Cover Page
Cover Page - shares | 9 Months Ended | |
May 31, 2020 | Jun. 24, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-4304 | |
Entity Registrant Name | COMMERCIAL METALS COMPANY | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-0725338 | |
Entity Address, Address Line One | 6565 N. MacArthur Blvd. | |
Entity Address, City or Town | Irving | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75039 | |
City Area Code | 214 | |
Local Phone Number | 689-4300 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | CMC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 119,068,720 | |
Entity Central Index Key | 0000022444 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --08-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | ||||
Income Statement [Abstract] | |||||||
Net sales | $ 1,341,683 | $ 1,605,872 | $ 4,067,354 | $ 4,285,997 | |||
Costs and expenses: | |||||||
Cost of goods sold | 1,116,353 | 1,364,242 | 3,385,963 | 3,735,168 | |||
Selling, general and administrative expenses | 115,965 | 115,446 | 342,502 | 331,389 | |||
Interest expense | 15,409 | 18,513 | 47,875 | 53,671 | |||
Asset impairments | 5,983 | 15 | 6,513 | 15 | |||
Total costs and expenses | 1,253,710 | 1,498,216 | 3,782,853 | 4,120,243 | |||
Earnings from continuing operations before income taxes | 87,973 | 107,656 | 284,501 | 165,754 | |||
Income taxes | 23,804 | 29,105 | 73,981 | 52,855 | |||
Earnings from continuing operations | 64,169 | 78,551 | 210,520 | 112,899 | |||
Earnings (loss) from discontinued operations before income taxes | 745 | (190) | 1,941 | (808) | |||
Income taxes (benefit) | 180 | (29) | 581 | 109 | |||
Earnings (loss) from discontinued operations | 565 | (161) | 1,360 | (917) | |||
Net earnings | $ 64,734 | $ 78,390 | $ 211,880 | $ 111,982 | |||
Basic earnings per share* | |||||||
Earnings from continuing operations (in USD per share) | [1] | $ 0.54 | $ 0.67 | $ 1.77 | $ 0.96 | ||
Earnings (loss) from discontinued operations (in USD per share) | 0 | 0 | 0.01 | [1] | (0.01) | [1] | |
Net earnings (in USD per share) | 0.54 | 0.66 | 1.78 | [1] | 0.95 | [1] | |
Diluted earnings per share* | |||||||
Earnings from continuing operations (in USD per share) | [1] | 0.53 | 0.66 | 1.75 | 0.95 | ||
Earnings (loss) from discontinued operations (in USD per share) | 0 | 0 | 0.01 | [1] | (0.01) | [1] | |
Net earnings (in USD per share) | $ 0.54 | $ 0.66 | $ 1.76 | [1] | $ 0.94 | [1] | |
Average basic shares outstanding | 119,192,962 | 118,045,362 | 118,828,870 | 117,762,945 | |||
Average diluted shares outstanding | 120,278,741 | 119,145,566 | 120,277,737 | 119,013,014 | |||
[1] | *Earnings Per Share ("EPS") is calculated independently for each component and may not sum to Net EPS due to rounding |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 64,734 | $ 78,390 | $ 211,880 | $ 111,982 |
Other comprehensive income, net of income taxes: | ||||
Foreign currency translation adjustment | (8,037) | (5,135) | (2,179) | (14,278) |
Reclassification for translation loss realized upon liquidation of investment in foreign entity | 2 | 19 | 0 | 856 |
Foreign currency translation adjustment | (8,035) | (5,116) | (2,179) | (13,422) |
Net unrealized gain (loss) on derivatives: | ||||
Unrealized holding gain (loss) | (5,143) | (145) | (8,075) | (267) |
Reclassification for loss included in net earnings | (81) | (71) | (253) | (154) |
Net unrealized gain (loss) on derivatives | (5,224) | (216) | (8,328) | (421) |
Defined benefit obligation: | ||||
Amortization of prior services | (8) | (6) | (24) | (21) |
Reclassification for settlement losses | 0 | 0 | 0 | 1,316 |
Defined benefit obligation | (8) | (6) | (24) | 1,295 |
Other comprehensive income (loss) | (13,267) | (5,338) | (10,531) | (12,548) |
Comprehensive income | $ 51,467 | $ 73,052 | $ 201,349 | $ 99,434 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | May 31, 2020 | Aug. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 462,110 | $ 192,461 |
Accounts receivable (less allowance for doubtful accounts of $8,661 and $8,403) | 880,602 | 1,016,088 |
Inventories, net | 644,887 | 692,368 |
Other current assets | 157,390 | 179,088 |
Total current assets | 2,144,989 | 2,080,005 |
Property, plant and equipment, net | 1,513,469 | 1,500,971 |
Goodwill | 64,126 | 64,138 |
Other noncurrent assets | 232,303 | 113,657 |
Total assets | 3,954,887 | 3,758,771 |
Current liabilities: | ||
Accounts payable | 230,280 | 288,005 |
Accrued expenses and other payables | 363,066 | 353,786 |
Acquired unfavorable contract backlog | 16,726 | 35,360 |
Current maturities of long-term debt and short-term borrowings | 17,271 | 17,439 |
Total current liabilities | 627,343 | 694,590 |
Deferred income taxes | 129,571 | 79,290 |
Other noncurrent liabilities | 243,511 | 133,620 |
Long-term debt | 1,153,800 | 1,227,214 |
Total liabilities | 2,154,225 | 2,134,714 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Common stock | 1,290 | 1,290 |
Additional paid-in capital | 356,846 | 358,668 |
Accumulated other comprehensive loss | (134,657) | (124,126) |
Retained earnings | 1,754,491 | 1,585,379 |
Less treasury stock 9,995,531 and 11,135,726 shares at cost | (177,520) | (197,350) |
Stockholders' equity | 1,800,450 | 1,623,861 |
Stockholders' equity attributable to noncontrolling interests | 212 | 196 |
Total stockholders' equity | 1,800,662 | 1,624,057 |
Total liabilities and stockholders' equity | $ 3,954,887 | $ 3,758,771 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | May 31, 2020 | Aug. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 8,661 | $ 8,403 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares outstanding | 119,065,133 | 117,924,938 |
Treasury stock, shares | 9,995,531 | 11,135,726 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
May 31, 2020 | May 31, 2019 | |
Cash flows from (used by) operating activities: | ||
