Blue Bird (BLBD) 10-Q 13 Feb 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jan. 04, 2020	Feb. 07, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	Blue Bird Corp
Entity Central Index Key	0001589526
Current Fiscal Year End Date	--10-03
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jan. 4, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		26,839,825
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Shell Company	false
Entity Current Reporting Status	Yes

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 04, 2020	Sep. 28, 2019
Current assets
Cash and cash equivalents	$ 7,700	$ 70,959
Accounts receivable, net	5,918	10,537
Inventories	138,627	78,830
Other current assets	11,853	11,765
Total current assets	164,098	172,091
Property, plant and equipment, net	104,341	100,058
Goodwill	18,825	18,825
Intangible assets, net	53,948	54,720
Equity investment in affiliate	11,275	11,106
Deferred tax assets	3,725	3,600
Finance lease right-of-use assets	4,439	4,638
Other assets	283	375
Total assets	360,934	365,413
Current liabilities
Accounts payable	75,045	102,266
Warranty	8,475	9,161
Accrued expenses	23,904	28,697
Deferred warranty income	8,424	8,632
Finance lease obligations	724	716
Other current liabilities	7,764	10,310
Current portion of long-term debt	9,900	9,900
Total current liabilities	134,236	169,682
Long-term liabilities
Revolving credit facility	35,000	0
Long-term debt	170,973	173,226
Warranty	13,256	13,182
Deferred warranty income	14,320	15,413
Deferred tax liabilities	271	168
Finance lease obligations	3,734	3,921
Other liabilities	12,085	12,108
Pension	44,915	45,524
Total long-term liabilities	294,554	263,542
Guarantees, commitments and contingencies (Note 6)
Stockholders' deficit
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 0 shares issued at January 4, 2020 and September 28, 2019	0	0
Common stock, $0.0001 par value, 100,000,000 shares authorized, 26,511,641 and 26,476,336 shares outstanding at January 4, 2020 and September 28, 2019, respectively	3	3
Additional paid-in capital	84,302	84,271
Accumulated deficit	(46,052)	(45,649)
Accumulated other comprehensive loss	(55,827)	(56,154)
Treasury stock, at cost, 1,782,568 shares at January 4, 2020 and September 28, 2019	(50,282)	(50,282)
Total stockholders' deficit	(67,856)	(67,811)
Total liabilities and stockholders' deficit	$ 360,934	$ 365,413

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jan. 04, 2020	Sep. 28, 2019
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	0	0
Preferred Stock, Liquidation Preference, Value	$ 0	$ 0
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 Outstanding	26,511,641	26,476,336
Treasury Stock, Common, Shares	1,782,568	1,782,568

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Jan. 04, 2020	Dec. 29, 2018
Income Statement [Abstract]
Net sales	$ 153,217	$ 154,926
Cost of goods sold	131,917	135,816
Gross profit	21,300	19,110
Operating expenses
Selling, general and administrative expenses	20,495	17,273
Operating profit	805	1,837
Interest expense	(1,897)	(2,874)
Interest income	0	9
Other income (expense), net	194	(349)
Loss before income taxes	(898)	(1,377)
Income tax benefit	326	236
Equity in net income (loss) of non-consolidated affiliate	169	(79)
Net loss	$ (403)	$ (1,220)
Earnings per share:
Basic weighted average shares outstanding	26,481,441	26,302,865
Diluted weighted average shares outstanding	26,481,441	26,302,865
Basic earnings per share (in dollars per share)	$ (0.02)	$ (0.05)
Diluted earnings per share (in dollars per share)	$ (0.02)	$ (0.05)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Jan. 04, 2020	Dec. 29, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (403)	$ (1,220)
Other comprehensive income (loss), net of tax
Net change in defined benefit pension plan	327	524
Net unrealized loss on cash flow hedges	0	(814)
Total other comprehensive income (loss)	327	(290)
Comprehensive loss	$ (76)	$ (1,510)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jan. 04, 2020	Dec. 29, 2018
Cash flows from operating activities
Net loss	$ (403)	$ (1,220)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	3,457	2,193
Non-cash interest expense	618	213
Share-based compensation	1,093	852
Equity in net income of affiliate	(169)	79
(Gain) loss on disposal of fixed assets	(121)	30
Deferred taxes	(125)	267
Amortization of deferred actuarial pension losses	430	689
Foreign currency hedges	0	109
Changes in assets and liabilities:
Accounts receivable	4,619	13,793
Inventories	(59,797)	(26,884)
Other assets	3	(4,805)
Accounts payable	(25,071)	(28,299)
Accrued expenses, pension and other liabilities	(10,522)	(5,225)
Total adjustments	(85,585)	(46,988)
Total cash used in operating activities	(85,988)	(48,208)
Cash flows from investing activities
Cash paid for fixed assets	(9,287)	(10,787)
Proceeds from sale of fixed assets	150	0
Total cash used in investing activities	(9,137)	(10,787)
Cash flows from financing activities
Borrowings under the revolving credit facility	35,000	20,000
Borrowings under the senior term loan	0	50,000
Repayments under the senior term loan	(2,475)	(2,475)
Principal payments on finance leases	(225)
Cash paid for employee taxes on vested restricted shares and stock option exercises	(806)	(243)
Proceeds from exercises of warrants	372	620
Tender offer repurchase of common stock and preferred stock	0	50,349
Total cash provided by financing activities	31,866	17,553
Change in cash and cash equivalents	(63,259)	(41,442)
Cash and cash equivalents, beginning of period	70,959	60,260
Cash and cash equivalents, end of period	7,700	18,818
Supplemental disclosures of cash flow information
Interest paid, net of interest received	2,235	2,430
Income tax paid, net of tax refunds	0	9
Non-cash investing and financing activities:
Changes in accounts payable for capital additions to property, plant and equipment	(2,150)	(1,575)
Employee taxes payable on vested restricted shares and stock option exercises	(572)	0
Cashless exercise of stock options	195	0
Right-of-use assets obtained in exchange for operating lease obligations	0	8,040
Conversion of preferred stock into common stock	$ 0	$ 9,264

