What changed in this filing

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Item 1. Financial Statements

2021-05-12 compared with 2021-02-11 · 109 added, 79 removed, 315 unchanged (37% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands of dollars, except for share data) January 2, 2021 October 3, 2020

(in thousands of dollars, except for share data) April 3, 2021 October 3, 2020

Current assets

33 unchanged sentences

Stockholders' deficit

Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 0 shares outstanding at January 2, 2021 and October 3, 2020 $ — $ —

Common stock, $0.0001 par value, 100,000,000 shares authorized, 27,091,808 and 27,048,404 shares outstanding at January 2, 2021 and October 3, 2020, respectively 3 3

Preferred stock, $0.0001 par value, 10,000,000 shares authorized, 0 shares outstanding at April 3, 2021 and October 3, 2020 $ — $ —

Common stock, $0.0001 par value, 100,000,000 shares authorized, 27,153,872 and 27,048,404 shares outstanding at April 3, 2021 and October 3, 2020, respectively 3 3

Additional paid-in capital 91,078 88,910

1 unchanged sentence

Accumulated other comprehensive loss ( 57,690 ) ( 58,397 )

Treasury stock, at cost, 1,782,568 shares at January 2, 2021 and October 3, 2020 ( 50,282 ) ( 50,282 )

Treasury stock, at cost, 1,782,568 shares at April 3, 2021 and October 3, 2020 ( 50,282 ) ( 50,282 )

Total stockholders' deficit $ ( 52,588 ) $ ( 53,230 )

3 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

(in thousands of dollars except for share data) January 2, 2021 January 4, 2020

Three Months Ended Six Months Ended

(in thousands of dollars except for share data) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020

Net sales $ 164,698 $ 255,412 $ 295,132 $ 408,629

3 unchanged sentences

Selling, general and administrative expenses 17,361 19,858 32,051 40,353

Operating (loss) profit $ ( 222 ) $ 805

Operating profit $ 1,132 $ 4,311 $ 910 $ 5,116

Interest expense ( 2,334 ) ( 5,658 ) ( 4,264 ) ( 7,555 )

4 unchanged sentences

Income tax benefit 483 817 1,004 1,143

Equity in net (loss) income of non-consolidated affiliate ( 29 ) 169

Equity in net loss of non-consolidated affiliate ( 322 ) ( 289 ) ( 351 ) ( 120 )

Net loss $ ( 619 ) $ ( 639 ) $ ( 2,233 ) $ ( 1,042 )

7 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

Three Months Ended

(in thousands of dollars) January 2, 2021 January 4, 2020

Three Months Ended Six Months Ended

(in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020

Net loss $ ( 619 ) $ ( 639 ) $ ( 2,233 ) $ ( 1,042 )

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

(in thousands of dollars) January 2, 2021 January 4, 2020

Six Months Ended

(in thousands of dollars) April 3, 2021 April 4, 2020

Cash flows from operating activities

4 unchanged sentences

Share-based compensation 1,595 2,297

Equity in net loss (income) of non-consolidated affiliate 29 ( 169 )

Gain on disposal of fixed assets ( 1 ) ( 121 )

Equity in net loss of non-consolidated affiliate 351 120

Loss (gain) on disposal of fixed assets 21 ( 121 )

Deferred taxes ( 463 ) ( 291 )

18 unchanged sentences

Cash paid for debt costs ( 2,476 ) —

Cash paid for employee taxes on vested restricted shares and stock option exercises ( 444 ) ( 806 )

Net cash received (paid) for exercises and employee taxes on vested restricted shares and stock option exercises 611 ( 3,313 )

Proceeds from exercises of warrants — 4,240

9 unchanged sentences

Changes in accounts payable for capital additions to property, plant and equipment $ 409 $ ( 4,041 )

Employee taxes payable on vested restricted shares and stock option exercises — ( 572 )

Cashless exercise of stock options — 5,246

Right-of-use assets obtained in exchange for finance lease obligations — 1,942

Right-of-use assets obtained in exchange for operating lease obligations 107 —

5 unchanged sentences

Shares Par Value Additional Paid-In-Capital Shares Amount Accumulated Other Comprehensive Loss Accumulated Deficit Shares Amount Total Stockholders' Deficit

