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OPERATING SEGMENTS | 12 Months Ended
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Aug. 31, 2022
Segment Reporting [Abstract] |
OPERATING SEGMENTS | NOTE 20. OPERATING 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 ("CODM") to manage the business, make decisions about resources to be allocated to the segments and to assess performance. The Company's CODM is identified as the President and Chief Executive Officer, the Senior Vice President and Chief Financial Officer and the Senior Vice President Operations. The Company structures its business into the following two reportable segments: North America and Europe. See Note 1, Nature of Operations and Summary of Significant Accounting Policies, for more information about the reportable segments, including the types of products and services from which each reportable segment derives its net sales. Corporate and Other contains earnings or losses on assets and liabilities related to the Company's BRP assets and short-term investments, expenses of the Company's corporate headquarters, interest expense related to its long-term debt and intercompany eliminations. Certain corporate administrative expenses are allocated to the segments based upon the nature of the expense. The CODM uses adjusted EBITDA to evaluate segment performance and allocate resources. Adjusted EBITDA is the sum of the Company's earnings from continuing operations before interest expense, income taxes, depreciation and amortization expense and impairment expense. The following table summarizes certain financial information from continuing operations by reportable segment and Corporate and Other:
(in thousands) |  | North America |  | Europe |  | Corporate and Other |  | Total
2022 |  |  |  |  |  |  |  |
Net sales |  | $ | 7,298,632 |  |  | $ | 1,621,642 |  |  | $ | (6,793) |  |  | $ | 8,913,481 |
Adjusted EBITDA |  | 1,553,858 |  |  | 346,051 |  |  | (154,103) |  |  | 1,745,806 |
Interest expense(1) |  | 26,798 |  |  | 3,819 |  |  | 20,092 |  |  | 50,709 |
Capital expenditures |  | 415,157 |  |  | 27,783 |  |  | 7,048 |  |  | 449,988 |
Depreciation and amortization |  | 135,322 |  |  | 31,250 |  |  | 8,452 |  |  | 175,024 |
Asset impairments |  | 4,915 |  |  | 11 |  |  | — |  |  | 4,926 |
Total assets |  | 4,467,314 |  |  | 1,056,101 |  |  | 713,612 |  |  | 6,237,027 |
2021 |  |  |  |  |  |  |  |
Net sales |  | $ | 5,670,976 |  |  | $ | 1,049,059 |  |  | $ | 9,725 |  |  | $ | 6,729,760 |
Adjusted EBITDA |  | 746,594 |  |  | 148,258 |  |  | (140,568) |  |  | 754,284 |
Interest expense(1) |  | 25,131 |  |  | 476 |  |  | 26,297 |  |  | 51,904 |
Capital expenditures |  | 134,932 |  |  | 44,002 |  |  | 5,231 |  |  | 184,165 |
Depreciation and amortization |  | 132,192 |  |  | 27,516 |  |  | 7,905 |  |  | 167,613 |
Asset impairments |  | 6,360 |  |  | 424 |  |  | — |  |  | 6,784 |
Total assets |  | 3,221,465 |  |  | 729,766 |  |  | 687,440 |  |  | 4,638,671 |
2020 |  |  |  |  |  |  |  |
Net sales |  | $ | 4,769,933 |  |  | $ | 699,140 |  |  | $ | 7,413 |  |  | $ | 5,476,486 |
Adjusted EBITDA |  | 661,176 |  |  | 62,007 |  |  | (146,575) |  |  | 576,608 |
Interest expense(1) |  | 48,413 |  |  | 982 |  |  | 12,442 |  |  | 61,837 |
Capital expenditures |  | 127,982 |  |  | 48,895 |  |  | 10,741 |  |  | 187,618 |
Depreciation and amortization |  | 132,492 |  |  | 25,674 |  |  | 7,583 |  |  | 165,749 |
Asset impairments |  | 7,606 |  |  | 5 |  |  | — |  |  | 7,611 |
Total assets(2) |  | 2,862,805 |  |  | 532,850 |  |  | 686,073 |  |  | 4,081,728 |
__________________________________ (1) Includes intercompany interest expense in the segments, which is eliminated within Corporate and Other. (2) Total assets listed in Corporate and Other at 2020 include assets from discontinued operations. The following table presents a reconciliation of earnings from continuing operations to adjusted EBITDA:
|  | Year Ended August 31,
(in thousands) |  | 2022 |  | 2021 |  | 2020
Net earnings from continuing operations |  | $ | 1,217,262 |  |  | $ | 412,865 |  |  | $ | 278,302 |
Interest expense |  | 50,709 |  |  | 51,904 |  |  | 61,837 |
Income taxes |  | 297,885 |  |  | 121,153 |  |  | 92,476 |
Depreciation and amortization |  | 175,024 |  |  | 167,613 |  |  | 165,749 |
