Blue Bird (BLBD) 10-Q 23 May 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Apr. 02, 2016	May. 20, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Blue Bird Corp
Entity Central Index Key	1,589,526
Current Fiscal Year End Date	--10-01
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Apr. 2, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		20,995,709

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 02, 2016	Oct. 03, 2015
Current assets
Cash and cash equivalents	$ 28,615	$ 52,861
Accounts receivable, net	6,067	13,746
Inventories	92,858	49,180
Other current assets	4,987	3,960
Deferred tax asset	8,166	9,150
Total current assets	140,693	128,897
Property, plant and equipment, net	29,376	28,933
Goodwill	18,825	18,825
Intangible assets, net	59,444	60,378
Equity investment in affiliate	13,303	12,505
Deferred tax asset	15,159	15,466
Other assets	2,559	1,721
Total assets	279,359	266,725
Current liabilities
Accounts payable	97,494	79,333
Accrued warranty costs—current portion	6,875	7,418
Accrued expenses	20,836	22,980
Deferred warranty income—current portion	4,970	4,862
Other current liabilities	8,935	7,072
Current portion of senior term debt	11,750	11,750
Total current liabilities	150,860	133,415
Long-term liabilities
Long-term debt	170,900	175,418
Accrued warranty costs	9,893	10,243
Deferred warranty income	9,090	9,283
Other liabilities	13,918	13,169
Accrued pension liability	43,853	46,427
Total long-term liabilities	$ 247,654	$ 254,540
Guarantees, commitments and contingencies (Note 6)
Stockholder’s deficit
Preferred stock, $.0001 par value, 10,000,000 shares authorized 500,000 issued and liquidation preference of $50,000	$ 50,000	$ 50,000
Common stock, $0.0001 par value, 100,000,000 shares authorized, 20,992,033 and 20,874,882 issued and outstanding at April 2, 2016 and October 3, 2015, respectively	2	2
Additional paid-in capital	17,565	15,887
Accumulated deficit	(136,288)	(135,345)
Accumulated other comprehensive loss	(50,434)	(51,774)
Total stockholder’s deficit	(119,155)	(121,230)
Total liabilities and stockholder’s deficit	$ 279,359	$ 266,725

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Apr. 02, 2016	Oct. 03, 2015
Statement of Financial Position [Abstract]
Preferred Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	500,000	500,000
Preferred Stock, Liquidation Preference, Value	$ 50,000,000	$ 50,000,000
Common Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares Issued	20,992,033	20,874,882
Common Stock, Shares Outstanding	20,992,033	20,874,882

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Apr. 02, 2016	Apr. 04, 2015
Income Statement [Abstract]
Net sales	$ 191,208	$ 183,018	$ 322,541	$ 348,851
Cost of goods sold	166,094	159,988	278,674	306,343
Gross profit	25,114	23,030	43,867	42,508
Operating expenses
Selling, general and administrative expenses	18,745	33,950	35,824	49,409
Operating profit (loss)	6,369	(10,920)	8,043	(6,901)
Interest expense	(4,453)	(4,761)	(8,696)	(9,896)
Interest income	89	2	111	34
Other income, net	0	22	16	33
Income (loss) before income taxes	2,005	(15,657)	(526)	(16,730)
Income tax (expense) benefit	(973)	4,084	(1,182)	4,505
Equity in net income of non-consolidated affiliate	377	478	798	506
Income (loss) from continuing operations	1,409	(11,095)	(910)	(11,719)
Loss from discontinued operations, net of tax	(15)	0	(33)	(4)
Net (loss) income	1,394	(11,095)	(943)	(11,723)
Defined benefit pension plan gain, net of tax expense of $419, $320, $838 and $639, respectively	778	593	1,556	1,187
Cash flow hedge loss, net of tax benefit of $116, $0, $116 and $0, respectively	(216)	0	(216)	0
Comprehensive income (loss)	1,956	(10,502)	397	(10,536)
Preferred stock dividend	953	413	1,951	413
Net income (loss) available to common stockholders	$ 441	$ (11,508)	$ (2,894)	$ (12,136)
Earnings (loss) per share:
Basic weighted average shares outstanding	20,986,794	21,150,630	20,942,538	21,593,387
Diluted weighted average shares outstanding	21,011,129	21,150,630	20,942,538	21,593,387
Basic and diluted earnings (loss) per share from continuing operations (in dollars per share)	$ 0.02	$ (0.54)	$ (0.14)	$ (0.56)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Apr. 02, 2016	Apr. 04, 2015
Income Statement [Abstract]
Defined benefit pension plan gain, tax	$ 419	$ 320	$ 838	$ 639
Cash flow hedge loss, tax	$ 116	$ 0	$ 116	$ 0

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Cash flows from operating activities
Net loss	$ (943)	$ (11,723)
Loss from discontinued operations, net of tax	33	4
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	4,008	4,565
Amortization of debt costs	1,453	1,547
Stock-based compensation	2,447	55
Equity in net income of affiliate	(798)	(506)
Loss on disposal of fixed assets	24	483
Deferred taxes	569	(4,994)
Provision for bad debt	(5)	(31)
Amortization of deferred actuarial pension losses	2,394	1,826
Changes in assets and liabilities:
Accounts receivable	7,684	8,198
Inventories	(43,678)	(13,221)
Other assets	(1,965)	(1,566)
Accounts payable	18,661	(3,807)
Accrued expenses, pension and other liabilities	(3,222)	(22,236)
Total adjustments	(12,428)	(29,687)
Net cash used in continuing operations	(13,338)	(41,406)
Net cash used in discontinued operations	(33)	(4)
Total cash used in operating activities	(13,371)	(41,410)
Cash flows from investing activities
Cash paid for fixed assets	(3,937)	(1,832)
Total cash used in investing activities	(3,937)	(1,832)
Cash flows from financing activities
Repayments under the senior term loan	(5,875)	(5,875)
Cash paid for capital leases	(110)	(80)
Cash paid for debt costs	0	(2,872)
Contribution from majority stockholder	0	13,550
Payment of dividends on preferred stock	(953)	0
Total cash (used in) provided by financing activities	(6,938)	4,723
Change in cash and cash equivalents	(24,246)	(38,519)
Cash and cash equivalents at beginning of period	52,861	61,137
Cash and cash equivalents at end of period	28,615	22,618
Non-cash investing and financing activity
Capital expenditures funded by capital lease borrowings	100	0
Change in accounts payable for capital additions to property, plant and equipment	(500)	58
Common stock dividend on Series A preferred stock (market value of common shares)	998	0
Non-cash reverse merger activity
Issuance of Common Stock	0	25,000
Issuance of Series A Preferred Stock	0	50,000
Shares assumed by legal acquirer	0	42,492
Repurchase of Common Stock from Traxis	$ 0	$ 100,000

Nature of Business and Basis of

Nature of Business and Basis of Presentation	6 Months Ended
	Apr. 02, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	1. Nature of Business and Basis of Presentation Nature of Business On February 24, 2015, Hennessy Capital Acquisition Corp. ("HCAC") consummated its business combination (the “Business Combination”), pursuant to which HCAC acquired all of the outstanding capital stock of School Bus Holdings, Inc. (“SBH”) from The Traxis Group B.V. (the “Seller”). SBH operates its business of designing and manufacturing school buses through subsidiaries and under the Blue Bird Corporation (“Blue Bird”) name. In the Business Combination, the total purchase price was paid in a combination of cash ( $100 million ) and in shares of HCAC’s Common Stock ( 12,000,000 shares valued at a total of $120 million ). In connection with the closing of the Business Combination, we changed our name from Hennessy Capital Acquisition Corp. to Blue Bird Corporation. Upon consummation of the Business Combination, SBH became a wholly-owned subsidiary of Blue Bird Corporation and SBH’s direct and indirect subsidiaries became indirect subsidiaries of our parent corporation. Blue Bird Body Company, a wholly-owned subsidiary of Blue Bird, was incorporated in 1958 and has manufactured, assembled and sold school buses to a variety of municipal, federal and commercial customers since 1927. The majority of Blue Bird’s sales are made to an independent distributor network, which in turn sells buses to ultimate end users. We are headquartered in Fort Valley, Georgia. References in these notes to financial statements to “Blue Bird”, the “Company,” “we,” “our,” or “us” refer to Blue Bird Corporation and its wholly-owned subsidiaries, unless the context specifically indicates otherwise. Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and accounts have been eliminated in consolidation. The Company uses the equity method to account for its investment in an entity that is not controlled, and where the Company has the ability to exercise significant influence over operating and financial policies. Consolidated net loss includes the Company’s share of net (loss) income in this entity. The difference between consolidation and the equity method impacts certain of the Company’s financial ratios because of the presentation of the detailed line items reported in the condensed consolidated financial statements for consolidated entities, compared to a two-line presentation of “Equity investment in affiliate” on the Consolidated Balance Sheets and “Equity in net income of non-consolidated affiliate” on the Consolidated Statements of Operations and Comprehensive Loss. The second quarter 2015 presentation of Equity in net income of non-consolidated affiliate on the Consolidated Statement of Operations and Comprehensive Loss has been reclassified from the previous presentation to conform to the current year presentation. The previous presentation showed the amounts in the three and six months ended April 4, 2015 net of tax expense of $0.2 million for both periods. Those tax amounts are now included within the Income tax (expense) benefit line on our Consolidated Statement of Operations and Comprehensive Loss. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting and Article 8 of Regulation S-X. The Company’s fiscal year ends on the Saturday closest to September 30 with its quarters consisting of thirteen weeks in most years. In fiscal year 2016 there are a total of 52 weeks. For fiscal year 2016 the three and six months ended were 13 weeks and 26 weeks, respectively. For fiscal year 2015 the three and six months ended were 13 weeks and 27 weeks, respectively. In the opinion of management, all adjustments considered necessary for a fair statement of financial results have been made. Such adjustments consist of only those of a normal recurring nature. Operating results for any interim period are not necessarily indicative of the results that may be expected for the entire year. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The Condensed Consolidated Balance Sheet data as of October 3, 2015 was derived from the Company’s audited financial statements but do not include all disclosures required by generally accepted accounting principles. For additional information, including the Company’s significant accounting policies, refer to the consolidated financial statements and related footnotes for the fiscal year ended October 3, 2015 as set forth in the Company's 2015 Form 10-K filed on December 15, 2015. The Business Combination was accounted for as a reverse acquisition since immediately following completion of the transaction the sole stockholder of SBH immediately prior to the Business Combination maintained effective control of Blue Bird Corporation, the post-combination company. For accounting purposes, SBH is deemed the accounting acquirer in the transaction and, consequently, the transaction is treated as a recapitalization of SBH (i.e., a capital transaction involving the issuance of stock and payment of cash by HCAC for the stock of SBH). Accordingly, the consolidated assets, liabilities and results of operations of SBH are the historical financial statements of Blue Bird Corporation, and HCAC assets, liabilities and results of operations are consolidated with SBH beginning on the acquisition date. No step-up in basis of intangible assets or goodwill was recorded in this transaction. We have effected this treatment through opening stockholders' deficit by adjusting the number of our common shares outstanding. Other than transaction costs paid and a contribution from our majority stockholder for payment of management incentive compensation related to the transaction, the transaction was primarily non-cash and involved exchanges of consideration and equity between our majority stockholder and HCAC and its related entities. Please see Footnote 11 for discussion of a revision to previously reported earnings per share. In the reported Consolidated Statements of Cash Flows for the six months ended April 4, 2015, we presented borrowings under our senior credit facility gross, as both inflows and outflows from financing activities. As these borrowings are due on demand, they are considered to have maturities of three months or less and, therefore, qualify for net reporting. Accordingly, we have reclassified borrowings under the senior credit facility from gross presentation, as previously reported, to net presentation. The prior presentation showed both borrowings and repayments totaling $10.0 million . The current presentation does not show any borrowing line item as this amount nets to $0.0 million . Use of Estimates and Assumptions The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions. At the date of the financial statements, these estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, and during the reporting period, these estimates and assumptions affect the reported amounts of revenues and expenses. For example, significant management judgments are required in determining excess, obsolete, or unsalable inventory, allowance for doubtful accounts, potential impairment of long-lived assets, goodwill and intangibles, the accounting for self-insurance reserves, warranty reserves, pension obligations, income taxes, environmental liabilities and contingencies. Future events and their effects cannot be predicted with certainty, and, accordingly, the Company’s accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the Company’s condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. The Company evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in the Company’s evaluations. Actual results could differ from the estimates that the Company has used.

