Blue Bird (BLBD) 10-Q 13 Aug 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jul. 04, 2020	Aug. 07, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 4, 2020
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	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,048,404
Entity Central Index Key	0001589526
Current Fiscal Year End Date	--10-03
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 04, 2020	Sep. 28, 2019
Current assets
Cash and cash equivalents	$ 12,538	$ 70,959
Accounts receivable, net	13,694	10,537
Inventories	155,717	78,830
Other current assets	9,459	11,765
Total current assets	191,408	172,091
Property, plant and equipment, net	104,667	100,058
Goodwill	18,825	18,825
Intangible assets, net	52,404	54,720
Equity investment in affiliate	11,946	11,106
Deferred tax assets	3,882	3,600
Finance lease right-of-use assets	5,790	4,638
Other assets	1,133	375
Total assets	390,055	365,413
Current liabilities
Accounts payable	95,538	102,266
Warranty	8,123	9,161
Accrued expenses	15,638	28,697
Deferred warranty income	8,448	8,632
Finance lease obligations	1,032	716
Other current liabilities	13,425	10,310
Current portion of long-term debt	9,900	9,900
Total current liabilities	152,104	169,682
Long-term liabilities
Revolving credit facility	45,000	0
Long-term debt	166,467	173,226
Warranty	12,705	13,182
Deferred warranty income	13,597	15,413
Deferred tax liabilities	792	168
Finance lease obligations	4,870	3,921
Other liabilities	13,251	12,108
Pension	43,197	45,524
Total long-term liabilities	299,879	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 July 4, 2020 and September 28, 2019	0	0
Common stock, $0.0001 par value, 100,000,000 shares authorized, 27,048,404 and 26,476,336 shares outstanding at July 4, 2020 and September 28, 2019, respectively	3	3
Additional paid-in capital	88,930	84,271
Accumulated deficit	(45,405)	(45,649)
Accumulated other comprehensive loss	(55,174)	(56,154)
Treasury stock, at cost, 1,782,568 shares at July 4, 2020 and September 28, 2019	(50,282)	(50,282)
Total stockholders' deficit	(61,928)	(67,811)
Total liabilities and stockholders' deficit	$ 390,055	$ 365,413

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jul. 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	27,048,404	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		9 Months Ended
	Jul. 04, 2020	Jun. 29, 2019	Jul. 04, 2020	Jun. 29, 2019
Income Statement [Abstract]
Net sales	$ 189,181	$ 308,774	$ 597,810	$ 675,342
Cost of goods sold	168,099	266,992	531,259	588,496
Gross profit	21,082	41,782	66,551	86,846
Operating expenses
Selling, general and administrative expenses	17,793	20,996	58,146	61,197
Operating profit	3,289	20,786	8,405	25,649
Interest expense	(2,406)	(3,369)	(9,961)	(10,241)
Interest income	27	0	27	9
Other income (expense), net	181	(410)	555	(1,034)
Income (loss) before income taxes	1,091	17,007	(974)	14,383
Income tax (expense) benefit	(765)	(3,248)	378	(2,833)
Equity in net income of non-consolidated affiliate	960	842	840	1,158
Net income	$ 1,286	$ 14,601	$ 244	$ 12,708
Earnings per share:
Basic weighted average shares outstanding	27,027,731	26,451,107	26,784,404	26,449,751
Diluted weighted average shares outstanding	27,080,015	26,720,110	26,980,480	26,788,306
Basic earnings per share (in dollars per share)	$ 0.05	$ 0.55	$ 0.01	$ 0.48
Diluted earnings per share (in dollars per share)	$ 0.05	$ 0.55	$ 0.01	$ 0.47

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 04, 2020	Jun. 29, 2019	Jul. 04, 2020	Jun. 29, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 1,286	$ 14,601	$ 244	$ 12,708
Other comprehensive income, net of tax
Net change in defined benefit pension plan	327	524	980	1,572
Total other comprehensive income	327	524	980	1,572
Comprehensive income	$ 1,613	$ 15,125	$ 1,224	$ 14,280