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Deficit Statement - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In-Capital	Convertible Preferred Stock	Accumulated Other Comprehensive Loss	Accumulated Deficit	Treasury Stock
Beginning Balance (in shares) at Sep. 29, 2018		27,259,262		93,000			0
Beginning Balance at Sep. 29, 2018	$ (28,336)	$ 3	$ 70,023	$ 9,300	$ (38,427)	$ (69,235)	$ 0
Warrant Exercises (in shares)		54,435
Warrant exercises	620		620
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures		20,513
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	(239)		(239)
Stock option activity (in shares)		331
Stock option activity	(4)		(4)
Share-based compensation expense	821		821
Tender offer share repurchases (in shares)		1,782,568		364			1,782,568
Tender offer share repurchases	(50,349)		(52)	$ (36)			$ (50,261)
Preferred stock conversion (in shares)		799,615		92,636
Preferred stock conversion	0		9,264	$ (9,264)
Net loss	(1,220)					(1,220)
Other comprehensive income, net of tax	(290)				(290)
Ending Balance (in shares) at Dec. 29, 2018		26,351,588		0			1,782,568
Ending Balance at Dec. 29, 2018	(79,711)	$ 3	80,433	$ 0	(38,717)	(71,169)	$ (50,261)
Beginning Balance (in shares) at Sep. 28, 2019		26,476,336		0			1,782,568
Beginning Balance at Sep. 28, 2019	(67,811)	$ 3	84,271	$ 0	(56,154)	(45,649)	$ (50,282)
Warrant Exercises (in shares)		32,321
Warrant exercises	372		372
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures		2,915
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures	(1,368)		(1,368)
Stock option activity (in shares)		69
Stock option activity	(10)		(10)
Share-based compensation expense	1,037		1,037
Net loss	(403)					(403)
Other comprehensive income, net of tax	327				327
Ending Balance (in shares) at Jan. 04, 2020		26,511,641		0			1,782,568
Ending Balance at Jan. 04, 2020	$ (67,856)	$ 3	$ 84,302	$ 0	$ (55,827)	$ (46,052)	$ (50,282)

Nature of Business and Basis of

Nature of Business and Basis of Presentation	3 Months Ended
	Jan. 04, 2020
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 Blue Bird Body Company, a wholly-owned subsidiary of Blue Bird Corporation, 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 Macon, 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 unaudited 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 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 2020 , there is a total of 53 weeks. The first quarters of fiscal 2020 and 2019 included 14 weeks and 13 weeks, respectively. In the opinion of management, all adjustments considered necessary for a fair presentation 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 September 28, 2019 was derived from the Company’s audited financial statements but does 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 September 28, 2019 as set forth in the Company's 2019 Form 10-K filed on December 12, 2019 . 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	3 Months Ended
	Jan. 04, 2020
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 2019 Form 10-K, filed with the SEC on December 12, 2019 . 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 three months ended January 4, 2020 , except as follows (and as discussed in the Recently Adopted Accounting Standards section of this Note 2 ): Amortization of Deferred Pension Losses Historically, the Company has amortized deferred losses from our frozen defined benefit pension plan accounted for under ASC 715, Compensation - Retirement Benefits, over the expected remaining employment period of the participants who remained employed with the Company. ASC 715 states that if all or almost all of a plan's participants are inactive, the average remaining life expectancy of the inactive participants shall be used to amortize the unrecognized net gain or loss instead of the average remaining service period of active plan participants. In the first quarter of 2020, the ratio of active (employed) to inactive participants in our plan declined to less than 10% , a figure we believe meets the definition of almost all participants as inactive. Accordingly, we have changed the amortization period from approximately seven years in 2019 to approximately 23 years in 2020. Future amortization periods (remaining life expectancy) will be determined based on the participant and actuarial data at that time . Recently Adopted Accounting Standards ASU 2018-02 – In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). This ASU provides guidance on a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for the effect of the tax rate change resulting from the Tax Cuts and Jobs Act (H.R.1) (the "Tax Act"). The amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. We adopted this ASU, in the first quarter of fiscal 2020, and did not elect to reclassify the income tax effects of the Tax Act from AOCI to retained earnings. We use a specific identification approach to release the income tax effects in AOCI. ASU 2019-12 – In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the process for calculating interim (intraperiod) income taxes and the accounting for deferred tax liabilities for foreign equity-method investments, among other simplifications. We have early adopted this standard effective the first quarter of fiscal 2020. The impacts of adopting this standard were not material to us. Recently Issued Accounting Standards Other than the adoptions of ASU 2019-12 and ASU 2018-02 noted above, we believe that no new accounting guidance was issued during the three months ended January 4, 2020 that is relevant to our financial statements.