Summary of Significant Accounti

Summary of Significant Accounting Policies and Recently Issued Accounting Standards	6 Months Ended
	Apr. 02, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies and Recently Issued Accounting Standards	2. Summary of Significant Accounting Policies and Recently Issued Accounting Standards The Company’s significant accounting policies are described in the Company’s Form10-K, filed with the SEC on December 15, 2015. Our senior management has reviewed these significant accounting policies and related disclosures and determined that there were no significant changes in our critical accounting policies in the six months ended April 2, 2016 other than those described below. Derivative Instruments We utilize derivative instruments to manage certain exposures to changes in foreign currency exchange rates. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these derivative instruments are recognized in our operating results or included in other comprehensive income (loss), depending on whether the derivative instrument is a fair value or cash flow hedge and whether it qualifies for hedge accounting treatment. If realized, gains and losses on derivative instruments are recognized in our Consolidated Statement of Operations in the line item that reflects the underlying exposure that was hedged. The exchange of cash, if any, associated with derivative transactions is classified in the Consolidated Statements of Cash Flows in the same category as the cash flows from the items subject to the economic hedging relationships. Recently Issued Accounting Standards ASU 2016-09 — In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (ASU) No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies the accounting for some aspects of share-based payment transactions, including the income tax treatment of excess tax benefits and deficiencies, forfeitures, classification of share-based awards as either equity or liabilities, and classification in the statement of cash flows for certain share-based transactions related to tax benefits and payments. ASU 2016-09 is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods, and early adoption is permitted. The Company has elected to early adopt ASU 2016-09 beginning with the second quarter ended April 2, 2016 , resulting in no impact on our financial statements or required disclosures since no outstanding equity awards have vested or been forfeited, and there exists no windfall or shortfall pool of tax benefits. ASU 2016-02 — In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize assets on the balance sheet for the rights and obligations created by all leases with terms greater than 12 months. The standard will also require certain qualitative and quantitative disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. We are currently evaluating the impact the standard will have on our consolidated financial statements. ASU 2015-17 — In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred taxes by requiring deferred tax assets and liabilities to be classified as non-current on the balance sheet. The standard is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. As of April 2, 2016 , the adoption of this ASU would result in the reclassification of approximately $8.2 million from current assets to non-current assets. Future impact will be driven by the composition of our deferred tax accounts.

Supplemental Financial Informat

Supplemental Financial Information	6 Months Ended
	Apr. 02, 2016
Condensed Financial Information [Abstract]
Supplemental Financial Information	3. Supplemental Financial Information Inventory The Company values inventories at the lower of cost or market value. The Company uses a standard costing methodology, which approximates cost on a first-in, first-out basis. The Company reviews the standard costs of raw materials, work-in-process and finished goods inventory on a periodic basis to ensure that its inventories approximate current actual costs. Manufacturing cost includes raw materials, direct labor and manufacturing overhead. Inventory consists of the following: (in thousands of dollars) As of April 2, 2016 As of October 3, 2015 Raw materials $ 55,496 $ 43,471 Work in process 31,017 2,658 Finished goods 6,345 3,051 Total inventory $ 92,858 $ 49,180 Product Warranties The Company’s products are generally warranted against defects in material and workmanship for a period of one to five years . A provision for estimated warranty costs is recorded in the year the unit is sold. The methodology to determine warranty reserve calculates average expected warranty claims using warranty claims by body type, by month, over the life of the bus, which is then multiplied by remaining months under warranty, by warranty type. Management believes the methodology provides for accuracy in addressing reserve requirements. Management believes the warranty reserve is appropriate; however, actual claims incurred could differ from the original estimates, requiring future adjustments. The Company also sells extended warranties related to its products. Revenue related to these contracts is recognized on a straight-line basis over the contract period and costs thereunder are expensed as incurred. All warranty expenses are recorded in the cost of goods sold line in the Consolidated Statements of Operations and Comprehensive Income (Loss). The current methodology to determine short-term extended warranty income reserve is based on twelve months of the remaining warranty value for each effective extended warranty at the balance sheet date. Activity in accrued warranty cost (current and long-term portion combined) was as follows for the three and six months ended April 2, 2016 and April 4, 2015 : (in thousands of dollars) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Balance at beginning of period $ 16,583 $ 15,226 $ 17,661 $ 15,559 Add current period accruals 2,119 2,073 3,504 3,922 Current period reductions of accrual (1,934 ) (2,037 ) (4,397 ) (4,219 ) Balance at end of period $ 16,768 $ 15,262 $ 16,768 $ 15,262 Extended Warranty Income Activity in deferred warranty income, for the sale of extended warranties of two to five years , was as follows for the three and six months ended April 2, 2016 and April 4, 2015 : (in thousands of dollars) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Balance at beginning of period $ 14,082 $ 12,075 $ 14,145 $ 12,003 Add current period deferred income 1,308 1,339 2,494 2,506 Current period recognition of income (1,330 ) (1,074 ) (2,579 ) (2,169 ) Balance at end of period $ 14,060 $ 12,340 $ 14,060 $ 12,340 Self-Insurance Total accrued self-insurance liability, comprised of workers compensation and health insurance related claims, was as follows: (in thousands of dollars) As of April 2, 2016 As of October 3, 2015 Current portion $ 3,423 $ 3,534 Long-term portion 2,893 2,786 Total accrued self-insurance $ 6,316 $ 6,320 The current and long term portions of the accrued self-insurance liability are reflected in accrued expenses and other liabilities, respectively, on the balance sheet. Shipping and Handling Revenues Shipping and handling revenues represent costs billed to customers and are presented as net sales. Shipping and handling costs incurred are included in cost of goods sold. Shipping and handling revenues were $2.8 million and $2.5 million for the three months ended April 2, 2016 and April 4, 2015 , respectively, and $5.3 million and $6.1 million for the six months ended April 2, 2016 and April 4, 2015 , respectively. The related cost of goods sold was $2.5 million and $2.2 million for the three months ended April 2, 2016 and April 4, 2015 , respectively, and $4.5 million and $5.4 million for the six months ended April 2, 2016 and April 4, 2015 , respectively. Pension Expense Components of net periodic pension benefit cost for the three and six months ended April 2, 2016 and April 4, 2015 were as follows: (in thousands of dollars) Three Months Ended April 2, 2016 Three Months Ended April 4, 2015 Six Months Ended April 2, 2016 Six Months Ended April 4, 2015 Interest cost $ 1,410 $ 1,427 $ 2,821 $ 2,854 Expected return on plan assets (1,528 ) (1,600 ) (3,056 ) (3,199 ) Amortization of prior loss 1,197 913 2,394 1,826 Net periodic benefit cost $ 1,079 $ 740 $ 2,159 $ 1,481 Amortization of prior loss, recognized in other comprehensive income 1,197 913 2,394 1,826 Total recognized in net periodic pension benefit cost and other comprehensive income $ (118 ) $ (173 ) $ (235 ) $ (345 ) Equity Investment in Affiliate The Company holds a 50% equity interest in Micro Bird Holdings, Inc. (“Micro Bird”), and accounts for Micro Bird under the equity method of accounting. The carrying amount of the equity method investment is adjusted for the Company’s proportionate share of net earnings and losses and any dividends received. At April 2, 2016 and October 3, 2015 , the Company had an investment of $13.3 million and $12.5 million , respectively. In recognizing the Company’s 50% portion of Micro Bird net income, the Company recorded $0.8 million and $0.5 million in Equity in net income of non-consolidated affiliate for the six months ended April 2, 2016 and April 4, 2015 , respectively. Summarized unaudited financial information for these periods for Micro Bird is as follows: (in thousands of dollars) Six Months Ended April 2, 2016 Six Months Ended April 4, 2015 Revenues $ 36,886 $ 35,111 Gross profit 5,544 4,470 Operating income 3,230 1,757 Net income 1,643 1,242