Balance, October 3, 2020 27,048,404 $ 3 $ 88,910 — $ — $ ( 58,397 ) $ ( 33,464 ) 1,782,568 $ ( 50,282 ) $ ( 53,230 )

Balance, January 2, 2021 27,091,808 $ 3 $ 89,171 — $ — $ ( 58,044 ) $ ( 35,078 ) 1,782,568 $ ( 50,282 ) $ ( 54,230 )

Stock option activity 62,064 — 1,055 — — — — — — 1,055

Share-based compensation expense — — 852 — — — — — — 852

Net loss — — — — — — ( 619 ) — — ( 619 )

Other comprehensive income, net of tax — — — — — 354 — — — 354

Balance, April 3, 2021 27,153,872 $ 3 $ 91,078 — $ — $ ( 57,690 ) $ ( 35,697 ) 1,782,568 $ ( 50,282 ) $ ( 52,588 )

Balance, January 4, 2020 26,511,641 $ 3 $ 84,302 — $ — $ ( 55,827 ) $ ( 46,052 ) 1,782,568 $ ( 50,282 ) $ ( 67,856 )

Warrant exercises 336,391 — 3,868 — — — — — — 3,868

4 unchanged sentences

Other comprehensive income, net of tax — — — — — 326 — — — 326

Balance, January 2, 2021 27,091,808 $ 3 $ 89,171 — $ — $ ( 58,044 ) $ ( 35,078 ) 1,782,568 $ ( 50,282 ) $ ( 54,230 )

Balance, April 4, 2020 27,027,272 $ 3 $ 87,408 — $ — $ ( 55,501 ) $ ( 46,691 ) 1,782,568 $ ( 50,282 ) $ ( 65,063 )

Six Months Ended

(in thousands of dollars, except for share data) Common Stock Convertible Preferred Stock Treasury Stock

Shares Par Value Additional Paid-In-Capital Shares Amount Accumulated Other Comprehensive Loss Accumulated Deficit Shares Amount Total Stockholders' Deficit

Balance, October 3, 2020 27,048,404 $ 3 $ 88,910 — $ — $ ( 58,397 ) $ ( 33,464 ) 1,782,568 $ ( 50,282 ) $ ( 53,230 )

Restricted stock activity 36,404 — ( 518 ) — — — — — — ( 518 )

Stock option activity 69,064 — 1,128 — — — — — — 1,128

Share-based compensation expense — — 1,558 — — — — — — 1,558

Net loss — — — — — — ( 2,233 ) — — ( 2,233 )

Other comprehensive income, net of tax — — — — — 707 — — — 707

Balance, April 3, 2021 27,153,872 $ 3 $ 91,078 — $ — $ ( 57,690 ) $ ( 35,697 ) 1,782,568 $ ( 50,282 ) $ ( 52,588 )

Balance, September 28, 2019 26,476,336 $ 3 $ 84,271 — $ — $ ( 56,154 ) $ ( 45,649 ) 1,782,568 $ ( 50,282 ) $ ( 67,811 )

5 unchanged sentences

Other comprehensive income, net of tax — — — — — 653 — — — 653

Balance, January 4, 2020 26,511,641 $ 3 $ 84,302 — $ — $ ( 55,827 ) $ ( 46,052 ) 1,782,568 $ ( 50,282 ) $ ( 67,856 )

Balance, April 4, 2020 27,027,272 $ 3 $ 87,408 — $ — $ ( 55,501 ) $ ( 46,691 ) 1,782,568 $ ( 50,282 ) $ ( 65,063 )

The accompanying notes are an integral part of these consolidated financial statements.

6 unchanged sentences

We are headquartered in Macon, Georgia.

References in these notes to financial statements to “Blue Bird”, the “Company,” “we,” “our,” or “us” refer to Blue Bird Corporation and its wholly-owned subsidiaries, unless the context specifically indicates otherwise.

Beginning at the end of our second quarter of fiscal year 2020 and continuing through the first quarter of fiscal year 2021, the novel coronavirus known as "COVID-19" spread throughout the world, resulting in a global pandemic.

