##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 FOR QUARTER ENDED October 31, 2007
    
    COMMISSION FILE NUMBER 1-9235
 THOR INDUSTRIES, INC.
 
  Delaware
    
    93-0768752(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)
 419 West Pike Street, Jackson Center, OH
    
    45334-0629(Address of principal executive offices)
    
    (Zip Code)
 Registrants telephone number, including area code: 937) 596-6849
  þ o
  þ o o
  o þ
  Class
    
    Outstanding at 10/31/2007Common stock, par value
$.10 per share
    
    55,870,663 shares




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TABLE OF CONTENTS  PART I    Financial Information Unless otherwise indicated, all amounts presented in thousands of dollars except unit, share and per share data.ITEM 1. Financial StatementsITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 3. Quantitative and Qualitative Disclosures About Market RiskITEM 4. Controls and ProceduresPART II    Other InformationITEM 1. LEGAL PROCEEDINGSITEM 6. ExhibitsSIGNATURESEX-31.1EX-31.2EX-32.1EX-32.2    Table of Contents  
 PART I    Financial Information  Unless otherwise indicated, all amounts presented in thousands of dollars except unit, share and
per share data.
 
 ITEM 1. Financial Statements
 THOR INDUSTRIES, INC. AND SUBSIDIARIES  CONDENSED CONSOLIDATED BALANCE SHEETS
 October 31, 2007
    
    
    July 31, 2007ASSETSCurrent assets:Cash and cash equivalents
    
    $
    104,451
    
    
    $
    171,889Investments  short term
    
    
    160,550
    
    
    
    174,575Accounts receivable:Trade
    
    
    169,412
    
    
    
    171,596Other
    
    
    9,805
    
    
    
    5,799Inventories
    
    
    187,879
    
    
    
    168,980Deferred income taxes and other
    
    
    31,079
    
    
    
    12,689Total current assets
    
    
    663,176
    
    
    
    705,528Property:Land
    
    
    21,816
    
    
    
    21,795Buildings and improvements
    
    
    135,569
    
    
    
    134,352Machinery and equipment
    
    
    66,786
    
    
    
    64,572Total cost
    
    
    224,171
    
    
    
    220,719Accumulated depreciation
    
    
    67,080
    
    
    
    63,477Property, net
    
    
    157,091
    
    
    
    157,242Investment in Joint ventures
    
    
    3,119
    
    
    
    2,671Other assets:Goodwill
    
    
    165,663
    
    
    
    165,663Non-compete agreements
    
    
    1,693
    
    
    
    1,906Trademarks
    
    
    13,900
    
    
    
    13,900Other
    
    
    13,429
    
    
    
    12,387Total other assets
    
    
    194,685
    
    
    
    193,856TOTAL ASSETS
    
    $
    1,018,071
    
    
    $
    1,059,297LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    127,487
    
    
    $
    123,433Accrued liabilities:Taxes
    
    
    30,763
    
    
    
    17,991Compensation and related items
    
    
    34,359
    
    
    
    39,242Product warranties
    
    
    66,011
    
    
    
    64,310Promotions and rebates
    
    
    16,020
    
    
    
    11,697Product/property liability and related
    
    
    11,100
    
    
    
    11,691Other
    
    
    9,988
    
    
    
    8,835Total current liabilities
    
    
    295,728
    
    
    
    277,199Long Term Liabilities:Unrecognized tax benefits
    
    
    24,673
    
    
    
    Other
    
    
    21,547
    
    
    
    15,767Total long term liabilities
    
    
    46,220
    
    
    
    15,767Stockholders equity:Common stock  authorized 250,000,000 shares;
issued 57,312,263 shares @ 10/31/07 and 57,222,404
shares @ 7/31/07; par value of $.10 per share
    
    
    5,731
    
    
    
    5,722Additional paid-in capital
    
    
    92,632
    
    
    
    90,247Retained earnings
    
    
    633,108
    
    
    
    727,729Accumulated other comprehensive income
    
    
    4,775
    
    
    
    2,756Less Treasury shares of 1,441,600 @ 10/31/07 & 7/31/07
    
    
    (60,123
    )
    
    
    (60,123
    )Total stockholders equity
    
    
    676,123
    
    
    
    766,331TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    1,018,071
    
    
    $
    1,059,297
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THOR INDUSTRIES, INC. AND SUBSIDIARIES
STATEMENTS OF CONDENSED CONSOLIDATED INCOME  FOR THE THREE MONTHS ENDED OCTOBER 31, 2007 AND 2006
 Three Months Ended October 312007
    