Debt

Debt	6 Months Ended
	Apr. 02, 2016
Debt Disclosure [Abstract]
Debt	4. Debt Debt consisted of the following: (in thousands of dollars) As of April 2, 2016 As of October 3, 2015 2020 senior term loan, net of discount of $9,725 an d $11,082 $ 182,650 $ 187,168 Total debt $ 182,650 $ 187,168 Less: Current portion of long-term debt 11,750 11,750 Long-term debt, net of current portion $ 170,900 $ 175,418 In June 2014, Blue Bird Body Company executed a new $235.0 million six year senior term loan provided by Societe Generale (the “Senior Credit Facility”), which acts as the administrative agent, SG Americas Securities LLC, Macquarie Capital (USA) INC., and Fifth Third Bank as joint book runners and Joint Lead Arrangers. The Senior Credit Facility amortizes at 5% per annum payable quarterly beginning January 3, 2015. The interest rate on the Senior Credit Facility is an election of either base rate plus 450 basis points or LIBOR (floor of 1 point) plus 550 basis points, and is 6.5% at both April 2, 2016 and October 3, 2015 . Blue Bird also has access to a $60.0 million revolving senior credit facility provided by Societe Generale (the “Senior Revolving Credit Facility”), which acts as the administrative agent, SG Americas Securities LLC and Macquarie Capital (USA) INC. The Senior Revolving Credit Facility carries an elective rate of either the base rate plus 450 basis points or LIBOR plus 550 basis points. No borrowings were outstanding on the Senior Revolving Credit Facility as of April 2, 2016 and October 3, 2015 . Blue Bird may request letters of credit through its Senior Revolving Credit Facility up to a $15.0 million sub limit. There were $5.1 million of Letters of Credit outstanding on April 2, 2016 . The commitment fee on unused amounts of the Senior Revolving Credit Facility is 0.5% . The Senior Credit Facility and the Senior Revolving Credit Facility were executed on June 27, 2014 and further amended on September 28, 2015. The Senior Credit Facility has a six year term and the Senior Revolving Credit Facility originally had a five year term but was amended to a six year term. The Senior Credit Facility was also amended to permit the Company to pay its preferred share dividends in cash, to permit the Company to tender cash for its existing warrants from available amounts (as further defined in the credit agreement), to amend the definition of consolidated EBITDA to allow an add back of third party expenses related to being a public company, to add Blue Bird Corporation as a guarantor, and to otherwise amend various restricted payment requirements. As of April 2, 2016 and October 3, 2015 , $192.4 million and $198.3 million , respectively, were outstanding on this indebtedness. Approximately $12.7 million of fees were netted out of the proceeds of the Senior Credit Facility and paid directly to the lenders. An additional $1.6 million was paid to other third parties and are recorded as a reduction in the carrying value of debt on our Condensed Consolidated Balance Sheets. Our term loan is recognized on the Company’s balance sheet at its unpaid principal balance, and is not subject to fair value measurement. However, given that the loan carries a variable rate, the Company estimates that the unpaid principal balance of the term loan would approximate its fair value. If measured at fair value in the financial statements, the Company’s term loan would be classified as Level 2 in the fair value hierarchy. As of April 2, 2016 and October 3, 2015 , the weighted-average annual effective interest rate was 8% and 7.8% , respectively. Interest expense for the three months ended April 2, 2016 and April 4, 2015 , was approximately $4.5 million and $4.8 million , respectively. Interest expense for the six months ended April 2, 2016 and April 4, 2015 , was approximately $8.7 million and $9.9 million , respectively. The schedules of remaining principal maturities for the Senior Credit Facility and the Senior Revolving Credit Facility for the next five fiscal years are as follows: (in thousands of dollars) Year Amount 2016 5,875 2017 11,750 2018 11,750 2019 11,750 2020 151,250 $ 192,375

Income Taxes

Income Taxes	6 Months Ended
	Apr. 02, 2016
Income Tax Disclosure [Abstract]
Income Taxes	5. Income Taxes Income tax provisions for interim periods are based on estimated annual income tax rates, adjusted to reflect the effects of any significant infrequent or unusual items which are required to be discretely recognized within the current interim period. The effective tax rates in the periods presented are largely based upon the forecast pre-tax earnings mix and allocation of certain expenses in various taxing jurisdictions where the Company conducts its business, primarily the United States. As a result of the Business Combination a change in the ownership of the Company occurred which, pursuant to the Internal Revenue Code, will limit on an annual basis the Company's ability to utilize its U.S. Federal NOLs and U.S. Federal tax credits. The Company's NOLs and credits will continue to be available to offset taxable income and tax liabilities (until such NOLs and credits are either used or expire) subject to the Section 382 annual limitation. If the annual limitation amount is not fully utilized in a particular tax year, then the unused portion from that particular tax year will be added to the annual limitation in subsequent years. The effective tax rates for the three month periods ended April 2, 2016 and April 4, 2015 , were 48.5% and 26.1% , respectively. The effective tax rate for the three month period ended April 2, 2016 differed from the statutory federal income tax rate of 35% due to interest and penalties on uncertain tax positions, which were partially offset by benefits from the domestic production activities deduction, state tax items, and other permanent items. The effective tax rate for the three month period ended April 4, 2015 differed from the statutory federal income tax rate of 35% , primarily as a result of the benefits from the domestic production activities deduction and state tax items, which were partially offset by interest and penalties on uncertain tax positions and transaction costs. The effective tax rates for the six month periods ended April 2, 2016 and April 4, 2015 , were (224.7)% and 26.9% , respectively. The effective tax rate for the six month period ended April 2, 2016 differed from the statutory federal income tax rate of 35% primarily from discrete items increasing tax expense this period, including a change in investor tax on our non-consolidated affiliate income, the application of tax credits claimed as offsets against our payroll tax liabilities, and interest and penalties on uncertain tax positions, which were partially offset by the benefit from current period operating losses and recording the impact of new tax legislation. The effective tax rate for the six month period ended April 4, 2015 differed from the statutory federal income tax rate of 35% primarily as a result of the benefit from the domestic production activities deduction, a discrete tax benefit from the extension of the U.S. Federal Research and Development Tax Credit for 2014, and benefits of state tax items which were partially offset by interest and penalties on uncertain tax positions and transaction costs. Of the total amount of gross unrecognized tax benefits as of April 2, 2016 and April 4, 2015 , $6.4 million and $6.4 million, respectively, would affect the Company’s effective tax rate if realized. The Company’s liability arising from uncertain tax positions is recorded in other non-current liabilities in the Condensed Consolidated Balance Sheets. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. The accrued interest and penalties as of the six months ended April 2, 2016 and April 4, 2015 , were $1.7 million and $0.5 million , respectively.

Guarantees, Commitments and Con

Guarantees, Commitments and Contingencies	6 Months Ended
	Apr. 02, 2016
Commitments and Contingencies Disclosure [Abstract]
Guarantees, Commitments and Contingencies	6. Guarantees, Commitments and Contingencies Litigation As of April 2, 2016 , the Company had a number of product liability and other cases pending. Management believes that, considering the Company’s insurance coverage and its intention to vigorously defend its positions, the ultimate resolution of these matters will not have a material adverse impact on the Company’s financial statements. Environmental The Company is subject to a variety of environmental regulations relating to the use, storage, discharge and disposal of hazardous materials used in its manufacturing processes. Failure by the Company to comply with present and future regulations could subject it to future liabilities. In addition, such regulations could require the Company to acquire costly equipment or to incur other significant expenses to comply with environmental regulations. The Company is currently not involved in any material environmental proceedings and therefore management believes that the resolution of environmental matters will not have a material adverse effect on the Company’s financial statements.

Segment Information

Segment Information	6 Months Ended
	Apr. 02, 2016
Segment Reporting [Abstract]
Segment Information	7. 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 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 three and six months ended April 2, 2016 and April 4, 2015 : Net sales (in thousands of dollars) Three Months Ended Three Months Ended April 4, 2015 Six Months Ended April 2, 2016 Six Months Ended April 4, 2015 Bus $ 176,921 $ 169,222 $ 295,400 $ 321,206 Parts 14,287 13,796 27,141 27,645 Segment net sales $ 191,208 $ 183,018 $ 322,541 $ 348,851 Gross profit (in thousands of dollars) Three Months Ended April 2, 2016 Three Months Ended April 4, 2015 Six Months Ended April 2, 2016 Six Months Ended April 4, 2015 Bus $ 19,768 $ 17,943 $ 33,514 $ 32,245 Parts 5,346 5,087 10,353 10,263 Segment gross profit $ 25,114 $ 23,030 $ 43,867 $ 42,508 The following table is a reconciliation of segment gross profit to consolidated income (loss) before income taxes for the three and six months ended April 2, 2016 and April 4, 2015 : (in thousands of dollars) Three Months Ended Three Months Ended April 4, 2015 Six Months Ended April 2, 2016 Six Months Ended April 4, 2015 Segment gross profit $ 25,114 $ 23,030 $ 43,867 $ 42,508 Adjustments: Selling, general and administrative expenses (18,745 ) (33,950 ) (35,824 ) (49,409 ) Interest expense (4,453 ) (4,761 ) (8,696 ) (9,896 ) Interest income 89 2 111 34 Other income, net — 22 16 33 Income (loss) before income taxes $ 2,005 $ (15,657 ) $ (526 ) $ (16,730 ) Sales are attributable to geographic areas based on customer location and were as follows for the three and six months ended April 2, 2016 and April 4, 2015 : (in thousands of dollars) Three Months Ended Three Months Ended April 4, 2015 Six Months Ended April 2, 2016 Six Months Ended April 4, 2015 United States $ 166,215 $ 152,381 $ 293,017 $ 308,332 Canada 21,531 28,288 24,619 37,447 Rest of world 3,462 2,349 4,905 3,072 Total net sales $ 191,208 $ 183,018 $ 322,541 $ 348,851