Net earnings | $ 211,880 | $ 111,982 |
Adjustments to reconcile net earnings to cash flows from (used by) operating activities: | ||
Depreciation and amortization | 124,104 | 117,617 |
Deferred income taxes and other long-term taxes | 47,761 | 36,367 |
Stock-based compensation | 21,975 | 17,350 |
Amortization of acquired unfavorable contract backlog | (18,676) | (58,202) |
Asset impairments | 6,513 | 15 |
Net gain on disposals of subsidiaries, assets and other | (5,476) | (1,334) |
Other | 1,933 | 651 |
Changes in operating assets and liabilities | 141,819 | (75,422) |
Beneficial interest in securitized accounts receivable | 0 | (367,521) |
Net cash flows from (used by) operating activities | 531,833 | (218,497) |
Cash flows from (used by) investing activities: | ||
Capital expenditures | (134,092) | (91,753) |
Proceeds from the sale of property, plant and equipment | 14,091 | 2,503 |
Proceeds from insurance, sale of discontinued operations and other | 974 | 6,298 |
Acquisitions, net of cash acquired | (9,850) | (700,941) |
Beneficial interest in securitized accounts receivable | 0 | 367,521 |
Net cash flows used by investing activities: | (128,877) | (416,372) |
Cash flows from (used by) financing activities: | ||
Proceeds from issuance of long-term debt | 22,566 | 180,000 |
Repayments of long-term debt | (110,470) | (24,138) |
Proceeds from accounts receivable programs | 171,133 | 223,143 |
Repayments under accounts receivable programs | (171,285) | (209,363) |
Dividends | (42,768) | (42,387) |
Stock issued under incentive and purchase plans, net of forfeitures | (1,921) | (2,364) |
Contribution from noncontrolling interests | 16 | 10 |
Net cash flows from (used by) financing activities | (132,729) | 124,901 |
Effect of exchange rate changes on cash | 210 | (341) |
Increase (decrease) in cash, restricted cash and cash equivalents | 270,437 | (510,309) |
Cash, restricted cash and cash equivalents at beginning of period | 464,166 | 122,306 |
Cash, restricted cash and cash equivalents at end of period | 464,166 | 122,306 |
Supplemental information: | ||
Cash paid for income taxes | 29,566 | 6,852 |
Cash paid for interest | 49,159 | 53,773 |
Noncash activities: | ||
Liabilities related to additions of property, plant and equipment | $ 31,881 | $ 37,602 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | May 31, 2020 | May 31, 2019 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents | $ 462,110 | $ 120,315 |
Restricted cash | 2,056 | 1,991 |
Total cash, restricted cash and cash equivalents | $ 464,166 | $ 122,306 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Noncontrolling Interests |
Beginning balance at Aug. 31, 2018 | $ 1,493,583 | $ 1,290 | $ 352,674 | $ (93,677) | $ 1,446,495 | $ (213,385) | $ 186 |
Beginning balance, shares at Aug. 31, 2018 | 129,060,664 | ||||||
Beginning balance, treasury stock, shares at Aug. 31, 2018 | (12,045,106) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 111,982 | 111,982 | |||||
Other comprehensive income (loss) | (12,548) | (12,548) | |||||
Dividends | (42,387) | (42,387) | |||||
Stock-based compensation | (2,364) | (18,384) | $ 16,020 | ||||
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | 908,557 | ||||||
Stock-based compensation | 18,666 | 18,591 | 75 | ||||
Contribution of noncontrolling interests | 10 | 10 | |||||
Adoption of ASC 606 adjustment | (2,747) | (2,747) | |||||
Ending balance at May. 31, 2019 | 1,564,195 | $ 1,290 | 352,881 | (106,225) | 1,513,418 | $ (197,365) | 196 |
Ending balance, shares at May. 31, 2019 | 129,060,664 | ||||||
Ending balance, treasury stock, shares at May. 31, 2019 | (11,136,549) | ||||||
Beginning balance at Feb. 28, 2019 | 1,498,496 | $ 1,290 | 346,156 | (100,887) | 1,449,159 | $ (197,418) | 196 |
Beginning balance, shares at Feb. 28, 2019 | 129,060,664 | ||||||
Beginning balance, treasury stock, shares at Feb. 28, 2019 | (11,139,594) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 78,390 | 78,390 | |||||
Other comprehensive income (loss) | (5,338) | (5,338) | |||||
Dividends | (14,206) | (14,206) | |||||
Stock-based compensation | 492 | 439 | $ 53 | ||||
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | 3,045 | ||||||
Stock-based compensation | 6,361 | 6,286 | 75 | ||||
Ending balance at May. 31, 2019 | 1,564,195 | $ 1,290 | 352,881 | (106,225) | 1,513,418 | $ (197,365) | 196 |
Ending balance, shares at May. 31, 2019 | 129,060,664 | ||||||
Ending balance, treasury stock, shares at May. 31, 2019 | (11,136,549) | ||||||
Beginning balance at Aug. 31, 2019 | $ 1,624,057 | $ 1,290 | 358,668 | (124,126) | 1,585,379 | $ (197,350) | 196 |
Beginning balance, shares at Aug. 31, 2019 | 129,060,664 | ||||||
Beginning balance, treasury stock, shares at Aug. 31, 2019 | (11,135,726) | (11,135,726) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | $ 211,880 | 211,880 | |||||
Other comprehensive income (loss) | (10,531) | (10,531) | |||||
Dividends | (42,768) | (42,768) | |||||
Stock-based compensation | (1,921) | (21,751) | $ 19,830 | ||||
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | 1,140,195 | ||||||
Stock-based compensation | 19,929 | 19,929 | |||||
Contribution of noncontrolling interests | 16 | 16 | |||||
Ending balance at May. 31, 2020 | $ 1,800,662 | $ 1,290 | 356,846 | (134,657) | 1,754,491 | $ (177,520) | 212 |
Ending balance, shares at May. 31, 2020 | 129,060,664 | ||||||
Ending balance, treasury stock, shares at May. 31, 2020 | (9,995,531) | (9,995,531) | |||||
Beginning balance at Feb. 29, 2020 | $ 1,758,055 | $ 1,290 | 351,481 | (121,390) | 1,704,045 | $ (177,583) | 212 |
Beginning balance, shares at Feb. 29, 2020 | 129,060,664 | ||||||
Beginning balance, treasury stock, shares at Feb. 29, 2020 | (9,998,775) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings | 64,734 | 64,734 | |||||
