(Mark One) | ||||||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
or | |||||||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
For the transition period from _________________ to _________________ | |||||||||||
Commission File Number: |
(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
(Registrant's telephone number, including area code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(in thousands, except per share data) | February 26, 2022 | February 27, 2021 | February 26, 2022 | February 27, 2021 | |||||||||||||||||||
Net revenues | $ | $ | $ | $ | |||||||||||||||||||
Cost of goods sold | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general, and administrative expenses | |||||||||||||||||||||||
Amortization | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Non-operating loss (income) | ( | ( | |||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Amortization of net actuarial loss (net of tax of $ | |||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
(in thousands, except per share data) | February 26, 2022 | August 28, 2021 | |||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Receivables, less allowance for doubtful accounts ($ | |||||||||||
Inventories, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant, and equipment, net | |||||||||||
Goodwill | |||||||||||
Other intangible assets, net | |||||||||||
Investment in life insurance | |||||||||||
Operating lease assets | |||||||||||
Other long-term assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders' Equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Income taxes payable | |||||||||||
Accrued expenses: | |||||||||||
Accrued compensation | |||||||||||
Product warranties | |||||||||||
Self-insurance | |||||||||||
Promotional | |||||||||||
Accrued interest and dividends | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net | |||||||||||
Deferred income taxes | |||||||||||
Unrecognized tax benefits | |||||||||||
Long-term operating lease liabilities | |||||||||||
Deferred compensation benefits, net of current portion | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Contingent liabilities and commitments (Note 11) | |||||||||||
Shareholders' equity: | |||||||||||
Preferred stock, par value $ | |||||||||||
Common stock, par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock, at cost: | ( | ( | |||||||||
Total shareholders' equity | |||||||||||
Total liabilities and shareholders' equity | $ | $ |
Six Months Ended | |||||||||||
(in thousands) | February 26, 2022 | February 27, 2021 | |||||||||
Operating activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Depreciation | |||||||||||
Amortization | |||||||||||
Non-cash interest expense, net | |||||||||||
Amortization of debt issuance costs | |||||||||||
Last in, first-out expense | |||||||||||
Stock-based compensation | |||||||||||
Deferred income taxes | ( | ||||||||||
Contingent consideration fair value adjustment | |||||||||||
Other, net | ( | ||||||||||
Change in operating assets and liabilities, net of assets and liabilities acquired | |||||||||||
Receivables, net | ( | ( | |||||||||
Inventories, net | ( | ( | |||||||||
Prepaid expenses and other assets | |||||||||||
Accounts payable | |||||||||||
Income taxes and unrecognized tax benefits | ( | ( | |||||||||
Accrued expenses and other liabilities | |||||||||||
Net cash provided by operating activities | |||||||||||
Investing activities | |||||||||||
Purchases of property, plant, and equipment | ( | ( | |||||||||
Acquisition of business, net of cash acquired | ( | ||||||||||
Proceeds from the sale of property, plant, and equipment | |||||||||||
Other, net | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing activities | |||||||||||
Borrowings on long-term debt | |||||||||||
Repayments on long-term debt | ( | ( | |||||||||
Payments of cash dividends | ( | ( | |||||||||
Payments for repurchases of common stock | ( | ( | |||||||||
Payments of debt issuance costs | ( | ||||||||||
Other, net | |||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net (decrease)/increase in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental Disclosures | |||||||||||
Income taxes paid, net | $ | $ | |||||||||
Interest paid | |||||||||||
Non-cash investing and financing activities | |||||||||||
Issuance of common stock for acquisition of business | $ | $ | |||||||||
Capital expenditures in accounts payable | |||||||||||
Increase (decrease) in lease assets in exchange for lease liabilities: | |||||||||||
Operating leases | ( | ||||||||||
Finance leases | ( |
Three Months Ended February 26, 2022 | ||||||||||||||||||||||||||
(in thousands, except per share data) | Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||
Number | Amount | Number | Amount | |||||||||||||||||||||||
Balance at November 27, 2021 | $ | $ | $ | $ | ( | ( | $ | ( | $ | |||||||||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||||||||
Issuance of stock, net | — | — | — | — | ||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||
Common stock dividends; $ | — | — | — | ( | — | — | — | ( | ||||||||||||||||||
Total comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||
Balance at February 26, 2022 | $ | $ | $ | $ | ( | ( | $ | ( | $ | |||||||||||||||||
Three Months Ended February 27, 2021 | ||||||||||||||||||||||||||
(in thousands, except per share data) | Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||
Number | Amount | Number | Amount | |||||||||||||||||||||||
Balance at November 28, 2020 | $ | $ | $ | $ | ( | ( | $ | ( | $ | |||||||||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||||||||
Issuance of stock, net | — | — | — | — | ||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||
Common stock dividends; $ | — | — | — | ( | — | — | — | ( | ||||||||||||||||||
Total comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||
Balance at February 27, 2021 | $ | $ | $ | $ | ( | ( | $ | ( | $ | |||||||||||||||||
Six Months Ended February 26, 2022 | ||||||||||||||||||||||||||
(in thousands, except per share data) | Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||
Number | Amount | Number | Amount | |||||||||||||||||||||||
Balances at August 28, 2021 | $ | $ | $ | $ | ( | ( | $ | ( | $ | |||||||||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||||||||
Issuance of stock for acquisition | — | — | — | — | ||||||||||||||||||||||
Issuance of stock, net | — | — | ( | — | — | |||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||
Common stock dividends; $ | — | — | — | ( | — | — | — | ( | ||||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||||
Total comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||
Balances at February 26, 2022 | $ | $ | $ | $ | ( | ( | $ | ( | $ | |||||||||||||||||
Six Months Ended February 27, 2021 | ||||||||||||||||||||||||||
(in thousands, except per share data) | Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||
Number | Amount | Number | Amount | |||||||||||||||||||||||
Balances at August 29, 2020 | $ | $ | $ | $ | ( | ( | $ | ( | $ | |||||||||||||||||
Stock-based compensation | — | — | — | — | ||||||||||||||||||||||
Issuance of stock, net | — | — | ( | — | — | |||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||
Common stock dividends; $ | — | — | — | ( | — | — | — | ( | ||||||||||||||||||
Total comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||
Balances at February 27, 2021 | $ | $ | $ | $ | ( | ( | $ | ( | $ | |||||||||||||||||
(in thousands) | August 31, 2021 | ||||
Cash | $ | ||||
Other current assets | |||||
Property, plant, and equipment | |||||
Goodwill | |||||
Other intangible assets | |||||
Total assets acquired | |||||
Accounts payable | |||||
Product warranties | |||||
Other current liabilities | |||||
Total liabilities assumed | |||||
Total purchase price | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(in thousands) | February 26, 2022 | February 27, 2021 | February 26, 2022 | February 27, 2021 | |||||||||||||||||||
Net Revenues | |||||||||||||||||||||||
Towable | $ | $ | $ | $ | |||||||||||||||||||
Motorhome | |||||||||||||||||||||||
Marine | |||||||||||||||||||||||
Corporate / All Other | |||||||||||||||||||||||
Consolidated | $ | $ | $ | $ | |||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||
Towable | $ | $ | $ | $ | |||||||||||||||||||
Motorhome | |||||||||||||||||||||||
Marine | |||||||||||||||||||||||
Corporate / All Other | ( | ( | ( | ( | |||||||||||||||||||
Consolidated | $ | $ | $ | $ | |||||||||||||||||||
Capital Expenditures | |||||||||||||||||||||||
Towable | $ | $ | $ | $ | |||||||||||||||||||
Motorhome | |||||||||||||||||||||||
Marine | |||||||||||||||||||||||
Corporate / All Other | |||||||||||||||||||||||
Consolidated | $ | $ | $ | $ | |||||||||||||||||||
(in thousands) | February 26, 2022 | August 28, 2021 | |||||||||
Assets | |||||||||||
Towable | $ | $ | |||||||||
Motorhome | |||||||||||
Marine | |||||||||||
Corporate / All Other | |||||||||||
Consolidated | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(in thousands) | February 26, 2022 | February 27, 2021 | February 26, 2022 | February 27, 2021 | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Depreciation | |||||||||||||||||||||||
Amortization | |||||||||||||||||||||||
EBITDA | |||||||||||||||||||||||
Acquisition-related costs | |||||||||||||||||||||||
Litigation reserves | |||||||||||||||||||||||
Restructuring expenses | |||||||||||||||||||||||
Gain on sale of property, plant and equipment | ( | ||||||||||||||||||||||
Contingent consideration fair value adjustment | |||||||||||||||||||||||
Non-operating income | ( | ( | ( | ( | |||||||||||||||||||
Adjusted EBITDA | $ | $ | $ | $ |
Fair Value at | Fair Value Hierarchy | ||||||||||||||||||||||
(in thousands) | February 26, 2022 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets that fund deferred compensation | |||||||||||||||||||||||
Domestic equity funds | $ | $ | $ | $ | |||||||||||||||||||
International equity funds | |||||||||||||||||||||||
Fixed income funds | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ | |||||||||||||||||||
Contingent consideration | |||||||||||||||||||||||
Earnout liability | $ | $ | $ | $ | |||||||||||||||||||
Total liabilities at fair value | $ | $ | $ | $ |
Fair Value at | Fair Value Hierarchy | ||||||||||||||||||||||
(in thousands) | August 28, 2021 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets that fund deferred compensation | |||||||||||||||||||||||
