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Long-Term Debt (Notes) | 12 Months Ended
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Aug. 25, 2018
Debt Disclosure [Abstract] |
Debt Disclosure | Long-Term Debt The components of long-term debt are as follows:
(In thousands) | August 25, 2018 |  | August 26, 2017
ABL | $ | 38,532 |  |  | $ | — |
Term Loan | 260,000 |  |  | 284,000 |
Gross long-term debt, excluding issuance costs | 298,532 |  |  | 284,000 |
Debt issuance cost, net | (7,091 | ) |  | (9,424 | )
Total long-term debt | 291,441 |  |  | 274,576 |
Less: current maturities | — |  |  | (2,850 | )
Total long-term debt, less current maturities | $ | 291,441 |  |  | $ | 271,726 |
On November 8, 2016, we entered into a $125.0 million credit agreement ("ABL") and a $300.0 million loan agreement ("Term Loan") with JPMorgan Chase Bank, N.A. ("Credit Agreement"). On December 8, 2017, we amended our Credit Agreement, which decreased the interest rate spread by 1.0% on the Term Loan and 0.25% on the ABL. Under the ABL, we have a five year credit facility on a revolving basis, subject to availability under a borrowing base consisting of eligible accounts receivable and eligible inventory. The ABL is available for issuance of letters of credit to a specified limit of $10.0 million. We pay a commitment fee in the range of 0.25% - 0.375% on the amount of facility available, but unused. We can elect to base the interest rate on various base rates plus specific spreads depending on the amount of borrowings outstanding. We currently pay interest on ABL borrowings at a floating rate based upon LIBOR plus 1.25%. Under the Term Loan, we can elect to base the interest rate on various base rates plus specific spreads. The interest rate as of August 25, 2018 was based on LIBOR plus 2.32%. The Term Loan agreement currently requires quarterly payments in the amount of $2.75 million until December 31, 2019 at which time the quarterly payments change to $3.75 million, with all amounts then outstanding due on November 8, 2023. We have made voluntary prepayments that have extended the opportunity to defer quarterly payments, at our option, until December 31, 2019. There are mandatory prepayments for proceeds of new debt, sale of significant assets or subsidiaries, and excess cash flow as those terms are defined in the Term Loan. Incremental term loans of up to $125.0 million are available if certain financial ratios and other conditions are met. The amount that may be borrowed under the ABL was increased to $165.0 million as of September 21, 2018. The Credit Agreement contains certain financial covenants. As of August 25, 2018, we are in compliance with all financial covenants of the Credit Agreement. The ABL and Term Loan are guaranteed by Winnebago Industries, Inc. and all material direct and indirect domestic subsidiaries and are secured by a security interest in substantially all of our assets, except minor excluded assets. We amortize debt issuance costs on a straight-line basis (which is not materially different from an effective interest method) over the term of the associated debt agreement. If early principal payments are made on the Term Loan, a proportional amount of the unamortized issuance costs will be expensed. As of August 25, 2018, we incurred $1.1 million of costs related to our revolving Credit Agreement that are being amortized on a straight-line basis over the five year term of the agreement. We also incurred $10.5 million of costs as of August 25, 2018 related to the Term Loan that are being amortized on a straight-line basis over the seven year term of the agreement. Unamortized debt issuance costs of $0.6 million related to the voluntary prepayment on the Term Loan were expensed in Fiscal 2018. The fair value of long-term debt, excluding debt issuance costs, approximated the carrying values as of August 25, 2018 and August 26, 2017 as interest is at variable market rates. Aggregate contractual maturities of debt in future fiscal years, are as follows:
(In thousands) | Amount
Fiscal 2019 | $ | — |
Fiscal 2020 | 10,250 |
Fiscal 2021 | 15,000 |
Fiscal 2022 | 15,000 |
Fiscal 2023 | 219,750 |
Total long-term debt | $ | 260,000 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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