Other comprehensive income (loss) | (13,267) | (13,267) | |||||
Dividends | (14,288) | (14,288) | |||||
Stock-based compensation | 542 | 479 | $ 63 | ||||
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | 3,244 | ||||||
Stock-based compensation | 4,886 | 4,886 | |||||
Contribution of noncontrolling interests | 0 | 0 | |||||
Ending balance at May. 31, 2020 | $ 1,800,662 | $ 1,290 | $ 356,846 | $ (134,657) | $ 1,754,491 | $ (177,520) | $ 212 |
Ending balance, shares at May. 31, 2020 | 129,060,664 | ||||||
Ending balance, treasury stock, shares at May. 31, 2020 | (9,995,531) | (9,995,531) |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per share (in USD per share) | $ 0.12 | $ 0.12 | $ 0.36 | $ 0.36 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 9 Months Ended |
May 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting policies | NOTE 1. ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") on a basis consistent with that used in the Annual Report on Form 10-K for the year ended August 31, 2019 ("2019 Form 10-K") filed by Commercial Metals Company ("CMC," and together with its consolidated subsidiaries, the "Company") with the Securities and Exchange Commission (the "SEC") and include all normal recurring adjustments necessary to present fairly the condensed consolidated balance sheets and the condensed consolidated statements of earnings, comprehensive income, cash flows and stockholders' equity for the periods indicated. These notes should be read in conjunction with the consolidated financial statements included in the 2019 Form 10-K. The results of operations for the three and nine month periods are not necessarily indicative of the results to be expected for the full fiscal year. Recently Adopted Accounting Pronouncements On September 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), as amended, (“ASU 2016-02”), using the modified retrospective transition approach. ASU 2016-02 requires a lessee to recognize a right-of-use ("ROU") asset and a lease liability on its balance sheet for all leases with terms longer than twelve months. The Company’s financial statements for periods prior to September 1, 2019 were not modified for the application of this ASU. Upon adoption of ASU 2016-02, the Company recorded the following amounts associated with operating leases in its condensed consolidated balance sheet at September 1, 2019: $113.4 million of ROU assets in other noncurrent assets, $30.9 million of lease liabilities in accrued expenses and other payables and $84.9 million of lease liabilities in other noncurrent liabilities. There was no impact to the opening balance of retained earnings as a result of implementing ASU 2016-02. The Company elected the package of three practical expedients available under the ASU. Additionally, the Company implemented appropriate changes to internal processes and controls to support recognition, subsequent measurement and disclosures. The Company's leases are primarily for office space, land and equipment. The Company determines if an arrangement is a lease at inception of a contract if the terms state the Company has the right to direct the use of and obtain substantially all the economic benefits from a specific asset identified in the contract. The ROU assets represent the Company's right to use the underlying assets for the lease term, and the lease liabilities represent the obligation to make lease payments arising from the leases. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments to be made over the lease term. Certain of the Company's lease agreements contain options to extend the lease. The Company evaluates these options on a lease-by-lease basis, and if the Company determines it is reasonably certain to be exercised, the lease term includes the extension. The Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments, and lease expense is recognized on a straight-line basis over the lease term. The incremental borrowing rate is the rate of interest the Company could borrow on a collateralized basis over a similar term with similar payments. The Company does not record leases with an initial term of twelve months or less (“short-term leases”) in its condensed consolidated balance sheets. Certain of the Company's lease agreements include payments for certain variable costs not determinable upon lease commencement, including mileage, utilities, fuel and inflation adjustments. These variable lease payments are recognized in cost of goods sold and selling, general and administrative expenses, but are not included in the ROU asset or lease liability balances. The Company's lease agreements do not contain any material residual value guarantees, restrictions or covenants. Recently Issued Accounting Pronouncements In December 2019, the Financial Accounting Standards Board issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 eliminates certain exceptions to the general principles in Accounting Standards Codification 740 and also clarifies and amends existing guidance to improve consistent application. This standard is effective for annual periods beginning after December 15, 2020, including interim periods therein. The Company currently does not expect ASU 2019-12 to have a material effect on its consolidated financial statements; however, the Company will continue to evaluate the impact of this guidance. |
CHANGES IN BUSINESS
CHANGES IN BUSINESS | 9 Months Ended |
May 31, 2020 | |
Business Combinations [Abstract] | |
