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Business Segments | 9 Months Ended
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May 29, 2021
Segment Reporting [Abstract] |
Business Segments | Business Segments The Company has six operating segments: 1) Grand Design towables, 2) Winnebago towables, 3) Winnebago motorhomes, 4) Newmar motorhomes, 5) Chris-Craft marine and 6) Winnebago specialty vehicles. Financial performance is evaluated based on each operating segment's Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), as defined below, which excludes certain corporate administration expenses and non-operating income and expense. The Company's two reportable segments are: Towable (an aggregation of the Grand Design towables and the Winnebago towables operating segments) and Motorhome (an aggregation of the Winnebago motorhomes and Newmar motorhomes operating segments). Towable is comprised of non-motorized products that are generally towed by another vehicle, along with other related manufactured products and services. Motorhome is comprised of products that include a motorized chassis, along with 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 certain corporate administration expenses related to the oversight of the enterprise, 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. The Company's Chief Executive Officer (the Chief Operating Decision Maker ("CODM")) regularly reviews consolidated financial results in their entirety and operating segment financial information through Adjusted EBITDA, and has ultimate responsibility for enterprise decisions. The Company's CODM is responsible for allocating resources and assessing performance of the consolidated enterprise, reportable segments and operating segments. Management of each operating segment has responsibility for operating decisions, allocating resources and assessing performance within their respective operating segment. Both reportable segments and all operating segments follow the same accounting policies in Note 1 to the Consolidated Financial Statements included in Item 8 of Part II of the Company's Annual Report on Form 10-K for the fiscal year ended August 29, 2020. The Company monitors and evaluates operating performance of its reportable segments based on Adjusted EBITDA. The Company believes disclosing Adjusted EBITDA is useful to securities analysts, investors and other interested parties when evaluating companies in the industry. 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 pretax adjustments made in order to present comparable results from period to period. Examples of items excluded from Adjusted EBITDA include acquisition-related fair-value inventory step-up, acquisition-related costs, restructuring expenses, gain or loss on sale of property and equipment, and non-operating income (loss). Financial information by reportable segment is as follows:
| Three Months Ended |  | Nine Months Ended
(in thousands) | May 29, 2021 |  | May 30, 2020 |  | May 29, 2021 |  | May 30, 2020
Net Revenues |  |  |  |  |  |  |
Towable | $ | 555,749 |  |  | $ | 188,898 |  |  | $ | 1,449,934 |  |  | $ | 813,611 |
Motorhome | 385,257 |  |  | 203,590 |  |  | 1,090,221 |  |  | 755,023 |
Corporate / All Other | 19,731 |  |  | 9,970 |  |  | 53,599 |  |  | 49,092 |
Consolidated | $ | 960,737 |  |  | $ | 402,458 |  |  | $ | 2,593,754 |  |  | $ | 1,617,726 |
Adjusted EBITDA |  |  |  |  |  |  |
Towable | $ | 80,130 |  |  | $ | 16,451 |  |  | $ | 205,639 |  |  | $ | 86,982 |
Motorhome | 37,467 |  |  | (10,789) |  |  | 118,779 |  |  | 13,488 |
Corporate / All Other | (7,823) |  |  | (1,588) |  |  | (17,386) |  |  | (8,919) |
Consolidated | $ | 109,774 |  |  | $ | 4,074 |  |  | $ | 307,032 |  |  | $ | 91,551 |
Capital Expenditures |  |  |  |  |  |  |
Towable | $ | 4,639 |  |  | $ | 2,296 |  |  | $ | 11,490 |  |  | $ | 11,962 |
Motorhome | 2,976 |  |  | 5,768 |  |  | 10,247 |  |  | 13,348 |
Corporate / All Other | 1,061 |  |  | 1,492 |  |  | 1,859 |  |  | 3,272 |
Consolidated | $ | 8,676 |  |  | $ | 9,556 |  |  | $ | 23,596 |  |  | $ | 28,582 |
(in thousands) |  |  |  |  | May 29, 2021 |  | August 29, 2020
Assets |  |  |  |  |  |  |
Towable |  |  |  |  | $ | 745,249 |  |  | $ | 718,253 |
Motorhome |  |  |  |  | 721,603 |  |  | 600,304 |
Corporate / All Other |  |  |  |  | 512,918 |  |  | 395,143 |
Consolidated |  |  |  |  | $ | 1,979,770 |  |  | $ | 1,713,700 |
Reconciliation of net income to consolidated Adjusted EBITDA is as follows:
| Three Months Ended |  | Nine Months Ended
(in thousands) | May 29, 2021 |  | May 30, 2020 |  | May 29, 2021 |  | May 30, 2020
Net income (loss) | $ | 71,295 |  |  | $ | (12,353) |  |  | $ | 197,786 |  |  | $ | 18,983 |
Interest expense | 10,229 |  |  | 8,440 |  |  | 30,222 |  |  | 23,140 |
Provision (benefit) for income taxes | 21,005 |  |  | (4,186) |  |  | 59,728 |  |  | 3,702 |
Depreciation | 4,917 |  |  | 4,134 |  |  | 13,476 |  |  | 11,854 |
Amortization | 3,590 |  |  | 6,926 |  |  | 10,771 |  |  | 18,514 |
EBITDA | 111,036 |  |  | 2,961 |  |  | 311,983 |  |  | 76,193 |
Acquisition-related fair-value inventory step-up | — |  |  | — |  |  | — |  |  | 4,810 |
Acquisition-related costs | — |  |  | (189) |  |  | — |  |  | 9,761 |
Restructuring expenses | 19 |  |  | 1,376 |  |  | 112 |  |  | 1,247 |
Gain on sale of property, plant and equipment | (1,188) |  |  | — |  |  | (4,753) |  |  | — |
Non-operating income | (93) |  |  | (74) |  |  | (310) |  |  | (460) |
Adjusted EBITDA | $ | 109,774 |  |  | $ | 4,074 |  |  | $ | 307,032 |  |  | $ | 91,551 |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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