Supplemental Financial Informat

Supplemental Financial Information	3 Months Ended
	Jan. 04, 2020
Condensed Financial Information [Abstract]
Supplemental Financial Information	3. Supplemental Financial Information Inventories The following table presents the components of inventories at the dates indicated: (in thousands of dollars) January 4, 2020 September 28, 2019 Raw materials $ 113,186 $ 60,033 Work in process 23,614 16,663 Finished goods 1,827 2,134 Total inventories $ 138,627 $ 78,830 Product Warranties The following table reflects activity in accrued warranty cost (current and long-term portions combined) for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Balance at beginning of period $ 22,343 $ 22,646 Add current period accruals 1,501 1,590 Current period reductions of accrual (2,113 ) (2,378 ) Balance at end of period $ 21,731 $ 21,858 Extended Warranties The following table reflects activity in deferred warranty income (current and long-term portions combined), for the sale of extended warranties of two to five years , for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Balance at beginning of period $ 24,045 $ 23,191 Add current period deferred income 951 1,366 Current period recognition of income (2,252 ) (2,025 ) Balance at end of period $ 22,744 $ 22,532 The outstanding balance of deferred warranty income in the table above is considered a "contract liability", and represents a performance obligation of the Company that we satisfy over the term of the arrangement but for which we have been paid in full at the time the warranty was sold. We expect to recognize $6.4 million of the outstanding contract liability during the remainder of fiscal 2020 , $6.9 million in fiscal 2021 , and the remaining balance thereafter. Self-Insurance The following table reflects our total accrued self-insurance liability, comprised of workers compensation and health insurance related claims, at the dates indicated: (in thousands of dollars) January 4, 2020 September 28, 2019 Current portion $ 3,061 $ 2,933 Long-term portion 1,844 1,775 Total accrued self-insurance $ 4,905 $ 4,708 The current and long-term portions of the accrued self-insurance liability are reflected in accrued expenses and other liabilities, respectively, on the Condensed Consolidated Balance Sheets. Shipping and Handling Revenues Shipping and handling revenues were $3.5 million and $3.3 million for the three months ended January 4, 2020 and December 29, 2018 , respectively. The related cost of goods sold was $3.1 million and $3.0 million for the three months ended January 4, 2020 and December 29, 2018 , respectively. Pension Expense Components of net periodic pension benefit cost were as follows for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Interest cost $ 1,237 $ 1,512 Expected return on plan assets (1,846 ) (1,905 ) Amortization of prior loss 430 689 Net periodic benefit cost $ (179 ) $ 296 Amortization of prior loss, recognized in other comprehensive income 430 689 Total recognized in net periodic pension benefit cost and other comprehensive income $ (609 ) $ (393 ) Warrants At January 4, 2020 , there were a total of 683,674 warrants outstanding to purchase 341,837 shares of our Common Stock. The warrants expire on February 24, 2020. Derivative Instruments We are charged variable rates of interest on our indebtedness outstanding under the Amended Credit Agreement (defined below) which exposes us to fluctuations in interest rates. On October 24, 2018, the Company entered into a four -year interest rate collar with a $150.0 million notional value with an effective date of November 30, 2018. The collar was entered into in order to partially mitigate our exposure to interest rate fluctuations on our variable rate debt. The collar establishes a range where we will pay the counterparty if the three-month LIBOR rate falls below the established floor rate of 1.5% , and the counterparty will pay us if the three-month LIBOR rate exceeds the ceiling rate of 3.3% . The collar settles quarterly through the termination date of September 30, 2022. No payments or receipts are exchanged on the interest rate collar contracts unless interest rates rise above or fall below the contracted ceiling or floor rates. Changes in the interest rate collar fair value are recorded in interest expense as the collar does not qualify for hedge accounting. At January 4, 2020 , the fair value of the interest rate collar contract was $(0.8) million and is included in "other current liabilities" on the Condensed Consolidated Balance Sheets. The fair value of the interest rate collar is a Level 2 fair value measurement, based on quoted prices of similar items in active markets.