Business Combination

Business Combination	6 Months Ended
	Apr. 02, 2016
Business Combinations [Abstract]
Business Combination	8. Business Combination Background and Summary Blue Bird Corporation was originally formed in September 2013 as a special purpose acquisition company, or SPAC, under the name Hennessy Capital Acquisition Corp. (“HCAC” or “Hennessy Capital”) for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination involving HCAC and one or more businesses. As a SPAC, HCAC was a shell (blank check) company that had no operations and whose purpose was to go public with the intention of merging with or acquiring a company with the proceeds of the SPAC’s initial public offering (IPO). Until the consummation of the Business Combination (as defined below), HCAC’s securities were traded on The NASDAQ Stock Market (“Nasdaq”) under the ticker symbols “HCAC,” “HCACU” and “HCACW”. On September 21, 2014, Hennessy Capital Partners I LLC (the “HCAC Sponsor”) signed a purchase agreement (the “Purchase Agreement”) with the The Traxis Group B.V. ("Seller") to acquire all outstanding stock of School Bus Holdings, Inc ("SBH"). The material terms and conditions of the Purchase Agreement were described in Hennessy Capital’s definitive proxy statement filed with the SEC on January 20, 2015, which was supplemented in additional proxy statement materials filed with the SEC on February 10, 2015. On February 24, 2015, HCAC consummated its business combination (the “Business Combination”), pursuant to which HCAC acquired all of the outstanding capital stock of SBH from the Seller. SBH operates its business of designing and manufacturing school buses through subsidiaries and under the “Blue Bird” name. In the Business Combination, the total purchase price was paid in a combination of cash ( $100 million ) and in shares of HCAC’s Common Stock ( 12,000,000 shares valued at a total of $120 million ). In connection with the closing of the Business Combination, we changed our name from Hennessy Capital Acquisition Corp. to Blue Bird Corporation. The cash purchase price in the Business Combination was funded through amounts that remained in HCAC’s trust after the redemption of all shares that were offered for redemption pursuant to HCAC’s certificate of incorporation, together with $75 million of funds invested through private placements of Common Stock and Series A Convertible Preferred Stock that occurred simultaneously with the consummation of the Business Combination. Preferred Stock Subscription Agreement Pursuant to a preferred stock subscription agreement entered into in February 2015, an investor agreed to purchase from Hennessy Capital, concurrent with the consummation of the closing of the Business Combination, 400,000 shares of Series A Convertible Preferred Stock for gross proceeds of approximately $40 million , subject to a possible increase to up to 500,000 shares or approximately $50 million (the “PIPE Investment”). Also in February 2015, Hennessy Capital entered into a subscription agreement with four funds managed by Coliseum Capital Management, LLC (the “Common/Preferred Investor”) pursuant to which the Common/Preferred Investor agreed to purchase $25 million worth of shares of Hennessy Capital common stock, through (i) open market or privately negotiated transactions with third parties, at a purchase price of up to $10.00 per share, (ii) a private placement with consummation to occur concurrently with that of the Business Combination at a purchase price of $10.00 per share or (iii) a combination thereof, and further agreed to purchase 100,000 shares of Series A Convertible Preferred Stock pursuant to a private placement for gross proceeds of approximately $10.0 million to occur concurrently with that of the Business Combination. Business Combination Approval and Consummation On February 23, 2015, the Business Combination was approved by Hennessy Capital’s stockholders. On February 24, 2015, the parties consummated the Business Combination. The total purchase price was paid in a combination of cash ( $100 million ) and in shares of the registrant’s common stock ( 12,000,000 shares valued at a total of $120 million ). In connection with the closing of the Business Combination, the Company redeemed a total of 7,494,700 shares of its common stock pursuant to the terms of the Company’s amended and restated certificate of incorporation, resulting in a total cash payment from Hennessy Capital’s trust account to redeeming stockholders of $75 million . On February 24, 2015, at the closing of the Business Combination, the PIPE Investment investor purchased 400,000 shares of the Company’s Series A Convertible Preferred Stock from the Company for aggregate gross proceeds of approximately $40 million and the Common/Preferred Investor purchased 100,000 shares of the Company’s Series A Convertible Preferred Stock from the Company for aggregate gross proceeds of approximately $10 million . In addition, at the closing, the Company issued to another investor 102,750 shares referenced in the Purchase Agreement as “Utilization Fee Shares”, and the Common/Preferred Investor purchased 2,500,000 shares of the Company’s common stock from the Company for aggregate gross proceeds of $25 million . Registration Rights Agreement On February 24, 2015, the Company entered into a registration rights agreement with the Seller and other investors (the “Registration Rights Agreement”). The parties were granted registration rights that obligate Blue Bird Corporation to register for resale, among other shares, all or any portion of the shares of the Company’s capital stock that were issued by the Company in connection with the Business Combination (including the shares of common stock underlying the Series A Preferred Stock). On April 27, 2015, a registration statement on Form S-3 filed by the Company in connection with, among other things, its obligations under the Registration Rights Agreement, was declared effective by the SEC. Under the Registration Rights Agreement, the parties also hold “piggyback” registration rights exercisable at any time that allow them to include the shares of Blue Bird Corporation common stock that they own in any public offering of equity securities initiated by us (other than those public offerings pursuant to registration statements on forms that do not permit registration for resale by them). The “piggyback” registration rights are subject to proportional cutbacks based on the manner of such offering and the identity of the party initiating such offering. Blue Bird Corporation will pay all expenses incidental to its obligations under the Registration Rights Agreement, including any underwriting discounts and commissions payable by the parties to that agreement in connection with the sale of their shares under the Registration Rights Agreement.

Stockholders' Deficit

Stockholders' Deficit	6 Months Ended
	Apr. 02, 2016
Equity [Abstract]
Stockholders' Deficit	9. Stockholders’ Deficit Authorized and Outstanding Stock Our charter authorizes the issuance of 110 million shares, consisting of 100 million shares of common stock, $ 0.0001 par value per share, and 10 million shares of preferred stock, $ 0.0001 par value, 2 million of which have been designated as Series A Convertible Preferred Stock (“Preferred” or "Convertible Preferred Stock") and the remaining 8 million of which are undesignated. The outstanding shares of our Series A Convertible Preferred Stock and common stock are duly authorized, validly issued, fully paid and non-assessable. Common Stock On February 24, 2015, we sold 2,500,000 shares of common stock at $10.00 per share in a private placement. Proceeds from the sale were part of the consideration received by our majority owner as part of a recapitalization and reverse acquisition completed in the Business Combination. We also issued (i) 12,000,000 shares of common stock to the Seller upon consummation of the Business Combination, and (ii) 102,750 shares of common stock as a utilization fee to another investor. Please see Note 8 for a further discussion of these transactions. At April 2, 2016 , there were 20,992,033 shares of our common stock issued and outstanding. Convertible Preferred Stock By the filing of a Certificate of Designations (the “Certificate of Designations”) on February 24, 2015, we have designated 2.0 million shares of preferred stock as Series A Convertible Preferred Stock and, on February 24, 2015, we issued 500,000 shares of such series. Proceeds from the sale were part of the consideration received by our majority owner as part of a recapitalization and reverse acquisition completed in the Business Combination. Please see Note 8 for a further discussion of the transaction. Each share of Series A Convertible Preferred Stock is convertible, at the holder’s option at any time, initially into 8.6 shares of our common stock (which is equivalent to an initial conversion price of approximately $11.59 per share), subject to specified adjustments as set forth in the Certificate of Designations. In addition, beginning on or after the third anniversary of the initial issuance date, we have the right, at our option, to cause all outstanding shares of the Series A Convertible Preferred Stock to be automatically converted into shares of common stock under certain circumstances and, if our Company undergoes certain fundamental changes, the Series A Convertible Preferred Stock will automatically be converted into common stock on the effective date of such fundamental change. Holders of Series A Convertible Preferred Stock are entitled to receive when, as and if declared by the Board, dividends which are payable at a rate of 7.625% per annum. Unless prohibited by applicable law, the Board shall not fail to declare such dividends on the Series A Convertible Preferred Stock. Dividends accrue for all fiscal periods the Series A Convertible Preferred Stock is outstanding. The dividends are payable in cash, common shares, preferred shares, or any combination thereof. The form of dividend payment is in the sole discretion of the Company. We have paid three dividends in the form of 278,022 shares of common stock to the holders of our Series A Convertible Preferred Stock. The dividend paid during our second fiscal quarter of 2016 was in cash. As we are in an accumulated deficit position, we reduce Additional paid-in capital for dividend payments at the same amount that we record Additional paid-in capital for the issuance of the common stock, which results in no net change to our Stockholders' Deficit. The fair value of this dividend is reflected as a deduction from net loss to calculate net loss available to common stockholders in our Condensed Consolidated Statement of Operations. In the event of any liquidation, winding-up or dissolution of the Company, whether voluntary or involuntary, each holder of shares of Series A Convertible Preferred Stock shall be entitled to receive and to be paid out of the assets of the Company available for distribution to its stockholders the Liquidation Preference ( $100.00 per share) plus all accumulated and unpaid dividends in respect of the Series A Convertible Preferred Stock (whether or not declared) to the date fixed for liquidation, winding-up or dissolution in preference to the holders of, and before any payment or distribution is made, on any other class of stock. Warrants Public Warrants The Company has issued warrants to purchase its common stock which were originally issued as part of units in Hennessy Capital’s initial public offering (the “Public Warrants”). There are currently 8,809,538 Public Warrants outstanding. Each Public Warrant entitles the registered holder to purchase one-half of one share of our common stock at a price of $5.75 per one-half of one share ( $11.50 per whole share), subject to adjustment. Public Warrants may be exercised only for a whole number of shares of our Common Stock. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants will expire on February 24, 2020, five years after the completion of the Business Combination, or earlier upon redemption or liquidation. We may call the Public Warrants for redemption if, and only if, the reported last sale price of our common stock equals or exceeds $24.00 per share for any 20 trading days within a 30 -trading day period ending on the third trading day prior to the date we send the notice of redemption to the Warrant holders. The Public Warrants are listed on the OTCQB market under the symbol "BLBDW." Placement Warrants The Company issued warrants to purchase its common stock in connection with a private placement which occurred concurrently with Hennessy Capital’s initial public offering (the “Placement Warrants”). There were initially 12,125,000 Placement Warrants purchased at a price of $0.50 per unit for an aggregate purchase price of $6.1 million . The Placement Warrants are identical to the Public Warrants sold in the initial public offering, except that, if held by the HCAC Sponsor or its permitted assignees, they (a) may be exercised for cash or on a cashless basis; and (b) are not subject to being called for redemption. There were 2,690,462 Placement Warrants outstanding as of April 2, 2016 . Each such warrant entitles the holder to purchase one-half of one share of our Common Stock at a price of $5.75 per one-half of one share ( $11.50 per whole share), subject to adjustment.

