BLUE BIRD CORP, 10-K filed on 11/25/2024
Annual Report
v3.24.3
Cover Page - USD ($)
$ in Millions
12 Months Ended
Sep. 28, 2024
Nov. 20, 2024
Cover [Abstract]    
Document Type 10-K  
Document Annual Report true  
Document Period End Date Sep. 28, 2024  
Current Fiscal Year End Date --09-28  
Document Transition Report false  
Entity File Number 001-36267  
Entity Registrant Name BLUE BIRD CORPORATION  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus FY  
Amendment Flag false  
Entity Central Index Key 0001589526  
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 Well-known Seasoned Issuer Yes  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
ICFR Auditor Attestation Flag true  
Entity Shell Company false  
Entity Public Float $ 1,232.4  
Entity Common Stock, Shares Outstanding   32,268,022
Documents Incorporated by Reference Portions of the Registrant’s definitive proxy statement to be delivered to stockholders in connection with the Registrant’s 2025 Annual Meeting of Stockholders are incorporated by reference in response to Part III of this report.  
Document Financial Statement Error Correction [Flag] false  
v3.24.3
Audit Information
12 Months Ended
Sep. 28, 2024
Audit Information [Abstract]  
Auditor Firm ID 243
Auditor Name BDO USA, P.C.
Auditor Location Atlanta, Georgia
v3.24.3
Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 28, 2024
Sep. 30, 2023
Current assets    
Cash and cash equivalents $ 127,687 $ 78,988
Accounts receivable, net 59,099 12,574
Inventories 127,798 135,286
Other current assets 8,795 9,215
Total current assets 323,379 236,063
Property, plant and equipment, net 97,322 95,101
Goodwill 18,825 18,825
Intangible assets, net 43,554 45,424
Equity investment in affiliate(s) 32,089 17,619
Deferred tax assets 2,399 2,182
Finance lease right-of-use assets 332 1,034
Pension 4,649 0
Other assets 2,345 1,518
Total assets 524,894 417,766
Current liabilities    
Accounts payable 143,156 137,140
Warranty 7,166 6,711
Accrued expenses 55,775 32,894
Deferred warranty income 9,421 8,101
Finance lease obligations 975 583
Other current liabilities 14,480 24,391
Current portion of long-term debt 5,000 19,800
Total current liabilities 235,973 229,620
Long-term liabilities    
Revolving credit facility 0 0
Long-term debt 89,994 110,544
Warranty 9,013 8,723
Deferred warranty income 18,541 15,022
Deferred tax liabilities 2,783 2,513
Finance lease obligations 6 987
Other liabilities 9,020 7,955
Pension 0 2,404
Total long-term liabilities 129,357 148,148
Guarantees, commitments and contingencies (Note 10)
Stockholders' equity    
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 0 issued with liquidation preference of $0 at September 28, 2024 and September 30, 2023 0 0
Common stock, $0.0001 par value, 100,000,000 shares authorized, 32,268,022 and 32,165,225 shares outstanding at September 28, 2024 and September 30, 2023, respectively 3 3
Additional paid-in capital 185,977 177,861
Retained earnings (accumulated deficit) 0 (55,700)
Accumulated other comprehensive loss (26,416) (31,884)
Treasury stock, at cost, 0 and 1,782,568 shares at September 28, 2024 and September 30, 2023, respectively 0 (50,282)
Total stockholders' equity 159,564 39,998
Total liabilities and stockholders' equity $ 524,894 $ 417,766
v3.24.3
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Sep. 28, 2024
Sep. 30, 2023
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, liquidation preference $ 0 $ 0
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 100,000,000 100,000,000
Common stock, shares outstanding (in shares) 32,268,022 32,165,225
v3.24.3
Consolidated Statements of Operations - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Income Statement [Abstract]      
Net sales $ 1,347,154 $ 1,132,793 $ 800,637
Cost of goods sold 1,090,998 993,943 764,091
Gross profit 256,156 138,850 36,546
Operating expenses      
Selling, general and administrative expenses 116,825 87,193 77,246
Operating profit (loss) 139,331 51,657 (40,700)
Interest expense (10,579) (18,012) (14,675)
Interest income 4,136 1,004 9
Other (expense) income, net (4,394) (8,307) 2,947
Loss on debt refinancing or modification (1,558) (537) (632)
Income (loss) before income taxes 126,936 25,805 (53,051)
Income tax (expense) benefit (33,228) (8,953) 11,451
Equity in net income (loss) of non-consolidated affiliate(s) 11,839 6,960 (4,159)
Net income (loss) $ 105,547 $ 23,812 $ (45,759)
Earnings (loss) per share:      
Basic weighted average shares outstanding (in shares) 32,270,711 32,071,940 31,020,399
Diluted weighted average shares outstanding (in shares) 33,349,221 32,258,652 31,020,399
Basic earnings per share (in dollars per share) $ 3.27 $ 0.74 $ (1.48)
Diluted earnings per share (in dollars per share) $ 3.16 $ 0.74 $ (1.48)
v3.24.3
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 105,547 $ 23,812 $ (45,759)
Net change in defined benefit pension plan 5,468 10,046 2,864
Total other comprehensive income, net of tax 5,468 10,046 2,864
Comprehensive income (loss) $ 111,015 $ 33,858 $ (42,895)
v3.24.3
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Cash flows from operating activities      
Net income (loss) $ 105,547 $ 23,812 $ (45,759)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
Depreciation and amortization expense 14,820 15,978 14,050
Non-cash interest expense 390 1,470 3,400
Share-based compensation expense 8,609 4,173 3,690
Equity in net (income) loss of non-consolidated affiliate(s) (11,839) (6,960) 4,159
Dividend from equity investment in affiliate(s) 5,338 0 0
Loss on disposal of fixed assets 200 64 15
Impairment of fixed assets 0 0 1,354
Lower of cost or net realizable value loss 0 0 8,752
Deferred income tax (benefit) expense (1,674) 8,065 (11,071)
Amortization of deferred actuarial pension losses 687 1,195 3,768
Loss on debt refinancing or modification 1,558 537 632
Changes in assets and liabilities:      
Accounts receivable (46,525) (40) (2,567)
Inventories 7,488 7,691 (26,523)
Other assets 971 453 1,913
Accounts payable 6,665 28,712 35,075
Accrued expenses, pension and other liabilities 18,877 34,778 (15,325)
Total adjustments 5,565 96,116 21,322
Total cash provided by (used in) operating activities 111,112 119,928 (24,437)
Cash flows from investing activities      
Cash paid for fixed assets (15,263) (8,520) (6,453)
Total cash used in investing activities (15,815) (8,520) (6,453)
Cash flows from financing activities      
Proceeds from lines of credit 36,220 45,000 135,000
Revolving credit facility repayments (36,220) (65,000) (160,000)
Term loan borrowings - new credit agreement (Note 8) 100,000 0 0
Term loan repayments (Note 8) (135,550) (19,800) (14,850)
Principal payments on finance leases (589) (570) (1,132)
Cash paid for debt costs (Note 8) (3,128) (3,272) (2,751)
Sale of common stock (Note 13) 0 0 75,000
Cash paid for common stock issuance costs (Note 13) 0 0 202
Repurchase of common stock in connection with repurchase program (Note 13) 9,938 0 0
Equity investment in affiliate(s) (Note 17) (552) 0 0
Repurchase of common stock in connection with stock award exercises 1,178 376 1,708
Cash received from stock option exercises 3,785 1,119 303
Total cash (used in) provided by financing activities (46,598) (42,899) 29,660
Change in cash and cash equivalents 48,699 68,509 (1,230)
Cash and cash equivalents, beginning of year 78,988 10,479 11,709
Cash and cash equivalents, end of year 127,687 78,988 10,479
Supplemental disclosures of cash flow information      
Interest paid 9,932 16,053 15,180
Interest received (3,783) (1,004) (9)
Income tax paid (received), net of tax refunds 29,401 (29) (79)
Non-cash investing and financing activities:      
Changes in accounts payable for capital additions to property, plant and equipment 721 941 948
Right-of-use assets obtained in exchange for operating lease obligations 1,682 626 1,424
Finance lease right-of-use assets removed due to non-renewal of lease 0 0 (2,451)
Finance lease obligations removed due to non-renewal of lease 0 0 2,593
Warrants issued for equity investment in affiliate (Note 17) $ 7,416 $ 0 $ 0
v3.24.3
Consolidated Statement of Stockholders' Deficit - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Additional Paid-In-Capital
Convertible Preferred Stock
Accumulated Other Comprehensive Loss
(Accumulated Deficit) Retained Earnings
Treasury Stock
Beginning Balance (in shares) at Sep. 30, 2021     27,205,269   0     1,782,568
Beginning Balance at Sep. 30, 2021 $ (32,656) $ 74,798 $ 3 $ 96,170 $ 0 $ (44,794) $ (33,753) $ (50,282)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Share-based compensation expense 3,539     3,539        
Restricted stock activity (in shares)     116,556          
Restricted stock activity (1,688)     (1,688)        
Exercise of stock options, cashless (in shares)     15,586          
Stock option activity 284     284        
Net income (loss) (45,759)           (45,759)  
Other comprehensive income, net of tax 2,864         2,864    
Ending Balance (in shares) at Sep. 30, 2022     32,024,911   0     1,782,568
Ending Balance at Sep. 30, 2022 1,382   $ 3 173,103 $ 0 (41,930) (79,512) $ (50,282)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Share-based compensation expense 4,015     4,015        
Restricted stock activity (in shares)     79,545          
Restricted stock activity (376)     (376)        
Exercise of stock options, cashless (in shares)     60,769          
Stock option activity 1,119     1,119        
Net income (loss) 23,812           23,812  
Other comprehensive income, net of tax 10,046         10,046    
Ending Balance (in shares) at Sep. 30, 2023     32,165,225   0     1,782,568
Ending Balance at Sep. 30, 2023 39,998   $ 3 177,861 $ 0 (31,884) (55,700) $ (50,282)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Share-based compensation expense 8,466     8,466        
Restricted stock activity (in shares)     65,495          
Restricted stock activity $ (1,178)     (1,178)        
Exercise of stock options, cashless (in shares) 248,015   239,120          
Stock option activity $ 3,785     3,785        
Net income (loss) 105,547           105,547  
Other comprehensive income, net of tax 5,468         5,468    
Private placement (Note 13) (in shares)     0          
Issuance of warrants (Note 17) 7,416     7,416        
Ending Balance (in shares) at Sep. 28, 2024     32,268,022   0     0
Ending Balance at Sep. 28, 2024 $ 159,564   $ 3 $ 185,977 $ 0 $ (26,416) $ 0 $ 0
v3.24.3
Stockholder Transaction Costs
12 Months Ended
Sep. 28, 2024
Equity [Abstract]  
Stockholder Transaction Costs
13. Stockholders’ (Deficit) Equity

Sale of Common Stock

On December 15, 2021, the Company issued and sold through a private placement an aggregate 4,687,500 shares of its common stock at $16.00 per share (“Private Placement”) to Coliseum Capital Partners, L.P. and Blackwell Partners LLC – Series A (collectively, “Coliseum”), with net proceeds of $74.8 million. Subsequent to the sale, Coliseum owned an approximate 15% equity interest in the Company. During the second half of fiscal 2023, Coliseum sold all of its shares of common stock purchased through the Private Placement (see Note 19, Stockholder Transaction Costs, for further information).

Share Repurchase Program and Common Stock Retirement

On January 31, 2024, the Board of Directors of the Company authorized and approved a share repurchase program for up to $60 million of outstanding shares of the Company’s common stock over a period of 24 months, expiring January 31, 2026. Under the share repurchase program, the Company may repurchase shares through open market purchases, privately negotiated transactions, accelerated share repurchase transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

In the latter part of August and first half of September 2024, the Company repurchased 201,818 shares of its common stock for $9.9 million, pursuant to the share repurchase plan. No such repurchases were made in fiscal 2023. The total remaining authorization for future common stock repurchases under the Company's share repurchase program was $50.1 million as of September 28, 2024.

In mid-September 2024, the Company constructively retired the shares of common stock it had recently repurchased by recording the $9.9 million paid in excess of the $0.0001 par value of each share as a reduction in retained earnings. Later that same month, the Company retired the shares of common stock that had previously been reflected as treasury stock within its historical consolidated financial statements by recording the amount paid in excess of the $0.0001 par value of each share as a $39.9 million reduction in retained earnings, which reduced the value in this account to zero, with the remaining $10.4 million recorded as a reduction in additional paid-in capital.
19. Stockholder Transaction Costs

On June 7, 2023, the Company entered into an underwriting agreement with BofA Securities, Inc. and Barclays Capital Inc., as representatives of the several underwriters and American Securities LLC and Coliseum ("2023 Selling Stockholders"), pursuant to which the 2023 Selling Stockholders agreed to sell 5,175,000 shares of common stock, including the sale of 675,000 shares pursuant to the underwriters’ exercise of their over-allotment option, at a purchase price of $20.00 per share. On September 11, 2023, the Company entered into another underwriting agreement with Barclays Capital, Inc. and the 2023 Selling Stockholders, pursuant to which the 2023 Selling Stockholders agreed to sell 2,500,000 shares of common stock, at purchase price of $21.00 per share (collectively, the "2023 Offerings").

The 2023 Offerings were conducted pursuant to prospectus supplements, dated June 7, 2023 and September 11, 2023, respectively, to the prospectus, dated December 22, 2021 included in the Company’s registration statement on Form S-3 (File No. 333-261858) that
was initially filed with the SEC on December 23, 2021 (the "December 2021 Prospectus"). The 2023 Offerings closed on June 12, 2023 and September 14, 2023, respectively.
v3.24.3
Nature of Business and Basis of Presentation
12 Months Ended
Sep. 28, 2024
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 ("BBBC"), 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 BBBC’s sales are made to an independent dealer network, which in turn sells buses to ultimate end users. 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. We are headquartered in Macon, Georgia.

Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and accounts have been eliminated in consolidation.

The Company’s fiscal year ends on the Saturday closest to September 30 with its quarters consisting of thirteen weeks in most years. The fiscal years ended September 28, 2024, September 30, 2023 and October 1, 2022 are referred to herein as “fiscal 2024,” “fiscal 2023” and “fiscal 2022,” respectively. There were 52 weeks in fiscal 2024, fiscal 2023 and fiscal 2022.
v3.24.3
Summary of Significant Accounting Policies and Recently Issued Accounting Standards
12 Months Ended
Sep. 28, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies and Recently Issued Accounting Standards Summary of Significant Accounting Policies and Recently Issued Accounting Standards
Use of Estimates and Assumptions

The preparation of financial statements in accordance with accounting principles generally accepted in the U.S. (“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 intangible assets, the accounting for self-insurance reserves, warranty reserves, pension obligations, income taxes, environmental liabilities and contingencies. Future events, including continued supply chain constraints and their 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 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.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company deposits its cash and cash equivalents, which are or may become in excess of federally insured limits, with many of the same high credit-quality financial institutions with which it has outstanding loans under the Credit Agreement (defined below) and evaluates and manages the risk of credit loss on a net basis. To date, the Company has not experienced any losses related to its cash and cash equivalents balances.

Allowance for Doubtful Accounts

Accounts receivable consist of amounts owed to the Company by customers. The Company monitors collections and payments from customers, and generally does not require collateral. Accounts receivable are generally due within 30 to 90 days. The Company provides for the possible inability to collect accounts receivable by recording an allowance for doubtful accounts. The Company reserves for an account when it is considered potentially uncollectible. The Company estimates its allowance for doubtful accounts based on historical experience, aging of accounts receivable and information regarding the creditworthiness of its customers. To date, losses have been within the range of management’s expectations. The Company writes off accounts receivable if it determines that the account is uncollectible.

Revenue Recognition

The Company records revenue when the following five steps have been completed:

1.Identification of the contract(s) with a customer;
2.Identification of the performance obligation(s) in the contract;
3.Determination of the transaction price;
4.Allocation of the transaction price to the performance obligation(s) in the contract; and
5.Recognition of revenue, when, or as, we satisfy performance obligations.

The Company records revenue when performance obligations are satisfied by transferring control of a promised good or service to the customer. The Company evaluates the transfer of control primarily from the customer’s perspective where the customer has the ability to direct the use of, and obtain substantially all of the remaining benefits from, that good or service.

Our product revenue includes sales of buses and bus parts, each of which are generally recognized as revenue at a point in time, once all conditions for revenue recognition have been met, as they represent our performance obligations in a sale. For buses, control is generally transferred and the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the product when the product is delivered or when the product has been completed, is ready for delivery, has been paid for, its title has transferred and it is awaiting pickup by the customer. For certain bus sale transactions, we may provide incentives including payment
of a limited amount of future interest charges our customers may incur related to their purchase and financing of the bus with third party financing companies. We reduce revenue at the recording date by the full amount of potential future interest we may be obligated to pay, which is an application of the "most likely amount" method. For parts sales, control is generally transferred when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the products, which generally coincides with the point in time when the customer has assumed risk of loss and title has passed for the goods sold.

The Company sells extended warranties related to its products. Revenue related to these contracts is recognized based on the stand-alone selling price of the arrangement, on a straight-line basis over the contract period, and costs thereunder are expensed as incurred.

The Company includes shipping and handling revenues, which are costs billed to customers, in net sales on the Consolidated Statements of Operations. Shipping and handling costs incurred are included in cost of goods sold.

See Note 12, Revenue, for further revenue information. See Note 3, Supplemental Financial Information, for further information on warranties.

Self-Insurance

The Company is self-insured for the majority of its workers’ compensation and medical claims. The expected ultimate cost for claims incurred as of the balance sheet date is not discounted and is recognized as a liability. Self-insurance losses for claims filed and claims incurred but not reported are accrued based upon estimates of the aggregate liability for uninsured claims, using loss development factors and actuarial assumptions followed in the insurance industry and historical loss development experience. See Note 3, Supplemental Financial Information, and Note 16, Benefit Plans, for further information.

Financial Instruments

The Company’s financial instruments consist primarily of cash and cash equivalents, trade receivables, accounts payable, revolving credit facility and long-term debt. The carrying amounts of cash and cash equivalents, trade receivables and accounts payable approximate their fair values because of the short-term maturity and highly liquid nature of these instruments. The carrying value of the Company’s revolving credit facility and long-term debt approximates fair value due to the variable rates of interest, which reset frequently, relating to these debt instruments. See Note 8, Debt, for further discussion.

Derivative Instruments

In limited circumstances, we may utilize derivative instruments to manage certain exposures to changes in foreign currency exchange rates or interest rates relating to variable rate debt. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these derivative instruments are recognized in our operating results or included in other comprehensive income, depending on whether the derivative instrument qualifies, and is appropriately designated, for hedge accounting treatment and if so, whether it represents a fair value or cash flow hedge. Gains and losses on derivative instruments are recognized in the operating results line item that reflects the underlying exposure that was mitigated either via a formal hedge accounting relationship or economically.

Inventories

The Company values inventories at the lower of cost or net realizable value. The Company uses a standard costing methodology, which approximates cost on a first-in, first-out (“FIFO”) basis. The Company reviews the standard costs of raw materials, work-in-process and finished goods inventory on a periodic basis to ensure that its inventories approximate current actual costs. Manufacturing cost includes raw materials, direct labor and manufacturing overhead. Obsolete inventory amounts are based on historical usage and assumptions about future demand.
Property, Plant and Equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization is calculated on a straight-line basis using the following periods, which represent the estimated useful lives of the assets:
Years
Buildings15 - 33
Machinery and equipment5 - 10
Office furniture, equipment and other3 - 10
Computer equipment and software3 - 7

Costs, including capitalized interest and certain design, construction and installation costs related to assets that are under construction and are in the process of being readied for their intended use, are recorded as construction in progress and are not depreciated until such time as the subject asset is placed in service. Repairs and maintenance that do not extend the useful life of the asset are expensed as incurred. Upon sale, retirement, or other disposition of these assets, the costs and related accumulated depreciation are removed from the respective accounts and any gain or loss on the disposition is included on our Consolidated Statements of Operations.

Leases

We determine if an arrangement is or contains a lease at inception. The Company enters into lease arrangements primarily for office space, warehouse space, or a combination of both. We elected to account for leases with initial terms of 12 months or less by recording operating lease expense on a straight-line basis instead of recording lease assets or liabilities. For a lease with an initial term greater than 12 months, the Company records a right-of-use (“ROU”) asset and lease liability on the Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.

We determine whether the lease is an operating or finance lease at inception based on the information and expectations for the lease at that time. Operating lease ROU assets are included in property, plant and equipment and the lease liabilities are included in other current liabilities and other liabilities on our Consolidated Balance Sheets. Finance lease ROU assets are included in finance lease ROU assets and the lease liabilities are included in finance lease obligations (current) and finance lease obligations (long-term) on our Consolidated Balance Sheets.

Lease ROU assets and liabilities are recorded at commencement date based on the present value of lease payments over the lease term. As the leases recorded typically do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets also include any base rental or lease payments made and exclude lease incentives.

The two components of operating lease expense, amortization and interest, are recognized on a straight-line basis over the lease term as a single expense element within selling, general and administrative expenses on the Consolidated Statements of Operations. Under the finance lease model, interest on the lease liability is recognized in interest expense and amortization of ROU assets is recorded on the Consolidated Statements of Operations based on the underlying use of the assets.

Impairment of Long-Lived Assets

The Company reviews its long-lived assets, including property, plant and equipment, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If we are required to analyze recoverability based on a triggering event, undiscounted future cash flows over the estimated remaining life of the asset, or asset group, are projected. If these projected cash flows are less than the carrying amount, an impairment loss is recognized to the extent the fair value of the asset less any costs of disposition is less than the carrying amount of the asset. Judgments regarding the existence of impairment indicators are based on market and operational performance. Evaluating potential impairment also requires estimates of future operating results and cash flows.

Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price of acquired businesses over the fair value of the assets acquired less liabilities assumed in connection with such acquisition. In accordance with the provisions of Accounting Standards Codification Topic ("ASC") 350, Intangibles—Goodwill and Other, goodwill and intangible assets with indefinite useful lives acquired in an acquisition are not
amortized, but instead are tested for impairment at least annually or more frequently should an event occur or circumstances indicate that the carrying amount may be impaired. Such events or circumstances may include a significant change in business climate, economic and industry trends, legal factors, negative operating performance indicators, significant competition, changes in strategy or disposition of a reporting unit or a portion thereof.

We have two reporting units for which we test goodwill for impairment: Bus and Parts. In the evaluation of goodwill for impairment, we have the option to perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of a reporting unit to its carrying amount, including goodwill. When performing a qualitative assessment, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. If, when performing a quantitative assessment, the fair value of a reporting unit is less than its carrying amount, then the amount of the impairment loss, if any, must be measured using step two of the impairment analysis. In step two of the analysis, we would record an impairment loss equal to the excess of the carrying value of the reporting unit’s goodwill over its implied fair value, should such a circumstance arise.

The fair value of the reporting units is estimated primarily using the income approach, which incorporates the use of discounted cash flow ("DCF") analysis. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including markets and market shares, sales volumes and prices, costs to produce, tax rates, capital spending, discount rate and working capital changes. The cash flow forecasts are based on approved strategic operating plans and long-term forecasts.

In the evaluation of indefinite lived assets for impairment, we have the option to perform a qualitative assessment to determine whether further impairment testing is necessary, or to perform a quantitative assessment by comparing the fair value of an asset to its carrying amount. The Company’s intangible asset with an indefinite useful life is the "Blue Bird" trade name. When performing a qualitative assessment, an entity is not required to calculate the fair value of the asset unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. If a qualitative assessment is not performed or if a quantitative assessment is otherwise required, then the entity compares the fair value of an asset to its carrying amount and the amount of the impairment loss, if any, is the difference between fair value and carrying value. The fair value of our trade name is derived by using the relief from royalty method, which discounts the estimated cash savings we realized by owning the name instead of otherwise having to license or lease it.

Our intangible assets with a definite useful life are amortized over their estimated useful lives, 7 or 20 years, using the straight-line method. The useful lives of our intangible assets are reassessed annually and they are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable.

Debt Issue Costs

Amounts paid directly to lenders or as an original issue discount and amounts classified as issuance costs are recorded as a reduction in the carrying value of the debt, for which the Company had deferred financing costs totaling $1.3 million and $1.5 million at September 28, 2024 and September 30, 2023, respectively, incurred in connection with its debt facilities and related amendments.

All deferred financing costs are amortized to interest expense. The effective interest method is used for debt discounts related to the term loan. The Company’s amortization of these costs was $0.4 million, $1.5 million and $1.5 million for fiscal 2024, fiscal 2023 and fiscal 2022, respectively, and is reflected as a component of interest expense on the Consolidated Statements of Operations. See Note 8, Debt, for a discussion of the Company’s indebtedness.

Pensions

The Company accounts for its pension benefit obligations using actuarial models. The measurement of plan obligations and assets was made at September 30, 2024. Effective January 1, 2006, the benefit plan was frozen to all participants. No accrual of future benefits is earned or calculated beyond this date. Accordingly, our obligation estimate is based on benefits earned at that time discounted using an estimate of the single equivalent discount rate determined by matching the plan’s future expected cash flows to spot rates from a yield curve comprised of high-quality corporate bond rates of various durations. The Company recognizes the funded status of its pension plan obligations on the Consolidated Balance Sheet and records in other comprehensive income certain gains and losses that arise during the period, but are deferred under pension accounting rules. Pension expense is recognized as a component of other (expense) income, net on our Consolidated Statements of Operations.
Product Warranty Costs

The Company’s products are generally warranted against defects in material and workmanship for a period of one year to five years. A provision for estimated warranty costs is recorded at the time a unit is sold. The methodology to determine the warranty reserve calculates the average expected warranty claims using warranty claims by body type, by month, over the life of the bus, which is then multiplied by remaining months under warranty, by warranty type. Management believes the methodology provides an accurate reserve estimate. Actual claims incurred could differ from the original estimates, requiring future adjustments.

The Bus segment also sells extended warranties related to its products. Revenue related to these contracts is recognized on a straight-line basis over the contract period and costs thereunder are expensed as incurred. All warranty expenses are recorded in the cost of goods sold line on the Consolidated Statements of Operations. The current methodology to determine short-term extended warranty income reserve is based on twelve months of the remaining warranty value for each effective extended warranty at the balance sheet date. See Note 3, Supplemental Financial Information, for further information.

Research and Development

Research and development costs are expensed as incurred and included in selling, general and administrative expenses on our Consolidated Statements of Operations. For fiscal 2024, fiscal 2023 and fiscal 2022, the Company expensed $9.4 million, $6.6 million and $6.1 million, respectively.

Income Taxes

The Company accounts for income taxes in accordance with the provisions of ASC 740, Income Taxes (“ASC 740”), which requires an asset and liability approach to financial accounting and reporting for income taxes. Under this approach, deferred income taxes represent the expected future tax consequences of temporary differences between the financial statement and tax basis of assets and liabilities. The Company evaluates its ability, based on the weight of evidence available, to realize future tax benefits from deferred tax assets and establishes a valuation allowance to reduce a deferred tax asset to a level which, more likely than not, will be realized in future years.

The Company recognizes uncertain tax positions based on a cumulative probability assessment if it is more likely than not that the tax position will be sustained upon examination by an appropriate tax authority with full knowledge of all information. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Amounts recorded for uncertain tax positions are periodically assessed, including the evaluation of new facts and circumstances, to ensure sustainability of the positions. The Company records interest and penalties related to unrecognized tax benefits in income tax expense.

The Company's policy for releasing income tax effects from accumulated other comprehensive loss is to use a specific identification approach.

Environmental Liabilities

The Company records reserves for environmental liabilities on a discounted basis when environmental investigation and remediation obligations are probable and related costs are reasonably estimable. See Note 10, Guarantees, Commitments and Contingencies, for further information.

Retirement of Common Stock

When the Company decides to actually or constructively retire the shares of common stock it has repurchased, including those repurchases that have been previously reflected as treasury stock within its historical consolidated financial statements, it records the amount paid in excess of par value as a reduction in retained earnings, to the extent such recording does not reduce retained earning to an amount below zero. In those instances in which such recording would reduce retained earnings below zero, it records the difference as a reduction in additional paid-in capital. See Note 13, Stockholders' (Deficit) Equity, for further information.

Segment Reporting

Operating segments are components of an entity that engage in business activities with discrete financial information available that is regularly reviewed by the chief operating decision maker (“CODM”) in order to assess performance and allocate resources. The Company’s CODM is its President and Chief Executive Officer. As discussed further in Note 11, Segment Information, the Company determined its operating and reportable segments to be Bus and Parts. The Bus segment includes the manufacturing and assembly of school buses to be sold to a variety of customers across the U.S., Canada and in certain limited international markets. The Parts
segment consists primarily of the purchase of parts from third parties to be sold to dealers within the Company’s network and certain large fleet customers.

Statement of Cash Flows

We classify distributions received from our equity method investment(s), if any, using the nature of distribution approach, such that distributions received are classified based on the nature of the activity of the investee that generated the distribution. Returns on investment are classified within operating activities, while returns of investment are classified within investing activities.

The exchange of cash, if any, associated with derivative transactions is classified in the same category as the cash flows from the underlying items giving rise to the foreign currency or interest rate exposures.

Recently Issued Accounting Standards

ASU 2023-07 On November 27, 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses on an interim and annual basis. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

ASU 2023-09 On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires entities to disclose more detailed information in their reconciliation of their statutory tax rate to their effective tax rate. Public business entities ("PBEs") are required to provide this incremental detail in a numerical, tabular format. The ASU also requires entities to disclose more detailed information about income taxes paid, including by jurisdiction; pretax income (or loss) from continuing operations; and income tax expense (or benefit). The ASU is effective for PBEs in fiscal years beginning after December 15, 2024, with early adoption permitted.

ASU 2024-03 On November 4, 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires PBEs to disclose disaggregated information about certain income statement expense line items. The ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.

The new ASUs will not impact amounts recorded in the consolidated financial statements, but, instead, will require more detailed disclosures in the footnotes to the financial statements. The Company plans to provide the updated disclosures required by the ASUs in the periods in which they are effective.

Any recently issued accounting standards not identified above do not apply to the Company or the impact is expected to be immaterial.
v3.24.3
Supplemental Financial Information
12 Months Ended
Sep. 28, 2024
Condensed Financial Information [Abstract]  
Supplemental Financial Information
3. Supplemental Financial Information

Accounts Receivable

Accounts receivable, net, consisted of the following at the dates indicated:
(in thousands)
September 28, 2024September 30, 2023
Accounts receivable$59,199 $12,674 
Allowance for doubtful accounts(100)(100)
Accounts receivable, net $59,099 $12,574 
Product Warranties

The following table reflects activity in accrued warranty cost (current and long-term portion combined) for the fiscal years presented:
(in thousands)202420232022
Balance at beginning of period$15,434 $15,970 $18,550 
Add: current period accruals9,985 9,084 7,348 
Less: current period reductions of accrual(9,240)(9,620)(9,928)
Balance at end of period$16,179 $15,434 $15,970 

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 years to five years, for the fiscal years presented:
(in thousands)202420232022
Balance at beginning of period$23,123 $18,795 $20,144 
   Add: current period deferred income13,245 12,013 6,847 
   Less: current period recognition of income(8,406)(7,685)(8,196)
Balance at end of period$27,962 $23,123 $18,795 

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 $9.4 million of the outstanding contract liability in fiscal 2025, and the remaining balance thereafter.

Other Current Liabilities

The balance in other current liabilities as of September 28, 2024 and September 30, 2023 includes approximately $2.2 million and $18.5 million, respectively, of funds awarded by the U.S. Environmental Protection Agency in administering the Clean School Bus Program (“CSBP”) that was signed into law in mid-November 2021. The CSBP allocates federal funds to help local school jurisdictions purchase zero- and low-emission school buses over a five year period. The Company recorded the receipt of these funds as deferred revenue. The balance at September 30, 2023 was largely recognized as revenue during the first half of 2024 and the Company expects to recognize the vast majority of the September 28, 2024 balance as revenue during the first half of fiscal 2025, as the underlying buses are produced and delivered.

Self-Insurance

The following table reflects the total accrued self-insurance liability, comprised of workers' compensation and health insurance related claims, at the dates indicated:
(in thousands)September 28, 2024September 30, 2023
Current portion$5,008 $4,475 
Long-term portion2,248 1,771 
Total accrued self-insurance$7,256 $6,246 

The current and long-term portions of the accrued self-insurance liability are included in accrued expenses and other liabilities, respectively, on the accompanying Consolidated Balance Sheets.

Shipping and Handling

Shipping and handling revenues recognized were $21.7 million, $18.5 million and $16.0 million for fiscal 2024, fiscal 2023 and fiscal 2022, respectively. The related cost of goods sold were $19.9 million, $16.6 million and $14.3 million for fiscal 2024, fiscal 2023 and fiscal 2022, respectively.
Derivative Instruments

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 established a range where we paid the counterparty if the three month U.S. Dollar London Interbank Offered Rate ("LIBOR") fell below the established floor rate of 1.5%, and the counterparty paid us if the three month LIBOR exceeded the ceiling rate of 3.3%. The collar settled quarterly through the termination date of September 30, 2022. No payments or receipts were exchanged on the interest rate collar contracts unless interest rates rose above or fell below the contracted ceiling or floor rates. Throughout much of fiscal 2022, the three month LIBOR fell below the established floor, which required us to make $1.2 million in total cash payments to the counterparty.
v3.24.3
Inventories
12 Months Ended
Sep. 28, 2024
Inventory Disclosure [Abstract]  
Inventories
4. Inventories

The following table presents components of inventories at the dates indicated:
(in thousands)September 28, 2024September 30, 2023
Raw materials$83,027 $88,116 
Work in process32,556 45,875 
Finished goods12,215 1,295 
Total inventories$127,798 $135,286 
v3.24.3
Property, Plant and Equipment
12 Months Ended
Sep. 28, 2024
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
5. Property, Plant and Equipment

Property, plant and equipment, net, consisted of the following at the dates indicated:
(in thousands)September 28, 2024September 30, 2023
Land$2,504 $2,504 
Buildings65,237 64,206 
Machinery and equipment121,048 115,248 
Office furniture, equipment and other2,467 2,355 
Computer equipment and software20,718 20,662 
Construction in process12,408 7,151 
Property, plant and equipment, gross224,382 212,126 
Accumulated depreciation and amortization(131,413)(121,323)
Operating lease right-of-use assets (1)4,353 4,298 
Property, plant and equipment, net$97,322 $95,101 
(1) Further information is included in Note 10, Guarantees, Commitments and Contingencies.

Depreciation and amortization expense for property, plant and equipment was $12.2 million, $13.3 million, and $10.9 million for fiscal 2024, fiscal 2023, and fiscal 2022, respectively.

We capitalized $0.3 million of interest expense in fiscal 2024 related to the construction of plant manufacturing assets.

A $1.4 million impairment loss for certain equipment that was no longer used in the Bus segment production process was recognized in fiscal 2022. No impairment loss was recognized in fiscal 2024 or fiscal 2023.
v3.24.3
Goodwill
12 Months Ended
Sep. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill
6. Goodwill

The carrying amounts of goodwill by reporting unit are as follows at the dates indicated: 
(in thousands)Gross
Goodwill
Accumulated
Impairments
Net Goodwill
September 28, 2024
Bus$15,139 $— $15,139 
Parts3,686 — 3,686 
Total$18,825 $— $18,825 
September 30, 2023
Bus$15,139 $— $15,139 
Parts3,686 — 3,686 
Total$18,825 $— $18,825 

In the fourth quarters of fiscal 2024 and fiscal 2023, we performed our annual impairment assessment of goodwill that did not indicate that an impairment existed; therefore, no impairments of goodwill have been recorded.
v3.24.3
Intangible Assets
12 Months Ended
Sep. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
7. Intangible Assets

The gross carrying amounts and accumulated amortization of intangible assets are as follows at the dates indicated: 
 September 28, 2024September 30, 2023
(in thousands)Gross
Carrying
Amount
Accumulated
Amortization
TotalGross
Carrying
Amount
Accumulated
Amortization
Total
Finite lived: Engineering designs$3,156 $3,156 $— $3,156 $3,156 $— 
Finite lived: Customer relationships37,425 33,687 3,738 37,425 31,817 5,608 
Total amortized intangible assets40,581 36,843 3,738 40,581 34,973 5,608 
Indefinite lived: Trade name39,816 — 39,816 39,816 — 39,816 
Total intangible assets$80,397 $36,843 $43,554 $80,397 $34,973 $45,424 

Management considers the "Blue Bird" trade name to have an indefinite useful life and, accordingly, it is not subject to amortization. Management reached this conclusion principally due to the longevity of the Blue Bird name and because management considers renewal upon reaching the legal limit of the trademarks related to the trade name as perfunctory. The Company expects to maintain usage of the trade name on existing products and introduce new products in the future that will also display the trade name. During the fourth quarters of fiscal 2024 and fiscal 2023, we performed our annual impairment assessment of our trade name, which did not indicate that an impairment existed; therefore, no impairment of our indefinite lived intangible asset has been recorded.

Customer relationships are amortized on a straight-line basis over an estimated life of 20 years. Engineering designs are amortized on a straight-line basis over an estimated life of 7 years. Total amortization expense for intangible assets was $1.9 million, $2.0 million, and $2.0 million for fiscal 2024, fiscal 2023, and fiscal 2022, respectively.

Remaining amortization expense for finite lived intangible assets is expected to be as follows:
(in thousands)
Fiscal Years EndingAmortization Expense
2025$1,869 
20261,869 
Total amortization expense$3,738 
v3.24.3
Debt
12 Months Ended
Sep. 28, 2024
Debt Disclosure [Abstract]  
Debt
8. Debt

2016 Credit Agreement

On December 12, 2016, BBBC ("Borrower"), executed a $235.0 million five-year credit agreement with Bank of Montreal, which acted as the administrative agent and an issuing bank, Fifth Third Bank, as co-syndication agent and an issuing bank, and Regions Bank, as co-syndication agent, together with other lenders ("2016 Credit Agreement").

The credit facilities provided for under the 2016 Credit Agreement consisted of a term loan facility in an aggregate initial principal amount of $160.0 million (the “2016 Term Loan Facility”) and a revolving credit facility with aggregate commitments of $75.0 million. The revolving credit facility included a $15.0 million letter of credit sub-facility and a $5.0 million swing-line sub-facility (“2016 Revolving Credit Facility,” and together with the 2016 Term Loan Facility, each a “2016 Credit Facility” and collectively, the “2016 Credit Facilities”). The obligations under the 2016 Credit Agreement and the related loan documents (including without limitation, the borrowings under the 2016 Credit Facilities and obligations in respect of certain cash management and hedging obligations owing to the agents, the lenders or their affiliates), were, in each case, secured by a lien on and security interest in substantially all of the assets of the Company and its subsidiaries including the Borrower, with certain exclusions as set forth in a collateral agreement entered into on the closing date.

First Amendment to the 2016 Credit Agreement

On September 13, 2018, the Company entered into a first amendment to the 2016 Credit Agreement ("First Amended 2016 Credit Agreement"). The First Amended 2016 Credit Agreement provided for additional funding of $50.0 million and was funded in the first quarter of the fiscal year that ended September 28, 2019. Substantially all of the proceeds were used to complete a tender offer to purchase shares of our common and preferred stock.

The First Amended 2016 Credit Agreement also increased the revolving credit facility to $100.0 million from $75.0 million, a $25.0 million increase. The amendment extended the maturity date to September 13, 2023, five years from the effective date of the first amendment. The first amendment also amended the interest rate pricing matrix (as follows) as well as the principal payment schedule (which was subsequently amended as discussed below). In connection with the First Amended 2016 Credit Agreement, we incurred $2.0 million of debt discount and issuance costs, which were recorded as contra-debt and were being amortized over the life of the Amended 2016 Credit Agreement (defined below) using the effective interest method.

The interest rate on the 2016 Term Loan Facility was (i) from the first amendment effective date until the first quarter ended on or about September 30, 2018, LIBOR plus 2.25%, and (ii) commencing with the fiscal quarter ended on or about September 30, 2018 and thereafter, dependent on the Total Net Leverage Ratio ("TNLR") of the Company, an election of either base rate ("ABR") or LIBOR pursuant to the table below:
LevelTotal Net Leverage RatioABR Loans
LIBOR Loans
ILess than 2.00x0.75%1.75%
IIGreater than or equal to 2.00x and less than 2.50x1.00%2.00%
IIIGreater than or equal to 2.50x and less than 3.00x1.25%2.25%
IVGreater than or equal to 3.00x and less than 3.25x1.50%2.50%
VGreater than or equal to 3.25x and less than 3.50x1.75%2.75%
VIGreater than 3.50x2.00%3.00%

Second Amendment to the 2016 Credit Agreement

On May 7, 2020, the Company entered into a second amendment to the 2016 Credit Agreement and First Amended 2016 Credit Agreement (“Second Amended 2016 Credit Agreement”). The Second Amended 2016 Credit Agreement provided $41.9 million in additional revolving commitments bringing the total revolving commitments to $141.9 million. The revolving commitments under the Second Amended 2016 Credit Agreement were scheduled to mature on September 13, 2023, which was the fifth anniversary of the effective date of the First Amended 2016 Credit Agreement. 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 were being amortized on a straight-line basis to interest expense until maturity of the Amended 2016 Credit Agreement (defined below).
Third Amendment to the 2016 Credit Agreement

On December 4, 2020, the Company executed a third amendment to the 2016 Credit Agreement, First Amended 2016 Credit Agreement and Second Amended 2016 Credit Agreement ("Third Amended 2016 Credit Agreement"). The Third Amended 2016 Credit Agreement, among other things, provided for certain temporary amendments to the 2016 Credit Agreement from the third amendment effective date through and including the first date on which (a)(i) a compliance certificate was 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 elected to terminate the Limited Availability Period; and (b) the absence of a default or event of default.

Amendments to the financial performance covenants provided that during the Limited Availability Period, a higher maximum TNLR was permitted, and required the Company to maintain liquidity (in the form of undrawn availability under the 2016 Revolving Credit Facility and unrestricted cash and cash equivalents) of at least $15.0 million. For the duration between the fiscal quarter ended on or around December 31, 2020 and the fiscal quarter ended on or around September 30, 2021 that fell within the Limited Availability Period, a quarterly minimum consolidated EBITDA covenant applied instead of a maximum TNLR.

The pricing grid in the First Amended 2016 Credit Agreement, which was based on the ratio of the Company’s consolidated net debt to consolidated EBITDA, remained unchanged.  However, during the Limited Availability Period, an additional margin of 0.50% applied.

During the Limited Availability Period, the Amended 2016 Credit Agreement required that Borrower prepay existing revolving loans and, if undrawn and unreimbursed letters of credit exceeded $7.0 million, cash collateralize letters of credit if unrestricted cash and cash equivalents exceeded $20.0 million, as determined on a semimonthly basis.  Any issuance, amendment, renewal, or extension of credit during the Limited Availability Period could not cause unrestricted cash and cash equivalents to exceed $20.0 million, or cause the aggregate outstanding 2016 Revolving Credit Facility principal to exceed $100.0 million. The Third Amended 2016 Credit Agreement also implemented 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, the Amended 2016 Credit Agreement (defined below) set forth additional monthly reporting requirements, and required 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, approximately $1.1 million and $0.9 million was capitalized within other assets and long-term debt (as a contra-balance), respectively, on the Consolidated Balance Sheets and were being amortized as an adjustment to interest expense on a straight-line basis and utilizing the effective interest method, respectively, until maturity of the Amended 2016 Credit Agreement (defined below). The remaining approximate $0.5 million was recorded to loss on debt modification on the Consolidated Statements of Operations.