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jul. 04, 2020	Jun. 29, 2019
Cash flows from operating activities
Net income	$ 244	$ 12,708
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	10,728	7,406
Non-cash interest expense	3,560	2,172
Share-based compensation	4,105	3,146
Equity in net income of non-consolidated affiliate	(840)	(1,158)
(Gain) loss on disposal of fixed assets	(100)	50
Deferred taxes	32	500
Amortization of deferred actuarial pension losses	1,289	2,068
Foreign currency hedges	0	109
Changes in assets and liabilities:
Accounts receivable	(3,157)	(16,162)
Inventories	(76,887)	(83,355)
Other assets	2,480	(5,014)
Accounts payable	(3,115)	42,429
Accrued expenses, pension and other liabilities	(16,644)	15,988
Total adjustments	(78,549)	(31,821)
Total cash used in operating activities	(78,305)	(19,113)
Cash flows from investing activities
Cash paid for fixed assets	(16,724)	(30,154)
Proceeds from sale of fixed assets	150	0
Total cash used in investing activities	(16,574)	(30,154)
Cash flows from financing activities
Borrowings under the revolving credit facility	45,000	25,000
Borrowings under the senior term loan	0	50,000
Repayments under the senior term loan	(7,425)	(7,425)
Principal payments on finance leases	(854)	0
Cash paid for debt issuance costs	935	0
Cash paid for employee taxes on vested restricted shares and stock option exercises	(3,568)	(622)
Proceeds from exercises of warrants	4,240	1,499
Tender offer repurchase of common stock and preferred stock	0	(50,370)
Total cash provided by financing activities	36,458	18,082
Change in cash and cash equivalents	(58,421)	(31,185)
Cash and cash equivalents, beginning of period	70,959	60,260
Cash and cash equivalents, end of period	12,538	29,075
Supplemental disclosures of cash flow information
Interest paid, net of interest received	6,616	7,916
Income tax paid, net of tax refunds	(1,668)	2,431
Non-cash investing and financing activities:
Changes in accounts payable for capital additions to property, plant and equipment	(3,613)	(1,307)
Cashless exercise of stock options	5,246	295
Right-of-use assets obtained in exchange for finance lease obligations	1,942	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)		130,385
Warrant exercises	1,499		1,499
Restricted stock activity (in shares)		51,195
Restricted stock activity	(596)		(596)
Stock option activity (in shares)		2,567
Stock option activity	(26)		(26)
Share-based compensation expense	3,077		3,077
Tender offer share repurchases (in shares)		1,782,568		364			1,782,568
Tender offer share repurchases	(50,370)		(52)	$ (36)			$ (50,282)
Preferred stock conversion (in shares)		799,615		92,636
Preferred stock conversion	0		9,264	$ (9,264)
Net income	12,708					12,708
Other comprehensive income, net of tax	1,572				1,572
Ending Balance (in shares) at Jun. 29, 2019		26,460,456		0			1,782,568
Ending Balance at Jun. 29, 2019	(61,186)	$ 3	83,189	$ 0	(36,855)	(57,241)	$ (50,282)
Beginning Balance (in shares) at Mar. 30, 2019		26,440,663		0			1,782,568
Beginning Balance at Mar. 30, 2019	(77,590)	$ 3	81,889	$ 0	(37,379)	(71,842)	$ (50,261)
Warrant exercises (in shares)		17,750
Warrant exercises	204		204
Stock option activity (in shares)		2,043
Stock option activity	(20)		(20)
Share-based compensation expense	1,095		1,095
Tender offer share repurchases	0		21				$ (21)
Net income	14,601					14,601
Other comprehensive income, net of tax	524
Other comprehensive income, net of tax	524				524
Ending Balance (in shares) at Jun. 29, 2019		26,460,456		0			1,782,568
Ending Balance at Jun. 29, 2019	(61,186)	$ 3	83,189	$ 0	(36,855)	(57,241)	$ (50,282)
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)		368,712
Warrant exercises	4,240		4,240
Restricted stock activity (in shares)		94,724
Restricted stock activity	(1,623)		(1,623)
Stock option activity (in shares)		108,632
Stock option activity	(1,945)		(1,945)
Share-based compensation expense	3,987		3,987
Net income	244					244
Other comprehensive income, net of tax	980				980
Ending Balance (in shares) at Jul. 04, 2020		27,048,404		0			1,782,568
Ending Balance at Jul. 04, 2020	(61,928)	$ 3	88,930	$ 0	(55,174)	(45,405)	$ (50,282)
Beginning Balance (in shares) at Apr. 04, 2020		27,027,272		0			1,782,568
Beginning Balance at Apr. 04, 2020	(65,063)	$ 3	87,408	$ 0	(55,501)	(46,691)	$ (50,282)
Restricted stock activity (in shares)		0
Restricted stock activity	(255)		(255)
Stock option activity (in shares)		21,132
Stock option activity	0		0
Share-based compensation expense	1,777		1,777
Net income	1,286					1,286
Other comprehensive income, net of tax	327				327
Ending Balance (in shares) at Jul. 04, 2020		27,048,404		0			1,782,568
Ending Balance at Jul. 04, 2020	$ (61,928)	$ 3	$ 88,930	$ 0	$ (55,174)	$ (45,405)	$ (50,282)

Nature of Business and Basis of

Nature of Business and Basis of Presentation	9 Months Ended
	Jul. 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. COVID-19 During our third quarter of fiscal 2020, the novel coronavirus known as "COVID-19" continued to spread throughout the world, perpetuating a global pandemic. The pandemic materially impacted our third quarter of fiscal 2020 results causing 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. 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 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 third quarters of fiscal 2020 and 2019 both included 13 weeks. The nine month periods in fiscal 2020 and 2019 included 40 and 39 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

Summary of Significant Accounti

Summary of Significant Accounting Policies and Recently Issued Accounting Standards	9 Months Ended
	Jul. 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 nine months ended July 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 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, which is currently 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. An entity may elect to apply the amendments prospectively from March 12, 2020 through December 31, 2022. Our debt and derivative agreements currently reference LIBOR. Contract language is expected to be incorporated into these agreements to address the transition to an alternative reference rate. We are currently evaluating the impact this ASU may have on our consolidated financial statements.

