XML 22 R11.htm IDEA: XBRL DOCUMENT v3.22.2
Business Segments
 9 Months Ended
May 28, 2022
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:
Three Months EndedNine Months Ended
(in thousands)May 28,
2022		May 29,
2021		May 28,
2022		May 29,
2021
Net Revenues
Towable$805,567 $555,749 $2,103,192 $1,449,934 
Motorhome516,345 385,257 1,355,389 1,090,221 
Marine126,548 17,170 303,175 43,527 
Corporate / All Other9,678 2,561 16,853 10,072 
Consolidated$1,458,138 $960,737 $3,778,609 $2,593,754 
Adjusted EBITDA
Towable$117,767 $80,130 $330,417 $205,639 
Motorhome64,388 37,467 160,636 118,779 
Marine19,813 1,624 43,336 3,502 
Corporate / All Other(10,247)(9,447)(24,707)(20,888)
Consolidated$191,721 $109,774 $509,682 $307,032 
Capital Expenditures
Towable$12,621 $4,639 $33,960 $11,490 
Motorhome570 2,976 16,196 10,247 
Marine6,041 1,061 8,581 1,859 
Corporate / All Other570 — 4,491 — 
Consolidated$19,802 $8,676 $63,228 $23,596 

(in thousands)May 28,
2022		August 28,
2021
Assets
Towable$913,892 $790,257 
Motorhome857,636 728,060 
Marine404,137 102,901 
Corporate / All Other251,469 441,349 
Consolidated$2,427,134 $2,062,567 
Reconciliation of net income to consolidated Adjusted EBITDA is as follows:
Three Months EndedNine Months Ended
(in thousands)May 28, 2022May 29, 2021May 28, 2022May 29, 2021
Net income$117,222 $71,295 $308,027 $197,786 
Interest expense, net10,511 10,229 31,078 30,222 
Provision for income taxes37,326 21,005 96,227 59,728 
Depreciation6,264 4,917 17,031 13,476 
Amortization8,016 3,590 24,203 10,771 
EBITDA179,339 111,036 476,566 311,983 
Acquisition-related costs724 — 4,594 — 
Litigation reserves— — 4,000 — 
Restructuring expenses— 19 — 112 
Gain on sale of property, plant and equipment— (1,188)— (4,753)
Contingent consideration fair value adjustment11,830 — 24,717 — 
Non-operating income(172)(93)(195)(310)
Adjusted EBITDA$191,721 $109,774 $509,682 $307,032