Debt

Debt	3 Months Ended
	Jan. 04, 2020
Debt Disclosure [Abstract]
Debt	4. Debt Term debt consisted of the following at the dates indicated: (in thousands of dollars) January 4, 2020 September 28, 2019 2023 term loan, net of deferred financing costs of $2,902 and $3,124, respectively $ 180,873 $ 183,126 Less: current portion of long-term debt 9,900 9,900 Long-term debt, net of current portion $ 170,973 $ 173,226 Term loans are recognized on the Condensed Consolidated Balance Sheets at the unpaid principal balance, and are not subject to fair value measurement; however, given the variable rates on the loans, the Company estimates that the unpaid principal balance approximates fair value. If measured at fair value in the financial statements, the term loans would be classified as Level 2 in the fair value hierarchy. At January 4, 2020 and September 28, 2019 , $183.8 million and $186.3 million , respectively, were outstanding on the term loans. At January 4, 2020 and September 28, 2019 , the stated interest rates on the term loans were 4.0% and 4.4% , respectively. At January 4, 2020 and September 28, 2019 , the weighted-average annual effective interest rates for the term loans were 4.5% and 5.0% , respectively, which includes amortization of the deferred financing costs. At January 4, 2020 , $35.0 million in borrowings were outstanding on the Revolving Credit Facility and $6.9 million of Letters of Credit were outstanding; therefore, the Company would have been able to borrow $58.1 million on the revolving line of credit. Interest expense on all indebtedness was $1.9 million and $2.9 million for the three months ended January 4, 2020 and December 29, 2018 , respectively. The schedule of remaining principal payments through maturity for total debt is as follows: (in thousands of dollars) Year Principal Payments 2020 $ 7,425 2021 9,900 2022 14,850 2023 186,600 Total remaining principal payments $ 218,775

Income Taxes

Income Taxes	3 Months Ended
	Jan. 04, 2020
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. Three Months The effective tax rate for the three month period ended January 4, 2020 was 36.3% , which differed from the 2019 statutory federal income tax rate of 21% . The difference is mainly due to normal tax rate items, such as federal and state tax credits (net of valuation allowance), which were partially offset by net non-deductible compensation expenses and other tax adjustments. The effective tax rate for the three month period ended December 29, 2018 was 17.1% , which differed from the statutory federal tax rate of 21% . The difference is mainly due to normal tax rate benefit items, such as federal and state tax credits (net of valuation allowance), which were partially offset by non-deductible share-based compensation expenses and other tax adjustments.

Guarantees, Commitments and Con

Guarantees, Commitments and Contingencies	3 Months Ended
	Jan. 04, 2020
Commitments and Contingencies Disclosure [Abstract]
Guarantees, Commitments and Contingencies	6. Guarantees, Commitments and Contingencies Litigation At January 4, 2020 , 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 effect 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 pending environmental matters will not have a material adverse effect on the Company’s financial statements. Guarantees In the ordinary course of business, we may provide guarantees for certain transactions entered into by our dealers. At January 4, 2020 , we had a $3.0 million guarantee outstanding which relates to a guarantee of indebtedness for a term loan with remaining maturity up to 3.0 years . The $3.0 million represents the estimated maximum amount we would be required to pay upon default of all guaranteed indebtedness, and we believe the likelihood of required performance to be remote. At January 4, 2020 , $0.4 million was included in other current liabilities on our Condensed Consolidated Balance Sheets for the estimated fair value of the guarantee. Lease Commitments We have operating and finance leases for office space, warehouse space, or a combination of both. Our leases have a remaining term of 5.5 to 7.9 years with the option to extend leases for up to five years.

Segment Information

Segment Information	3 Months Ended
	Jan. 04, 2020
Segment Reporting [Abstract]
Segment Information	7. Segment Information We manage our business in two operating segments: (i) the Bus segment, which includes the manufacturing and assembly of buses to be sold to a variety of customers across the United States, Canada and in international markets; and (ii) the Parts segment, which consists primarily of the purchase of parts from third parties to be sold to dealers within the Company’s network. The tables below present segment net sales and gross profit for the periods presented: Net sales Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Bus (1) $ 134,772 $ 139,210 Parts (1) 18,445 15,716 Segment net sales $ 153,217 $ 154,926 (1) Parts segment revenue includes $1.2 million and $0.6 million for the three months ended January 4, 2020 and December 29, 2018 , respectively, related to inter-segment sales of parts that were eliminated by the Bus segment upon consolidation. Gross profit Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Bus $ 14,867 $ 13,515 Parts 6,433 5,595 Segment gross profit $ 21,300 $ 19,110 The following table is a reconciliation of segment gross profit to consolidated loss before income taxes for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Segment gross profit $ 21,300 $ 19,110 Adjustments: Selling, general and administrative expenses (20,495 ) (17,273 ) Interest expense (1,897 ) (2,874 ) Interest income — 9 Other income (expense), net 194 (349 ) Loss before income taxes $ (898 ) $ (1,377 ) Sales are attributable to geographic areas based on customer location and were as follows for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 United States $ 136,266 $ 151,485 Canada 13,156 3,076 Rest of world 3,795 365 Total net sales $ 153,217 $ 154,926

