Annual report pursuant to Section 13 and 15(d)

Business Segment, Geographic and Customer Information

v3.10.0.1
Business Segment, Geographic and Customer Information
 12 Months Ended
Aug. 31, 2018
Segment Reporting [Abstract]  
Business Segment, Geographic and Customer Information
Note 15.    Business Segment, Geographic and Customer Information
The Company is a global manufacturer of a broad range of industrial products and systems. During the fourth quarter of fiscal 2018, the Company’s financial reporting segments were modified to reflect changes in the operating structure of the Company. The Company considered these changes as part of its ongoing assessment of segment reporting, and changed its operating and reportable segments to reflect two reportable segments: Industrial Tools & Services and Engineered Components & Systems. All prior period amounts and disclosures have been adjusted to reflect the current reportable segments.
The Industrial Tools & Services segment is primarily engaged in the design, manufacture and distribution of branded hydraulic and mechanical tools and in providing services and tool rental to the industrial, maintenance, infrastructure, oil & gas, energy and other markets.  The Engineered Components & Systems segment provides highly engineered components for on-highway, off-highway agriculture, medical, concrete tensioning and other vertical markets. All of the aforementioned markets are supported through our various segment product lines outlined below.
The following tables summarize financial information by reportable segment and product line (in thousands):
 
 
Year Ended August 31,
 
 
2018
 
2017
 
2016
Net Sales by Reportable Segment & Product Line:
 
 
 
 
 
 
Industrial Tools & Services Segment:
 
 
 
 
 
 
Product
 
$
439,405

 
$
396,381

 
$
400,780

Service & Rental
 
151,680

 
156,201

 
187,427

 
 
591,085

 
552,582

 
588,207

Engineered Components & Systems Segment:
 
 
 
 
 
 
On-Highway
 
248,083

 
215,831

 
209,575

Agriculture, Off-Highway and Other
 
215,487

 
190,604

 
187,287

Rope & Cable Solutions
 
76,011

 
65,169

 
73,813

Concrete Tensioning
 
49,198

 
52,889

 
50,491

Off Shore Mooring
 
2,747

 
18,709

 
40,037

 
 
591,526

 
543,202

 
561,203

 
 
$
1,182,611

 
$
1,095,784

 
$
1,149,410

 
 
 
 
 
 
 
Operating Profit (Loss):
 
 
 
 
 
 
Industrial Tools & Services
 
$
99,432

 
$
95,825

 
$
119,922

Engineered Components & Systems (1)
 
(51,982
)
 
(113,030
)
 
(190,654
)
General Corporate
 
(29,252
)
 
(33,031
)
 
(29,485
)
 
 
$
18,198

 
$
(50,236
)
 
$
(100,217
)
Depreciation and Amortization:
 
 
 
 
 
 
Industrial Tools & Services
 
$
15,301

 
$
15,025

 
$
15,173

Engineered Components & Systems
 
23,424

 
26,072

 
30,855

General Corporate
 
1,982

 
2,013

 
1,749

 
 
$
40,707

 
$
43,110

 
$
47,777

 
 
 
 
 
 
 
Capital Expenditures:
 
 
 
 
 
 
Industrial Tools & Services
 
$
7,799

 
$
8,614

 
$
5,502

Engineered Components & Systems
 
11,653

 
16,884

 
12,397

General Corporate
 
1,418

 
2,697

 
2,310

 
 
$
20,870

 
$
28,195

 
$
20,209

(1) Engineered Components & Systems segment operating loss includes impairment and divestiture charges of $73.1 million, $117.0 million and $186.6 million in fiscal 2018, 2017 and 2016, respectively.

 
 
August 31,
 
 
2018
 
2017
Assets:
 
 
 
 
Industrial Tools & Services
 
$
589,932

 
$
599,321

Engineered Components & Systems
 
657,370

 
713,083

General Corporate
 
234,036

 
204,551

 
 
$
1,481,338

 
$
1,516,955


In addition to the impact of changes in foreign currency exchange rates, the comparability of segment and product line information is impacted by acquisition/divestiture activities, impairment and divestiture charges, restructuring costs and related benefits. Corporate assets, which are not allocated, principally represent cash and cash equivalents, capitalized debt issuance costs and deferred income taxes.
The following tables summarize net sales and long-lived assets (fixed assets and other long-term assets, excluding deferred tax assets and debt issuance cots) by geographic region (in thousands):
 
 
Year Ended August 31,
 
 
2018
 
2017
 
2016
Net Sales:
 
 
 
 
 
 
United States
 
$
509,952

 
$
480,801

 
$
477,670

Netherlands
 
166,542

 
130,724

 
143,517

United Kingdom
 
87,182

 
84,106

 
115,183

China
 
64,031

 
68,373

 
47,312

Sweden
 
50,517

 
37,813

 
35,424

United Arab Emirates
 
43,707

 
39,974

 
55,906

France
 
40,351

 
39,563

 
42,780

Australia
 
28,510

 
38,924

 
62,779

All other
 
191,819

 
175,506

 
168,839

 
 
$
1,182,611

 
$
1,095,784

 
$
1,149,410

 
 
August 31,
 
 
2018
 
2017
Long-lived Assets:
 
 
 
 
United States
 
$
42,563

 
$
36,254

China
 
14,909

 
16,332

Netherlands
 
12,200

 
9,134

United Arab Emirates
 
7,876

 
8,451

United Kingdom
 
4,076

 
5,467

All other
 
20,111

 
22,696

 
 
$
101,735

 
$
98,334


The Company’s largest customer accounted for less than 3% of sales in each of the last three fiscal years. Export sales from domestic operations were approximately 7% of total net sales in each of the periods presented. In fiscal 2018, sales of products contributed approximately 84% of consolidated net sales, with the remaining revenue generated from engineering and technical manpower services, rental contracts and other sources. We provide certain Industrial Tools & Services segment customers both products, services and rentals; however, since our systems do not allocate costs between these sales categories, it is neither practical nor cost effective to disaggregate cost of sales separately for product sales and rental and service revenue.