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BUSINESS SEGMENTS
 9 Months Ended
May 31, 2016
Segment Reporting [Abstract]  
Business segments
NOTE 15. 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. The Americas Recycling segment processes scrap metals for use as a raw material by manufacturers of new metal products. The Americas Mills segment manufactures finished long steel products including reinforcing bar ("rebar"), merchant bar, light structural, some special bar quality ("SBQ") and other special sections as well as semi-finished billets for re-rolling and forging applications. The Americas Fabrication segment consists of the Company's rebar and structural fabrication operations, fence post manufacturing plants, construction-related product facilities and plants that heat-treat steel to strengthen and provide flexibility. The International Mill segment includes the Company's minimill and the Company's recycling and fabrication operations in Poland. The International Marketing and Distribution segment includes international operations for the sale, distribution and processing of steel products, ferrous and nonferrous metals and other industrial products. Additionally, this segment includes the Company's marketing and distribution divisions headquartered in the U.S. and also operates a recycling facility in Singapore. Corporate contains 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 steel distribution business in Australia. This operation has been classified as discontinued operations in the condensed consolidated statements of earnings. See Note 6, Businesses Held for Sale, Discontinued Operations and Dispositions, for more information.

The Company uses adjusted operating profit (loss), a non-GAAP financial measure, to compare and to evaluate the financial performance of its segments. Adjusted operating profit (loss) 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, of the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2015.


The following is a summary of certain financial information from continuing operations by reportable segment:
 
 
Three Months Ended May 31, 2016
 
 
Americas
 
International
 
 
 
 
 
 
(in thousands)
 
Recycling
 
Mills
 
Fabrication
 
Mill
 
Marketing and Distribution
 
Corporate
 
Eliminations
 
Continuing Operations
Net sales-unaffiliated customers
 
$
156,352

 
$
227,736

 
$
382,607

 
$
141,043

 
$
315,067

 
$
4,585

 
$
—

 
$
1,227,390

Intersegment sales
 
26,125

 
168,745

 
2,473

 
395

 
4,537

 
—

 
(202,275
)
 
—

Net sales
 
182,477

 
396,481

 
385,080

 
141,438

 
319,604

 
4,585

 
(202,275
)
 
1,227,390

Adjusted operating profit (loss)
 
(1,978
)
 
54,976

 
22,794

 
5,467

 
892

 
(22,542
)
 
1,331

 
60,940

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended May 31, 2015
 
 
Americas
 
International
 
 
 
 
 
 
(in thousands)
 
Recycling
 
Mills
 
Fabrication
 
Mill
 
Marketing and Distribution
 
Corporate
 
Eliminations
 
Continuing Operations
Net sales-unaffiliated customers
 
$
194,081

 
$
244,632

 
$
415,763

 
$
156,286

 
$
494,639

 
$
601

 
$
—

 
$
1,506,002

Intersegment sales
 
31,015

 
202,189

 
2,132

 
32

 
23,605

 
—

 
(258,973
)
 
—

Net sales
 
225,096

 
446,821

 
417,895

 
156,318

 
518,244

 
601

 
(258,973
)
 
1,506,002

Adjusted operating profit (loss)
 
(3,651
)
 
63,320

 
13,720

 
6,146

 
25,615

 
(19,502
)
 
(3,480
)
 
82,168

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended May 31, 2016
 
 
Americas
 
International
 
 
 
 
 
 
(in thousands)
 
Recycling
 
Mills
 
Fabrication
 
Mill
 
Marketing and Distribution
 
Corporate
 
Eliminations
 
Continuing Operations
Net sales-unaffiliated customers
 
$
430,829

 
$
634,926

 
$
1,096,049

 
$
368,949

 
$
867,084

 
$
4,109

 
$
—

 
$
3,401,946

Intersegment sales
 
79,201

 
482,516

 
7,489

 
395

 
12,433

 
—

 
(582,034
)
 
—

Net sales
 
510,030

 
1,117,442

 
1,103,538

 
369,344

 
879,517

 
4,109

 
(582,034
)
 
3,401,946

Adjusted operating profit (loss)
 
(16,171
)
 
164,739

 
58,964

 
10,189

 
(3,570
)
 
(69,415
)
 
2,233

 
146,969

Total assets at May 31, 2016*
 
229,557

 
758,336

 
656,055

 
360,734

 
591,105

 
1,015,991

 
(504,018
)
 
3,107,760

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended May 31, 2015
 
 
Americas
 
International
 
 
 
 
 
 
(in thousands)
 
Recycling
 
Mills
 
Fabrication
 
Mill
 
Marketing and Distribution
 
Corporate
 
Eliminations
 
Continuing Operations
Net sales-unaffiliated customers
 
$
691,382

 
$
796,218

 
$
1,165,679

 
$
472,364

 
$
1,447,316

 
$
4,150

 
$
—

 
$
4,577,109

Intersegment sales
 
108,852

 
604,299

 
9,114

 
32

 
73,972

 
—

 
(796,269
)
 
—

Net sales
 
800,234

 
1,400,517

 
1,174,793

 
472,396

 
1,521,288

 
4,150

 
(796,269
)
 
4,577,109

Adjusted operating profit (loss)
 
(15,260
)
 
195,438

 
3,770

 
11,188

 
49,669

 
(55,513
)
 
(2,248
)
 
187,044

Total assets at August 31, 2015*
 
261,676

 
738,669

 
713,860

 
403,706

 
798,914

 
1,049,815

 
(552,577
)
 
3,414,063

                                             
* Excludes total assets from discontinued operations of $2.9 million at May 31, 2016 and $31.5 million at August 31, 2015.

Reconciliations of earnings from continuing operations to adjusted operating profit are provided below:
 
 
Three Months Ended May 31,
 
Nine Months Ended May 31,
(in thousands)
 
2016
 
2015
 
2016
 
2015
Earnings from continuing operations
 
$
35,111


$
39,156

 
$
71,593


$
86,886

Income taxes
 
10,676


22,126

 
24,512


40,100

Interest expense
 
14,737


20,519

 
49,666


58,828

Discounts on sales of accounts receivable
 
416


367

 
1,198


1,230

Adjusted operating profit
 
$
60,940


$
82,168

 
$
146,969


$
187,044