Business Segments

Beginning in the fourth quarter of Fiscal 2018, we have revised our segment presentation and now have five operating segments: 1) Winnebago motorhomes, 2) Winnebago towables, 3) Grand Design towables, 4) Winnebago specialty vehicles, and 5) Chris-Craft marine. We evaluate performance based on each operating segment's Adjusted EBITDA, as defined below, which excludes certain corporate administration expenses and non-operating income and expense.

Our two reportable segments include: 1) Motorhome (comprised of products that include a motorized chassis as well as other related manufactured products and services) and 2) Towable (comprised of products which are not motorized and are generally towed by another vehicle as well as other related manufactured products and services), which is an aggregation of the Winnebago towables and Grand Design towables operating segments.

The Corporate / All Other category includes the Winnebago specialty vehicles and Chris-Craft marine operating segments as well as expenses related to certain corporate administration expenses for the oversight of the enterprise. These expenses include items such as corporate leadership and administration costs. Previously, these expenses were allocated to each operating segment.

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.

Prior year segment information has been reclassified to conform to the current reportable segment presentation. The reclassifications included removing the corporate administration expenses from both the Motorhome and Towable reportable segments and removing Winnebago specialty vehicles from the Motorhome reportable segment, as we begin to dedicate leadership and focus on these operations separately from our Winnebago motorhomes operations.

Our chief operating decision maker ("CODM") is our Chief Executive Officer. Our CODM relies on internal management reporting that analyzes consolidated results to the net earnings level and operating segment's Adjusted EBITDA. Our CODM has ultimate responsibility for enterprise decisions. Our CODM determines, in particular, resource allocation for, and monitors the performance of, the consolidated enterprise, the Motorhome segment, and the Towable segment. The Motorhome segment management and Towable segment management have responsibility for operating decisions, allocating resources, and assessing performance within their respective segments. The accounting policies of both reportable segments are the same and are described in Note 1, Summary of Significant Accounting Policies.

We evaluate the performance of our reportable segments based on Adjusted EBITDA. 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 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 from terminating the plan and transaction costs related to acquisitions. These types of adjustments are also specified in the definition of certain measures required under the terms of our Credit Agreement.

The following table shows information by reportable segment for Fiscal 2018, 2017, and 2016:



	Year Ended
(In thousands)	August 25, 2018			August 26, 2017			August 27, 2016
Net revenues
Motorhome	$	860,675		$	853,360		$	881,363
Towable	1,127,723			685,197			89,412
Corporate / All Other	28,431			8,562			4,451
Consolidated	$	2,016,829		$	1,547,119		$	975,226

Adjusted EBITDA
Motorhome	$	35,508		$	56,518		$	66,127
Towable	157,010			89,734			1,721
Corporate / All Other	(10,772		)	(7,375		)	(5,531		)
Consolidated	$	181,746		$	138,877		$	62,317

Capital expenditures
Motorhome	$	9,302		$	9,563		$	23,909
Towable	18,460			4,406			631
Corporate / All Other	906			24			11
Consolidated	$	28,668		$	13,993		$	24,551



	Year Ended
(In thousands)	August 25, 2018		August 26, 2017
Total assets
Motorhome	$	322,048	$	277,015
Towable	626,588		576,262
Corporate / All Other	103,169		49,235
Consolidated	$	1,051,805	$	902,512

The following table reconciles net income to consolidated Adjusted EBITDA for Fiscal 2018, 2017, and 2016:



	Year Ended
(In thousands)	August 25, 2018			August 26, 2017			August 27, 2016
Net income	$	102,357		$	71,330		$	45,496
Interest expense	18,246			16,837			—
Provision for income taxes	40,283			37,269			20,702
Depreciation	9,849			7,315			5,745
Amortization	9,328			24,660			—
EBITDA	180,063			157,411			71,943
Postretirement health care benefit income	—			(24,796		)	(6,124		)
Legal settlement	—			—			(3,400		)
Transaction costs	2,177			6,592			355
Non-operating income	(494		)	(330		)	(457		)
Adjusted EBITDA	$	181,746		$	138,877		$	62,317

The following table reconciles net revenue by geographic area for Fiscal 2018, 2017, and 2016:



	Year Ended
(In thousands)	August 25, 2018				August 26, 2017				August 27, 2016
United States	$	1,860,613	92.3	%	$	1,445,401	93.4	%	$	940,230	96.4	%
International	156,216		7.7	%	101,718		6.6	%	34,996		3.6	%
Total net revenues	$	2,016,829	100.0	%	$	1,547,119	100.0	%	$	975,226	100.0	%