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BUSINESS SEGMENTS | 12 Months Ended
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Aug. 31, 2016
Segment Reporting [Abstract] |
BUSINESS SEGMENTS | NOTE 22. BUSINESS SEGMENTS The Company's operating segments engage in business activities from which they may earn revenues and incur expenses and for which discrete financial information is available. Operating results for the operating segments are regularly reviewed by the Company's chief operating decision maker to make decisions about resources to be allocated to the segments and to assess performance. The Company's chief operating decision maker is identified as the Chief Executive Officer. Operating segments are aggregated for reporting purposes when the operating segments are identified as similar in accordance with the basic principles and aggregation criteria in the accounting standards. The Company's reporting segments are based primarily on product lines and secondarily on geographic area. The reporting segments have different lines of management responsibility as each business requires different marketing strategies and management expertise. The Company structures its business into the following five reporting segments: Americas Recycling, Americas Mills, Americas Fabrication, International Mill and International Marketing and Distribution. See Note 1, Nature of Operations, for more information about the reporting segments, including the types of products and services from which each reporting segment derives its net sales. Corporate contains earnings on BRP assets and short term investments as well as expenses of the Company's corporate headquarters and interest expense related to its long-term debt. The financial information presented for the International Marketing and Distribution segment excludes the operations of the Australian steel distribution business. This operation has been classified as discontinued operations in the consolidated statements of earnings. See Note 10, Businesses Held for Sale, Discontinued Operations and Dispositions for more information. The Company uses adjusted operating profit from continuing operations to compare and to evaluate the financial performance of its segments. Adjusted operating profit is the sum of the Company's earnings from continuing operations before income taxes, interest expense and discounts on sales of accounts receivable. Intersegment sales are generally priced at prevailing market prices. Certain corporate administrative expenses are allocated to the segments based upon the nature of the expense. The accounting policies of the segments are the same as those described in Note 2, Summary of Significant Accounting Policies. The following is a summary of certain financial information from continuing operations by reportable segment:
|  | Americas |  | International |  |  |  |  |  |
(in thousands) |  | Recycling |  | Mills |  | Fabrication |  | Mill |  | Marketing and Distribution |  | Corporate |  | Eliminations |  | Continuing Operations
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales-unaffiliated customers |  | $ | 594,275 |  |  | $ | 839,432 |  |  | $ | 1,479,125 |  |  | $ | 516,643 |  |  | $ | 1,173,969 |  |  | $ | 7,082 |  |  | $ | — |  |  | $ | 4,610,526 |
