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Business Combinations (Tables)

3 Months Ended

Nov. 30, 2019

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

The following table summarizes the total consideration paid for Newmar, noting that it is subject to purchase price adjustments as stipulated in the Purchase Agreement:

(in thousands)	November 8, 2019
Cash	$	267,749
Winnebago shares: 2,000,000 at $46.29	92,572
Total	$	360,321

The following table provides net revenues and operating income from the Newmar operating segment included in our consolidated results following the November 8, 2019 closing date:

	Three Months Ended
(in thousands)	November 30, 2019
Net revenues	$	35,663
Operating loss	1,283

Schedule of Preliminary Fair Values Assigned

The following table summarizes the preliminary fair values assigned to the Newmar net assets acquired and the determination of net assets:

(in thousands)	November 8, 2019
Cash	$	3,469
Accounts receivable	37,147
Inventories	82,621
Prepaid expenses and other assets	9,586
Property, plant, and equipment	31,143
Goodwill	72,909
Other intangible assets	172,100
Total assets acquired	408,975
Accounts payable	14,023
Accrued compensation	4,306
Product warranties	15,147
Promotional	2,573
Other	11,637
Deferred tax liabilities	968
Total liabilities assumed	48,654
Total purchase price	$	360,321

Schedule of Finite-Lived Intangible Assets

The following table summarizes the other intangible assets acquired:

($ in thousands)	November 8, 2019				Useful Life-Years
Trade name	$	98,000			Indefinite
Dealer network	64,000				12.0
Backlog	8,800				0.5
Non-compete agreements	1,300				5.0

Schedule of Indefinite-lived Intangible Assets

The following table summarizes the other intangible assets acquired:

($ in thousands)	November 8, 2019				Useful Life-Years
Trade name	$	98,000			Indefinite
Dealer network	64,000				12.0
Backlog	8,800				0.5
Non-compete agreements	1,300				5.0

Schedule of Pro Forma Information

The following unaudited pro forma information represents our results of operations as if the Fiscal 2020 acquisition of Newmar had occurred at the beginning of Fiscal 2019:

	Three Months Ended
(in thousands, except per share data)	November 30, 2019				November 24, 2018
Net revenues	$	741,717			$	663,786
Net income	17,197				10,665
Income per share - basic	$	0.51			$	0.32
Income per share - diluted	$	0.50			$	0.32

Pro Forma Data With Non-Recurring Adjustments

The unaudited pro forma data above includes the following significant non-recurring adjustments made to account for certain costs which would have changed if the acquisition of Newmar had occurred at the beginning of Fiscal 2019:

	Three Months Ended
(in thousands)	November 30, 2019				November 24, 2018
Amortization of intangibles (1 year or less useful life)(1)	$	2,251			$	(9,210	)
Increase in amortization of intangibles(2)	(1,057		)		(1,398		)
Expenses related to business combination (transaction costs)(3)	9,950				(10,606		)
Interest to reflect new debt structure(4)	(3,367		)		(4,546		)
Taxes related to the adjustments to the pro forma data and to the income of Newmar(5)	(832		)		3,056

(1) Includes amortization adjustments for our backlog intangible asset and our fair-value inventory adjustment.

(2) Includes amortization adjustments for our dealer network and non-compete intangible assets.

(3) Pro forma transaction costs include $0.6 million incurred prior to the acquisition.

(4) Includes adjustments for cash and non-cash interest expense as well as deferred financing costs. Refer to Note 9, Long-Term Debt, for additional information on the Company's new debt structure as a result of the acquisition.

(5)

Calculated using our U.S. federal statutory rate of 21.0%.

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- Definition

Tabular disclosure of the nature and amount of any material, nonrecurring adjustments directly attributable to the business combination(s) included in the reported pro forma revenue and earnings (supplemental pro forma information).

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