Changes in Business | NOTE 2. CHANGES IN BUSINESS Fiscal 2020 Acquisition On February 3, 2020, the Company's subsidiary CMC Poland Sp. z.o.o. ("CMCP") acquired P.P.U. Ecosteel Sp. z.o.o. ("Ecosteel"), a steel mesh producer located in Zawiercie, Poland. This acquisition complements CMCP's existing mesh production and increases sales to other markets in Europe. The operating results of this facility are included in the International Mill reporting segment. Facility Closures In May 2020, the Company idled a fabrication facility and recorded $4.8 million of expense related to ROU asset impairments and employee-related charges. In October 2019, the Company closed the melting operations at its Rancho Cucamonga facility and recorded $7.2 million of expense related to severance, pension curtailment and vendor agreement terminations. Fiscal 2019 Acquisition On November 5, 2018 (the "Acquisition Date"), the Company completed the acquisition of 33 rebar fabrication facilities in the United States ("U.S."), as well as four electric arc furnace ("EAF") mini mills located in Knoxville, Tennessee; Jacksonville, Florida; Sayreville, New Jersey and Rancho Cucamonga, California from Gerdau S.A., hereinafter collectively referred to as the "Acquired Businesses." The total cash purchase price, including working capital adjustments, was $701.2 million, and was funded through a combination of domestic cash on-hand and borrowings under a term loan (the "Term Loan"). The purchase price paid was allocated between the acquired mills and fabrication facilities. The results of operations of the Acquired Businesses are reflected in the Company’s condensed consolidated financial statements from the Acquisition Date. The purchase price was allocated among assets acquired and liabilities assumed at fair value and was finalized on November 5, 2019. Pro Forma Supplemental Information Supplemental information on an unaudited pro forma basis is presented below as if the acquisition of the Acquired Businesses (the "Acquisition") occurred on September 1, 2017. The pro forma financial information is presented for comparative purposes only, based on significant estimates and assumptions, which the Company believes to be reasonable, but not necessarily indicative of future results of operations or the results that would have been reported if the Acquisition had been completed on September 1, 2017. These results were not used as part of management analysis of the financial results and performance of the Company or the Acquired Businesses. These results are adjusted, where possible, for transaction and integration-related costs. Three Months Ended May 31, Nine Months Ended May 31, (in thousands) 2019 2018 2019 2018 Pro forma net sales* $ 1,582,478 $ 1,648,962 $ 4,507,485 $ 4,560,929 Pro forma net earnings** 63,018 49,402 88,987 40,311 _________________ *Pro forma net sales for the three and nine months ended May 31, 2018 includes estimated fair value adjustments related to amortization of unfavorable contract backlog. The impact of the amortization of unfavorable contract backlog has been removed from the pro forma net sales for the three and nine months ended May 31, 2019. ** Pro forma net earnings for the three and nine months ended May 31, 2018 reflects the impact of fair value adjustments related to the amortization of unfavorable contract backlog described above. Pro forma net earnings for the nine months ended May 31, 2018 includes estimated fair value adjustments related to inventory step-up, as well as non-recurring acquisition and integration costs of approximately $49.8 million. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
May 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated other comprehensive income (loss) | NOTE 3. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables reflect the changes in accumulated other comprehensive income (loss) ("AOCI"): Three Months Ended May 31, 2020 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, February 29, 2020 $ (115,642) $ (1,998) $ (3,750) $ (121,390) Other comprehensive loss before reclassifications (8,037) (6,350) (10) (14,397) Amounts reclassified from AOCI 2 (98) — (96) Income taxes — 1,224 2 1,226 Net other comprehensive loss (8,035) (5,224) (8) (13,267) Balance, May 31, 2020 $ (123,677) $ (7,222) $ (3,758) $ (134,657) Nine Months Ended May 31, 2020 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, August 31, 2019 $ (121,498) $ 1,106 $ (3,734) $ (124,126) Other comprehensive loss before reclassifications (2,179) (9,969) (34) (12,182) Amounts reclassified from AOCI — (312) — (312) Income taxes — 1,953 10 1,963 Net other comprehensive loss (2,179) (8,328) (24) (10,531) Balance, May 31, 2020 $ (123,677) $ (7,222) $ (3,758) $ (134,657) Three Months Ended May 31, 2019 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, February 28, 2019 $ (100,943) $ 1,151 $ (1,095) $ (100,887) Other comprehensive loss before reclassifications (5,135) (86) (6) (5,227) Amounts reclassified from AOCI 19 (181) — (162) Income taxes — 51 — 51 Net other comprehensive loss (5,116) (216) (6) (5,338) Balance, May 31, 2019 $ (106,059) $ 935 $ (1,101) $ (106,225) Nine Months Ended May 31, 2019 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, August 31, 2018 $ (92,637) $ 1,356 $ (2,396) $ (93,677) Other comprehensive loss before reclassifications (14,278) (190) (25) (14,493) Amounts reclassified from AOCI 856 (330) 1,666 2,192 Income taxes (benefit) — 99 (346) (247) Net other comprehensive income (loss) (13,422) (421) 1,295 (12,548) Balance, May 31, 2019 $ (106,059) $ 935 $ (1,101) $ (106,225) Items reclassified out of AOCI were immaterial for the three and nine months ended May 31, 2020 and 2019. Thus, the corresponding line items in the condensed consolidated statements of earnings to which the items were reclassified are not presented. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
