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SEGMENT INFORMATION | 12 Months Ended
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Aug. 31, 2024
Segment Reporting [Abstract] |
SEGMENT INFORMATION | NOTE 19. SEGMENT INFORMATION 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"), the President and Chief Executive Officer, to manage the business, make decisions about resources to be allocated to the segments and to assess performance. The Company structures its business into the following three reportable segments: North America Steel Group, Europe Steel Group and Emerging Businesses Group. 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 long-term debt, other revenue resulting from the Company's NMTC transactions 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 before interest expense, income taxes, depreciation and amortization expense and impairment expense. The following table summarizes certain financial information by reportable segment and Corporate and Other. Interest expense includes intercompany interest expense in the segments, which is eliminated within Corporate and Other.
|  | Year Ended August 31,
(in thousands) |  | 2024 |  | 2023 |  | 2022
Net sales to external customers: |  |  |  |  |  |
North America Steel Group |  | $ | 6,309,730 |  |  | $ | 6,704,305 |  |  | $ | 6,798,405 |
Europe Steel Group |  | 848,566 |  |  | 1,328,791 |  |  | 1,592,292 |
Emerging Businesses Group |  | 717,397 |  |  | 721,746 |  |  | 525,516 |
Reportable segments total |  | $ | 7,875,693 |  |  | $ | 8,754,842 |  |  | $ | 8,916,213 |
Corporate and Other |  | 50,279 |  |  | 44,691 |  |  | (2,732) |
Total |  | $ | 7,925,972 |  |  | $ | 8,799,533 |  |  | $ | 8,913,481 |
Adjusted EBITDA: |  |  |  |  |  |
North America Steel Group |  | $ | 946,350 |  |  | $ | 1,328,431 |  |  | $ | 1,482,667 |
Europe Steel Group |  | 22,517 |  |  | 48,473 |  |  | 344,659 |
Emerging Businesses Group |  | 129,530 |  |  | 138,985 |  |  | 72,583 |
Reportable segments total |  | $ | 1,098,397 |  |  | $ | 1,515,889 |  |  | $ | 1,899,909 |
Interest expense: |  |  |  |  |  |
North America Steel Group |  | $ | 184,019 |  |  | $ | 117,502 |  |  | $ | 27,310 |
Europe Steel Group |  | (5,074) |  |  | (1,165) |  |  | 2,749 |
Emerging Businesses Group |  | 2,480 |  |  | 2,291 |  |  | 558 |
Reportable segments total |  | $ | 181,425 |  |  | $ | 118,628 |  |  | $ | 30,617 |
Corporate and Other |  | (133,532) |  |  | (78,501) |  |  | 20,092 |
Total |  | $ | 47,893 |  |  | $ | 40,127 |  |  | $ | 50,709 |
Depreciation and amortization: |  |  |  |  |  |
North America Steel Group |  | $ | 192,697 |  |  | $ | 136,391 |  |  | $ | 120,026 |
Europe Steel Group |  | 34,077 |  |  | 32,607 |  |  | 28,755 |
Emerging Businesses Group |  | 43,945 |  |  | 40,725 |  |  | 17,791 |
Reportable segments total |  | $ | 270,719 |  |  | $ | 209,723 |  |  | $ | 166,572 |
Corporate and Other |  | 9,648 |  |  | 9,107 |  |  | 8,452 |
Total |  | $ | 280,367 |  |  | $ | 218,830 |  |  | $ | 175,024 |
Asset impairments: |  |  |  |  |  |
North America Steel Group |  | $ | 6,558 |  |  | $ | 3,733 |  |  | $ | 4,915 |
Europe Steel Group |  | 150 |  |  | 47 |  |  | 11 |
Emerging Businesses Group |  | — |  |  | — |  |  | — |