    
    2006Net sales
    
    $
    763,736
    
    
    $
    727,716Cost of products sold
    
    
    662,461
    
    
    
    638,548Gross profit
    
    
    101,275
    
    
    
    89,168Selling, general and
administrative expenses
    
    
    45,410
    
    
    
    43,445Interest income
    
    
    4,196
    
    
    
    2,910Interest expense
    
    
    360
    
    
    
    187Other income
    
    
    779
    
    
    
    550Income before income taxes
    
    
    60,480
    
    
    
    48,996Provision for income taxes
    
    
    22,271
    
    
    
    18,399Net income
    
    $
    38,209
    
    
    $
    30,597Average common shares outstanding:Basic
    
    
    55,757,338
    
    
    
    55,613,302Diluted
    
    
    55,966,614
    
    
    
    55,904,797Earnings per common share:Basic
    
    $
    .69
    
    
    $
    .55Diluted
    
    $
    .68
    
    
    $
    .55Regular dividends declared per common share:
    
    $
    .07
    
    
    $
    .07Special dividends declared per common share:
    
    $
    2.00
    
    
    $
    1.00Regular dividends paid per common share:
    
    $
    .07
    
    
    $
    .07Special dividends paid per common share:
    
    $
    2.00
    
    
    $
    1.00
  2




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THOR INDUSTRIES, INC. AND SUBSIDIARIES
STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS  FOR THE THREE MONTHS ENDED OCTOBER 31, 2007 AND 2006
 Three Months Ended October 312007
    
    
    2006Cash flows from operating activities:Net income
    
    $
    38,209
    
    
    $
    30,597Adjustments to reconcile net income to net cash (used in)
provided by operating activities:Depreciation
    
    
    3,353
    
    
    
    3,226Amortization
    
    
    213
    
    
    
    237Deferred income taxes
    
    
    (7,026
    )
    
    
    (7,700
    )Loss on disposition of assets
    
    
    3
    
    
    
    103Loss on disposition of trading investments
    
    
    
    
    
    
    104Stock based compensation
    
    
    84
    
    
    
    160Changes in non cash assets and liabilities, net of effect
from acquisitions:Proceeds from disposition of trading investments
    
    
    
    
    
    
    68,133Accounts receivable
    
    
    (1,822
    )
    
    
    34,480Inventories
    
    
    (18,899
    )
    
    
    (23,999
    )Prepaids and other
    
    
    (12,854
    )
    
    
    (11,783
    )Accounts payable
    
    
    4,029
    
    
    
    (40,752
    )Accrued liabilities
    
    
    22,071
    
    
    
    20,840Other liabilities
    
    
    5,677
    
    
    
    943Net cash provided by operating activities
    
    
    33,038
    
    
    
    74,589Cash flows from investing activities:Purchase of property, plant & equipment
    
    
    (3,087
    )
    
    
    (4,076
    )Proceeds from disposition of assets
    
    
    10
    
    
    
    171Purchases of available for sale investments
    
    
    (15,300
    )
    
    
    (186,125
    )Proceeds from sale of available for sale investments
    
    
    29,325
    
    
    
    75,567Net cash provided by (used in) investing activities
    
    
    10,948
    
    
    
    (114,463
    )Cash flows from financing activities:Cash dividends
    
    
    (115,601
    )
    
    
    (59,616
    )Purchase of common stock held as treasury shares
    
    
    
    
    
    
    (1,630
    )Proceeds from issuance of common stock
    
    
    2,158
    
    
    
    845Net cash used in financing activities
    
    
    (113,443
    )
    
    
    (60,401
    )Effect of exchange rate changes on cash
    
    
    2,019
    
    
    
    102Net (decrease) in cash and equivalents
    
    
    (67,438
    )
    
    
    (100,173
    )Cash and equivalents, beginning of period
    
    
    171,889
    
    
    
    196,136Cash and equivalents, end of period
    
    $
    104,451
    
    
    $
    95,963Supplemental cash flow information:Income taxes paid
    
    $
    9,495
    
    
    $
    106Interest paid
    
    $
    360
    
    
    $
    187Non cash transactions:Capital expenditures in accounts payable
    
    $
    228
    
    
    $
    129
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 1.
    
    The July 31, 2007 amounts are derived from the annual audited financial statements. The
interim financial statements are unaudited. In the opinion of management, all adjustments
(which consist of normal recurring adjustments) necessary to present fairly the financial
position, results of operations and change in cash flows for the interim periods presented
have been made. These financial statements should be read in conjunction with the Companys
Annual Report on Form 10-K for the year ended July 31, 2007. The results of operations for the
three months ended October 31, 2007 are not necessarily indicative of the results for the full
year.2.
    