Supplemental Financial Informat

Supplemental Financial Information	9 Months Ended
	Jul. 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) July 4, 2020 September 28, 2019 Raw materials $ 108,041 $ 60,033 Work in process 29,790 16,663 Finished goods 17,886 2,134 Total inventories $ 155,717 $ 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 Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Balance at beginning of period $ 21,398 $ 21,520 $ 22,343 $ 22,646 Add current period accruals 1,947 3,358 6,076 7,196 Current period reductions of accrual (2,517 ) (2,358 ) (7,591 ) (7,322 ) Balance at end of period $ 20,828 $ 22,520 $ 20,828 $ 22,520 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 Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Balance at beginning of period $ 22,948 $ 22,901 $ 24,045 $ 23,191 Add current period deferred income 1,769 2,880 5,058 6,686 Current period recognition of income (2,672 ) (2,196 ) (7,058 ) (6,292 ) Balance at end of period $ 22,045 $ 23,585 $ 22,045 $ 23,585 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 $2.3 million of the outstanding contract liability during the remainder of fiscal 2020 , $7.8 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) July 4, 2020 September 28, 2019 Current portion $ 2,732 $ 2,933 Long-term portion 1,794 1,775 Total accrued self-insurance $ 4,526 $ 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 $3.9 million and $6.0 million for the three months ended July 4, 2020 and June 29, 2019 , respectively, and $11.5 million and $12.5 million for the nine months ended July 4, 2020 and June 29, 2019 , respectively. The related cost of goods sold was $3.4 million and $5.3 million for the three months ended July 4, 2020 and June 29, 2019 , respectively, and $10.0 million and $11.0 million for the nine months ended July 4, 2020 and June 29, 2019 , respectively. Pension Expense Components of net periodic pension benefit cost were as follows for the periods presented: Three Months Ended Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Interest cost $ 1,237 $ 1,512 $ 3,711 $ 4,535 Expected return on plan assets (1,846 ) (1,905 ) (5,538 ) (5,714 ) Amortization of prior loss 430 689 1,289 2,068 Net periodic benefit cost $ (179 ) $ 296 $ (538 ) $ 889 Amortization of prior loss, recognized in other comprehensive income 430 689 1,289 2,068 Total recognized in net periodic pension benefit cost and other comprehensive income $ (609 ) $ (393 ) $ (1,827 ) $ (1,179 ) 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. During the three-months ended July 4, 2020 , the three-month LIBOR rate fell below the established floor, which required an immaterial payment to the counterparty. Changes in the interest rate collar fair value are recorded in interest expense as the collar does not qualify for hedge accounting. At July 4, 2020 , the fair value of the interest rate collar contract was $(4.2) 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. Equity Investment in Affiliate The Company holds a 50% equity interest in Micro Bird Holdings, Inc. (“Micro Bird”), and accounts for Micro Bird under the equity method of accounting. The carrying amount of the equity method investment is adjusted for the Company’s proportionate share of net earnings and losses and any dividends received. At July 4, 2020 and September 28, 2019 , the carrying value of the Company's investment was $11.9 million and $11.1 million , respectively. In recognizing the Company’s 50% portion of Micro Bird net income, the Company recorded $0.8 million and $1.2 million in Equity in net income of non-consolidated affiliate for the nine months ended July 4, 2020 and June 29, 2019 , respectively. Summarized unaudited financial information for these periods for Micro Bird is as follows: Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 Revenues $ 58,883 $ 86,364 Gross profit 7,318 9,961 Operating income 1,557 3,717 Net income 1,103 2,409

Debt

Debt	9 Months Ended
	Jul. 04, 2020
Debt Disclosure [Abstract]
Debt	4. Debt On May 7, 2020, the Company entered into a Second Amendment which amended the Credit Agreement, dated as of December 12, 2016 (the “Credit Agreement”, as amended by that certain First Amendment to Credit Agreement, dated as of September 13, 2018 (the “First Amendment”), and as further amended by the Second Amendment, the “Amended Credit Agreement”). The Second Amendment provided for an aggregate lender commitment of $41.9 million of additional revolving commitments bringing the total revolving commitments to $141.9 million . The revolving commitments under the Amended Credit Agreement mature on September 13, 2023, which is the fifth anniversary of the effective date of the First Amendment. The interest rate pricing grid remained unchanged, but the LIBOR floor was amended from 0% to 0.75% . We incurred $0.9 million in fees related to the amendment. The fees were capitalized to other assets on the Consolidated Balance Sheets and are amortized on a straight-line basis to interest expense until maturity of the agreement. Term debt consisted of the following at the dates indicated: (in thousands of dollars) July 4, 2020 September 28, 2019 2023 term loan, net of deferred financing costs of $2,458 and $3,124, respectively $ 176,367 $ 183,126 Less: current portion of long-term debt 9,900 9,900 Long-term debt, net of current portion $ 166,467 $ 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 July 4, 2020 and September 28, 2019 , $178.8 million and $186.3 million , respectively, were outstanding on the term loans. At July 4, 2020 and September 28, 2019 , the stated interest rates on the term loans were 2.8% and 4.4% , respectively. At July 4, 2020 and September 28, 2019 , the weighted-average annual effective interest rates for the term loans were 4.1% and 5.0% , respectively, which includes amortization of the deferred financing costs. At July 4, 2020 , $45.0 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 $90.0 million on the revolving line of credit. Interest expense on all indebtedness was $2.4 million and $3.4 million for the three months ended July 4, 2020 and June 29, 2019 , respectively, and $10.0 million and $10.3 million for the nine months ended July 4, 2020 and June 29, 2019 , respectively. The schedule of remaining principal payments through maturity for total debt is as follows: (in thousands of dollars) Year Principal Payments 2020 $ 2,475 2021 9,900 2022 14,850 2023 196,600 Total remaining principal payments $ 223,825