The pandemic significantly impacted our financial results for the second half of fiscal year 2020, which continued into the first quarter of fiscal year 2021, causing, among other matters, lower customer orders for both buses and bus parts, supply disruptions, higher rates of absenteeism among our hourly production workforce and a temporary shutdown of manufacturing in April 2020.

References in these notes to financial statements to “Blue Bird,” the “Company,” “we,” “our,” or “us” relate to Blue Bird Corporation and its wholly-owned subsidiaries, unless the context specifically indicates otherwise.

Beginning at the end of our second quarter of fiscal year 2020 and continuing through the second quarter of fiscal year 2021, the novel coronavirus known as "COVID-19" spread throughout the world, resulting in a global pandemic.

The pandemic significantly impacted our financial results for the second half of fiscal year 2020, which continued into the first half of fiscal year 2021, causing, among other matters, lower customer orders for both buses and bus parts, supply disruptions, higher rates of absenteeism among our hourly production workforce and a temporary shutdown of manufacturing in April 2020 and March 2021.

The continuing development and fluidity of the pandemic precludes any prediction as to the ultimate severity of the adverse impacts on our business, financial condition, results of operations, and liquidity.

5 unchanged sentences

The Company’s fiscal year ends on the Saturday closest to September 30 with its quarters consisting of thirteen weeks in most years.

Fiscal year 2021 consists of 52 weeks while fiscal year 2020 consisted of 53 weeks.

The first quarters of fiscal years 2021 and 2020 included 13 and 14 weeks, respectively.

Fiscal year 2021, which ends on October 2, 2021, consists of 52 weeks while fiscal year 2020, which ended on October 3, 2020, consisted of 53 weeks.

The second quarters of fiscal years 2021 and 2020 both included 13 weeks.

The six month periods in fiscal years 2021 and 2020 included 26 and 27 weeks, respectively.

In the opinion of management, all adjustments considered necessary for a fair presentation of financial results have been made.

17 unchanged sentences

The Company’s significant accounting policies are described in the Company’s 2020 Form 10-K, filed with the SEC on December 17, 2020.

Our senior management has reviewed these significant accounting policies and related disclosures and determined that there were no significant changes in our critical accounting policies in the three months ended January 2, 2021.

Recently Adopted Accounting Standards

7 unchanged sentences

ASU 2020-04 On March 12, 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting , providing temporary guidance to ease the potential burden in accounting for reference rate reform primarily resulting from the discontinuation of LIBOR, which is currently expected to occur on June 30, 2023 for legacy contracts.

Facilitation of the Effects of Reference Rate Reform on Financial Reporting , providing temporary guidance to ease the potential burden in accounting for reference rate reform primarily resulting from the discontinuation of LIBOR (defined below), which was initially expected to occur on December 31, 2021.

The amendments in ASU 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued.

2 unchanged sentences

The ASU permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, computing variation margin settlements, and calculating price alignment interest in connection with reference rate reform activities under way in global financial markets.

An entity may elect to apply the amendments prospectively from March 12, 2020 through December 31, 2022.

The Company’s debt and derivative agreements currently reference LIBOR.

Contract language is expected to be incorporated into these agreements to address the transition to an alternative reference rate.

The Company is currently evaluating the impact that these ASUs may have on its consolidated financial statements.

The above amendments are effective for all entities from March 12, 2020 through December 31, 2022.

An entity may elect to apply the amendments to contract modifications on a (i) full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or (ii) prospective basis from any date within an interim period that includes or is subsequent to March 12, 2020 through the date that the interim financial statements are issued or available to be issued.

On March 5, 2021, the Intercontinental Exchange, Inc.

("ICE") Benchmark Administration ("IBA"), the administrator of the United States Dollar London Interbank Offering Rate ("LIBOR"), issued a statement, following the completion of a formal consultation process, reaffirming the preliminary announcement it made on November 30, 2020, to cease publication of (i) 1 week and 2 month LIBOR subsequent to December 31, 2021 and (ii) the overnight and 1, 3, 6 and 12 month LIBOR tenors subsequent to June 30, 2023.

