Business Segments

In the fourth quarter of Fiscal 2018, we revised our segment presentation. We 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 period 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 began 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, of the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended August 25, 2018.

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 acquisition-related costs and non-operating income.

The following table shows information by reportable segment:



	Three Months Ended
(in thousands)	November 24, 2018			November 25, 2017
Net Revenues
Motorhome	$	181,328		$	188,197
Towable	292,833			259,665
Corporate / All Other	19,487			2,159
Consolidated	$	493,648		$	450,021

Adjusted EBITDA
Motorhome	$	11,976		$	4,900
Towable	30,828			33,392
Corporate / All Other	(4,351		)	(2,881		)
Consolidated	$	38,453		$	35,411

Capital Expenditures
Motorhome	$	3,192		$	3,107
Towable	8,877			2,250
Corporate / All Other	702			—
Consolidated	$	12,771		$	5,357

(in thousands)	November 24, 2018			August 25, 2018
Total Assets
Motorhome	$	303,984		$	322,048
Towable	624,445			626,588
Corporate / All Other	101,544			103,169
Consolidated	$	1,029,973		$	1,051,805

Reconciliation of net income to consolidated Adjusted EBITDA:



	Three Months Ended
(in thousands)	November 24, 2018			November 25, 2017
Net income	$	22,161		$	17,958
Interest expense	4,501			4,781
Provision for income taxes	6,726			8,560
Depreciation	3,169			2,130
Amortization of intangible assets	2,659			2,055
EBITDA	39,216			35,484
Acquisition-related costs	—			50
Non-operating income	(763		)	(123		)
Adjusted EBITDA	$	38,453		$	35,411