Domestic equity funds | $ | $ | $ | $ | |||||||||||||||||||
International equity funds | |||||||||||||||||||||||
Fixed income funds | |||||||||||||||||||||||
Total assets at fair value | $ | $ | $ | $ |
(in thousands) | February 26, 2022 | August 28, 2021 | |||||||||
Finished goods | $ | $ | |||||||||
Work-in-process | |||||||||||
Raw materials | |||||||||||
Total | |||||||||||
Less: Excess of FIFO over LIFO cost | |||||||||||
Inventories, net | $ | $ |
(in thousands) | February 26, 2022 | August 28, 2021 | |||||||||
LIFO basis | $ | $ | |||||||||
First-in, first-out basis | |||||||||||
Total | $ | $ |
(in thousands) | February 26, 2022 | August 28, 2021 | |||||||||
Land | $ | $ | |||||||||
Buildings and building improvements | |||||||||||
Machinery and equipment | |||||||||||
Software | |||||||||||
Transportation | |||||||||||
Construction in progress | |||||||||||
Property, plant, and equipment, gross | |||||||||||
Less: Accumulated depreciation | |||||||||||
Property, plant, and equipment, net | $ | $ |
(in thousands) | Towable | Motorhome | Marine | Total | |||||||||||||||||||
Balances at August 29, 2020 and February 27, 2021(1) | $ | $ | $ | $ | |||||||||||||||||||
Balances at August 28, 2021 | $ | $ | $ | $ | |||||||||||||||||||
Acquisition of Barletta(2) | |||||||||||||||||||||||
Balances at February 26, 2022 | $ | $ | $ | $ |
February 26, 2022 | |||||||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | ||||||||||||||
Trade names | $ | $ | — | $ | |||||||||||||
Dealer networks | $ | ||||||||||||||||
Backlog | |||||||||||||||||
Non-compete agreements | |||||||||||||||||
Other intangible assets | $ | $ | $ | ||||||||||||||
August 28, 2021 | |||||||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | ||||||||||||||
Trade names | $ | $ | — | $ | |||||||||||||
Dealer networks | |||||||||||||||||
Backlog | |||||||||||||||||
Non-compete agreements | |||||||||||||||||
Other intangible assets | $ | $ | $ |
(in thousands) | Amount | ||||
Remainder of Fiscal 2022 | $ | ||||
Fiscal 2023 | |||||
Fiscal 2024 | |||||
Fiscal 2025 | |||||
Fiscal 2026 | |||||
Fiscal 2027 | |||||
Thereafter | |||||
Total amortization expense remaining | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(in thousands) | February 26, 2022 | February 27, 2021 | February 26, 2022 | February 27, 2021 | |||||||||||||||||||
Balance at beginning of period | $ | $ | $ | $ | |||||||||||||||||||
Business acquisition(1) | |||||||||||||||||||||||
Provision | |||||||||||||||||||||||
Claims paid | ( | ( | ( | ( | |||||||||||||||||||
Balance at end of period | $ | $ | $ | $ |
(in thousands) | February 26, 2022 | August 28, 2021 | |||||||||
ABL Credit Facility | $ | $ | |||||||||
Senior Secured Notes | |||||||||||
Convertible Notes | |||||||||||
Long-term debt, gross | |||||||||||
Convertible Notes unamortized interest discount | ( | ( | |||||||||
Debt issuance costs, net | ( | ( | |||||||||
Long-term debt, net | $ | $ |
(in thousands) | Amount | ||||
Remainder of Fiscal 2022 | $ | ||||
Fiscal 2023 | |||||
Fiscal 2024 | |||||
Fiscal 2025 | |||||
Fiscal 2026 | |||||
Fiscal 2027 | |||||
Thereafter | |||||
Total Senior Secured Notes and Convertible Notes | $ |
(in thousands) | February 26, 2022 | August 28, 2021 | |||||||||
Non-qualified deferred compensation | $ | $ | |||||||||
Supplemental executive retirement plan | |||||||||||
Executive deferred compensation plan | |||||||||||
Total deferred compensation benefits | |||||||||||
Less current portion(1) | |||||||||||
Deferred compensation benefits, net of current portion | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(in thousands) | February 26, 2022 | February 27, 2021 | February 26, 2022 | February 27, 2021 | |||||||||||||||||||
Net Revenues | |||||||||||||||||||||||
Towable | |||||||||||||||||||||||
Fifth Wheel | $ | $ | $ | $ | |||||||||||||||||||
Travel Trailer | |||||||||||||||||||||||
Other(1) | |||||||||||||||||||||||
Total Towable | |||||||||||||||||||||||
Motorhome | — | — | |||||||||||||||||||||
Class A | |||||||||||||||||||||||
Class B | |||||||||||||||||||||||
Class C and Other(1) | |||||||||||||||||||||||
Total Motorhome | |||||||||||||||||||||||
Marine | |||||||||||||||||||||||
Corporate / All Other(2) | |||||||||||||||||||||||
Consolidated Net Revenues | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(in thousands, except per share data) | February 26, 2022 | February 27, 2021 | February 26, 2022 | February 27, 2021 | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Dilutive impact of stock compensation awards | |||||||||||||||||||||||
Dilutive impact of convertible notes | |||||||||||||||||||||||
Weighted average common shares outstanding, assuming dilution | |||||||||||||||||||||||
Anti-dilutive securities excluded from weighted average common shares outstanding, assuming dilution | |||||||||||||||||||||||
Basic earnings per common share | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per common share | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
February 26, 2022 | February 27, 2021 | February 26, 2022 | February 27, 2021 | ||||||||||||||||||||
(in thousands) | Defined Benefit Pension Items | Defined Benefit Pension Items | Defined Benefit Pension Items | Defined Benefit Pension Items | |||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Amounts reclassified from AOCI | |||||||||||||||||||||||
Net current-period OCI | |||||||||||||||||||||||
Balance at end of period | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||
(in thousands) | Location on Consolidated Statements of Income and Comprehensive Income | February 26, 2022 | February 27, 2021 | February 26, 2022 | February 27, 2021 | |||||||||||||||||||||
Amortization of net actuarial loss | SG&A | $ | $ | $ | $ |
Three Months Ended | |||||||||||||||||||||||||||||||||||
($ in thousands, except per share data) | February 26, 2022 | % of Revenues(1) | February 27, 2021 | % of Revenues(1) | $ Change | % Change | |||||||||||||||||||||||||||||
Net revenues | $ | 1,164,731 | 100.0 | % | $ | 839,886 | 100.0 | % | $ | 324,845 | 38.7 | % | |||||||||||||||||||||||
Cost of goods sold | 948,154 | 81.4 | % | 683,304 | 81.4 | % | 264,850 | 38.8 | % | ||||||||||||||||||||||||||
Gross profit | 216,577 | 18.6 | % | 156,582 | 18.6 | % | 59,995 | 38.3 | % | ||||||||||||||||||||||||||
Selling, general, and administrative expenses | 71,795 | 6.2 | % | 53,016 | 6.3 | % | 18,779 | 35.4 | % | ||||||||||||||||||||||||||
Amortization | 8,015 | 0.7 | % | 3,591 | 0.4 | % | 4,424 | 123.2 | % | ||||||||||||||||||||||||||
Total operating expenses | 79,810 | 6.9 | % | 56,607 | 6.7 | % | 23,203 | 41.0 | % | ||||||||||||||||||||||||||
Operating income | 136,767 | 11.7 | % | 99,975 | 11.9 | % | 36,792 | 36.8 | % | ||||||||||||||||||||||||||
Interest expense, net | 10,325 | 0.9 | % | 10,052 | 1.2 | % | 273 | 2.7 | % | ||||||||||||||||||||||||||
Non-operating loss (income) | 6,507 | 0.6 | % | (311) | — | % | (6,818) | (2,192.3) | % | ||||||||||||||||||||||||||
Income before income taxes | 119,935 | 10.3 | % | 90,234 | 10.7 | % | 29,701 | 32.9 | % | ||||||||||||||||||||||||||
Provision for income taxes | 28,760 | 2.5 | % | 21,166 | 2.5 | % | 7,594 | 35.9 | % | ||||||||||||||||||||||||||
Net income | $ | 91,175 | 7.8 | % | $ | 69,068 | 8.2 | % | $ | 22,107 | 32.0 | % | |||||||||||||||||||||||
Diluted earnings per share | $ | 2.69 | $ | 2.04 | $ | 0.65 | 31.9 | % | |||||||||||||||||||||||||||
Diluted weighted average shares outstanding | 33,934 | 33,910 | 24 | 0.1 | % |
Three Months Ended | |||||||||||
(in thousands) | February 26, 2022 | February 27, 2021 | |||||||||
Net income | $ | 91,175 | $ | 69,068 | |||||||
Interest expense, net | 10,325 | 10,052 | |||||||||
Provision for income taxes | 28,760 | 21,166 | |||||||||
Depreciation | 5,461 | 4,399 | |||||||||
Amortization | 8,015 | 3,591 | |||||||||
EBITDA | 143,736 | 108,276 | |||||||||
Acquisition-related costs | 486 | — | |||||||||
Contingent consideration fair value adjustment | 6,517 | — | |||||||||
Non-operating income | (10) | (311) | |||||||||
Adjusted EBITDA | $ | 150,729 | $ | 107,965 |
Three Months Ended | |||||||||||||||||||||||||||||||||||
(in thousands, except ASP and units) | February 26, 2022 | % of Revenues | February 27, 2021 | % of Revenues | $ Change | % Change | |||||||||||||||||||||||||||||
Net revenues | $ | 646,601 | $ | 439,284 | $ | 207,317 | 47.2 | % | |||||||||||||||||||||||||||
Adjusted EBITDA | 100,573 | 15.6 | % | 62,366 | 14.2 | % | 38,207 | 61.3 | % | ||||||||||||||||||||||||||
Average Selling Price ("ASP")(1) | 41,917 | 32,377 | 9,540 | 29.5 | % | ||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
Unit deliveries | February 26, 2022 | Product Mix(2) | February 27, 2021 | Product Mix(2) | Unit Change | % Change | |||||||||||||||||||||||||||||
Travel trailer | 10,764 | 70.4 | % | 8,876 | 65.7 | % | 1,888 | 21.3 | % | ||||||||||||||||||||||||||
Fifth wheel | 4,530 | 29.6 | % | 4,632 | 34.3 | % | (102) | (2.2) | % | ||||||||||||||||||||||||||
Total towables | 15,294 | 100.0 | % | 13,508 | 100.0 | % | 1,786 | 13.2 | % |
Three Months Ended | |||||||||||||||||||||||||||||||||||
(in thousands, except ASP and units) | February 26, 2022 | % of Revenues | February 27, 2021 | % of Revenues | $ Change | % Change | |||||||||||||||||||||||||||||
Net revenues | $ | 417,565 | $ | 382,575 | $ | 34,990 | 9.1 | % | |||||||||||||||||||||||||||
Adjusted EBITDA | 46,095 | 11.0 | % | 50,969 | 13.3 | % | (4,874) | (9.6) | % | ||||||||||||||||||||||||||
ASP(1) | $ | 146,289 | $ | 130,856 | 15,433 | 11.8 | % | ||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
Unit deliveries | February 26, 2022 | Product Mix(2) | February 27, 2021 | Product Mix(2) | Unit Change | % Change | |||||||||||||||||||||||||||||
Class A | 588 | 20.8 | % | 704 | 24.4 | % | (116) | (16.5) | % | ||||||||||||||||||||||||||
Class B | 1,641 | 58.0 | % | 1,419 | 49.2 | % | 222 | 15.6 | % | ||||||||||||||||||||||||||
Class C | 602 | 21.3 | % | 762 | 26.4 | % | (160) | (21.0) | % | ||||||||||||||||||||||||||
Total motorhomes | 2,831 | 100.0 | % | 2,885 | 100.0 | % | (54) | (1.9) | % |
Three Months Ended | |||||||||||||||||||||||||||||||||||
(in thousands, except ASP and units) | February 26, 2022 | % of Revenues | February 27, 2021 | % of Revenues | $ Change | % Change | |||||||||||||||||||||||||||||
Net revenues | $ | 97,309 | $ | 14,463 | $ | 82,846 | 572.8 | % | |||||||||||||||||||||||||||
