Blue Bird (BLBD) 10-Q 12 May 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Apr. 03, 2021	May 07, 2021
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 3, 2021
Document Transition Report	false
Entity File Number	001-36267
Entity Registrant Name	BLUE BIRD CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-3891989
Entity Address, Address Line One	3920 Arkwright Road
Entity Address, Address Line Two	2nd Floor
Entity Address, City or Town	Macon
Entity Address, State or Province	GA
Entity Address, Postal Zip Code	31210
City Area Code	478
Local Phone Number	822-2801
Title of 12(b) Security	Common stock, $0.0001 par value
Trading Symbol	BLBD
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,153,872
Entity Central Index Key	0001589526
Current Fiscal Year End Date	--10-02
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 03, 2021	Oct. 03, 2020
Current assets
Cash and cash equivalents	$ 18,722	$ 44,507
Accounts receivable, net	6,502	7,623
Inventories	91,960	56,523
Other current assets	7,141	8,243
Total current assets	124,325	116,896
Property, plant and equipment, net	105,597	103,372
Goodwill	18,825	18,825
Intangible assets, net	50,448	51,632
Equity investment in affiliate	13,969	14,320
Deferred tax assets	4,828	4,365
Finance lease right-of-use assets	6,234	6,983
Other assets	1,757	1,022
Total assets	325,983	317,415
Current liabilities
Accounts payable	80,843	57,602
Warranty	7,438	8,336
Accrued expenses	15,775	15,773
Deferred warranty income	8,038	8,540
Finance lease obligations	1,303	1,280
Other current liabilities	10,052	10,217
Current portion of long-term debt	12,375	9,900
Total current liabilities	135,824	111,648
Long-term liabilities
Long-term debt	156,433	164,204
Warranty	11,743	13,038
Deferred warranty income	12,686	14,048
Deferred tax liabilities	477	254
Finance lease obligations	5,208	5,879
Other liabilities	15,076	14,315
Pension	41,124	47,259
Total long-term liabilities	242,747	258,997
Guarantees, commitments and contingencies (Note 6)
Stockholders' deficit
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 0 shares outstanding at April 3, 2021 and October 3, 2020	0	0
Common stock, $0.0001 par value, 100,000,000 shares authorized, 27,153,872 and 27,048,404 shares outstanding at April 3, 2021 and October 3, 2020, respectively	3	3
Additional paid-in capital	91,078	88,910
Accumulated deficit	(35,697)	(33,464)
Accumulated other comprehensive loss	(57,690)	(58,397)
Treasury stock, at cost, 1,782,568 shares at April 3, 2021 and October 3, 2020	(50,282)	(50,282)
Total stockholders' deficit	(52,588)	(53,230)
Total liabilities and stockholders' deficit	$ 325,983	$ 317,415

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Apr. 03, 2021	Oct. 03, 2020
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	27,153,872	27,048,404
Treasury Stock, Common, Shares	1,782,568	1,782,568

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 03, 2021	Apr. 04, 2020	Apr. 03, 2021	Apr. 04, 2020
Income Statement [Abstract]
Net sales	$ 164,698	$ 255,412	$ 295,132	$ 408,629
Cost of goods sold	146,205	231,243	262,171	363,160
Gross profit	18,493	24,169	32,961	45,469
Operating expenses
Selling, general and administrative expenses	17,361	19,858	32,051	40,353
Operating profit	1,132	4,311	910	5,116
Interest expense	(2,334)	(5,658)	(4,264)	(7,555)
Interest income	0	0	1	0
Other income, net	422	180	1,065	374
Loss on debt modification	0	0	(598)	0
Loss before income taxes	(780)	(1,167)	(2,886)	(2,065)
Income tax benefit	483	817	1,004	1,143
Equity in net loss of non-consolidated affiliate	(322)	(289)	(351)	(120)
Net loss	$ (619)	$ (639)	$ (2,233)	$ (1,042)
Earnings per share:
Basic weighted average shares outstanding	27,118,452	26,866,822	27,089,342	26,667,860
Diluted weighted average shares outstanding	27,118,452	26,866,822	27,089,342	26,667,860
Basic earnings per share (in dollars per share)	$ (0.02)	$ (0.02)	$ (0.08)	$ (0.04)
Diluted earnings per share (in dollars per share)	$ (0.02)	$ (0.02)	$ (0.08)	$ (0.04)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 03, 2021	Apr. 04, 2020	Apr. 03, 2021	Apr. 04, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (619)	$ (639)	$ (2,233)	$ (1,042)
Other comprehensive income, net of tax:
Net change in defined benefit pension plan	354	326	707	653
Total other comprehensive income	354	326	707	653
Comprehensive loss	$ (265)	$ (313)	$ (1,526)	$ (389)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Apr. 03, 2021	Apr. 04, 2020
Cash flows from operating activities
Net loss	$ (2,233)	$ (1,042)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	6,811	7,086
Non-cash interest expense	1,458	2,926
Share-based compensation	1,595	2,297
Equity in net loss of non-consolidated affiliate	351	120
Loss (gain) on disposal of fixed assets	21	(121)
Deferred taxes	(463)	(291)
Amortization of deferred actuarial pension losses	931	859
Loss on debt modification	598	0
Changes in assets and liabilities:
Accounts receivable	1,121	3,455
Inventories	(35,437)	(65,112)
Other assets	1,363	(1,350)
Accounts payable	22,832	17,782
Accrued expenses, pension and other liabilities	(10,146)	(14,818)
Total adjustments	(8,965)	(47,167)
Total cash used in operating activities	(11,198)	(48,209)
Cash flows from investing activities
Cash paid for fixed assets	(7,007)	(14,251)
Proceeds from sale of fixed assets	0	150
Total cash used in investing activities	(7,007)	(14,101)
Cash flows from financing activities
Borrowings under the revolving credit facility	0	30,000
Repayments under the senior term loan	(4,950)	(4,950)
Principal payments on finance leases	(765)	(540)
Cash paid for debt costs	(2,476)	0
Net cash received (paid) for exercises and employee taxes on vested restricted shares and stock option exercises	611	(3,313)
Proceeds from exercises of warrants	0	4,240
Total cash (used in) provided by financing activities	(7,580)	25,437
Change in cash and cash equivalents	(25,785)	(36,873)
Cash and cash equivalents, beginning of period	44,507	70,959
Cash and cash equivalents, end of period	18,722	34,086
Supplemental disclosures of cash flow information
Interest paid, net of interest received	6,119	4,807
Income tax paid, net of tax refunds	46	327
Non-cash investing and financing activities:
Changes in accounts payable for capital additions to property, plant and equipment	409	(4,041)
Cashless exercise of stock options	0	5,246
Right-of-use assets obtained in exchange for finance lease obligations	0	1,942
Right-of-use assets obtained in exchange for operating lease obligations	$ 107	$ 0