In conjunction with executing the third amendment, previously capitalized lender fees and other issuance costs incurred in prior periods totaling approximately $0.1 million were expensed to loss on debt modification on the Consolidated Statements of Operations.

Fourth Amendment to the 2016 Credit Agreement

On November 24, 2021, the Company executed a fourth amendment to the 2016 Credit Agreement, First Amended 2016 Credit Agreement, Second Amended 2016 Credit Agreement and Third Amended 2016 Credit Agreement (the "Fourth Amended 2016 Credit Agreement"). The Fourth Amended 2016 Credit Agreement, among other things, provided for certain temporary amendments to the 2016 Credit Agreement from the third amendment effective date through and including (a) April 1, 2023 (the “Amended Limited Availability Period”), or (b) the first date on which Borrower elected to terminate the Amended Limited Availability Period, in each case, subject to (x) the absence of a default or event of default and (y) pro forma compliance with the financial covenant performance covenants under the Fourth Amended 2016 Credit Agreement.

With respect to the financial performance covenants, during the Amended Limited Availability Period for the fiscal quarters ended January 1, 2022 through October 1, 2022, the TNLR requirement was not applicable, although it continued to impact the interest rate that was charged on outstanding borrowings as discussed below. Instead, the minimum consolidated EBITDA that the Company was required to maintain during the Amended Limited Availability Period was updated to include fiscal 2022 as set forth in the table below (in millions):
PeriodMinimum Consolidated EBITDA
Fiscal quarter ending January 1, 2022$14.5
Fiscal quarter ending April 2, 2022$(4.5)
Fiscal quarter ending July 2, 2022$(6.8)
Fiscal quarter ending October 1, 2022$20.0

However, in the event that Borrower elected to terminate the Amended Limited Availability Period in fiscal 2022, the maximum TNLR permitted was 3.50x.

The minimum liquidity (in the form of undrawn availability under the 2016 Revolving Credit Facility and unrestricted cash and cash equivalents) that the Company was required to maintain during the Amended Limited Availability Period was amended as set forth in the table below (in millions):

PeriodMinimum Liquidity
Fourth amendment effective date through January 1, 2022$10.0
January 2, 2022 through April 2, 2022$5.0
April 3, 2022 through July 2, 2022$15.0
Thereafter$20.0

Additionally, a new financial performance covenant was added in the Fourth Amended 2016 Credit Agreement, requiring that school bus units manufactured by the Company (“Units”) not fall below the pre-set thresholds set forth in the table below on a three month trailing basis (“Units Covenant”). The Units Covenant was triggered only if the Company’s liquidity for the most-recently ended fiscal month was less than $50 million during the Amended Limited Availability Period:

PeriodMinimum Units Manufactured
Three month period ending November 27, 20211,128
Three month period ending January 1, 2022776
Three month period ending January 29, 2022748
Three month period ending February 26, 2022727
Three month period ending April 2, 2022763
Three month period ending April 30, 20221,111
Three month period ending May 28, 20221,525
Three month period ending July 2, 20222,053
Three month period ending July 30, 2022
2,072
Three month period ending August 27, 20222,199
Three month period ending October 1, 20222,306

If the Units during any three fiscal month period set forth above was less than the minimum required by the Units Covenant, Borrower could elect to carry forward up to 50% of certain applicable excess Units to satisfy the Units Covenant requirement. However, Borrower could not make such election in two consecutive three fiscal month periods.

The pricing grid in the Fourth Amended 2016 Credit Agreement, which was based on the TNLR, was determined in accordance with the amended pricing matrix set forth below:
LevelTotal Net Leverage RatioABR Loans
LIBOR Loans
ILess than 2.00x0.75%1.75%
IIGreater than or equal to 2.00x and less than 2.50x1.00%2.00%
IIIGreater than or equal to 2.50x and less than 3.00x1.25%2.25%
IVGreater than or equal to 3.00x and less than 3.25x1.50%2.50%
VGreater than or equal to 3.25x and less than 3.50x1.75%2.75%
VIGreater than or equal to 3.50x and less than 4.50x2.00%3.00%
VIIGreater than or equal to 4.50x and less than 5.00x3.25%4.25%
VIIIGreater than 5.00x4.25%5.25%

During the Amended Limited Availability Period (notwithstanding the pricing grid set forth above), the applicable rate was (a) solely to the extent that the aggregate revolving exposures exceeded $100.0 million, 5.75% with respect to such excess and (b) with respect to all other revolving exposures, the sum of the rate determined by the administrative agent in accordance with the pricing grid set forth above, plus 0.50%.

Additional allowances were made in the Fourth Amended 2016 Credit Agreement for the Company to issue or incur up to $100.0 million of qualified equity interests issued by the Company, unsecured subordinated indebtedness or unsecured convertible indebtedness (collectively, “Junior Capital”). Upon the issuance or incurrence of any Junior Capital, the Company was required to prepay the outstanding revolving loans (with no permanent reduction in the revolving commitments) in an amount equal to the lesser of (a) 100% of the net proceeds from such Junior Capital and (b) the aggregate of revolving exposures then outstanding. Prior to the initial issuance or incurrence of any Junior Capital, any issuance, amendment, renewal, or extension of credit during the Amended Limited Availability Period could not cause the aggregate outstanding 2016 Revolving Credit Facility principal to exceed $110.0 million (“Availability Cap”). Following the issuance and sale of $75.0 million of common stock in a private placement transaction on December 15, 2021 (see Note 13, Stockholders' (Deficit) Equity, for further details), the Availability Cap was permanently reduced to $100.0 million.

For the duration of the Amended Limited Availability Period, the Fourth Amended 2016 Credit Agreement set forth additional monthly reporting requirements in connection with the manufactured school bus units required by the financial performance covenants, when applicable.

The Company incurred approximately $2.5 million in lender fees and other issuance costs relating to the fourth amendment. Of such total, approximately $1.1 million and $0.8 million was capitalized within other assets and long-term debt (as a contra-balance), respectively, on the Consolidated Balance Sheets and was being amortized as an adjustment to interest expense on a straight-line basis and utilizing the effective interest method, respectively, until maturity of the Amended 2016 Credit Agreement (defined below). The remaining approximate $0.5 million was recorded to loss on debt modification on the Consolidated Statements of Operations.

In conjunction with executing the fourth amendment, previously capitalized lender fees and other issuance costs incurred in prior periods totaling approximately $0.1 million were also expensed to loss on debt modification on the Consolidated Statements of Operations.

Fifth Amendment and Limited Waiver to the 2016 Credit Agreement

On September 2, 2022, the Company executed a fifth amendment and limited waiver to the 2016 Credit Agreement, First Amended 2016 Credit Agreement, Second Amended 2016 Credit Agreement, Third Amended 2016 Credit Agreement and Fourth Amended 2016 Credit Agreement ("Fifth Amended 2016 Credit Agreement"). The Fifth Amended 2016 Credit Agreement, among other things, resulted in Borrower and administrative agent jointly electing an early opt-in to change one of the market interest rate indices that Borrower could elect to accrue interest on outstanding borrowings from LIBOR, which was discontinued subsequent to June 30, 2023, to the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York ("SOFR"). Such change became effective at the end of the applicable interest period for any LIBOR borrowings outstanding on the fifth amendment effective date.

The Fifth Amended 2016 Credit Agreement also provided covenant relief, through December 31, 2022, via a waiver of the $20.0 million minimum consolidated EBITDA covenant calculated on a four quarter trailing basis for the fiscal quarter ended October 1, 2022 and the 2,306 minimum Units Covenant calculated on a three fiscal month trailing basis for the fiscal month ended October 1, 2022. The Company requested such covenant relief given the supply chain disruptions that continued to challenge the Company throughout fiscal 2022.

Finally, the Fifth Amended 2016 Credit Agreement required the Company to provide a rolling thirteen week cash flow forecast to the administrative agent, on a monthly basis, beginning with the fiscal month ended August 27, 2022 and ending with the fiscal month ending April 1, 2023.
The Company incurred approximately $0.3 million in lender fees and other issuance costs relating to the fifth amendment. Of such total, approximately $0.1 million and $0.1 million was capitalized within other assets and long-term debt (as a contra-balance), respectively, on the Consolidated Balance Sheets and was being amortized as an adjustment to interest expense on a straight-line basis and utilizing the effective interest method, respectively, until maturity of the Amended 2016 Credit Agreement (defined below). The remaining approximate $0.1 million was recorded to loss on debt modification on the Consolidated Statements of Operations.

Sixth Amendment to the 2016 Credit Agreement

On November 21, 2022, the Company executed a sixth amendment to the 2016 Credit Agreement, First Amended 2016 Credit Agreement, Second Amended 2016 Credit Agreement, Third Amended 2016 Credit Agreement, Fourth Amended 2016 Credit Agreement and Fifth Amended 2016 Credit Agreement ("Sixth Amended 2016 Credit Agreement" and collectively, the "Amended 2016 Credit Agreement"). The Sixth Amended 2016 Credit Agreement, among other things, extended the maturity date for both the 2016 Term Loan Facility and 2016 Revolving Credit Facility from September 13, 2023 to December 31, 2024. The total 2016 Revolving Credit Facility commitment was reduced to an aggregate principal amount of $90.0 million, of which $80.0 million was available for Borrower to draw, with the remaining $10.0 million subject to written approval from the lenders, which, once obtained, was irrevocable. There was no change in the 2016 Term Loan Facility commitment; however, the Sixth Amended 2016 Credit Agreement required principal repayments approximating $5.0 million on a quarterly basis through September 30, 2024, with the remaining balance due upon maturity. There were $151.6 million of term loan borrowings outstanding on the sixth amendment effective date.

The Sixth Amended 2016 Credit Agreement also provided for temporary amendments to certain financial performance covenants during the Amended Limited Availability Period, which terminated on the date on which the Company’s TNLR for the two fiscal quarters most recently ended was each less than 4.00x and no default or event of default had occurred and was continuing. However, the Amended Limited Available Period could re-occur upon a default or event of default or if the TNLR for the immediately preceding fiscal quarter was equal to or greater than 4.00x.

The minimum consolidated EBITDA that the Company was required to maintain during the Amended Limited Availability Period was updated as set forth in the table below (in millions):

PeriodMinimum Consolidated EBITDA
Fiscal quarter ending July 1, 2023$50.0
Fiscal quarter ending September 30, 2023$60.0
For purposes of complying with the above minimum consolidated EBITDA covenant, the Company’s consolidated EBITDA for the (i) two fiscal quarter period ending July 1, 2023 was multiplied by 2 and (ii) three fiscal quarter period ending September 30, 2023 was multiplied by 4/3.

The minimum liquidity (in the form of undrawn availability under the 2016 Revolving Credit Facility and unrestricted cash and cash equivalents) that the Company was required to maintain at the end of each fiscal month during the Amended Limited Availability Period was amended as set forth in the table below (in millions):

PeriodMinimum Liquidity
Sixth amendment effective date through December 30, 2023$30.0

Additionally, the Units Covenant was amended for Units to be calculated at the end of each applicable fiscal month on a cumulative basis, with the minimum cumulative threshold that the Company was required to maintain during the Amended Limited Availability Period amended as set forth in the table below. The Units Covenant was triggered only if the Company’s liquidity for the most-recently ended fiscal month was less than $50.0 million during the Amended Limited Availability Period:
PeriodMinimum Units Manufactured
Period from October 2, 2022 and ending October 29, 2022450
Period from October 2, 2022 and ending November 26, 2022900
Period from October 2, 2022 and ending December 31, 20221,400
Period from October 2, 2022 and ending January 28, 20231,900
Period from October 2, 2022 and ending February 25, 20232,400
Period from October 2, 2022 and ending April 1, 20233,000

The Company was not required to comply with a maximum TNLR financial maintenance covenant for any fiscal quarters from the sixth amendment effective date through September 30, 2023, with the maximum threshold amended thereafter as follows:

Period  Maximum Total 
Net Leverage Ratio
Fiscal Quarter ending December 30, 2023 through the fiscal quarter ending March 30, 2024 4.00:1.00
Fiscal quarter ending June 29, 2024 and thereafter 3.50:1.00

The pricing grid in the Amended 2016 Credit Agreement, which was based on the TNLR, was applicable to both term loan and revolving borrowings and was determined in accordance with the amended pricing matrix set forth below:

LevelTotal Net Leverage RatioABR LoansSOFR Loans
ILess than 2.00x0.75%1.75%
IIGreater than or equal to 2.00x and less than 2.50x1.00%2.00%
IIIGreater than or equal to 2.50x and less than 3.00x1.25%2.25%
IVGreater than or equal to 3.00x and less than 3.25x1.50%2.50%
VGreater than or equal to 3.25x and less than 3.50x1.75%2.75%
VIGreater than or equal to 3.50x and less than 4.00x2.00%3.00%
VIIGreater than or equal to 4.00x and less than 4.50x2.75%3.75%
VIIIGreater than or equal to 4.50x and less than 5.00x3.75%4.75%
IXGreater than 5.00x4.75%5.75%

Further, the pricing margins for levels VII though IX above were each increased (x) by 0.25% if the aggregate revolving borrowings were equal to or greater than $50.0 million and less than or equal to $80.0 million and (y) by 0.50% if the aggregate revolving borrowings were greater than $80.0 million. On the sixth amendment effective date, the interest rate was set at SOFR plus 5.75% and was adjusted, as applicable, for the fiscal quarter ending December 31, 2022 and subsequently in accordance with the amended pricing grid set forth above.

Finally, the Company was required to deliver to the administrative agent, on a quarterly basis, a projected consolidated balance sheet and consolidated statements of projected operations and cash flows for the next four fiscal quarter period.

The Company incurred approximately $3.3 million in lender fees and other issuance costs relating to the sixth amendment. Of such total, approximately $1.2 million and $1.5 million was capitalized within other assets and long-term debt (as a contra-balance), respectively, on the Consolidated Balance Sheets and was being amortized as an adjustment to interest expense on a straight-line basis and utilizing the effective interest method, respectively, until maturity of the Amended 2016 Credit Agreement. The remaining approximate $0.5 million was recorded to loss on debt modification on the Consolidated Statements of Operations.

Fiscal 2024 Credit Agreement

On November 17, 2023 (the “Closing Date”), BBBC, as Borrower, executed a $250.0 million five-year credit agreement with Bank of Montreal, acting as administrative agent and an issuing bank; several joint lead arranger partners and issuing banks, including Bank of America; and a syndicate of other lenders (the "Credit Agreement").

The credit facilities provided for under the Credit Agreement consist of a term loan facility in an aggregate initial principal amount of $100.0 million (the “Term Loan Facility”) and a revolving credit facility with aggregate commitments of $150.0 million. The
revolving credit facility includes a $25.0 million letter of credit sub-facility and $5.0 million swingline sub-facility (the “Revolving Credit Facility,” and together with the Term Loan Facility, each a “Credit Facility” and collectively, the “Credit Facilities”).

A minimum of $100.0 million of additional term loans and/or revolving credit commitments may be incurred under the Credit Agreement, subject to certain limitations as set forth in the Credit Agreement, and which additional loans and/or commitments would require further commitments from existing lenders or from new lenders.

Borrower has the right to prepay the loans outstanding under the Credit Facilities without premium or penalty (subject to customary breakage costs, if applicable). Additionally, proceeds from asset sales, condemnation, casualty insurance and/or debt issuances (in certain circumstances) are required to be used to prepay borrowings outstanding under the Credit Facilities. Borrowings under the Term Loan Facility, which were made on the Closing Date, may not be reborrowed once they are repaid while borrowings under the Revolving Credit Facility may be repaid and reborrowed from time to time at our election.

The Term Loan Facility is subject to amortization of principal, payable in equal quarterly installments on the last day of each fiscal quarter, which commenced on March 30, 2024, with 5.0% of the $100.0 million aggregate principal amount of all initial term loans outstanding at the Closing Date payable each year prior to the maturity date of the Term Loan Facility. The remaining initial aggregate principal amount outstanding under the Term Loan Facility, as well as any outstanding borrowings under the Revolving Credit Facility, will be payable on the November 17, 2028 maturity date of the Credit Agreement.

The Credit Facilities are guaranteed by all of the Company’s wholly-owned domestic restricted subsidiaries (subject to customary exceptions) and are secured by a security agreement which pledges a lien on virtually all of the assets of Borrower, the Company and the Company’s other wholly-owned domestic restricted subsidiaries, other than any owned or leased real property and subject to customary exceptions.

The $100.0 million of Term Loan Facility proceeds and $36.2 million of Revolving Credit Facility proceeds that were borrowed on the Closing Date were used to pay (i) the $131.8 million of term loan indebtedness outstanding under the Amended 2016 Credit Agreement, (ii) interest and commitment fees accrued under the Amended 2016 Credit Agreement through the Closing Date and (iii) transaction costs associated with the consummation of the Credit Agreement.

Under the terms of the Credit Agreement, Borrower, the Company and the Company’s other wholly-owned domestic restricted subsidiaries are subject to customary affirmative and negative covenants and events of default for facilities of this type (with customary grace periods, as applicable, and lender remedies).

Borrowings under the Credit Facilities bear interest, at our option, at (i) ABR or (ii) SOFR plus 0.10%, plus an applicable margin depending on the TNLR (which is defined in the Credit Agreement as the ratio of consolidated net debt to consolidated EBITDA on a trailing four quarter basis) of the Company as follows:

Level
TNLR
ABR Loans
SOFR Loans
I
Less than 1.00x
0.75%1.75%
II
Greater than or equal to 1.00x and less than 1.50x
1.50%2.50%
III
Greater than or equal to 1.50x and less than 2.25x
2.00%3.00%
IV
Greater than or equal to 2.25x
2.25%3.25%

Pricing on the Closing Date was set at Level III until receipt of the financial information and related compliance certificate for the first fiscal quarter that ended after the Closing Date, with pricing as of September 28, 2024 set at Level I.

Borrower is also required to pay lenders an unused commitment fee of between 0.25% and 0.45% per annum on the undrawn commitments under the Revolving Credit Facility, depending on the TNLR, quarterly in arrears.

The Credit Agreement also includes a requirement that the Company comply with the following financial covenants on the last day of each fiscal quarter through maturity: (i) a pro forma TNLR of not greater than 3.00:1.00 and (ii) a pro forma fixed charge coverage ratio (as defined in the Credit Agreement) of not less than 1.20:1.00. The Company was in compliance with such covenants as of September 28, 2024.

The Company incurred approximately $3.1 million in lender fees and other issuance costs relating to the Credit Agreement. Of such total, approximately $1.9 million and $0.8 million was capitalized within other assets and long-term debt (as a contra-balance), respectively, on the Condensed Consolidated Balance Sheets and is being 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 approximate $0.4 million was recorded to loss on debt refinancing or modification on the Condensed Consolidated Statements of Operations.
In conjunction with executing the Credit Agreement, previously capitalized lender fees and other issuance costs relating to the Amended 2016 Credit Agreement and incurred in prior periods totaling $1.1 million were also expensed to loss on debt refinancing or modification on the Condensed Consolidated Statements of Operations.

Additional Disclosures

Debt consisted of the following at the dates indicated:
(in thousands)September 28, 2024September 30, 2023
Term loans, net of deferred financing costs of $1,256 and $1,456, respectively
$94,994 $130,344 
Less: Current portion of long-term debt5,000 19,800 
Long-term debt, net of current portion$89,994 $110,544 

Term loan borrowings are recognized on the 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 the unpaid principal balance to approximate 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 September 28, 2024 and September 30, 2023, $96.3 million and $131.8 million, respectively, were outstanding on the term loans.

At September 28, 2024 and September 30, 2023, the stated interest rates on the term loans were 6.9% and 10.0%, respectively. At September 28, 2024 and September 30, 2023, the weighted-average annual effective interest rates for the term loans were 8.2% and 10.9%, respectively, which included amortization of the deferred debt issuance costs.

There were no borrowings outstanding on the Revolving Credit Facility at September 28, 2024. Additionally, there were $6.7 million of Letters of Credit outstanding on September 28, 2024, providing the Company the ability to borrow $143.3 million on the revolving line of credit.

Interest expense on all indebtedness for fiscal 2024, fiscal 2023 and fiscal 2022 was $10.6 million, $18.0 million, and $14.7 million, respectively.

The schedule of remaining principal maturities for the term loans is as follows at September 28, 2024:
(in thousands)
Fiscal Year
Principal Payments
2025$5,000 
20265,000 
20275,000 
20285,000 
20295,000 
Thereafter71,250 
Total remaining principal payments$96,250 
v3.24.3
Income Taxes
12 Months Ended
Sep. 28, 2024
Income Tax Disclosure [Abstract]  
Income Taxes 9. Income Taxes
The components of income tax (expense) benefit were as follows for the fiscal years presented: 
(in thousands)202420232022
Current tax provision:
Federal$(30,188)$(645)$380 
State(4,447)(243)— 
Foreign(267)— — 
Total current tax (expense) benefit
$(34,902)$(888)$380 
Deferred tax provision:
Federal$2,046 $(6,230)$10,862 
State(372)(1,835)209 
Total deferred tax benefit (expense)
1,674 (8,065)11,071 
Income tax (expense) benefit
$(33,228)$(8,953)$11,451 

At September 28, 2024, the Company had $8.0 million (tax effected) in total state tax attributes, primarily comprised of $6.7 million (tax effected) in state tax credit carryforwards and $0.6 million (tax effected) in state net operating loss ("NOL") carryforwards. The Company maintains a partial valuation allowance on these state tax attributes. Specifically, the Company estimates that approximately $5.3 million (tax effected) of state tax credit carryforwards will expire unused between 2025 and 2032 and approximately $0.5 million (tax effected) of state NOL carryforwards will expire unused between 2028 and 2033.