The IBA’s statement regarding such cessation dates primarily resulted from a majority of LIBOR panel banks communicating to the IBA that they would be unwilling to continue contributing to the relevant LIBOR settings after such dates.

As a result, the IBA determined that it would be unable to publish the relevant LIBOR settings on a representative basis after such dates.

The United Kingdom Financial Conduct Authority ("FCA"), which regulates the IBA, confirmed that, based on information it received from LIBOR panel banks, it does not expect that any LIBOR settings will become unrepresentative before the announced cessation dates summarized above.

Currently, the Company’s interest rate collar, which is not designated in a hedge accounting relationship, and Amended Credit Agreement (defined below) are the only contracts that reference an interest rate index (i.e., 3 month LIBOR) that is subject to the reference rate reform guidance included in the above amendments.

While the termination date of the interest rate collar, September 30, 2022, occurs prior to the July 1, 2023 date on which the IBA will no longer publish 3 month LIBOR, the Amended Credit Agreement matures on September 13, 2023, approximately 2.5 months subsequent to such cessation date.

However, as management does not currently forecast that the Company will have sufficient cash to fund the term loan borrowings that are expected to be outstanding under the terms of the Amended Credit Agreement upon maturity, it is expecting to refinance such borrowings prior to maturity, with such refinancing likely to occur before the July 1, 2023 LIBOR cessation date.

Therefore, it is highly likely that neither the interest

rate collar nor Amended Credit Agreement will be modified to reflect the discontinuation of 3 month LIBOR effective July 1, 2023 and accordingly, the Company will not be required to decide whether or not to elect to adopt such amendments prior to or on December 31, 2022 (i.e., the last effective date for adopting the amendments).

However, to the extent that either or both of the contracts are modified prior to December 31, 2022, the Company plans to adopt the amendments on a prospective basis by adjusting the derivative fair value and/or debt effective interest rate, as applicable, neither of which is expected to have a material impact on the consolidated financial statements.

Supplemental Financial Information

The following table presents the components of inventories at the dates indicated:

(in thousands of dollars) January 2, 2021 October 3, 2020

(in thousands of dollars) April 3, 2021 October 3, 2020

Raw materials $ 59,663 $ 43,272

4 unchanged sentences

The following table reflects activity in accrued warranty cost (current and long-term portions combined) for the periods presented:

Three Months Ended

(in thousands of dollars) January 2, 2021 January 4, 2020

Three Months Ended Six Months Ended

(in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020

Balance at beginning of period $ 19,707 $ 21,731 $ 21,374 $ 22,343

4 unchanged sentences

The following table reflects activity in deferred warranty income (current and long-term portions combined), for the sale of extended warranties of two to five years , for the periods presented:

Three Months Ended

(in thousands of dollars) January 2, 2021 January 4, 2020

Three Months Ended Six Months Ended

(in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020

Balance at beginning of period $ 21,732 $ 22,744 $ 22,588 $ 24,045

6 unchanged sentences

The following table reflects our total accrued self-insurance liability, comprised of workers' compensation and health insurance related claims, at the dates indicated:

(in thousands of dollars) January 2, 2021 October 3, 2020

(in thousands of dollars) April 3, 2021 October 3, 2020

Current portion $ 2,947 $ 2,993

3 unchanged sentences

Shipping and Handling Revenues

Shipping and handling revenues were $ 2.7 million and $ 3.5 million for the three months ended January 2, 2021 and January 4, 2020, respectively.

The related cost of goods sold was $ 2.4 million and $ 3.1 million for the three months ended January 2, 2021 and January 4, 2020, respectively.

Shipping and handling revenues were $ 3.2 million and $ 4.1 million for the three months ended April 3, 2021 and April 4, 2020, respectively, and $ 5.9 million and $ 7.6 million for the six months ended April 3, 2021 and April 4, 2020, respectively.

The related cost of goods sold was $ 2.7 million and $ 3.5 million for the three months ended April 3, 2021 and April 4, 2020, respectively, and $ 5.1 million and $ 6.6 million for the six months ended April 3, 2021 and April 4, 2020, respectively.