May 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | NOTE 4. REVENUE RECOGNITION In the Americas Mills, Americas Recycling and International Mill segments, revenue is recognized at a point in time concurrent with the transfer of control, which usually occurs, depending on shipping terms, upon shipment or customer receipt. In the Americas Fabrication segment, each contract represents a single performance obligation. Revenue is either recognized over time or equal to billing under an available practical expedient. For contracts where the Company provides fabricated product and installation services, revenue is recognized over time using an input method. For the three and nine months ended May 31, 2020, these contracts represented approximately 23% and 25%, respectively, of net sales in the Americas Fabrication segment. For these contracts, the measure of progress is based on contract costs incurred to date compared to total estimated contract costs, which provides a reasonable depiction of the Company’s progress towards satisfaction of the performance obligation as there is a direct relationship between costs incurred by the Company and the transfer of the fabricated product and installation services. Revenue from contracts where the Company does not provide installation services is recognized over time using an output method. For the three and nine months ended May 31, 2020, these contracts represented approximately 25% of net sales in the Americas Fabrication segment. For these contracts, the Company uses tons shipped compared to total estimated tons, which provides a reasonable depiction of the transfer of contract value to the customer, as there is a direct relationship between the units shipped by the Company and the transfer of the fabricated product. Significant judgment is required to evaluate total estimated costs used in the input method and total estimated tons in the output method. If estimated total consolidated costs on any contract are greater than the net contract revenues, the Company recognizes the entire estimated loss in the period the loss becomes known. The cumulative effect of revisions to estimates related to net contract revenues, costs to complete or total planned quantity is recorded in the period in which such revisions are identified. The Company does not exercise significant judgment in determining the transaction price. For the three and nine months ended May 31, 2020, the remaining 52% and 50%, respectively, of net sales in the Americas Fabrication segment was recognized as amounts were billed to the customer. Payment terms and conditions vary by contract type, although the Company generally requires customers to pay within 30 days of invoice date. The timing of revenue recognition for certain Americas Fabrication contracts, as described above, differs from the timing of invoicing to customers. The Company records an asset when revenue is recognized prior to invoicing and a liability when revenue is recognized after invoicing. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined the contracts do not include a significant financing component. The following table provides information about assets and liabilities from contracts with customers. (in thousands) May 31, 2020 August 31, 2019 Contract assets (included in accounts receivable) $ 55,687 $ 103,805 Contract liabilities (included in accrued expenses and other payables) 21,900 37,165 The entire contract liability as of August 31, 2019 was recognized in the nine months ended May 31, 2020. Remaining Performance Obligations As of May 31, 2020, $732.3 million has been allocated to remaining performance obligations in the Americas Fabrication segment, excluding those contracts where revenue is recognized equal to billing. Of this amount, the Company estimates the remaining performance obligations will be recognized as revenue after May 31, 2020 as follows: 40% in the first twelve months, 48% in the following twelve months, and 12% thereafter. The duration of contracts in the Americas Mills, Americas Recycling and International Mill segments are typically less than one year. Disaggregation of Revenue The following tables display revenue by reportable segment from external customers, disaggregated by major source. The Company believes disaggregating by these categories depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended May 31, 2020 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Total Steel products $ 204 $ 420,169 $ 494,519 $ 165,626 $ — $ 1,080,518 Ferrous scrap 63,735 8,698 — 61 — 72,494 Nonferrous scrap 83,650 3,091 — 2,438 — 89,179 Construction materials — — 72,637 — — 72,637 Other 432 19,320 626 5,340 1,137 26,855 Total $ 148,021 $ 451,278 $ 567,782 $ 173,465 $ 1,137 $ 1,341,683 Nine Months Ended May 31, 2020 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Total Steel products $ 459 $ 1,298,980 $ 1,436,011 $ 494,853 $ — $ 3,230,303 Ferrous scrap 188,077 26,320 1 432 — 214,830 Nonferrous scrap 309,730 9,981 — 6,680 — 326,391 Construction materials — — 206,225 — — 206,225 Other 1,441 61,556 6,303 16,196 4,109 89,605 Total $ 499,707 $ 1,396,837 $ 1,648,540 $ 518,161 $ 4,109 $ 4,067,354 Three Months Ended May 31, 2019 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Total Steel products $ 238 $ 501,925 $ 554,672 $ 199,431 $ — $ 1,256,266 Ferrous scrap 106,404 8,916 2 525 — 115,847 Nonferrous scrap 121,581 4,080 — 3,212 — 128,873 Construction materials — — 71,228 — — 71,228 Other 563 21,114 3,608 5,854 2,519 33,658 Total $ 228,786 $ 536,035 $ 629,510 $ 209,022 $ 2,519 $ 1,605,872 Nine Months Ended May 31, 2019 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Total Steel products $ 679 $ 1,294,217 $ 1,392,442 $ 584,735 $ — $ 3,272,073 Ferrous scrap 323,311 26,802 2 1,055 — 351,170 Nonferrous scrap 369,660 10,568 — 8,677 — 388,905 Construction materials — — 188,589 — — 188,589 Other 1,205 50,914 9,713 16,173 7,255 85,260 Total $ 694,855 $ 1,382,501 $ 1,590,746 $ 610,640 $ 7,255 $ 4,285,997 |
INVENTORIES, NET
INVENTORIES, NET | 9 Months Ended |
