Employee and Retiree Benefits

12 Months Ended

Aug. 26, 2023

Retirement Benefits [Abstract]

Employee and Retiree Benefits

Employee and Retiree Benefits

Deferred compensation benefits are as follows:

(in millions)	August 26, 2023		August 27, 2022
Non-qualified deferred compensation	$	6.7	$	7.9
Supplemental executive retirement plan	1.2		1.4
Executive deferred compensation plan	1.8		1.4
Total deferred compensation benefits	9.7		10.7
Less current portion(1)	1.8		2.6
Deferred compensation benefits, net of current portion	$	7.9	$	8.1

(1)    Included in accrued compensation on the Consolidated Balance Sheets.

Deferred Compensation Benefits

Non-Qualified Deferred Compensation

We have a non-qualified deferred compensation program which permitted key employees to annually elect to defer a portion of their compensation until their retirement. The plan has been closed to any additional deferrals since January 2001. The retirement benefit to be provided is based upon the amount of compensation deferred and the age of the individual at the time of the contracted deferral. An individual generally vests at age 55 and 5 years of participation under the plan. For deferrals prior to December 1992, vesting occurs at the later of age 55 and 5 years of service from first deferral or 20 years of service. Deferred compensation expense was $0.5 million, $0.6 million, and $0.8 million in Fiscal 2023, 2022, and 2021, respectively.

Supplemental Executive Retirement Plan ("SERP")

The primary purpose of this plan was to provide our officers and managers with supplemental retirement income for a period of 15 years after retirement. We have not offered this plan on a continuing basis to members of management since 1998. The plan was funded with individual whole life insurance policies (split dollar program) owned by the named insured officer or manager. We initially paid the life insurance premiums on the life of the individual, and the individual would receive life insurance and supplemental cash payments during the 15 years following retirement. In October 2008, the plan was amended as a result of changes in the tax and accounting regulations and rising administrative costs. Under the redesigned SERP, the underlying life insurance policies previously owned by the insured individual became company-owned life insurance ("COLI") by a release of all interests by the participant and assignment to Winnebago Industries as a prerequisite to participate in the SERP and transition from the Split Dollar Program. This program remains closed to new employee participation.

To assist in funding the deferred compensation and SERP liabilities, we have invested in COLI policies. The cash surrender value of these policies is presented in investment in life insurance in the Consolidated Balance Sheets and consists of the following:

(in millions)	August 26, 2023		August 27, 2022
Cash value	$	68.1	$	67.2
Borrowings	(38.8)		(38.6)
Investment in life insurance	$	29.3	$	28.6

Executive Deferred Compensation Plan

In December 2006, we adopted the Winnebago Industries, Inc. Executive Deferred Compensation Plan (the "Executive Deferred Compensation Plan"). Under the Executive Deferred Compensation Plan, corporate officers and certain key employees may annually choose to defer up to 50% of their salary and up to 100% of their cash incentive awards. The assets are presented as other long-term assets in the Consolidated Balance Sheets. Such assets on August 26, 2023 and August 27, 2022 were $1.8 million and $1.4 million, respectively.

Profit Sharing Plan

We have a qualified profit sharing and contributory 401(k) plan for eligible employees. The plan provides matching contributions made by Winnebago Industries and discretionary contributions as approved by the Board of Directors. Matching contributions to the plan for Fiscal 2023, 2022, and 2021 were $13.4 million, $12.0 million, and $5.6 million, respectively. No discretionary contributions were approved in Fiscal 2023. Discretionary contributions of $12.1 million and $6.1 million were approved in Fiscal 2022 and Fiscal 2021, respectively.