At September 28, 2024, the Company had no federal NOL carryforwards.

The effective tax rates for fiscal 2024, fiscal 2023 and fiscal 2022 were 26.2%, 34.7% and 21.6%, respectively.

The effective tax rate for fiscal 2024 differed from the statutory federal income tax rate of 21.0%. The increase in the effective tax rate to 26.2% was primarily due to the impacts of state taxes and certain permanent items on the federal rate, which were partially offset by the impacts from federal and state tax credits (net of valuation allowances) and discrete period items.

The effective tax rate for fiscal 2023 differed from the statutory federal income tax rate of 21.0%. The increase in the effective tax rate to 34.7% was primarily due to the impacts of state taxes and certain permanent items on the federal rate.

The effective tax rate for fiscal 2022 differed from the statutory federal income tax rate of 21.0%. The increase in the effective tax rate to 21.6% was primarily due to the impacts of state taxes on the federal rate. This increase was partially offset by an increase in the valuation allowance.

A reconciliation between the reported income tax (expense) benefit and the amount computed by applying the statutory federal income tax rate is as follows: 
(in thousands)202420232022
Federal tax (expense) benefit at statutory rate
$(26,594)$(5,419)$11,141 
(Increase) reduction in income tax expense resulting from:
State taxes, net(4,808)(1,700)2,240 
Change in uncertain tax positions— 240 395 
Share-based compensation(675)(95)(513)
Permanent items(700)(1,582)(31)
Valuation allowance(17)(319)(2,050)
Tax credits273 330 285 
Return to accrual adjustments(212)
Investor tax on non-consolidated affiliate income(700)(404)231 
Other(11)(7)(35)
Income tax (expense) benefit
$(33,228)$(8,953)$11,451 

The guidance for accounting for uncertainty in income taxes requires that a determination be made regarding whether a tax position, based solely on its technical merits, is more likely than not to be sustained upon examination, which is the threshold required for
recognition of the tax position in the financial statements. The Company's liability arising from uncertain tax positions ("UTPs"), including accrued interest and penalties, is recorded in other liabilities in the Consolidated Balance Sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
(in thousands)202420232022
Balance, beginning of year$— $110 $370 
Additions for tax positions of prior years— — — 
Lapses of applicable statute of limitations— (110)(260)
Balance, end of year$— $— $110 

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no accrued interest and penalties at September 28, 2024 or September 30, 2023.

The Company is subject to taxation mostly in the U.S. and various state jurisdictions. At September 28, 2024, tax years prior to 2020 are generally no longer subject to examination by federal and most state tax authorities.
 
The following table sets forth the sources of and differences between the financial accounting and tax bases of the Company’s assets and liabilities which give rise to the net deferred tax liabilities at the dates indicated:
(in thousands)September 28, 2024September 30, 2023
Deferred tax liabilities
Property, plant and equipment$(9,894)$(10,880)
Other intangible assets(10,679)(11,167)
Investor tax on non-consolidated affiliate income(1,261)(866)
Other
(566)— 
Total deferred tax liabilities$(22,400)$(22,913)
Deferred tax assets
NOL carryforward$731 $1,168 
Accrued expenses8,017 5,586 
Compensation2,257 2,839 
Interest limitation carryforward— 5,235 
Inventories812 743 
Capitalized research & development
5,035 3,052 
Unearned income4,301 3,096 
Tax credits6,702 6,685 
Total deferred tax assets$27,855 $28,404 
Less: valuation allowance(5,839)(5,822)
Deferred tax assets less valuation allowance$22,016 $22,582 
Net deferred tax liabilities
$(384)$(331)
v3.24.3
Guarantees, Commitments and Contingencies
12 Months Ended
Sep. 28, 2024
Commitments and Contingencies Disclosure [Abstract]  
Guarantees, Commitments and Contingencies
10. Guarantees, Commitments and Contingencies

Litigation

At September 28, 2024, the Company had a number of product liability and other cases pending. Management believes that, considering the Company’s insurance coverage and its intention to vigorously defend its positions, the ultimate resolution of these matters will not have a material adverse impact on the Company’s financial statements.

Environmental

The Company is subject to a variety of environmental regulations relating to the use, storage, discharge and disposal of hazardous materials used in its manufacturing processes. Failure by the Company to comply with present and future regulations could subject it to future liabilities. In addition, such regulations could require the Company to acquire costly equipment or to incur other significant expenses to comply with environmental regulations. The Company is currently not involved in any material environmental
proceedings and therefore, management believes that the resolution of environmental matters will not have a material adverse effect on the Company’s financial statements. Our environmental liability, included in current accrued expenses and other long-term liabilities on the Consolidated Balance Sheets, was $0.5 million and $0.3 million at September 28, 2024 and September 30, 2023, respectively. Cash flows over the next five years are expected to be immaterial each year, with no material difference between total cash flows and our accrued balance.

Lease Commitments
We have operating leases for office and warehouse space and finance leases for equipment. Our leases have remaining lease terms ranging from 0.2 years to 5.7 years with the option to extend certain leases for up to 1 year.
The components of lease costs included on the Consolidated Statements of Operations are as follows:
(in thousands)Fiscal Years Ended
Lease costClassification20242023
Operating leasesSelling, general and administrative expenses$2,031 $2,188 
Finance leases
Amortization of lease assetsCost of goods sold702 702 
Interest on lease liabilitiesInterest expense40 60 
Short-term leases (1)Cost of goods sold or selling, general and administrative expenses1,720 1,993 
Total lease cost$4,493 $4,943 
(1) Short-term lease cost includes both leases and rentals with initial terms of one year or less. Classification depends on the purpose of the underlying lease.

The following table summarizes the lease amounts included on the Consolidated Balance Sheets as follows:
(in thousands)Balance Sheet LocationSeptember 28, 2024September 30, 2023
Assets
Operating Property, plant and equipment$4,353 $4,298 
Finance (1)Finance lease right-of-use332 1,034 
Total lease assets$4,685 $5,332 
Liabilities
Current
OperatingOther current liabilities$1,873 $1,593 
FinanceFinance lease obligations975 583 
Long-term
OperatingOther liabilities2,971 3,608 
FinanceFinance lease obligations987 
Total lease liabilities$5,825 $6,771 
(1) Net of accumulated amortization of $3.2 million and $2.5 million, respectively.
The financing and operating leases recorded do not assume renewal based on our analysis of those leases and their contractual terms.
Lease liability maturities are presented in the following table:
(in thousands)September 28, 2024
Fiscal Years EndedOperatingFinanceTotal
2025$2,149 $994 $3,143 
20261,852 — 1,852 
2027866 — 866 
2028301 — 301 
2029184 — 184 
Thereafter65 — 65 
Total future minimum lease payments5,417 994 6,411 
Less: imputed interest573 13 586 
Total lease liabilities$4,844 $981 $5,825 

Lease terms and discount rates are presented in the following table:
September 28, 2024
OperatingFinance
Weighted average remaining lease term2.80.5
Weighted average discount rate6.0 %3.2 %

Supplemental cash flow information is presented in the following table:
Fiscal Years Ended
(in thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows - operating leases$2,442 $2,688 
Operating cash flows - finance leases40 60 
Financing cash flows - finance leases589 570 
Right-of-use assets exchanged for lease liabilities
Operating leases$1,682 $626 

Purchase Commitments

In the ordinary course of business, the Company enters into short-term contractual purchase orders for manufacturing inventory and capital assets. The amount of these commitments is expected to be as follows:
(in thousands)
Fiscal Years EndedAmount
2025$134,121 
20261,953 
Total purchase commitments$136,074 
v3.24.3
Segment Information
12 Months Ended
Sep. 28, 2024
Segment Reporting [Abstract]  
Segment Information
11. Segment Information

We manage our business in two operating segments: (i) the Bus segment, which includes the manufacture and assembly of buses to be sold to a variety of customers across the U.S., Canada, and in certain limited 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 and certain large fleet customers. Management evaluates the segments based primarily upon revenues and gross profit, which are reflected in the tables below for the periods presented:
Net sales
(in thousands)202420232022
Bus (1)$1,242,885 $1,034,625 $723,505 
Parts (1)104,269 98,168 77,132 
Segment net sales$1,347,154 $1,132,793 $800,637 
(1) Parts segment revenue includes $9.3 million, $5.6 million, and $3.9 million for fiscal 2024, fiscal 2023 and fiscal 2022, respectively, related to inter-segment sales of parts that was eliminated by the Bus segment upon consolidation.
 
Gross profit
(in thousands)202420232022
Bus$203,791 $91,003 $5,065 
Parts52,365 47,847 31,481 
Segment gross profit$256,156 $138,850 $36,546 

The following table is a reconciliation of segment gross profit to consolidated income (loss) before income taxes for the fiscal years presented:
(in thousands)202420232022
Segment gross profit$256,156 $138,850 $36,546 
Adjustments:
Selling, general and administrative expenses(116,825)(87,193)(77,246)
Interest expense(10,579)(18,012)(14,675)
Interest income4,136 1,004 
Other (expense) income, net
(4,394)(8,307)2,947 
Loss on debt refinancing or modification
(1,558)(537)(632)
Income (loss) before income taxes
$126,936 $25,805 $(53,051)

Sales are attributable to geographic areas based on customer location and were as follows for the fiscal years presented:
(in thousands)202420232022
United States$1,199,527 $1,048,279 726,227 
Canada146,609 78,907 69,683 
Rest of world1,018 5,607 4,727 
Total net sales$1,347,154 $1,132,793 800,637 
v3.24.3
Revenue
12 Months Ended
Sep. 28, 2024
Revenue from Contract with Customer [Abstract]  
Revenue
12. Revenue

The following table disaggregates revenue by product category for the periods presented:
Fiscal Years Ended
(in thousands)202420232022
Diesel buses$461,222 $341,969 $276,395 
Alternative powered buses (1)726,083 648,900 407,599 
Other (2)58,074 46,246 41,858 
Parts101,775 95,678 74,785 
Net sales$1,347,154 $1,132,793 $800,637 
(1) Includes buses sold with any power source other than diesel (e.g., gasoline, propane, compressed natural gas ("CNG"), or electric).
(2) Includes shipping and handling revenue, extended warranty income, surcharges, chassis, and bus shell sales.
v3.24.3
Stockholders' Deficit
12 Months Ended
Sep. 28, 2024
Equity [Abstract]  
Stockholders' Deficit
13. Stockholders’ (Deficit) Equity

Sale of Common Stock

On December 15, 2021, the Company issued and sold through a private placement an aggregate 4,687,500 shares of its common stock at $16.00 per share (“Private Placement”) to Coliseum Capital Partners, L.P. and Blackwell Partners LLC – Series A (collectively, “Coliseum”), with net proceeds of $74.8 million. Subsequent to the sale, Coliseum owned an approximate 15% equity interest in the Company. During the second half of fiscal 2023, Coliseum sold all of its shares of common stock purchased through the Private Placement (see Note 19, Stockholder Transaction Costs, for further information).

Share Repurchase Program and Common Stock Retirement

On January 31, 2024, the Board of Directors of the Company authorized and approved a share repurchase program for up to $60 million of outstanding shares of the Company’s common stock over a period of 24 months, expiring January 31, 2026. Under the share repurchase program, the Company may repurchase shares through open market purchases, privately negotiated transactions, accelerated share repurchase transactions, block purchases or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

In the latter part of August and first half of September 2024, the Company repurchased 201,818 shares of its common stock for $9.9 million, pursuant to the share repurchase plan. No such repurchases were made in fiscal 2023. The total remaining authorization for future common stock repurchases under the Company's share repurchase program was $50.1 million as of September 28, 2024.

In mid-September 2024, the Company constructively retired the shares of common stock it had recently repurchased by recording the $9.9 million paid in excess of the $0.0001 par value of each share as a reduction in retained earnings. Later that same month, the Company retired the shares of common stock that had previously been reflected as treasury stock within its historical consolidated financial statements by recording the amount paid in excess of the $0.0001 par value of each share as a $39.9 million reduction in retained earnings, which reduced the value in this account to zero, with the remaining $10.4 million recorded as a reduction in additional paid-in capital.
19. Stockholder Transaction Costs

On June 7, 2023, the Company entered into an underwriting agreement with BofA Securities, Inc. and Barclays Capital Inc., as representatives of the several underwriters and American Securities LLC and Coliseum ("2023 Selling Stockholders"), pursuant to which the 2023 Selling Stockholders agreed to sell 5,175,000 shares of common stock, including the sale of 675,000 shares pursuant to the underwriters’ exercise of their over-allotment option, at a purchase price of $20.00 per share. On September 11, 2023, the Company entered into another underwriting agreement with Barclays Capital, Inc. and the 2023 Selling Stockholders, pursuant to which the 2023 Selling Stockholders agreed to sell 2,500,000 shares of common stock, at purchase price of $21.00 per share (collectively, the "2023 Offerings").

The 2023 Offerings were conducted pursuant to prospectus supplements, dated June 7, 2023 and September 11, 2023, respectively, to the prospectus, dated December 22, 2021 included in the Company’s registration statement on Form S-3 (File No. 333-261858) that
was initially filed with the SEC on December 23, 2021 (the "December 2021 Prospectus"). The 2023 Offerings closed on June 12, 2023 and September 14, 2023, respectively.
v3.24.3
Earnings Per Share
12 Months Ended
Sep. 28, 2024
Earnings Per Share [Abstract]  
Earnings Per Share
14. Earnings (Loss) Per Share

The following table presents the basic and diluted earnings per share computation for the fiscal years presented:
(in thousands except share data)202420232022
Numerator:
Net income (loss)
$105,547 $23,812 $(45,759)
Basic earnings (loss) per share:
Weighted average common shares outstanding32,270,711 32,071,940 31,020,399 
Basic earnings (loss) per share
$3.27 $0.74 $(1.48)
Diluted earnings (loss) per share (1):
Weighted average common shares outstanding32,270,711 32,071,940 31,020,399 
Weighted average dilutive securities, restricted stock407,773 166,720 — 
Weighted average dilutive securities, stock options283,061 19,992 — 
Weighted average dilutive securities, warrants387,676 — — 
Weighted average shares and dilutive potential common shares33,349,221 32,258,652 31,020,399 
Diluted earnings (loss) per share
$3.16 $0.74 $(1.48)
(1) There were no potentially dilutive securities for fiscal 2024 while 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 fiscal 2023 and fiscal 2022, respectively, as their effect would have been anti-dilutive.
v3.24.3
Share-Based Compensation
12 Months Ended
Sep. 28, 2024
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation
15. Share-Based Compensation
 
In fiscal 2015, we adopted the Omnibus Equity Incentive Plan ("Plan") and in fiscal 2020, amended and restated it. The Plan is administered by the Compensation Committee of our Board of Directors and the Committee may grant awards for the issuance of up to an aggregate of 5,200,000 shares of common stock in the form of non-qualified stock options, incentive stock options, stock appreciation rights (collectively, “SARs,” and each individually, a “SAR”), restricted stock, restricted stock units, performance shares, performance units, incentive bonus awards, other cash-based awards and other stock-based awards. The exercise price of a share subject to a stock option may not be less than 100% of the fair market value of a share of the Company's common stock with respect to the grant date of such stock option. No portion of the options vest and become exercisable after the date on which the optionee’s service with the Company and its subsidiaries terminates. The vesting of all unvested shares of common stock subject to an option will automatically be accelerated in connection with a “Change in Control,” as defined in the Plan.

New shares of the Company's common stock are issued upon stock option exercises, or at the time of vesting for restricted stock. We have granted performance awards as part of our overall compensation plans. The vesting of these awards is primarily based upon the attainment of certain performance metrics established under our annual Management Incentive Plan ("MIP"), with the Compensation Committee of the Board of Directors maintaining final discretion over vesting amounts.

Stock-based payments to employees, including grants of stock options, restricted stock and restricted stock units ("RSU"), are recognized in the financial statements based on their fair value. The fair value of each stock option award on the grant date is estimated using the Black-Scholes option-pricing model with the following assumptions: expected dividend yield, expected stock price volatility, weighted-average risk-free interest rate and weighted average expected term of the options. Because we do not have sufficient history with respect to stock option activity and post-vesting cancellations, the expected term assumption is based on the simplified method under U.S. GAAP, which is based on the vesting period and contractual term for each vesting tranche of awards. The mid-point between the vesting date and the expiration date is used as the expected term under this method. The risk-free interest rate used in the Black-Scholes model is based on the implied yield curve available on U.S. Treasury zero-coupon issues at the date of grant with a remaining term equal to the Company’s expected term assumption. The Company has never declared or paid a cash dividend on its common stock. Restricted stock and RSUs are valued based on the intrinsic value of the difference between the exercise price, if any, of the award and the fair market value of our common stock on the grant date.

Beginning in fiscal 2024, the Compensation Committee decided that all new annual stock awards issued in accordance with the terms of the Plan would be RSUs.

We expense any award with graded-vesting features using a straight-line attribution method and account for forfeitures in recording share-based compensation expense as they occur.

RSU Awards

The following table summarizes the Company's RSU activity for the fiscal year presented:
2024
RSU ActivityNumber of SharesWeighted-Average Grant Date Fair Value
Balance, beginning of year584,063 $22.99 
Granted209,708 21.35 
Vested(93,766)15.96 
Forfeited(64,357)23.19 
Balance, end of year635,648 23.07 

The weighted-average grant date fair value of RSU awards granted in fiscal 2023 and fiscal 2022 was $23.41 and $17.35, respectively.

Compensation expense for RSU awards, recognized in selling, general and administrative expenses on the Consolidated Statements of Operations, was $7.2 million, $3.2 million, and $2.6 million for fiscal 2024, fiscal 2023, and fiscal 2022, respectively, with associated tax benefits of $1.8 million, $0.8 million, and $0.7 million, respectively. At September 28, 2024, unrecognized compensation cost related to RSU awards totaled $6.1 million and is expected to be recognized over a weighted-average period of 0.9 years.
Stock Option Awards

The following table summarizes the Company's stock option activity for the fiscal year presented:
2024
Number of OptionsWeighted Average Exercise Price per Share ($)
Outstanding options, beginning of year640,353 $16.38 
Granted63,300 14.45 
Exercised (1)(248,015)16.27 
Expired(4,442)15.62 
Forfeited(15,769)13.62 
Outstanding options, end of year (2)435,427 $16.27 
Fully vested and exercisable options, end of year (3)278,678 $17.58 
(1) Stock options exercised during the fiscal year had an aggregate intrinsic value totaling $6.2 million.
(2) Stock options outstanding at the end of the fiscal year had $14.0 million intrinsic value.
(3) Fully vested and exercisable options at the end of the fiscal year had $8.6 million intrinsic value.

The total aggregate intrinsic value of stock options exercised during fiscal 2023 and fiscal 2022 was $0.3 million and less than $0.1 million, respectively.

Compensation expense for stock option awards, recognized in selling, general and administrative expenses on the Consolidated Statements of Operations, was $1.2 million, $0.8 million, and $0.9 million for fiscal 2024, fiscal 2023, and fiscal 2022, respectively, with associated tax benefits of $0.3 million, $0.2 million, and $0.2 million, respectively. At September 28, 2024, unrecognized compensation cost related to stock option awards totaled $0.5 million and is expected to be recognized over a weighted-average period of 0.7 years.

The fair value of each option award at grant date was estimated using the Black-Scholes option-pricing model with the following assumptions made and resulting grant-date fair values during the fiscal years presented:
202420232022
Expected volatility62 %51 %46 %
Expected dividend yield%%%
Risk-free interest rate4.24 %3.78 %1.30 %
Expected term (in years)
4.5 - 5.0
4.5 - 6.0
4.5 - 6.0
Weighted-average grant-date fair value$16.30 $6.17 $7.04 
v3.24.3
Benefit Plans
12 Months Ended
Sep. 28, 2024
Retirement Benefits [Abstract]  
Benefit Plans
16. Benefit Plans
Defined Benefit Pension Plan

The Company has a defined benefit pension plan (“Defined Benefit Plan”) covering U.S. hourly and salaried personnel. On May 13, 2002, the Defined Benefit Plan was amended to freeze new participation as of May 15, 2002, and therefore, any new employees who started on or after May 15, 2002 were not permitted to participate in the Defined Benefit Plan. Effective January 1, 2006, the benefit plan was frozen to all participants. No accrual of future benefits is calculated beyond this date.

The Company made no contributions to the Defined Benefit Plan during fiscal 2024 and made $1.1 million of contributions in fiscal 2023. For fiscal 2024 and fiscal 2023, benefits paid were $8.8 million and $13.2 million, respectively. The fiscal 2023 benefit payments included $5.2 million paid to certain participants who met certain specified criteria (including that they were former employees of the Company who earned enough service to qualify for pension benefits under the terms of the Defined Benefit Plan while they were employed but were not otherwise receiving retirement payments on the date that the benefits were paid) and elected to receive a single lump-sum payment in lieu of future retirement payments, with no similar payments made in fiscal 2024. The projected benefit obligation (“PBO”) for the Defined Benefit Plan was $113.6 million and $108.4 million at September 28, 2024 and September 30, 2023, respectively.
The reconciliation of the beginning and ending balances of the PBO for the Defined Benefit Plan for the fiscal years indicated is presented in the following table:
Benefit Obligation
(in thousands)20242023
Projected benefit obligation balance, beginning of year$108,393 $122,571 
Interest cost5,936 6,035 
Actuarial loss (gain) (1)
8,091 (7,038)
Benefits paid(8,786)(13,175)
Projected benefit obligations balance, end of year$113,634 $108,393 
(1) Includes assumption changes, as applicable, resulting from (i) changes in the utilized discount rate to value the future obligations, and (ii) updates to the mortality table projections used in the calculation of the benefit obligations.