Income Taxes

Income Taxes	9 Months Ended
	Jul. 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. 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 March 27, 2020 the President of the United States signed the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") into law. While the CARES Act has broad income tax implications for many companies, it did not have a material impact on our reported income tax accounts. Three Months The effective tax rate for the three-month period ended July 4, 2020 was 70.1% , which differed from the statutory federal income tax rate of 21% . The difference is mainly due to discrete period tax expense from prior year tax return adjustments and 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. The effective tax rate for the three-month period ended June 29, 2019 was 19.1% , 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. Nine Months The effective tax rate for the nine -month period ended July 4, 2020 was 38.8% and differed from the statutory federal tax rate of 21% . The difference is mainly due to a net 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. The effective tax rate for the nine -month period ended June 29, 2019 was 19.7% and differed from the statutory federal income tax rate of 21% . The difference is mainly due to normal tax rate benefit items, primarily 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	9 Months Ended
	Jul. 04, 2020
Commitments and Contingencies Disclosure [Abstract]
Guarantees, Commitments and Contingencies	6. Guarantees, Commitments and Contingencies Litigation At July 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 July 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 2.5 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 July 4, 2020 , $0.3 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 and/or warehouse space and for equipment. Our leases have remaining terms of 4.4 to 7.4 years .

Segment Information

Segment Information	9 Months Ended
	Jul. 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 Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Bus (1) $ 180,592 $ 292,166 $ 554,061 $ 626,441 Parts (1) 8,589 16,608 43,749 48,901 Segment net sales $ 189,181 $ 308,774 $ 597,810 $ 675,342 (1) Parts segment revenue includes $0.8 million and $1.0 million for the three months ended July 4, 2020 and June 29, 2019 , respectively, and $3.2 million and $2.5 million for the nine months ended July 4, 2020 and June 29, 2019 , respectively, related to inter-segment sales of parts that was eliminated by the Bus segment upon consolidation. Gross profit Three Months Ended Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Bus $ 18,079 $ 35,996 $ 50,884 $ 69,653 Parts 3,003 5,786 15,667 17,193 Segment gross profit $ 21,082 $ 41,782 $ 66,551 $ 86,846 The following table is a reconciliation of segment gross profit to consolidated income (loss) before income taxes for the periods presented: Three Months Ended Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Segment gross profit $ 21,082 $ 41,782 $ 66,551 $ 86,846 Adjustments: Selling, general and administrative expenses (17,793 ) (20,996 ) (58,146 ) (61,197 ) Interest expense (2,406 ) (3,369 ) (9,961 ) (10,241 ) Interest income 27 — 27 9 Other income (expense), net 181 (410 ) 555 (1,034 ) Income (loss) before income taxes $ 1,091 $ 17,007 $ (974 ) $ 14,383 Sales are attributable to geographic areas based on customer location and were as follows for the periods presented: Three Months Ended Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 United States $ 175,433 $ 286,499 $ 544,176 $ 629,668 Canada 13,429 21,639 49,331 43,499 Rest of world 319 636 4,303 2,175 Total net sales $ 189,181 $ 308,774 $ 597,810 $ 675,342

Revenue

Revenue	9 Months Ended
	Jul. 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 Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Diesel buses $ 88,299 $ 135,246 $ 278,698 $ 335,553 Alternative fuel buses (1) 80,975 141,939 245,766 260,340 Other (2) 11,583 15,486 30,931 32,061 Parts 8,324 16,103 42,415 47,388 Net sales $ 189,181 $ 308,774 $ 597,810 $ 675,342 (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	9 Months Ended
	Jul. 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 Nine Months Ended (in thousands except for share data) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Numerator: Net income $ 1,286 $ 14,601 $ 244 $ 12,708 Denominator: Weighted-average common shares outstanding 27,027,731 26,451,107 26,784,404 26,449,751 Weighted-average dilutive securities, restricted stock 50,769 94 135,792 29,149 Weighted-average dilutive securities, warrants — 150,292 — 178,290 Weighted-average dilutive securities, stock options 1,515 118,617 60,284 131,116 Weighted-average shares and dilutive potential common shares 27,080,015 26,720,110 26,980,480 26,788,306 Earnings per share: Basic earnings per share $ 0.05 $ 0.55 $ 0.01 $ 0.48 Diluted earnings per share $ 0.05 $ 0.55 $ 0.01 $ 0.47 (1) Potentially dilutive securities representing 0.4 million and 0.3 million shares of common stock were excluded from the computation of diluted earnings per share for the three and nine months ended July 4, 2020

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Jul. 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 Nine Months Ended (in thousands of dollars) Defined Benefit Pension Plan Total Defined Benefit Pension Plan Total July 4, 2020 Beginning Balance $ (55,501 ) $ (55,501 ) $ (56,154 ) $ (56,154 ) Amounts reclassified from other comprehensive loss and included in earnings 430 430 1,289 1,289 Total other comprehensive income, before taxes 430 430 1,289 1,289 Income tax expense (103 ) (103 ) (309 ) (309 ) Ending Balance July 4, 2020 $ (55,174 ) $ (55,174 ) $ (55,174 ) $ (55,174 ) June 29, 2019 Beginning Balance $ (37,379 ) $ (37,379 ) $ (38,427 ) $ (38,427 ) Amounts reclassified from other comprehensive loss and included in earnings 689 689 2,068 2,068 Total other comprehensive income, before taxes 689 689 2,068 2,068 Income tax expense (165 ) (165 ) (496 ) (496 ) Ending Balance June 29, 2019 $ (36,855 ) $ (36,855 ) $ (36,855 ) $ (36,855 )

Subsequent Event

Subsequent Event	9 Months Ended
	Jul. 04, 2020
Subsequent Events [Abstract]
Subsequent Event	<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:12pt;"><font style="font-family:inherit;font-size:12pt;font-weight:bold;">11. Subsequent Event</font></div></div>

Nature of Business and Basis _2

Nature of Business and Basis of Presentation (Policies)	9 Months Ended
	Jul. 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 third quarters of fiscal 2020 and 2019 both included 13 weeks. The nine month periods in fiscal 2020 and 2019 included 40 and 39 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, 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 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 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, which is currently 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. An entity may elect to apply the amendments prospectively from March 12, 2020 through December 31, 2022. Our debt and derivative agreements currently reference LIBOR. Contract language is expected to be incorporated into these agreements to address the transition to an alternative reference rate. We are currently evaluating the impact this ASU may have on our consolidated financial statements.

