Segment Information

9 Months Ended

May 31, 2022

Segment Reporting [Abstract]

Segment Information

Note 13 – 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 (expense) benefit 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. Separately, effective September 1, 2021, the Company 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 May 31, 2022:

	Revenue								Earnings (loss) from operations
(in millions)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	650.9	$	38.3		$	689.2		$	20.5		$	1.8		$	22.3
Maintenance Services		101.5		8.6			110.1			8.6			—			8.6
Leasing & Management Services		41.1		0.6			41.7			19.2			0.1			19.3
Eliminations		—		(47.5	)		(47.5	)		—			(1.9	)		(1.9	)
Corporate		—		—			—			(28.7	)		—			(28.7	)
	$	793.5	$	—		$	793.5		$	19.6		$	—		$	19.6

For the nine months ended May 31, 2022:

	Revenue								Earnings (loss) from operations
(in millions)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	1,659.1	$	79.5		$	1,738.6		$	34.6		$	2.1		$	36.7
Maintenance Services		260.5		17.4			277.9			10.4			—			10.4
Leasing & Management Services		107.4		1.3			108.7			84.0			0.1			84.1
Eliminations		—		(98.2	)		(98.2	)		—			(2.2	)		(2.2	)
Corporate		—		—			—			(72.4	)		—			(72.4	)
	$	2,027.0	$	—		$	2,027.0		$	56.6		$	—		$	56.6

For the three months ended May 31, 2021:

	Revenue								Earnings (loss) from operations
(in millions)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	339.7	$	7.5		$	347.2		$	29.1		$	0.5		$	29.6
Maintenance Services		80.9		2.3			83.2			4.2			0.1			4.3
Leasing & Management Services		29.6		—			29.6			14.5			—			14.5
Eliminations		—		(9.8	)		(9.8	)		—			(0.6	)		(0.6	)
Corporate		—		—			—			(22.1	)		—			(22.1	)
	$	450.2	$	—		$	450.2		$	25.7		$	—		$	25.7

For the nine months ended May 31, 2021:

	Revenue								Earnings (loss) from operations
(in millions)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	845.7	$	30.5		$	876.2		$	16.7		$	3.1		$	19.8
Maintenance Services		218.1		4.2			222.3			6.4			0.1			6.5
Leasing & Management Services		85.0		1.0			86.0			31.7			0.1			31.8
Eliminations		—		(35.7	)		(35.7	)		—			(3.3	)		(3.3	)
Corporate		—		—			—			(56.9	)		—			(56.9	)
	$	1,148.8	$	—		$	1,148.8		$	(2.1	)	$	—		$	(2.1	)

	Total assets
(in millions)	May 31, 2022		August 31, 2021
Manufacturing	$	1,814.1	$	1,493.5
Maintenance Services		266.8		260.9
Leasing & Management Services		1,158.3		949.4
Unallocated, including cash		466.9		686.9
	$	3,706.1	$	3,390.7

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

	Three Months Ended May 31,				Nine Months Ended May 31,
(in millions)	2022		2021		2022		2021
Earnings (loss) from operations	$	19.6	$	25.7	$	56.6	$	(2.1	)
Interest and foreign exchange	$	14.9	$	10.2	$	39.3	$	30.9
Net loss on extinguishment of debt		—		4.8		—		4.8
Earnings (loss) before income tax and   earnings from unconsolidated affiliates	$	4.7	$	10.7	$	17.3	$	(37.8	)