Adjusted EBITDA | 12,953 | 13.3 | % | 1,024 | 7.1 | % | 11,929 | 1,164.9 | % | ||||||||||||||||||||||||||
ASP(1) | $ | 73,492 | $ | 209,931 | (136,439) | (65.0) | % | ||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
Unit deliveries | February 26, 2022 | February 27, 2021 | Unit Change | % Change | |||||||||||||||||||||||||||||||
Boats | 1,322 | 69 | 1,253 | 1,815.9 | % |
Six Months Ended | |||||||||||||||||||||||||||||||||||
($ in thousands, except per share data) | February 26, 2022 | % of Revenues(1) | February 27, 2021 | % of Revenues(1) | $ Change | % Change | |||||||||||||||||||||||||||||
Net revenues | $ | 2,320,471 | 100.0 | % | $ | 1,633,017 | 100.0 | % | $ | 687,454 | 42.1 | % | |||||||||||||||||||||||
Cost of goods sold | 1,874,482 | 80.8 | % | 1,339,431 | 82.0 | % | 535,051 | 39.9 | % | ||||||||||||||||||||||||||
Gross profit | 445,989 | 19.2 | % | 293,586 | 18.0 | % | 152,403 | 51.9 | % | ||||||||||||||||||||||||||
Selling, general, and administrative expenses | 146,665 | 6.3 | % | 101,415 | 6.2 | % | 45,250 | 44.6 | % | ||||||||||||||||||||||||||
Amortization | 16,187 | 0.7 | % | 7,181 | 0.4 | % | 9,006 | 125.4 | % | ||||||||||||||||||||||||||
Total operating expenses | 162,852 | 7.0 | % | 108,596 | 6.7 | % | 54,256 | 50.0 | % | ||||||||||||||||||||||||||
Operating income | 283,137 | 12.2 | % | 184,990 | 11.3 | % | 98,147 | 53.1 | % | ||||||||||||||||||||||||||
Interest expense, net | 20,567 | 0.9 | % | 19,993 | 1.2 | % | 574 | 2.9 | % | ||||||||||||||||||||||||||
Non-operating loss (income) | 12,864 | 0.6 | % | (217) | — | % | (13,081) | (6,028.1) | % | ||||||||||||||||||||||||||
Income before income taxes | 249,706 | 10.8 | % | 165,214 | 10.1 | % | 84,492 | 51.1 | % | ||||||||||||||||||||||||||
Provision for income taxes | 58,901 | 2.5 | % | 38,723 | 2.4 | % | 20,178 | 52.1 | % | ||||||||||||||||||||||||||
Net income | $ | 190,805 | 8.2 | % | $ | 126,491 | 7.7 | % | $ | 64,314 | 50.8 | % | |||||||||||||||||||||||
Diluted earnings per share | $ | 5.58 | $ | 3.74 | $ | 1.84 | 49.2 | % | |||||||||||||||||||||||||||
Diluted average shares outstanding | 34,168 | 33,821 | 347 | 1.0 | % |
Six Months Ended | |||||||||||
(in thousands) | February 26, 2022 | February 27, 2021 | |||||||||
Net income | $ | 190,805 | $ | 126,491 | |||||||
Interest expense, net | 20,567 | 19,993 | |||||||||
Provision for income taxes | 58,901 | 38,723 | |||||||||
Depreciation | 10,767 | 8,559 | |||||||||
Amortization | 16,187 | 7,181 | |||||||||
EBITDA | 297,227 | 200,947 | |||||||||
Acquisition-related costs | 3,870 | — | |||||||||
Litigation reserves | 4,000 | — | |||||||||
Restructuring expenses | — | 93 | |||||||||
Gain on sale of property, plant and equipment | — | (3,565) | |||||||||
Contingent consideration fair value adjustment | 12,887 | — | |||||||||
Non-operating income | (23) | (217) | |||||||||
Adjusted EBITDA | $ | 317,961 | $ | 197,258 |
Six Months Ended | |||||||||||||||||||||||||||||||||||
(in thousands, except ASP and units) | February 26, 2022 | % of Revenues | February 27, 2021 | % of Revenues | $ Change | % Change | |||||||||||||||||||||||||||||
Net revenues | $ | 1,297,625 | $ | 894,185 | $ | 403,440 | 45.1 | % | |||||||||||||||||||||||||||
Adjusted EBITDA | 212,650 | 16.4 | % | 125,509 | 14.0 | % | 87,141 | 69.4 | % | ||||||||||||||||||||||||||
ASP(1) | 40,529 | 32,229 | 8,300 | 25.8 | % | ||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||||
Unit deliveries | February 26, 2022 | Product Mix(2) | February 27, 2021 | Product Mix(2) | Unit Change | % Change | |||||||||||||||||||||||||||||
Travel trailer | 21,907 | 69.1 | % | 18,036 | 65.1 | % | 3,871 | 21.5 | % | ||||||||||||||||||||||||||
Fifth wheel | 9,818 | 30.9 | % | 9,686 | 34.9 | % | 132 | 1.4 | % | ||||||||||||||||||||||||||
Total towables | 31,725 | 100.0 | % | 27,722 | 100.0 | % | 4,003 | 14.4 | % | ||||||||||||||||||||||||||
February 26, 2022 | February 27, 2021 | Change | % Change | ||||||||||||||||||||||||||||||||
Backlog(3) | |||||||||||||||||||||||||||||||||||
Units | 47,438 | 39,855 | 7,583 | 19.0 | % | ||||||||||||||||||||||||||||||
Dollars | $ | 1,873,159 | $ | 1,206,695 | $ | 666,464 | 55.2 | % | |||||||||||||||||||||||||||
Dealer Inventory | |||||||||||||||||||||||||||||||||||
Units | 21,738 | 15,952 | 5,786 | 36.3 | % |
Six Months Ended | |||||||||||||||||||||||||||||||||||
(in thousands, except ASP and units) | February 26, 2022 | % of Revenues | February 27, 2021 | % of Revenues | $ Change | % Change | |||||||||||||||||||||||||||||
Net revenues | $ | 839,044 | $ | 704,964 | $ | 134,080 | 19.0 | % | |||||||||||||||||||||||||||
Adjusted EBITDA | 96,248 | 11.5 | % | 81,312 | 11.5 | % | 14,936 | 18.4 | % | ||||||||||||||||||||||||||
ASP(1) | 149,366 | 133,550 | 15,816 | 11.8 | % | ||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||||
Unit deliveries | February 26, 2022 | Product Mix(2) | February 27, 2021 | Product Mix(2) | Unit Change | % Change | |||||||||||||||||||||||||||||
Class A | 1,332 | 23.9 | % | 1,302 | 25.0 | % | 30 | 2.3 | % | ||||||||||||||||||||||||||
Class B | 3,088 | 55.5 | % | 2,517 | 48.3 | % | 571 | 22.7 | % | ||||||||||||||||||||||||||
Class C | 1,146 | 20.6 | % | 1,396 | 26.7 | % | (250) | (17.9) | % | ||||||||||||||||||||||||||
Total motorhomes | 5,566 | 100.0 | % | 5,215 | 100.0 | % | 351 | 6.7 | % | ||||||||||||||||||||||||||
February 26, 2022 | February 27, 2021 | Change | % Change | ||||||||||||||||||||||||||||||||
Backlog(3) | |||||||||||||||||||||||||||||||||||
Units | 17,255 | 14,974 | 2,281 | 15.2 | % | ||||||||||||||||||||||||||||||
Dollars | $ | 2,214,470 | $ | 1,816,503 | $ | 397,967 | 21.9 | % | |||||||||||||||||||||||||||
Dealer Inventory | |||||||||||||||||||||||||||||||||||
Units | 3,099 | 2,739 | 360 | 13.1 | % |
Six Months Ended | |||||||||||||||||||||||||||||||||||
(in thousands, except ASP and units) | February 26, 2022 | % of Revenues | February 27, 2021 | % of Revenues | $ Change | % Change | |||||||||||||||||||||||||||||
Net revenues | $ | 176,627 | $ | 26,357 | $ | 150,270 | 570.1 | % | |||||||||||||||||||||||||||
Adjusted EBITDA | 23,523 | 13.3 | % | 1,878 | 7.1 | % | 21,645 | 1,152.6 | % | ||||||||||||||||||||||||||
ASP(1) | 71,849 | 202,973 | (131,124) | (64.6) | % | ||||||||||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||||||||||||||
Unit deliveries | February 26, 2022 | February 27, 2021 | Unit Change | % Change | |||||||||||||||||||||||||||||||
Boats | 2,457 | 130 | 2,327 | 1,790.0 | % | ||||||||||||||||||||||||||||||
February 26, 2022 | February 27, 2021 | Change | % Change | ||||||||||||||||||||||||||||||||
Backlog(2) | |||||||||||||||||||||||||||||||||||
Units | 3,059 | 339 | 2,720 | 802.4 | % | ||||||||||||||||||||||||||||||
Dollars | $ | 277,860 | $ | 72,595 | $ | 205,265 | 282.8 | % | |||||||||||||||||||||||||||
Dealer Inventory | |||||||||||||||||||||||||||||||||||
Units | 2,062 | 180 | 1,882 | 1,045.6 | % |
Six Months Ended | |||||||||||
(in thousands) | February 26, 2022 | February 27, 2021 | |||||||||
Total cash provided by (used in): | |||||||||||
Operating activities | $ | 46,141 | $ | 66,922 | |||||||
Investing activities | (271,781) | (7,365) | |||||||||
Financing activities | (74,091) | (19,117) | |||||||||
Net increase (decrease) in cash and cash equivalents | $ | (299,731) | $ | 40,440 |
Period | Total Number of Shares Purchased(1,2) | Average Price Paid per Share | Number of Shares Purchased as Part of Publicly Announced Plans or Programs(1,2) | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs(3) | |||||||||||||||||||
11/28/21 - 01/01/22 | 148,560 | $ | 70.57 | 141,497 | $ | 180,000 | |||||||||||||||||
01/02/22 - 01/29/22 | 158,373 | 63.14 | 158,373 | 170,000 | |||||||||||||||||||
01/30/22 - 02/26/22 | 294,357 | 67.94 | 294,357 | 150,000 | |||||||||||||||||||
Total | 601,290 | $ | 67.33 | 594,227 | $ | 150,000 |
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document (furnished herewith). | ||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document (furnished herewith). | ||||
101.CAL | Inline XBRL Taxonomy Calculation Linkbase Document (furnished herewith). | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document (furnished herewith). | ||||
101.LAB | Inline XBRL Taxonomy Label Linkbase Document (furnished herewith). | ||||
101.PRE | Inline XBRL Taxonomy Presentation Linkbase Document (furnished herewith). | ||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) (furnished herewith). |
WINNEBAGO INDUSTRIES, INC. | ||||||||||||||
Date: | March 23, 2022 | By: | /s/ Michael J. Happe | |||||||||||
Michael J. Happe | ||||||||||||||
Chief Executive Officer, President | ||||||||||||||
(Principal Executive Officer) | ||||||||||||||
Date: | March 23, 2022 | By: | /s/ Bryan L. Hughes | |||||||||||
Bryan L. Hughes | ||||||||||||||
Chief Financial Officer and Senior Vice President | ||||||||||||||
(Principal Financial and Accounting Officer) |
Date: | March 23, 2022 | /s/ Michael J. Happe | |||||||||
Michael J. Happe | |||||||||||
Chief Executive Officer, President |
Date: | March 23, 2022 | /s/ Bryan L. Hughes | |||||||||
Bryan L. Hughes | |||||||||||
Senior Vice President, Chief Financial Officer |
Date: | March 23, 2022 | /s/ Michael J. Happe | |||||||||
Michael J. Happe | |||||||||||
Chief Executive Officer, President |
Date: | March 23, 2022 | /s/ Bryan L. Hughes | |||||||||
Bryan L. Hughes | |||||||||||
Senior Vice President, Chief Financial Officer |
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Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Feb. 26, 2022 |
Feb. 27, 2021 |
Feb. 26, 2022 |
Feb. 27, 2021 |
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Income Statement [Abstract] | ||||
Net revenues | $ 1,164,731 | $ 839,886 | $ 2,320,471 | $ 1,633,017 |
Cost of goods sold | 948,154 | 683,304 | 1,874,482 | 1,339,431 |
Gross profit | 216,577 | 156,582 | 445,989 | 293,586 |
Selling, general, and administrative expenses | 71,795 | 53,016 | 146,665 | 101,415 |
Amortization | 8,015 | 3,591 | 16,187 | 7,181 |
Total operating expenses | 79,810 | 56,607 | 162,852 | 108,596 |
Operating income | 136,767 | 99,975 | 283,137 | 184,990 |
Interest expense, net | 10,325 | 10,052 | 20,567 | 19,993 |
Non-operating loss (income) | 6,507 | (311) | 12,864 | (217) |
Income before income taxes | 119,935 | 90,234 | 249,706 | 165,214 |
Provision for income taxes | 28,760 | 21,166 | 58,901 | 38,723 |