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Deficit Statement - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In-Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Treasury Stock
Beginning Balance (in shares) at Sep. 28, 2019		26,476,336				1,782,568
Beginning Balance at Sep. 28, 2019	$ (67,811)	$ 3	$ 84,271	$ (56,154)	$ (45,649)	$ (50,282)
Warrant exercises (in shares)		368,712
Warrant exercises	4,240		4,240
Restricted stock activity (in shares)		73,592
Restricted stock activity	(1,368)		(1,368)
Stock option activity (in shares)		108,632
Stock option activity	(1,945)		(1,945)
Share-based compensation expense	2,210		2,210
Net loss	(1,042)				(1,042)
Other comprehensive income, net of tax	653			653
Ending Balance (in shares) at Apr. 04, 2020		27,027,272				1,782,568
Ending Balance at Apr. 04, 2020	(65,063)	$ 3	87,408	(55,501)	(46,691)	$ (50,282)
Beginning Balance (in shares) at Jan. 04, 2020		26,511,641				1,782,568
Beginning Balance at Jan. 04, 2020	(67,856)	$ 3	84,302	(55,827)	(46,052)	$ (50,282)
Warrant exercises (in shares)		336,391
Warrant exercises	3,868		3,868
Restricted stock activity (in shares)		108,563
Stock option activity (in shares)		70,677
Stock option activity	(1,935)		(1,935)
Share-based compensation expense	1,173		1,173
Net loss	(639)				(639)
Other comprehensive income, net of tax	326
Other comprehensive income, net of tax	326			326
Ending Balance (in shares) at Apr. 04, 2020		27,027,272				1,782,568
Ending Balance at Apr. 04, 2020	(65,063)	$ 3	87,408	(55,501)	(46,691)	$ (50,282)
Beginning Balance (in shares) at Oct. 03, 2020		27,048,404				1,782,568
Beginning Balance at Oct. 03, 2020	(53,230)	$ 3	88,910	(58,397)	(33,464)	$ (50,282)
Restricted stock activity (in shares)		36,404
Restricted stock activity	(518)		(518)
Stock option activity (in shares)		69,064
Stock option activity	1,128		1,128
Share-based compensation expense	1,558		1,558
Net loss	(2,233)				(2,233)
Other comprehensive income, net of tax	707			707
Ending Balance (in shares) at Apr. 03, 2021		27,153,872				1,782,568
Ending Balance at Apr. 03, 2021	(52,588)	$ 3	91,078	(57,690)	(35,697)	$ (50,282)
Beginning Balance (in shares) at Jan. 02, 2021		27,091,808				1,782,568
Beginning Balance at Jan. 02, 2021	(54,230)	$ 3	89,171	(58,044)	(35,078)	$ (50,282)
Stock option activity (in shares)		62,064
Stock option activity	1,055		1,055
Share-based compensation expense	852		852
Net loss	(619)				(619)
Other comprehensive income, net of tax	354			354
Ending Balance (in shares) at Apr. 03, 2021		27,153,872				1,782,568
Ending Balance at Apr. 03, 2021	$ (52,588)	$ 3	$ 91,078	$ (57,690)	$ (35,697)	$ (50,282)

Nature of Business and Basis of

Nature of Business and Basis of Presentation	6 Months Ended
	Apr. 03, 2021
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” relate to Blue Bird Corporation and its wholly-owned subsidiaries, unless the context specifically indicates otherwise. COVID-19 Beginning at the end of our second quarter of fiscal year 2020 and continuing through the second quarter of fiscal year 2021, the novel coronavirus known as "COVID-19" spread throughout the world, resulting in a global pandemic. The pandemic significantly impacted our financial results for the second half of fiscal year 2020, which continued into the first half of fiscal year 2021, causing, among other matters, lower customer orders for both buses and bus parts, supply disruptions, higher rates of absenteeism among our hourly production workforce and a temporary shutdown of manufacturing in April 2020 and March 2021. The continuing development and fluidity of the pandemic precludes any prediction as to the ultimate severity of the adverse impacts on our business, financial condition, results of operations, and liquidity. A prolonged economic downturn resulting from the continuing pandemic would likely have a material adverse impact on our financial results. 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 accounting principles generally accepted in the United States of America (“GAAP”) 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. Fiscal year 2021, which ends on October 2, 2021, consists of 52 weeks while fiscal year 2020, which ended on October 3, 2020, consisted of 53 weeks. The second quarters of fiscal years 2021 and 2020 both included 13 weeks. The six month periods in fiscal years 2021 and 2020 included 26 and 27 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 GAAP for complete financial statements. The Condensed Consolidated Balance Sheet data as of October 3, 2020 was derived from the Company’s audited financial statements but does not include all disclosures required by GAAP. 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, 2020 as set forth in the Company's 2020 Form 10-K filed on December 17, 2020. Use of Estimates and Assumptions The preparation of financial statements in accordance with 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; the allowance for doubtful accounts; potential impairment of long-lived assets, goodwill and intangible assets; and the accounting for self-insurance reserves, warranty reserves, pension obligations, income taxes, environmental liabilities and contingencies. Future events, including the extent and duration of COVID-19 related economic impacts, 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