Reportable segments total |  | $ | 6,708 |  |  | $ | 3,780 |  |  | $ | 4,926 |
Corporate and Other |  | — |  |  | — |  |  | — |
Total |  | $ | 6,708 |  |  | $ | 3,780 |  |  | $ | 4,926 |
Capital expenditures: |  |  |  |  |  |
North America Steel Group |  | $ | 250,599 |  |  | $ | 535,927 |  |  | $ | 411,101 |
Europe Steel Group |  | 44,726 |  |  | 37,600 |  |  | 25,722 |
Emerging Businesses Group |  | 20,479 |  |  | 19,986 |  |  | 6,116 |
Reportable segments total |  | $ | 315,804 |  |  | $ | 593,513 |  |  | $ | 442,939 |
Corporate and Other |  | 8,467 |  |  | 13,152 |  |  | 7,049 |
Total |  | $ | 324,271 |  |  | $ | 606,665 |  |  | $ | 449,988 |
Assets: |  |  |  |  |  |
North America Steel Group |  | $ | 4,219,603 |  |  | $ | 4,166,521 |  |  | $ | 3,739,567 |
Europe Steel Group |  | 677,697 |  |  | 927,468 |  |  | 883,813 |
Emerging Businesses Group |  | 861,025 |  |  | 874,330 |  |  | 812,107 |
Reportable segments total |  | $ | 5,758,325 |  |  | $ | 5,968,319 |  |  | $ | 5,435,487 |
Corporate and Other |  | 1,059,514 |  |  | 670,775 |  |  | 801,540 |
Total |  | $ | 6,817,839 |  |  | $ | 6,639,094 |  |  | $ | 6,237,027 |
The following table presents a reconciliation of earnings to adjusted EBITDA for the reportable segments:
|  | Year Ended August 31,
(in thousands) |  | 2024 |  | 2023 |  | 2022
Net earnings |  | $ | 485,491 |  |  | $ | 859,760 |  |  | $ | 1,217,262 |
Interest expense |  | 47,893 |  |  | 40,127 |  |  | 50,709 |
Income taxes |  | 150,180 |  |  | 262,207 |  |  | 297,885 |
Depreciation and amortization |  | 280,367 |  |  | 218,830 |  |  | 175,024 |
Asset impairments |  | 6,708 |  |  | 3,780 |  |  | 4,926 |
Corporate and Other expenses |  | 127,758 |  |  | 131,185 |  |  | 154,103 |
Adjusted EBITDA reportable segments |  | $ | 1,098,397 |  |  | $ | 1,515,889 |  |  | $ | 1,899,909 |
The following tables display net sales to external customers by reportable segment and Corporate and Other, disaggregated by major product:
|  | Year Ended August 31, 2024
(in thousands) |  | North America Steel Group |  | Europe Steel Group |  | Emerging Businesses Group |  | Corporate and Other |  | Total
Major product: |  |  |  |  |  |  |  |  |  |
Raw materials |  | $ | 1,311,995 |  |  | $ | 17,943 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,329,938 |
Steel products |  | 2,564,472 |  |  | 672,886 |  |  | — |  |  | — |  |  | 3,237,358 |
Downstream products |  | 2,217,621 |  |  | 121,431 |  |  | 157,644 |  | — |  |  | 2,496,696 |
Construction products |  | — |  |  | — |  |  | 290,304 |  | — |  |  | 290,304 |
Ground stabilization solutions |  | — |  |  | — |  |  | 250,941 |  | — |  |  | 250,941 |
Other |  | 215,642 |  |  | 36,306 |  |  | 18,508 |  | 50,279 |  |  | 320,735 |
Net sales to external customers |  | 6,309,730 |  |  | 848,566 |  |  | 717,397 |  |  | 50,279 |  |  | 7,925,972 |
Intersegment net sales, eliminated in consolidation |  | 73,376 |  |  | 3,044 |  |  | 33,357 |  |  | (109,777) |  |  | — |
Net sales |  | $ | 6,383,106 |  |  | $ | 851,610 |  |  | $ | 750,754 |  |  | $ | (59,498) |  |  | $ | 7,925,972 |
|  | Year Ended August 31, 2023
(in thousands) |  | North America Steel Group |  | Europe Steel Group |  | Emerging Businesses Group |  | Corporate and Other |  | Total