Net income | $ 91,175 | $ 69,068 | $ 190,805 | $ 126,491 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 2.75 | $ 2.06 | $ 5.75 | $ 3.77 |
Diluted (in dollars per share) | $ 2.69 | $ 2.04 | $ 5.58 | $ 3.74 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 33,098 | 33,533 | 33,210 | 33,571 |
Diluted (in shares) | 33,934 | 33,910 | 34,168 | 33,821 |
Other comprehensive income: | ||||
Amortization of net actuarial loss (net of tax of $3, $3, $6, and $6) | $ 9 | $ 8 | $ 18 | $ 17 |
Comprehensive income | $ 91,184 | $ 69,076 | $ 190,823 | $ 126,508 |
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Feb. 26, 2022 |
Feb. 27, 2021 |
Feb. 26, 2022 |
Feb. 27, 2021 |
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Other comprehensive income: | ||||
Amortization of net actuarial loss, tax | $ 3 | $ 3 | $ 6 | $ 6 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Feb. 26, 2022 |
Aug. 28, 2021 |
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Current assets | ||
Allowance for doubtful accounts | $ 294 | $ 307 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, shares authorized (in shares) | 120,000,000 | 120,000,000 |
Common stock, shares issued (in shares) | 51,776,000 | 51,776,000 |
Common stock, shares outstanding (in shares) | 51,776,000 | 51,776,000 |
Treasury stock, at cost, shares (in shares) | 19,045,000 | 18,713,000 |
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
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Feb. 26, 2022 |
Feb. 27, 2021 |
Feb. 26, 2022 |
Feb. 27, 2021 |
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Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends (in dollars per share) | $ 0.18 | $ 0.12 | $ 0.18 | $ 0.24 |
Basis of Presentation |
6 Months Ended |
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Feb. 26, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Winnebago Industries, Inc. and its wholly owned subsidiaries. Significant intercompany account balances and transactions have been eliminated. The use of the terms "Winnebago Industries," "Winnebago," "we," "our," and "us" in this Quarterly Report on Form 10-Q, unless the context otherwise requires, refers to Winnebago Industries, Inc. and its wholly owned subsidiaries. The interim unaudited consolidated financial statements included herein are prepared pursuant to the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission (“SEC”). The information furnished in these consolidated financial statements includes normal recurring adjustments, unless noted otherwise in the Notes to Consolidated Financial Statements, and reflects all adjustments that are, in management’s opinion, necessary for a fair presentation of such financial statements. The consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). GAAP requires us to make estimates and assumptions that affect amounts reported. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to SEC rules and regulations. The consolidated financial statements included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended August 28, 2021 filed with the SEC. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year ending August 27, 2022. Subsequent Events In preparing the accompanying unaudited consolidated financial statements, we have evaluated subsequent events for potential recognition and disclosure through the date of this filing noting no material subsequent events except for the item noted below: On March 16, 2022, our Board of Directors declared a quarterly cash dividend of $0.18 per share payable on April 27, 2022 to common shareholders of record at the close of business on April 13, 2022. CARES Act The Coronavirus Aid, Relief, and Economic Security ("CARES") Act was signed into law on March 27, 2020 to help alleviate the impact of the COVID-19 pandemic in the U.S. We took advantage of the employer payroll tax deferral offered by the CARES Act, which allowed us to defer the payment of employer payroll taxes for the period from March 27, 2020 to December 31, 2020. The deferred employer payroll tax liability paid in the first six months of Fiscal 2022 was $8.0 million and the liability left to pay as of February 26, 2022 was $8.2 million, which will be paid in December 2022. We also took advantage of a tax credit granted to companies under the CARES Act who continued to pay their employees when operations were fully or partially suspended. The refundable tax credit available through the end of the third quarter of Fiscal 2020 reflected in cost of goods sold on the Consolidated Statements of Income and Comprehensive Income was approximately $4.0 million. The entire amount is expected to be received during calendar year 2022. As of February 26, 2022, $2.3 million remains outstanding within other current assets on the Consolidated Balance Sheets. Recently Adopted Accounting Pronouncements Accounting Standards Update ("ASU") Topic 740, Income Taxes: Simplifying the Accounting for Income Taxes, was adopted in the first quarter of Fiscal 2022. The new standard eliminates certain exceptions to Topic 740's general principles, improves consistent application and simplifies its application. We adopted the new guidance in the first quarter of Fiscal 2022, and there was not a material impact to our financial condition, results of operations or disclosures. Recently Issued Accounting Pronouncements In August 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40) which reduces the number of models used to account for convertible instruments, amends diluted earnings per share ("EPS") calculations for convertible instruments, and amends the requirements for a contract (or embedded derivative) that is potentially settled in an entity's own shares to be classified in equity. Certain disclosure requirements were also added to increase transparency and decision-usefulness regarding a convertible instrument's terms and features. Additionally, the if-converted method for including convertible instruments must be used in diluted EPS as opposed to the treasury stock method. The new guidance is effective for annual reporting periods beginning after December 15, 2021, which is our Fiscal 2023. Early adoption is permitted using either a modified retrospective or full retrospective approach. We expect to adopt the new guidance in the first quarter of Fiscal 2023 and have not yet evaluated the impact the adoption of this guidance will have on our financial condition, results of operations or disclosures; however, the new guidance is expected to change our diluted EPS reporting. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting, which provides practical expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by this guidance apply only to contracts, hedging relationships, and other transactions that reference the London interbank offered rate (“LIBOR”) or another reference rate expected to be discontinued as a result of reference rate reform. This guidance is not applicable to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The guidance can be applied immediately through December 31, 2022. We will adopt this standard when LIBOR is discontinued and do not expect a material impact to our financial condition, results of operations or disclosures based on the current debt portfolio and capital structure.
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Business Combinations |
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Feb. 26, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations | Business Combinations On August 31, 2021, we purchased 100% of the equity interests of Barletta Boat Company, LLC and Three Limes, LLC (collectively, "Barletta"), a manufacturer of high-quality, premium pontoon boats that are sold through a network of independent authorized dealers. The acquisition of Barletta resulted in a newly created Marine reportable segment that includes the Barletta and Chris-Craft operating segments. We acquired Barletta for a purchase price of $286.3 million, including cash payments of $240.1 million, $25.0 million in common stock issued to the sellers (subject to a discount noted below), and contingent consideration from earnout provisions. The common stock fair value included in the purchase price reflects a 12% discount, due to the lack of marketability as these are unregistered shares that have a one-year lockup restriction, which reduced the value of the common stock to $22.0 million. The contingent consideration includes both a potential stock payout as well as a potential cash payment based on achievement of certain financial performance metrics over the next few years. The maximum payout under the earnout is $50.0 million in cash and $15.0 million in stock if all metrics are achieved. The fair value of the earnout as of August 31, 2021 was $24.2 million. The fair value of the earnout as of February 26, 2022 was $37.1 million, of which $13.8 million is included in other current liabilities and $23.3 million is included in other long-term liabilities on the Consolidated Balance Sheets. The total purchase price was allocated to the acquired net tangible and intangible assets of Barletta, based on their preliminary fair values at the date of the acquisition. We expect to finalize the allocation of the purchase price when our valuation of the acquired intangible assets, goodwill, and tax accounts is complete. The following table summarizes the preliminary fair values assigned to the Barletta net assets acquired as of the date of acquisition:
Goodwill from the Barletta acquisition is recognized in our newly created Marine segment. We expect that the full amount of goodwill will be deductible for tax purposes. The intangible assets acquired include a trade name, dealer network, and backlog. The trade name has an indefinite life, while the backlog and dealer network will be amortized on a straight line basis over 10 months and 12 years, respectively. Total transaction costs related to the Barletta acquisition were $3.1 million, of which $2.4 million were expensed during the first quarter of Fiscal 2022 and $0.7 million were expensed during the fourth quarter of Fiscal 2021. Transaction costs are included in selling, general and administrative expenses in the accompanying Consolidated Statements of Income and Comprehensive Income. Pro forma results of operations for this acquisition have not been presented as they were immaterial to the reported results.
