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 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 of Fiscal 2017, 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 organize our business reporting 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. The accounting policies of both reportable segments are the same and described in Note 1, "Summary of Significant Accounting Policies".

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. Examples of items excluded from Adjusted EBITDA include the postretirement health care benefit income resulting from the plan amendments over the past several years, favorable legal settlements including our Fiscal 2016 Australia trademark settlement, and transaction costs related to our pending acquisition of Grand Design RV.

The following table shows information by reporting segment for Fiscal 2017, Fiscal 2016 and Fiscal 2015:



	Year Ended
(In thousands)	August 26, 2017		August 27, 2016		August 29, 2015
Net revenues
Motorized	$	861,922	$	885,814	$	904,821
Towable	685,197		89,412		71,684
Consolidated	$	1,547,119	$	975,226	$	976,505

Adjusted EBITDA
Motorized	$	43,948	$	57,365	$	57,102
Towable	94,929		4,952		2,767
Consolidated	$	138,877	$	62,317	$	59,869

Capital Expenditures
Motorized	$	9,587	$	23,920	$	10,923
Towable	4,406		631		5,650
Consolidated	$	13,993	$	24,551	$	16,573



	Year Ended
(In thousands)	August 26, 2017		August 27, 2016
Total Assets
Motorized	$	333,600	$	368,941
Towable	568,912		21,777
Consolidated	$	902,512	$	390,718

Reconciliation of net income to consolidated Adjusted EBITDA:



	Year Ended
(In thousands)	August 26, 2017			August 27, 2016			August 29, 2015
Net income	$	71,330		$	45,496		$	41,210
Interest expense	16,837			—			10
Provision for income taxes	37,269			20,702			18,324
Depreciation	7,315			5,745			4,513
Amortization	24,660			—			—
EBITDA	157,411			71,943			64,057
Postretirement health care benefit income	(24,796		)	(6,124		)	(4,073		)
Legal settlement	—			(3,400		)	—
Transaction costs	6,592			355			—
Non-operating income	(330		)	(457		)	(115		)
Adjusted EBITDA	$	138,877		$	62,317		$	59,869

Net revenue by geographic area:



	Year Ended
(In thousands)	August 26, 2017				August 27, 2016				August 29, 2015
United States	$	1,445,401	93.4	%	$	940,230	96.4	%	$	920,315	94.2	%
International	101,718		6.6	%	34,996		3.6	%	56,190		5.8	%
Total net revenues	$	1,547,119	100.0	%	$	975,226	100.0	%	$	976,505	100.0	%