Plan Assets: The summary and reconciliation of the beginning and ending balances of the fair value of the Defined Benefit Plan assets are as follows:
Plan Assets
(in thousands)20242023
Fair value of plan assets, beginning of year$105,989 $106,547 
Actual return on plan assets21,080 11,504 
Employer contribution— 1,113 
Benefits paid(8,786)(13,175)
Fair value of plan assets, end of year$118,283 $105,989 

Funded Status: The following table reconciles the benefit obligations, plan assets, funded status and net asset (liability) information of the Defined Benefit Plan at the dates indicated. The net pension asset or liability is reflected in long-term assets or liabilities, respectively, on the Consolidated Balance Sheets.
Funded Status
(in thousands)September 28, 2024September 30, 2023
Benefit obligation$113,634 $108,393 
Fair value of plan assets118,283 105,989 
Funded status4,649 (2,404)
Net pension asset (liability) recognized
$4,649 $(2,404)
Fair Value of Plan Assets: The Company determines the fair value of its financial instruments in accordance with the Fair Value Measurements and Disclosures Topic of the ASC. Fair value represents the price to hypothetically sell an asset or transfer a liability in an orderly manner in the principal market for that asset or liability. This topic provides a hierarchy that gives highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities. This topic requires that financial assets and liabilities are classified into one of the following three categories: 
Level 1  Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2  Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability
Level 3  Unobservable inputs for the asset or liability

The Company evaluates fair value measurement inputs on an ongoing basis in order to determine if there is a change of sufficient significance to warrant a transfer between levels. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company's valuation process.

The Defined Benefit Plan assets are comprised of various investment funds, which are valued based upon their quoted market prices. The invested pension plan assets of the Defined Benefit Plan are all Level 2 assets under the provisions of ASC 820, Fair Value Measurements (“ASC 820”). During fiscal 2024 and fiscal 2023, there were no transfers between levels. There are no sources of significant concentration risk in the invested assets at September 30, 2024.
The following table sets forth, by level within the fair value hierarchy, a summary of the Defined Benefit Plan’s investments measured at fair value:
(in thousands)Level 1Level 2Level 3Total
September 28, 2024
Assets:
Equity securities$— $77,817 $— $77,817 
Debt securities— 40,466 — 40,466 
Total assets at fair value$— $118,283 $— $118,283 
September 30, 2023
Assets:
Equity securities$— $60,055 $— $60,055 
Debt securities— 45,934 — 45,934 
Total assets at fair value$— $105,989 $— $105,989 

The following table represents net periodic benefit expense (income) and changes in plan assets and benefit obligations recognized in other comprehensive income, before tax effect, for the fiscal years presented:
(in thousands)202420232022
Interest cost$5,936 $6,035 $4,368 
Expected return on plan assets(6,481)(6,518)(8,491)
Amortization of net loss687 1,195 1,163 
Net periodic benefit expense (income)
$142 $712 $(2,960)
Net gain
$(6,507)$(12,024)$(2,605)
Amortization of net loss(687)(1,195)(1,163)
Total recognized in other comprehensive income
$(7,194)$(13,219)$(3,768)
Total recognized in net periodic pension benefit expense (income) and other comprehensive income
$(7,052)$(12,507)$(6,728)

The estimated net loss for the Defined Benefit Plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is $0.3 million. The unrecognized gain or loss is amortized as follows: the total unrecognized gain or loss, less the larger of 10% of the liability or 10% of the assets, is divided by the average future working lifetime of active plan participants.

The following actuarial assumptions were used to determine the benefit obligations at the dates indicated:
Weighted-average assumptions used to determine benefit obligations:September 28, 2024September 30, 2023
Discount rate4.80 %5.70 %
Rate of compensation increaseN/AN/A
Weighted-average assumptions used to determine net periodic benefit cost:September 28, 2024September 30, 2023
Discount rate5.70 %5.10 %
Expected long-term return on plan assets6.37 %6.37 %
Rate of compensation increaseN/AN/A

The benchmark for the discount rates is an estimate of the single equivalent discount rate determined by matching the Defined Benefit Plan’s future expected cash flows to spot rates from a yield curve comprised of high-quality corporate bond rates of various durations.

The Defined Benefit Plan asset allocations at the dates indicated are as follows: 
September 28, 2024September 30, 2023
Equity securities66 %57 %
Debt securities34 %43 %
Total securities100 %100 %
There was no Company common stock included in equity securities. Assets of the Defined Benefit Plan are invested primarily in funds that further invest in equity or debt securities. Assets are valued using quoted prices in active markets.

The expected long-term rate of return on plan assets reflects the average rate of earnings expected on the funds invested, or to be invested, to provide for the benefits included in the PBO. In estimating that rate, appropriate consideration is given to the returns being earned by the plan assets in the fund and rates of return expected to be available for reinvestment and a building block method. The expected rate of return on each asset class is broken down into three components: (1) inflation, (2) the real risk-free rate of return (i.e., the long-term estimate of future returns on default free U.S. government securities), and (3) the risk premium for each asset class (i.e., the expected return in excess of the risk-free rate).

The investment strategy for pension plan assets is to limit risk through asset allocation, diversification, selection and timing. Assets are managed on a total return basis, with dividends and interest reinvested in the account.

The Company expects to make $0.8 million of contributions to its Defined Benefit Plan in fiscal 2025 in accordance with required IRS minimums. The following benefit payments are expected to be paid out of the Company's pension assets to the plan participants in the fiscal years indicated:
(in thousands)Expected Payments
2025$8,676 
20268,701 
20278,682 
20288,624 
20298,547 
2030 - 203440,614 
Total expected future benefit payments$83,844 

Defined Contribution Plan

The Company offers a defined contribution 401(k) plan covering substantially all U.S. employees and a defined contribution plan for Canadian employees. During fiscal 2024, fiscal 2023 and fiscal 2022, the Company offered a 50% match on the first 6% of the employee’s contributions. However, due to the impacts of supply chain constraints on the Company's operations and cash flows, the Company temporarily paused this match from August 2022 through December 2022. The plans also provide for an additional discretionary match depending on Company performance. Compensation expense related to defined contribution plans totaled $2.3 million, $1.3 million and $1.6 million for fiscal 2024, fiscal 2023, and fiscal 2022, respectively.

Health Benefits

The Company provides and is predominantly self-insured for medical, dental, and accident and sickness benefits. A liability related to this obligation is recorded on the Company’s Consolidated Balance Sheets as accrued expenses. Total expense related to this plan recorded for fiscal 2024, fiscal 2023, and fiscal 2022, was $13.7 million, $15.3 million, and $13.6 million, respectively.

Employee Compensation Plans

The MIP compensates certain salaried employees and is derived based upon the "Adjusted EBITDA" (earnings before interest, taxes, depreciation, and amortization, as adjusted) and "Free Cash Flow" metrics, as and when applicable. There was $17.4 million in MIP bonus liabilities included in accrued expenses on the Consolidated Balance Sheets at September 28, 2024 and $8.3 million at September 30, 2023.
v3.24.3
Equity Investment in Affiliate
12 Months Ended
Sep. 28, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Equity Investment in Affiliate
17. Equity Investment in Affiliate(s)

Micro Bird Holdings, Inc.

On October 14, 2009, Blue Bird and Girardin MiniBus JV Inc. entered into a joint venture, Micro Bird Holdings, Inc. (“Micro Bird”), to combine the complementary expertise of the two separate manufacturers. Blue Bird Micro Bird by Girardin Type A buses are produced in Drummondville, Quebec by Micro Bird.

The Company holds a 50% equity interest in Micro Bird, utilizing the equity method of accounting as the Company does not have control to direct the activities that most significantly impact Micro Bird’s financial performance based on the shared powers of the
venture partners. The carrying amount of the equity method investment is adjusted for the Company’s proportionate share of net earnings or losses and any dividends received. At September 28, 2024 and September 30, 2023, the carrying value of the Company's investment in Micro Bird was $24.4 million and $17.6 million, respectively. During fiscal 2024, Micro Bird paid each venture partner $5.3 million in dividends. No dividends were paid by Micro Bird in fiscal 2023.

In recognizing the Company’s 50% portion of Micro Bird net income or loss, the Company recorded $12.1 million, $7.0 million, and $(4.2) million in equity in net income (loss) of non-consolidated affiliate(s) for fiscal 2024, fiscal 2023, and fiscal 2022, respectively.

Micro Bird's summarized balance sheet information at its September 30 year end is as follows (denominated in U.S. Dollars):
 Balance Sheet
(in thousands)20242023
Current assets$100,974 $72,232 
Non-current assets25,097 21,220 
Total assets$126,071 $93,452 
Current liabilities86,788 64,230 
Non-current liabilities1,201 2,359 
Total liabilities$87,989 $66,589 
Net assets$38,082 $26,863 

Micro Bird's summarized financial results for its three fiscal years ended September 30 are as follows (denominated in U.S. Dollars):
 Income Statement
(in thousands)202420232022
Revenues$280,943 $203,086 $128,343 
Gross profit54,599 35,453 2,071 
Operating income (loss)
32,075 18,310 (10,453)
Net income (loss)
21,726 13,244 (8,924)
v3.24.3
Accumulated Other Comprehensive Loss
12 Months Ended
Sep. 28, 2024
Equity [Abstract]  
Accumulated Other Comprehensive Loss
18. Accumulated Other Comprehensive Loss

The following table provides information on changes in accumulated other comprehensive loss (“AOCL”) for the periods presented:
(in thousands)Defined Benefit Pension PlanTotal AOCL
Balance, October 2, 2021$(44,794)$(44,794)
Other comprehensive loss, gross2,605 2,605 
Amounts reclassified and included in earnings1,163 1,163 
Total before taxes3,768 3,768 
Income taxes(904)(904)
Balance, October 1, 2022$(41,930)$(41,930)
Other comprehensive income, gross12,024 12,024 
Amounts reclassified and included in earnings1,195 1,195 
Total before taxes13,219 13,219 
Income taxes(3,173)(3,173)
Balance, September 30, 2023$(31,884)$(31,884)
Other comprehensive income, gross6,507 6,507 
Amounts reclassified and included in earnings687 687 
Total before taxes7,194 7,194 
Income taxes(1,726)(1,726)
Balance, September 28, 2024$(26,416)$(26,416)
v3.24.3
Subsequent Events
12 Months Ended
Sep. 28, 2024
Subsequent Events [Abstract]  
Subsequent Events 20. Subsequent Events
v3.24.3
Schedule II - Valuation and Qualifying Accounts
12 Months Ended
Sep. 28, 2024
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts
SCHEDULE II- VALUATION AND QUALIFYING ACCOUNTS
(in thousands)Allowance for Doubtful Accounts
Fiscal Year EndedBeginning BalanceCharges to Expense/(Income)Doubtful Accounts Written Off, NetEnding Balance
October 1, 2022$100 $— $— $100 
September 30, 2023100 — — 100 
September 28, 2024100 — — 100 
(in thousands)Deferred Tax Valuation Allowance
Fiscal Year EndedBeginning BalanceCharges to Expense/(Income)Charges utilized/Write offsEnding Balance
October 1, 2022$3,453 $2,050 $— $5,503 
September 30, 20235,503 319 — 5,822 
September 28, 20245,822 17 — 5,839 
v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Pay vs Performance Disclosure      
Net income (loss) $ 105,547 $ 23,812 $ (45,759)
v3.24.3
Insider Trading Arrangements
3 Months Ended 12 Months Ended
Sep. 28, 2024
shares
Sep. 28, 2024
shares
Trading Arrangements, by Individual    
Non-Rule 10b5-1 Arrangement Adopted   false
Rule 10b5-1 Arrangement Terminated   false
Non-Rule 10b5-1 Arrangement Terminated   false
Philip Horlock [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On September 13, 2024, Philip Horlock, the Company's President and Chief Executive Officer and member of the Board of Directors, entered into a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, providing for the sale of up to 100,000 shares of the Company's Common Stock. Pursuant to this plan, Mr. Horlock may sell shares beginning December 16, 2024 and ending September 13, 2025.
Name Philip Horlock  
Title President and Chief Executive Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date September 13, 2024  
Arrangement Duration   271 days
Aggregate Available 100,000 100,000
Razvan Radulescu [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
During the fourth quarter of fiscal 2024, the previously disclosed Rule 10b5-1 trading plan for Razvan Radulescu, the Company's Chief Financial Officer, expired in accordance with its terms as all shares covered under such plan have been sold. On August 12, 2024, Mr. Radulescu entered into a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, providing for the sale of up to 46,171 shares of the Company's Common Stock. Pursuant to this plan, Mr. Radulescu may sell shares beginning December 17, 2024 and ending August 30, 2025.
Name Razvan Radulescu  
Title Chief Financial Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date August 12, 2024  
Arrangement Duration   256 days
Aggregate Available 46,171 46,171
v3.24.3
Summary of Significant Accounting Policies and Recently Issued Accounting Standards (Policies)
12 Months Ended
Sep. 28, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and accounts have been eliminated in consolidation.

The Company’s fiscal year ends on the Saturday closest to September 30 with its quarters consisting of thirteen weeks in most years. The fiscal years ended September 28, 2024, September 30, 2023 and October 1, 2022 are referred to herein as “fiscal 2024,” “fiscal 2023” and “fiscal 2022,” respectively. There were 52 weeks in fiscal 2024, fiscal 2023 and fiscal 2022.
Use of Estimates and Assumptions
Use of Estimates and Assumptions
The preparation of financial statements in accordance with accounting principles generally accepted in the U.S. (“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 intangible assets, the accounting for self-insurance reserves, warranty reserves, pension obligations, income taxes, environmental liabilities and contingencies. Future events, including continued supply chain constraints and their 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 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.
Cash and Cash Equivalents
Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company deposits its cash and cash equivalents, which are or may become in excess of federally insured limits, with many of the same high credit-quality financial institutions with which it has outstanding loans under the Credit Agreement (defined below) and evaluates and manages the risk of credit loss on a net basis. To date, the Company has not experienced any losses related to its cash and cash equivalents balances.
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts

Accounts receivable consist of amounts owed to the Company by customers. The Company monitors collections and payments from customers, and generally does not require collateral. Accounts receivable are generally due within 30 to 90 days. The Company provides for the possible inability to collect accounts receivable by recording an allowance for doubtful accounts. The Company reserves for an account when it is considered potentially uncollectible. The Company estimates its allowance for doubtful accounts based on historical experience, aging of accounts receivable and information regarding the creditworthiness of its customers. To date, losses have been within the range of management’s expectations. The Company writes off accounts receivable if it determines that the account is uncollectible.
Revenue Recognition
Revenue Recognition

The Company records revenue when the following five steps have been completed:

1.Identification of the contract(s) with a customer;
2.Identification of the performance obligation(s) in the contract;
3.Determination of the transaction price;
4.Allocation of the transaction price to the performance obligation(s) in the contract; and
5.Recognition of revenue, when, or as, we satisfy performance obligations.

The Company records revenue when performance obligations are satisfied by transferring control of a promised good or service to the customer. The Company evaluates the transfer of control primarily from the customer’s perspective where the customer has the ability to direct the use of, and obtain substantially all of the remaining benefits from, that good or service.

Our product revenue includes sales of buses and bus parts, each of which are generally recognized as revenue at a point in time, once all conditions for revenue recognition have been met, as they represent our performance obligations in a sale. For buses, control is generally transferred and the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the product when the product is delivered or when the product has been completed, is ready for delivery, has been paid for, its title has transferred and it is awaiting pickup by the customer. For certain bus sale transactions, we may provide incentives including payment
of a limited amount of future interest charges our customers may incur related to their purchase and financing of the bus with third party financing companies. We reduce revenue at the recording date by the full amount of potential future interest we may be obligated to pay, which is an application of the "most likely amount" method. For parts sales, control is generally transferred when the customer has the ability to direct the use of and obtain substantially all of the remaining benefits of the products, which generally coincides with the point in time when the customer has assumed risk of loss and title has passed for the goods sold.

The Company sells extended warranties related to its products. Revenue related to these contracts is recognized based on the stand-alone selling price of the arrangement, on a straight-line basis over the contract period, and costs thereunder are expensed as incurred.
The Company includes shipping and handling revenues, which are costs billed to customers, in net sales on the Consolidated Statements of Operations. Shipping and handling costs incurred are included in cost of goods sold.
Self-Insurance
Self-Insurance
The Company is self-insured for the majority of its workers’ compensation and medical claims. The expected ultimate cost for claims incurred as of the balance sheet date is not discounted and is recognized as a liability. Self-insurance losses for claims filed and claims incurred but not reported are accrued based upon estimates of the aggregate liability for uninsured claims, using loss development factors and actuarial assumptions followed in the insurance industry and historical loss development experience.
Financial Instruments
Financial Instruments
The Company’s financial instruments consist primarily of cash and cash equivalents, trade receivables, accounts payable, revolving credit facility and long-term debt. The carrying amounts of cash and cash equivalents, trade receivables and accounts payable approximate their fair values because of the short-term maturity and highly liquid nature of these instruments. The carrying value of the Company’s revolving credit facility and long-term debt approximates fair value due to the variable rates of interest, which reset frequently, relating to these debt instruments.
Derivative Instruments
Derivative Instruments

In limited circumstances, we may utilize derivative instruments to manage certain exposures to changes in foreign currency exchange rates or interest rates relating to variable rate debt. The fair values of all derivative instruments are recognized as assets or liabilities at the balance sheet date. Changes in the fair value of these derivative instruments are recognized in our operating results or included in other comprehensive income, depending on whether the derivative instrument qualifies, and is appropriately designated, for hedge accounting treatment and if so, whether it represents a fair value or cash flow hedge. Gains and losses on derivative instruments are recognized in the operating results line item that reflects the underlying exposure that was mitigated either via a formal hedge accounting relationship or economically.
Inventories
Inventories

The Company values inventories at the lower of cost or net realizable value. The Company uses a standard costing methodology, which approximates cost on a first-in, first-out (“FIFO”) basis. The Company reviews the standard costs of raw materials, work-in-process and finished goods inventory on a periodic basis to ensure that its inventories approximate current actual costs. Manufacturing cost includes raw materials, direct labor and manufacturing overhead. Obsolete inventory amounts are based on historical usage and assumptions about future demand.
Property, Plant and Equipment
Property, Plant and Equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization is calculated on a straight-line basis using the following periods, which represent the estimated useful lives of the assets:
Years
Buildings15 - 33
Machinery and equipment5 - 10
Office furniture, equipment and other3 - 10
Computer equipment and software3 - 7

Costs, including capitalized interest and certain design, construction and installation costs related to assets that are under construction and are in the process of being readied for their intended use, are recorded as construction in progress and are not depreciated until such time as the subject asset is placed in service. Repairs and maintenance that do not extend the useful life of the asset are expensed as incurred. Upon sale, retirement, or other disposition of these assets, the costs and related accumulated depreciation are removed from the respective accounts and any gain or loss on the disposition is included on our Consolidated Statements of Operations.
Leases
Leases

We determine if an arrangement is or contains a lease at inception. The Company enters into lease arrangements primarily for office space, warehouse space, or a combination of both. We elected to account for leases with initial terms of 12 months or less by recording operating lease expense on a straight-line basis instead of recording lease assets or liabilities. For a lease with an initial term greater than 12 months, the Company records a right-of-use (“ROU”) asset and lease liability on the Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.

We determine whether the lease is an operating or finance lease at inception based on the information and expectations for the lease at that time. Operating lease ROU assets are included in property, plant and equipment and the lease liabilities are included in other current liabilities and other liabilities on our Consolidated Balance Sheets. Finance lease ROU assets are included in finance lease ROU assets and the lease liabilities are included in finance lease obligations (current) and finance lease obligations (long-term) on our Consolidated Balance Sheets.

Lease ROU assets and liabilities are recorded at commencement date based on the present value of lease payments over the lease term. As the leases recorded typically do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets also include any base rental or lease payments made and exclude lease incentives.

The two components of operating lease expense, amortization and interest, are recognized on a straight-line basis over the lease term as a single expense element within selling, general and administrative expenses on the Consolidated Statements of Operations. Under the finance lease model, interest on the lease liability is recognized in interest expense and amortization of ROU assets is recorded on the Consolidated Statements of Operations based on the underlying use of the assets.
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets
The Company reviews its long-lived assets, including property, plant and equipment, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. If we are required to analyze recoverability based on a triggering event, undiscounted future cash flows over the estimated remaining life of the asset, or asset group, are projected. If these projected cash flows are less than the carrying amount, an impairment loss is recognized to the extent the fair value of the asset less any costs of disposition is less than the carrying amount of the asset. Judgments regarding the existence of impairment indicators are based on market and operational performance. Evaluating potential impairment also requires estimates of future operating results and cash flows.
Goodwill and Intangible Assets
Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price of acquired businesses over the fair value of the assets acquired less liabilities assumed in connection with such acquisition. In accordance with the provisions of Accounting Standards Codification Topic ("ASC") 350, Intangibles—Goodwill and Other, goodwill and intangible assets with indefinite useful lives acquired in an acquisition are not
amortized, but instead are tested for impairment at least annually or more frequently should an event occur or circumstances indicate that the carrying amount may be impaired. Such events or circumstances may include a significant change in business climate, economic and industry trends, legal factors, negative operating performance indicators, significant competition, changes in strategy or disposition of a reporting unit or a portion thereof.