Summary of Significant Accounti

Summary of Significant Accounting Policies and Recently Issued Accounting Standards	6 Months Ended
	Apr. 03, 2021
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 2020 Form 10-K, filed with the SEC on December 17, 2020. 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 3, 2021. Recently Adopted Accounting Standards ASU 2016-13 In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires that credit losses on most financial instruments measured at amortized cost and certain other financial instruments be measured using an expected credit loss model. Under this model, entities are required to estimate credit losses over the entire contractual term of the financial instrument from the date of initial recognition of the instrument. As required, the Company adopted this guidance on October 4, 2020, the first day of the Company’s first quarter of fiscal year 2021. While a number of financial instruments are subject to the scope of ASU 2016-13, its provisions applied only to the Company’s accounts receivable. Given that the Company extends credit with short contractual terms on only a small percentage of its sales, the adoption of the expected credit loss model did not have any impact on the Company’s condensed consolidated financial statements. Recently Issued Accounting Standards ASU 2020-04 On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , providing temporary guidance to ease the potential burden in accounting for reference rate reform primarily resulting from the discontinuation of LIBOR (defined below), which was initially expected to occur on December 31, 2021. The amendments in ASU 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. ASU 2021-01 On January 7, 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope , which refines the scope of Accounting Standards Codification Topic ("ASC") 848, Reference Rate Reform , and clarifies some of its guidance as part of the FASB’s ongoing monitoring of global reference rate reform activities. The ASU permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, computing variation margin settlements, and calculating price alignment interest in connection with reference rate reform activities under way in global financial markets. The above amendments are effective for all entities from March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments to contract modifications on a (i) full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or (ii) prospective basis from any date within an interim period that includes or is subsequent to March 12, 2020 through the date that the interim financial statements are issued or available to be issued. On March 5, 2021, the Intercontinental Exchange, Inc. ("ICE") Benchmark Administration ("IBA"), the administrator of the United States Dollar London Interbank Offering Rate ("LIBOR"), issued a statement, following the completion of a formal consultation process, reaffirming the preliminary announcement it made on November 30, 2020, to cease publication of (i) 1 week and 2 month LIBOR subsequent to December 31, 2021 and (ii) the overnight and 1, 3, 6 and 12 month LIBOR tenors subsequent to June 30, 2023. The IBA’s statement regarding such cessation dates primarily resulted from a majority of LIBOR panel banks communicating to the IBA that they would be unwilling to continue contributing to the relevant LIBOR settings after such dates. As a result, the IBA determined that it would be unable to publish the relevant LIBOR settings on a representative basis after such dates. The United Kingdom Financial Conduct Authority ("FCA"), which regulates the IBA, confirmed that, based on information it received from LIBOR panel banks, it does not expect that any LIBOR settings will become unrepresentative before the announced cessation dates summarized above. Currently, the Company’s interest rate collar, which is not designated in a hedge accounting relationship, and Amended Credit Agreement (defined below) are the only contracts that reference an interest rate index (i.e., 3 month LIBOR) that is subject to the reference rate reform guidance included in the above amendments. While the termination date of the interest rate collar, September 30, 2022, occurs prior to the July 1, 2023 date on which the IBA will no longer publish 3 month LIBOR, the Amended Credit Agreement matures on September 13, 2023, approximately 2.5 months subsequent to such cessation date. However, as management does not currently forecast that the Company will have sufficient cash to fund the term loan borrowings that are expected to be outstanding under the terms of the Amended Credit Agreement upon maturity, it is expecting to refinance such borrowings prior to maturity, with such refinancing likely to occur before the July 1, 2023 LIBOR cessation date. Therefore, it is highly likely that neither the interest

Supplemental Financial Informat

Supplemental Financial Information	6 Months Ended
	Apr. 03, 2021
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) April 3, 2021 October 3, 2020 Raw materials $ 59,663 $ 43,272 Work in process 28,297 8,989 Finished goods 4,000 4,262 Total inventories $ 91,960 $ 56,523 Product Warranties The following table reflects activity in accrued warranty cost (current and long-term portions combined) for the periods presented: Three Months Ended Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Balance at beginning of period $ 19,707 $ 21,731 $ 21,374 $ 22,343 Add current period accruals 1,589 2,628 2,892 4,129 Current period reductions of accrual (2,115) (2,961) (5,085) (5,074) Balance at end of period $ 19,181 $ 21,398 $ 19,181 $ 21,398 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 Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Balance at beginning of period $ 21,732 $ 22,744 $ 22,588 $ 24,045 Add current period deferred income 1,341 2,338 2,500 3,289 Current period recognition of income (2,349) (2,134) (4,364) (4,386) Balance at end of period $ 20,724 $ 22,948 $ 20,724 $ 22,948 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 $4.3 million of the outstanding contract liability during the remainder of fiscal 2021, $6.9 million in fiscal 2022, 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) April 3, 2021 October 3, 2020 Current portion $ 2,947 $ 2,993 Long-term portion 1,939 1,962 Total accrued self-insurance $ 4,886 $ 4,955 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 $3.2 million and $4.1 million for the three months ended April 3, 2021 and April 4, 2020, respectively, and $5.9 million and $7.6 million for the six months ended April 3, 2021 and April 4, 2020, respectively. The related cost of goods sold was $2.7 million and $3.5 million for the three months ended April 3, 2021 and April 4, 2020, respectively, and $5.1 million and $6.6 million for the six months ended April 3, 2021 and April 4, 2020, respectively. Pension Expense Components of net periodic pension benefit cost were as follows for the periods presented: Three Months Ended Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Interest cost $ 1,057 $ 1,237 $ 2,114 $ 2,474 Expected return on plan assets (1,944) (1,846) (3,888) (3,692) Amortization of prior loss 466 429 931 859 Net periodic benefit cost $ (421) $ (180) $ (843) $ (359) Amortization of prior loss, recognized in other comprehensive income 466 429 931 859 Total recognized in net periodic pension benefit cost and other comprehensive income $ (887) $ (609) $ (1,774) $ (1,218) 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 whereby 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 contract unless interest rates rise above or fall below the contracted ceiling or floor rates. During the six months ended April 3, 2021, the three month LIBOR rate fell below the established floor, which required $1.0 million in total cash payments to the counterparty. Additionally, $0.5 million was paid in the first quarter of fiscal year 2021 for amounts owed to the counterparty that were accrued in the fourth quarter of fiscal 2020. Changes in the interest rate collar fair value are recorded in interest expense as the collar does not qualify for hedge accounting. At April 3, 2021, the fair value of the interest rate collar contract was $(2.9) 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	6 Months Ended
	Apr. 03, 2021
Debt Disclosure [Abstract]
Debt	4. Debt On December 4, 2020, the Company executed the third amendment to the Credit Agreement, dated as of December 12, 2016; as amended by that certain first amendment to the Credit Agreement, dated as of September 13, 2018 (the "First Amended Credit Agreement") and second amendment to the Credit Agreement, dated as of May 7, 2020 (the "Second Amended Credit Agreement'); and as further amended by the third amendment (the "Third Amended Credit Agreement" and collectively, the "Amended Credit Agreement"). The Third Amended Credit Agreement, among other things, provides for certain temporary amendments to the Credit Agreement from the third amendment effective date through and including the first date on which (a)(i) a compliance certificate is timely delivered with respect to a fiscal quarter ending on or after March 31, 2022 demonstrating compliance with certain financial performance covenants for such fiscal quarter (the “Limited Availability Period”), or (ii) the Borrower elects to terminate the Limited Availability Period; and (b) the absence of a default or event of default. Amendments to the financial performance covenants provide that during the Limited Availability Period, a higher maximum total net leverage ratio is permitted, and requires the Company to maintain liquidity (in the form of undrawn availability under the Revolving Credit Facility and unrestricted cash and cash equivalents) of at least $15.0 million. For the duration between the fiscal quarter ending on or around December 31, 2020 and the fiscal quarter ending on or around September 30, 2021 that falls within the Limited Availability Period, a quarterly minimum consolidated EBITDA covenant applies instead of a maximum total net leverage ratio. The pricing grid in the First Amended Credit Agreement, which is based on the ratio of the Company’s consolidated net debt to consolidated EBITDA, remains unchanged. However, during the Limited Availability Period, an additional margin of 0.50% applies. During the Limited Availability Period, the Borrower is required to prepay existing revolving loans and, if undrawn and unreimbursed letters of credit exceed $7.0 million, cash collateralize letters of credit if unrestricted cash and cash equivalents exceed $20.0 million, as determined on a semimonthly basis. Any issuance, amendment, renewal, or extension of credit during the Limited Availability Period may not cause unrestricted cash and cash equivalents to exceed $20.0 million, or cause the aggregate outstanding Revolving Credit Facility principal to exceed $100.0 million. The Third Amended Credit Agreement also implements a cap on permissible investments, restricted payments, certain payments of indebtedness and the fair market value of all assets subject to permitted dispositions during the Limited Availability Period. For the duration of the Limited Availability Period, there are additional monthly reporting requirements and requirements relating to subordination agreements and intercreditor arrangements for certain other indebtedness and liens subject to administrative agent approval. The Company incurred approximately $2.5 million in lender fees and other issuance costs relating to the third amendment. Of such total, $1.1 million and $0.9 million was capitalized within other assets and long-term debt (as a contra-balance), respectively, on the Condensed Consolidated Balance Sheets and will be amortized as an adjustment to interest expense on a straight-line basis and utilizing the effective interest method, respectively, until maturity of the Credit Agreement. The remaining $0.5 million was recorded to loss on debt modification on the Condensed Consolidated Statements of Operations. In conjunction with executing the third amendment, previously capitalized lender fees and other issuance costs incurred in prior periods totaling $0.1 million were expensed to loss on debt modification on the Condensed Consolidated Statements of Operations. Term debt consisted of the following at the dates indicated: (in thousands of dollars) April 3, 2021 October 3, 2020 2023 term loan, net of deferred financing costs of $2,592 and $2,246, respectively $ 168,808 $ 174,104 Less: current portion of long-term debt 12,375 9,900 Long-term debt, net of current portion $ 156,433 $ 164,204 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 April 3, 2021 and October 3, 2020, $171.4 million and $176.4 million, respectively, were outstanding on the term loans. At April 3, 2021 and October 3, 2020, the stated interest rates on the term loans were 3.8% and 3.5%, respectively. At April 3, 2021 and October 3, 2020, the weighted-average annual effective interest rates for the term loans were 6.2% and 4.1%, respectively, which includes amortization of the deferred financing costs. At April 3, 2021, $6.9 million of Letters of Credit were outstanding, of which $2.7 million reduces the availability on the revolving line of credit. No borrowings were outstanding on the Revolving Credit Facility; therefore, the Company would have been able to borrow $97.3 million on the revolving line of credit. Interest expense on all indebtedness was $2.3 million and $5.7 million for the three months ended April 3, 2021 and April 4, 2020, respectively, and $4.3 million and $7.6 million for the six months ended April 3, 2021 and April 4, 2020, respectively. The schedule of remaining principal payments through maturity for total debt is as follows: (in thousands of dollars) Fiscal Year Principal Payments 2021 $ 4,950 2022 14,850 2023 151,600 Total remaining principal payments $ 171,400

