Related Party Transactions

9 Months Ended

May 31, 2023

Related Party Transactions [Abstract]

Related Party Transactions

Note 18 – Related Party Transactions

The Company has a 41.9% interest in Axis, LLC (Axis), a joint venture. The Company purchased $2.2 million and $6.7 million of railcar components from Axis for the three and nine months ended May 31, 2023, respectively, and $3.5 million and $9.7 million for the three and nine months ended May 31, 2022, respectively.

The Company has a 40% interest in the common equity of an unconsolidated affiliate that buys and sells railcar assets that are leased to third parties. Upon sale of railcars to this entity from the Company, 60% of the related revenue and margin is recognized and 40% is deferred until the railcars are ultimately sold by the entity. The Company recognized $15.1 million in revenue when the remaining railcars were sold out of the leasing warehouse during the three and nine months ended May 31, 2023. The Company had no material revenue with railcars sold out of the leasing warehouse during the three and nine months ended May 31, 2022.