Industry Segment Information

12 Months Ended

Aug. 31, 2019

Note 18 – Industry Segment Information

The Company manages its business activities in two reportable segments: Irrigation and Infrastructure. The accounting policies of the two reportable segments are the same as those described in Note 1, Description of Business and Significant Accounting Policies. 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 does include 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.

Irrigation

This reporting segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems, as well as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, wireless irrigation management, M2M communication technology, and smartphone applications. The irrigation reporting segment consists of one operating segment.

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 manufacturing and selling of large diameter steel tubing and railroad signals and structures; and providing outsourced manufacturing and production services. The infrastructure reporting segment consists of one operating segment.

The Company has no single major customer representing ten percent or more of its total revenues during fiscal 2019, 2018, or 2017.

Summarized financial information concerning the Company’s reportable segments is shown in the following tables:

($ in thousands)	2019			2018			2017
Operating revenues:
Irrigation:
North America	$	218,627		$	294,617		$	340,660
International		132,871			145,241			77,381
Irrigation total		351,498			439,858			418,041
Infrastructure		92,574			107,847			99,944
Total operating revenues	$	444,072		$	547,705		$	517,985

Operating income:
Irrigation	$	29,804		$	41,933		$	42,774
Infrastructure		16,599			23,857			20,131
Corporate		(40,288	)		(26,778	)		(22,256	)
Total operating income		6,115			39,012			40,649

Interest and other expense, net		(4,008	)		(5,159	)		(4,934	)
Earnings before income taxes	$	2,107		$	33,853		$	35,715

Total capital expenditures:
Irrigation	$	9,473		$	9,259		$	6,313
Infrastructure		4,928			938			1,562
Corporate		8,810			857			988
	$	23,211		$	11,054		$	8,863
Depreciation and amortization:
Irrigation	$	9,500		$	11,412		$	11,840
Infrastructure		3,663			4,611			4,452
Corporate		855			491			386
	$	14,018		$	16,514		$	16,678
Total assets:
Irrigation	$	292,202		$	277,712		$	337,446
Infrastructure		85,848			69,919			80,187
Corporate		122,264			152,184			88,399
	$	500,314		$	499,815		$	506,032

Summarized financial information concerning the Company’s geographical areas is shown in the following tables.

	For the years ended August 31,
($ in thousands)	2019				2018				2017
	Revenues		% of total		Revenues		% of total		Revenues		% of total
United States	$	257,719		58	$	321,698		59	$	297,261		57
International		186,353		42		226,007		41		220,724		43
Total revenues	$	444,072		100	$	547,705		100	$	517,985		100

	For the years ended August 31,
($ in thousands)	2019				2018				2017
	Long-lived tangible assets		% of total		Long-lived tangible assets		% of total		Long-lived tangible assets		% of total
United States	$	52,187		76	$	39,290		69	$	54,199		73
International		16,781		24		17,958		31		20,299		27
Total long-lived assets	$	68,968		100	$	57,248		100	$	74,498		100