Segment Information

3 Months Ended

Nov. 30, 2021

Segment Reporting [Abstract]

Segment Information

Note 12 – Segment Information

The Company operates in three reportable segments: Manufacturing; Maintenance Services; and Leasing & Management Services.

The accounting policies of the segments are described in the summary of significant accounting policies in the Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended August 31, 2021. Performance is evaluated based on Earnings (loss) from operations. Corporate includes selling and administrative costs not directly related to goods and services and certain costs that are intertwined among segments due to our integrated business model. The Company does not allocate Interest and foreign exchange or Income tax benefit (expense) for either external or internal reporting purposes. Intersegment sales and transfers are valued as if the sales or transfers were to third parties. Related revenue and margin are eliminated in consolidation and therefore are not included in consolidated results in the Company’s Consolidated Financial Statements.

In the first quarter of 2022 the Company renamed two of its reportable segments to more prominently display the nature of the customer solutions it provides and markets in which it operates. The new names of its reportable segments are Manufacturing (unchanged), Maintenance Services (previously Wheels, Repair & Parts), and Leasing & Management Services (previously Leasing & Services). The name changes have no impact on the organization’s reporting structure nor on financial information previously reported. However, effective September 1, 2021, the Company also changed its measurement basis for allocating syndication revenue between the Manufacturing and Leasing & Management Services reportable segments. This change in measurement reflects the information currently used by management to assess the Company's operating performance in accordance with its refined leasing strategy and has no impact to the Company’s total consolidated revenue. Segment results for the prior periods have been recast to conform to the current period presentation.

The information in the following table is derived directly from the segments’ internal financial reports used for corporate management purposes.

For the three months ended November 30, 2021:

	Revenue								Earnings (loss) from operations
(in millions)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	452.5	$	39.4		$	491.9		$	12.3		$	0.3		$	12.6
Maintenance Services		72.4		2.7			75.1			(1.1	)		—			(1.1	)
Leasing & Management Services		25.8		0.3			26.1			17.2			—			17.2
Eliminations		—		(42.4	)		(42.4	)		—			(0.3	)		(0.3	)
Corporate		—		—			—			(16.6	)		—			(16.6	)
	$	550.7	$	—		$	550.7		$	11.8		$	—		$	11.8

For the three months ended November 30, 2020:

	Revenue								Earnings (loss) from operations
(in millions)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	304.5	$	20.6		$	325.1		$	5.4		$	2.5		$	7.9
Maintenance Services		65.6		0.3			65.9			(0.2	)		—			(0.2	)
Leasing & Management Services		32.9		0.4			33.3			10.1			—			10.1
Eliminations		—		(21.3	)		(21.3	)		—			(2.5	)		(2.5	)
Corporate		—		—			—			(17.4	)		—			(17.4	)
	$	403.0	$	—		$	403.0		$	(2.1	)	$	—		$	(2.1	)

	Total assets
(in millions)	November 30, 2021		August 31, 2021
Manufacturing	$	1,550.3	$	1,493.5
Maintenance Services		261.5		260.9
Leasing & Management Services		1,219.9		949.4
Unallocated, including cash		438.3		686.9
	$	3,470.0	$	3,390.7

Reconciliation of Earnings (loss) from operations to Loss before income tax and earnings (loss) from unconsolidated affiliates:

	Three Months Ended November 30,
(in millions)	2021			2020
Earnings (loss) from operations	$	11.8		$	(2.1	)
Interest and foreign exchange		12.6			11.1
Loss before income tax and earnings (loss)    from unconsolidated affiliates	$	(0.8	)	$	(13.2	)