Revenue

Revenue	3 Months Ended
	Jan. 04, 2020
Revenue from Contract with Customer [Abstract]
Revenue from Contract with Customer	8. Revenue The following table disaggregates revenue by product category for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Diesel buses $ 76,750 $ 89,820 Alternative fuel buses (1) 51,734 43,081 Other (2) 6,843 6,802 Parts 17,890 15,223 Net sales $ 153,217 $ 154,926 (1) Includes buses sold with any fuel source other than diesel (e.g. gasoline, propane, CNG, electric). (2) Includes shipping and handling revenue, extended warranty income, surcharges, chassis, and bus shell sales.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Jan. 04, 2020
Earnings Per Share [Abstract]
Earnings Per Share	9. Earnings Per Share The following table presents the earnings per share computation for the periods presented: Three Months Ended (in thousands except for share data) January 4, 2020 December 29, 2018 Numerator: Net loss $ (403 ) $ (1,220 ) Denominator: Weighted-average common shares outstanding 26,481,441 26,302,865 Effect of dilutive securities (1) — — Weighted-average shares and dilutive potential common shares 26,481,441 26,302,865 Earnings per share: Basic loss per share $ (0.02 ) $ (0.05 ) Diluted loss per share $ (0.02 ) $ (0.05 ) (1) Potentially dilutive securities representing 1.3 million and 1.5 million shares of common stock were excluded from the computation of diluted earnings per share for the three months ended January 4, 2020 and December 29, 2018 , respectively, because their effect would have been antidilutive.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	3 Months Ended
	Jan. 04, 2020
Equity [Abstract]
Accumulated Other Comprehensive Loss	10. Accumulated Other Comprehensive Loss The following table provides information on changes in accumulated other comprehensive loss for the periods presented: Three Months Ended (in thousands of dollars) Defined Benefit Pension Plan Cash Flow Hedges (Effective Portion) Total January 4, 2020 Beginning Balance $ (56,154 ) $ — $ (56,154 ) Amounts reclassified from other comprehensive loss and included in earnings 430 — 430 Total other comprehensive income, before taxes 430 — 430 Income tax expense (103 ) — (103 ) Ending Balance January 4, 2020 $ (55,827 ) $ — $ (55,827 ) December 29, 2018 Beginning Balance $ (38,427 ) $ — $ (38,427 ) Other comprehensive income, gross — (1,130 ) (1,130 ) Amounts reclassified from other comprehensive loss and included in earnings 689 59 748 Total other comprehensive income (loss), before taxes 689 (1,071 ) (382 ) Income tax (expense) benefit (165 ) 257 92 Ending Balance December 29, 2018 $ (37,903 ) $ (814 ) $ (38,717 )

Nature of Business and Basis _2

Nature of Business and Basis of Presentation (Policies)	3 Months Ended
	Jan. 04, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited 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 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 2020 , there is a total of 53 weeks. The first quarters of fiscal 2020 and 2019 included 14 weeks and 13 weeks, respectively. In the opinion of management, all adjustments considered necessary for a fair presentation 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 September 28, 2019 was derived from the Company’s audited financial statements but does 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 September 28, 2019 as set forth in the Company's 2019 Form 10-K filed on December 12, 2019 .
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.
Amortization of Deferred Pension Losses	Amortization of Deferred Pension Losses Historically, the Company has amortized deferred losses from our frozen defined benefit pension plan accounted for under ASC 715, Compensation - Retirement Benefits, over the expected remaining employment period of the participants who remained employed with the Company. ASC 715 states that if all or almost all of a plan's participants are inactive, the average remaining life expectancy of the inactive participants shall be used to amortize the unrecognized net gain or loss instead of the average remaining service period of active plan participants. In the first quarter of 2020, the ratio of active (employed) to inactive participants in our plan declined to less than 10% , a figure we believe meets the definition of almost all participants as inactive. Accordingly, we have changed the amortization period from approximately seven years in 2019 to approximately 23 years in 2020. Future amortization periods (remaining life expectancy) will be determined based on the participant and actuarial data at that time .
Recently Issued Accounting Standards and Recently Adopted Accounting Standards	Recently Adopted Accounting Standards ASU 2018-02 – In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220). This ASU provides guidance on a reclassification from accumulated other comprehensive income ("AOCI") to retained earnings for the effect of the tax rate change resulting from the Tax Cuts and Jobs Act (H.R.1) (the "Tax Act"). The amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statement users. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. We adopted this ASU, in the first quarter of fiscal 2020, and did not elect to reclassify the income tax effects of the Tax Act from AOCI to retained earnings. We use a specific identification approach to release the income tax effects in AOCI. ASU 2019-12 – In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the process for calculating interim (intraperiod) income taxes and the accounting for deferred tax liabilities for foreign equity-method investments, among other simplifications. We have early adopted this standard effective the first quarter of fiscal 2020. The impacts of adopting this standard were not material to us. Recently Issued Accounting Standards Other than the adoptions of ASU 2019-12 and ASU 2018-02 noted above, we believe that no new accounting guidance was issued during the three months ended January 4, 2020 that is relevant to our financial statements.