Supplemental Financial Inform_2

Supplemental Financial Information (Tables)	9 Months Ended
	Jul. 04, 2020
Condensed Financial Information [Abstract]
Inventories	The following table presents the components of inventories at the dates indicated: (in thousands of dollars) July 4, 2020 September 28, 2019 Raw materials $ 108,041 $ 60,033 Work in process 29,790 16,663 Finished goods 17,886 2,134 Total inventories $ 155,717 $ 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 Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Balance at beginning of period $ 21,398 $ 21,520 $ 22,343 $ 22,646 Add current period accruals 1,947 3,358 6,076 7,196 Current period reductions of accrual (2,517 ) (2,358 ) (7,591 ) (7,322 ) Balance at end of period $ 20,828 $ 22,520 $ 20,828 $ 22,520 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 Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Balance at beginning of period $ 22,948 $ 22,901 $ 24,045 $ 23,191 Add current period deferred income 1,769 2,880 5,058 6,686 Current period recognition of income (2,672 ) (2,196 ) (7,058 ) (6,292 ) Balance at end of period $ 22,045 $ 23,585 $ 22,045 $ 23,585
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) July 4, 2020 September 28, 2019 Current portion $ 2,732 $ 2,933 Long-term portion 1,794 1,775 Total accrued self-insurance $ 4,526 $ 4,708
Pension Expense	Components of net periodic pension benefit cost were as follows for the periods presented: Three Months Ended Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Interest cost $ 1,237 $ 1,512 $ 3,711 $ 4,535 Expected return on plan assets (1,846 ) (1,905 ) (5,538 ) (5,714 ) Amortization of prior loss 430 689 1,289 2,068 Net periodic benefit cost $ (179 ) $ 296 $ (538 ) $ 889 Amortization of prior loss, recognized in other comprehensive income 430 689 1,289 2,068 Total recognized in net periodic pension benefit cost and other comprehensive income $ (609 ) $ (393 ) $ (1,827 ) $ (1,179 )
Summarized Financial Information	Summarized unaudited financial information for these periods for Micro Bird is as follows: Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 Revenues $ 58,883 $ 86,364 Gross profit 7,318 9,961 Operating income 1,557 3,717 Net income 1,103 2,409

Debt (Tables)

Debt (Tables)	9 Months Ended
	Jul. 04, 2020
Debt Disclosure [Abstract]
Schedule of Term Debt Instruments	Term debt consisted of the following at the dates indicated: (in thousands of dollars) July 4, 2020 September 28, 2019 2023 term loan, net of deferred financing costs of $2,458 and $3,124, respectively $ 176,367 $ 183,126 Less: current portion of long-term debt 9,900 9,900 Long-term debt, net of current portion $ 166,467 $ 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 $ 2,475 2021 9,900 2022 14,850 2023 196,600 Total remaining principal payments $ 223,825

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Jul. 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 Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Bus (1) $ 180,592 $ 292,166 $ 554,061 $ 626,441 Parts (1) 8,589 16,608 43,749 48,901 Segment net sales $ 189,181 $ 308,774 $ 597,810 $ 675,342 (1) Parts segment revenue includes $0.8 million and $1.0 million for the three months ended July 4, 2020 and June 29, 2019 , respectively, and $3.2 million and $2.5 million for the nine months ended July 4, 2020 and June 29, 2019 , respectively, related to inter-segment sales of parts that was eliminated by the Bus segment upon consolidation. Gross profit Three Months Ended Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Bus $ 18,079 $ 35,996 $ 50,884 $ 69,653 Parts 3,003 5,786 15,667 17,193 Segment gross profit $ 21,082 $ 41,782 $ 66,551 $ 86,846
Reconciliation of Operating Profit (Loss) from Segments to Consolidated	The following table is a reconciliation of segment gross profit to consolidated income (loss) before income taxes for the periods presented: Three Months Ended Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Segment gross profit $ 21,082 $ 41,782 $ 66,551 $ 86,846 Adjustments: Selling, general and administrative expenses (17,793 ) (20,996 ) (58,146 ) (61,197 ) Interest expense (2,406 ) (3,369 ) (9,961 ) (10,241 ) Interest income 27 — 27 9 Other income (expense), net 181 (410 ) 555 (1,034 ) Income (loss) before income taxes $ 1,091 $ 17,007 $ (974 ) $ 14,383
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 Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 United States $ 175,433 $ 286,499 $ 544,176 $ 629,668 Canada 13,429 21,639 49,331 43,499 Rest of world 319 636 4,303 2,175 Total net sales $ 189,181 $ 308,774 $ 597,810 $ 675,342

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Jul. 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 Nine Months Ended (in thousands of dollars) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Diesel buses $ 88,299 $ 135,246 $ 278,698 $ 335,553 Alternative fuel buses (1) 80,975 141,939 245,766 260,340 Other (2) 11,583 15,486 30,931 32,061 Parts 8,324 16,103 42,415 47,388 Net sales $ 189,181 $ 308,774 $ 597,810 $ 675,342 (1) Includes buses sold with any fuel source other than diesel (e.g. gasoline, propane, CNG, electric).