May 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories, net | NOTE 5. INVENTORIES, NET The majority of the Company's inventories are in the form of semi-finished and finished goods. Under the Company’s business model, products are sold to external customers in various stages, from semi-finished billets through fabricated steel, leading these categories to be combined. As such, at May 31, 2020 and August 31, 2019, work in process inventories were immaterial. At May 31, 2020 and August 31, 2019, the Company's raw materials inventories were $120.1 million and $143.7 million, respectively. |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 9 Months Ended |
May 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangibles | NOTE 6. GOODWILL AND OTHER INTANGIBLES Goodwill by reportable segment at May 31, 2020 is detailed in the following table: (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Consolidated Goodwill, gross* $ 9,543 $ 4,970 $ 57,428 $ 2,371 $ 74,312 Accumulated impairment losses* (9,543) — (493) (150) (10,186) Goodwill, net* $ — $ 4,970 $ 56,935 $ 2,221 $ 64,126 _________________ * The change in balance from August 31, 2019 was immaterial. The total gross carrying amounts of the Company's intangible assets subject to amortization were $20.7 million and $20.8 million, and the total net carrying amounts were $11.7 million and $13.3 million at May 31, 2020 and August 31, 2019, respectively. These assets were included in other noncurrent assets on the Company's condensed consolidated balance sheets. Intangible amortization expense from continuing operations related to such intangible assets was $0.5 million and $0.6 million, and $1.6 million and $1.7 million, for the three and nine months ended May 31, 2020 and 2019, respectively. Excluding goodwill, the Company did not have any significant intangible assets with indefinite lives at May 31, 2020. In connection with the Acquisition, the Company recorded an unfavorable contract backlog liability of $110.2 million. At May 31, 2020 and August 31, 2019, the net carrying amount of the liability was $16.7 million and $35.4 million, respectively. Amortization of the unfavorable contract backlog was $4.4 million and $18.7 million, and $23.4 million and $58.2 million, for the three and nine months ended May 31, 2020 and 2019, respectively, and was recorded as an increase to net sales in the Company’s condensed consolidated statements of earnings. |
LEASES
LEASES | 9 Months Ended |
May 31, 2020 | |
Leases [Abstract] | |
Operating Leases | NOTE 7. LEASES The following table presents the components of the total leased assets and lease liabilities and their classification in the Company's condensed consolidated balance sheet at May 31, 2020: (in thousands) Classification in Condensed Consolidated Balance Sheet May 31, 2020 Assets: Operating assets Other noncurrent assets $ 120,931 Finance assets Property, plant and equipment, net 43,477 Total leased assets $ 164,408 Liabilities: Operating lease liabilities: Current Accrued expenses and other payables $ 28,291 Long-term Other noncurrent liabilities 98,903 Total operating lease liabilities 127,194 Finance lease liabilities: Current Current maturities of long-term debt and short-term borrowings 12,668 Long-term Long-term debt 30,837 Total finance lease liabilities 43,505 Total lease liabilities $ 170,699 The components of lease cost were as follows: (in thousands) Three Months Ended May 31, 2020 Nine Months Ended May 31, 2020 Operating lease expense $ 9,129 $ 26,734 Finance lease expense: Amortization of assets 3,343 8,228 Interest on lease liabilities 456 1,322 Total finance lease expense 3,799 9,550 Variable and short term-lease expense 4,233 12,547 Total lease expense $ 17,161 $ 48,831 The weighted-average remaining lease term and discount rate for operating and finance leases are presented in the following table: May 31, 2020 Weighted-average remaining lease term (years) Operating leases 6.4 Finance leases 3.8 Weighted-average discount rate Operating leases 4.178 % Finance leases 4.180 % Cash flow and other information related to leases is included in the following table: (in thousands) Nine Months Ended May 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 27,003 Operating cash outflows from finance leases 1,243 Financing cash outflows from finance leases 9,607 ROU assets obtained in exchange for lease obligations: Operating leases 38,363 Finance leases 16,277 Maturities of lease liabilities at May 31, 2020 are presented in the following table: (in thousands) Operating Leases Finance Leases Year 1 $ 33,064 $ 14,229 Year 2 27,822 12,103 Year 3 22,499 9,728 Year 4 17,549 7,632 Year 5 12,796 3,336 Thereafter 32,975 108 Total lease payments 146,705 47,136 Less: Imputed interest 19,511 3,631 Present value of lease liabilities $ 127,194 $ 43,505 Future maturities of lease liabilities at August 31, 2019, prior to adoption of ASU 2016-02, are presented in the following table: Twelve Months Ended August 31, (in thousands) Total 2020 2021 2022 2023 2024 Thereafter Capital lease obligations $ 41,331 13,104 10,004 7,758 5,831 3,904 $ 730 Long-term non-cancelable operating leases $ 124,817 34,511 27,383 22,074 17,433 10,478 $ 12,938 |
