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BUSINESS SEGMENTS
 6 Months Ended
Feb. 28, 2017
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 benefit restoration plan 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, Changes in Business, to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, 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 February 28, 2017
 
 
Americas
 
International
 
 
 
 
 
 
(in thousands)
 
Recycling
 
Mills
 
Fabrication
 
Mill
 
Marketing and Distribution
 
Corporate
 
Eliminations
 
Continuing Operations
Net sales-unaffiliated customers
 
$
188,502

 
$
220,607

 
$
301,382

 
$
134,125

 
$
301,163

 
$
3,842

 
$
—

 
$
1,149,621

Intersegment sales
 
34,826

 
155,986

 
2,444

 
180

 
1,132

 
—

 
(194,568
)
 
—

Net sales
 
223,328

 
376,593

 
303,826

 
134,305

 
302,295

 
3,842

 
(194,568
)
 
1,149,621

Adjusted operating profit (loss) from continuing operations
 
7,766

 
51,319

 
506

 
9,430

 
6,143

 
(22,317
)
 
(576
)
 
52,271

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended February 28, 2017
 
 
Americas
 
International
 
 
 
 
 
 
(in thousands)
 
Recycling
 
Mills
 
Fabrication
 
Mill
 
Marketing and Distribution
 
Corporate
 
Eliminations
 
Continuing Operations
Net sales-unaffiliated customers
 
$
342,864

 
$
423,938

 
$
636,659

 
$
268,315

 
$
547,316

 
$
5,592

 
$
—

 
$
2,224,684

Intersegment sales
 
57,172

 
299,820

 
5,567

 
391

 
3,139

 
—

 
(366,089
)
 
—

Net sales
 
400,036

 
723,758

 
642,226

 
268,706

 
550,455

 
5,592

 
(366,089
)
 
2,224,684

Adjusted operating profit (loss) from continuing operations
 
2,668

 
88,268

 
7,217

 
19,403

 
5,177

 
(46,330
)
 
(780
)
 
75,623

Total assets as of February 28, 2017*
 
214,630

 
865,428

 
657,917

 
389,184

 
591,769

 
935,452

 
(523,506
)
 
3,130,874

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended February 29, 2016
 
 
Americas
 
International
 
 
 
 
 
 
(in thousands)
 
Recycling
 
Mills
 
Fabrication
 
Mill
 
Marketing and Distribution
 
Corporate
 
Eliminations
 
Continuing Operations
Net sales-unaffiliated customers
 
$
119,641

 
$
189,549

 
$
333,961

 
$
107,458

 
$
271,955

 
$
(2,867
)
 
$
—

 
$
1,019,697

Intersegment sales
 
28,705

 
146,880

 
2,183

 
—

 
4,921

 
—

 
(182,689
)
 
—

Net sales
 
148,346

 
336,429

 
336,144

 
107,458

 
276,876

 
(2,867
)
 
(182,689
)
 
1,019,697

Adjusted operating profit (loss) from continuing operations
 
(7,645
)
 
50,699

 
14,825

 
1,951

 
(2,293
)
 
(28,801
)
 
1,232

 
29,968

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended February 29, 2016
 
 
Americas
 
International
 
 
 
 
 
 
 
 
Recycling
 
Mills
 
Fabrication
 
Mill
 
Marketing and Distribution
 
Corporate
 
Eliminations
 
Continuing Operations
Net sales-unaffiliated customers
 
$
274,477

 
$
407,190

 
$
713,442

 
$
227,906

 
$
552,017

 
$
(476
)
 
$
—

 
$
2,174,556

Intersegment sales
 
53,076

 
313,771

 
5,016

 
—

 
7,896

 
—

 
(379,759
)
 
—

Net sales
 
327,553

 
720,961

 
718,458

 
227,906

 
559,913

 
(476
)
 
(379,759
)
 
2,174,556

Adjusted operating profit (loss) from continuing operations
 
(14,193
)
 
109,763

 
36,170

 
4,722

 
(4,462
)
 
(46,873
)
 
902

 
86,029

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 $1.0 million at February 28, 2017 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
 
Six Months Ended
(in thousands)
 
February 28, 2017
 
February 29, 2016
 
February 28, 2017
 
February 29, 2016
Earnings from continuing operations
 
$
29,639

 
$
10,849

 
$
36,813


$
36,482

Income taxes
 
9,990

 
2,064

 
12,643


13,836

Interest expense
 
12,442

 
16,625

 
25,740


34,929

Discounts on sales of accounts receivable
 
200

 
430

 
427


782

Adjusted operating profit from continuing operations
 
$
52,271

 
$
29,968

 
$
75,623


$
86,029