Note 14 – Segment Information

The Company operates in three reportable segments: Manufacturing; Wheels, Repair & Parts; and Leasing & Services. Prior to August 20, 2018, the Company operated in four reportable segments: Manufacturing; Wheels, Repair & Parts; Leasing & Services; and GBW Joint Venture. On August 20, 2018 the Company entered into an agreement with its joint venture partner to discontinue the GBW railcar repair joint venture, which resulted in 12 repair shops returned to the Company. Beginning on August 20, 2018, the GBW Joint Venture is no longer considered a reportable segment.

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 2018 Annual Report on Form 10-K except for the revenue recognition accounting policy which has subsequently been updated (see Note 2 – Revenue Recognition). Performance is evaluated based on Earnings 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 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.

The information in the following table is derived directly from the segments’ internal financial reports used for corporate management purposes. The results of operations for the GBW Joint Venture are not reflected in the tables below as the investment was accounted for under the equity method of accounting.

For the three months ended November 30, 2018:


	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	471,789	$	6,201		$	477,990		$	36,855		$	433		$	37,288
Wheels, Repair & Parts		108,543		15,981			124,524			3,247			312			3,559
Leasing & Services		24,191		5,999			30,190			17,513			5,452			22,965
Eliminations		—		(28,181	)		(28,181	)		—			(6,197	)		(6,197	)
Corporate		—		—			—			(21,161	)		—			(21,161	)

	$	604,523	$	—		$	604,523		$	36,454		$	—		$	36,454


For the three months ended November 30, 2017:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	451,485	$	16,804		$	468,289		$	52,969		$	4,186		$	57,155
Wheels, Repair & Parts		78,011		7,732			85,743			2,418			748			3,166
Leasing & Services		30,039		1,605			31,644			28,190			1,372			29,562
Eliminations		—		(26,141	)		(26,141	)		—			(6,306	)		(6,306	)
Corporate		—		—			—			(22,135	)		—			(22,135	)

	$	559,535	$	—		$	559,535		$	61,442		$	—		$	61,442


	Total assets
	November 30,		August 31,
(In thousands)	2018		2018
Manufacturing	$	998,820	$	1,020,757
Wheels, Repair & Parts		322,525		306,756
Leasing & Services		691,389		578,818
Unallocated		502,390		559,133

	$	2,515,124	$	2,465,464

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


	Three Months Ended November 30,
(In thousands)	2018		2017
Earnings from operations	$	36,454	$	61,442
Interest and foreign exchange		4,404		7,020

Earnings before income tax and earnings (loss) from unconsolidated affiliates	$	32,050	$	54,422