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Business Segments |
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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:
Reconciliation of net income to consolidated Adjusted EBITDA is as follows:
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Investments and Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments and Fair Value Measurements | Investments and Fair Value Measurements In determining the fair value of financial assets and liabilities, we utilize market data or other assumptions that we believe market participants would use in pricing the asset or liability in the principal or most advantageous market and adjust for non-performance and/or other risks associated with us as well as counterparties, as appropriate. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1 — Unadjusted quoted prices which are available in active markets for identical assets or liabilities accessible at the measurement date. Level 2 — Inputs other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 — Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis Financial assets and liabilities measured at fair value on a recurring basis are as follows:
Assets that Fund Deferred Compensation Our assets that fund deferred compensation are marketable equity securities measured at fair value using quoted market prices and primarily consist of equity-based mutual funds. These securities, used to fund the Executive Share Option Plan and the Executive Deferred Compensation Plan, are classified as Level 1 as they are traded in an active market for which closing stock prices are readily available. Refer to Note 11 of the Notes 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 for additional information regarding these plans. The proportion of the assets that will fund options which expire within a year are included in prepaid expenses and other assets on the Consolidated Balance Sheets. The remaining assets are classified as non-current and are included in other assets on the Consolidated Balance Sheets. Contingent Consideration Contingent consideration represents the earnout liability related to the Barletta acquisition and is valued using a probability-weighted scenario analysis of projected EBITDA and gross profit results and discounted at a risk-free rate. The contingent consideration is classified as Level 3. Actual EBITDA and gross profit results may differ significantly from those used in the estimate above, which may affect future payments. Changes in future payments will be reflected in future operating results as they occur. The fair value of the earnout liability that will be settled within a year is included in other current liabilities on the Consolidated Balance Sheets. The remaining earnout liability is included in other long-term liabilities on the Consolidated Balance Sheets. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain financial instruments are measured at fair value on a nonrecurring basis. These assets primarily include goodwill, intangible assets, property, plant and equipment, and right-of-use lease assets. These assets were originally recognized at amounts equal to the fair value determined at date of acquisition or purchase. If certain triggering events occur, or if an annual impairment test is required, we will evaluate the non-financial asset for impairment. If an impairment has occurred, the asset will be written down to its current estimated fair value. No impairments were recorded for non-financial assets in the three or six months ended February 26, 2022 or February 27, 2021. Assets and Liabilities Not Measured at Fair Value Certain financial instruments are not measured at fair value but are recorded at carrying amounts approximating fair value based on their short-term nature. These financial instruments include cash and cash equivalents, receivables, accounts payable, other payables, and long-term debt. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. The fair value of our long-term debt was determined using current quoted prices in active markets for our publicly traded debt obligations, which is classified as Level 1 in the fair value hierarchy. See Note 9 for the fair value of our long-term debt.
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consist of the following:
Inventory valuation methods consist of the following: The above inventory value, before reduction for the LIFO reserve, approximates replacement cost at the respective dates.
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Property, Plant, and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment is stated at cost, net of accumulated depreciation, and consists of the following:
Depreciation expense was $5.5 million and $4.4 million for the three months ended February 26, 2022 and February 27, 2021, respectively; and $10.8 million and $8.6 million for the six months ended February 26, 2022 and February 27, 2021, respectively.
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill by reportable segment, with no accumulated impairment losses, for the six months ended February 26, 2022 and February 27, 2021 are as follows:
(1) There was no activity in the six months ended February 27, 2021. (2) The change in marine activity is related to the acquisition of Barletta that occurred on August 31, 2021. See Note 2 to the Consolidated Financial Statements included in Item 1 of Part I of this quarterly report on Form 10-Q. Other intangible assets, net of accumulated amortization, consist of the following:
The weighted average remaining amortization period for intangible assets as of February 26, 2022 was approximately 9 years. Estimated future amortization expense related to finite-lived intangible assets is as follows:
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Product Warranties |
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Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties | Product Warranties We provide certain service and warranty on our products. From time to time, we also voluntarily incur costs for certain warranty-type expenses occurring after the normal warranty period expires to help protect the reputation of our products and maintain the goodwill of our customers. Estimated costs related to product warranty are accrued at the time of sale and are based upon historical warranty and service claims experience. Adjustments are made to accruals as claim data and cost experience becomes available. In addition to the costs associated with the contractual warranty coverage provided on products, we also occasionally incur costs as a result of additional service actions not covered by warranties, including product recalls and customer satisfaction actions. Although we estimate and reserve for the cost of these service actions when probable and estimable, there can be no assurance that expense levels will remain at current levels or such reserves will continue to be adequate. Changes in the product warranty liability are as follows:
(1) Relates to the acquisition of Barletta on August 31, 2021. See Note 2 to the Consolidated Financial Statements in Item 1 of Part I of this quarterly report on Form 10-Q for additional acquisition information.
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Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt | Long-Term Debt Long-term debt consists of the following:
Credit Agreements On July 8, 2020, we closed our private offering (the “Senior Secured Notes Offering”) of $300.0 million aggregate principal amount of 6.25% Senior Secured Notes due 2028 (the “Senior Secured Notes”). The Senior Secured Notes were issued in accordance with an Indenture dated as of July 8, 2020 (the “Indenture”). The Senior Secured Notes will mature on July 15, 2028 unless earlier redeemed or repurchased. Interest on the Senior Secured Notes accrues starting July 8, 2020 and is payable semi-annually in arrears on January 15 and July 15 of each year, which began on January 15, 2021. Debt issuance costs incurred and capitalized are amortized on a straight-line basis over the term of the associated debt agreement. If early principal payments are made on the Senior Secured Notes, a proportional amount of the unamortized debt issuance costs is expensed. As part of the Senior Secured Notes Offering, we capitalized $7.5 million in debt issuance costs that will be amortized over the eight-year term of the agreement. On November 8, 2016, we entered into an asset-based revolving credit agreement ("ABL") and a loan agreement ("Term Loan") with JPMorgan Chase Bank, N.A. ("JPMorgan Chase"), as administrative agent and certain lenders from time to time party thereto. Under the ABL, we have a $192.5 million credit facility that matures on October 22, 2024 (subject to certain factors which may accelerate the maturity date) on a revolving basis, subject to availability under a borrowing base consisting of eligible accounts receivable and eligible inventory. The ABL is available for issuance of letters of credit to a specified limit of $19.3 million. We pay a commitment fee of 0.25% on the average daily amount of the facility available, but unused. We can elect to base the interest rate on various rates plus specific spreads depending on the amount of borrowings outstanding. If drawn, we would pay interest on ABL borrowings at a floating rate based upon a spread between 1.25% and 1.75% plus LIBOR, depending on the usage of the facility during the most recent quarter. Based on current usage, we would pay LIBOR plus 1.25%. Refer to Note 9 of the Notes 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 for additional information regarding these credit agreements. Convertible Notes On November 1, 2019, we issued $300.0 million in aggregate principal amount of 1.5% unsecured convertible senior notes due 2025 (“Convertible Notes”). The net proceeds from the issuance of the Convertible Notes, after deducting the initial purchasers' transaction fees and offering expense payable by us, were approximately $290.2 million. The Convertible Notes bear interest at the annual rate of 1.5%, payable on April 1 and October 1 of each year, beginning on April 1, 2020, and will mature on April 1, 2025, unless earlier converted or repurchased by us. The Convertible Notes will be convertible into cash, shares of our common stock or a combination thereof, at the election of us, at an initial conversion rate of 15.6906 shares of common stock per $1 thousand principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $63.73 per share, as adjusted pursuant to the terms of the indenture governing the Convertible Notes. The Convertible Notes may be converted at any time on or after October 1, 2024, until the close of business on the second scheduled trading day immediately preceding the maturity date. It is our current intent to settle all conversions of the Convertible Notes in cash. Our ability to cash settle may be limited depending on the stock price at the time of conversion. On October 29, 2019 and October 30, 2019, in connection with the offering of the Convertible Notes, we entered into privately negotiated convertible note hedge transactions (collectively, the “Hedge Transactions”) that cover, subject to customary anti-dilution adjustments, the number of shares of our common stock that initially underlie the Convertible Notes. On October 29, 2019 and October 30, 2019, we also entered into privately negotiated warrant transactions (collectively, the “Warrant Transactions” and, together with the Hedge Transactions, the “Call Spread Transactions”), whereby we sold warrants at a higher strike price relating to the same number of shares of our common stock that initially underlie the Convertible Notes, subject to customary anti-dilution adjustments. The Hedge Transactions and the Warrant Transactions are separate transactions, in each case, and are not part of the terms of the Convertible Notes and will not affect any holder’s rights under the Convertible Notes. Holders of the Convertible Notes will not have any rights with respect to the Call Spread Transactions. Refer to Note 9 of the Notes 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 for additional information regarding the Convertible Notes and the Call Spread Transactions. Accounting Treatment of the Convertible Notes and Related Hedge Transactions and Warrant Transactions The Call Spread Transactions were classified as equity. We bifurcated the proceeds from the offering of the Convertible Notes between liability and equity components. On the date of issuance, the liability and equity components were calculated to be approximately $215.0 million and $85.0 million, respectively. The initial $215.0 million liability component was determined based on the fair value of similar debt instruments excluding the conversion feature assuming a hypothetical interest rate of 8%. The initial $85.0 million ($64.1 million net of tax) equity component represents the difference between the fair value of the initial $215.0 million in debt and the $300.0 million of gross proceeds. The related initial debt discount of $85.0 million is being amortized over the life of the Convertible Notes as non-cash interest expense using the effective interest method. In connection with the above-noted transactions, we incurred approximately $9.8 million of offering-related costs. These offering fees were allocated to the liability and equity components in proportion to the allocation of proceeds and accounted for as debt and equity issuance costs, respectively. We allocated $7.0 million of debt issuance costs to the liability component, which were capitalized as deferred financing costs within long-term debt on the Consolidated Balance Sheets. These costs are being amortized as interest expense over the term of the debt using the effective interest method. The remaining $2.8 million of transaction costs allocated to the equity component were recorded as a reduction of the equity component. Fair Value and Future Maturities As of February 26, 2022 and August 28, 2021, the fair value of long-term debt, gross, was $663.5 million and $726.6 million, respectively. Aggregate contractual maturities of debt in future fiscal years are as follows:
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Employee and Retiree Benefits |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee and Retiree Benefits | Employee and Retiree Benefits Deferred compensation liabilities are as follows:
(1) Included in accrued compensation on the Consolidated Balance Sheets.
