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Business Segments
 6 Months Ended
Feb. 26, 2022
Segment Reporting [Abstract]  
Business Segments Business Segments
We have seven operating segments: 1) Grand Design towables, 2) Winnebago towables, 3) Winnebago motorhomes, 4) Newmar motorhomes, 5) Chris-Craft marine, 6) Barletta marine and 7) 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 acquisition of Barletta resulted in a newly created Marine reportable segment effective for the first quarter of Fiscal 2022. The segment consists of Barletta and our existing Chris-Craft operating segment. Prior year amounts for Chris-Craft have been reclassified from Corporate / All Other category to the Marine segment.

Our three reportable segments are: Towable (an aggregation of the Grand Design towables and the Winnebago towables operating segments); Motorhome (an aggregation of the Winnebago motorhomes and Newmar motorhomes operating segments); and Marine (an aggregation of the Chris Craft marine and Barletta marine 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. Marine is comprised of products that include boats, along with other manufactured products and services.

The Corporate / All Other category includes the Winnebago specialty vehicles operating segment 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.

Our 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. Our CODM is responsible for allocating resources and assessing performance of the consolidated enterprise, reportable segments and between operating segments. Management of each operating segment has responsibility for operating decisions, allocating resources and assessing performance within their respective operating segment. The accounting policies of all reportable segments are the same as those described in Note 1 to the Consolidated Financial Statements included in Item 8 of Part II of our Annual Report on Form 10-K for the fiscal year ended August 28, 2021.

We monitor and evaluate operating performance of our reportable segments based on Adjusted EBITDA. We believe disclosing Adjusted EBITDA is useful to securities analysts, investors and other interested parties when evaluating companies in our industries. 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 period over period. Examples of items excluded from Adjusted EBITDA include acquisition-related costs, litigation reserves, restructuring expenses, gain or loss on sale of property, plant and equipment, contingent consideration fair value adjustment, and non-operating income or loss.
Financial information by reportable segment is as follows:
Three Months EndedSix Months Ended
(in thousands)February 26,
2022		February 27,
2021		February 26,
2022		February 27,
2021
Net Revenues
Towable$646,601 $439,284 $1,297,625 $894,185 
Motorhome417,565 382,575 839,044 704,964 
Marine97,309 14,463 176,627 26,357 
Corporate / All Other3,256 3,564 7,175 7,511 
Consolidated$1,164,731 $839,886 $2,320,471 $1,633,017 
Adjusted EBITDA
Towable$100,573 $62,366 $212,650 $125,509 
Motorhome46,095 50,969 96,248 81,312 
Marine12,953 1,024 23,523 1,878 
Corporate / All Other(8,892)(6,394)(14,460)(11,441)
Consolidated$150,729 $107,965 $317,961 $197,258 
Capital Expenditures
Towable$10,181 $2,714 $21,339 $6,851 
Motorhome7,875 3,268 15,626 7,271 
Marine1,912 249 2,540 798 
Corporate / All Other243 — 3,921 — 
Consolidated$20,211 $6,231 $43,426 $14,920 

(in thousands)February 26,
2022		August 28,
2021
Assets
Towable$850,244 $790,257 
Motorhome910,496 728,060 
Marine402,395 102,901 
Corporate / All Other146,298 441,349 
Consolidated$2,309,433 $2,062,567 
Reconciliation of net income to consolidated Adjusted EBITDA is as follows:
Three Months EndedSix Months Ended
(in thousands)February 26, 2022February 27, 2021February 26, 2022February 27, 2021
Net income$91,175 $69,068 $190,805 $126,491 
Interest expense, net10,325 10,052 20,567 19,993 
Provision for income taxes28,760 21,166 58,901 38,723 
Depreciation5,461 4,399 10,767 8,559 
Amortization8,015 3,591 16,187 7,181 
EBITDA143,736 108,276 297,227 200,947 
Acquisition-related costs486 — 3,870 — 
Litigation reserves— — 4,000 — 
Restructuring expenses— — — 93 
Gain on sale of property, plant and equipment— — — (3,565)
Contingent consideration fair value adjustment6,517 — 12,887 — 
Non-operating income(10)(311)(23)(217)
Adjusted EBITDA$150,729 $107,965 $317,961 $197,258