Supplemental Financial Inform_2

Supplemental Financial Information (Tables)	3 Months Ended
	Jan. 04, 2020
Condensed Financial Information [Abstract]
Inventories	The following table presents the components of inventories at the dates indicated: (in thousands of dollars) January 4, 2020 September 28, 2019 Raw materials $ 113,186 $ 60,033 Work in process 23,614 16,663 Finished goods 1,827 2,134 Total inventories $ 138,627 $ 78,830
Product Warranties	The following table reflects activity in accrued warranty cost (current and long-term portions combined) for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Balance at beginning of period $ 22,343 $ 22,646 Add current period accruals 1,501 1,590 Current period reductions of accrual (2,113 ) (2,378 ) Balance at end of period $ 21,731 $ 21,858 Extended Warranties The following table reflects activity in deferred warranty income (current and long-term portions combined), for the sale of extended warranties of two to five years , for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Balance at beginning of period $ 24,045 $ 23,191 Add current period deferred income 951 1,366 Current period recognition of income (2,252 ) (2,025 ) Balance at end of period $ 22,744 $ 22,532
Self-Insurance	The following table reflects our total accrued self-insurance liability, comprised of workers compensation and health insurance related claims, at the dates indicated: (in thousands of dollars) January 4, 2020 September 28, 2019 Current portion $ 3,061 $ 2,933 Long-term portion 1,844 1,775 Total accrued self-insurance $ 4,905 $ 4,708
Pension Expense	Components of net periodic pension benefit cost were as follows for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Interest cost $ 1,237 $ 1,512 Expected return on plan assets (1,846 ) (1,905 ) Amortization of prior loss 430 689 Net periodic benefit cost $ (179 ) $ 296 Amortization of prior loss, recognized in other comprehensive income 430 689 Total recognized in net periodic pension benefit cost and other comprehensive income $ (609 ) $ (393 )

Debt (Tables)

Debt (Tables)	3 Months Ended
	Jan. 04, 2020
Debt Disclosure [Abstract]
Schedule of Term Debt Instruments	Term debt consisted of the following at the dates indicated: (in thousands of dollars) January 4, 2020 September 28, 2019 2023 term loan, net of deferred financing costs of $2,902 and $3,124, respectively $ 180,873 $ 183,126 Less: current portion of long-term debt 9,900 9,900 Long-term debt, net of current portion $ 170,973 $ 173,226
Schedule of Maturities of Long-term Debt	The schedule of remaining principal payments through maturity for total debt is as follows: (in thousands of dollars) Year Principal Payments 2020 $ 7,425 2021 9,900 2022 14,850 2023 186,600 Total remaining principal payments $ 218,775

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Jan. 04, 2020
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The tables below present segment net sales and gross profit for the periods presented: Net sales Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Bus (1) $ 134,772 $ 139,210 Parts (1) 18,445 15,716 Segment net sales $ 153,217 $ 154,926 (1) Parts segment revenue includes $1.2 million and $0.6 million for the three months ended January 4, 2020 and December 29, 2018 , respectively, related to inter-segment sales of parts that were eliminated by the Bus segment upon consolidation. Gross profit Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Bus $ 14,867 $ 13,515 Parts 6,433 5,595 Segment gross profit $ 21,300 $ 19,110
Reconciliation of Operating Profit (Loss) from Segments to Consolidated	The following table is a reconciliation of segment gross profit to consolidated loss before income taxes for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Segment gross profit $ 21,300 $ 19,110 Adjustments: Selling, general and administrative expenses (20,495 ) (17,273 ) Interest expense (1,897 ) (2,874 ) Interest income — 9 Other income (expense), net 194 (349 ) Loss before income taxes $ (898 ) $ (1,377 )
Revenue from External Customers by Geographic Areas	Sales are attributable to geographic areas based on customer location and were as follows for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 United States $ 136,266 $ 151,485 Canada 13,156 3,076 Rest of world 3,795 365 Total net sales $ 153,217 $ 154,926

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Jan. 04, 2020
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table disaggregates revenue by product category for the periods presented: Three Months Ended (in thousands of dollars) January 4, 2020 December 29, 2018 Diesel buses $ 76,750 $ 89,820 Alternative fuel buses (1) 51,734 43,081 Other (2) 6,843 6,802 Parts 17,890 15,223 Net sales $ 153,217 $ 154,926 (1) Includes buses sold with any fuel source other than diesel (e.g. gasoline, propane, CNG, electric). (2) Includes shipping and handling revenue, extended warranty income, surcharges, chassis, and bus shell sales

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Jan. 04, 2020
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table presents the earnings per share computation for the periods presented: Three Months Ended (in thousands except for share data) January 4, 2020 December 29, 2018 Numerator: Net loss $ (403 ) $ (1,220 ) Denominator: Weighted-average common shares outstanding 26,481,441 26,302,865 Effect of dilutive securities (1) — — Weighted-average shares and dilutive potential common shares 26,481,441 26,302,865 Earnings per share: Basic loss per share $ (0.02 ) $ (0.05 ) Diluted loss per share $ (0.02 ) $ (0.05 ) (1) Potentially dilutive securities representing 1.3 million and 1.5 million shares of common stock were excluded from the computation of diluted earnings per share for the three months ended January 4, 2020 and December 29, 2018 , respectively, because their effect would have been antidilutive.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	3 Months Ended
	Jan. 04, 2020
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table provides information on changes in accumulated other comprehensive loss for the periods presented: Three Months Ended (in thousands of dollars) Defined Benefit Pension Plan Cash Flow Hedges (Effective Portion) Total January 4, 2020 Beginning Balance $ (56,154 ) $ — $ (56,154 ) Amounts reclassified from other comprehensive loss and included in earnings 430 — 430 Total other comprehensive income, before taxes 430 — 430 Income tax expense (103 ) — (103 ) Ending Balance January 4, 2020 $ (55,827 ) $ — $ (55,827 ) December 29, 2018 Beginning Balance $ (38,427 ) $ — $ (38,427 ) Other comprehensive income, gross — (1,130 ) (1,130 ) Amounts reclassified from other comprehensive loss and included in earnings 689 59 748 Total other comprehensive income (loss), before taxes 689 (1,071 ) (382 ) Income tax (expense) benefit (165 ) 257 92 Ending Balance December 29, 2018 $ (37,903 ) $ (814 ) $ (38,717 )