    Major classifications of inventories are:
 October 31, 2007
    
    
    July 31, 2007Raw materials
    
    $
    96,048
    
    
    $
    87,245Chassis
    
    
    40,845
    
    
    
    42,528Work in process
    
    
    53,920
    
    
    
    52,102Finished goods
    
    
    23,226
    
    
    
    12,326Total
    
    
    214,039
    
    
    
    194,201Less excess of FIFO costs
over LIFO costs
    
    
    26,160
    
    
    
    25,221Total inventories
    
    $
    187,879
    
    
    $
    168,980
 3.
    
    Earnings Per Share
 Three Months
    
    Three MonthsEnded
    
    EndedOctober 31, 2007
    
    October 31, 2006Weighted average shares
outstanding for basic
earnings per share
    
    
    55,757,338
    
    
    
    55,613,302Stock options and
restricted stock
    
    
    209,276
    
    
    
    291,495Total  For diluted shares
    
    
    55,966,614
    
    
    
    55,904,797
 4.
    
    Comprehensive Income
 Three Months
    
    
    Three MonthsEnded
    
    
    EndedOctober 31, 2007
    
    
    October 31, 2006Net income
    
    $
    38,209
    
    
    $
    30,597Foreign currency translation adj.
    
    
    2,019
    
    
    
    102Comprehensive income
    
    $
    40,228
    
    
    $
    30,699
 5.
    
    Segment InformationThe Company has three reportable segments: (1) towable recreation vehicles, (2) motorized
recreation vehicles, and (3) buses. The towable recreation vehicle segment consists of product
lines from the following operating companies that have been aggregated: Airstream,
Breckenridge, CrossRoads, Dutchmen, General Coach Hensall and Oliver, Keystone, Komfort and
Thor California. The motorized recreation vehicle segment consists of product lines from the
following operating companies that have been aggregated: Airstream, Damon, Four Winds and
Oliver. The bus segment consists of the following operating companies that have been
aggregated: Champion Bus, ElDorado California, ElDorado Kansas and Goshen Coach.
 4




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Three Months
    
    
    Three MonthsEnded
    
    
    EndedOctober 31, 2007
    
    
    October 31, 2006Net Sales:Recreation vehicles:Towables
    
    $
    523,711
    
    
    $
    499,955Motorized
    
    
    140,500
    
    
    
    135,923Total recreation vehicles
    
    
    664,211
    
    
    
    635,878Buses
    
    
    99,525
    
    
    
    91,838Total
    
    $
    763,736
    
    
    $
    727,716
 Three Months
    
    
    Three MonthsEnded
    
    
    EndedOctober 31, 2007
    
    
    October 31, 2006Income Before Income Taxes:Recreation vehicles:Towables
    
    $
    50,812
    
    
    $
    40,400Motorized
    
    
    6,853
    
    
    
    6,068Total recreation vehicles
    
    
    57,665
    
    
    
    46,468Buses
    
    
    4,139
    
    
    
    3,020Corporate
    
    
    (1,324
    )
    
    
    (492
    )Total
    
    $
    60,480
    
    
    $
    48,996
 October 31, 2007
    
    
    July 31, 2007Identifiable Assets:Recreation vehicles:Towables
    
    $
    479,407
    
    
    $
    449,276Motorized
    
    
    145,823
    
    
    
    147,598Total recreation vehicles
    
    
    625,230
    
    
    
    596,874Buses
    
    
    98,410
    
    
    
    105,864Corporate
    
    
    294,431
    
    
    
    356,559Total
    
    $
    1,018,071
    
    
    $
    1,059,297
 6.
    
    Treasury SharesIn the first quarter of fiscal 2007, the Company purchased 40,400 shares and held them
as treasury stock at a cost of $1,630, an average cost of $40.33 per share.7.
    
    InvestmentsEffective August 1, 2006, the Company began classifying all short-term investment purchases as
available-for-sale. This change was based on the Companys decision to change its investment
strategy from one of generating profits on short term differences in price to one of preserving
capital.At October 31, 2007 all Investments  short term are comprised of auction rate securities that
are classified as available-for-sale and are reported at fair value in accordance with SFAS No.
115, Accounting for Certain Investments in Debt and Equity Securities. The Company purchases
its auction rate securities at par, which either mature or reset at par, and generally there
are no unrealized or realized gains or losses to report. Cost is determined on the specific
identification basis. Interest income is accrued as earned. All of the available-for-sale
securities held at October 31, 2007 mature within one year.
 5




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8.
    