Income Taxes

Income Taxes	6 Months Ended
	Apr. 03, 2021
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 in the United States. In periods where our operating income approximates or is equal to break-even, the effective tax rates for quarter-to-date and full-year periods may not be meaningful due to discrete period items. On December 27, 2020, the President of the United States signed the Consolidated Appropriations Act (the "Act") into law. While the Act has broad income tax implications for many companies stemming from COVID-19 relief and various tax extenders, it did not have a material impact on our reported income tax accounts. Three Months The effective tax rate for the three months ended April 3, 2021 was 61.9%, which differed from the statutory federal income tax rate of 21%. The difference is mainly due to discrete period tax benefit from share-based compensation expenses, but also due to normal tax rate items, including impacts from state taxes. The effective tax rate for the three months ended April 4, 2020 was 70.0%, which differed from the statutory federal tax rate of 21%. The difference is mainly due to discrete period tax benefit from share-based compensation expenses, but also due to normal tax rate items, such as the benefit from federal and state tax credits (net of valuation allowance), which were partially offset by net non-deductible compensation expenses and other tax adjustments. Six Months The effective tax rate for the six months ended April 3, 2021 was 34.8%, which differed from the statutory federal income tax rate of 21%. The difference is mainly due to discrete period tax benefit from share-based compensation expenses, but also due to normal tax rate items, including impacts from state taxes. The effective tax rate for the six months ended April 4, 2020 was 55.4%, which differed from the statutory federal tax rate of 21%. The difference is mainly due to discrete period tax benefit from share-based compensation expenses, but also due to normal tax rate items, such as the benefit from federal and state tax credits (net of valuation allowance), which were partially offset by net non-deductible compensation expenses and other tax adjustments.

Guarantees, Commitments and Con

Guarantees, Commitments and Contingencies	6 Months Ended
	Apr. 03, 2021
Commitments and Contingencies Disclosure [Abstract]
Guarantees, Commitments and Contingencies	6. Guarantees, Commitments and Contingencies Litigation At April 3, 2021, 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 ma erials 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

Segment Information

Segment Information	6 Months Ended
	Apr. 03, 2021
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 Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Bus (1) $ 150,307 $ 238,697 $ 268,141 $ 373,469 Parts (1) 14,391 16,715 26,991 35,160 Segment net sales $ 164,698 $ 255,412 $ 295,132 $ 408,629 (1) Parts segment revenue includes $1.2 million and $0.9 million for the three months ended April 3, 2021 and April 4, 2020, respectively, and $2.0 million and $1.5 million for the six months ended April 3, 2021 and April 4, 2020, respectively, related to inter-segment sales of parts that was eliminated by the Bus segment upon consolidation. Gross profit Three Months Ended Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Bus $ 13,084 $ 17,938 $ 22,794 $ 32,805 Parts 5,409 6,231 10,167 12,664 Segment gross profit $ 18,493 $ 24,169 $ 32,961 $ 45,469 The following table is a reconciliation of segment gross profit to consolidated loss before income taxes for the periods presented: Three Months Ended Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Segment gross profit $ 18,493 $ 24,169 $ 32,961 $ 45,469 Adjustments: Selling, general and administrative expenses (17,361) (19,858) (32,051) (40,353) Interest expense (2,334) (5,658) (4,264) (7,555) Interest income — — 1 — Other income, net 422 180 1,065 374 Loss on debt modification — — (598) — Loss before income taxes $ (780) $ (1,167) $ (2,886) $ (2,065) Sales are attributable to geographic areas based on customer location and were as follows for the periods presented: Three Months Ended Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 United States $ 137,359 $ 232,477 $ 256,436 $ 368,743 Canada 23,719 22,746 34,185 35,902 Rest of world 3,620 189 4,511 3,984 Total net sales $ 164,698 $ 255,412 $ 295,132 $ 408,629

