Segment Information

12 Months Ended

Oct. 01, 2016

Segment Reporting [Abstract]

Segment Information

12. Segment Information

We manage our business in two operating segments, which are also our reportable segments. The Bus segment includes the manufacturing and assembly of school buses to be sold to a variety of customers across the United States, Canada and in international markets. The Parts segment consists primarily of the purchase of parts from third parties to be sold to dealers within the Company’s network. Financial information is reported on the basis that it is used internally by the chief operating decision maker (the “CODM”) in evaluating segment performance and deciding how to allocate resources. The President and Chief Executive Officer of the Company has been identified as the CODM. Management evaluates the segments based primarily upon revenues and gross profit. A measure of assets is not applicable, as segment assets are not regularly reviewed by the CODM for evaluating performance or allocating resources. The tables below present segment net sales and gross profit for the fiscal years presented:

Net sales

(in thousands of dollars)	2016		2015		2014
Bus	$	876,087	$	861,665	$	801,837
Parts	55,923		57,463		53,898
Segment net sales	$	932,010	$	919,128	$	855,735

Gross profit

(in thousands of dollars)	2016		2015		2014
Bus	$	108,232	$	99,341	$	89,315
Parts	21,124		21,054		20,058
Segment gross profit	$	129,356	$	120,395	$	109,373

The following table is a reconciliation of segment gross profit to consolidated income before income taxes for the fiscal years presented:

(in thousands of dollars)	2016			2015			2014
Segment gross profit	$	129,356		$	120,395		$	109,373
Adjustments:
Selling, general and administrative expenses	(102,711		)	(84,561		)	(91,445		)
Interest expense	(16,412		)	(19,078		)	(6,156		)
Interest income	133			113			102
Other (expense) income, net	(26		)	—			72
Income before income taxes	$	10,340		$	16,869		$	11,946

Sales are attributable to geographic areas based on customer location and were as follows for the fiscal years presented:

(in thousands of dollars)	2016		2015		2014
United States	$	838,418	$	861,258	760,912
Canada	83,669		49,847		76,275
Rest of world	9,923		8,023		18,548
Total net sales	$	932,010	$	919,128	855,735