We have two reporting units for which we test goodwill for impairment: Bus and Parts. In the evaluation of goodwill for impairment, we have the option to perform a qualitative assessment to determine whether further impairment testing is necessary or to perform a quantitative assessment by comparing the fair value of a reporting unit to its carrying amount, including goodwill. When performing a qualitative assessment, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. If, when performing a quantitative assessment, the fair value of a reporting unit is less than its carrying amount, then the amount of the impairment loss, if any, must be measured using step two of the impairment analysis. In step two of the analysis, we would record an impairment loss equal to the excess of the carrying value of the reporting unit’s goodwill over its implied fair value, should such a circumstance arise.

The fair value of the reporting units is estimated primarily using the income approach, which incorporates the use of discounted cash flow ("DCF") analysis. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including markets and market shares, sales volumes and prices, costs to produce, tax rates, capital spending, discount rate and working capital changes. The cash flow forecasts are based on approved strategic operating plans and long-term forecasts.

In the evaluation of indefinite lived assets for impairment, we have the option to perform a qualitative assessment to determine whether further impairment testing is necessary, or to perform a quantitative assessment by comparing the fair value of an asset to its carrying amount. The Company’s intangible asset with an indefinite useful life is the "Blue Bird" trade name. When performing a qualitative assessment, an entity is not required to calculate the fair value of the asset unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. If a qualitative assessment is not performed or if a quantitative assessment is otherwise required, then the entity compares the fair value of an asset to its carrying amount and the amount of the impairment loss, if any, is the difference between fair value and carrying value. The fair value of our trade name is derived by using the relief from royalty method, which discounts the estimated cash savings we realized by owning the name instead of otherwise having to license or lease it.

Our intangible assets with a definite useful life are amortized over their estimated useful lives, 7 or 20 years, using the straight-line method. The useful lives of our intangible assets are reassessed annually and they are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable.
Debt Issue Costs
Debt Issue Costs

Amounts paid directly to lenders or as an original issue discount and amounts classified as issuance costs are recorded as a reduction in the carrying value of the debt, for which the Company had deferred financing costs totaling $1.3 million and $1.5 million at September 28, 2024 and September 30, 2023, respectively, incurred in connection with its debt facilities and related amendments.
All deferred financing costs are amortized to interest expense. The effective interest method is used for debt discounts related to the term loan. The Company’s amortization of these costs was $0.4 million, $1.5 million and $1.5 million for fiscal 2024, fiscal 2023 and fiscal 2022, respectively, and is reflected as a component of interest expense on the Consolidated Statements of Operations.
Pensions
Pensions
The Company accounts for its pension benefit obligations using actuarial models. The measurement of plan obligations and assets was made at September 30, 2024. Effective January 1, 2006, the benefit plan was frozen to all participants. No accrual of future benefits is earned or calculated beyond this date. Accordingly, our obligation estimate is based on benefits earned at that time discounted using an estimate of the single equivalent discount rate determined by matching the plan’s future expected cash flows to spot rates from a yield curve comprised of high-quality corporate bond rates of various durations. The Company recognizes the funded status of its pension plan obligations on the Consolidated Balance Sheet and records in other comprehensive income certain gains and losses that arise during the period, but are deferred under pension accounting rules.
Product Warranty Costs
Product Warranty Costs

The Company’s products are generally warranted against defects in material and workmanship for a period of one year to five years. A provision for estimated warranty costs is recorded at the time a unit is sold. The methodology to determine the warranty reserve calculates the average expected warranty claims using warranty claims by body type, by month, over the life of the bus, which is then multiplied by remaining months under warranty, by warranty type. Management believes the methodology provides an accurate reserve estimate. Actual claims incurred could differ from the original estimates, requiring future adjustments.
Extended Product Warranty Costs The Bus segment also sells extended warranties related to its products. Revenue related to these contracts is recognized on a straight-line basis over the contract period and costs thereunder are expensed as incurred. All warranty expenses are recorded in the cost of goods sold line on the Consolidated Statements of Operations. The current methodology to determine short-term extended warranty income reserve is based on twelve months of the remaining warranty value for each effective extended warranty at the balance sheet date.
Research and Development
Research and Development
Research and development costs are expensed as incurred and included in selling, general and administrative expenses on our Consolidated Statements of Operations.
Income Taxes
Income Taxes

The Company accounts for income taxes in accordance with the provisions of ASC 740, Income Taxes (“ASC 740”), which requires an asset and liability approach to financial accounting and reporting for income taxes. Under this approach, deferred income taxes represent the expected future tax consequences of temporary differences between the financial statement and tax basis of assets and liabilities. The Company evaluates its ability, based on the weight of evidence available, to realize future tax benefits from deferred tax assets and establishes a valuation allowance to reduce a deferred tax asset to a level which, more likely than not, will be realized in future years.

The Company recognizes uncertain tax positions based on a cumulative probability assessment if it is more likely than not that the tax position will be sustained upon examination by an appropriate tax authority with full knowledge of all information. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Amounts recorded for uncertain tax positions are periodically assessed, including the evaluation of new facts and circumstances, to ensure sustainability of the positions. The Company records interest and penalties related to unrecognized tax benefits in income tax expense.

The Company's policy for releasing income tax effects from accumulated other comprehensive loss is to use a specific identification approach.
Environmental Expenditures
Environmental Liabilities
The Company records reserves for environmental liabilities on a discounted basis when environmental investigation and remediation obligations are probable and related costs are reasonably estimable.
Segment Reporting
Segment Reporting

Operating segments are components of an entity that engage in business activities with discrete financial information available that is regularly reviewed by the chief operating decision maker (“CODM”) in order to assess performance and allocate resources. The Company’s CODM is its President and Chief Executive Officer. As discussed further in Note 11, Segment Information, the Company determined its operating and reportable segments to be Bus and Parts. The Bus segment includes the manufacturing and assembly of school buses to be sold to a variety of customers across the U.S., Canada and in certain limited international markets. The Parts
segment consists primarily of the purchase of parts from third parties to be sold to dealers within the Company’s network and certain large fleet customers.
Statement of Cash Flows
Statement of Cash Flows

We classify distributions received from our equity method investment(s), if any, using the nature of distribution approach, such that distributions received are classified based on the nature of the activity of the investee that generated the distribution. Returns on investment are classified within operating activities, while returns of investment are classified within investing activities.
Recently Issued and Adopted Accounting Standards
Recently Issued Accounting Standards

ASU 2023-07 On November 27, 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments’ significant expenses on an interim and annual basis. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

ASU 2023-09 On December 14, 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires entities to disclose more detailed information in their reconciliation of their statutory tax rate to their effective tax rate. Public business entities ("PBEs") are required to provide this incremental detail in a numerical, tabular format. The ASU also requires entities to disclose more detailed information about income taxes paid, including by jurisdiction; pretax income (or loss) from continuing operations; and income tax expense (or benefit). The ASU is effective for PBEs in fiscal years beginning after December 15, 2024, with early adoption permitted.

ASU 2024-03 On November 4, 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires PBEs to disclose disaggregated information about certain income statement expense line items. The ASU is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.

The new ASUs will not impact amounts recorded in the consolidated financial statements, but, instead, will require more detailed disclosures in the footnotes to the financial statements. The Company plans to provide the updated disclosures required by the ASUs in the periods in which they are effective.

Any recently issued accounting standards not identified above do not apply to the Company or the impact is expected to be immaterial.
v3.24.3
Summary of Significant Accounting Policies and Recently Issued Accounting Standards (Tables)
12 Months Ended
Sep. 28, 2024
Accounting Policies [Abstract]  
Property, Plant and Equipment Depreciation and amortization is calculated on a straight-line basis using the following periods, which represent the estimated useful lives of the assets:
Years
Buildings15 - 33
Machinery and equipment5 - 10
Office furniture, equipment and other3 - 10
Computer equipment and software3 - 7
Property, plant and equipment, net, consisted of the following at the dates indicated:
(in thousands)September 28, 2024September 30, 2023
Land$2,504 $2,504 
Buildings65,237 64,206 
Machinery and equipment121,048 115,248 
Office furniture, equipment and other2,467 2,355 
Computer equipment and software20,718 20,662 
Construction in process12,408 7,151 
Property, plant and equipment, gross224,382 212,126 
Accumulated depreciation and amortization(131,413)(121,323)
Operating lease right-of-use assets (1)4,353 4,298 
Property, plant and equipment, net$97,322 $95,101 
(1) Further information is included in Note 10, Guarantees, Commitments and Contingencies.
v3.24.3
Supplemental Financial Information (Tables)
12 Months Ended
Sep. 28, 2024
Condensed Financial Information [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Accounts receivable, net, consisted of the following at the dates indicated:
(in thousands)
September 28, 2024September 30, 2023
Accounts receivable$59,199 $12,674 
Allowance for doubtful accounts(100)(100)
Accounts receivable, net $59,099 $12,574 
Schedule of Product Warranty Liability
The following table reflects activity in accrued warranty cost (current and long-term portion combined) for the fiscal years presented:
(in thousands)202420232022
Balance at beginning of period$15,434 $15,970 $18,550 
Add: current period accruals9,985 9,084 7,348 
Less: current period reductions of accrual(9,240)(9,620)(9,928)
Balance at end of period$16,179 $15,434 $15,970 
The following table reflects activity in deferred warranty income (current and long-term portions combined), for the sale of extended warranties of two years to five years, for the fiscal years presented:
(in thousands)202420232022
Balance at beginning of period$23,123 $18,795 $20,144 
   Add: current period deferred income13,245 12,013 6,847 
   Less: current period recognition of income(8,406)(7,685)(8,196)
Balance at end of period$27,962 $23,123 $18,795 
Schedule of Self Insurance Reserve
The following table reflects the total accrued self-insurance liability, comprised of workers' compensation and health insurance related claims, at the dates indicated:
(in thousands)September 28, 2024September 30, 2023
Current portion$5,008 $4,475 
Long-term portion2,248 1,771 
Total accrued self-insurance$7,256 $6,246 
v3.24.3
Inventories (Tables)
12 Months Ended
Sep. 28, 2024
Inventory Disclosure [Abstract]  
Schedule of Inventories, Current
The following table presents components of inventories at the dates indicated:
(in thousands)September 28, 2024September 30, 2023
Raw materials$83,027 $88,116 
Work in process32,556 45,875 
Finished goods12,215 1,295 
Total inventories$127,798 $135,286 
v3.24.3
Property, Plant and Equipment (Tables)
12 Months Ended
Sep. 28, 2024
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Depreciation and amortization is calculated on a straight-line basis using the following periods, which represent the estimated useful lives of the assets:
Years
Buildings15 - 33
Machinery and equipment5 - 10
Office furniture, equipment and other3 - 10
Computer equipment and software3 - 7
Property, plant and equipment, net, consisted of the following at the dates indicated:
(in thousands)September 28, 2024September 30, 2023
Land$2,504 $2,504 
Buildings65,237 64,206 
Machinery and equipment121,048 115,248 
Office furniture, equipment and other2,467 2,355 
Computer equipment and software20,718 20,662 
Construction in process12,408 7,151 
Property, plant and equipment, gross224,382 212,126 
Accumulated depreciation and amortization(131,413)(121,323)
Operating lease right-of-use assets (1)4,353 4,298 
Property, plant and equipment, net$97,322 $95,101 
(1) Further information is included in Note 10, Guarantees, Commitments and Contingencies.
v3.24.3
Goodwill (Tables)
12 Months Ended
Sep. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The carrying amounts of goodwill by reporting unit are as follows at the dates indicated: 
(in thousands)Gross
Goodwill
Accumulated
Impairments
Net Goodwill
September 28, 2024
Bus$15,139 $— $15,139 
Parts3,686 — 3,686 
Total$18,825 $— $18,825 
September 30, 2023
Bus$15,139 $— $15,139 
Parts3,686 — 3,686 
Total$18,825 $— $18,825 
v3.24.3
Intangible Assets (Tables)
12 Months Ended
Sep. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets
The gross carrying amounts and accumulated amortization of intangible assets are as follows at the dates indicated: 
 September 28, 2024September 30, 2023
(in thousands)Gross
Carrying
Amount
Accumulated
Amortization
TotalGross
Carrying
Amount
Accumulated
Amortization
Total
Finite lived: Engineering designs$3,156 $3,156 $— $3,156 $3,156 $— 
Finite lived: Customer relationships37,425 33,687 3,738 37,425 31,817 5,608 
Total amortized intangible assets40,581 36,843 3,738 40,581 34,973 5,608 
Indefinite lived: Trade name39,816 — 39,816 39,816 — 39,816 
Total intangible assets$80,397 $36,843 $43,554 $80,397 $34,973 $45,424 
Schedule of Indefinite-Lived Intangible Assets
The gross carrying amounts and accumulated amortization of intangible assets are as follows at the dates indicated: 
 September 28, 2024September 30, 2023
(in thousands)Gross
Carrying
Amount
Accumulated
Amortization
TotalGross
Carrying
Amount
Accumulated
Amortization
Total
Finite lived: Engineering designs$3,156 $3,156 $— $3,156 $3,156 $— 
Finite lived: Customer relationships37,425 33,687 3,738 37,425 31,817 5,608 
Total amortized intangible assets40,581 36,843 3,738 40,581 34,973 5,608 
Indefinite lived: Trade name39,816 — 39,816 39,816 — 39,816 
Total intangible assets$80,397 $36,843 $43,554 $80,397 $34,973 $45,424 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense mortization expense for finite lived intangible assets is expected to be as follows:
(in thousands)
Fiscal Years EndingAmortization Expense
2025$1,869 
20261,869 
Total amortization expense$3,738 
v3.24.3
Debt (Tables)
12 Months Ended
Sep. 28, 2024
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
Debt consisted of the following at the dates indicated:
(in thousands)September 28, 2024September 30, 2023
Term loans, net of deferred financing costs of $1,256 and $1,456, respectively
$94,994 $130,344 
Less: Current portion of long-term debt5,000 19,800 
Long-term debt, net of current portion$89,994 $110,544 
Schedule of Maturities of Long-term Debt
The schedule of remaining principal maturities for the term loans is as follows at September 28, 2024:
(in thousands)
Fiscal Year
Principal Payments
2025$5,000 
20265,000 
20275,000 
20285,000 
20295,000 
Thereafter71,250 
Total remaining principal payments$96,250 
v3.24.3
Income Taxes (Tables)
12 Months Ended
Sep. 28, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax (Benefit) Expense
The components of income tax (expense) benefit were as follows for the fiscal years presented: 
(in thousands)202420232022
Current tax provision:
Federal$(30,188)$(645)$380 
State(4,447)(243)— 
Foreign(267)— — 
Total current tax (expense) benefit
$(34,902)$(888)$380 
Deferred tax provision:
Federal$2,046 $(6,230)$10,862 
State(372)(1,835)209 
Total deferred tax benefit (expense)
1,674 (8,065)11,071 
Income tax (expense) benefit
$(33,228)$(8,953)$11,451 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation between the reported income tax (expense) benefit and the amount computed by applying the statutory federal income tax rate is as follows: 
(in thousands)202420232022
Federal tax (expense) benefit at statutory rate
$(26,594)$(5,419)$11,141 
(Increase) reduction in income tax expense resulting from:
State taxes, net(4,808)(1,700)2,240 
Change in uncertain tax positions— 240 395 
Share-based compensation(675)(95)(513)
Permanent items(700)(1,582)(31)
Valuation allowance(17)(319)(2,050)
Tax credits273 330 285 
Return to accrual adjustments(212)
Investor tax on non-consolidated affiliate income(700)(404)231 
Other(11)(7)(35)
Income tax (expense) benefit
$(33,228)$(8,953)$11,451 
Schedule of Unrecognized Tax Benefits Roll Forward A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
(in thousands)202420232022
Balance, beginning of year$— $110 $370 
Additions for tax positions of prior years— — — 
Lapses of applicable statute of limitations— (110)(260)
Balance, end of year$— $— $110 
Schedule of Deferred Tax Assets and Liabilities
The following table sets forth the sources of and differences between the financial accounting and tax bases of the Company’s assets and liabilities which give rise to the net deferred tax liabilities at the dates indicated:
(in thousands)September 28, 2024September 30, 2023
Deferred tax liabilities
Property, plant and equipment$(9,894)$(10,880)
Other intangible assets(10,679)(11,167)
Investor tax on non-consolidated affiliate income(1,261)(866)
Other
(566)— 
Total deferred tax liabilities$(22,400)$(22,913)
Deferred tax assets
NOL carryforward$731 $1,168 
Accrued expenses8,017 5,586 
Compensation2,257 2,839 
Interest limitation carryforward— 5,235 
Inventories812 743 
Capitalized research & development
5,035 3,052 
Unearned income4,301 3,096 
Tax credits6,702 6,685 
Total deferred tax assets$27,855 $28,404 
Less: valuation allowance(5,839)(5,822)
Deferred tax assets less valuation allowance$22,016 $22,582 
Net deferred tax liabilities
$(384)$(331)
v3.24.3
Guarantees, Commitments and Contingencies (Tables)
12 Months Ended
Sep. 28, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Supplemental Cash Flow Information
The components of lease costs included on the Consolidated Statements of Operations are as follows:
(in thousands)Fiscal Years Ended
Lease costClassification20242023
Operating leasesSelling, general and administrative expenses$2,031 $2,188 
Finance leases
Amortization of lease assetsCost of goods sold702 702 
Interest on lease liabilitiesInterest expense40 60 
Short-term leases (1)Cost of goods sold or selling, general and administrative expenses1,720 1,993 
Total lease cost$4,493 $4,943 
(1) Short-term lease cost includes both leases and rentals with initial terms of one year or less. Classification depends on the purpose of the underlying lease.
Supplemental cash flow information is presented in the following table:
Fiscal Years Ended
(in thousands)20242023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows - operating leases$2,442 $2,688 
Operating cash flows - finance leases40 60 
Financing cash flows - finance leases589 570 
Right-of-use assets exchanged for lease liabilities
Operating leases$1,682 $626 
Schedule of Supplemental Balance Sheet Information
The following table summarizes the lease amounts included on the Consolidated Balance Sheets as follows:
(in thousands)Balance Sheet LocationSeptember 28, 2024September 30, 2023
Assets
Operating Property, plant and equipment$4,353 $4,298 
Finance (1)Finance lease right-of-use332 1,034 
Total lease assets$4,685 $5,332 
Liabilities
Current
OperatingOther current liabilities$1,873 $1,593 
FinanceFinance lease obligations975 583 
Long-term
OperatingOther liabilities2,971 3,608 
FinanceFinance lease obligations987 
Total lease liabilities$5,825 $6,771 
(1) Net of accumulated amortization of $3.2 million and $2.5 million, respectively.
Lease terms and discount rates are presented in the following table:
September 28, 2024
OperatingFinance
Weighted average remaining lease term2.80.5
Weighted average discount rate6.0 %3.2 %
Schedule of Operating Lease Liability Maturities
Lease liability maturities are presented in the following table:
(in thousands)September 28, 2024
Fiscal Years EndedOperatingFinanceTotal
2025$2,149 $994 $3,143 
20261,852 — 1,852 
2027866 — 866 
2028301 — 301 
2029184 — 184 
Thereafter65 — 65 
Total future minimum lease payments5,417 994 6,411 
Less: imputed interest573 13 586 
Total lease liabilities$4,844 $981 $5,825 
Schedule of Finance Lease Liability Maturities
Lease liability maturities are presented in the following table:
(in thousands)September 28, 2024
Fiscal Years EndedOperatingFinanceTotal
2025$2,149 $994 $3,143 
20261,852 — 1,852 
2027866 — 866 
2028301 — 301 
2029184 — 184 
Thereafter65 — 65 
Total future minimum lease payments5,417 994 6,411 
Less: imputed interest573 13 586 
Total lease liabilities$4,844 $981 $5,825 
Contractual Obligation, Fiscal Year Maturity
In the ordinary course of business, the Company enters into short-term contractual purchase orders for manufacturing inventory and capital assets. The amount of these commitments is expected to be as follows:
(in thousands)
Fiscal Years EndedAmount
2025$134,121 
20261,953 
Total purchase commitments$136,074 
v3.24.3
Segment Information (Tables)
12 Months Ended
Sep. 28, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
Net sales
(in thousands)202420232022
Bus (1)$1,242,885 $1,034,625 $723,505 
Parts (1)104,269 98,168 77,132 
Segment net sales$1,347,154 $1,132,793 $800,637 
(1) Parts segment revenue includes $9.3 million, $5.6 million, and $3.9 million for fiscal 2024, fiscal 2023 and fiscal 2022, respectively, related to inter-segment sales of parts that was eliminated by the Bus segment upon consolidation.
 
