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Segment Information | 9 Months Ended
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May 31, 2021
Segment Reporting [Abstract] |
Segment Information | Segment Information During the third quarter of fiscal 2021, we completed a realignment of our operations and structure to better support our business strategy. As a result, beginning in the third quarter of fiscal 2021, we now report our financial results of operations in two reportable segments, ABL and ISG, consistent with how our chief operating decision maker currently evaluates operating results, assesses performance, and allocates resources within the Company. We have recast historical information to conform to the current segment structure. ABL ABL offers devices such as luminaires, lighting controls, power supplies, prismatic skylights, and drivers as well as integrated systems designed to optimize energy efficiency and comfort for various indoor and outdoor applications. Principal customers of ABL include electrical distributors, retail home improvement centers, electric utilities, national accounts, digital retailers, lighting showrooms and energy service companies located in North America and select international markets serving new construction, renovation and retrofit, and maintenance and repair applications. Our lighting and lighting controls solutions are sold primarily through independent sales agencies who cover specific geographic areas and market channels, by internal sales representatives, through consumer retail channels and directly to large corporate accounts. Products are delivered directly from our manufacturing facilities or through a network of distribution centers, regional warehouses, and commercial warehouses using both common carriers and a company-managed truck fleet. To serve international customers, the sales forces utilize a variety of distribution methods to meet specific individual customer or country requirements. ISG Our ISG segment offers building management systems and location-aware applications, which include products for controlling HVAC, lighting, shades, and access control that deliver end-to-end optimization of those building systems. Additionally, ISG includes our intelligent building platform that enhances the occupant experience, improves building system management, and automates labor intensive tasks while delivering operational energy efficiency and cost reductions. Through a connected and converged building system architecture, our platform delivers different applications, allows clients to upgrade over time with natural refresh cycles, and deploys new capability through both software and hardware updates. Principal customers of ISG include system integrators, electrical distributors, retail centers, airports, and enterprise campuses throughout North America and select international locations. Corporate and Unallocated Amounts Corporate expenses that are primarily administrative in nature and benefit the company on an entity-wide basis are not allocated to our segments. These include expenses related to governance, policy setting, compliance, and certain other shared services functions. Additionally, we do not allocate non-operating amounts, including net interest expense and miscellaneous expense, special charges, or assets to our segments. Accordingly, this information is not used by the chief operating decision maker to make operating decisions and assess performance and is therefore excluded from our disclosures. The accounting policies of our reportable segments are the same as those described in the Significant Accounting Policies footnote of the Notes to Consolidated Financial Statements within our Form 10-K. The following table presents financial information by operating segment for the periods presented (in millions):
| ABL |  | ISG |  | Corporate |  | Eliminations(1) |  | Total
Three Months Ended May 31, 2021: |  |  |  |  |  |  |  |  |
Net sales | $ | 850.0 |  |  | $ | 55.4 |  |  | $ | — |  |  | $ | (5.7) |  |  | $ | 899.7 |
Operating profit (loss) | 126.5 |  |  | 7.2 |  |  | (15.6) |  |  | — |  |  | 118.1 |
Depreciation and amortization | 21.0 |  |  | 3.7 |  |  | 0.3 |  |  | — |  |  | 25.0 |
Three Months Ended May 31, 2020: |  |  |  |  |  |  |  |  |
Net sales | 741.6 |  |  | 37.7 |  |  | — |  |  | (3.1) |  |  | 776.2 |
Operating profit (loss) | 98.6 |  |  | (0.2) |  |  | (15.4) |  |  | — |  |  | 83.0 |
Depreciation and amortization | 20.8 |  |  | 4.4 |  |  | 0.3 |  |  | — |  |  | 25.5 |
Nine Months Ended May 31, 2021: |  |  |  |  |  |  |  |  |
Net sales | 2,340.4 |  |  | 139.5 |  |  | — |  |  | (11.6) |  |  | 2,468.3 |
Operating profit (loss) | 326.9 |  |  | 7.9 |  |  | (40.0) |  |  | — |  |  | 294.8 |
Depreciation and amortization | 63.2 |  |  | 11.0 |  |  | 0.8 |  |  | — |  |  | 75.0 |
Nine Months Ended May 31, 2020: |  |  |  |  |  |  |  |  |
Net sales | 2,327.8 |  |  | 116.1 |  |  | — |  |  | (8.8) |  |  | 2,435.1 |
Operating profit (loss) | 304.0 |  |  | (2.3) |  |  | (53.7) |  |  | — |  |  | 248.0 |
Depreciation and amortization | 62.5 |  |  | 12.0 |  |  | 0.8 |  |  | — |  |  | 75.3 |
____________________________ (1) This column represents intersegment sales. Profit on these sales eliminates within gross profit on a consolidated basis. The following table reconciles operating profit by segment to income before income taxes (in millions):
| Three Months Ended |  | Nine Months Ended
| May 31, 2021 |  | May 31, 2020 |  | May 31, 2021 |  | May 31, 2020
Operating profit - ABL | $ | 126.5 |  |  | $ | 98.6 |  |  | $ | 326.9 |  |  | $ | 304.0 |
Operating profit (loss) - ISG | 7.2 |  |  | (0.2) |  |  | 7.9 |  |  | (2.3) |
Unallocated corporate amounts | (15.6) |  |  | (15.4) |  |  | (40.0) |  |  | (53.7) |
Operating profit | 118.1 |  |  | 83.0 |  |  | 294.8 |  |  | 248.0 |
Interest expense, net | 6.2 |  |  | 5.4 |  |  | 17.7 |  |  | 19.4 |
Miscellaneous expense (income), net | 2.7 |  |  | (0.9) |  |  | 6.5 |  |  | 1.5 |
Income before income taxes | $ | 109.2 |  |  | $ | 78.5 |  |  | $ | 270.6 |  |  | $ | 227.1 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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