Finance Leases | NOTE 7. LEASES The following table presents the components of the total leased assets and lease liabilities and their classification in the Company's condensed consolidated balance sheet at May 31, 2020: (in thousands) Classification in Condensed Consolidated Balance Sheet May 31, 2020 Assets: Operating assets Other noncurrent assets $ 120,931 Finance assets Property, plant and equipment, net 43,477 Total leased assets $ 164,408 Liabilities: Operating lease liabilities: Current Accrued expenses and other payables $ 28,291 Long-term Other noncurrent liabilities 98,903 Total operating lease liabilities 127,194 Finance lease liabilities: Current Current maturities of long-term debt and short-term borrowings 12,668 Long-term Long-term debt 30,837 Total finance lease liabilities 43,505 Total lease liabilities $ 170,699 The components of lease cost were as follows: (in thousands) Three Months Ended May 31, 2020 Nine Months Ended May 31, 2020 Operating lease expense $ 9,129 $ 26,734 Finance lease expense: Amortization of assets 3,343 8,228 Interest on lease liabilities 456 1,322 Total finance lease expense 3,799 9,550 Variable and short term-lease expense 4,233 12,547 Total lease expense $ 17,161 $ 48,831 The weighted-average remaining lease term and discount rate for operating and finance leases are presented in the following table: May 31, 2020 Weighted-average remaining lease term (years) Operating leases 6.4 Finance leases 3.8 Weighted-average discount rate Operating leases 4.178 % Finance leases 4.180 % Cash flow and other information related to leases is included in the following table: (in thousands) Nine Months Ended May 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 27,003 Operating cash outflows from finance leases 1,243 Financing cash outflows from finance leases 9,607 ROU assets obtained in exchange for lease obligations: Operating leases 38,363 Finance leases 16,277 Maturities of lease liabilities at May 31, 2020 are presented in the following table: (in thousands) Operating Leases Finance Leases Year 1 $ 33,064 $ 14,229 Year 2 27,822 12,103 Year 3 22,499 9,728 Year 4 17,549 7,632 Year 5 12,796 3,336 Thereafter 32,975 108 Total lease payments 146,705 47,136 Less: Imputed interest 19,511 3,631 Present value of lease liabilities $ 127,194 $ 43,505 Future maturities of lease liabilities at August 31, 2019, prior to adoption of ASU 2016-02, are presented in the following table: Twelve Months Ended August 31, (in thousands) Total 2020 2021 2022 2023 2024 Thereafter Capital lease obligations $ 41,331 13,104 10,004 7,758 5,831 3,904 $ 730 Long-term non-cancelable operating leases $ 124,817 34,511 27,383 22,074 17,433 10,478 $ 12,938 |
CREDIT ARRANGEMENTS
CREDIT ARRANGEMENTS | 9 Months Ended |
May 31, 2020 | |
Debt Disclosure [Abstract] | |
Credit arrangements | NOTE 8. CREDIT ARRANGEMENTS Long-term debt at May 31, 2020 and August 31, 2019 was as follows: (in thousands) Weighted Average Interest Rate at May 31, 2020 May 31, 2020 August 31, 2019 2027 Notes 5.375% $ 300,000 $ 300,000 2026 Notes 5.750% 350,000 350,000 2023 Notes 4.875% 330,000 330,000 Term Loan 3.113% 110,125 210,125 Poland credit facilities 1.989% 22,350 — Short-term borrowings 1.900% 2,765 3,929 Other 5.100% 21,329 23,168 Finance leases 43,505 37,699 Total debt 1,180,074 1,254,921 Less debt issuance costs 9,003 10,268 Total amounts outstanding 1,171,071 1,244,653 Less current maturities 14,506 13,510 Less short-term borrowings 2,765 3,929 Current maturities of long-term debt and short-term borrowings 17,271 17,439 Long-term debt $ 1,153,800 $ 1,227,214 The Company had no amounts drawn under the $350.0 million revolving credit facility (the "Revolver") at May 31, 2020 and August 31, 2019. The availability under the Revolver was reduced by outstanding stand-by letters of credit of $3.0 million a t May 31, 2020 and August 31, 2019. The Company also has credit facilities in Poland through its subsidiary CMCP. At May 31, 2020, CMCP's credit facilities totaled Polish zloty ("PLN") 275.0 million, or $68.6 million. These facilities expire in March 2022. At May 31, 2020, $22.4 million was outstanding under these facilities. No amounts were outstanding as of August 31, 2019. The available balance of these credit facilities was further reduced by outstanding stand-by letters of credit, guarantees, and/or other financial assurance instruments, which totaled $0.8 million and $1.1 million at May 31, 2020 and August 31, 2019, respectively. The Company's debt agreements require the Company to comply with certain non-financial and financial covenants, including an interest coverage ratio and a debt to capitalization ratio. At May 31, 2020, the Company was in compliance with all covenants contained in its debt agreements. Accounts Receivable Facilities The Company had no advance payments outstanding under the U.S. accounts receivable facility at May 31, 2020 or August 31, 2019. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
May 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | NOTE 9. DERIVATIVES The Company's global operations and product lines expose it to risks from fluctuations in metal commodity prices, foreign currency exchange rates, interest rates and natural gas, electricity and other energy prices. One objective of the Company's risk management program is to mitigate these risks using derivative instruments. The Company enters into (i) metal commodity futures and forward contracts to mitigate the risk of unanticipated changes in gross margin due to price volatility in these commodities, (ii) foreign currency forward contracts that match the expected settlements for purchases and sales denominated in foreign currencies and (iii) energy derivatives to mitigate the risk related to price volatility of electricity and natural gas. At May 31, 2020, the notional values of the Company's foreign currency and commodity commitments were $80.6 million and $45.3 million, respectively. At August 31, 2019, the notional values of the Company's foreign currency and commodity contract commitments were $94.1 million and $42.6 million, respectively. The following table provides information regarding the Company's commodity contract commitments at May 31, 2020: Commodity Long/Short Total Aluminum Long 2,300 MT Aluminum Short 1,100 MT Copper Long 318 MT Copper Short 4,990 MT Electricity Long 2,000,000 MW(h) _________________ MT = Metric Ton MW(h) = Megawatt hour The Company designates only those contracts which closely match the terms of