Segment Information

6 Months Ended

Feb. 28, 2021

Segment Reporting [Abstract]

Segment Information

Note 12 – 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 Annual Report on Form 10-K for the year ended August 31, 2020. 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.

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 February 28, 2021:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	202,094	$	2,425		$	204,519		$	(17,216	)	$	100		$	(17,116	)
Wheels, Repair & Parts		71,623		1,603			73,226			2,433			(14	)		2,419
Leasing & Services		21,905		1,113			23,018			6,420			634			7,054
Eliminations		—		(5,141	)		(5,141	)		—			(720	)		(720	)
Corporate		—		—			—			(17,364	)		—			(17,364	)
	$	295,622	$	—		$	295,622		$	(25,727	)	$	—		$	(25,727	)

For the six months ended February 28, 2021:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	510,816	$	23,016		$	533,832		$	(7,530	)	$	2,605		$	(4,925	)
Wheels, Repair & Parts		137,179		1,904			139,083			2,233			(23	)		2,210
Leasing & Services		50,616		5,778			56,394			12,310			4,919			17,229
Eliminations		—		(30,698	)		(30,698	)		—			(7,501	)		(7,501	)
Corporate		—		—			—			(34,854	)		—			(34,854	)
	$	698,611	$	—		$	698,611		$	(27,841	)	$	—		$	(27,841	)

For the three months ended February 29, 2020:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	489,943	$	21		$	489,964		$	46,105		$	1		$	46,106
Wheels, Repair & Parts		91,225		5,133			96,358			3,320			(168	)		3,152
Leasing & Services		42,680		15,240			57,920			12,793			14,384			27,177
Eliminations		—		(20,394	)		(20,394	)		—			(14,217	)		(14,217	)
Corporate		—		—			—			(23,782	)		—			(23,782	)
	$	623,848	$	—		$	623,848		$	38,436		$	—		$	38,436

For the six months ended February 29, 2020:

	Revenue								Earnings (loss) from operations
(In thousands)	External		Intersegment			Total			External			Intersegment			Total
Manufacturing	$	1,147,310	$	118		$	1,147,428		$	99,248		$	(22	)	$	99,226
Wheels, Repair & Parts		177,833		10,984			188,817			4,434			(510	)		3,924
Leasing & Services		68,064		16,989			85,053			22,570			15,673			38,243
Eliminations		—		(28,091	)		(28,091	)		—			(15,141	)		(15,141	)
Corporate		—		—			—			(46,032	)		—			(46,032	)
	$	1,393,207	$	—		$	1,393,207		$	80,220		$	—		$	80,220

	Total assets
(In thousands)	February 28, 2021		August 31, 2020
Manufacturing	$	1,313,819	$	1,301,715
Wheels, Repair & Parts		277,788		271,862
Leasing & Services		851,546		739,025
Unallocated, including cash		616,212		861,232
	$	3,059,365	$	3,173,834

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

	Three Months Ended					Six Months Ended
(In thousands)	February 28, 2021			February 29, 2020		February 28, 2021			February 29, 2020
Earnings (loss) from operations	$	(25,727	)	$	38,436	$	(27,841	)	$	80,220
Interest and foreign exchange		9,568			12,609		20,671			25,461
Earnings (loss) before income tax and   earnings (loss) from unconsolidated   affiliates	$	(35,295	)	$	25,827	$	(48,512	)	$	54,759