Revenue

Revenue	6 Months Ended
	Apr. 03, 2021
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 Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Diesel buses $ 76,115 $ 113,649 $ 135,825 $ 190,399 Alternative power buses (1) 65,955 113,057 118,256 164,791 Other (2) 8,585 12,505 14,745 19,348 Parts 14,043 16,201 26,306 34,091 Net sales $ 164,698 $ 255,412 $ 295,132 $ 408,629 (1) Includes buses sold with any power source other than diesel (e.g., gasoline, propane, compressed natural gas "CNG", electric). (2) Includes shipping and handling revenue, extended warranty income, surcharges and chassis and bus shell sales.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Apr. 03, 2021
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 Six Months Ended (in thousands except for share data) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Numerator: Net loss $ (619) $ (639) $ (2,233) $ (1,042) Denominator: Weighted-average common shares outstanding 27,118,452 26,866,822 27,089,342 26,667,860 Effect of dilutive securities (1) — — — — Weighted-average shares and dilutive potential common shares 27,118,452 26,866,822 27,089,342 26,667,860 Earnings per share: Basic loss per share $ (0.02) $ (0.02) $ (0.08) $ (0.04) Diluted loss per share $ (0.02) $ (0.02) $ (0.08) $ (0.04) (1) Potentially dilutive securities representing 0.7 million and 0.5 million shares of common stock were excluded from the computation of diluted earnings per share for April 3, 2021 and April 4, 2020, respectively, as their effect would have been antidilutive.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Apr. 03, 2021
Equity [Abstract]
Accumulated Other Comprehensive Loss	10. Accumulated Other Comprehensive Loss The following table provides information on changes in accumulated other comprehensive loss ("AOCL") for the periods presented: Three Months Ended Six Months Ended (in thousands of dollars) Defined Benefit Pension Plan Total AOCL Defined Benefit Pension Plan Total AOCL April 3, 2021 Beginning Balance $ (58,044) $ (58,044) $ (58,397) $ (58,397) Amounts reclassified and included in earnings 466 466 931 931 Total before taxes 466 466 931 931 Income taxes (112) (112) (224) (224) Ending Balance April 3, 2021 $ (57,690) $ (57,690) $ (57,690) $ (57,690) April 4, 2020 Beginning Balance $ (55,827) $ (55,827) $ (56,154) $ (56,154) Amounts reclassified and included in earnings 429 429 859 859 Total before taxes 429 429 859 859 Income taxes (103) (103) (206) (206) Ending Balance April 4, 2020 $ (55,501) $ (55,501) $ (55,501) $ (55,501)

Nature of Business and Basis _2

Nature of Business and Basis of Presentation (Policies)	6 Months Ended
	Apr. 03, 2021
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 accounting principles generally accepted in the United States of America (“GAAP”) 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. Fiscal year 2021, which ends on October 2, 2021, consists of 52 weeks while fiscal year 2020, which ended on October 3, 2020, consisted of 53 weeks. The second quarters of fiscal years 2021 and 2020 both included 13 weeks. The six month periods in fiscal years 2021 and 2020 included 26 and 27 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 GAAP for complete financial statements. The Condensed Consolidated Balance Sheet data as of October 3, 2020 was derived from the Company’s audited financial statements but does not include all disclosures required by GAAP. 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, 2020 as set forth in the Company's 2020 Form 10-K filed on December 17, 2020.
Use of Estimates and Assumptions	Use of Estimates and Assumptions The preparation of financial statements in accordance with 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; the allowance for doubtful accounts; potential impairment of long-lived assets, goodwill and intangible assets; and the accounting for self-insurance reserves, warranty reserves, pension obligations, income taxes, environmental liabilities and contingencies. Future events, including the extent and duration of COVID-19 related economic impacts, 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
Recently Issued Accounting Standards and Recently Adopted Accounting Standards	Recently Adopted Accounting Standards ASU 2016-13 In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires that credit losses on most financial instruments measured at amortized cost and certain other financial instruments be measured using an expected credit loss model. Under this model, entities are required to estimate credit losses over the entire contractual term of the financial instrument from the date of initial recognition of the instrument. As required, the Company adopted this guidance on October 4, 2020, the first day of the Company’s first quarter of fiscal year 2021. While a number of financial instruments are subject to the scope of ASU 2016-13, its provisions applied only to the Company’s accounts receivable. Given that the Company extends credit with short contractual terms on only a small percentage of its sales, the adoption of the expected credit loss model did not have any impact on the Company’s condensed consolidated financial statements. Recently Issued Accounting Standards ASU 2020-04 On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , providing temporary guidance to ease the potential burden in accounting for reference rate reform primarily resulting from the discontinuation of LIBOR (defined below), which was initially expected to occur on December 31, 2021. The amendments in ASU 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. ASU 2021-01 On January 7, 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope , which refines the scope of Accounting Standards Codification Topic ("ASC") 848, Reference Rate Reform , and clarifies some of its guidance as part of the FASB’s ongoing monitoring of global reference rate reform activities. The ASU permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, computing variation margin settlements, and calculating price alignment interest in connection with reference rate reform activities under way in global financial markets. The above amendments are effective for all entities from March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments to contract modifications on a (i) full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or (ii) prospective basis from any date within an interim period that includes or is subsequent to March 12, 2020 through the date that the interim financial statements are issued or available to be issued. On March 5, 2021, the Intercontinental Exchange, Inc. ("ICE") Benchmark Administration ("IBA"), the administrator of the United States Dollar London Interbank Offering Rate ("LIBOR"), issued a statement, following the completion of a formal consultation process, reaffirming the preliminary announcement it made on November 30, 2020, to cease publication of (i) 1 week and 2 month LIBOR subsequent to December 31, 2021 and (ii) the overnight and 1, 3, 6 and 12 month LIBOR tenors subsequent to June 30, 2023. The IBA’s statement regarding such cessation dates primarily resulted from a majority of LIBOR panel banks communicating to the IBA that they would be unwilling to continue contributing to the relevant LIBOR settings after such dates. As a result, the IBA determined that it would be unable to publish the relevant LIBOR settings on a representative basis after such dates. The United Kingdom Financial Conduct Authority ("FCA"), which regulates the IBA, confirmed that, based on information it received from LIBOR panel banks, it does not expect that any LIBOR settings will become unrepresentative before the announced cessation dates summarized above. Currently, the Company’s interest rate collar, which is not designated in a hedge accounting relationship, and Amended Credit Agreement (defined below) are the only contracts that reference an interest rate index (i.e., 3 month LIBOR) that is subject to the reference rate reform guidance included in the above amendments. While the termination date of the interest rate collar, September 30, 2022, occurs prior to the July 1, 2023 date on which the IBA will no longer publish 3 month LIBOR, the Amended Credit Agreement matures on September 13, 2023, approximately 2.5 months subsequent to such cessation date. However, as management does not currently forecast that the Company will have sufficient cash to fund the term loan borrowings that are expected to be outstanding under the terms of the Amended Credit Agreement upon maturity, it is expecting to refinance such borrowings prior to maturity, with such refinancing likely to occur before the July 1, 2023 LIBOR cessation date. Therefore, it is highly likely that neither the interest

