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BUSINESS SEGMENTS | 9 Months Ended
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May 31, 2018
Segment Reporting [Abstract] |
Business segments | NOTE 14. BUSINESS SEGMENTS The Company's operating segments earn revenues and incur expenses 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 four reporting segments: Americas Recycling, Americas Mills, Americas Fabrication, and International Mill. See Note 1, Nature of Operations, of the audited consolidated financial statements included in the 2017 Form 10-K for more information about the reporting segments, including the types of products and services from which each reporting segment derives its net sales. During the second quarter of fiscal 2018, the Company substantially completed the exit of the International Marketing and Distribution segment. See Note 2, Changes in Business, for further information. Certain components of the International Marketing and Distribution segment which were wound down in prior periods, including the Company's steel trading operations based in the United Kingdom, did not meet the criteria for discontinued operations and thus, are included in continuing operations for all periods presented. Such activities are included in the results of Corporate and Other, and are immaterial for the three and nine months ended May 31, 2018. Corporate and Other also contains earnings or losses on assets and liabilities related to the 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 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 interest expense, income taxes 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 2017 Form 10-K. The following is a summary of certain financial information from continuing operations by reportable segment:
|  | Three Months Ended May 31, 2018
(in thousands) |  | Americas Recycling |  | Americas Mills |  | Americas Fabrication |  | International Mill |  | Corporate and Other |  | Eliminations |  | Continuing Operations
Net sales-unaffiliated customers |  | $ | 292,679 |  |  | $ | 332,459 |  |  | $ | 375,183 |  |  | $ | 201,438 |  |  | $ | 2,725 |  |  | $ | — |  |  | $ | 1,204,484 |
Intersegment sales |  | 71,419 |  |  | 220,604 |  |  | 3,058 |  |  | 299 |  |  | — |  |  | (295,380 | ) |  | — |
Net sales |  | 364,098 |  |  | 553,063 |  |  | 378,241 |  |  | 201,737 |  |  | 2,725 |  |  | (295,380 | ) |  | 1,204,484 |
Adjusted operating profit (loss) from continuing operations |  | 14,350 |  |  | 70,404 |  |  | (16,096 | ) |  | 24,370 |  |  | (22,678 | ) |  | (2,941 | ) |  | 67,409 |
|  | Nine Months Ended May 31, 2018
(in thousands) |  | Americas Recycling |  | Americas Mills |  | Americas Fabrication |  | International Mill |  | Corporate and Other |  | Eliminations |  | Continuing Operations
Net sales-unaffiliated customers |  | $ | 832,448 |  |  | $ | 841,895 |  |  | $ | 1,015,934 |  |  | $ | 633,134 |  |  | $ | 11,874 |  |  | $ | — |  |  | $ | 3,335,285 |
Intersegment sales |  | 171,618 |  |  | 550,573 |  |  | 8,059 |  |  | 846 |  |  | — |  |  | (731,096 | ) |  | — |
Net sales |  | 1,004,066 |  |  | 1,392,468 |  |  | 1,023,993 |  |  | 633,980 |  |  | 11,874 |  |  | (731,096 | ) |  | 3,335,285 |
Adjusted operating profit (loss) from continuing operations |  | 36,580 |  |  | 142,639 |  |  | (47,995 | ) |  | 72,297 |  |  | (65,648 | ) |  | (4,413 | ) |  | 133,460 |
Total assets as of May 31, 2018* |  | 310,513 |  |  | 1,078,308 |  |  | 684,929 |  |  | 476,946 |  |  | 1,128,360 |  |  | (467,603 | ) |  | 3,211,453 |
|  | Three Months Ended May 31, 2017
(in thousands) |  | Americas Recycling |  | Americas Mills |  | Americas Fabrication |  | International Mill |  | Corporate and Other |  | Eliminations |  | Continuing Operations
Net sales-unaffiliated customers |  | $ | 247,896 |  |  | $ | 243,934 |  |  | $ | 377,188 |  |  | $ | 167,409 |  |  | $ | 8,286 |  |  | $ | — |  |  | $ | 1,044,713 |
Intersegment sales |  | 46,270 |  |  | 183,342 |  |  | 2,788 |  |  | 230 |  |  | 3 |  |  | (232,633 | ) |  | — |
Net sales |  | 294,166 |  |  | 427,276 |  |  | 379,976 |  |  | 167,639 |  |  | 8,289 |  |  | (232,633 | ) |  | 1,044,713 |
Adjusted operating profit (loss) from continuing operations |  | 9,247 |  |  | 50,734 |  |  | 1,808 |  |  | 12,971 |  |  | (20,281 | ) |  | 772 |  |  | 55,251 |
|  | Nine Months Ended May 31, 2017
(in thousands) |  | Americas Recycling |  | Americas Mills |  | Americas Fabrication |  | International Mill |  | Corporate and Other |  | Eliminations |  | Continuing Operations
Net sales-unaffiliated customers |  | $ | 590,760 |  |  | $ | 667,872 |  |  | $ | 1,013,847 |  |  | $ | 436,413 |  |  | $ | 51,047 |  |  | $ | — |  |  | $ | 2,759,939 |
Intersegment sales |  | 103,442 |  |  | 483,162 |  |  | 8,355 |  |  | 621 |  |  | 643 |  |  | (596,223 | ) |  | — |
Net sales |  | 694,202 |  |  | 1,151,034 |  |  | 1,022,202 |  |  | 437,034 |  |  | 51,690 |  |  | (596,223 | ) |  | 2,759,939 |
Adjusted operating profit (loss) from continuing operations |  | 11,981 |  |  | 139,002 |  |  | 9,025 |  |  | 32,517 |  |  | (72,176 | ) |  | (22 | ) |  | 120,327 |
Total assets as of August 31, 2017* |  | 240,371 |  |  | 933,022 |  |  | 683,609 |  |  | 464,428 |  |  | 687,984 |  |  | (327,883 | ) |  | 2,681,531 |
_________________ * Excludes total assets from discontinued operations of $34.0 million at May 31, 2018 and $293.6 million at August 31, 2017. Reconciliations of earnings from continuing operations to adjusted operating profit from continuing operations are provided below:
|  | Three Months Ended May 31, |  | Nine Months Ended May 31,
(in thousands) |  | 2018 |  | 2017 |  | 2018 |  | 2017
Earnings from continuing operations |  | $ | 42,325 |  |  | $ | 31,567 |  |  | $ | 83,977 |  |  | $ | 60,245 |
Income taxes |  | 13,312 |  |  | 11,006 |  |  | 23,465 |  |  | 21,231 |
Interest expense |  | 11,511 |  |  | 12,448 |  |  | 25,303 |  |  | 38,212 |
Discounts on sales of accounts receivable |  | 261 |  |  | 230 |  |  | 715 |  |  | 639 |
Adjusted operating profit from continuing operations |  | $ | 67,409 |  |  | $ | 55,251 |  |  | $ | 133,460 |  |  | $ | 120,327 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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