Pension Expense

Components of net periodic pension benefit cost were as follows for the periods presented:

Three Months Ended

(in thousands of dollars) January 2, 2021 January 4, 2020

Three Months Ended Six Months Ended

(in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020

Interest cost $ 1,057 $ 1,237 $ 2,114 $ 2,474

11 unchanged sentences

No payments or receipts are exchanged on the interest rate collar contract unless interest rates rise above or fall below the contracted ceiling or floor rates.

During the three-months ended January 2, 2021, the three-month LIBOR rate fell below the established floor, which required a $ 0.5 million cash payment to the counterparty.

Additionally, $ 0.5 million was paid in the first quarter of fiscal 2021 for counterparty payments accrued in the fourth quarter of fiscal 2020.

During the six months ended April 3, 2021, the three month LIBOR rate fell below the established floor, which required $ 1.0 million in total cash payments to the counterparty.

Additionally, $ 0.5 million was paid in the first quarter of fiscal year 2021 for amounts owed to the counterparty that were accrued in the fourth quarter of fiscal 2020.

Changes in the interest rate collar fair value are recorded in interest expense as the collar does not qualify for hedge accounting.

At January 2, 2021, the fair value of the interest rate collar contract was $( 3.4 ) million and is included in "other current liabilities" on the Condensed Consolidated Balance Sheets.

At April 3, 2021, the fair value of the interest rate collar contract was $( 2.9 ) million and is included in other current liabilities on the Condensed Consolidated Balance Sheets.

The fair value of the interest rate collar is a Level 2 fair value measurement, based on quoted prices of similar items in active markets.

17 unchanged sentences

Term debt consisted of the following at the dates indicated:

(in thousands of dollars) January 2, 2021 October 3, 2020

(in thousands of dollars) April 3, 2021 October 3, 2020

2023 term loan, net of deferred financing costs of $2,592 and $2,246, respectively $ 168,808 $ 174,104

4 unchanged sentences

If measured at fair value in the financial statements, the term loans would be classified as Level 2 in the fair value hierarchy.

At January 2, 2021 and October 3, 2020, $ 173.9 million and $ 176.4 million, respectively, were outstanding on the term loans.

At January 2, 2021 and October 3, 2020, the stated interest rates on the term loans were 4.0 % and 3.5 %, respectively.

At January 2, 2021 and October 3, 2020, the weighted-average annual effective interest rates for the term loans were 5.4 % and 4.1 %, respectively, which includes amortization of the deferred financing costs.

At January 2, 2021, $ 6.9 million of Letters of Credit were outstanding, of which $ 2.7 million reduces the availability on the revolving line of credit.

At April 3, 2021 and October 3, 2020, $ 171.4 million and $ 176.4 million, respectively, were outstanding on the term loans.

At April 3, 2021 and October 3, 2020, the stated interest rates on the term loans were 3.8 % and 3.5 %, respectively.

At April 3, 2021 and October 3, 2020, the weighted-average annual effective interest rates for the term loans were 6.2 % and 4.1 %, respectively, which includes amortization of the deferred financing costs.

At April 3, 2021, $ 6.9 million of Letters of Credit were outstanding, of which $ 2.7 million reduces the availability on the revolving line of credit.

No borrowings were outstanding on the Revolving Credit Facility;

therefore, the Company would have been able to borrow $ 97.3 million on the revolving line of credit.

Interest expense on all indebtedness was $ 1.9 million and $ 1.9 million for the three months ended January 2, 2021 and January 4, 2020, respectively.

Interest expense on all indebtedness was $ 2.3 million and $ 5.7 million for the three months ended April 3, 2021 and April 4, 2020, respectively, and $ 4.3 million and $ 7.6 million for the six months ended April 3, 2021 and April 4, 2020, respectively.

The schedule of remaining principal payments through maturity for total debt is as follows:

7 unchanged sentences

While the Act has broad income tax implications for many companies stemming from COVID-19 relief and various tax extenders, it did not have a material impact on our reported income tax accounts.

The effective tax rate for the three-month period ended January 2, 2021 was 24.7 %, which differed from the statutory federal income tax rate of 21 %.

