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BUSINESS SEGMENTS
 3 Months Ended
Nov. 30, 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. See Note 1, Nature of Operations, of the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2016, 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 net 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 6, Discontinued Operations, for more information.

The Company uses adjusted operating profit (loss) from continuing operations to compare and 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, 2016.


The following is a summary of certain financial information from continuing operations by reportable segment:
 
 
Three Months Ended November 30, 2016
 
 
Americas
 
International
 
 
 
 
 
 
(in thousands)
 
Recycling
 
Mills
 
Fabrication
 
Mill
 
Marketing and Distribution
 
Corporate
 
Eliminations
 
Continuing Operations
Net sales-unaffiliated customers
 
$
154,362

 
$
203,331

 
$
335,277

 
$
134,190

 
$
246,153

 
$
1,750

 
$
—

 
$
1,075,063

Intersegment sales
 
22,346

 
143,834

 
3,123

 
211

 
2,007

 
—

 
(171,521
)
 
—

Net sales
 
176,708

 
347,165

 
338,400

 
134,401

 
248,160

 
1,750

 
(171,521
)
 
1,075,063

Adjusted operating profit (loss) from continuing operations
 
(5,098
)
 
36,949

 
6,711

 
9,973

 
(966
)
 
(24,013
)
 
(204
)
 
23,352

Total assets as of November 30, 2016*
 
194,056

 
791,063

 
629,925

 
360,428

 
560,109

 
950,717

 
(484,859
)
 
3,001,439

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended November 30, 2015
 
 
Americas
 
International
 
 
 
 
 
 
(in thousands)
 
Recycling
 
Mills
 
Fabrication
 
Mill
 
Marketing and Distribution
 
Corporate
 
Eliminations
 
Continuing Operations
Net sales-unaffiliated customers
 
$
154,836

 
$
217,641

 
$
379,481

 
$
120,448

 
$
280,062

 
$
2,391

 
$
—

 
$
1,154,859

Intersegment sales
 
24,371

 
166,891

 
2,833

 
—

 
2,975

 
—

 
(197,070
)
 
—

Net sales
 
179,207

 
384,532

 
382,314

 
120,448

 
283,037

 
2,391

 
(197,070
)
 
1,154,859

Adjusted operating profit (loss)
 
(6,548
)
 
59,064

 
21,345

 
2,771

 
(2,169
)
 
(18,072
)
 
(330
)
 
56,061

Total assets as of August 31, 2016*
 
188,873

 
798,481

 
659,165

 
372,492

 
564,068

 
1,034,053

 
(493,050
)
 
3,124,082

 _________________ 
* Excludes total assets from discontinued operations of $1.2 million at November 30, 2016 and $6.8 million at August 31, 2016.

Reconciliations of earnings from continuing operations to adjusted operating profit from continuing operations are provided below:
 
 
Three Months Ended November 30,
(in thousands)
 
2016
 
2015
Earnings from continuing operations
 
$
7,174


$
25,633

Income taxes
 
2,653


11,772

Interest expense
 
13,298


18,304

Discounts on sales of accounts receivable
 
227


352

Adjusted operating profit from continuing operations
 
$
23,352


$
56,061