    Goodwill and Other Intangible Assets
  October 31, 2007
    
    July 31, 2007Accumulated
    
    
    
    
    
    AccumulatedCost
    
    Amortization
    
    Cost
    
    AmortizationAmortized Intangible Assets:Non-compete agreements
    
    $
    6,256
    
    
    $
    4,563
    
    
    $
    6,256
    
    
    $
    4,350
 Three Months
    
    Three MonthsEnded
    
    EndedOctober 31, 2007
    
    October 31, 2006Non-compete Agreements:Amortization Expense
    
    $
    213
    
    
    $
    237
  Estimated Amortization Expense:For the year ending July 2008
    
    $
    812For the year ending July 2009
    
    $
    476For the year ending July 2010
    
    $
    322For the year ending July 2011
    
    $
    238For the year ending July 2012
    
    $
    58
   Goodwill
    
    
    TrademarksRecreation Vehicles:Towables
    
    $
    143,795
    
    
    $
    10,237Motorized
    
    
    17,252
    
    
    
    2,600Total Recreation Vehicles
    
    
    161,047
    
    
    
    12,837Bus
    
    
    4,616
    
    
    
    1,063Total
    
    $
    165,663
    
    
    $
    13,900
 9.
    
    WarrantyThor provides customers of our products with a warranty covering defects in material or
workmanship for periods generally ranging from one to two years, with longer warranties on
certain structural components. We record a liability based on our best estimate of the amounts
necessary to settle future and existing claims on products sold as of the balance sheet date.
Factors we use in estimating the warranty liability include a history of units sold, existing
dealer inventory, average cost incurred and a profile of the distribution of warranty
expenditures over the warranty period. A significant increase in dealer shop rates, the cost
of parts or the frequency of claims could have a material adverse impact on our operating
results for the period or periods in which such claims or additional costs materialize.
Management believes that the warranty reserve is adequate; however, actual claims incurred
could differ from estimates, requiring adjustments to the reserves. Warranty reserves are
reviewed and adjusted as necessary on a quarterly basis.
 6




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Three Months
    
    
    Three MonthsEnded
    
    
    EndedOctober 31, 2007
    
    
    October 31, 2006Beginning Balance
    
    $
    64,310
    
    
    $
    59,795Provision
    
    
    18,550
    
    
    
    17,951Payments
    
    
    (16,849
    )
    
    
    (16,823
    )Ending Balance
    
    $
    66,011
    
    
    $
    60,923
 10.
    
    Commercial CommitmentsOur principal commercial commitments at October 31, 2007 are summarized in the following chart:
 Total
    
    Term ofCommitment
    
    Amount Committed
    
    CommitmentGuarantee on dealer financing
    
    $
    1,956
    
    
    less than 1 yearStandby repurchase obligation
on dealer financing
    
    $
    921,272
    
    
    less than 1 year
  Three Months
    
    
    Three MonthsEnded
    
    
    EndedOctober 31, 2007
    
    
    October 31, 2006Cost of units repurchased
    
    $
    5,187
    
    
    $
    1,961Realization on units resold
    
    
    4,922
    
    
    
    1,543Losses due to repurchase
    
    $
    265
    
    
    $
    418
 11.
    
    Income TaxesThe Company adopted FASB Interpretation No. 48 (FIN 48), Accounting for Uncertainty in
Income Taxes  an Interpretation of FASB Statement No. 109, on August 1, 2007. FIN 48
clarifies the accounting for uncertainties in income tax law by prescribing a minimum
recognition threshold a tax position is required to meet before being recognized for financial
accounting purposes. FIN 48 also provides guidance on derecognition, measurement,
classification, interest and penalties, and disclosure. The implementation of FIN 48 did not
have a significant impact on the Companys financial position or results of operations.On August 1, 2007 the Company recognized a cumulative effect adjustment of $17,200 as a
reduction to the balance of retained earnings and an increase in tax liabilities of $11,300 and
an increase in liability for penalties and interest of $5,900. The amount of unrecognized tax
benefits as of August 1, 2007 totaled $25,900, all of which would increase income from
continuing operations, and thus impact the Companys effective tax rate, if ultimately
recognized into income. Unrecognized state income tax benefits are reported net of their
related deferred federal income tax benefit.It is the Companys policy to recognize interest and penalties accrued relative to unrecognized
tax benefits in income tax expense. As of August 1, 2007, $6,500 in interest and penalties had
been accrued.
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The Company and its corporate subsidiaries file a consolidated U.S. federal income tax return
and multiple state income tax returns. The federal returns are subject to examination by
taxing authorities for all years after 2005. We are currently under audit by various state
Departments of Revenue for 2002 through 2005 tax years. The anticipated effect on unrecognized
tax benefits resulting from these audits is not expected to have a material impact on the
financial statements.The Company anticipates a decrease of approximately $2,800 in unrecognized tax benefits within
the next 12 months from 1) expected settlements or payments of uncertain tax positions, and 2)
lapses of the applicable statutes of limitations. Actual results may differ materially from
this estimate.12.
    
    Retained EarningsThe components of changes in retained earnings are as follows:
 Balance at 7/31/07
    
    $
    727,729Net income
    
    
    38,209Dividends paid
    
    
    (115,601
    )FIN 48 adjustment
    
    
    (17,229
    )Balance at 10/31/07
    
    $
    633,108
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
 Unless otherwise indicated, all amounts presented in thousands of dollars except unit, share and
per share data.
 Executive Overview
     8




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Trends and Business Outlook
    9




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THREE MONTHS ENDED OCTOBER 31, 2007 VS. THREE MONTHS ENDED OCTOBER 31, 2006
 Three Months Ended
    
    
    Three Months Ended
    
    
    ChangeOctober 31, 2007
    
    
    October 31, 2006
    
    
    Amount
    
    
    %NET SALES:Recreation VehiclesTowables
    
    $
    523,711
    
    
    $
    499,955
    
    
    $
    23,756
    
    
    
    4.8Motorized
    
    
    140,500
    
    
    
    135,923
    
    
    
    4,577
    
    
    
    3.4Total Recreation Vehicles
    
    
    664,211
    
    
    
    635,878
    
    
    
    28,333
    
    
    
    4.5Buses
    
    
    99,525
    
    
    
    91,838
    
    
    
    7,687
    
    
    
    8.3Total
    
    $
    763,736
    
    
    $
    727,716
    
    
    $
    36,020
    
    
    
    4.9# OF UNITS:Recreation VehiclesTowables
    
    
    23,815
    
    
    
    23,490
    
    
    
    325
    
    
    
    1.4Motorized
    
    
    1,771
    
    
    
    1,855
    
    
    
    (84
    )
    
    
    (4.5
    )Total Recreation Vehicles
    
    
    25,586
    
    
    
    25,345
    
    
    
    241
    
    
    
    1.0Buses
    
    
    1,543
    
    
    
    1,557
    
    
    
    (14
    )
    
    
    (.9
    )Total
    
    
    27,129
    
    
    
    26,902
    
    
    
    227
    
    
    
    .8
 % of
    
    
    
    
    
    
    % ofSegment
    
    
    
    
    
    
    Segment
    
    
    ChangeNet Sales
    
    
    
    
    
    
    Net Sales
    
    
    Amount
    
    
    %GROSS PROFIT:Recreation VehiclesTowables
    
    $
    79,176
    
    
    
    15.1
    
    
    $
    69,822
    
    
    
    14.0
    
    
    $
    9,354
    
    
    
    13.4Motorized
    
    
    13,818
    
    
    
    9.8
    
    
    
    12,639
    
    
    
    9.3
    
    
    
    1,179
    
    
    
    9.3Total Recreation Vehicles
    
    
    92,994
    
    
    
    14.0
    
    
    
    82,461
    
    
    
    13.0
    
    
    
    10,533
    
    
    
    12.8Buses
    
    
    8,281
    
    
    
    8.3
    
    
    
    6,707
    
    
    
    7.3
    
    
    
    1,574
    
    
    
    23.5Total
    
    $
    101,275
    
    
    
    13.3
    
    
    $
    89,168
    
    
    
    12.3
    
    
    $
    12,107
    
    
    
    13.6SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES:Recreation VehiclesTowables
    
    $
    28,519
    
    
    
    5.4
    
    
    $
    29,429
    
    
    
    5.9
    
    
    $
    (910
    )
    
    
    (3.1
    )Motorized
    
    
    6,962
    
    
    
    5.0
    
    
    
    6,556
    
    
    
    4.8
    
    
    
    406
    
    
    
    6.2Total Recreation Vehicles
    
    $
    35,481
    
    
    
    5.3
    
    
    $
    35,985
    
    
    
