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Segment Information
 12 Months Ended
Aug. 31, 2022
Segment Reporting [Abstract]  
Segment Information

Note 18 — Segment Information

The Company operates in three reportable segments: Manufacturing; Maintenance Services; and Leasing & Management Services.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. 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 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.

In the first quarter of 2022 the Company renamed two of its reportable segments to more prominently display the nature of the customer solutions it provides and markets in which it operates. The new names of its reportable segments are Manufacturing (unchanged), Maintenance Services (previously Wheels, Repair & Parts), and Leasing & Management Services (previously Leasing & Services). The name changes have no impact on the organization’s reporting structure nor on financial information previously reported. Separately, effective September 1, 2021, the Company changed its measurement basis for allocating syndication revenue between the Manufacturing and Leasing & Management Services reportable segments. This change in measurement reflects the information currently used by management to assess the Company's operating performance in accordance with its refined leasing strategy and has no impact to the Company’s total consolidated revenue. Segment results for the prior periods have been recast to conform to the current period presentation.

The information in the following table is derived directly from the segments’ internal financial reports used for corporate management purposes.

For the year ended August 31, 2022:

 

 

 

Revenue

 

 

Earnings (loss) from operations

 

(In millions)

 

External

 

 

Intersegment

 

 

Total

 

 

External

 

 

Intersegment

 

 

Total

 

Manufacturing

 

$

2,476.6

 

 

$

191.6

 

 

$

2,668.2

 

 

$

97.2

 

 

$

11.9

 

 

$

109.1

 

Maintenance Services

 

 

347.7

 

 

 

26.4

 

 

 

374.1

 

 

 

21.7

 

 

 

—

 

 

 

21.7

 

Leasing & Management Services

 

 

153.4

 

 

 

1.9

 

 

 

155.3

 

 

 

108.3

 

 

 

0.1

 

 

 

108.4

 

Eliminations

 

 

—

 

 

 

(219.9

)

 

 

(219.9

)

 

 

—

 

 

 

(12.0

)

 

 

(12.0

)

Corporate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(109.2

)

 

 

—

 

 

 

(109.2

)

 

 

$

2,977.7

 

 

$

—

 

 

$

2,977.7

 

 

$

118.0

 

 

$

—

 

 

$

118.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended August 31, 2021:

 

 

 

Revenue

 

 

Earnings (loss) from operations

 

(In millions)

 

External

 

 

Intersegment

 

 

Total

 

 

External

 

 

Intersegment

 

 

Total

 

Manufacturing

 

$

1,311.1

 

 

$

92.4

 

 

$

1,403.5

 

 

$

48.3

 

 

$

6.9

 

 

$

55.2

 

Maintenance Services

 

 

298.3

 

 

 

9.1

 

 

 

307.4

 

 

 

6.5

 

 

 

0.1

 

 

 

6.6

 

Leasing & Management Services

 

 

138.5

 

 

 

1.1

 

 

 

139.6

 

 

 

68.9

 

 

 

0.2

 

 

 

69.1

 

Eliminations

 

—

 

 

 

(102.6

)

 

 

(102.6

)

 

—

 

 

 

(7.2

)

 

 

(7.2

)

Corporate

 

—

 

 

 

—

 

 

 

—

 

 

 

(82.7

)

 

 

—

 

 

 

(82.7

)

 

 

$

1,747.9

 

 

$

—

 

 

$

1,747.9

 

 

$

41.0

 

 

$

—

 

 

$

41.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the year ended August 31, 2020:

 

 

 

Revenue

 

 

Earnings (loss) from operations

 

(In millions)

 

External

 

 

Intersegment

 

 

Total

 

 

External

 

 

Intersegment

 

 

Total

 

Manufacturing

 

$

2,309.5

 

 

$

3.0

 

 

$

2,312.5

 

 

$

157.0

 

 

$

0.1

 

 

$

157.1

 

Maintenance Services

 

 

324.7

 

 

 

12.6

 

 

 

337.3

 

 

 

9.0

 

 

 

(0.9

)

 

 

8.1

 

Leasing & Management Services

 

 

158.0

 

 

 

2.3

 

 

 

160.3

 

 

 

81.4

 

 

 

0.2

 

 

 

81.6

 

Eliminations

 

—

 

 

 

(17.9

)

 

 

(17.9

)

 

—

 

 

 

0.6

 

 

 

0.6

 

Corporate

 

—

 

 

 

—

 

 

 

—

 

 

 

(79.0

)

 

 

—

 

 

 

(79.0

)

 

 

$

2,792.2

 

 

$

—

 

 

$

2,792.2

 

 

$

168.4

 

 

$

—

 

 

$

168.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

(In millions)

 

2022

 

 

2021

 

 

2020

 

Assets:

 

 

 

 

 

 

 

 

 

Manufacturing

 

$

1,853.9

 

 

$

1,493.5

 

 

$

1,301.7

 

Maintenance Services

 

 

284.8

 

 

 

260.9

 

 

 

271.9

 

Leasing & Management Services

 

 

1,152.2

 

 

 

949.4

 

 

 

739.0

 

Unallocated, including cash

 

 

560.6

 

 

 

686.9

 

 

 

861.2

 

 

 

$

3,851.5

 

 

$

3,390.7

 

 

$

3,173.8

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

Manufacturing

 

$

61.7

 

 

$

67.8

 

 

$

78.0

 

Maintenance Services

 

 

10.7

 

 

 

12.0

 

 

 

12.6

 

Leasing & Management Services

 

 

29.6

 

 

 

20.9

 

 

 

19.3

 

 

 

$

102.0

 

 

$

100.7

 

 

$

109.9

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

Manufacturing

 

$

48.3

 

 

$

26.6

 

 

$

48.2

 

Maintenance Services

 

 

9.2

 

 

 

8.6

 

 

 

11.7

 

Leasing & Management Services

 

 

323.2

 

 

 

103.8

 

 

 

7.0

 

 

 

$

380.7

 

 

$

139.0

 

 

$

66.9

 

 

 

 

 

 

 

 

 

 

 

 

The following table summarizes selected geographic information.

 

 

 

Year Ended August 31,

 

(In millions)

 

2022

 

 

2021

 

 

2020

 

Revenue (1):

 

 

 

 

 

 

 

 

 

U.S.

 

$

2,452.1

 

 

$

1,221.4

 

 

$

2,018.7

 

Foreign

 

 

525.6

 

 

 

526.5

 

 

 

773.5

 

 

 

$

2,977.7

 

 

$

1,747.9

 

 

$

2,792.2

 

Assets:

 

 

 

 

 

 

 

 

 

U.S.

 

$

2,689.6

 

 

$

2,506.1

 

 

$

2,359.3

 

Mexico

 

 

948.4

 

 

 

656.6

 

 

 

590.8

 

Europe

 

 

213.5

 

 

 

228.0

 

 

 

223.7

 

 

 

$

3,851.5

 

 

$

3,390.7

 

 

$

3,173.8

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Revenue is presented on the basis of geographic location of customers.

 

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

 

 

 

Year Ended August 31,

 

(In millions)

 

2022

 

 

2021

 

 

2020

 

Earnings from operations

 

$

118.0

 

 

$

41.0

 

 

$

168.4

 

Interest and foreign exchange

 

 

57.4

 

 

 

43.3

 

 

 

43.6

 

Net loss on extinguishment of debt

 

 

—

 

 

 

6.3

 

 

 

—

 

Earnings (loss) before income tax and earnings
   from unconsolidated affiliates

 

$

60.6

 

 

$

(8.6

)

 

$

124.8