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Business Combinations (Tables)

6 Months Ended

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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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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