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Contingent Liabilities and Commitments |
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Feb. 26, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities and Commitments | Contingent Liabilities and Commitments Repurchase Commitments Generally, manufacturers in the same industries as us enter into repurchase agreements with lending institutions which have provided wholesale floorplan financing to dealers. Most dealers are financed on a "floorplan" basis under which a bank or finance company lends the dealer all, or substantially all, of the purchase price, collateralized by a security interest in the units purchased. Our repurchase agreements generally provide that, in the event of default by the dealer on the agreement to pay the lending institution, we will repurchase the financed merchandise. The terms of these agreements, which generally can last up to 24 months, provide that our liability will be the lesser of remaining principal owed by the dealer to the lending institution, or dealer invoice less periodic reductions based on the time since the date of the original invoice. Our liability cannot exceed 100% of the dealer invoice. In certain instances, we also repurchase inventory from dealers due to state law or regulatory requirements that govern voluntary or involuntary relationship terminations. Although laws vary from state to state, some states have laws in place that require manufacturers of recreational vehicles or boats to repurchase current inventory if a dealership exits the business. The total contingent liability on all of our repurchase agreements was approximately $1,452.6 million and $727.7 million at February 26, 2022 and August 28, 2021, respectively. Repurchased sales are not recorded as a revenue transaction, rather the net difference between the original repurchase price and the resale price is recorded against the loss reserve, which is a deduction from gross revenue. Our loss reserve for repurchase commitments contains uncertainties because the calculation requires management to make assumptions and apply judgment regarding a number of factors. Our risk of loss related to these repurchase commitments is significantly reduced by the potential resale value of any products that are subject to repurchase and is spread over numerous dealers and lenders. The aggregate contingent liability related to our repurchase agreements represents all financed dealer inventory at the period-end reporting date subject to a repurchase agreement, net of the greater of periodic reductions per the agreement or dealer principal payments. Based on these repurchase agreements and our historical loss experience, an associated loss reserve is established which is included in accrued expenses: other on the Consolidated Balance Sheets. Our repurchase accrual was $1.2 million and $0.9 million at February 26, 2022 and August 28, 2021, respectively. Repurchase risk is affected by the credit worthiness of our dealer network. We do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions used to establish the loss reserve for repurchase commitments. There was no material activity related to repurchase agreements during the six months ended February 26, 2022 and February 27, 2021. Litigation We are involved in various legal proceedings which are considered ordinary and routine litigation incidental to the business, some of which are covered in whole or in part by insurance. While we believe the ultimate disposition of litigation will not have a material adverse effect on our financial position, results of operations or liquidity, the possibility exists that such litigation may have an impact on our results for a particular reporting period in which litigation effects become probable and reasonably estimable. Though we do not believe there is a reasonable likelihood that there will be a material change related to these matters, litigation is subject to inherent uncertainties and our view of these matters may change in the future.
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue All operating revenue is generated from contracts with customers. Our primary revenue source is generated through the sale of manufactured non-motorized towable units, motorized units and marine units to our independent dealer network (our customers). The following table disaggregates revenue by reportable segment and product category:
(1) Relates to parts, accessories, and services. (2) Relates to specialty vehicle units, parts, accessories, and services. We do not have material contract assets or liabilities. Allowances for uncollectible receivables are established based on historical collection trends, write-off history, consideration of current conditions and expectations for future economic conditions. Concentration of Risk No single dealer organization accounted for more than 10% of net revenue for the six months ended February 26, 2022 or February 27, 2021.
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Stock-Based Compensation |
6 Months Ended |
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Feb. 26, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation On December 11, 2018, our shareholders approved the Winnebago Industries, Inc. 2019 Omnibus Incentive Plan ("2019 Plan") as detailed in our Proxy Statement for the 2018 Annual Meeting of Shareholders. The 2019 Plan allows us to grant or issue non-qualified stock options, incentive stock options, restricted share units, and other equity compensation to key employees and to non-employee directors. The 2019 Plan replaces the 2014 Omnibus Equity, Performance Award, and Incentive Compensation Plan (as amended, the "2014 Plan"). The number of shares of our common stock that may be awarded and issued under the 2019 Plan is 4.1 million shares, plus the shares subject to any awards outstanding under the 2014 Plan and our predecessor plan, the 2004 Incentive Compensation Plan (the “2004 Plan”), on December 11, 2018 that subsequently expire, are forfeited or canceled, or are settled for cash. Until such time, awards under the 2014 Plan and the 2004 Plan, respectively, that were outstanding on December 11, 2018 will continue to be subject to the terms of the 2014 Plan or 2004 Plan, as applicable. Shares remaining available for future awards under the 2014 Plan were not carried over into the 2019 Plan. Stock-based compensation expense was $4.2 million and $4.6 million during the three months ended February 26, 2022 and February 27, 2021, respectively; and $6.9 million and $7.0 million during the six months ended February 26, 2022 and February 27, 2021, respectively. Compensation expense is recognized over the requisite service or performance period of the award. |
Income Taxes |
6 Months Ended |
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Feb. 26, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate was 24.0% and 23.5% for the three months ended February 26, 2022 and February 27, 2021, respectively, and 23.6% and 23.4% for the six months ended February 26, 2022 and February 27, 2021, respectively. The increase in tax rate for the three and six months ended February 26, 2022 compared to the three and six months ended February 27, 2021 was driven primarily by the impact of both consistent tax credits year-over-year over increased income in the current year and a net unfavorable expense in the current year related to stock compensation. We file a U.S. Federal tax return, as well as returns in various international and state jurisdictions. As of February 26, 2022, our Federal returns from Fiscal 2018 to present are subject to review by the Internal Revenue Service. With limited exceptions, state returns from Fiscal 2017 to present continue to be subject to review by state taxing jurisdictions. We are currently under review by certain U.S. state tax authorities for Fiscal 2016 through Fiscal 2019. We believe we have adequately reserved for our exposure to potential additional payments for uncertain tax positions in our liability for unrecognized tax benefits.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic and diluted earnings per share are calculated as follows:
Under the treasury stock method, shares associated with certain anti-dilutive securities have been excluded from the diluted weighted average shares outstanding calculation because the exercise of those options would lead to a net reduction in common shares outstanding or anti-dilution.
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Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Changes in Accumulated Other Comprehensive Income ("AOCI") by component, net of tax, were:
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Basis of Presentation (Policies) |
6 Months Ended |
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Feb. 26, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements include the accounts of Winnebago Industries, Inc. and its wholly owned subsidiaries. Significant intercompany account balances and transactions have been eliminated. The use of the terms "Winnebago Industries," "Winnebago," "we," "our," and "us" in this Quarterly Report on Form 10-Q, unless the context otherwise requires, refers to Winnebago Industries, Inc. and its wholly owned subsidiaries. The interim unaudited consolidated financial statements included herein are prepared pursuant to the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission (“SEC”). The information furnished in these consolidated financial statements includes normal recurring adjustments, unless noted otherwise in the Notes to Consolidated Financial Statements, and reflects all adjustments that are, in management’s opinion, necessary for a fair presentation of such financial statements. The consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). GAAP requires us to make estimates and assumptions that affect amounts reported. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to SEC rules and regulations. The consolidated financial statements included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended August 28, 2021 filed with the SEC. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year ending August 27, 2022.
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Recently Adopted/Issued Accounting Pronouncements | Accounting Standards Update ("ASU") Topic 740, Income Taxes: Simplifying the Accounting for Income Taxes, was adopted in the first quarter of Fiscal 2022. The new standard eliminates certain exceptions to Topic 740's general principles, improves consistent application and simplifies its application. We adopted the new guidance in the first quarter of Fiscal 2022, and there was not a material impact to our financial condition, results of operations or disclosures.In August 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40) which reduces the number of models used to account for convertible instruments, amends diluted earnings per share ("EPS") calculations for convertible instruments, and amends the requirements for a contract (or embedded derivative) that is potentially settled in an entity's own shares to be classified in equity. Certain disclosure requirements were also added to increase transparency and decision-usefulness regarding a convertible instrument's terms and features. Additionally, the if-converted method for including convertible instruments must be used in diluted EPS as opposed to the treasury stock method. The new guidance is effective for annual reporting periods beginning after December 15, 2021, which is our Fiscal 2023. Early adoption is permitted using either a modified retrospective or full retrospective approach. We expect to adopt the new guidance in the first quarter of Fiscal 2023 and have not yet evaluated the impact the adoption of this guidance will have on our financial condition, results of operations or disclosures; however, the new guidance is expected to change our diluted EPS reporting. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of Effects of Reference Rate Reform on Financial Reporting, which provides practical expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by this guidance apply only to contracts, hedging relationships, and other transactions that reference the London interbank offered rate (“LIBOR”) or another reference rate expected to be discontinued as a result of reference rate reform. This guidance is not applicable to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. The guidance can be applied immediately through December 31, 2022. We will adopt this standard when LIBOR is discontinued and do not expect a material impact to our financial condition, results of operations or disclosures based on the current debt portfolio and capital structure.
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Fair Value Measurements | Assets that Fund Deferred Compensation Our assets that fund deferred compensation are marketable equity securities measured at fair value using quoted market prices and primarily consist of equity-based mutual funds. These securities, used to fund the Executive Share Option Plan and the Executive Deferred Compensation Plan, are classified as Level 1 as they are traded in an active market for which closing stock prices are readily available. Refer to Note 11 of the Notes 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 for additional information regarding these plans. The proportion of the assets that will fund options which expire within a year are included in prepaid expenses and other assets on the Consolidated Balance Sheets. The remaining assets are classified as non-current and are included in other assets on the Consolidated Balance Sheets. Contingent Consideration Contingent consideration represents the earnout liability related to the Barletta acquisition and is valued using a probability-weighted scenario analysis of projected EBITDA and gross profit results and discounted at a risk-free rate. The contingent consideration is classified as Level 3. Actual EBITDA and gross profit results may differ significantly from those used in the estimate above, which may affect future payments. Changes in future payments will be reflected in future operating results as they occur. The fair value of the earnout liability that will be settled within a year is included in other current liabilities on the Consolidated Balance Sheets. The remaining earnout liability is included in other long-term liabilities on the Consolidated Balance Sheets. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain financial instruments are measured at fair value on a nonrecurring basis. These assets primarily include goodwill, intangible assets, property, plant and equipment, and right-of-use lease assets. These assets were originally recognized at amounts equal to the fair value determined at date of acquisition or purchase. If certain triggering events occur, or if an annual impairment test is required, we will evaluate the non-financial asset for impairment. If an impairment has occurred, the asset will be written down to its current estimated fair value. No impairments were recorded for non-financial assets in the three or six months ended February 26, 2022 or February 27, 2021. Assets and Liabilities Not Measured at Fair ValueCertain financial instruments are not measured at fair value but are recorded at carrying amounts approximating fair value based on their short-term nature. These financial instruments include cash and cash equivalents, receivables, accounts payable, other payables, and long-term debt. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. The fair value of our long-term debt was determined using current quoted prices in active markets for our publicly traded debt obligations, which is classified as Level 1 in the fair value hierarchy.