Asset impairments |  | 4,926 |  |  | 6,784 |  |  | 7,611 |
Amortization of acquired unfavorable contract backlog |  | — |  |  | (6,035) |  |  | (29,367) |
Adjusted EBITDA |  | $ | 1,745,806 |  |  | $ | 754,284 |  |  | $ | 576,608 |
The following tables display revenue by reportable segment and Corporate and Other from external customers, disaggregated by major product. Construction-related solutions represents sales of Tensar's ground stabilization and soil reinforcement solutions and sales from our Construction Services business, which sells and rents construction-related products and equipment to concrete installers and other companies in the construction industry:
|  | Year Ended August 31, 2022
(in thousands) |  | North America |  | Europe |  | Corporate and Other |  | Total
Major product: |  |  |  |  |  |  |  |
Raw materials |  | $ | 1,504,107 |  |  | $ | 25,259 |  |  | $ | — |  |  | $ | 1,529,366 |
Steel products |  | 2,955,121 |  |  | 1,235,691 |  |  | — |  |  | 4,190,812 |
Downstream products |  | 2,245,734 |  |  | 292,136 |  |  | — |  |  | 2,537,870 |
Construction-related solutions |  | 453,517 |  |  | 27,279 |  |  | — |  |  | 480,796 |
Other |  | 138,164 |  |  | 39,206 |  |  | (2,733) |  |  | 174,637 |
Net sales from external customers |  | 7,296,643 |  |  | 1,619,571 |  |  | (2,733) |  |  | 8,913,481 |
Intersegment net sales, eliminated on consolidation |  | 1,989 |  |  | 2,071 |  |  | (4,060) |  |  | — |
Net sales |  | $ | 7,298,632 |  |  | $ | 1,621,642 |  |  | $ | (6,793) |  |  | $ | 8,913,481 |
|  | Year Ended August 31, 2021
(in thousands) |  | North America |  | Europe |  | Corporate and Other |  | Total
Major product: |  |  |  |  |  |  |  |
Raw materials |  | $ | 1,162,997 |  |  | $ | 19,841 |  |  | $ | — |  |  | $ | 1,182,838 |
Steel products |  | 2,289,975 |  |  | 808,662 |  |  | — |  |  | 3,098,637 |
Downstream products |  | 1,814,192 |  |  | 192,175 |  |  | — |  |  | 2,006,367 |
Construction-related solutions |  | 289,644 |  |  | — |  |  | — |  |  | 289,644 |
Other |  | 114,168 |  |  | 26,567 |  |  | 11,539 |  |  | 152,274 |
Net sales from external customers |  | 5,670,976 |  |  | 1,047,245 |  |  | 11,539 |  |  | 6,729,760 |
Intersegment net sales, eliminated on consolidation |  | — |  |  | 1,814 |  |  | (1,814) |  |  | — |
Net sales |  | $ | 5,670,976 |  |  | $ | 1,049,059 |  |  | $ | 9,725 |  |  | $ | 6,729,760 |
|  | Year ended August 31, 2020
(in thousands) |  | North America |  | Europe |  | Corporate and Other |  | Total
Major product: |  |  |  |  |  |  |  |
Raw materials |  | $ | 718,513 |  |  | $ | 9,692 |  |  | $ | — |  |  | $ | 728,205 |
Steel products |  | 1,738,556 |  |  | 547,047 |  |  | — |  |  | 2,285,603 |
Downstream products |  | 1,943,126 |  |  | 119,232 |  |  | — |  |  | 2,062,358 |
Construction-related solutions |  | 275,815 |  |  | — |  |  | — |  |  | 275,815 |
Other |  | 93,923 |  |  | 21,660 |  |  | 8,922 |  |  | 124,505 |
Net sales from external customers |  | 4,769,933 |  |  | 697,631 |  |  | 8,922 |  |  | 5,476,486 |
Intersegment net sales, eliminated on consolidation |  | — |  |  | 1,509 |  |  | (1,509) |  |  | — |
Net sales |  | $ | 4,769,933 |  |  | $ | 699,140 |  |  | $ | 7,413 |  |  | $ | 5,476,486 |
The following table presents net sales by geographic area:
|  | Year Ended August 31,
(in thousands) |  | 2022 |  | 2021 |  | 2020
Geographic area: |  |  |  |  |  |
United States |  | $ | 6,793,023 |  |  | $ | 5,295,447 |  |  | $ | 4,562,351 |
Poland |  | 1,078,986 |  |  | 793,075 |  |  | 549,983 |
China |  | 246,679 |  |  | 156,101 |  |  | 76,909 |
Other |  | 794,793 |  |  | 485,137 |  |  | 287,243 |
Net sales |  | $ | 8,913,481 |  |  | $ | 6,729,760 |  |  | $ | 5,476,486 |
The following table presents long-lived assets, net of accumulated depreciation and amortization, by geographic area:
|  | August 31,
(in thousands) |  | 2022 |  | 2021 |  | 2020
Geographic area: |  |  |  |  |  |
United States |  | $ | 1,858,269 |  |  | $ | 1,473,745 |  |  | $ | 1,483,127 |
Poland |  | 180,350 |  |  | 225,582 |  |  | 225,166 |
Other |  | 35,199 |  |  | 23 |  |  | 51 |
Total long-lived assets, net |  | $ | 2,073,818 |  |  | $ | 1,699,350 |  |  | $ | 1,708,344 |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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