Gross profit
(in thousands)202420232022
Bus$203,791 $91,003 $5,065 
Parts52,365 47,847 31,481 
Segment gross profit$256,156 $138,850 $36,546 
Reconciliation of Operating Profit from Segments to Consolidated
The following table is a reconciliation of segment gross profit to consolidated income (loss) before income taxes for the fiscal years presented:
(in thousands)202420232022
Segment gross profit$256,156 $138,850 $36,546 
Adjustments:
Selling, general and administrative expenses(116,825)(87,193)(77,246)
Interest expense(10,579)(18,012)(14,675)
Interest income4,136 1,004 
Other (expense) income, net
(4,394)(8,307)2,947 
Loss on debt refinancing or modification
(1,558)(537)(632)
Income (loss) before income taxes
$126,936 $25,805 $(53,051)
Revenue from External Customers by Geographic Areas
Sales are attributable to geographic areas based on customer location and were as follows for the fiscal years presented:
(in thousands)202420232022
United States$1,199,527 $1,048,279 726,227 
Canada146,609 78,907 69,683 
Rest of world1,018 5,607 4,727 
Total net sales$1,347,154 $1,132,793 800,637 
v3.24.3
Revenue (Tables)
12 Months Ended
Sep. 28, 2024
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table disaggregates revenue by product category for the periods presented:
Fiscal Years Ended
(in thousands)202420232022
Diesel buses$461,222 $341,969 $276,395 
Alternative powered buses (1)726,083 648,900 407,599 
Other (2)58,074 46,246 41,858 
Parts101,775 95,678 74,785 
Net sales$1,347,154 $1,132,793 $800,637 
(1) Includes buses sold with any power source other than diesel (e.g., gasoline, propane, compressed natural gas ("CNG"), or electric).
(2) Includes shipping and handling revenue, extended warranty income, surcharges, chassis, and bus shell sales.
v3.24.3
Earnings Per Share (Tables)
12 Months Ended
Sep. 28, 2024
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table presents the basic and diluted earnings per share computation for the fiscal years presented:
(in thousands except share data)202420232022
Numerator:
Net income (loss)
$105,547 $23,812 $(45,759)
Basic earnings (loss) per share:
Weighted average common shares outstanding32,270,711 32,071,940 31,020,399 
Basic earnings (loss) per share
$3.27 $0.74 $(1.48)
Diluted earnings (loss) per share (1):
Weighted average common shares outstanding32,270,711 32,071,940 31,020,399 
Weighted average dilutive securities, restricted stock407,773 166,720 — 
Weighted average dilutive securities, stock options283,061 19,992 — 
Weighted average dilutive securities, warrants387,676 — — 
Weighted average shares and dilutive potential common shares33,349,221 32,258,652 31,020,399 
Diluted earnings (loss) per share
$3.16 $0.74 $(1.48)
(1) There were no potentially dilutive securities for fiscal 2024 while 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 fiscal 2023 and fiscal 2022, respectively, as their effect would have been anti-dilutive.
v3.24.3
Share-Based Compensation (Tables)
12 Months Ended
Sep. 28, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity
The following table summarizes the Company's RSU activity for the fiscal year presented:
2024
RSU ActivityNumber of SharesWeighted-Average Grant Date Fair Value
Balance, beginning of year584,063 $22.99 
Granted209,708 21.35 
Vested(93,766)15.96 
Forfeited(64,357)23.19 
Balance, end of year635,648 23.07 
Schedule of Share-based Compensation, Stock Options, Activity
The following table summarizes the Company's stock option activity for the fiscal year presented:
2024
Number of OptionsWeighted Average Exercise Price per Share ($)
Outstanding options, beginning of year640,353 $16.38 
Granted63,300 14.45 
Exercised (1)(248,015)16.27 
Expired(4,442)15.62 
Forfeited(15,769)13.62 
Outstanding options, end of year (2)435,427 $16.27 
Fully vested and exercisable options, end of year (3)278,678 $17.58 
(1) Stock options exercised during the fiscal year had an aggregate intrinsic value totaling $6.2 million.
(2) Stock options outstanding at the end of the fiscal year had $14.0 million intrinsic value.
(3) Fully vested and exercisable options at the end of the fiscal year had $8.6 million intrinsic value.
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
The fair value of each option award at grant date was estimated using the Black-Scholes option-pricing model with the following assumptions made and resulting grant-date fair values during the fiscal years presented:
202420232022
Expected volatility62 %51 %46 %
Expected dividend yield%%%
Risk-free interest rate4.24 %3.78 %1.30 %
Expected term (in years)
4.5 - 5.0
4.5 - 6.0
4.5 - 6.0
Weighted-average grant-date fair value$16.30 $6.17 $7.04 
v3.24.3
Benefit Plans (Tables)
12 Months Ended
Sep. 28, 2024
Retirement Benefits [Abstract]  
Schedule of Changes in Projected Benefit Obligations
The reconciliation of the beginning and ending balances of the PBO for the Defined Benefit Plan for the fiscal years indicated is presented in the following table:
Benefit Obligation
(in thousands)20242023
Projected benefit obligation balance, beginning of year$108,393 $122,571 
Interest cost5,936 6,035 
Actuarial loss (gain) (1)
8,091 (7,038)
Benefits paid(8,786)(13,175)
Projected benefit obligations balance, end of year$113,634 $108,393 
(1) Includes assumption changes, as applicable, resulting from (i) changes in the utilized discount rate to value the future obligations, and (ii) updates to the mortality table projections used in the calculation of the benefit obligations.
Schedule of Changes in Fair Value of Plan Assets The summary and reconciliation of the beginning and ending balances of the fair value of the Defined Benefit Plan assets are as follows:
Plan Assets
(in thousands)20242023
Fair value of plan assets, beginning of year$105,989 $106,547 
Actual return on plan assets21,080 11,504 
Employer contribution— 1,113 
Benefits paid(8,786)(13,175)
Fair value of plan assets, end of year$118,283 $105,989 
Schedule of Net Funded Status The net pension asset or liability is reflected in long-term assets or liabilities, respectively, on the Consolidated Balance Sheets.
Funded Status
(in thousands)September 28, 2024September 30, 2023
Benefit obligation$113,634 $108,393 
Fair value of plan assets118,283 105,989 
Funded status4,649 (2,404)
Net pension asset (liability) recognized
$4,649 $(2,404)
Schedule of Allocation of Plan Assets
The following table sets forth, by level within the fair value hierarchy, a summary of the Defined Benefit Plan’s investments measured at fair value:
(in thousands)Level 1Level 2Level 3Total
September 28, 2024
Assets:
Equity securities$— $77,817 $— $77,817 
Debt securities— 40,466 — 40,466 
Total assets at fair value$— $118,283 $— $118,283 
September 30, 2023
Assets:
Equity securities$— $60,055 $— $60,055 
Debt securities— 45,934 — 45,934 
Total assets at fair value$— $105,989 $— $105,989 
The Defined Benefit Plan asset allocations at the dates indicated are as follows: 
September 28, 2024September 30, 2023
Equity securities66 %57 %
Debt securities34 %43 %
Total securities100 %100 %
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)
The following table represents net periodic benefit expense (income) and changes in plan assets and benefit obligations recognized in other comprehensive income, before tax effect, for the fiscal years presented:
(in thousands)202420232022
Interest cost$5,936 $6,035 $4,368 
Expected return on plan assets(6,481)(6,518)(8,491)
Amortization of net loss687 1,195 1,163 
Net periodic benefit expense (income)
$142 $712 $(2,960)
Net gain
$(6,507)$(12,024)$(2,605)
Amortization of net loss(687)(1,195)(1,163)
Total recognized in other comprehensive income
$(7,194)$(13,219)$(3,768)
Total recognized in net periodic pension benefit expense (income) and other comprehensive income
$(7,052)$(12,507)$(6,728)
Schedule of Assumptions Used
The following actuarial assumptions were used to determine the benefit obligations at the dates indicated:
Weighted-average assumptions used to determine benefit obligations:September 28, 2024September 30, 2023
Discount rate4.80 %5.70 %
Rate of compensation increaseN/AN/A
Weighted-average assumptions used to determine net periodic benefit cost:September 28, 2024September 30, 2023
Discount rate5.70 %5.10 %
Expected long-term return on plan assets6.37 %6.37 %
Rate of compensation increaseN/AN/A
Schedule of Expected Benefit Payments The following benefit payments are expected to be paid out of the Company's pension assets to the plan participants in the fiscal years indicated:
(in thousands)Expected Payments
2025$8,676 
20268,701 
20278,682 
20288,624 
20298,547 
2030 - 203440,614 
Total expected future benefit payments$83,844 
v3.24.3
Equity Investment in Affiliate (Tables)
12 Months Ended
Sep. 28, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Summarized Financial Results
Micro Bird's summarized balance sheet information at its September 30 year end is as follows (denominated in U.S. Dollars):
 Balance Sheet
(in thousands)20242023
Current assets$100,974 $72,232 
Non-current assets25,097 21,220 
Total assets$126,071 $93,452 
Current liabilities86,788 64,230 
Non-current liabilities1,201 2,359 
Total liabilities$87,989 $66,589 
Net assets$38,082 $26,863 