The difference is mainly due to impacts from state taxes.

The effective tax rate for the three-month period ended January 4, 2020 was 36.3 %, which differed from the statutory federal tax rate of 21 %.

The difference is mainly due to normal tax rate items, such as federal and state tax credits (net of valuation allowance), which were partially offset by net non-deductible compensation expenses and other tax adjustments.

The effective tax rate for the three months ended April 3, 2021 was 61.9 %, which differed from the statutory federal income tax rate of 21 %.

The difference is mainly due to discrete period tax benefit from share-based compensation expenses, but also due to normal tax rate items, including impacts from state taxes.

The effective tax rate for the three months ended April 4, 2020 was 70.0 %, which differed from the statutory federal tax rate of 21 %.

The difference is mainly due to discrete period tax benefit from share-based compensation expenses, but also due to normal tax rate items, such as the benefit from federal and state tax credits (net of valuation allowance), which were partially offset by net non-deductible compensation expenses and other tax adjustments.

The effective tax rate for the six months ended April 3, 2021 was 34.8 %, which differed from the statutory federal income tax rate of 21 %.

The difference is mainly due to discrete period tax benefit from share-based compensation expenses, but also due to normal tax rate items, including impacts from state taxes.

The effective tax rate for the six months ended April 4, 2020 was 55.4 %, which differed from the statutory federal tax rate of 21 %.

Guarantees, Commitments and Contingencies

At January 2, 2021, the Company had a number of product liability and other cases pending.

At April 3, 2021, the Company had a number of product liability and other cases pending.

Management believes that, considering the Company’s insurance coverage and its intention to vigorously defend its positions, the ultimate resolution of these matters will not have a material adverse effect on the Company’s financial statements.

Environmental

The Company is subject to a variety of environmental regulations relating to the use, storage, discharge and disposal of hazardous materials used in its manufacturing processes.

The Company is subject to a variety of environmental regulations relating to the use, storage, discharge and disposal of hazardous ma erials used in its manufacturing processes.

Failure by the Company to comply with present and future regulations could subject it to future liabilities.

2 unchanged sentences

In the ordinary course of business, we may provide guarantees for certain transactions entered into by our dealers.

At January 2, 2021, we had a $ 3.0 million guarantee outstanding which relates to a guarantee of dealer indebtedness for a term loan with remaining maturity up to 2.0 years.

At April 3, 2021, we had a $ 3.0 million guarantee outstanding which relates to a guarantee of dealer indebtedness for a term loan with remaining maturity up to 1.8 years.

The $ 3.0 million represents the estimated maximum amount we would be required to pay upon default of all guaranteed indebtedness, and we believe the likelihood of required performance to be remote.

At January 2, 2021, $ 0.2 million was included in other current liabilities on our Condensed Consolidated Balance Sheets for the estimated fair value of the guarantee.

At April 3, 2021, $ 0.2 million was included in other current liabilities on our Condensed Consolidated Balance Sheets for the estimated fair value of the guarantee.

Segment Information

3 unchanged sentences

The tables below present segment net sales and gross profit for the periods presented:

Three Months Ended

(in thousands of dollars) January 2, 2021 January 4, 2020

Three Months Ended Six Months Ended

(in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020

Bus (1) $ 150,307 $ 238,697 $ 268,141 $ 373,469

1 unchanged sentence

Segment net sales $ 164,698 $ 255,412 $ 295,132 $ 408,629

(1) Parts segment revenue includes $ 0.8 million and $ 0.6 million for the three months ended January 2, 2021 and January 4, 2020, respectively, related to inter-segment sales of parts that was eliminated by the Bus segment upon consolidation.

Three Months Ended

(in thousands of dollars) January 2, 2021 January 4, 2020

(1) Parts segment revenue includes $ 1.2 million and $ 0.9 million for the three months ended April 3, 2021 and April 4, 2020, respectively, and $ 2.0 million and $ 1.5 million for the six months ended April 3, 2021 and April 4, 2020, respectively, related to inter-segment sales of parts that was eliminated by the Bus segment upon consolidation.