    5.7
    
    
    
    (504
    )
    
    
    (1.4
    )Buses
    
    
    3,796
    
    
    
    3.8
    
    
    
    3,493
    
    
    
    3.8
    
    
    
    303
    
    
    
    8.7Corporate
    
    
    6,133
    
    
    
    
    
    
    
    3,967
    
    
    
    
    
    
    
    2,166
    
    
    
    54.6Total
    
    $
    45,410
    
    
    
    5.9
    
    
    $
    43,445
    
    
    
    6.0
    
    
    $
    1,965
    
    
    
    4.5INCOME BEFORE INCOME TAXES:Recreation VehiclesTowables
    
    $
    50,812
    
    
    
    9.7
    
    
    $
    40,400
    
    
    
    8.1
    
    
    $
    10,412
    
    
    
    25.8Motorized
    
    
    6,853
    
    
    
    4.9
    
    
    
    6,068
    
    
    
    4.5
    
    
    
    785
    
    
    
    12.9Total Recreation Vehicles
    
    $
    57,665
    
    
    
    8.7
    
    
    $
    46,468
    
    
    
    7.3
    
    
    
    11,197
    
    
    
    24.1Buses
    
    
    4,139
    
    
    
    4.2
    
    
    
    3,020
    
    
    
    3.3
    
    
    
    1,119
    
    
    
    37.1Corporate
    
    
    (1,324
    )
    
    
    
    
    
    
    (492
    )
    
    
    
    
    
    
    (832
    )
    
    
    (169.1
    )Total
    
    $
    60,480
    
    
    
    7.9
    
    
    $
    48,996
    
    
    
    6.7
    
    
    $
    11,484
    
    
    
    23.4
 ORDER BACKLOG
 As of
    
    
    As of
    
    
    ChangeOctober 31, 2007
    
    
    October 31, 2006
    
    
    Amount
    
    
    %Recreation VehiclesTowables
    
    $
    179,948
    
    
    $
    120,627
    
    
    $
    59,321
    
    
    
    49.2Motorized
    
    
    69,774
    
    
    
    67,799
    
    
    
    1,975
    
    
    
    2.9Total Recreation Vehicles
    
    
    249,722
    
    
    
    188,426
    
    
    
    61,296
    
    
    
    32.5Buses
    
    
    226,342
    
    
    
    217,864
    
    
    
    8,478
    
    
    
    3.9Total
    
    $
    476,064
    
    
    $
    406,290
    
    
    $
    69,774
    
    
    
    17.2
 10




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##### Table of Contents



CONSOLIDATED
    SEGMENT REPORTING
 Recreation Vehicles
  Average PricePer Unit
    
    Units
    
    Net ChangeRecreation VehiclesTowables
    
    
    3.4
    %
    
    
    1.4
    %
    
    
    4.8
    %Motorized
    
    
    7.9
    %
    
    
    (4.5
    %)
    
    
    3.4
    %
 Towable Recreation Vehicles
    Motorized Recreation Vehicles
   11




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##### Table of Contents



Buses
  Average Price Per Unit
    
    Units
    
    Net ChangeBuses
    
    
    9.2
    %
    
    
    (.9
    %)
    
    
    8.3
    %
    Financial Condition and Liquidity
    Critical Accounting Principles
  Impairment of Goodwill, Trademarks and Long-Lived Assets
 12




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##### Table of Contents



Insurance Reserves
  Warranty
  Income Taxes
  Revenue Recognition
  1)
    
    An order for a product has been received from a dealer;2)
    
    Written or oral approval for payment has been received from the dealers flooring
institution;
 13




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##### Table of Contents



3)
    
    A common carrier signs the delivery ticket accepting responsibility for the product as agent
for the dealer; and4)
    
    The product is removed from the Companys property for delivery to the dealer who placed the
order.
  Repurchase Commitments
  Forward Looking Statements
  
 ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
  
 ITEM 4. Controls and Procedures
  14




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##### Table of Contents



PART II    Other Information
 
 ITEM 1. LEGAL PROCEEDINGS
   
 ITEM 6. Exhibits
 a.) Exhibits
     15




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##### Table of Contents



SIGNATURES
  THOR INDUSTRIES, INC.
     (Registrant)DATE:  November 26, 2007
    /s/ Wade F. B. ThompsonWade F. B. ThompsonChairman of the Board, President
and Chief Executive OfficerDATE:  November 26, 2007
    /s/ Walter L. BennettWalter L. BennettExecutive Vice President,
Secretary and Chief Financial Officer 16