Summary of Significant Accoun_2

Summary of Significant Accounting Policies and Recently Issued Accounting Standards Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jan. 04, 2020	Oct. 03, 2020	Sep. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Percentage of active participants (less than)	10.00%
Amortization period of deferred pension losses	7 years
Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Adoption of new revenue recognition standard (ASC 606) adjustment			$ (714)
Scenario, Forecast | Subsequent Event
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Amortization period of deferred pension losses		23 years

Supplemental Financial Inform_3

Supplemental Financial Information - Inventories (Details) - USD ($) $ in Thousands	Jan. 04, 2020	Sep. 28, 2019
Condensed Financial Information [Abstract]
Raw materials	$ 113,186	$ 60,033
Work in process	23,614	16,663
Finished goods	1,827	2,134
Total inventories	$ 138,627	$ 78,830

Supplemental Financial Inform_4

Supplemental Financial Information - Product Warranty Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 04, 2020	Dec. 29, 2018
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 22,343	$ 22,646
Add current period accruals	1,501	1,590
Current period reductions of accrual	(2,113)	(2,378)
Balance at end of period	$ 21,731	$ 21,858

Supplemental Financial Inform_5

Supplemental Financial Information - Extended Warranty Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 04, 2020	Dec. 29, 2018
Movement in Extended Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 24,045	$ 23,191
Add current period deferred income	951	1,366
Current period recognition of income	(2,252)	(2,025)
Balance at end of period	$ 22,744	$ 22,532

Supplemental Financial Inform_6

Supplemental Financial Information Remaining Performance Obligation (Details) $ in Millions	Jan. 04, 2020USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-30
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 6.4
Revenue, performance obligation, (in years)	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-09-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 6.9
Revenue, performance obligation, (in years)	1 year

Supplemental Financial Inform_7

Supplemental Financial Information - Self Insurance (Details) - USD ($) $ in Thousands	Jan. 04, 2020	Sep. 28, 2019
Condensed Financial Information [Abstract]
Current portion	$ 3,061	$ 2,933
Long-term portion	1,844	1,775
Total accrued self-insurance	$ 4,905	$ 4,708

Supplemental Financial Inform_8

Supplemental Financial Information - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 04, 2020	Dec. 29, 2018
Product Warranty Liability [Line Items]
Shipping and handling revenues	$ 3.5	$ 3.3
Shipping and handling cost of goods sold	$ 3.1	$ 3
Warrants outstanding (in shares)	683,674
Common stock shares that may be called by warrants (in shares)	341,837
Minimum
Product Warranty Liability [Line Items]
Extended product warranty, period	2 years
Maximum
Product Warranty Liability [Line Items]
Extended product warranty, period	5 years

Supplemental Financial Inform_9

Supplemental Financial Information - Pension Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 04, 2020	Dec. 29, 2018
Condensed Financial Information [Abstract]
Interest cost	$ 1,237	$ 1,512
Expected return on plan assets	(1,846)	(1,905)
Amortization of prior loss	430	689
Net periodic benefit cost	(179)	296
Amortization of prior loss, recognized in other comprehensive income	430	689
Total recognized in net periodic pension benefit cost and other comprehensive income	$ (609)	$ (393)

Supplemental Financial Infor_10

Supplemental Financial Information Supplemental Financial Information - Derivative Instruments (Details) - USD ($) $ in Millions	Nov. 30, 2018	Jan. 04, 2020
Condensed Financial Information [Abstract]
Interest rate collar	4 years
Derivative, notional amount	$ 150
Floor interest rate	1.50%
Ceiling interest rate	3.30%
Fair value of interest rate contract		$ (0.8)

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 04, 2020	Dec. 29, 2018	Sep. 28, 2019
Debt Instrument [Line Items]
Interest expense	$ 1,900	$ 2,900
Senior Term Loan | Senior Credit Facility
Debt Instrument [Line Items]
Long-term line of credit	$ 183,800		$ 186,300
Stated interest rate (as a percent)	4.00%		4.40%
Weighted average effective interest rate (as a percent)	4.50%		5.00%
Revolving Credit Facility | Credit Facility | Senior Revolving Credit Facility
Debt Instrument [Line Items]
Long-term line of credit	$ 35,000
Letters of Credit | Credit Facility | Senior Revolving Credit Facility
Debt Instrument [Line Items]
Letters of credit, amount outstanding	6,900
Remaining borrowing capacity	$ 58,100

Debt - Schedule of Long-term De

Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Jan. 04, 2020	Sep. 28, 2019
Debt Instrument [Line Items]
Current portion of long-term debt	$ 9,900	$ 9,900
Long-term debt	170,973	173,226
Senior Term Loan | 2023 Term Loan
Debt Instrument [Line Items]
Total debt	180,873	183,126
Deferred financing costs	$ 2,902	$ 3,124