Foreign Exchange Contracts

Foreign Exchange Contracts	6 Months Ended
	Apr. 02, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Foreign Exchange Contracts	10. Foreign Exchange Contracts During the second quarter of 2016, we entered into a foreign exchange swap as an economic hedge of anticipated cash flows denominated in Canadian Dollars. The contract was entered into to protect against the risk that the eventual cash flows resulting from certain transactions would be affected by changes in exchange rates between the U.S. Dollar and the Canadian Dollar. The notional amount of the swap entered into was $10.8 million , and it matures on January 31, 2017. The foreign exchange contract qualifies for hedge accounting and has been designated as a cash flow hedge with the effective portion of the gain or loss on the derivative instrument recorded in other comprehensive income until the underlying transaction occurs. Once the anticipated transaction occurs, the gain or loss on the swap is recorded in current period earnings on the Consolidated Statements of Operations. The fair value of the foreign exchange contract is based on the forward contract rate, which classifies as a Level 2 fair value measurement. At April 2, 2016 , the fair value of the foreign exchange contract was $(0.3) million , included in "other current liabilities" on the Consolidated Balance Sheet, with the loss recorded through accumulated other comprehensive income.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Apr. 02, 2016
Earnings Per Share [Abstract]
Earnings Per Share	11. Earnings Per Share The diluted earnings per share calculation for the three months ended April 2, 2016 is presented in the following table: (in thousands except for share data) Three Months Ended Net income $ 1,394 Less: convertible preferred stock dividend 953 Net income available to common stockholders 441 Basic weighted average shares outstanding 20,986,794 Effect of dilutive restricted stock 24,335 Diluted weighted average shares outstanding 21,011,129 Diluted earnings per share (1) $ 0.02 (1) The calculation excludes convertible preferred stock totaling 4,314,064 shares since the "if-converted" impact would be anti-dilutive. We incurred a net loss for the six months ended April 2, 2016 and the three and six months ended April 4, 2015 . As a result, basic and diluted weighted average shares outstanding are equal to each other due to the exclusion of potentially dilutive shares from the calculation of diluted earnings per share as the effect would be anti-dilutive. Immaterial Correction of Earnings Per Share In connection with the preparation of the consolidated financial statements for the three and six months ended April 2, 2016, an error in the computation and disclosure of basic and diluted earnings per share was identified. Per ASC 260-10-45-11, income per share available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock and the dividends accumulated for the period on cumulative preferred stock from income from continuing operations and from net income. The error resulted from not deducting the amount of cumulative dividends earned, on an accrual basis, by preferred stockholders in the second quarter of 2015 and adjusting for the rollover impact, if any, of cumulative dividends earned in the subsequent periods through the end of fiscal 2015. We evaluated the materiality of the error in accordance with SEC Staff Accounting Bulletin No. 99, Materiality , SEC Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements When Quantifying Misstatements in Current Year Financial Statements , and Accounting Standards Codification 250, Accounting for Changes and Error Corrections , and concluded the error was immaterial to all prior periods impacted. While the adjustments were immaterial, the Company has elected to revise its previously reported basic and diluted earnings per share for all periods in 2015 as presented in the following tables. Basic and diluted earnings per share for the three and six month periods ended April 4, 2015 : Three Months Ended April 4, 2015 Six Months Ended April 4, 2015 (in thousands except for share data) Previous Adjustment Corrected Previous Adjustment Corrected Net income (loss) $ (11,095 ) $ — $ (11,095 ) $ (11,723 ) $ — $ (11,723 ) Preferred stock dividend — 413 413 — 413 413 Net income (loss) available to common shareholders (11,095 ) (413 ) (11,508 ) (11,723 ) (413 ) (12,136 ) Basic earnings (loss) per share (0.52 ) (0.02 ) (0.54 ) (0.54 ) (0.02 ) (0.56 ) Diluted earnings (loss) per share $ (0.52 ) $ (0.02 ) $ (0.54 ) $ (0.54 ) $ (0.02 ) $ (0.56 ) Basic and diluted earnings per share the three and nine month periods ended July 4, 2015: Three Months Ended July 4, 2015 Nine Months Ended July 4, 2015 (in thousands except for share data) Previous Adjustment Corrected Previous Adjustment Corrected Net income (loss) $ 10,683 $ — $ 10,683 $ (1,040 ) $ — $ (1,040 ) Preferred stock dividend 1,239 (212 ) 1,027 1,239 201 1,440 Net income (loss) available to common shareholders 9,444 212 9,656 (2,279 ) (201 ) (2,480 ) Basic earnings (loss) per share 0.46 0.01 0.47 (0.11 ) (0.01 ) (0.12 ) Diluted earnings (loss) per share $ 0.42 $ — $ 0.42 $ (0.11 ) $ (0.01 ) $ (0.12 ) Basic and diluted earnings per share for the year ended October 3, 2015: Year Ended October 3, 2015 (in thousands except for share data) Previous Adjustment Corrected Net income $ 14,932 $ — $ 14,932 Preferred stock dividend 2,247 191 2,438 Net income available to common shareholders 12,685 (191 ) 12,494 Basic earnings per share 0.60 (0.01 ) 0.59 Diluted earnings per share $ 0.59 $ — $ 0.59

Nature of Business and Basis 18

Nature of Business and Basis of Presentation (Policies)	6 Months Ended
	Apr. 02, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and accounts have been eliminated in consolidation. The Company uses the equity method to account for its investment in an entity that is not controlled, and where the Company has the ability to exercise significant influence over operating and financial policies. Consolidated net loss includes the Company’s share of net (loss) income in this entity. The difference between consolidation and the equity method impacts certain of the Company’s financial ratios because of the presentation of the detailed line items reported in the condensed consolidated financial statements for consolidated entities, compared to a two-line presentation of “Equity investment in affiliate” on the Consolidated Balance Sheets and “Equity in net income of non-consolidated affiliate” on the Consolidated Statements of Operations and Comprehensive Loss. The second quarter 2015 presentation of Equity in net income of non-consolidated affiliate on the Consolidated Statement of Operations and Comprehensive Loss has been reclassified from the previous presentation to conform to the current year presentation. The previous presentation showed the amounts in the three and six months ended April 4, 2015 net of tax expense of $0.2 million for both periods. Those tax amounts are now included within the Income tax (expense) benefit line on our Consolidated Statement of Operations and Comprehensive Loss. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial reporting and Article 8 of Regulation S-X. The Company’s fiscal year ends on the Saturday closest to September 30 with its quarters consisting of thirteen weeks in most years. In fiscal year 2016 there are a total of 52 weeks. For fiscal year 2016 the three and six months ended were 13 weeks and 26 weeks, respectively. For fiscal year 2015 the three and six months ended were 13 weeks and 27 weeks, respectively. In the opinion of management, all adjustments considered necessary for a fair statement of financial results have been made. Such adjustments consist of only those of a normal recurring nature. Operating results for any interim period are not necessarily indicative of the results that may be expected for the entire year. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The Condensed Consolidated Balance Sheet data as of October 3, 2015 was derived from the Company’s audited financial statements but do not include all disclosures required by generally accepted accounting principles. For additional information, including the Company’s significant accounting policies, refer to the consolidated financial statements and related footnotes for the fiscal year ended October 3, 2015 as set forth in the Company's 2015 Form 10-K filed on December 15, 2015. The Business Combination was accounted for as a reverse acquisition since immediately following completion of the transaction the sole stockholder of SBH immediately prior to the Business Combination maintained effective control of Blue Bird Corporation, the post-combination company. For accounting purposes, SBH is deemed the accounting acquirer in the transaction and, consequently, the transaction is treated as a recapitalization of SBH (i.e., a capital transaction involving the issuance of stock and payment of cash by HCAC for the stock of SBH). Accordingly, the consolidated assets, liabilities and results of operations of SBH are the historical financial statements of Blue Bird Corporation, and HCAC assets, liabilities and results of operations are consolidated with SBH beginning on the acquisition date. No step-up in basis of intangible assets or goodwill was recorded in this transaction. We have effected this treatment through opening stockholders' deficit by adjusting the number of our common shares outstanding. Other than transaction costs paid and a contribution from our majority stockholder for payment of management incentive compensation related to the transaction, the transaction was primarily non-cash and involved exchanges of consideration and equity between our majority stockholder and HCAC and its related entities.
Use of Estimates and Assumptions	Use of Estimates and Assumptions The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions. At the date of the financial statements, these estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, and during the reporting period, these estimates and assumptions affect the reported amounts of revenues and expenses. For example, significant management judgments are required in determining excess, obsolete, or unsalable inventory, allowance for doubtful accounts, potential impairment of long-lived assets, goodwill and intangibles, the accounting for self-insurance reserves, warranty reserves, pension obligations, income taxes, environmental liabilities and contingencies. Future events and their effects cannot be predicted with certainty, and, accordingly, the Company’s accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the Company’s condensed consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. The Company evaluates and updates its assumptions and estimates on an ongoing basis and may employ outside experts to assist in the Company’s evaluations. Actual results could differ from the estimates that the Company has used.
Derivative Instruments	Derivative Instruments We utilize derivative instruments to manage certain exposures to changes in foreign currency exchange rates. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these derivative instruments are recognized in our operating results or included in other comprehensive income (loss), depending on whether the derivative instrument is a fair value or cash flow hedge and whether it qualifies for hedge accounting treatment. If realized, gains and losses on derivative instruments are recognized in our Consolidated Statement of Operations in the line item that reflects the underlying exposure that was hedged. The exchange of cash, if any, associated with derivative transactions is classified in the Consolidated Statements of Cash Flows in the same category as the cash flows from the items subject to the economic hedging relationships.
Recently Issued Accounting Standards	Recently Issued Accounting Standards ASU 2016-09 — In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (ASU) No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies the accounting for some aspects of share-based payment transactions, including the income tax treatment of excess tax benefits and deficiencies, forfeitures, classification of share-based awards as either equity or liabilities, and classification in the statement of cash flows for certain share-based transactions related to tax benefits and payments. ASU 2016-09 is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods, and early adoption is permitted. The Company has elected to early adopt ASU 2016-09 beginning with the second quarter ended April 2, 2016 , resulting in no impact on our financial statements or required disclosures since no outstanding equity awards have vested or been forfeited, and there exists no windfall or shortfall pool of tax benefits. ASU 2016-02 — In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize assets on the balance sheet for the rights and obligations created by all leases with terms greater than 12 months. The standard will also require certain qualitative and quantitative disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. We are currently evaluating the impact the standard will have on our consolidated financial statements. ASU 2015-17 — In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred taxes by requiring deferred tax assets and liabilities to be classified as non-current on the balance sheet. The standard is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. The guidance may be adopted prospectively or retrospectively and early adoption is permitted. As of April 2, 2016 , the adoption of this ASU would result in the reclassification of approximately $8.2 million from current assets to non-current assets. Future impact will be driven by the composition of our deferred tax accounts.

