XML 37 R26.htm IDEA: XBRL DOCUMENT v3.5.0.1
ACCOUNTING POLICIES (Tables)
 9 Months Ended
May 31, 2016
Accounting Policies [Abstract]  
Schedule of Changes in Accounting Method
As a result of the retrospective application of the change in accounting principle from LIFO to weighted average cost or specific identification, certain financial statement line items in the Company's condensed consolidated balance sheet as of August 31, 2015 and its condensed consolidated statements of earnings for the three and nine months ended May 31, 2015 and condensed consolidated statement of cash flows for the nine months ended May 31, 2015 were adjusted as presented below.

(in thousands, except share data)
 
As Originally Reported
 
Effect of Change
 
As Adjusted
Condensed Consolidated Statement of Earnings for the three months ended May 31, 2015:
Cost of goods sold
 
$
1,270,044

 
$
43,810

 
$
1,313,854

Income taxes
 
37,964

 
(15,838
)
 
22,126

Earnings from continuing operations
67,128

 
(27,972
)
 
39,156

Net earnings attributable to CMC
56,681

 
(27,972
)
 
28,709

 
 
 
 
 
 
 
Basic earnings per share attributable to CMC:
 
 
 
 
 
Earnings from continuing operations
$
0.58

 
$
(0.24
)
 
$
0.34

Net earnings
 
0.49

 
(0.24
)
 
0.25

 
 
 
 
 
 
 
Diluted earnings per share attributable to CMC:
 
 
 
 
 
Earnings from continuing operations
$
0.58

 
$
(0.24
)
 
$
0.34

Net earnings
 
0.49

 
(0.24
)
 
0.25

 
 
 
 
 
 
 
Condensed Consolidated Statement of Earnings for the nine months ended May 31, 2015:
Cost of goods sold
 
$
3,933,516

 
$
124,447

 
$
4,057,963

Income taxes
 
84,252

 
(44,152
)
 
40,100

Earnings from continuing operations
167,181

 
(80,295
)
 
86,886

Net earnings attributable to CMC
147,385

 
(80,295
)
 
67,090

 
 
 
 
 
 
 
Basic earnings per share attributable to CMC:
 
 
 
 
 
Earnings from continuing operations
$
1.43

 
$
(0.69
)
 
$
0.74

Net earnings
 
1.26

 
(0.69
)
 
0.57

 
 
 
 
 
 
 
Diluted earnings per share attributable to CMC:
 
 
 
 
 
Earnings from continuing operations
$
1.42

 
$
(0.68
)
 
$
0.74

Net earnings
 
1.25

 
(0.68
)
 
0.57

 
 
 
 
 
 
 
Condensed Consolidated Balance Sheet as of August 31, 2015:
Inventories, net
 
$
781,371

 
$
99,113

 
$
880,484

Current deferred tax assets
29,137

 
(25,827
)
 
3,310

Accrued expenses and other payables
279,415

 
11,262

 
290,677

Retained earnings
1,311,544

 
62,024

 
1,373,568

 
 
 
 
 
 
 
Condensed Consolidated Statement of Cash Flows for the nine months ended May 31, 2015:
Net earnings
$
147,385

 
$
(80,295
)
 
$
67,090

Deferred income taxes
26,396

 
(45,990
)
 
(19,594
)
Inventories working capital change
(111,675
)
 
114,609

 
2,934

Accounts payable, accrued expenses and other payables working capital change
(129,322
)
 
1,257

 
(128,065
)
The effect of the change in accounting principle is net of the effect of lower of cost or market adjustments.
The following table shows the effect of the change in accounting principle from LIFO to weighted average cost or specific identification on earnings from continuing operations, net earnings attributable to CMC and the related basic and diluted earnings per share attributable to CMC for the three and nine months ended May 31, 2016.

(in thousands, except share data)
 
As Computed Under LIFO
 
As Reported Under New Inventory Costing Methodologies
 
Effect of Change
Condensed Consolidated Statement of Earnings for the three months ended May 31, 2016:
Earnings from continuing operations
 
$
34,121

 
$
35,111

 
$
990

Net earnings attributable to CMC
 
18,338

 
19,328

 
990

 
 
 
 
 
 
 
Basic earnings per share attributable to CMC:
 
 
 
 
 
 
Earnings from continuing operations
 
$
0.30

 
$
0.31

 
$
0.01

Net earnings
 
0.16

 
0.17

 
0.01

 
 
 
 
 
 
 
Diluted earnings per share attributable to CMC:
 
 
 
 
 
 
Earnings from continuing operations
 
$
0.29

 
$
0.30

 
$
0.01

Net earnings
 
0.16

 
0.17

 
0.01

 
 
 
 
 
 
 
Condensed Consolidated Statement of Earnings for the nine months ended May 31, 2016:
Earnings from continuing operations
 
$
99,843

 
$
71,593

 
$
(28,250
)
Net earnings attributable to CMC
 
83,143

 
54,893

 
(28,250
)
 
 
 
 
 
 
 
Basic earnings per share attributable to CMC:
 
 
 
 
 
 
Earnings from continuing operations
 
$
0.86

 
$
0.62

 
$
(0.24
)
Net earnings
 
0.72

 
0.48

 
(0.24
)
 
 
 
 
 
 
 
Diluted earnings per share attributable to CMC:
 
 
 
 
 
 
Earnings from continuing operations
 
$
0.85

 
$
0.61

 
$
(0.24
)
Net earnings
 
0.71

 
0.47

 
(0.24
)