Major product: |  |  |  |  |  |  |  |  |  |
Raw materials |  | $ | 1,324,373 |  |  | $ | 21,010 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,345,383 |
Steel products |  | 2,776,572 |  |  | 1,069,130 |  |  | — |  |  | — |  |  | 3,845,702 |
Downstream products |  | 2,417,045 |  |  | 194,414 |  |  | 118,321 |  |  | — |  |  | 2,729,780 |
Construction products |  | — |  |  | — |  |  | 332,940 |  |  | — |  |  | 332,940 |
Ground stabilization solutions |  | — |  |  | — |  |  | 256,148 |  |  | — |  |  | 256,148 |
Other |  | 186,315 |  |  | 44,237 |  |  | 14,337 |  |  | 44,691 |  |  | 289,580 |
Net sales to external customers |  | 6,704,305 |  |  | 1,328,791 |  |  | 721,746 |  |  | 44,691 |  |  | 8,799,533 |
Intersegment net sales, eliminated in consolidation |  | 93,522 |  |  | 2,353 |  |  | 22,802 |  |  | (118,677) |  |  | — |
Net sales |  | $ | 6,797,827 |  |  | $ | 1,331,144 |  |  | $ | 744,548 |  |  | $ | (73,986) |  |  | $ | 8,799,533 |
|  | Year Ended August 31, 2022
(in thousands) |  | North America Steel Group |  | Europe Steel Group |  | Emerging Businesses Group |  | Corporate and Other |  | Total
Major product: |  |  |  |  |  |  |  |  |  |
Raw materials |  | $ | 1,517,962 |  |  | $ | 25,778 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,543,740 |
Steel products |  | 2,942,741 |  |  | 1,236,854 |  |  | — |  |  | — |  |  | 4,179,595 |
Downstream products |  | 2,161,004 |  |  | 285,836 |  |  | 93,403 |  |  | — |  |  | 2,540,243 |
Construction products |  | — |  |  | — |  |  | 322,486 |  |  | — |  |  | 322,486 |
Ground stabilization solutions |  | — |  |  | — |  |  | 100,072 |  |  | — |  |  | 100,072 |
Other |  | 176,698 |  |  | 43,824 |  |  | 9,555 |  |  | (2,732) |  |  | 227,345 |
Net sales to external customers |  | 6,798,405 |  |  | 1,592,292 |  |  | 525,516 |  |  | (2,732) |  |  | 8,913,481 |
Intersegment net sales, eliminated in consolidation |  | 110,495 |  |  | 2,031 |  |  | 6,873 |  |  | (119,399) |  |  | — |
Net sales |  | $ | 6,908,900 |  |  | $ | 1,594,323 |  |  | $ | 532,389 |  |  | $ | (122,131) |  |  | $ | 8,913,481 |
The following table presents net sales by geographic area:
|  | Year Ended August 31,
(in thousands) |  | 2024 |  | 2023 |  | 2022
Geographic area: |  |  |  |  |  |
United States |  | $ | 6,465,388 |  |  | $ | 6,894,990 |  |  | $ | 6,793,023 |
Poland |  | 583,320 |  |  | 941,806 |  |  | 1,078,986 |
China |  | 215,039 |  |  | 217,779 |  |  | 246,679 |
Other |  | 662,225 |  |  | 744,958 |  |  | 794,793 |
Net sales |  | $ | 7,925,972 |  |  | $ | 8,799,533 |  |  | $ | 8,913,481 |
The following table presents long-lived assets, net of accumulated depreciation and amortization, by geographic area:
|  | August 31,
(in thousands) |  | 2024 |  | 2023 |  | 2022
Geographic area: |  |  |  |  |  |
United States |  | $ | 2,499,949 |  |  | $ | 2,343,606 |  |  | $ | 1,858,269 |
Poland |  | 236,326 |  |  | 209,966 |  |  | 180,350 |
Other |  | 43,026 |  |  | 39,704 |  |  | 35,199 |
Total long-lived assets, net |  | $ | 2,779,301 |  |  | $ | 2,593,276 |  |  | $ | 2,073,818 |

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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