Three Months Ended Six Months Ended

(in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020

Bus $ 13,084 $ 17,938 $ 22,794 $ 32,805

2 unchanged sentences

The following table is a reconciliation of segment gross profit to consolidated loss before income taxes for the periods presented:

Three Months Ended

(in thousands of dollars) January 2, 2021 January 4, 2020

Three Months Ended Six Months Ended

(in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020

Segment gross profit $ 18,493 $ 24,169 $ 32,961 $ 45,469

6 unchanged sentences

Sales are attributable to geographic areas based on customer location and were as follows for the periods presented:

Three Months Ended

(in thousands of dollars) January 2, 2021 January 4, 2020

Three Months Ended Six Months Ended

(in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020

United States $ 137,359 $ 232,477 $ 256,436 $ 368,743

3 unchanged sentences

The following table disaggregates revenue by product category for the periods presented:

Three Months Ended

(in thousands of dollars) January 2, 2021 January 4, 2020

Three Months Ended Six Months Ended

(in thousands of dollars) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020

Diesel buses $ 76,115 $ 113,649 $ 135,825 $ 190,399

Alternative fuel buses (1) 52,301 51,734

Alternative power buses (1) 65,955 113,057 118,256 164,791

Other (2) 8,585 12,505 14,745 19,348

1 unchanged sentence

Net sales $ 164,698 $ 255,412 $ 295,132 $ 408,629

(1) Includes buses sold with any fuel source other than diesel (e.g., gasoline, propane, compressed natural gas ("CNG") or electric).

(1) Includes buses sold with any power source other than diesel (e.g., gasoline, propane, compressed natural gas "CNG", electric).

(2) Includes shipping and handling revenue, extended warranty income, surcharges and chassis and bus shell sales .

1 unchanged sentence

The following table presents the earnings per share computation for the periods presented:

Three Months Ended

(in thousands except for share data) January 2, 2021 January 4, 2020

Three Months Ended Six Months Ended

(in thousands except for share data) April 3, 2021 April 4, 2020 April 3, 2021 April 4, 2020

Net loss $ ( 619 ) $ ( 639 ) $ ( 2,233 ) $ ( 1,042 )

5 unchanged sentences

Diluted loss per share $ ( 0.02 ) $ ( 0.02 ) $ ( 0.08 ) $ ( 0.04 )

(1) Potentially dilutive securities representing 0.8 million and 1.3 million shares of common stock were excluded from the computation of diluted earnings per share for the three months ended January 2, 2021 and January 4, 2020, respectively, because their effect would have been antidilutive.

(1) Potentially dilutive securities representing 0.7 million and 0.5 million shares of common stock were excluded from the computation of diluted earnings per share for April 3, 2021 and April 4, 2020, respectively, as their effect would have been antidilutive.

Accumulated Other Comprehensive Loss

The following table provides information on changes in accumulated other comprehensive loss ("AOCL") for the periods presented:

Three Months Ended

(in thousands of dollars) Defined Benefit Pension Plan Total AOCL

January 2, 2021

Three Months Ended Six Months Ended

(in thousands of dollars) Defined Benefit Pension Plan Total AOCL Defined Benefit Pension Plan Total AOCL

April 3, 2021

Beginning Balance $ ( 58,044 ) $ ( 58,044 ) $ ( 58,397 ) $ ( 58,397 )

2 unchanged sentences

Income taxes ( 112 ) ( 112 ) ( 224 ) ( 224 )

Ending Balance January 2, 2021 $ ( 58,044 ) $ ( 58,044 )

January 4, 2020

Ending Balance April 3, 2021 $ ( 57,690 ) $ ( 57,690 ) $ ( 57,690 ) $ ( 57,690 )

April 4, 2020

Beginning Balance $ ( 55,827 ) $ ( 55,827 ) $ ( 56,154 ) $ ( 56,154 )

2 unchanged sentences

Income taxes ( 103 ) ( 103 ) ( 206 ) ( 206 )

Ending Balance January 4, 2020 $ ( 55,827 ) $ ( 55,827 )

Ending Balance April 4, 2020 $ ( 55,501 ) $ ( 55,501 ) $ ( 55,501 ) $ ( 55,501 )

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements