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Business Segments (Notes)
 3 Months Ended
Nov. 26, 2016
Segment Reporting [Abstract]  
Business Segments
Business Segments

We report segment information based on the "management" approach defined in ASC 280, Segment Reporting. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of our reportable operating segments.

In the first quarter of Fiscal 2017, we revised our reporting segments. Previously we had one reporting segment which included all recreational vehicle products and services. With the acquisition of Grand Design in the first quarter, we expanded the number of reporting segments to two: (1) Motorized products and services and (2) Towable products and services. The Towable segment includes all products which are not motorized and are generally towed by another vehicle. The Motorized segment includes all products that include a motorized chassis as well as other related manufactured products. Prior year segment information has been restated to conform to the current reporting segment presentation.

We manage our business on a product basis. Each reportable segment is managed separately to better align to our customers, distribution partners and the unique market dynamics of the product groups. We have aggregated two operating segments into the Towable reporting segment based upon their similar products, customers, distribution methods, production processes and economic characteristics. The accounting policies of both reportable segments are the same and described in Note 1, "Summary of Significant Accounting Policies" in our annual report on Form 10-K for the year ended August 27, 2016.

We evaluate the performance of our reportable segments based on Adjusted EBITDA. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization and other adjustments made in order to present comparable results from period to period. These types of adjustments are also specified in the definition of certain measures required under the terms of our credit facility. Examples of items excluded from Adjusted EBITDA include the postretirement health care benefit results from terminating the plan and the transaction costs related to our acquisition of Grand Design.


The following table shows information by reporting segment for the first quarter of Fiscal 2017 and Fiscal 2016:
 
 
Three Months Ended
(In thousands)
 
November 26,
2016
 
November 28,
2015
Net revenues
 
 
 
 
Motorized
 
$
195,125

 
$
197,340

Towable
 
50,183

 
16,883

Consolidated
 
$
245,308

 
$
214,223

 
 
 
 
 
Adjusted EBITDA
 
 
 
 
Motorized
 
$
10,015

 
$
11,724

Towable
 
4,664

 
1,060

Consolidated
 
$
14,679

 
$
12,784

 
 
 
 
 
Capital Expenditures
 
 
 
 
Motorized
 
$
3,146

 
$
2,872

Towable
 
416

 
237

   Consolidated
 
$
3,562

 
$
3,109

 
 
 
 
 
Total Assets
 
 
 
 
Motorized
 
$
307,125

 
$
329,081

Towable
 
575,570

 
25,251

   Consolidated
 
$
882,695

 
$
354,332


Reconciliation of net income to consolidated Adjusted EBITDA:
 
 
Three Months Ended
(In thousands)
 
November 26,
2016
 
November 28,
2015
Net income
 
$
11,738

 
$
8,558

Interest expense
 
1,128

 
—

Provision for income taxes
 
5,620

 
4,336

Depreciation
 
1,580

 
1,370

Amortization of intangible assets
 
2,051

 
—

EBITDA
 
22,117

 
14,264

Postretirement health care benefit income
 
(12,813
)
 
(1,345
)
Transaction costs
 
5,462

 
—

Non-operating income
 
(87
)
 
(135
)
Adjusted EBITDA
 
$
14,679

 
$
12,784