Business Segments

We have identified five operating segments: 1) Grand Design towables, 2) Winnebago towables, 3) Winnebago motorhomes, 4) Chris-Craft marine, and 5) Winnebago specialty vehicles. We evaluate performance based on each operating segment's Adjusted EBITDA, as defined below, which excludes certain corporate administration expenses and non-operating income and expense.

Our two reportable segments include: 1) Towable (comprised of products which are not motorized and are generally towed by another vehicle as well as other related manufactured products and services), which is an aggregation of the Winnebago towables and Grand Design towables operating segments and 2) Motorhome (comprised of products that include a motorized chassis as well as other related manufactured products and services).

The Corporate / All Other category includes the Chris-Craft marine and Winnebago specialty vehicles operating segments as well as expenses related to certain corporate administration expenses for the oversight of the enterprise. These expenses include items such as corporate leadership and administration costs.

Identifiable assets of the reportable segments exclude general corporate assets, which principally consist of cash and cash equivalents and certain deferred tax balances. The general corporate assets are included in the Corporate / All Other category.

Our chief operating decision maker ("CODM") is our Chief Executive Officer. Our CODM relies on internal management reporting that analyzes consolidated results to the net earnings level and operating segment's Adjusted EBITDA. Our CODM has ultimate responsibility for enterprise decisions. Our CODM determines, in particular, resource allocation for, and monitors the performance of, the consolidated enterprise, the Towable segment, and the Motorhome segment. The Towable segment management and Motorhome segment management have responsibility for operating decisions, allocating resources, and assessing performance within their respective segments. The accounting policies of both reportable segments are the same and are described in Note 1, Summary of Significant Accounting Policies.

We evaluate the performance of our reportable segments based on Adjusted EBITDA. EBITDA is defined as net income before interest expense, provision for income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as net income before interest expense, provision for income taxes, depreciation and amortization expense, and other adjustments made in order to present comparable results from year to year. Examples of items excluded from Adjusted EBITDA include the postretirement health care benefit income from terminating the plan, acquisition-related costs, restructuring expenses, and non-operating income.

The following table shows information by reportable segment:



(in thousands)	2019			2018			2017
Net Revenues
Towable	$	1,197,327		$	1,127,723		$	685,197
Motorhome	706,927			860,675			853,360
Corporate / All Other	81,420			28,431			8,562
Consolidated	$	1,985,674		$	2,016,829		$	1,547,119

Adjusted EBITDA
Towable	$	163,677		$	157,010		$	89,734
Motorhome	27,455			35,508			56,518
Corporate / All Other	(11,480		)	(10,772		)	(7,375		)
Consolidated	$	179,652		$	181,746		$	138,877

Capital expenditures
Towable	$	27,679		$	18,460		$	4,406
Motorhome	9,969			9,302			9,563
Corporate / All Other	3,210			906			24
Consolidated	$	40,858		$	28,668		$	13,993



(in thousands)	August 31, 2019		August 25, 2018
Total Assets
Towable	$	628,994	$	626,588
Motorhome	332,157		322,048
Corporate / All Other	143,080		103,169
Consolidated	$	1,104,231	$	1,051,805

The following table reconciles net income to consolidated Adjusted EBITDA:



(in thousands)	2019			2018			2017
Net income	$	111,798		$	102,357		$	71,330
Interest expense	17,939			18,246			16,837
Provision for income taxes	27,111			40,283			37,269
Depreciation	13,682			9,849			7,315
Amortization of intangible assets	9,635			9,328			24,660
EBITDA	180,165			180,063			157,411
Postretirement health care benefit income	—			—			(24,796		)
Restructuring⁽¹⁾	1,068			—			—
Acquisition-related costs	—			2,177			6,592
Non-operating income	(1,581		)	(494		)	(330		)
Adjusted EBITDA	$	179,652		$	181,746		$	138,877


(1)	Balance excludes depreciation expense classified as restructuring as the balance is already included in the EBITDA calculation.

The following table reconciles net revenues by geographic area:



(in thousands)	2019		2018		2017
United States	$	1,836,472	$	1,860,613	$	1,445,401
International	149,202		156,216		101,718
Net Revenues	$	1,985,674	$	2,016,829	$	1,547,119