Note 14 – Industry Segment Information

The Company manages its business activities in two reportable segments: irrigation and infrastructure. The Company evaluates the performance of its reportable segments based on segment sales, gross profit and operating income, with operating income for segment purposes excluding unallocated corporate general and administrative expenses, interest income, interest expense, other income and expenses and income taxes. Operating income for segment purposes includes general and administrative expenses, selling expenses, engineering and research expenses and other overhead charges directly attributable to the segment. There are no inter-segment sales included in the amounts disclosed. The Company had no single customer who represented 10 percent or more of its total revenues during the three and six months ended February 28, 2018 and February 28, 2017.

Irrigation - This reporting segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems as well as various water pumping stations, controls, filtration solutions and machine-to-machine technology. The irrigation reporting segment consists of three operating segments that have similar economic characteristics and meet the aggregation criteria, including similar products, production processes, type or class of customer and methods for distribution.

Infrastructure – This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment; the manufacture and sale of large diameter steel tubing and railroad signals and structures; and the provision of outsourced manufacturing and production services. The infrastructure reporting segment consists of one operating segment.

	Three months ended						Six months ended
($ in thousands)	February 28, 2018			February 28, 2017			February 28, 2018			February 28, 2017
Operating revenues:
Irrigation	$	111,865		$	106,209		$	215,218		$	196,061
Infrastructure		18,474			17,916			39,647			38,454
Total operating revenues	$	130,339		$	124,125		$	254,865		$	234,515

Operating income:
Irrigation	$	11,933		$	11,304		$	19,784		$	16,453
Infrastructure		2,519			1,595			5,810			4,571
Corporate		(7,386	)		(4,377	)		(12,327	)		(9,767	)
Total operating income		7,066			8,522			13,267			11,257

Interest and other expense, net		(1,390	)		(886	)		(2,799	)		(2,286	)
Earnings before income taxes	$	5,676		$	7,636		$	10,468		$	8,971

Capital expenditures:
Irrigation	$	2,362		$	1,796		$	4,035		$	2,746
Infrastructure		268			664			464			1,104
Corporate		94			344			216			344
	$	2,724		$	2,804		$	4,715		$	4,194
Depreciation and amortization:
Irrigation	$	2,994		$	2,880		$	6,073		$	5,703
Infrastructure		1,144			1,110			2,282			2,219
Corporate		126			95			244			198
	$	4,264		$	4,085		$	8,599		$	8,120

($ in thousands)	February 28, 2018		February 28, 2017		August 31, 2017
Total assets:
Irrigation	$	348,298	$	343,067	$	337,446
Infrastructure		79,342		73,280		80,187
Corporate		94,714		74,269		88,399
	$	522,354	$	490,616	$	506,032