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Segment Information
 3 Months Ended
Nov. 30, 2019
Segment Information
Note 13 – Segment Information
The Company operates in three
reportable segments: Manufacturing; Wheels, Repair & Parts; and Leasing & 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 2019 Annual Report on Form
10-K.
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 ta
b
le is derived directly from the segments’ internal financial reports used for corporate management purposes
.
For the three months ended November 30, 2019:
                                                 
 
Revenue
   
Earnings (loss) from operations
 
(In thousands)
  
External
   
Intersegment
   
Total
   
External
   
Intersegment
   
Total
 
Manufacturing
  $
657,367
     $
97
     $
657,464
     $
53,143
     $
(23
 )    $
53,120
  
Wheels, Repair & Parts
   
86,608
      
5,851
      
92,459
      
1,114
      
(342
 )     
772
  
Leasing & Services
   
25,384
      
1,749
      
27,133
      
9,777
      
1,289
      
11,066
  
Eliminations
   
—   
      
(7,697
)
 		    
(7,697
)
 		    
—  
      
(924
)
 		    
(924
)
Corporate
   
—   
      
—  
      
—  
      
(22,250
 )     
—  
      
(22,250
)
  $
769,359
     $
—  
     $
769,359
     $
41,784
     $
—  
     $
41,784
  
                                                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
                                                 
 
 
 
 
 
 
 
 
 
 
                 
 
Total assets
 
(In thousands)
 
November 30,
 
2019
   
August 31,
 
2019
 
Manufacturing
  $
1,568,338
     $
1,606,571
 
Wheels, Repair & Parts
   
317,786
      
306,725
 
Leasing & Services
   
776,724
      
708,799
 
Unallocated
   
285,928
      
368,542
 
                 
  $
2,948,776
    $
2,990,637
 
                 
 
 
 
 
 
 
 
 
 
 
Reconciliation of Earnings from operations to Earnings before income tax and earnings from unconsolidated affiliates:
                 
 
Three Months Ended
November 30,
 
(In thousands)
 
2019
   
2018
 
Earnings from operations
  $
41,784
     $
36,454
 
Interest and foreign exchange
   
12,852
      
4,404
 
                 
Earnings before income tax and
earnings
from unconsolidated affiliates
  $
28,932
     $
32,050