Supplemental Financial Inform19

Supplemental Financial Information (Tables)	6 Months Ended
	Apr. 02, 2016
Condensed Financial Information [Abstract]
Schedule of Inventory, Current	Manufacturing cost includes raw materials, direct labor and manufacturing overhead. Inventory consists of the following: (in thousands of dollars) As of April 2, 2016 As of October 3, 2015 Raw materials $ 55,496 $ 43,471 Work in process 31,017 2,658 Finished goods 6,345 3,051 Total inventory $ 92,858 $ 49,180
Schedule of Product Warranty Liability	Activity in accrued warranty cost (current and long-term portion combined) was as follows for the three and six months ended April 2, 2016 and April 4, 2015 : (in thousands of dollars) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Balance at beginning of period $ 16,583 $ 15,226 $ 17,661 $ 15,559 Add current period accruals 2,119 2,073 3,504 3,922 Current period reductions of accrual (1,934 ) (2,037 ) (4,397 ) (4,219 ) Balance at end of period $ 16,768 $ 15,262 $ 16,768 $ 15,262 Extended Warranty Income Activity in deferred warranty income, for the sale of extended warranties of two to five years , was as follows for the three and six months ended April 2, 2016 and April 4, 2015 : (in thousands of dollars) Three Months Ended Three Months Ended Six Months Ended Six Months Ended Balance at beginning of period $ 14,082 $ 12,075 $ 14,145 $ 12,003 Add current period deferred income 1,308 1,339 2,494 2,506 Current period recognition of income (1,330 ) (1,074 ) (2,579 ) (2,169 ) Balance at end of period $ 14,060 $ 12,340 $ 14,060 $ 12,340
Schedule of Self Insurance Reserve	Total accrued self-insurance liability, comprised of workers compensation and health insurance related claims, was as follows: (in thousands of dollars) As of April 2, 2016 As of October 3, 2015 Current portion $ 3,423 $ 3,534 Long-term portion 2,893 2,786 Total accrued self-insurance $ 6,316 $ 6,320
Schedule of Defined Benefit Plans Disclosures	Components of net periodic pension benefit cost for the three and six months ended April 2, 2016 and April 4, 2015 were as follows: (in thousands of dollars) Three Months Ended April 2, 2016 Three Months Ended April 4, 2015 Six Months Ended April 2, 2016 Six Months Ended April 4, 2015 Interest cost $ 1,410 $ 1,427 $ 2,821 $ 2,854 Expected return on plan assets (1,528 ) (1,600 ) (3,056 ) (3,199 ) Amortization of prior loss 1,197 913 2,394 1,826 Net periodic benefit cost $ 1,079 $ 740 $ 2,159 $ 1,481 Amortization of prior loss, recognized in other comprehensive income 1,197 913 2,394 1,826 Total recognized in net periodic pension benefit cost and other comprehensive income $ (118 ) $ (173 ) $ (235 ) $ (345 )
Equity Method Investments	Summarized unaudited financial information for these periods for Micro Bird is as follows: (in thousands of dollars) Six Months Ended April 2, 2016 Six Months Ended April 4, 2015 Revenues $ 36,886 $ 35,111 Gross profit 5,544 4,470 Operating income 3,230 1,757 Net income 1,643 1,242

Debt (Tables)

Debt (Tables)	6 Months Ended
	Apr. 02, 2016
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Debt consisted of the following: (in thousands of dollars) As of April 2, 2016 As of October 3, 2015 2020 senior term loan, net of discount of $9,725 an d $11,082 $ 182,650 $ 187,168 Total debt $ 182,650 $ 187,168 Less: Current portion of long-term debt 11,750 11,750 Long-term debt, net of current portion $ 170,900 $ 175,418
Schedule of Maturities of Long-term Debt	The schedules of remaining principal maturities for the Senior Credit Facility and the Senior Revolving Credit Facility for the next five fiscal years are as follows: (in thousands of dollars) Year Amount 2016 5,875 2017 11,750 2018 11,750 2019 11,750 2020 151,250 $ 192,375

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Apr. 02, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The tables below present segment net sales and gross profit for the three and six months ended April 2, 2016 and April 4, 2015 : Net sales (in thousands of dollars) Three Months Ended Three Months Ended April 4, 2015 Six Months Ended April 2, 2016 Six Months Ended April 4, 2015 Bus $ 176,921 $ 169,222 $ 295,400 $ 321,206 Parts 14,287 13,796 27,141 27,645 Segment net sales $ 191,208 $ 183,018 $ 322,541 $ 348,851 Gross profit (in thousands of dollars) Three Months Ended April 2, 2016 Three Months Ended April 4, 2015 Six Months Ended April 2, 2016 Six Months Ended April 4, 2015 Bus $ 19,768 $ 17,943 $ 33,514 $ 32,245 Parts 5,346 5,087 10,353 10,263 Segment gross profit $ 25,114 $ 23,030 $ 43,867 $ 42,508
Reconciliation of Operating Profit (Loss) from Segments to Consolidated	The following table is a reconciliation of segment gross profit to consolidated income (loss) before income taxes for the three and six months ended April 2, 2016 and April 4, 2015 : (in thousands of dollars) Three Months Ended Three Months Ended April 4, 2015 Six Months Ended April 2, 2016 Six Months Ended April 4, 2015 Segment gross profit $ 25,114 $ 23,030 $ 43,867 $ 42,508 Adjustments: Selling, general and administrative expenses (18,745 ) (33,950 ) (35,824 ) (49,409 ) Interest expense (4,453 ) (4,761 ) (8,696 ) (9,896 ) Interest income 89 2 111 34 Other income, net — 22 16 33 Income (loss) before income taxes $ 2,005 $ (15,657 ) $ (526 ) $ (16,730 )
Revenue from External Customers by Geographic Areas	Sales are attributable to geographic areas based on customer location and were as follows for the three and six months ended April 2, 2016 and April 4, 2015 : (in thousands of dollars) Three Months Ended Three Months Ended April 4, 2015 Six Months Ended April 2, 2016 Six Months Ended April 4, 2015 United States $ 166,215 $ 152,381 $ 293,017 $ 308,332 Canada 21,531 28,288 24,619 37,447 Rest of world 3,462 2,349 4,905 3,072 Total net sales $ 191,208 $ 183,018 $ 322,541 $ 348,851

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Apr. 02, 2016
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The diluted earnings per share calculation for the three months ended April 2, 2016 is presented in the following table: (in thousands except for share data) Three Months Ended Net income $ 1,394 Less: convertible preferred stock dividend 953 Net income available to common stockholders 441 Basic weighted average shares outstanding 20,986,794 Effect of dilutive restricted stock 24,335 Diluted weighted average shares outstanding 21,011,129 Diluted earnings per share (1) $ 0.02 (1) The calculation excludes convertible preferred stock totaling 4,314,064 shares since the "if-converted" impact would be anti-dilutive.
Schedule of Error Corrections and Prior Period Adjustments	While the adjustments were immaterial, the Company has elected to revise its previously reported basic and diluted earnings per share for all periods in 2015 as presented in the following tables. Basic and diluted earnings per share for the three and six month periods ended April 4, 2015 : Three Months Ended April 4, 2015 Six Months Ended April 4, 2015 (in thousands except for share data) Previous Adjustment Corrected Previous Adjustment Corrected Net income (loss) $ (11,095 ) $ — $ (11,095 ) $ (11,723 ) $ — $ (11,723 ) Preferred stock dividend — 413 413 — 413 413 Net income (loss) available to common shareholders (11,095 ) (413 ) (11,508 ) (11,723 ) (413 ) (12,136 ) Basic earnings (loss) per share (0.52 ) (0.02 ) (0.54 ) (0.54 ) (0.02 ) (0.56 ) Diluted earnings (loss) per share $ (0.52 ) $ (0.02 ) $ (0.54 ) $ (0.54 ) $ (0.02 ) $ (0.56 ) Basic and diluted earnings per share the three and nine month periods ended July 4, 2015: Three Months Ended July 4, 2015 Nine Months Ended July 4, 2015 (in thousands except for share data) Previous Adjustment Corrected Previous Adjustment Corrected Net income (loss) $ 10,683 $ — $ 10,683 $ (1,040 ) $ — $ (1,040 ) Preferred stock dividend 1,239 (212 ) 1,027 1,239 201 1,440 Net income (loss) available to common shareholders 9,444 212 9,656 (2,279 ) (201 ) (2,480 ) Basic earnings (loss) per share 0.46 0.01 0.47 (0.11 ) (0.01 ) (0.12 ) Diluted earnings (loss) per share $ 0.42 $ — $ 0.42 $ (0.11 ) $ (0.01 ) $ (0.12 ) Basic and diluted earnings per share for the year ended October 3, 2015: Year Ended October 3, 2015 (in thousands except for share data) Previous Adjustment Corrected Net income $ 14,932 $ — $ 14,932 Preferred stock dividend 2,247 191 2,438 Net income available to common shareholders 12,685 (191 ) 12,494 Basic earnings per share 0.60 (0.01 ) 0.59 Diluted earnings per share $ 0.59 $ — $ 0.59