Intersegment sales |  | 111,479 |  |  | 659,416 |  |  | 10,330 |  |  | 543 |  |  | 15,627 |  |  | — |  |  | (797,395 | ) |  | — |
Net sales |  | 705,754 |  |  | 1,498,848 |  |  | 1,489,455 |  |  | 517,186 |  |  | 1,189,596 |  |  | 7,082 |  |  | (797,395 | ) |  | 4,610,526 |
Adjusted operating profit (loss) |  | (61,284 | ) |  | 209,751 |  |  | 68,602 |  |  | 28,892 |  |  | (7,087 | ) |  | (95,085 | ) |  | 5,319 |  |  | 149,108 |
Interest expense* |  | 2,210 |  |  | 1,942 |  |  | 8,356 |  |  | 2,608 |  |  | 3,524 |  |  | 43,591 |  |  | — |  |  | 62,231 |
Capital expenditures** |  | 4,891 |  |  | 110,375 |  |  | 14,958 |  |  | 27,155 |  |  | 289 |  |  | 5,587 |  |  | — |  |  | 163,255 |
Depreciation and amortization |  | 17,919 |  |  | 47,924 |  |  | 13,620 |  |  | 25,902 |  |  | 1,302 |  |  | 20,273 |  |  | — |  |  | 126,940 |
Asset impairment charges |  | 38,900 |  |  | — |  |  | — |  |  | 208 |  |  | 726 |  |  | 194 |  |  | — |  |  | 40,028 |
Total assets*** |  | 188,873 |  |  | 798,481 |  |  | 659,165 |  |  | 372,492 |  |  | 564,068 |  |  | 1,034,053 |  |  | (493,050 | ) |  | 3,124,082 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales-unaffiliated customers |  | $ | 887,068 |  |  | $ | 1,048,063 |  |  | $ | 1,612,084 |  |  | $ | 626,219 |  |  | $ | 1,814,319 |  |  | $ | 852 |  |  | $ | — |  |  | $ | 5,988,605 |
Intersegment sales |  | 135,553 |  |  | 793,749 |  |  | 12,154 |  |  | 32 |  |  | 83,298 |  |  | — |  |  | (1,024,786 | ) |  | — |
Net sales |  | 1,022,621 |  |  | 1,841,812 |  |  | 1,624,238 |  |  | 626,251 |  |  | 1,897,617 |  |  | 852 |  |  | (1,024,786 | ) |  | 5,988,605 |
Adjusted operating profit (loss) |  | (29,157 | ) |  | 255,507 |  |  | 22,424 |  |  | 17,555 |  |  | 35,376 |  |  | (77,832 | ) |  | 1,409 |  |  | 225,282 |
Interest expense* |  | 2,628 |  |  | 4,207 |  |  | 8,864 |  |  | 2,620 |  |  | 9,096 |  |  | 50,345 |  |  | — |  |  | 77,760 |
Capital expenditures** |  | 12,811 |  |  | 67,203 |  |  | 14,883 |  |  | 15,413 |  |  | 296 |  |  | 5,194 |  |  | — |  |  | 115,800 |
Depreciation and amortization |  | 17,460 |  |  | 46,780 |  |  | 17,509 |  |  | 28,087 |  |  | 1,928 |  |  | 20,739 |  |  | — |  |  | 132,503 |
Asset impairment charges |  | 7,494 |  |  | — |  |  | 1,585 |  |  | 124 |  |  | 623 |  |  | 13 |  |  | — |  |  | 9,839 |
Total assets*** |  | 261,676 |  |  | 738,669 |  |  | 713,860 |  |  | 403,706 |  |  | 798,914 |  |  | 1,044,178 |  |  | (552,577 | ) |  | 3,408,426 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net sales-unaffiliated customers |  | $ | 1,176,907 |  |  | $ | 1,198,249 |  |  | $ | 1,523,573 |  |  | $ | 822,224 |  |  | $ | 2,055,202 |  |  | $ | 14,283 |  |  | $ | — |  |  | $ | 6,790,438 |
Intersegment sales |  | 190,163 |  |  | 793,085 |  |  | 13,912 |  |  | 969 |  |  | 65,335 |  |  | — |  |  | (1,063,464 | ) |  | — |
Net sales |  | 1,367,070 |  |  | 1,991,334 |  |  | 1,537,485 |  |  | 823,193 |  |  | 2,120,537 |  |  | 14,283 |  |  | (1,063,464 | ) |  | 6,790,438 |
Adjusted operating profit (loss) |  | (5,687 | ) |  | 256,536 |  |  | 6,440 |  |  | 30,632 |  |  | 30,557 |  |  | (72,347 | ) |  | (302 | ) |  | 245,829 |
Interest expense* |  | 2,700 |  |  | 7,059 |  |  | 10,222 |  |  | 4,608 |  |  | 6,924 |  |  | 45,524 |  |  | — |  |  | 77,037 |
Capital expenditures** |  | 16,771 |  |  | 31,781 |  |  | 13,798 |  |  | 30,770 |  |  | 1,122 |  |  | 6,907 |  |  | — |  |  | 101,149 |
