Segment Information

9 Months Ended

May 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

We report our financial results of operations in two reportable segments, ABL and ISG, consistent with how our chief operating decision maker currently evaluates operating results, assesses performance, and allocates resources within the Company.

The accounting policies of our reportable segments are the same as those described in the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements within our Form 10-K. Corporate expenses that are primarily administrative in function and benefit the Company on an entity-wide basis are not allocated to our segments. These include expenses related to governance, policy setting, compliance, and certain other shared services functions. Additionally, we do not allocate net interest expense, net miscellaneous expense, special charges, or assets to our segments. Accordingly, this information is not used by the chief operating decision maker to make operating decisions and assess performance and is therefore excluded from our disclosures.

The following table presents financial information by operating segment for the periods presented (in millions):

	ABL		ISG		Corporate		Eliminations(1)		Total
Three Months Ended May 31, 2022
Net sales	$	1,008.4	$	58.3	$	—	$	(6.1)	$	1,060.6
Operating profit (loss)	149.6		9.2		(16.1)		—		142.7
Depreciation and amortization	19.6		3.6		0.3		—		23.5
Three Months Ended May 31, 2021
Net sales	$	850.0	$	55.4	$	—	$	(5.7)	$	899.7
Operating profit (loss)	126.5		7.2		(15.6)		—		118.1
Depreciation and amortization	21.0		3.7		0.3		—		25.0
Nine Months Ended May 31, 2022
Net sales	$	2,755.1	$	154.7	$	—	$	(14.0)	$	2,895.8
Operating profit (loss)	394.2		12.4		(46.5)		—		360.1
Depreciation and amortization	59.8		10.8		0.8		—		71.4
Nine Months Ended May 31, 2021
Net sales	$	2,340.4	$	139.5	$	—	$	(11.6)	$	2,468.3
Operating profit (loss)	326.9		7.9		(40.0)		—		294.8
Depreciation and amortization	63.2		11.0		0.8		—		75.0

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(1) This column represents intersegment sales. Profit on these sales eliminates within gross profit on a consolidated basis.

The following table reconciles operating profit by segment to income before income taxes (in millions):

	Three Months Ended				Nine Months Ended
	May 31, 2022		May 31, 2021		May 31, 2022		May 31, 2021
Operating profit - ABL	$	149.6	$	126.5	$	394.2	$	326.9
Operating profit - ISG	9.2		7.2		12.4		7.9
Unallocated corporate amounts	(16.1)		(15.6)		(46.5)		(40.0)
Operating profit	142.7		118.1		360.1		294.8
Interest expense, net	6.2		6.2		18.1		17.7
Miscellaneous (income) expense, net	(1.5)		2.7		(3.1)		6.5
Income before income taxes	$	138.0	$	109.2	$	345.1	$	270.6