Supplemental Financial Inform_2

Supplemental Financial Information (Tables)	6 Months Ended
	Apr. 03, 2021
Condensed Financial Information [Abstract]
Inventories	The following table presents the components of inventories at the dates indicated: (in thousands of dollars) April 3, 2021 October 3, 2020 Raw materials $ 59,663 $ 43,272 Work in process 28,297 8,989 Finished goods 4,000 4,262 Total inventories $ 91,960 $ 56,523
Product Warranties	The following table reflects activity in accrued warranty cost (current and long-term portions combined) for the periods presented: Three Months Ended Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Balance at beginning of period $ 19,707 $ 21,731 $ 21,374 $ 22,343 Add current period accruals 1,589 2,628 2,892 4,129 Current period reductions of accrual (2,115) (2,961) (5,085) (5,074) Balance at end of period $ 19,181 $ 21,398 $ 19,181 $ 21,398 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 Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Balance at beginning of period $ 21,732 $ 22,744 $ 22,588 $ 24,045 Add current period deferred income 1,341 2,338 2,500 3,289 Current period recognition of income (2,349) (2,134) (4,364) (4,386) Balance at end of period $ 20,724 $ 22,948 $ 20,724 $ 22,948
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) April 3, 2021 October 3, 2020 Current portion $ 2,947 $ 2,993 Long-term portion 1,939 1,962 Total accrued self-insurance $ 4,886 $ 4,955
Pension Expense	Components of net periodic pension benefit cost were as follows for the periods presented: Three Months Ended Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Interest cost $ 1,057 $ 1,237 $ 2,114 $ 2,474 Expected return on plan assets (1,944) (1,846) (3,888) (3,692) Amortization of prior loss 466 429 931 859 Net periodic benefit cost $ (421) $ (180) $ (843) $ (359) Amortization of prior loss, recognized in other comprehensive income 466 429 931 859 Total recognized in net periodic pension benefit cost and other comprehensive income $ (887) $ (609) $ (1,774) $ (1,218)

Debt (Tables)

Debt (Tables)	6 Months Ended
	Apr. 03, 2021
Debt Disclosure [Abstract]
Schedule of Term Debt Instruments	Term debt consisted of the following at the dates indicated: (in thousands of dollars) April 3, 2021 October 3, 2020 2023 term loan, net of deferred financing costs of $2,592 and $2,246, respectively $ 168,808 $ 174,104 Less: current portion of long-term debt 12,375 9,900 Long-term debt, net of current portion $ 156,433 $ 164,204
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) Fiscal Year Principal Payments 2021 $ 4,950 2022 14,850 2023 151,600 Total remaining principal payments $ 171,400

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Apr. 03, 2021
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 Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Bus (1) $ 150,307 $ 238,697 $ 268,141 $ 373,469 Parts (1) 14,391 16,715 26,991 35,160 Segment net sales $ 164,698 $ 255,412 $ 295,132 $ 408,629 (1) Parts segment revenue includes $1.2 million and $0.9 million for the three months ended April 3, 2021 and April 4, 2020, respectively, and $2.0 million and $1.5 million for the six months ended April 3, 2021 and April 4, 2020, respectively, related to inter-segment sales of parts that was eliminated by the Bus segment upon consolidation. Gross profit Three Months Ended Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Bus $ 13,084 $ 17,938 $ 22,794 $ 32,805 Parts 5,409 6,231 10,167 12,664 Segment gross profit $ 18,493 $ 24,169 $ 32,961 $ 45,469
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 Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Segment gross profit $ 18,493 $ 24,169 $ 32,961 $ 45,469 Adjustments: Selling, general and administrative expenses (17,361) (19,858) (32,051) (40,353) Interest expense (2,334) (5,658) (4,264) (7,555) Interest income — — 1 — Other income, net 422 180 1,065 374 Loss on debt modification — — (598) — Loss before income taxes $ (780) $ (1,167) $ (2,886) $ (2,065)
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 Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 United States $ 137,359 $ 232,477 $ 256,436 $ 368,743 Canada 23,719 22,746 34,185 35,902 Rest of world 3,620 189 4,511 3,984 Total net sales $ 164,698 $ 255,412 $ 295,132 $ 408,629

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Apr. 03, 2021
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table disaggregates revenue by product category for the periods presented: Three Months Ended Six Months Ended (in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Diesel buses $ 76,115 $ 113,649 $ 135,825 $ 190,399 Alternative power buses (1) 65,955 113,057 118,256 164,791 Other (2) 8,585 12,505 14,745 19,348 Parts 14,043 16,201 26,306 34,091 Net sales $ 164,698 $ 255,412 $ 295,132 $ 408,629 (1) Includes buses sold with any power source other than diesel (e.g., gasoline, propane, compressed natural gas "CNG", electric).

