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Business Combinations (Tables) | 6 Months Ended
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Feb. 29, 2020
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 Industries 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 |  | Six Months Ended
(in thousands) |  | February 29, 2020 |  | February 29, 2020
Net revenues | $ | 138,416 |  |  | $ | 174,079 |
Operating loss |  | 2,551 |  |  | 3,863 |
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 | 73,929 |
Other intangible assets | 172,100 |
Total assets acquired | 409,995 |
Accounts payable | 14,023 |
Accrued compensation | 4,306 |
Product warranties | 15,147 |
Promotional | 3,593 |
Other | 11,637 |
Deferred tax liabilities | 968 |
Total liabilities assumed | 49,674 |
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 |  |  |  | Six Months Ended |  |
(in thousands, except per share data) |  | February 29, 2020 |  | February 23, 2019 |  | February 29, 2020 |  | February 23, 2019
Net revenues | $ | 626,810 |  |  | $ | 579,163 |  |  | $ | 1,368,527 |  |  | $ | 1,242,949 |
Net income |  | 23,361 |  |  | 15,841 |  |  | 40,561 |  |  | 26,511 |
Income per share - basic | $ | 0.69 |  |  | $ | 0.47 |  |  | $ | 1.23 |  |  | $ | 0.79 |
Income per share - diluted | $ | 0.69 |  |  | $ | 0.47 |  |  | $ | 1.21 |  |  | $ | 0.79 |
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 |  |  |  | Six Months Ended |  |
(in thousands) |  | February 29, 2020 |  | February 23, 2019 |  | February 29, 2020 |  | February 23, 2019
Amortization of intangibles (1 year or less useful life)(1) | $ | 8,023 |  |  | $ | (4,400) |  |  | $ | 10,274 |  |  | $ | (13,610) |
Amortization of intangibles(2) | (6) |  |  | (1,394) |  |  | (1,059) |  |  | (2,789) |
Expenses related to business combination (transaction costs)(3) | — |  |  | (648) |  |  | 9,950 |  |  | (11,254) |
Interest to reflect new debt structure(4) | (304) |  |  | (4,624) |  |  | (3,671) |  |  | (9,170) |
Taxes related to the adjustments to the pro forma data and to the income of Newmar(5) | (1,619) |  |  | 1,530 |  |  | (2,452) |  |  | 4,585 |
(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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