corporate expenses were allocated to the reportable segments. A new corporate allocation policy was adopted in the first quarter of Fiscal 2018 which identifies shared costs and allocates them to the operating segments based on a cost driver most appropriate for the type of cost being allocated. For example, certain costs were allocated based on the financial size of the operating segment while other costs, where appropriate, were allocated based on the headcount in the operating segments since headcount was deemed the appropriate driver for those types of expenses. Prior year segment information has been restated to conform to the current reporting segment presentation. All corporate expenses were allocated to the operating segments. Assets presented by reportable segment exclude certain corporate assets which cannot reasonably be allocated to the reportable segments. These Unallocated Corporate Assets include cash and deferred tax assets.

We evaluate the performance of our reportable segments based on Adjusted EBITDA after corporate allocations. 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. Examples of items excluded from Adjusted EBITDA include the postretirement health care benefit income resulting from the plan amendments over the past several years and the transaction costs related to our acquisition of Grand Design.

The following table shows information by reporting segment:



	Three Months Ended
(In thousands)	November 25, 2017		November 26, 2016
Net revenues
Motorized	$	190,356	$	195,125
Towable	259,665		50,183
Consolidated	$	450,021	$	245,308

Adjusted EBITDA
Motorized	$	3,155	$	11,116
Towable	32,256		3,563
Consolidated	$	35,411	$	14,679

Capital Expenditures
Motorized	$	3,107	$	2,801
Towable	2,250		761
Consolidated	$	5,357	$	3,562

Total Assets
Motorized	$	264,506	$	263,663
Towable	590,386		578,003
Unallocated Corporate Assets	69,958		41,029
Consolidated	$	924,850	$	882,695

Reconciliation of net income to consolidated Adjusted EBITDA:



	Three Months Ended
(In thousands)	November 25, 2017			November 26, 2016
Net income	$	17,958		$	11,738
Interest expense	4,781			1,128
Provision for income taxes	8,560			5,620
Depreciation	2,130			1,580
Amortization of intangible assets	2,055			2,051
EBITDA	35,484			22,117
Postretirement health care benefit income	—			(12,813		)
Transaction costs	50			5,462
Non-operating income	(123		)	(87		)
Adjusted EBITDA	$	35,411		$	14,679