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Apr. 03, 2021
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 Six Months Ended (in thousands except for share data) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020 Numerator: Net loss $ (619) $ (639) $ (2,233) $ (1,042) Denominator: Weighted-average common shares outstanding 27,118,452 26,866,822 27,089,342 26,667,860 Effect of dilutive securities (1) — — — — Weighted-average shares and dilutive potential common shares 27,118,452 26,866,822 27,089,342 26,667,860 Earnings per share: Basic loss per share $ (0.02) $ (0.02) $ (0.08) $ (0.04) Diluted loss per share $ (0.02) $ (0.02) $ (0.08) $ (0.04) (1) Potentially dilutive securities representing 0.7 million and 0.5 million shares of common stock were excluded from the computation of diluted earnings per share for April 3, 2021 and April 4, 2020, respectively, as their effect would have been antidilutive.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Apr. 03, 2021
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table provides information on changes in accumulated other comprehensive loss ("AOCL") for the periods presented: Three Months Ended Six Months Ended (in thousands of dollars) Defined Benefit Pension Plan Total AOCL Defined Benefit Pension Plan Total AOCL April 3, 2021 Beginning Balance $ (58,044) $ (58,044) $ (58,397) $ (58,397) Amounts reclassified and included in earnings 466 466 931 931 Total before taxes 466 466 931 931 Income taxes (112) (112) (224) (224) Ending Balance April 3, 2021 $ (57,690) $ (57,690) $ (57,690) $ (57,690) April 4, 2020 Beginning Balance $ (55,827) $ (55,827) $ (56,154) $ (56,154) Amounts reclassified and included in earnings 429 429 859 859 Total before taxes 429 429 859 859 Income taxes (103) (103) (206) (206) Ending Balance April 4, 2020 $ (55,501) $ (55,501) $ (55,501) $ (55,501)

Supplemental Financial Inform_3

Supplemental Financial Information - Inventories (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Oct. 03, 2020
Condensed Financial Information [Abstract]
Raw materials	$ 59,663	$ 43,272
Work in process	28,297	8,989
Finished goods	4,000	4,262
Total inventories	$ 91,960	$ 56,523

Supplemental Financial Inform_4

Supplemental Financial Information - Product Warranty Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 03, 2021	Apr. 04, 2020	Apr. 03, 2021	Apr. 04, 2020
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 19,707	$ 21,731	$ 21,374	$ 22,343
Add current period accruals	1,589	2,628	2,892	4,129
Current period reductions of accrual	(2,115)	(2,961)	(5,085)	(5,074)
Balance at end of period	$ 19,181	$ 21,398	$ 19,181	$ 21,398

Supplemental Financial Inform_5

Supplemental Financial Information - Extended Warranty Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 03, 2021	Apr. 04, 2020	Apr. 03, 2021	Apr. 04, 2020
Movement in Extended Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 21,732	$ 22,744	$ 22,588	$ 24,045
Add current period deferred income	1,341	2,338	2,500	3,289
Current period recognition of income	(2,349)	(2,134)	(4,364)	(4,386)
Balance at end of period	$ 20,724	$ 22,948	$ 20,724	$ 22,948

Supplemental Financial Inform_6

Supplemental Financial Information Remaining Performance Obligation (Details) $ in Millions	Apr. 03, 2021USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-05
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 4.3
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	Apr. 03, 2021	Oct. 03, 2020
Condensed Financial Information [Abstract]
Current portion	$ 2,947	$ 2,993
Long-term portion	1,939	1,962
Total accrued self-insurance	$ 4,886	$ 4,955

Supplemental Financial Inform_8

Supplemental Financial Information - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 03, 2021	Apr. 04, 2020	Apr. 03, 2021	Apr. 04, 2020
Product Warranty Liability [Line Items]
Shipping and handling revenues	$ 164,698	$ 255,412	$ 295,132	$ 408,629
Minimum
Product Warranty Liability [Line Items]
Extended product warranty, period			2 years
Maximum
Product Warranty Liability [Line Items]
Extended product warranty, period			5 years
Shipping and Handling
Product Warranty Liability [Line Items]
Shipping and handling revenues	3,200	4,100	$ 5,900	7,600
Shipping and handling cost of goods sold	$ 2,700	$ 3,500	$ 5,100	$ 6,600

Supplemental Financial Inform_9

Supplemental Financial Information - Pension Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 03, 2021	Apr. 04, 2020	Apr. 03, 2021	Apr. 04, 2020
Condensed Financial Information [Abstract]
Interest cost	$ 1,057	$ 1,237	$ 2,114	$ 2,474
Expected return on plan assets	(1,944)	(1,846)	(3,888)	(3,692)
Amortization of prior loss	466	429	931	859
Net periodic benefit cost	(421)	(180)	(843)	(359)
Amortization of prior loss, recognized in other comprehensive income	466	429	931	859
Total recognized in net periodic pension benefit cost and other comprehensive income	$ (887)	$ (609)	$ (1,774)	$ (1,218)

Supplemental Financial Infor_10

Supplemental Financial Information Supplemental Financial Information - Derivative Instruments (Details) - USD ($) $ in Thousands	Nov. 30, 2018	Apr. 03, 2021
Derivative [Line Items]
Interest rate collar	4 years
Derivative, notional amount	$ 150,000
Floor interest rate	1.50%
Ceiling interest rate	3.30%
Payments for interest rate collar		$ 500
Fair value of interest rate contract		(2,900)
Interest Rate Collar
Derivative [Line Items]
Payments for interest rate collar		$ 1,000

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)	Dec. 04, 2020	Apr. 03, 2021	Apr. 04, 2020	Apr. 03, 2021	Apr. 04, 2020	Oct. 03, 2020
Debt Instrument [Line Items]
Interest expense		$ 2,300,000	$ 5,700,000	$ 4,300,000	$ 7,600,000
Senior Term Loan | Senior Credit Facility
Debt Instrument [Line Items]
Long-term line of credit		$ 171,400,000		$ 171,400,000		$ 176,400,000
Stated interest rate (as a percent)		3.80%		3.80%		3.50%
Weighted average effective interest rate (as a percent)		6.20%		6.20%		4.10%
Revolving Credit Facility | Line of Credit | Third Amendment to the Credit Agreement
Debt Instrument [Line Items]
Minimum liquidity requirement	$ 15,000,000
Basis spread on variable rate (as a percent)	0.50%
Maximum liquidity requirement	$ 20,000,000
Long-term line of credit	100,000,000
Lender fees and other issuance costs	2,500,000
Revolving Credit Facility | Line of Credit | Third Amendment to the Credit Agreement | Gain (Loss) o Extinguishment of Debt [Member]
Debt Instrument [Line Items]
Lender fees and other issuance costs	500,000
Revolving Credit Facility | Line of Credit | Third Amendment to the Credit Agreement | Other Noncurrent Assets
Debt Instrument [Line Items]
Lender fees and other issuance costs	1,100,000
Revolving Credit Facility | Line of Credit | Third Amendment to the Credit Agreement | Senior Notes, Noncurrent
Debt Instrument [Line Items]
Lender fees and other issuance costs	900,000
Revolving Credit Facility | Line of Credit | Second Amendment to Credit Agreement | Gain (Loss) o Extinguishment of Debt [Member]
Debt Instrument [Line Items]
Lender fees and other issuance costs	100,000
Revolving Credit Facility | Line of Credit | Senior Revolving Credit Facility
Debt Instrument [Line Items]
Long-term line of credit		$ 0		$ 0
Letters of Credit | Line of Credit | Third Amendment to the Credit Agreement
Debt Instrument [Line Items]
Remaining borrowing capacity	$ 7,000,000
Letters of Credit | Line of Credit | Senior Revolving Credit Facility
Debt Instrument [Line Items]
Remaining borrowing capacity		97,300,000		97,300,000
Reduction of available revolving line of credit		2,700,000		2,700,000
Letters of credit, amount outstanding		$ 6,900,000		$ 6,900,000