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Jul. 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 Nine Months Ended (in thousands except for share data) July 4, 2020 June 29, 2019 July 4, 2020 June 29, 2019 Numerator: Net income $ 1,286 $ 14,601 $ 244 $ 12,708 Denominator: Weighted-average common shares outstanding 27,027,731 26,451,107 26,784,404 26,449,751 Weighted-average dilutive securities, restricted stock 50,769 94 135,792 29,149 Weighted-average dilutive securities, warrants — 150,292 — 178,290 Weighted-average dilutive securities, stock options 1,515 118,617 60,284 131,116 Weighted-average shares and dilutive potential common shares 27,080,015 26,720,110 26,980,480 26,788,306 Earnings per share: Basic earnings per share $ 0.05 $ 0.55 $ 0.01 $ 0.48 Diluted earnings per share $ 0.05 $ 0.55 $ 0.01 $ 0.47 (1) Potentially dilutive securities representing 0.4 million and 0.3 million shares of common stock were excluded from the computation of diluted earnings per share for the three and nine months ended July 4, 2020

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Jul. 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 Nine Months Ended (in thousands of dollars) Defined Benefit Pension Plan Total Defined Benefit Pension Plan Total July 4, 2020 Beginning Balance $ (55,501 ) $ (55,501 ) $ (56,154 ) $ (56,154 ) Amounts reclassified from other comprehensive loss and included in earnings 430 430 1,289 1,289 Total other comprehensive income, before taxes 430 430 1,289 1,289 Income tax expense (103 ) (103 ) (309 ) (309 ) Ending Balance July 4, 2020 $ (55,174 ) $ (55,174 ) $ (55,174 ) $ (55,174 ) June 29, 2019 Beginning Balance $ (37,379 ) $ (37,379 ) $ (38,427 ) $ (38,427 ) Amounts reclassified from other comprehensive loss and included in earnings 689 689 2,068 2,068 Total other comprehensive income, before taxes 689 689 2,068 2,068 Income tax expense (165 ) (165 ) (496 ) (496 ) Ending Balance June 29, 2019 $ (36,855 ) $ (36,855 ) $ (36,855 ) $ (36,855 )

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. 28, 2019	Jul. 04, 2020	Apr. 04, 2020	Jun. 29, 2019	Mar. 30, 2019	Sep. 30, 2018	Sep. 29, 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
Adoption of new revenue recognition standard (ASC 606) adjustment			$ (67,811)	$ (61,928)	$ (65,063)	$ (61,186)	$ (77,590)		$ (28,336)
Accounting Standards Update 2014-09 | Cumulative Effect, Period of Adoption, Adjustment
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	Jul. 04, 2020	Sep. 28, 2019
Condensed Financial Information [Abstract]
Raw materials	$ 108,041	$ 60,033
Work in process	29,790	16,663
Finished goods	17,886	2,134
Total inventories	$ 155,717	$ 78,830

Supplemental Financial Inform_4

Supplemental Financial Information - Product Warranty Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 04, 2020	Jun. 29, 2019	Jul. 04, 2020	Jun. 29, 2019
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 21,398	$ 21,520	$ 22,343	$ 22,646
Add current period accruals	1,947	3,358	6,076	7,196
Current period reductions of accrual	(2,517)	(2,358)	(7,591)	(7,322)
Balance at end of period	$ 20,828	$ 22,520	$ 20,828	$ 22,520

Supplemental Financial Inform_5

Supplemental Financial Information - Extended Warranty Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 04, 2020	Jun. 29, 2019	Jul. 04, 2020	Jun. 29, 2019
Movement in Extended Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 22,948	$ 22,901	$ 24,045	$ 23,191
Add current period deferred income	1,769	2,880	5,058	6,686
Current period recognition of income	(2,672)	(2,196)	(7,058)	(6,292)
Balance at end of period	$ 22,045	$ 23,585	$ 22,045	$ 23,585

Supplemental Financial Inform_6

Supplemental Financial Information Remaining Performance Obligation (Details) $ in Millions	Jul. 04, 2020USD ($)
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	$ 2.3
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	$ 7.8
Revenue, performance obligation, (in years)	1 year

Supplemental Financial Inform_7

Supplemental Financial Information - Self Insurance (Details) - USD ($) $ in Thousands	Jul. 04, 2020	Sep. 28, 2019
Condensed Financial Information [Abstract]
Current portion	$ 2,732	$ 2,933
Long-term portion	1,794	1,775
Total accrued self-insurance	$ 4,526	$ 4,708

Supplemental Financial Inform_8

Supplemental Financial Information - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 04, 2020	Jun. 29, 2019	Jul. 04, 2020	Jun. 29, 2019
Product Warranty Liability [Line Items]
Shipping and handling revenues	$ 189,181	$ 308,774	$ 597,810	$ 675,342
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	3,900	6,000	$ 11,500	12,500
Shipping and handling cost of goods sold	$ 3,400	$ 5,300	$ 10,000	$ 11,000

Supplemental Financial Inform_9

Supplemental Financial Information - Pension Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 04, 2020	Jun. 29, 2019	Jul. 04, 2020	Jun. 29, 2019
Condensed Financial Information [Abstract]
Interest cost	$ 1,237	$ 1,512	$ 3,711	$ 4,535
Expected return on plan assets	(1,846)	(1,905)	(5,538)	(5,714)
Amortization of prior loss	430	689	1,289	2,068
Net periodic benefit cost	(179)	296	(538)	889
Amortization of prior loss, recognized in other comprehensive income	430	689	1,289	2,068
Total recognized in net periodic pension benefit cost and other comprehensive income	$ (609)	$ (393)	$ (1,827)	$ (1,179)