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Repurchase Commitments | Generally, manufacturers in the same industries as us enter into repurchase agreements with lending institutions which have provided wholesale floorplan financing to dealers. Most dealers are financed on a "floorplan" basis under which a bank or finance company lends the dealer all, or substantially all, of the purchase price, collateralized by a security interest in the units purchased. Our repurchase agreements generally provide that, in the event of default by the dealer on the agreement to pay the lending institution, we will repurchase the financed merchandise. The terms of these agreements, which generally can last up to 24 months, provide that our liability will be the lesser of remaining principal owed by the dealer to the lending institution, or dealer invoice less periodic reductions based on the time since the date of the original invoice. Our liability cannot exceed 100% of the dealer invoice. In certain instances, we also repurchase inventory from dealers due to state law or regulatory requirements that govern voluntary or involuntary relationship terminations. Although laws vary from state to state, some states have laws in place that require manufacturers of recreational vehicles or boats to repurchase current inventory if a dealership exits the business. The total contingent liability on all of our repurchase agreements was approximately $1,452.6 million and $727.7 million at February 26, 2022 and August 28, 2021, respectively. Repurchased sales are not recorded as a revenue transaction, rather the net difference between the original repurchase price and the resale price is recorded against the loss reserve, which is a deduction from gross revenue. Our loss reserve for repurchase commitments contains uncertainties because the calculation requires management to make assumptions and apply judgment regarding a number of factors. Our risk of loss related to these repurchase commitments is significantly reduced by the potential resale value of any products that are subject to repurchase and is spread over numerous dealers and lenders. The aggregate contingent liability related to our repurchase agreements represents all financed dealer inventory at the period-end reporting date subject to a repurchase agreement, net of the greater of periodic reductions per the agreement or dealer principal payments. Based on these repurchase agreements and our historical loss experience, an associated loss reserve is established which is included in accrued expenses: other on the Consolidated Balance Sheets. Our repurchase accrual was $1.2 million and $0.9 million at February 26, 2022 and August 28, 2021, respectively. Repurchase risk is affected by the credit worthiness of our dealer network. We do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions used to establish the loss reserve for repurchase commitments.
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Revenue | We do not have material contract assets or liabilities. Allowances for uncollectible receivables are established based on historical collection trends, write-off history, consideration of current conditions and expectations for future economic conditions. |
Business Combinations (Tables) |
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Schedule of Preliminary Fair Values Assigned | The following table summarizes the preliminary fair values assigned to the Barletta net assets acquired as of the date of acquisition:
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Business Segments (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Financial information by reportable segment is as follows:
Reconciliation of net income to consolidated Adjusted EBITDA is as follows:
|
Investments and Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 26, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis are as follows:
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Fair Value, Liabilities Measured on Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis are as follows:
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Inventories (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 26, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventories consist of the following:
Inventory valuation methods consist of the following:
|
Property, Plant, and Equipment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 26, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant, and Equipment | Property, plant, and equipment is stated at cost, net of accumulated depreciation, and consists of the following:
|
Goodwill and Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 26, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill by reportable segment, with no accumulated impairment losses, for the six months ended February 26, 2022 and February 27, 2021 are as follows:
(1) There was no activity in the six months ended February 27, 2021. (2) The change in marine activity is related to the acquisition of Barletta that occurred on August 31, 2021. See Note 2 to the Consolidated Financial Statements included in Item 1 of Part I of this quarterly report on Form 10-Q.
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Schedule of Other Intangible Assets | Other intangible assets, net of accumulated amortization, consist of the following:
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Schedule of Remaining Estimated Aggregate Annual Amortization Expense | Estimated future amortization expense related to finite-lived intangible assets is as follows:
|
Product Warranties (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 26, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Product Warranty Liability | Changes in the product warranty liability are as follows:
(1) Relates to the acquisition of Barletta on August 31, 2021. See Note 2 to the Consolidated Financial Statements in Item 1 of Part I of this quarterly report on Form 10-Q for additional acquisition information.
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Long-Term Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 26, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Long-term debt consists of the following:
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Schedule of Maturities of Long-term Debt | Aggregate contractual maturities of debt in future fiscal years are as follows:
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Employee and Retiree Benefits (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 26, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Compensation Liabilities | Deferred compensation liabilities are as follows:
(1) Included in accrued compensation on the Consolidated Balance Sheets.
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Revenue (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 26, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table disaggregates revenue by reportable segment and product category:
(1) Relates to parts, accessories, and services. (2) Relates to specialty vehicle units, parts, accessories, and services.
|
Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Income Per Share | Basic and diluted earnings per share are calculated as follows:
|
Accumulated Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 26, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income By Component | Changes in Accumulated Other Comprehensive Income ("AOCI") by component, net of tax, were:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of AOCI, net of tax, were:
|
Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 16, 2022 |
Feb. 26, 2022 |
Feb. 27, 2021 |
Feb. 26, 2022 |
Feb. 27, 2021 |
Dec. 31, 2020 |
May 30, 2020 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Common stock dividends (in dollars per share) | $ 0.18 | $ 0.12 | $ 0.18 | $ 0.24 | |||
Deferred FICA liability | $ 8.2 | $ 8.2 | $ 8.0 | ||||
Refundable tax credit | $ 4.0 | ||||||
Refundable tax credit, outstanding | $ 2.3 | $ 2.3 | |||||
Subsequent Event | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Common stock dividends (in dollars per share) | $ 0.18 |
Business Combinations - Schedule of Preliminary Fair Values Assigned (Details) - USD ($) $ in Thousands |
Feb. 26, 2022 |
Aug. 31, 2021 |
Aug. 28, 2021 |
Feb. 27, 2021 |
Aug. 29, 2020 |
---|---|---|---|---|---|
Business Acquisition [Line Items] | |||||
Goodwill | $ 484,176 | $ 348,058 | $ 348,058 | $ 348,058 | |
Barletta | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 11,903 | ||||
Other current assets | 24,564 | ||||
Property, plant, and equipment | 17,250 | ||||
Goodwill | 136,118 | ||||
Other intangible assets | 111,400 | ||||
Total assets acquired | 301,235 | ||||
Accounts payable | 7,181 | ||||
Product warranties | 4,656 | ||||
Other current liabilities | 3,146 | ||||
Total liabilities assumed | 14,983 | ||||
Total purchase price | $ 286,252 |
Business Segments (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Feb. 26, 2022
USD ($)
|
Feb. 27, 2021
USD ($)
|
Feb. 26, 2022
USD ($)
segment
|
Feb. 27, 2021
USD ($)
|
Aug. 28, 2021
USD ($)
|
|
Segment Reporting Information [Line Items] | |||||
Number of operating segments | segment | 7 | ||||
Number of reportable segments | segment | 3 | ||||
Net Revenues | $ 1,164,731 | $ 839,886 | $ 2,320,471 | $ 1,633,017 | |
Adjusted EBITDA | 150,729 | 107,965 | 317,961 | 197,258 | |
Capital Expenditures | 20,211 | 6,231 | 43,426 | 14,920 | |
Assets | 2,309,433 | 2,309,433 | $ 2,062,567 | ||
Net income | 91,175 | 69,068 | 190,805 | 126,491 | |
Interest expense, net | 10,325 | 10,052 | 20,567 | 19,993 | |
Provision for income taxes | 28,760 | 21,166 | 58,901 | 38,723 | |
Depreciation | 5,461 | 4,399 | 10,767 | 8,559 | |
Amortization | 8,015 | 3,591 | 16,187 | 7,181 | |
EBITDA | 143,736 | 108,276 | 297,227 | 200,947 | |
Acquisition-related costs | 486 | 0 | 3,870 | 0 | |
Litigation reserves | 0 | 0 | 4,000 | 0 | |
Restructuring expenses | 0 | 0 | 0 | 93 | |
Gain on sale of property, plant and equipment | 0 | 0 | 0 | (3,565) | |
Contingent consideration fair value adjustment | 6,517 | 0 | 12,887 | 0 | |
Non-operating income | (10) | (311) | (23) | (217) | |
Operating Segments | Towable | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenues | 646,601 | 439,284 | 1,297,625 | 894,185 | |
Adjusted EBITDA | 100,573 | 62,366 | 212,650 | 125,509 | |
Capital Expenditures | 10,181 | 2,714 | 21,339 | 6,851 | |
Assets | 850,244 | 850,244 | 790,257 | ||
Operating Segments | Motorhome | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenues | 417,565 | 382,575 | 839,044 | 704,964 | |
Adjusted EBITDA | 46,095 | 50,969 | 96,248 | 81,312 | |
Capital Expenditures | 7,875 | 3,268 | 15,626 | 7,271 | |
Assets | 910,496 | 910,496 | 728,060 | ||