Debt - Schedule of Long-term De

Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Oct. 03, 2020
Debt Instrument [Line Items]
Current portion of long-term debt	$ 12,375	$ 9,900
Long-term debt	156,433	164,204
Senior Term Loan | 2023 Term Loan
Debt Instrument [Line Items]
Total debt	168,808	174,104
Deferred financing costs	$ 2,592	$ 2,246

Debt - Maturity Schedule (Detai

Debt - Maturity Schedule (Details) $ in Thousands	Apr. 03, 2021USD ($)
Long-term Debt, Fiscal Year Maturity
2021	$ 4,950
2022	14,850
2023	151,600
Total debt	$ 171,400

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Apr. 03, 2021	Apr. 04, 2020	Apr. 03, 2021	Apr. 04, 2020
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	61.90%	70.00%	34.80%	55.40%
Statutory Federal income tax rate (as a percent)	21.00%	21.00%	21.00%	21.00%

Guarantees, Commitments and C_2

Guarantees, Commitments and Contingencies Guarantees, Commitments and Contingencies - Narrative (Details) $ in Millions	6 Months Ended
	Apr. 03, 2021USD ($)
Lessee, Lease, Description [Line Items]
Maximum exposure of guarantor	$ 3
Fair value of guarantees	$ 0.2
Remaining maturity on term loan on guarantee (up to)	1 year 9 months 18 days

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 03, 2021USD ($)	Apr. 04, 2020USD ($)	Apr. 03, 2021USD ($)segment	Apr. 04, 2020USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments | segment			2
Net sales	$ 164,698	$ 255,412	$ 295,132	$ 408,629
Gross profit	18,493	24,169	32,961	45,469
United States
Segment Reporting Information [Line Items]
Net sales	137,359	232,477	256,436	368,743
Canada
Segment Reporting Information [Line Items]
Net sales	23,719	22,746	34,185	35,902
Rest of world
Segment Reporting Information [Line Items]
Net sales	3,620	189	4,511	3,984
Operating Segments
Segment Reporting Information [Line Items]
Gross profit	18,493	24,169	32,961	45,469
Operating Segments | Bus
Segment Reporting Information [Line Items]
Net sales	150,307	238,697	268,141	373,469
Gross profit	13,084	17,938	22,794	32,805
Operating Segments | Parts
Segment Reporting Information [Line Items]
Net sales	14,391	16,715	26,991	35,160
Gross profit	5,409	6,231	10,167	12,664
Intersegment Eliminations | Parts
Segment Reporting Information [Line Items]
Net sales	$ 1,200	$ 900	$ 2,000	$ 1,500

Segment Information - Reconcili

Segment Information - Reconciliation of Segment Gross Profit (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 03, 2021	Apr. 04, 2020	Apr. 03, 2021	Apr. 04, 2020
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment gross profit	$ 18,493	$ 24,169	$ 32,961	$ 45,469
Selling, general and administrative expenses	(17,361)	(19,858)	(32,051)	(40,353)
Interest expense	(2,334)	(5,658)	(4,264)	(7,555)
Interest income	0	0	1	0
Other income, net	422	180	1,065	374
Loss on debt modification	0	0	(598)	0
Loss before income taxes	(780)	(1,167)	(2,886)	(2,065)
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment gross profit	18,493	24,169	32,961	45,469
Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Selling, general and administrative expenses	(17,361)	(19,858)	(32,051)	(40,353)
Interest expense	(2,334)	(5,658)	(4,264)	(7,555)
Interest income	0	0	1	0
Other income, net	422	180	1,065	374
Loss on debt modification	$ 0	$ 0	$ (598)	$ 0

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 03, 2021	Apr. 04, 2020	Apr. 03, 2021	Apr. 04, 2020
Disaggregation of Revenue [Line Items]
Net sales	$ 164,698	$ 255,412	$ 295,132	$ 408,629
Diesel buses
Disaggregation of Revenue [Line Items]
Net sales	76,115	113,649	135,825	190,399
Alternative fuel buses
Disaggregation of Revenue [Line Items]
Net sales	65,955	113,057	118,256	164,791
Other
Disaggregation of Revenue [Line Items]
Net sales	8,585	12,505	14,745	19,348
Parts
Disaggregation of Revenue [Line Items]
Net sales	$ 14,043	$ 16,201	$ 26,306	$ 34,091

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		6 Months Ended
	Apr. 03, 2021	Apr. 04, 2020	Apr. 03, 2021	Apr. 04, 2020
Earnings Per Share [Abstract]
Net income	$ (619)	$ (639)	$ (2,233)	$ (1,042)
Weighted-average common shares outstanding	27,118,452	26,866,822	27,089,342	26,667,860
Weighted-average dilutive securities	0	0	0	0
Weighted-average shares and dilutive potential common shares	27,118,452	26,866,822	27,089,342	26,667,860
Basic loss per share	$ (0.02)	$ (0.02)	$ (0.08)	$ (0.04)
Diluted loss per share	$ (0.02)	$ (0.02)	$ (0.08)	$ (0.04)

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	6 Months Ended
	Apr. 03, 2021	Apr. 04, 2020
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	0.7	0.5

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Apr. 03, 2021	Apr. 04, 2020	Apr. 03, 2021	Apr. 04, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance			$ (53,230)
Ending Balance	$ (52,588)		(52,588)
Defined Benefit Pension Plan
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(58,044)	$ (55,827)	(58,397)	$ (56,154)
Amounts reclassified and included in earnings	466	429	931	859
Total before taxes	466	429	931	859
Income taxes	(112)	(103)	(224)	(206)
Ending Balance	(57,690)	(55,501)	(57,690)	(55,501)
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(58,044)	(55,827)	(58,397)	(56,154)
Amounts reclassified and included in earnings	466	429	931	859
Total before taxes	466	429	931	859
Income taxes	(112)	(103)	(224)	(206)
Ending Balance	$ (57,690)	$ (55,501)	$ (57,690)	$ (55,501)