Depreciation and amortization |  | 14,832 |  |  | 45,392 |  |  | 19,192 |  |  | 32,209 |  |  | 2,328 |  |  | 20,269 |  |  | — |  |  | 134,222 |
Asset impairment charges |  | 1,592 |  |  | — |  |  | — |  |  | 567 |  |  | 172 |  |  | 974 |  |  | — |  |  | 3,305 |
Total assets*** |  | 316,967 |  |  | 762,549 |  |  | 734,500 |  |  | 466,449 |  |  | 822,679 |  |  | 1,048,517 |  |  | (469,093 | ) |  | 3,682,568 |
________________________ * Includes intercompany interest expense (income) in the segments and is all eliminated within Corporate. ** Excludes capital expenditures from discontinued operations that were immaterial for the years ended August 31, 2016, 2015 and 2014. *** Excludes total assets from discontinued operations of $6.8 million at August 31, 2016, $31.5 million at August 31, 2015 and $151.1 million at August 31, 2014. Reconciliations of earnings from continuing operations to adjusted operating profit from continuing operations are provided below:
|  | Year Ended August 31,
(in thousands) |  | 2016 |  | 2015 |  | 2014
Earnings from continuing operations |  | $ | 72,543 |  |  | $ | 99,131 |  |  | $ | 117,606 |
Income taxes |  | 12,647 |  |  | 46,844 |  |  | 47,351 |
Interest expense |  | 62,231 |  |  | 77,760 |  |  | 77,037 |
Discounts on sales of accounts receivable |  | 1,687 |  |  | 1,547 |  |  | 3,835 |
Adjusted operating profit from continuing operations |  | $ | 149,108 |  |  | $ | 225,282 |  |  | $ | 245,829 |
The following represents the Company's external net sales from continuing operations by major product and geographic area:
|  | Year Ended August 31,
(in thousands) |  | 2016 |  | 2015 |  | 2014
Major product information: |  |  |  |  |  |
Steel products |  | $ | 3,156,028 |  |  | $ | 4,084,092 |  |  | $ | 4,500,093 |
Industrial materials |  | 453,714 |  |  | 566,323 |  |  | 659,251 |
Nonferrous scrap |  | 364,690 |  |  | 536,856 |  |  | 639,961 |
Ferrous scrap |  | 287,713 |  |  | 428,192 |  |  | 659,578 |
Construction materials |  | 242,961 |  |  | 220,232 |  |  | 199,154 |
Nonferrous products |  | 13,456 |  |  | 10,443 |  |  | 8,761 |
Other |  | 91,964 |  |  | 142,467 |  |  | 123,640 |
Net sales |  | $ | 4,610,526 |  |  | $ | 5,988,605 |  |  | $ | 6,790,438 |
|  | Year Ended August 31,
(in thousands) |  | 2016 |  | 2015 |  | 2014
Geographic area: |  |  |  |  |  |
United States |  | $ | 3,220,459 |  |  | $ | 4,199,789 |  |  | $ | 4,510,080 |
Europe |  | 771,118 |  |  | 1,006,204 |  |  | 1,215,150 |
Asia |  | 429,910 |  |  | 578,755 |  |  | 786,512 |
Australia/New Zealand |  | 125,069 |  |  | 121,403 |  |  | 175,756 |
Other |  | 63,970 |  |  | 82,454 |  |  | 102,940 |
Net sales |  | $ | 4,610,526 |  |  | $ | 5,988,605 |  |  | $ | 6,790,438 |
The following table represents long-lived assets, net of accumulated depreciation and amortization, by geographic area:
|  | August 31,
(in thousands) |  | 2016 |  | 2015 |  | 2014
United States |  | $ | 803,245 |  |  | $ | 860,784 |  |  | $ | 864,491 |
Europe |  | 177,778 |  |  | 189,796 |  |  | 243,280 |
Asia |  | 5,863 |  |  | 7,692 |  |  | 8,814 |
Australia/New Zealand |  | 534 |  |  | 1,292 |  |  | 11,309 |
Total long-lived assets |  | $ | 987,420 |  |  | $ | 1,059,564 |  |  | $ | 1,127,894 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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