Nature of Business and Basis 23

Nature of Business and Basis of Presentation - Narrative (Details) - USD ($)	Feb. 24, 2015	Apr. 04, 2015	Apr. 04, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net borrowings (repayments) under the senior credit facility			$ 0
Scenario, Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Equity in net income of equity method investments, tax expense		$ 200,000	200,000
Proceeds from senior credit facility			10,000,000
Repayments of senior credit facility			$ 10,000,000
School Bus Holdings, Inc.
Business Combination, Separately Recognized Transactions [Line Items]
Cash paid	$ 100,000,000
Shares issued for acquisition (in shares)	12,000,000
Shares issued for acquisition, value	$ 120,000,000

Summary of Significant Accoun24

Summary of Significant Accounting Policies and Recently Issued Accounting Standards - Narrative (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016	Oct. 03, 2015
New Accounting Pronouncement, Early Adoption [Line Items]
Reclassification from deferred tax asset, current	$ (8,166)		$ (9,150)
Reclassification to deferred tax asset, non-current	$ 15,159		$ 15,466
New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncement, Early Adoption [Line Items]
Reclassification from deferred tax asset, current		$ 8,200
Reclassification to deferred tax asset, non-current		$ 8,200

Supplemental Financial Inform25

Supplemental Financial Information - Inventory (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Oct. 03, 2015
Condensed Financial Information [Abstract]
Raw materials	$ 55,496	$ 43,471
Work in process	31,017	2,658
Finished goods	6,345	3,051
Total inventory	$ 92,858	$ 49,180

Supplemental Financial Inform26

Supplemental Financial Information - Product Warranty Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Apr. 02, 2016	Apr. 04, 2015
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 16,583	$ 15,226	$ 17,661	$ 15,559
Add current period accruals	2,119	2,073	3,504	3,922
Current period reductions of accrual	(1,934)	(2,037)	(4,397)	(4,219)
Balance at end of period	$ 16,768	$ 15,262	$ 16,768	$ 15,262

Supplemental Financial Inform27

Supplemental Financial Information - Extended Warranty Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Apr. 02, 2016	Apr. 04, 2015
Movement in Extended Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 14,082	$ 12,075	$ 14,145	$ 12,003
Add current period deferred income	1,308	1,339	2,494	2,506
Current period recognition of income	(1,330)	(1,074)	(2,579)	(2,169)
Balance at end of period	$ 14,060	$ 12,340	$ 14,060	$ 12,340

Supplemental Financial Inform28

Supplemental Financial Information - Self Insurance (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Oct. 03, 2015
Condensed Financial Information [Abstract]
Current portion	$ 3,423	$ 3,534
Long-term portion	2,893	2,786
Total accrued self-insurance	$ 6,316	$ 6,320

Supplemental Financial Inform29

Supplemental Financial Information - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Apr. 02, 2016	Apr. 04, 2015
Product Warranty Liability [Line Items]
Shipping and handling revenue	$ 2.8	$ 2.5	$ 5.3	$ 6.1
Shipping and handling costs	$ 2.5	$ 2.2	$ 4.5	$ 5.4
Minimum
Product Warranty Liability [Line Items]
Standard product warranty, period			1 year
Extended product warranty, period			2 years
Maximum
Product Warranty Liability [Line Items]
Standard product warranty, period			5 years
Extended product warranty, period			5 years

Supplemental Financial Inform30

Supplemental Financial Information - Pension Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Apr. 02, 2016	Apr. 04, 2015
Condensed Financial Information [Abstract]
Interest cost	$ 1,410	$ 1,427	$ 2,821	$ 2,854
Expected return on plan assets	(1,528)	(1,600)	(3,056)	(3,199)
Amortization of prior loss	1,197	913	2,394	1,826
Net periodic benefit cost	1,079	740	2,159	1,481
Amortization of prior loss, recognized in other comprehensive income	1,197	913	2,394	1,826
Total recognized in net periodic pension benefit cost and other comprehensive income	$ (118)	$ (173)	$ (235)	$ (345)

Supplemental Financial Inform31

Supplemental Financial Information - Equity Method Investments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Apr. 02, 2016	Apr. 04, 2015	Oct. 03, 2015
Schedule of Equity Method Investments [Line Items]
Equity investment in affiliate	$ 13,303		$ 13,303		$ 12,505
Equity in net income of non-consolidated affiliates	$ 377	$ 478	$ 798	$ 506
Micro Bird Holdings, Inc. [Member]
Schedule of Equity Method Investments [Line Items]
Equity interest in equity method investment (as a percent)	50.00%		50.00%
Equity investment in affiliate	$ 13,300		$ 13,300		$ 12,500
Equity Method Investment, Summarized Financial Information [Abstract]
Revenues			36,886	35,111
Gross profit			5,544	4,470
Operating income			3,230	1,757
Net income			$ 1,643	$ 1,242

Debt - Schedule of Long-term De

Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Oct. 03, 2015
Debt Instrument [Line Items]
Total debt	$ 182,650	$ 187,168
Less: Current portion of long-term debt	11,750	11,750
Long-term debt, net of current portion	170,900	175,418
Senior Term Loan | 2020 Senior Term Loan
Debt Instrument [Line Items]
Total debt	182,650	187,168
2020 senior term loan, discount	$ 9,725	$ 11,082

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2014	Apr. 02, 2016	Apr. 04, 2015	Apr. 02, 2016	Apr. 04, 2015	Sep. 27, 2014	Oct. 03, 2015
Debt Instrument [Line Items]
Debt issuance cost paid to lenders				$ 12,700,000
Debt issuance costs paid to other third parties				1,600,000
Interest expense		$ 4,500,000	$ 4,800,000	$ 8,700,000	$ 9,900,000
Senior Term Loan | Senior Credit Facility
Debt Instrument [Line Items]
Face amount	$ 235,000,000
Debt term	6 years
Stated interest rate (as a percent)			5.00%		5.00%
Effective interest rate (as a percent)		6.50%		6.50%			6.50%
Long-term line of credit		$ 192,400,000		$ 192,400,000			$ 198,300,000
Weighted average interest rate (as a percent)		8.00%		8.00%			7.80%
Base Rate | Senior Term Loan | Senior Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)				4.50%		4.50%
LIBOR | Senior Term Loan | Senior Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)				5.50%		5.50%
Variable rate floor (as a percent)				0.01%		0.01%
Revolving Credit Facility | Credit Facility | Senior Revolving Credit Facility
Debt Instrument [Line Items]
Debt term				5 years
Maximum borrowing capacity		$ 60,000,000		$ 60,000,000
Commitment fee (as a percent)				0.50%
Long-term line of credit		0		$ 0			$ 0
Revolving Credit Facility | Base Rate | Credit Facility | Senior Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)				4.50%		4.50%
Revolving Credit Facility | LIBOR | Credit Facility | Senior Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)				5.50%		5.50%
Letters of Credit | Credit Facility | Senior Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		15,000,000		$ 15,000,000
Letters of credit, amount outstanding		$ 5,100,000		$ 5,100,000

Debt - Maturity Schedule (Detai

Debt - Maturity Schedule (Details) $ in Thousands	Apr. 02, 2016USD ($)
Long-term Debt, Fiscal Year Maturity
2,016	$ 5,875
2,017	11,750
2,018	11,750
2,019	11,750
2,020	151,250
Total debt	$ 192,375

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Apr. 02, 2016	Apr. 04, 2015
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	48.50%	26.10%	(224.70%)	26.90%
Statutory Federal income tax rate (as a percent)	35.00%	35.00%	35.00%	35.00%
Unrecognized tax benefits	$ 6.4	$ 6.4	$ 6.4	$ 6.4
Accrued interest and penalties	$ 1.7	$ 0.5	$ 1.7	$ 0.5

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 02, 2016USD ($)	Apr. 04, 2015USD ($)	Apr. 02, 2016USD ($)segment	Apr. 04, 2015USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments | segment			2
Net sales	$ 191,208	$ 183,018	$ 322,541	$ 348,851
Gross profit	25,114	23,030	43,867	42,508
United States
Segment Reporting Information [Line Items]
Net sales	166,215	152,381	293,017	308,332
Canada
Segment Reporting Information [Line Items]
Net sales	21,531	28,288	24,619	37,447
Rest of world
Segment Reporting Information [Line Items]
Net sales	3,462	2,349	4,905	3,072
Operating Segments
Segment Reporting Information [Line Items]
Gross profit	25,114	23,030	43,867	42,508
Operating Segments | Bus
Segment Reporting Information [Line Items]
Net sales	176,921	169,222	295,400	321,206
Gross profit	19,768	17,943	33,514	32,245
Operating Segments | Parts
Segment Reporting Information [Line Items]
Net sales	14,287	13,796	27,141	27,645
Gross profit	$ 5,346	$ 5,087	$ 10,353	$ 10,263