Supplemental Financial Infor_10

Supplemental Financial Information Supplemental Financial Information - Derivative Instruments (Details) - USD ($) $ in Millions	Nov. 30, 2018	Jul. 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		$ (4.2)

Supplemental Financial Infor_11

Supplemental Financial Information Supplemental Financial Information - Equity Investment in Affiliate (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 04, 2020	Jun. 29, 2019	Jul. 04, 2020	Jun. 29, 2019	Sep. 28, 2019
Schedule of Equity Method Investments [Line Items]
Equity investment in affiliate	$ 11,946		$ 11,946		$ 11,106
Equity in net income of non-consolidated affiliate	$ 960	$ 842	$ 840	$ 1,158
Micro Bird Holdings Inc.
Schedule of Equity Method Investments [Line Items]
Equity interest in equity method investment (as a percent)	50.00%		50.00%
Equity investment in affiliate	$ 11,900		$ 11,900		$ 11,100
Equity in net income of non-consolidated affiliate			$ 800	$ 1,200

Supplemental Financial Infor_12

Supplemental Financial Information Supplemental Financial Information - Summarized Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 04, 2020	Jun. 29, 2019	Jul. 04, 2020	Jun. 29, 2019
Condensed Income Statements, Captions [Line Items]
Net sales	$ 189,181	$ 308,774	$ 597,810	$ 675,342
Gross profit	21,082	41,782	66,551	86,846
Operating income	3,289	20,786	8,405	25,649
Net income	$ 1,286	$ 14,601	244	12,708
Micro Bird Holdings Inc.
Condensed Income Statements, Captions [Line Items]
Net sales			58,883	86,364
Gross profit			7,318	9,961
Operating income			1,557	3,717
Net income			$ 1,103	$ 2,409

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($)	May 07, 2020	Sep. 13, 2018	Jul. 04, 2020	Jun. 29, 2019	Jul. 04, 2020	Jun. 29, 2019	Sep. 28, 2019
Debt Instrument [Line Items]
Interest expense			$ 2,400,000	$ 3,400,000	$ 10,000,000	$ 10,300,000
Senior Term Loan | Senior Credit Facility
Debt Instrument [Line Items]
Long-term line of credit			$ 178,800,000		$ 178,800,000		$ 186,300,000
Stated interest rate (as a percent)			2.80%		2.80%		4.40%
Weighted average effective interest rate (as a percent)			4.10%		4.10%		5.00%
Revolving Credit Facility | Line of Credit | Second Amendment to Credit Agreement
Debt Instrument [Line Items]
Additional revolving commitments by lender	$ 41,900,000
Maximum borrowing capacity	$ 141,900,000
Basis spread on variable rate (as a percent)	0.75%	0.00%
Capitalized debt fees	$ 900,000
Revolving Credit Facility | Line of Credit | Senior Revolving Credit Facility
Debt Instrument [Line Items]
Long-term line of credit			$ 45,000,000		$ 45,000,000
Letters of Credit | Line of Credit | Senior Revolving Credit Facility
Debt Instrument [Line Items]
Letters of credit, amount outstanding			6,900,000		6,900,000
Remaining borrowing capacity			$ 90,000,000		$ 90,000,000

Debt - Schedule of Long-term De

Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Jul. 04, 2020	Sep. 28, 2019
Debt Instrument [Line Items]
Current portion of long-term debt	$ 9,900	$ 9,900
Long-term debt	166,467	173,226
Senior Term Loan | 2023 Term Loan
Debt Instrument [Line Items]
Total debt	176,367	183,126
Deferred financing costs	$ 2,458	$ 3,124

Debt - Maturity Schedule (Detai

Debt - Maturity Schedule (Details) $ in Thousands	Jul. 04, 2020USD ($)
Long-term Debt, Fiscal Year Maturity
2020	$ 2,475
2021	9,900
2022	14,850
2023	196,600
Total debt	$ 223,825

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
	Jul. 04, 2020	Jun. 29, 2019	Jul. 04, 2020	Jun. 29, 2019
Income Tax Disclosure [Abstract]
Effective tax rate (as a percent)	70.10%	19.10%	38.80%	19.70%
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 Gaurantees, Commitments and Contingencies - Narrative (Details) $ in Millions	9 Months Ended
	Jul. 04, 2020USD ($)
Lessee, Lease, Description [Line Items]
Maximum exposure of guarantor	$ 3
Fair value of guarantees	$ 0.3
Remaining maturity on term loan on guarantee (up to)	2 years 6 months
Minimum
Lessee, Lease, Description [Line Items]
Operating lease term	4 years 4 months 24 days
Maximum
Lessee, Lease, Description [Line Items]
Operating lease term	7 years 4 months 24 days