Debt - Maturity Schedule (Detai

Debt - Maturity Schedule (Details) $ in Thousands	Jan. 04, 2020USD ($)
Long-term Debt, Fiscal Year Maturity
2020	$ 7,425
2021	9,900
2022	14,850
2023	186,600
Total debt	$ 218,775

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 04, 2020	Dec. 29, 2018
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	36.30%	17.10%
Statutory Federal income tax rate (as a percent)	21.00%	21.00%
Income tax benefit, due to lapse of statute of limitations		$ 8.1
Benefit related to prior year tax returns		1.7
Additional valuation allowance		0.5
Income tax expense to reflect U.S. Tax reform		2.4
Increase in uncertain tax position		$ 1.1

Guarantees, Commitments and C_2

Guarantees, Commitments and Contingencies Gaurantees, Commitments and Contingencies - Narrative (Details) $ in Millions	3 Months Ended
	Jan. 04, 2020USD ($)
Lessee, Lease, Description [Line Items]
Maximum exposure of guarantor	$ 3
Fair value of guarantees	$ 0.4
Renewal term	5 years
Minimum
Lessee, Lease, Description [Line Items]
Operating lease term	5 years 6 months
Maximum
Lessee, Lease, Description [Line Items]
Operating lease term	7 years 11 months
Senior Term Loan | 2023 Term Loan
Lessee, Lease, Description [Line Items]
Remaining maturity on term loan (up to)	3 years

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended
	Jan. 04, 2020USD ($)segment	Dec. 29, 2018USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments | segment	2
Net sales	$ 153,217	$ 154,926
Gross profit	21,300	19,110
United States
Segment Reporting Information [Line Items]
Net sales	136,266	151,485
Canada
Segment Reporting Information [Line Items]
Net sales	13,156	3,076
Rest of world
Segment Reporting Information [Line Items]
Net sales	3,795	365
Operating Segments
Segment Reporting Information [Line Items]
Gross profit	21,300	19,110
Operating Segments | Bus
Segment Reporting Information [Line Items]
Net sales	134,772	139,210
Gross profit	14,867	13,515
Operating Segments | Parts
Segment Reporting Information [Line Items]
Net sales	18,445	15,716
Gross profit	6,433	5,595
Intersegment Eliminations | Parts
Segment Reporting Information [Line Items]
Net sales	$ 1,200	$ 600

Segment Information - Reconcili

Segment Information - Reconciliation of Segment Gross Profit (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 04, 2020	Dec. 29, 2018
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment gross profit	$ 21,300	$ 19,110
Selling, general and administrative expenses	(20,495)	(17,273)
Interest expense	(1,897)	(2,874)
Interest income	0	9
Other income (expense), net	194	(349)
Loss before income taxes	(898)	(1,377)
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment gross profit	21,300	19,110
Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Selling, general and administrative expenses	(20,495)	(17,273)
Interest expense	(1,897)	(2,874)
Interest income	0	9
Other income (expense), net	$ 194	$ (349)

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 04, 2020	Dec. 29, 2018	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Net sales	$ 153,217	$ 154,926
Diesel buses
Disaggregation of Revenue [Line Items]
Net sales	76,750	89,820
Alternative fuel buses
Disaggregation of Revenue [Line Items]
Net sales	51,734	43,081
Other
Disaggregation of Revenue [Line Items]
Net sales	6,843	6,802
Parts
Disaggregation of Revenue [Line Items]
Net sales	$ 17,890	$ 15,223
Accounting Standards Update 2014-09
Disaggregation of Revenue [Line Items]
Adoption of new revenue recognition standard (ASC 606) adjustment			$ (714)

Earnings Per Share - Summary of

Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jan. 04, 2020	Dec. 29, 2018
Earnings Per Share [Abstract]
Net loss	$ (403)	$ (1,220)
Weighted average common shares outstanding (in shares)	26,481,441	26,302,865
Basic earnings per share (in dollars per share)	$ (0.02)	$ (0.05)
Diluted weighted average shares outstanding	26,481,441	26,302,865
Diluted earnings per share (in dollars per share)	$ (0.02)	$ (0.05)

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended
	Jan. 04, 2020	Dec. 29, 2018
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	1.3	1.5

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Jan. 04, 2020	Dec. 29, 2018
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	$ (67,811)
Other comprehensive income, gross		$ (1,130)
Amounts reclassified from other comprehensive loss and included in earnings	430	748
Total amount recognized in other comprehensive loss	430	(382)
Income tax (expense) benefit	(103)	92
Ending Balance	(67,856)
Defined Benefit Pension Plan
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(56,154)	(38,427)
Other comprehensive income, gross		0
Amounts reclassified from other comprehensive loss and included in earnings	430	689
Total amount recognized in other comprehensive loss	430	689
Income tax (expense) benefit	(103)	(165)
Ending Balance	(55,827)	(37,903)
Cash Flow Hedges (Effective Portion)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	0	0
Other comprehensive income, gross		(1,130)
Amounts reclassified from other comprehensive loss and included in earnings	0	59
Total amount recognized in other comprehensive loss	0	(1,071)
Income tax (expense) benefit	0	257
Ending Balance	0	(814)
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(56,154)	(38,427)
Ending Balance	$ (55,827)	$ (38,717)

Uncategorized Items - blbd-2019

Label	Element	Value
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (714,000)