Segment Information - Reconcili

Segment Information - Reconciliation of Segment Gross Profit (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Apr. 02, 2016	Apr. 04, 2015
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment gross profit	$ 25,114	$ 23,030	$ 43,867	$ 42,508
Selling, general and administrative expenses	(18,745)	(33,950)	(35,824)	(49,409)
Interest expense	(4,453)	(4,761)	(8,696)	(9,896)
Interest income	89	2	111	34
Other income, net	0	22	16	33
Income (loss) before income taxes	2,005	(15,657)	(526)	(16,730)
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment gross profit	25,114	23,030	43,867	42,508
Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Selling, general and administrative expenses	(18,745)	(33,950)	(35,824)	(49,409)
Interest expense	(4,453)	(4,761)	(8,696)	(9,896)
Interest income	89	2	111	34
Other income, net	$ 0	$ 22	$ 16	$ 33

Business Combination (Details)

Business Combination (Details)	Feb. 24, 2015USD ($)shares	Feb. 28, 2015USD ($)fund$ / sharesshares
Business Acquisition [Line Items]
Number of managed funds | fund		4
School Bus Holdings, Inc.
Business Acquisition [Line Items]
Cash paid	$ 100,000,000
Shares issued for acquisition (in shares) | shares	12,000,000
Shares issued for acquisition, value	$ 120,000,000
School Bus Holdings, Inc. | Common Class A and Series A Convertible Preferred Stock
Business Acquisition [Line Items]
Proceeds from private placement of Common Stock and Series A Convertible Preferred Stock	$ 75,000,000
Backstop Commitment Investor | Hennessy Capital | Common Shares
Business Acquisition [Line Items]
Shares acquired (in shares) | shares	102,750
PIPE Investment | Hennessy Capital | Common Shares
Business Acquisition [Line Items]
Cash paid	$ 40,000,000
Shares acquired (in shares) | shares	400,000
PIPE Investment | Hennessy Capital | Series A Convertible Preferred Stock
Business Acquisition [Line Items]
Subscription agreement purchase amount (in shares) | shares		400,000
Subscription agreement purchase amount		$ 40,000,000
Subscription agreement, possible increased amount (in shares) | shares		500,000
Subscription agreement, possible increased amount		$ 50,000,000
Common/Preferred Investor | Hennessy Capital | Common Shares
Business Acquisition [Line Items]
Cash paid	$ 25,000,000
Backstop purchase agreement, maximum purchase amount		$ 25,000,000
Backstop purchase agreement, maximum purchase amount (in dollars per share) | $ / shares		$ 10
Backstop private placement, price per share (in dollars per share) | $ / shares		$ 10
Shares acquired (in shares) | shares	2,500,000
Common/Preferred Investor | Hennessy Capital | Series A Convertible Preferred Stock
Business Acquisition [Line Items]
Cash paid	$ 10,000,000
Backstop private placement (in shares) | shares		100,000
Backstop private placement		$ 10,000,000
Shares acquired (in shares) | shares	100,000
Hennessy Capital | Common Shares
Business Acquisition [Line Items]
Shares redeemed (in shares) | shares	7,494,700
Shares redeemed, value	$ 75,000,000

Stockholders' Deficit - Common

Stockholders' Deficit - Common and Preferred Stock (Details)	Feb. 24, 2015$ / sharesshares	Apr. 02, 2016$ / sharesshares	Apr. 02, 2016dividend$ / sharesshares	Oct. 03, 2015$ / sharesshares
Class of Stock [Line Items]
Shares authorized		110,000,000	110,000,000
Common stock, shares authorized		100,000,000	100,000,000	100,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.0001	$ 0.0001	$ 0.0001
Preferred stock, shares authorized		10,000,000	10,000,000	10,000,000
Preferred stock, par value (in dollars per share) | $ / shares		$ 0.0001	$ 0.0001	$ 0.0001
Common stock, shares issued		20,992,033	20,992,033	20,874,882
Common stock, shares outstanding		20,992,033	20,992,033	20,874,882
Number of dividends paid to Series A Preferred Stockholders | dividend			3
Common Shares
Class of Stock [Line Items]
Common stock, shares authorized		100,000,000	100,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.0001	$ 0.0001
Common shares sold in private placement (in shares)	2,500,000
Shares issued in private placement, price per share (in dollars per share) | $ / shares	$ 10
Common stock, shares issued		20,992,033	20,992,033
Common stock, shares outstanding		20,992,033	20,992,033
Preferred Shares
Class of Stock [Line Items]
Preferred stock, shares authorized		10,000,000	10,000,000
Preferred stock, par value (in dollars per share) | $ / shares		$ 0.0001	$ 0.0001
Issuance of stock (in shares)	500,000
Liquidation preference per share (in dollars per share) | $ / shares		$ 100	$ 100
Series A Convertible Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares authorized	2,000,000	2,000,000	2,000,000
Shares of common stock issued upon conversion		8.6	8.6
Conversion price (in dollars per share) | $ / shares		$ 11.59	$ 11.59
Dividend rate (as a percent)		7.625%
Undesignated Preferred Stock
Class of Stock [Line Items]
Preferred stock, shares authorized		8,000,000	8,000,000
School Bus Holdings, Inc.
Class of Stock [Line Items]
Shares issued for acquisition (in shares)	12,000,000
Hennessy Capital | Common Shares | Backstop Commitment Investor
Class of Stock [Line Items]
Shares acquired (in shares)	102,750
Common Shares
Class of Stock [Line Items]
Series A Preferred Stock dividend - Common Stock (in shares)			278,022

Stockholders' Deficit - Warrant

Stockholders' Deficit - Warrants (Details) $ / shares in Units, $ in Millions	6 Months Ended
	Apr. 02, 2016$ / shares$ / warrantshares	Feb. 24, 2015USD ($)$ / sharesshares
Public Warrants
Class of Warrant or Right [Line Items]
Warrants outstanding (in shares)	8,809,538
Number of shares received from exercise of each warrant (in shares)	0.5
Exercise price of warrant (in dollars per warrant) | $ / warrant	5.75
Exercise price of warrant (in dollars per share) | $ / shares	$ 11.50
Expiration period	5 years
Common stock trigger price (in dollars per share) | $ / shares	$ 24
Threshold trading days	20 days
Threshold consecutive trading days	30 days
Placement Warrants
Class of Warrant or Right [Line Items]
Warrants outstanding (in shares)	2,690,462	12,125,000
Number of shares received from exercise of each warrant (in shares)	0.5
Exercise price of warrant (in dollars per warrant) | $ / warrant	5.75
Exercise price of warrant (in dollars per share) | $ / shares	$ 11.50	$ 0.50
Warrants outstanding, value | $		$ 6.1

Foreign Exchange Contracts - Na

Foreign Exchange Contracts - Narrative (Details) - Foreign Exchange Swap $ in Millions	Apr. 02, 2016USD ($)
Derivative [Line Items]
Derivative, notional amount	$ 10.8
Other Current Liabilities
Derivative [Line Items]
Fair value of foreign exchange contract, net	$ (0.3)

Earnings Per Share - Summary of

Earnings Per Share - Summary of Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended		9 Months Ended	12 Months Ended
	Apr. 02, 2016	Jul. 04, 2015	Apr. 04, 2015	Apr. 02, 2016	Apr. 04, 2015	Jul. 04, 2015	Oct. 03, 2015
Earnings Per Share [Abstract]
Net income (loss)	$ 1,394	$ 10,683	$ (11,095)	$ (943)	$ (11,723)	$ (1,040)	$ 14,932
Less: convertible preferred stock dividend	953	1,027	413	1,951	413	1,440	2,438
Net income (loss) available to common stockholders	$ 441	$ 9,656	$ (11,508)	$ (2,894)	$ (12,136)	$ (2,480)	$ 12,494
Basic weighted average shares outstanding	20,986,794		21,150,630	20,942,538	21,593,387
Effect of dilutive restricted stock (in shares)	24,335
Diluted weighted average shares outstanding	21,011,129		21,150,630	20,942,538	21,593,387
Diluted earnings per share (in dollars per share)	$ 0.02	$ 0.42	$ (0.54)		$ (0.56)	$ (0.12)	$ 0.59

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details)	3 Months Ended
	Apr. 02, 2016shares
Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	4,314,064

Earnings Per Share - Summary 44

Earnings Per Share - Summary of Immaterial Error Correction (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended		9 Months Ended	12 Months Ended
	Apr. 02, 2016	Jul. 04, 2015	Apr. 04, 2015	Apr. 02, 2016	Apr. 04, 2015	Jul. 04, 2015	Oct. 03, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income (loss)	$ 1,394	$ 10,683	$ (11,095)	$ (943)	$ (11,723)	$ (1,040)	$ 14,932
Preferred stock dividend	953	1,027	413	1,951	413	1,440	2,438
Net income (loss) available to common stockholders	$ 441	$ 9,656	$ (11,508)	$ (2,894)	$ (12,136)	$ (2,480)	$ 12,494
Basic earnings (loss) per share (in dollars per share)		$ 0.47	$ (0.54)		$ (0.56)	$ (0.12)	$ 0.59
Diluted earnings (loss) per share (in dollars per share)	$ 0.02	$ 0.42	$ (0.54)		$ (0.56)	$ (0.12)	$ 0.59
Previous
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income (loss)		$ 10,683	$ (11,095)		$ (11,723)	$ (1,040)	$ 14,932
Preferred stock dividend		1,239	0		0	1,239	2,247
Net income (loss) available to common stockholders		$ 9,444	$ (11,095)		$ (11,723)	$ (2,279)	$ 12,685
Basic earnings (loss) per share (in dollars per share)		$ 0.46	$ (0.52)		$ (0.54)	$ (0.11)	$ 0.60
Diluted earnings (loss) per share (in dollars per share)		$ 0.42	$ (0.52)		$ (0.54)	$ (0.11)	$ 0.59
Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net income (loss)		$ 0	$ 0		$ 0	$ 0	$ 0
Preferred stock dividend		(212)	413		413	201	191
Net income (loss) available to common stockholders		$ 212	$ (413)		$ (413)	$ (201)	$ (191)
Basic earnings (loss) per share (in dollars per share)		$ 0.01	$ (0.02)		$ (0.02)	$ (0.01)	$ (0.01)
Diluted earnings (loss) per share (in dollars per share)		$ 0	$ (0.02)		$ (0.02)	$ (0.01)	$ 0