Micro Bird's summarized financial results for its three fiscal years ended September 30 are as follows (denominated in U.S. Dollars):
 Income Statement
(in thousands)202420232022
Revenues$280,943 $203,086 $128,343 
Gross profit54,599 35,453 2,071 
Operating income (loss)
32,075 18,310 (10,453)
Net income (loss)
21,726 13,244 (8,924)
v3.24.3
Accumulated Other Comprehensive Loss (Tables)
12 Months Ended
Sep. 28, 2024
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
The following table provides information on changes in accumulated other comprehensive loss (“AOCL”) for the periods presented:
(in thousands)Defined Benefit Pension PlanTotal AOCL
Balance, October 2, 2021$(44,794)$(44,794)
Other comprehensive loss, gross2,605 2,605 
Amounts reclassified and included in earnings1,163 1,163 
Total before taxes3,768 3,768 
Income taxes(904)(904)
Balance, October 1, 2022$(41,930)$(41,930)
Other comprehensive income, gross12,024 12,024 
Amounts reclassified and included in earnings1,195 1,195 
Total before taxes13,219 13,219 
Income taxes(3,173)(3,173)
Balance, September 30, 2023$(31,884)$(31,884)
Other comprehensive income, gross6,507 6,507 
Amounts reclassified and included in earnings687 687 
Total before taxes7,194 7,194 
Income taxes(1,726)(1,726)
Balance, September 28, 2024$(26,416)$(26,416)
v3.24.3
Stockholder Transaction Costs (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Sep. 11, 2023
Jun. 07, 2023
Dec. 15, 2021
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Subsidiary, Sale of Stock [Line Items]            
Cash paid for common stock issuance costs (Note 13)       $ 0 $ 0 $ 202
Private Placement            
Subsidiary, Sale of Stock [Line Items]            
Number of shares sold (in shares) 2,500,000 5,175,000 4,687,500      
Price of shares sold (in USD per share) $ 21.00 $ 20.00 $ 16.00      
Cash paid for common stock issuance costs (Note 13)       $ 3,200    
Over-Allotment Option            
Subsidiary, Sale of Stock [Line Items]            
Number of shares sold (in shares)   675,000        
v3.24.3
Summary of Significant Accounting Policies and Recently Issued Accounting Standards - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Sep. 13, 2018
Finite-Lived Intangible Assets [Line Items]        
Deferred financing fees $ 1.3 $ 1.5   $ 2.0
Debt amortization/ Non-cash interest expense $ 0.4 1.5 $ 1.5  
Product Warranty Liability [Line Items]        
Extended product warranty, period 12 months      
Research and development expense $ 9.4 $ 6.6 $ 6.1  
Minimum        
Product Warranty Liability [Line Items]        
Standard product warranty, period 1 year      
Extended product warranty, period 2 years      
Maximum        
Product Warranty Liability [Line Items]        
Standard product warranty, period 5 years      
Extended product warranty, period 5 years      
Engineering designs | Maximum        
Finite-Lived Intangible Assets [Line Items]        
Estimated life 7 years      
Customer relationships        
Finite-Lived Intangible Assets [Line Items]        
Estimated life 20 years      
v3.24.3
Summary of Significant Accounting Policies and Recently Issued Accounting Standards - Useful Lives of Property, Plant and Equipment (Details)
Sep. 28, 2024
Buildings | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 15 years
Buildings | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 33 years
Machinery and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 5 years
Machinery and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 10 years
Computer equipment and software | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Computer equipment and software | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 7 years
Office furniture and fixtures | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Office furniture and fixtures | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 10 years
v3.24.3
Supplemental Financial Information - Accounts Receivable (Details) - USD ($)
$ in Thousands
Sep. 28, 2024
Sep. 30, 2023
Condensed Financial Information [Abstract]    
Accounts receivable $ 59,199 $ 12,674
Allowance for doubtful accounts (100) (100)
Accounts receivable, net $ 59,099 $ 12,574
v3.24.3
Supplemental Financial Information - Product Warranty Rollforward (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]      
Balance at beginning of period $ 15,434 $ 15,970 $ 18,550
Add: current period accruals 9,985 9,084 7,348
Less: current period reductions of accrual (9,240) (9,620) (9,928)
Balance at end of period $ 16,179 $ 15,434 $ 15,970
v3.24.3
Supplemental Financial Information - Extended Warranty Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Movement in Extended Product Warranty Accrual [Roll Forward]      
Balance at beginning of period $ 23,123 $ 18,795 $ 20,144
Add: current period deferred income 13,245 12,013 6,847
Less: current period recognition of income (8,406) (7,685) (8,196)
Balance at end of period $ 27,962 $ 23,123 $ 18,795
v3.24.3
Supplemental Financial Information - Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-03
$ in Millions
Sep. 28, 2024
USD ($)
Condensed Financial Information [Abstract]  
Revenue, remaining performance obligation, amount $ 9.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, remaining performance obligation, period 12 months
v3.24.3
Supplemental Financial Information - Self Insurance (Details) - USD ($)
$ in Thousands
Sep. 28, 2024
Sep. 30, 2023
Condensed Financial Information [Abstract]    
Current portion $ 5,008 $ 4,475
Long-term portion 2,248 1,771
Total accrued self-insurance $ 7,256 $ 6,246
v3.24.3
Supplemental Financial Information - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Product Warranty Liability [Line Items]      
Extended product warranty, period 12 months    
Funds awarded by EPA $ 2.2    
Shipping and handling revenue 21.7 $ 18.5 $ 16.0
Shipping and handling costs $ 19.9 $ 16.6 $ 14.3
Minimum      
Product Warranty Liability [Line Items]      
Extended product warranty, period 2 years    
Maximum      
Product Warranty Liability [Line Items]      
Extended product warranty, period 5 years    
v3.24.3
Supplemental Financial Information - Derivative Instruments (Details) - USD ($)
$ in Millions
12 Months Ended
Nov. 30, 2018
Oct. 24, 2018
Sep. 28, 2024
Sep. 30, 2023
Derivative Instruments, Gain (Loss) [Line Items]        
Interest rate collar 4 years      
Payment for derivative     $ 1.2  
Interest Rate Collar        
Derivative Instruments, Gain (Loss) [Line Items]        
Interest rate collar   4 years    
Derivative, notional amount   $ 150.0    
Floor interest rate   1.50%    
Ceiling interest rate   3.30%    
Payment for derivative       $ 1.2
v3.24.3
Inventories (Details) - USD ($)
$ in Thousands
Sep. 28, 2024
Sep. 30, 2023
Inventory Disclosure [Abstract]    
Raw materials $ 83,027 $ 88,116
Work in process 32,556 45,875
Finished goods 12,215 1,295
Total inventories $ 127,798 $ 135,286
v3.24.3
Property, Plant and Equipment (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 224,382 $ 212,126  
Accumulated depreciation and amortization (131,413) (121,323)  
Operating lease, right-of-use assets 4,353 4,298  
Property, plant and equipment, net 97,322 95,101  
Depreciation 12,200 13,300 $ 10,900
Capitalized interest expense related to construction of plant manufacturing assets 300    
Land      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross 2,504 2,504  
Buildings      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross 65,237 64,206  
Machinery and equipment      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross 121,048 115,248  
Office furniture, equipment and other      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross 2,467 2,355  
Computer equipment and software      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross 20,718 20,662  
Construction in process      
Property, Plant and Equipment [Line Items]      
Property, plant and equipment, gross $ 12,408 $ 7,151  
v3.24.3
Goodwill (Details) - USD ($)
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Goodwill [Line Items]    
Gross Goodwill $ 18,825,000 $ 18,825,000
Accumulated Impairments 0 0
Net Goodwill 18,825,000 18,825,000
Goodwill impairment 0 0
Bus    
Goodwill [Line Items]    
Gross Goodwill 15,139,000 15,139,000
Accumulated Impairments 0 0
Net Goodwill 15,139,000 15,139,000
Parts    
Goodwill [Line Items]    
Gross Goodwill 3,686,000 3,686,000
Accumulated Impairments 0 0
Net Goodwill $ 3,686,000 $ 3,686,000
v3.24.3
Intangible Assets (Details) - USD ($)
$ in Thousands
Sep. 28, 2024
Sep. 30, 2023
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 40,581 $ 40,581
Gross Carrying Amount 80,397 80,397
Accumulated Amortization 36,843 34,973
Total 3,738 5,608
Total 43,554 45,424
Trade names    
Indefinite-lived Intangible Assets [Line Items]    
Nonamortized intangible assets 39,816 39,816
Engineering designs    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 3,156 3,156
Accumulated Amortization 3,156 3,156
Total 0 0
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 37,425 37,425
Accumulated Amortization 33,687 31,817
Total $ 3,738 $ 5,608
v3.24.3
Intangible Assets - Narrative (Details) - USD ($)
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Finite-Lived Intangible Assets [Line Items]      
Indefinite lived intangible asset impairment $ 0 $ 0  
Amortization expense for intangible assets $ 1,900,000 $ 2,000,000.0 $ 2,000,000.0
Customer relationships      
Finite-Lived Intangible Assets [Line Items]      
Estimated life 20 years    
Maximum | Engineering designs      
Finite-Lived Intangible Assets [Line Items]      
Estimated life 7 years    
v3.24.3
Intangible Assets Schedule of Expected Amortization Expense (Details) - USD ($)
$ in Thousands
Sep. 28, 2024
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
2025 $ 1,869  
2026 1,869  
Total $ 3,738 $ 5,608
v3.24.3
Debt - Narrative (Details) - USD ($)
12 Months Ended
Sep. 13, 2018
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Nov. 24, 2021
Dec. 12, 2016
Debt Instrument [Line Items]            
Proceeds from lines of credit   $ 36,220,000 $ 45,000,000 $ 135,000,000    
Deferred financing fees $ 2,000,000.0 1,300,000 1,500,000      
Interest expense   10,600,000 18,000,000.0 $ 14,700,000    
Credit Agreement            
Debt Instrument [Line Items]            
Face amount           $ 235,000,000.0
Debt term 5 years          
Term Loan | Credit Agreement            
Debt Instrument [Line Items]            
Face amount           160,000,000.0
Senior Term Loan | Senior Credit Facility            
Debt Instrument [Line Items]            
Long-term line of credit   $ 96,300,000 $ 131,800,000      
Stated interest rate (as a percent)   6.90% 10.00%      
Weighted average interest rate (as a percent)   8.20% 10.90%      
Revolving Credit Facility | Credit Facility | Credit Agreement            
Debt Instrument [Line Items]            
Increase (decrease) to line of credit facility $ 25,000,000.0          
Revolving Credit Facility | Credit Facility | Sixth Amendment to Credit Agreement            
Debt Instrument [Line Items]            
Lender fees and other issuance costs         $ 3,100,000  
Revolving Credit Facility | Credit Facility | Sixth Amendment to Credit Agreement | Loss on Debt Modification            
Debt Instrument [Line Items]            
Lender fees and other issuance costs         400,000  
Revolving Credit Facility | Credit Facility | Sixth Amendment to Credit Agreement | Other Assets            
Debt Instrument [Line Items]            
Lender fees and other issuance costs         1,900,000  
Revolving Credit Facility | Credit Facility | Sixth Amendment to Credit Agreement | Long-term Debt            
Debt Instrument [Line Items]            
Lender fees and other issuance costs         $ 800,000  
Letters of Credit | Credit Facility | Senior Revolving Credit Facility            
Debt Instrument [Line Items]            
Line of credit, amount outstanding   $ 6,700,000        
Remaining borrowing capacity   $ 143,300,000        
Swingline Credit Facility | Credit Facility | Credit Agreement            
Debt Instrument [Line Items]            
Maximum borrowing capacity           $ 5,000,000.0
v3.24.3
Debt - Schedule of Long-term Debt (Details) - USD ($)
$ in Thousands
Sep. 28, 2024
Sep. 30, 2023
Debt Instrument [Line Items]    
Less: Current portion of long-term debt $ 5,000 $ 19,800
Long-term debt, net of current portion 89,994 110,544
Senior Term Loan | Term Loan Facility    
Debt Instrument [Line Items]    
Long-term debt 94,994 130,344
Deferred financing costs $ 1,256 $ 1,456
v3.24.3
Debt - Maturity Schedule (Details)
$ in Thousands
Sep. 28, 2024
USD ($)
Long-term Debt, Fiscal Year Maturity  
2025 $ 5,000
2026 5,000
2027 5,000
Total remaining principal payments $ 96,250
v3.24.3
Income Taxes - Income Tax (Benefit) Expense (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Current tax provision:      
Federal $ (30,188) $ (645) $ 380
State (4,447) (243) 0
Foreign (267) 0 0
Total current tax (expense) benefit (34,902) (888) 380
Deferred tax provision:      
Federal 2,046 (6,230) 10,862
State (372) (1,835) 209
Total deferred tax benefit (expense) 1,674 (8,065) 11,071
Income tax (expense) benefit $ (33,228) $ (8,953) $ 11,451
v3.24.3
Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Operating Loss Carryforwards [Line Items]      
Effective tax rate (as a percent) 26.20% 34.70% 21.60%
Statutory Federal income tax rate (as a percent) 21.00% 21.00% 21.00%
Tax credits $ 6,702 $ 6,685  
Domestic Tax Authority      
Operating Loss Carryforwards [Line Items]      
Operating loss carryforwards 0    
State and Local Jurisdiction      
Operating Loss Carryforwards [Line Items]      
Federal tax credit carryforward 6,700    
Tax credit carryforwards subject to expiration 5,300    
Operating loss carryforwards 600    
Operating loss carryforwards subject to expiration 500    
Tax credits $ 8,000    
v3.24.3
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Income Tax Disclosure [Abstract]      
Federal tax (expense) benefit at statutory rate $ (26,594) $ (5,419) $ 11,141
State taxes, net (4,808) (1,700) 2,240
Change in uncertain tax positions 0 240 395
Share-based compensation (675) (95) (513)
Permanent items (700) (1,582) (31)
Valuation allowance (17) (319) (2,050)
Tax credits 273 330 285
Return to accrual adjustments 4 3 (212)
Investor tax on non-consolidated affiliate income (700) (404) 231
Other (11) (7) (35)
Income tax (expense) benefit $ (33,228) $ (8,953) $ 11,451
v3.24.3
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance, beginning of year $ 0 $ 110 $ 370
Additions for tax positions of prior years 0 0 0
Lapses of applicable statute of limitations 0 110 260
Balance, end of year $ 0 $ 0 $ 110
v3.24.3
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Sep. 28, 2024
Sep. 30, 2023
Deferred tax liabilities    
Property, plant and equipment $ (9,894) $ (10,880)
Other intangible assets (10,679) (11,167)
Investor tax on non-consolidated affiliate income (1,261) (866)
Other (566) 0
Total deferred tax liabilities (22,400) (22,913)
Deferred tax assets    
NOL carryforward 731 1,168
Accrued expenses 8,017 5,586
Compensation 2,257 2,839
Interest limitation carryforward 0 5,235
Inventories 812 743
Capitalized research & development 5,035 3,052
Unearned income 4,301 3,096
Tax credits 6,702 6,685
Total deferred tax assets 27,855 28,404
Less: valuation allowance (5,839) (5,822)
Deferred tax assets less valuation allowance 22,016 22,582
Deferred Tax Liabilities, Net $ (384) $ (331)
v3.24.3
Guarantees, Commitments and Contingencies - Narrative (Details) - USD ($)
$ in Millions
Sep. 28, 2024
Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]    
Accrual for Environmental Loss Contingencies $ 0.5 $ 0.3
Accrual for Environmental Loss Contingencies, Fiscal Year Maturity [Abstract]    
Accrual for Environmental Loss Contingencies, Total $ 0.5 $ 0.3
Operating Leased Assets [Line Items]    
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] Other liabilities, Accrued expenses Other liabilities, Accrued expenses
Renewal term 1 year  
Minimum    
Operating Leased Assets [Line Items]    
Lease term 2 months 12 days  
Maximum    
Operating Leased Assets [Line Items]    
Lease term 5 years 8 months 12 days  
v3.24.3
Guarantees, Commitments and Contingencies - Schedule of Lease Amounts included on the Consolidated Balance Sheets (Details) - USD ($)
$ in Thousands
Sep. 28, 2024
Sep. 30, 2023
Assets    
Operating $ 4,353 $ 4,298
Finance 332 1,034
Total lease assets 4,685 5,332
Current    
Operating 1,873 1,593
Finance 975 583
Long-term    
Operating 2,971 3,608
Finance 6 987
Total lease liabilities 5,825 6,771
Finance lease, right-of-use asset, accumulated amortization $ 3,200 $ 2,500
Operating lease, right-of-use asset, statement of financial position Property, plant and equipment, net Property, plant and equipment, net
Operating lease, liability, current, statement of financial position Other current liabilities Other current liabilities
Operating lease, liability, noncurrent, statement of financial position Other liabilities Other liabilities
v3.24.3
Guarantees, Commitments and Contingencies - Schedule of Lease Costs (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]    
Operating leases $ 2,031 $ 2,188
Amortization of lease assets 702 702
Interest on lease liabilities 40 60
Short-term leases 1,720 1,993
Total lease cost $ 4,493 $ 4,943
v3.24.3
Guarantees, Commitments and Contingencies - Schedule of Lease Liability Maturities (Details) - USD ($)
$ in Thousands
Sep. 28, 2024
Sep. 30, 2023
Operating    
2025 $ 2,149  
2026 1,852  
2027 866  
2028 301  
2029 184  
Thereafter 65  
Total future minimum lease payments 5,417  
Less: imputed interest 573  
Total lease liabilities 4,844  
Finance    
2025 994  
2026 0  
2027 0  
2028 0  
2029 0  
Thereafter 0  
Total future minimum lease payments 994  
Less: imputed interest 13  
Total lease liabilities 981  
Total    
2025 3,143  
2026 1,852  
2027 866  
2028 301  
2029 184  
Thereafter 65  
Total future minimum lease payments 6,411  
Less: imputed interest 586  
Total lease liabilities $ 5,825 $ 6,771
v3.24.3
Guarantees, Commitments and Contingencies - Lease Terms and Discount Rates (Details)
Sep. 28, 2024
Operating  
Weighted average remaining lease term 2 years 9 months 18 days
Weighted average discount rate 6.00%
Finance  
Weighted average remaining lease term 6 months
Weighted average discount rate 3.20%
v3.24.3
Guarantees, Commitments and Contingencies - Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Cash paid for amounts included in the measurement of lease liabilities      
Financing cash flows - finance leases $ 589 $ 570 $ 1,132
Operating cash flows - operating leases 2,442 2,688  
Financing cash flows - finance leases 40 60  
Right-of-use assets exchanged for lease liabilities      
Operating leases $ 1,682 $ 626 $ 1,424
v3.24.3
Guarantees, Commitments and Contingencies - Purchase Commitments (Details)
$ in Thousands
Sep. 28, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2025 $ 134,121
2026 1,953
Total purchase commitments $ 136,074
v3.24.3
Segment Information (Details)
$ in Thousands
12 Months Ended
Sep. 28, 2024
USD ($)
segment
Sep. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
Segment Reporting Information [Line Items]      
Number of operating segments | segment 2    
Net sales $ 1,347,154 $ 1,132,793 $ 800,637
Net sales 1,347,154 1,132,793 800,637
Segment gross profit 256,156 138,850 36,546
United States      
Segment Reporting Information [Line Items]      
Net sales 1,199,527 1,048,279 726,227
Canada      
Segment Reporting Information [Line Items]      
Net sales 146,609 78,907 69,683
Rest of world      
Segment Reporting Information [Line Items]      
Net sales 1,018 5,607 4,727
Intersegment Eliminations | Parts      
Segment Reporting Information [Line Items]      
Net sales 9,300 5,600 3,900
Operating Segments      
Segment Reporting Information [Line Items]      
Net sales 1,347,154 1,132,793 800,637
Segment gross profit 256,156 138,850 36,546
Operating Segments | Bus      
Segment Reporting Information [Line Items]      
Net sales 1,242,885 1,034,625 723,505
Segment gross profit 203,791 91,003 5,065
Operating Segments | Parts      
Segment Reporting Information [Line Items]      
Net sales 104,269 98,168 77,132
Segment gross profit $ 52,365 $ 47,847 $ 31,481
v3.24.3
Segment Information - Reconciliation of Segment Gross Profit (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Segment gross profit $ 256,156 $ 138,850 $ 36,546
Selling, general and administrative expenses (116,825) (87,193) (77,246)
Interest expense (10,579) (18,012) (14,675)
Interest income 4,136 1,004 9
Other (expense) income, net (4,394) (8,307) 2,947
Loss on debt refinancing or modification (1,558) (537) (632)
Income (loss) before income taxes 126,936 25,805 (53,051)
Operating Segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Segment gross profit 256,156 138,850 36,546
Segment Reconciling Items      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]      
Selling, general and administrative expenses (116,825) (87,193) (77,246)
Interest expense (10,579) (18,012) (14,675)
Interest income 4,136 1,004 9
Other (expense) income, net (4,394) (8,307) 2,947
Loss on debt refinancing or modification $ (1,558) $ (537) $ (632)
v3.24.3
Revenue (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Disaggregation of Revenue [Line Items]      
Net sales $ 1,347,154 $ 1,132,793 $ 800,637
Diesel buses      
Disaggregation of Revenue [Line Items]      
Net sales 461,222 341,969 276,395
Alternative fuel buses      
Disaggregation of Revenue [Line Items]      
Net sales 726,083 648,900 407,599
Other      
Disaggregation of Revenue [Line Items]      
Net sales 58,074 46,246 41,858
Parts      
Disaggregation of Revenue [Line Items]      
Net sales $ 101,775 $ 95,678 $ 74,785
v3.24.3
Stockholders' Deficit - (Details) - USD ($)
$ / shares in Units, $ in Millions
Sep. 11, 2023
Jun. 07, 2023
Dec. 15, 2021
Coliseum      
Class of Stock [Line Items]      
Percentage ownership after shares sold     15.00%
Private Placement      
Class of Stock [Line Items]      
Number of shares sold (in shares) 2,500,000 5,175,000 4,687,500
Price of shares sold (in USD per share) $ 21.00 $ 20.00 $ 16.00
Sale of Stock, Consideration Received on Transaction     $ 74.8
v3.24.3
Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Schedule of Earnings Per Share, Including Dilutive Securities [Line Items]      
Net income (loss) $ 105,547 $ 23,812 $ (45,759)
Basic earnings per share      
Basic weighted average shares outstanding (in shares) 32,270,711 32,071,940 31,020,399
Basic earnings per share (in dollars per share) $ 3.27 $ 0.74 $ (1.48)
Diluted earnings per share      
Warrants (in shares) 283,061 19,992 0
Diluted weighted average shares outstanding (in shares) 33,349,221 32,258,652 31,020,399
Diluted earnings per share (in dollars per share) $ 3.16 $ 0.74 $ (1.48)
Restricted stock      
Diluted earnings per share      
Dilutive securities related to share based compensation (in shares) 407,773 166,720 0
Non-qualified stock options      
Diluted earnings per share      
Dilutive securities related to share based compensation (in shares) 387,676 0 0
Common Stock      
Diluted earnings per share      
Anti-dilutive securities excluded from computation of earnings per share (in shares)   700,000  
v3.24.3
Share-Based Compensation - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares authorized to be granted under Omnibus Equity Incentive Plan (in shares) 5,200,000    
Exercise price as a percentage of fair value 100.00%    
Stock-based compensation $ 1.2 $ 0.8 $ 0.9
Tax benefit from compensation expense $ 0.3 0.2 0.2
Unrecognized compensation expense, period for recognition 8 months 12 days    
Aggregate intrinsic value of options exercised during period $ 6.2 $ 0.3 $ 0.1
Unrecognized compensation costs $ 0.5    
Restricted Stock and Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant date fair value of restricted stock awards (in dollars per share) $ 21.35 $ 23.41 $ 17.35
Stock-based compensation $ 7.2 $ 3.2 $ 2.6
Tax benefit from compensation expense 1.8 $ 0.8 $ 0.7
Unrecognized compensation expense $ 6.1    
Unrecognized compensation expense, period for recognition 10 months 24 days    
v3.24.3
Share-Based Compensation - Restricted Stock and Unit Activity (Details) - Restricted Stock and Restricted Stock Units (RSUs) - $ / shares
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Number of Shares      
Unvested shares, beginning of year (in shares) 584,063    
Granted (in shares) 209,708    
Vested (in shares) (93,766)    
Forfeited (in shares) (64,357)    
Unvested shares, end of year (in shares) 635,648 584,063  
Weighted-Average Grant Date Fair Value      
Unvested shares, beginning of year (in dollars per share) $ 22.99    
Granted (in dollars per share) 21.35 $ 23.41 $ 17.35
Vested (in dollars per share) 15.96    
Forfeited (in dollars per share) 23.19    
Unvested shares, end of year (in dollars per share) $ 23.07 $ 22.99  
v3.24.3
Share-Based Compensation - Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Number of Options      
Outstanding at beginning of period (in shares) 640,353    
Granted (in shares) 63,300    
Exercised (in shares) (248,015)    
Expired (in shares) (4,442)    
Forfeited (in shares) (15,769)    
Outstanding at end of period (in shares) 435,427 640,353  
Fully vested and expected to vest (in shares) 278,678    
Weighted Average Exercise Price per Share ($)      
Outstanding at beginning of period (in dollars per share) $ 16.38    
Granted (in dollars per share) 14.45    
Exercised (in dollars per share) 16.27    
Expired (in dollars per share) 15.62    
Forfeited (in dollars per share) 13.62    
Outstanding at end of period (in dollars per share) 16.27 $ 16.38  
Fully vested and expected to vest (in dollars per share) $ 17.58    
Aggregate intrinsic value of options exercised during period $ 6.2 $ 0.3 $ 0.1
Aggregate intrinsic value 14.0    
Aggregate intrinsic value of options vested and exercisable $ 8.6    
v3.24.3
Share-Based Compensation - Fair Value Assumptions (Details) - $ / shares
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility 62.00% 51.00% 46.00%
Expected dividend yield 0.00% 0.00% 0.00%
Risk-free interest rate 4.24% 3.78% 1.30%
Weighted-average grant-date fair value (in dollars per share) $ 16.30 $ 6.17 $ 7.04
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 4 years 6 months 4 years 6 months 4 years 6 months
Minimum | Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 2 years 8 months 12 days 4 years 6 months 4 years 6 months
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 5 years 6 years 6 years
Maximum | Options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 6 years 6 years 5 years 6 months
v3.24.3
Benefit Plans - Narrative (Details) - USD ($)
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Defined Benefit Plan Disclosure [Line Items]      
Employer matching contribution, percent of employees' contribution 50.00%    
Employer matching contribution, percent of employees' gross pay 6.00%    
Employer discretionary contribution amount $ 2,300,000 $ 1,300,000 $ 1,600,000
Medical, dental and accident and sickness benefit expense 13,700,000 15,300,000 13,600,000
Bonus liabilities 17,400,000 8,300,000  
Pension Plan      
Defined Benefit Plan Disclosure [Line Items]      
Employer contribution 0 1,113,000  
Benefits paid 8,786,000 13,175,000  
Benefit obligation 113,634,000 $ 108,393,000 $ 122,571,000
Estimated net loss to be amortized from accumulated other comprehensive loss over next fiscal year 300,000    
Estimated future employer contributions in next fiscal year 800,000    
Pension Plan, Certain Participants Meeting Certain Specified Criteria      
Defined Benefit Plan Disclosure [Line Items]      
Employer contribution $ 5,200,000    
v3.24.3
Benefit Plans - Projected Benefit Obligation (Details) - Pension Plan - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Change in benefit obligation      
Projected benefit obligation balance, beginning of year $ 108,393 $ 122,571  
Interest cost 5,936 6,035 $ 4,368
Actuarial loss (gain) (1) 8,091 (7,038)  
Benefits paid (8,786) (13,175)  
Projected benefit obligations balance, end of year $ 113,634 $ 108,393 $ 122,571
v3.24.3
Benefit Plans - Change in Plan Assets (Details) - Pension Plan - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Change in plan assets    
Fair value of plan assets, beginning of year $ 105,989 $ 106,547
Actual return on plan assets 21,080 11,504
Employer contribution 0 1,113
Benefits paid (8,786) (13,175)
Fair value of plan assets, end of year $ 118,283 $ 105,989
v3.24.3
Benefit Plans - Net Funded Status (Details) - Pension Plan - USD ($)
$ in Thousands
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Defined Benefit Plan Disclosure [Line Items]      
Benefit obligation $ 113,634 $ 108,393 $ 122,571
Fair value of plan assets 118,283 105,989 $ 106,547
Funded status 4,649 (2,404)  
Net pension asset (liability) recognized $ 4,649 $ (2,404)  
v3.24.3
Benefit Plans - Fair Value of Plan Assets (Details) - Pension Plan - USD ($)
$ in Thousands
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 118,283 $ 105,989 $ 106,547
Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 118,283 105,989  
Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Equity securities      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 77,817 60,055  
Equity securities | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Equity securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 77,817 60,055  
Equity securities | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Debt securities      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 40,466 45,934  
Debt securities | Level 1      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 0 0  
Debt securities | Level 2      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets 40,466 45,934  
Debt securities | Level 3      
Defined Benefit Plan Disclosure [Line Items]      
Fair value of plan assets $ 0 $ 0  
v3.24.3
Benefit Plans - Amounts Recognized in Other Comprehensive Income (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Defined Benefit Plan Disclosure [Line Items]      
Net gain $ (105,547) $ (23,812) $ 45,759
Pension Plan      
Defined Benefit Plan Disclosure [Line Items]      
Interest cost 5,936 6,035 4,368
Expected return on plan assets (6,481) (6,518) (8,491)
Amortization of net loss 687 1,195 1,163
Net periodic benefit expense (income) 142 712 (2,960)
Net gain (6,507) (12,024) (2,605)
Amortization of net loss (687) (1,195) (1,163)
Total recognized in other comprehensive income (7,194) (13,219) (3,768)
Total recognized in net periodic pension benefit expense (income) and other comprehensive income $ (7,052) $ (12,507) $ (6,728)
v3.24.3
Benefit Plans - Assumptions Used to Determine Benefit Obligations (Details)
Sep. 28, 2024
Sep. 30, 2023
Pension Plan    
Defined Benefit Plan Disclosure [Line Items]    
Discount rate 4.80% 5.70%
v3.24.3
Benefit Plans - Assumptions Used to Determine Net Benefit Cost (Details) - Pension Plan
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Defined Benefit Plan Disclosure [Line Items]    
Discount rate 5.70% 5.10%
Expected long-term return on plan assets 6.37% 6.37%
v3.24.3
Benefit Plans - Weighted Average Asset Allocations (Details) - Pension Plan
Sep. 28, 2024
Sep. 30, 2023
Defined Benefit Plan Disclosure [Line Items]    
Weighted average allocations of plan assets 100.00% 100.00%
Equity securities    
Defined Benefit Plan Disclosure [Line Items]    
Weighted average allocations of plan assets 66.00% 57.00%
Debt securities    
Defined Benefit Plan Disclosure [Line Items]    
Weighted average allocations of plan assets 34.00% 43.00%
v3.24.3
Benefit Plans - Expected Benefit Payments (Details)
$ in Thousands
Sep. 28, 2024
USD ($)
Retirement Benefits [Abstract]  
2025 $ 8,676
2026 8,701
2027 8,682
2028 8,624
2029 8,547
2030 - 2034 40,614
Total expected future benefit payments $ 83,844
v3.24.3
Equity Investment in Affiliate - Narrative (Details)
$ in Thousands
12 Months Ended
Sep. 28, 2024
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
Oct. 14, 2009
manufacturer
Schedule of Equity Method Investments [Line Items]        
Number of manufacturers before venture | manufacturer       2
Equity investment in affiliate(s) $ 32,089 $ 17,619    
Equity in net income (loss) of non-consolidated affiliate(s) $ 11,839 6,960 $ (4,159)  
Micro Bird Holdings, Inc.        
Schedule of Equity Method Investments [Line Items]        
Equity interest in equity method investment (as a percent) 50.00%      
Equity investment in affiliate(s) $ 24,400 17,600    
Equity in net income (loss) of non-consolidated affiliate(s) $ 12,100 $ 7,000 $ (4,200)  
v3.24.3
Equity Investment in Affiliate - Summarized Financial Results (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Schedule of Equity Method Investments [Line Items]      
Assets, Current $ 323,379 $ 236,063  
Assets 524,894 417,766  
Liabilities, Current 235,973 229,620  
Liabilities, Noncurrent 129,357 148,148  
Net sales 1,347,154 1,132,793 $ 800,637
Segment gross profit 256,156 138,850 36,546
Operating profit 139,331 51,657 (40,700)
Net income (loss) 105,547 23,812 (45,759)
Micro Bird Holdings, Inc.      
Schedule of Equity Method Investments [Line Items]      
Assets, Current 100,974 72,232  
Assets, Noncurrent 25,097 21,220  
Assets 126,071 93,452  
Liabilities, Current 86,788 64,230  
Liabilities, Noncurrent 1,201 2,359  
Liabilities 87,989 66,589  
Net Assets 38,082 26,863  
Net sales 280,943 203,086 128,343
Segment gross profit 54,599 35,453 2,071
Operating profit 32,075 18,310 (10,453)
Net income (loss) $ 21,726 $ 13,244 $ (8,924)
v3.24.3
Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Balance, beginning period $ 39,998    
Balance, ending period 159,564 $ 39,998  
Total AOCL      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Balance, beginning period (31,884) (41,930) $ (44,794)
Other comprehensive income (loss), gross 6,507 12,024 2,605
Amounts reclassified and included in earnings 687 1,195 1,163
Total before taxes 7,194 13,219 3,768
Income taxes (1,726) (3,173) (904)
Balance, ending period (26,416) (31,884) (41,930)
Defined Benefit Pension Plan      
AOCI Attributable to Parent, Net of Tax [Roll Forward]      
Balance, beginning period (31,884) (41,930) (44,794)
Other comprehensive income (loss), gross 6,507 12,024 2,605
Amounts reclassified and included in earnings 687 1,195 1,163
Total before taxes 7,194 13,219 3,768
Income taxes (1,726) (3,173) (904)
Balance, ending period $ (26,416) $ (31,884) $ (41,930)
v3.24.3
Subsequent Events - Narrative (Details) - USD ($)
12 Months Ended
Sep. 13, 2018
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Dec. 12, 2016
Subsequent Event [Line Items]          
Proceeds from lines of credit   $ 36,220,000 $ 45,000,000 $ 135,000,000  
Credit Agreement          
Subsequent Event [Line Items]          
Face amount         $ 235,000,000.0
Debt term 5 years        
Term Loan | Credit Agreement          
Subsequent Event [Line Items]          
Face amount         160,000,000.0
Line of Credit | Credit Agreement | Swingline Credit Facility          
Subsequent Event [Line Items]          
Maximum borrowing capacity         $ 5,000,000.0
v3.24.3
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($)
$ in Thousands
12 Months Ended
Sep. 28, 2024
Sep. 30, 2023
Sep. 30, 2022
Allowance for Doubtful Accounts      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Beginning Balance $ 100 $ 100 $ 100
Charges to Expense/(Income) 0 0 0
Doubtful Accounts Written Off, Net 0 0 0
Ending Balance 100 100 100
Deferred Tax Valuation Allowance      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Beginning Balance 5,822 5,503 3,453
Charges to Expense/(Income) 17 319 2,050
Doubtful Accounts Written Off, Net 0 0 0
Ending Balance $ 5,839 $ 5,822 $ 5,503