Operating Segments | Marine | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenues | 97,309 | 14,463 | 176,627 | 26,357 | |
Adjusted EBITDA | 12,953 | 1,024 | 23,523 | 1,878 | |
Capital Expenditures | 1,912 | 249 | 2,540 | 798 | |
Assets | 402,395 | 402,395 | 102,901 | ||
Corporate / All Other | |||||
Segment Reporting Information [Line Items] | |||||
Net Revenues | 3,256 | 3,564 | 7,175 | 7,511 | |
Adjusted EBITDA | (8,892) | (6,394) | (14,460) | (11,441) | |
Capital Expenditures | 243 | $ 0 | 3,921 | $ 0 | |
Assets | $ 146,298 | $ 146,298 | $ 441,349 |
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands |
Feb. 26, 2022 |
Aug. 28, 2021 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 14,438 | $ 12,243 |
Work-in-process | 187,826 | 184,611 |
Raw materials | 308,926 | 183,583 |
Total | 511,190 | 380,437 |
Less: Excess of FIFO over LIFO cost | 41,736 | 38,964 |
Inventories, net | $ 469,454 | $ 341,473 |
Inventories - Inventory Valuation Methods (Details) - USD ($) $ in Thousands |
Feb. 26, 2022 |
Aug. 28, 2021 |
---|---|---|
Inventory Disclosure [Abstract] | ||
LIFO basis | $ 202,162 | $ 139,544 |
First-in, first-out basis | 309,028 | 240,893 |
Total | $ 511,190 | $ 380,437 |
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) |
6 Months Ended | |
---|---|---|
Feb. 26, 2022 |
Feb. 27, 2021 |
|
Goodwill [Roll Forward] | ||
Beginning balance | $ 348,058,000 | $ 348,058,000 |
Acquisition of Barletta | 136,118,000 | |
Ending balance | 484,176,000 | 348,058,000 |
Goodwill activity | 0 | |
Towable | ||
Goodwill [Roll Forward] | ||
Beginning balance | 244,684,000 | 244,684,000 |
Acquisition of Barletta | 0 | |
Ending balance | 244,684,000 | 244,684,000 |
Motorhome | ||
Goodwill [Roll Forward] | ||
Beginning balance | 73,127,000 | 73,127,000 |
Acquisition of Barletta | 0 | |
Ending balance | 73,127,000 | 73,127,000 |
Marine | ||
Goodwill [Roll Forward] | ||
Beginning balance | 30,247,000 | 30,247,000 |
Acquisition of Barletta | 136,118,000 | |
Ending balance | $ 166,365,000 | $ 30,247,000 |
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands |
Feb. 26, 2022 |
Aug. 28, 2021 |
---|---|---|
Schedule of Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 581,205 | $ 469,805 |
Accumulated Amortization | 95,586 | 79,398 |
Net Carrying Value | 485,619 | 390,407 |
Dealer networks | ||
Schedule of Intangible Assets [Line Items] | ||
Gross Carrying Amount | 179,981 | 159,581 |
Accumulated Amortization | 53,084 | 45,652 |
Net Carrying Value | 126,897 | 113,929 |
Backlog | ||
Schedule of Intangible Assets [Line Items] | ||
Gross Carrying Amount | 42,327 | 28,327 |
Accumulated Amortization | 36,727 | 28,327 |
Net Carrying Value | 5,600 | 0 |
Non-compete agreements | ||
Schedule of Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,647 | 6,647 |
Accumulated Amortization | 5,775 | 5,419 |
Net Carrying Value | 872 | 1,228 |
Trade names | ||
Schedule of Intangible Assets [Line Items] | ||
Gross Carrying Amount | 352,250 | 275,250 |
Net Carrying Value | $ 352,250 | $ 275,250 |
Goodwill and Intangible Assets - Narrative (Details) |
6 Months Ended |
---|---|
Feb. 26, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Weighted average remaining amortization period (in years) | 9 years |
Goodwill and Intangible Assets - Future Amortization of Intangible Assets (Details) $ in Thousands |
Feb. 26, 2022
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of Fiscal 2022 | $ 13,232 |
Fiscal 2023 | 15,226 |
Fiscal 2024 | 15,124 |
Fiscal 2025 | 14,919 |
Fiscal 2026 | 14,865 |
Fiscal 2027 | 14,865 |
Thereafter | 45,138 |
Total amortization expense remaining | $ 133,369 |
Product Warranties (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Feb. 26, 2022 |
Feb. 27, 2021 |
Feb. 26, 2022 |
Feb. 27, 2021 |
|
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Balance at beginning of period | $ 102,424 | $ 70,502 | $ 91,222 | $ 64,031 |
Business acquisition | 0 | 0 | 4,656 | 0 |
Provision | 31,163 | 20,227 | 57,222 | 41,930 |
Claims paid | (19,769) | (14,689) | (39,282) | (29,921) |
Balance at end of period | $ 113,818 | $ 76,040 | $ 113,818 | $ 76,040 |
Long-Term Debt - Components of Long-Term Debt (Details) - USD ($) $ in Thousands |
Feb. 26, 2022 |
Aug. 28, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 600,000 | $ 600,000 |
Convertible Notes unamortized interest discount | (53,040) | (60,366) |
Debt issuance costs, net | (9,970) | (11,075) |
Long-term debt, net | 536,990 | 528,559 |
ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 0 | 0 |
Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 300,000 | 300,000 |
Convertible Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 300,000 | $ 300,000 |
Long-Term Debt - Credit Agreements Narrative (Details) - USD ($) |
Jul. 08, 2020 |
Nov. 08, 2016 |
---|---|---|
Senior Secured Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt amount | $ 300,000,000 | |
Interest rate, stated percentage | 6.25% | |
Debt issuance costs | $ 7,500,000 | |
Debt term | 8 years | |
ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility amount | $ 192,500,000 | |
Line of credit facility, commitment fee percentage | 0.25% | |
ABL Credit Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.25% | |
ABL Credit Facility | Maximum | ||
Debt Instrument [Line Items] | ||
Debt instrument, basis spread on variable rate | 1.75% | |
ABL Credit Facility | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Debt amount | $ 19,300,000 |
Long-Term Debt - Convertible Notes Narrative (Details) - USD ($) |
Nov. 01, 2019 |
Feb. 26, 2022 |
Aug. 28, 2021 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Offering-related costs | $ 9,970,000 | $ 11,075,000 | |
Call Spread Transactions | |||
Debt Instrument [Line Items] | |||
Equity component of issuance | 85,000,000 | ||
Equity component of issuance, net of tax | 64,100,000 | ||
Offering-related costs | 9,800,000 | ||
Deferred offering costs classified as liability | 7,000,000 | ||
Deferred offering costs classified as equity | 2,800,000 | ||
Convertible Notes | |||
Debt Instrument [Line Items] | |||
Debt amount | $ 300,000,000 | 300,000,000 | |
Interest rate, stated percentage | 1.50% | ||
Proceeds from issuance of notes | $ 290,200,000 | ||
Conversion rate (in shares) | 1.56906% | ||
Conversion price (in dollars per share) | $ 63.73 | ||
Convertible Notes | Call Spread Transactions | |||
Debt Instrument [Line Items] | |||
Debt amount | $ 215,000,000 | ||
Interest rate, stated percentage | 8.00% |
Long-Term Debt - Long-Term Debt Contractual Maturities (Details) - USD ($) $ in Thousands |
Feb. 26, 2022 |
Aug. 28, 2021 |
---|---|---|
Debt Disclosure [Abstract] | ||
Fair value of long-term debt, gross | $ 663,500 | $ 726,600 |
Remainder of Fiscal 2022 | 0 | |
Fiscal 2023 | 0 | |
Fiscal 2024 | 0 | |
Fiscal 2025 | 300,000 | |
Fiscal 2026 | 0 | |
Fiscal 2027 | 0 | |
Thereafter | 300,000 | |
Total Senior Secured Notes and Convertible Notes | $ 600,000 | $ 600,000 |
Employee and Retiree Benefits (Details) - USD ($) $ in Thousands |
Feb. 26, 2022 |
Aug. 28, 2021 |
---|---|---|
Retirement Benefits [Abstract] | ||
Non-qualified deferred compensation | $ 9,015 | $ 9,731 |
Supplemental executive retirement plan | 1,623 | 1,615 |
Executive deferred compensation plan | 1,520 | 1,029 |
Total deferred compensation benefits | 12,158 | 12,375 |
Less current portion | 2,733 | 2,825 |
Deferred compensation benefits, net of current portion | $ 9,425 | $ 9,550 |
Contingent Liabilities and Commitments (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Feb. 26, 2022 |
Aug. 28, 2021 |
|
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Repurchase agreement term | 24 months | |
Percentage of dealer invoice that liability cannot exceed | 100.00% | |
Accrued loss on repurchases | $ 1.2 | $ 0.9 |
Obligation to Repurchase from Dealers | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Contingent liability on repurchase agreements | $ 1,452.6 | $ 727.7 |
Stock-Based Compensation (Details) - USD ($) $ in Thousands, shares in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Feb. 26, 2022 |
Feb. 27, 2021 |
Feb. 26, 2022 |
Feb. 27, 2021 |
Dec. 11, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $ 4,200 | $ 4,600 | $ 6,891 | $ 6,981 | |
Incentive Compensation Plan 2019 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of awards issued under the plan (in shares) | 4.1 |
Income Taxes (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Feb. 26, 2022 |
Feb. 27, 2021 |
Feb. 26, 2022 |
Feb. 27, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 24.00% | 23.50% | 23.60% | 23.40% |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Feb. 26, 2022 |
Feb. 27, 2021 |
Feb. 26, 2022 |
Feb. 27, 2021 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 91,175 | $ 69,068 | $ 190,805 | $ 126,491 |
Weighted average common shares outstanding (in shares) | 33,098,000 | 33,533,000 | 33,210,000 | 33,571,000 |
Dilutive impact of stock compensation awards (in shares) | 458,000 | 270,000 | 511,000 | 250,000 |
Dilutive impact of convertible notes (in shares) | 378,000 | 107,000 | 447,000 | 0 |
Weighted average common shares outstanding, assuming dilution (in shares) | 33,934,000 | 33,910,000 | 34,168,000 | 33,821,000 |
Anti-dilutive securities excluded from weighted average common shares outstanding, assuming dilution (in shares) | 40,000 | 0 | 112,000 | 53,000 |
Basic earnings per common share (in dollars per share) | $ 2.75 | $ 2.06 | $ 5.75 | $ 3.77 |
Diluted earnings per common share (in dollars per share) | $ 2.69 | $ 2.04 | $ 5.58 | $ 3.74 |
Accumulated Other Comprehensive Income (Loss) - Changes in AOCI by Component (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Feb. 26, 2022 |
Feb. 27, 2021 |
Feb. 26, 2022 |
Feb. 27, 2021 |
|
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 1,159,258 | $ 871,558 | $ 1,056,943 | $ 827,466 |
Ending balance | 1,208,987 | 942,364 | 1,208,987 | 942,364 |
Defined Benefit Pension Items | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (482) | (517) | (491) | (526) |
Amounts reclassified from AOCI | 9 | 8 | 18 | 17 |
Net current-period OCI | 9 | 8 | 18 | 17 |
Ending balance | $ (473) | $ (509) | $ (473) | $ (509) |
Accumulated Other Comprehensive Income (Loss) - Reclassification from AOCI (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Feb. 26, 2022 |
Feb. 27, 2021 |
Feb. 26, 2022 |
Feb. 27, 2021 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling, general, and administrative expenses | $ 71,795 | $ 53,016 | $ 146,665 | $ 101,415 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of net actuarial loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Selling, general, and administrative expenses | $ 9 | $ 8 | $ 18 | $ 17 |
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