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Business Segments Business Segments (Notes) | 9 Months Ended
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May 25, 2019
Segment Reporting [Abstract] |
Business Segments | Business Segments In the fourth quarter of Fiscal 2018, we revised our segment presentation. We have five operating segments: 1) Winnebago motorhomes, 2) Winnebago towables, 3) Grand Design towables, 4) Winnebago specialty vehicles, and 5) Chris-Craft marine. 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) Motorhome (comprised of products that include a motorized chassis as well as other related manufactured products and services) and 2) 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. The Corporate / All Other category includes the Winnebago specialty vehicles and Chris-Craft marine 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. Previously, these expenses were allocated to each operating segment. 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. Prior period segment information has been reclassified to conform to the current reportable segment presentation. The reclassifications included removing the corporate administration expenses from both the Motorhome and Towable reportable segments and removing Winnebago specialty vehicles from the Motorhome reportable segment, as we began to dedicate leadership and focus on these operations separately from our Winnebago motorhomes operations. 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 Motorhome segment, and the Towable segment. The operating segments' 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, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended August 25, 2018. 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 period to period. Examples of items excluded from Adjusted EBITDA include acquisition-related costs, restructuring expenses, and non-operating income. The following table shows information by reportable segment:
| Three Months Ended |  | Nine Months Ended
(in thousands) | May 25, 2019 |  | May 26, 2018 |  | May 25, 2019 |  | May 26, 2018
Net Revenues |  |  |  |  |  |  |
Motorhome | $ | 160,239 |  |  | $ | 244,870 |  |  | $ | 506,229 |  |  | $ | 632,148 |
Towable | 346,811 |  |  | 313,016 |  |  | 890,335 |  |  | 839,039 |
Corporate / All Other | 21,890 |  |  | 4,375 |  |  | 58,714 |  |  | 9,454 |
Consolidated | $ | 528,940 |  |  | $ | 562,261 |  |  | $ | 1,455,278 |  |  | $ | 1,480,641 |
Adjusted EBITDA |  |  |  |  |  |  |
Motorhome | $ | 381 |  |  | $ | 11,677 |  |  | $ | 16,716 |  |  | $ | 22,264 |
Towable | 57,172 |  |  | 45,378 |  |  | 121,638 |  |  | 115,066 |
Corporate / All Other | (1,679 | ) |  | (3,694 | ) |  | (9,539 | ) |  | (9,176 | )
Consolidated | $ | 55,874 |  |  | $ | 53,361 |  |  | $ | 128,815 |  |  | $ | 128,154 |
Capital Expenditures |  |  |  |  |  |  |
Motorhome | $ | 2,543 |  |  | $ | 2,643 |  |  | $ | 7,933 |  |  | $ | 7,383 |
Towable | 4,810 |  |  | 3,805 |  |  | 21,335 |  |  | 10,740 |
Corporate / All Other | 962 |  |  | — |  |  | 2,413 |  |  | — |
Consolidated | $ | 8,315 |  |  | $ | 6,448 |  |  | $ | 31,681 |  |  | $ | 18,123 |
(in thousands) |  |  |  |  | May 25, 2019 |  | August 25, 2018
Total Assets |  |  |  |  |  |  |
Motorhome |  |  |  |  | $ | 336,334 |  |  | $ | 322,048 |
Towable |  |  |  |  | 637,371 |  |  | 626,588 |
Corporate / All Other |  |  |  |  | 109,498 |  |  | 103,169 |
Consolidated |  |  |  |  | $ | 1,083,203 |  |  | $ | 1,051,805 |
Reconciliation of net income to consolidated Adjusted EBITDA:
| Three Months Ended |  | Nine Months Ended
(in thousands) | May 25, 2019 |  | May 26, 2018 |  | May 25, 2019 |  | May 26, 2018
Net income | $ | 36,171 |  |  | $ | 32,521 |  |  | $ | 79,930 |  |  | $ | 72,567 |
Interest expense | 4,446 |  |  | 4,172 |  |  | 13,293 |  |  | 13,871 |
Provision for income taxes | 8,717 |  |  | 11,684 |  |  | 18,609 |  |  | 28,478 |
Depreciation | 3,520 |  |  | 2,351 |  |  | 9,788 |  |  | 6,679 |
Amortization of intangible assets | 2,278 |  |  | 1,933 |  |  | 7,204 |  |  | 5,921 |
EBITDA | 55,132 |  |  | 52,661 |  |  | 128,824 |  |  | 127,516 |
Acquisition-related costs | — |  |  | 800 |  |  | — |  |  | 850 |
Restructuring expenses | 1,102 |  |  | — |  |  | 1,321 |  |  | — |
Non-operating income | (360 | ) |  | (100 | ) |  | (1,330 | ) |  | (212 | )
Adjusted EBITDA | $ | 55,874 |  |  | $ | 53,361 |  |  | $ | 128,815 |  |  | $ | 128,154 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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