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Segment Information
 9 Months Ended
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):
ABLISGCorporate
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 amortization21.0 3.7 0.3 — 25.0 
Three Months Ended May 31, 2020:
Net sales741.6 37.7 — (3.1)776.2 
Operating profit (loss)98.6 (0.2)(15.4)— 83.0 
Depreciation and amortization20.8 4.4 0.3 — 25.5 
Nine Months Ended May 31, 2021:
Net sales2,340.4 139.5 — (11.6)2,468.3 
Operating profit (loss)326.9 7.9 (40.0)— 294.8 
Depreciation and amortization63.2 11.0 0.8 — 75.0 
Nine Months Ended May 31, 2020:
Net sales2,327.8 116.1 — (8.8)2,435.1 
Operating profit (loss)304.0 (2.3)(53.7)— 248.0 
Depreciation and amortization62.5 12.0 0.8 — 75.3 
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(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 EndedNine Months Ended
May 31, 2021May 31, 2020May 31, 2021May 31, 2020
Operating profit - ABL$126.5 $98.6 $326.9 $304.0 
Operating profit (loss) - ISG7.2 (0.2)7.9 (2.3)
Unallocated corporate amounts(15.6)(15.4)(40.0)(53.7)
Operating profit118.1 83.0 294.8 248.0 
Interest expense, net6.2 5.4 17.7 19.4 
Miscellaneous expense (income), net2.7 (0.9)6.5 1.5 
Income before income taxes$109.2 $78.5 $270.6 $227.1