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 04, 2020USD ($)	Jun. 29, 2019USD ($)	Jul. 04, 2020USD ($)segment	Jun. 29, 2019USD ($)
Segment Reporting Information [Line Items]
Number of Operating Segments | segment			2
Net sales	$ 189,181	$ 308,774	$ 597,810	$ 675,342
Gross profit	21,082	41,782	66,551	86,846
United States
Segment Reporting Information [Line Items]
Net sales	175,433	286,499	544,176	629,668
Canada
Segment Reporting Information [Line Items]
Net sales	13,429	21,639	49,331	43,499
Rest of world
Segment Reporting Information [Line Items]
Net sales	319	636	4,303	2,175
Operating Segments
Segment Reporting Information [Line Items]
Gross profit	21,082	41,782	66,551	86,846
Operating Segments | Bus
Segment Reporting Information [Line Items]
Net sales	180,592	292,166	554,061	626,441
Gross profit	18,079	35,996	50,884	69,653
Operating Segments | Parts
Segment Reporting Information [Line Items]
Net sales	8,589	16,608	43,749	48,901
Gross profit	3,003	5,786	15,667	17,193
Intersegment Eliminations | Parts
Segment Reporting Information [Line Items]
Net sales	$ 800	$ 1,000	$ 3,200	$ 2,500

Segment Information - Reconcili

Segment Information - Reconciliation of Segment Gross Profit (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 04, 2020	Jun. 29, 2019	Jul. 04, 2020	Jun. 29, 2019
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment gross profit	$ 21,082	$ 41,782	$ 66,551	$ 86,846
Selling, general and administrative expenses	(17,793)	(20,996)	(58,146)	(61,197)
Interest expense	(2,406)	(3,369)	(9,961)	(10,241)
Interest income	27	0	27	9
Other income (expense), net	181	(410)	555	(1,034)
Income (loss) before income taxes	1,091	17,007	(974)	14,383
Operating Segments
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Segment gross profit	21,082	41,782	66,551	86,846
Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Selling, general and administrative expenses	(17,793)	(20,996)	(58,146)	(61,197)
Interest expense	(2,406)	(3,369)	(9,961)	(10,241)
Interest income	27	0	27	9
Other income (expense), net	$ 181	$ (410)	$ 555	$ (1,034)

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 04, 2020	Jun. 29, 2019	Jul. 04, 2020	Jun. 29, 2019	Apr. 04, 2020	Sep. 28, 2019	Mar. 30, 2019	Sep. 30, 2018	Sep. 29, 2018
Disaggregation of Revenue [Line Items]
Adoption of new revenue recognition standard (ASC 606) adjustment	$ (61,928)	$ (61,186)	$ (61,928)	$ (61,186)	$ (65,063)	$ (67,811)	$ (77,590)		$ (28,336)
Net sales	189,181	308,774	597,810	675,342
Diesel buses
Disaggregation of Revenue [Line Items]
Net sales	88,299	135,246	278,698	335,553
Alternative fuel buses
Disaggregation of Revenue [Line Items]
Net sales	80,975	141,939	245,766	260,340
Other
Disaggregation of Revenue [Line Items]
Net sales	11,583	15,486	30,931	32,061
Parts
Disaggregation of Revenue [Line Items]
Net sales	$ 8,324	$ 16,103	$ 42,415	$ 47,388
Accounting Standards Update 2014-09 | Cumulative Effect, Period of Adoption, Adjustment
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		9 Months Ended
	Jul. 04, 2020	Jun. 29, 2019	Jul. 04, 2020	Jun. 29, 2019
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 1,286	$ 14,601	$ 244	$ 12,708
Weighted-average common shares outstanding	27,027,731	26,451,107	26,784,404	26,449,751
Weighted-average dilutive securities, warrants	0	150,292	0	178,290
Weighted-average shares and dilutive potential common shares	27,080,015	26,720,110	26,980,480	26,788,306
Basic earnings per share	$ 0.05	$ 0.55	$ 0.01	$ 0.48
Diluted earnings per share	$ 0.05	$ 0.55	$ 0.01	$ 0.47
Restricted Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted-average dilutive securities	50,769	94	135,792	29,149
Options
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted-average dilutive securities	1,515	118,617	60,284	131,116

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares shares in Millions	3 Months Ended	9 Months Ended
	Jul. 04, 2020	Jul. 04, 2020
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	0.4	0.3

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 04, 2020	Jun. 29, 2019	Jul. 04, 2020	Jun. 29, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance			$ (67,811)
Ending Balance	$ (61,928)		(61,928)
Defined Benefit Pension Plan
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(55,501)	$ (37,379)	(56,154)	$ (38,427)
Amounts reclassified from other comprehensive loss and included in earnings	430	689	1,289	2,068
Total amount recognized in other comprehensive loss	430	689	1,289	2,068
Income tax expense	(103)	(165)	(309)	(496)
Ending Balance	(55,174)	(36,855)	(55,174)	(36,855)
AOCI Attributable to Parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning Balance	(55,501)	(37,379)	(56,154)	(38,427)
Amounts reclassified from other comprehensive loss and included in earnings	430	689	1,289	2,068
Total amount recognized in other comprehensive loss	430	689	1,289	2,068
Income tax expense	(103)	(165)	(309)	(496)
Ending Balance	$ (55,174)	$ (36,855)	$ (55,174)	$ (36,855)

Subsequent Event (Details)

Subsequent Event (Details) - Second Amendment to Credit Agreement - Line of Credit - Revolving Credit Facility - USD ($)	May 07, 2020	Sep. 13, 2018
Subsequent Event [Line Items]
Additional revolving commitments by lender	$ 41,900,000
Maximum borrowing capacity	$ 141,900,000
Basis spread on variable rate (as a percent)	0.75%	0.00%
Capitalized debt fees	$ 900,000

Uncategorized Items - a10-q2020

Label	Element	Value
Accounting Standards Update 2014-09 [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	$ (714,000)