the underlying transaction as hedges for accounting purposes. Certain foreign currency and commodity contracts were not designated as hedges for accounting purposes, although management believes they are essential economic hedges. The following table summarizes activity related to the Company's derivative instruments not designated as hedging instruments recognized in the condensed consolidated statements of earnings. All other activity related to the Company's derivative instruments and hedged items was immaterial for the periods presented. Three Months Ended May 31, Nine Months Ended May 31, Derivatives Not Designated as Hedging Instruments (in thousands) Location 2020 2019 2020 2019 Commodity Cost of goods sold $ 1,465 $ 3,408 $ 1,881 $ 143 Foreign exchange SG&A expenses (890) (72) (870) (472) Gain (loss) before income taxes $ 575 $ 3,336 $ 1,011 $ (329) |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
May 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value | NOTE 10. FAIR VALUE The Company has established a fair value hierarchy which prioritizes the inputs to the valuation techniques used to measure fair value into three levels. These levels are determined based on the lowest level input that is significant to the fair value measurement. Levels within the hierarchy are defined as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets and liabilities; Level 2 - Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable, either directly or indirectly; and Level 3 - Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The following tables summarize information regarding the Company's financial assets and financial liabilities that were measured at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using (in thousands) May 31, 2020 Quoted Prices in Significant Other Significant Assets: Investment deposit accounts (1) $ 344,307 $ 344,307 $ — $ — Commodity derivative assets (2) 193 193 — — Foreign exchange derivative assets (2) 911 — 911 — Liabilities: Commodity derivative liabilities (2) 10,899 870 — 10,029 Foreign exchange derivative liabilities (2) 893 — 893 — Fair Value Measurements at Reporting Date Using (in thousands) August 31, 2019 Quoted Prices in Significant Other Significant Assets: Investment deposit accounts (1) $ 66,240 $ 66,240 $ — $ — Commodity derivative assets (2) 1,269 1,269 — — Foreign exchange derivative assets (2) 569 — 569 — Liabilities: Commodity derivative liabilities (2) 99 99 — — Foreign exchange derivative liabilities (2) 899 — 899 — _________________ (1) Investment deposit accounts are short-term in nature, and the value is determined by principal plus interest. The investment portfolio mix can change each period based on the Company's assessment of investment options. (2) Derivative assets and liabilities classified as Level 1 are commodity futures contracts valued based on quoted market prices in the London Metal Exchange or New York Mercantile Exchange. Amounts in Level 2 are based on broker quotes in the over-the-counter market. Fair value of Level 3 derivative liabilities is based on unobservable inputs in which there is little or no market data, which requires management’s own assumptions within an internally developed cash flow model. Further discussion regarding the Company's use of derivative instruments is included in Note 9, Derivatives. There were no material non-recurring fair value remeasurements during the three and nine months ended May 31, 2020. The carrying values of the Company's short-term items approximate fair value. The carrying values and estimated fair values of the Company's financial assets and liabilities that are not required to be measured at fair value on the condensed consolidated balance sheets were as follows: May 31, 2020 August 31, 2019 (in thousands) Fair Value Hierarchy Carrying Value Fair Value Carrying Value Fair Value 2027 Notes (1) Level 2 $ 300,000 $ 300,495 $ 300,000 $ 303,810 2026 Notes (1) Level 2 350,000 358,145 350,000 363,444 2023 Notes (1) Level 2 330,000 334,970 330,000 342,098 Term Loan (2) Level 2 110,125 110,125 210,125 210,125 Poland credit facilities (2) Level 2 22,350 22,350 — — Short-term borrowings (2) Level 2 2,765 2,765 3,929 3,929 _________________ (1) The fair value of the notes was determined based on indicated market values. (2) The Term Loan, Poland credit facilities and short-term borrowings contain variable interest rates and carrying value approximates fair value. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 9 Months Ended |
May 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation plans | NOTE 11. STOCK-BASED COMPENSATION PLANS The Company's stock-based compensation plans are described in Note 15, Stock-Based Compensation Plans, to the consolidated financial statements in the 2019 Form 10-K. In general, restricted stock units granted during 2020 vest ratably over a period of three years. Subject to the achievement of performance targets established by the Compensation Committee of CMC's Board of Directors, performance stock units granted during 2020 vest after a period of three years. During the nine months ended May 31, 2020 and 2019, the Company granted the following awards under its stock-based compensation plans: May 31, 2020 May 31, 2019 (in thousands, except per share data) Shares Granted Weighted Average Grant Date Fair Value Shares Granted Weighted Average Grant Date Fair Value Equity method 1,521 $ 18.32 1,505 $ 17.75 Liability method 426 N/A 374 N/A During the three and nine months ended May 31, 2020 and 2019, the Company recorded immaterial mark-to-market adjustments on liability awards. At May 31, 2020, the Company had outstanding 781,508 equivalent shares accounted for under the liability method. The Company expects 742,433 equivalent shares to vest. The following table summarizes total stock-based compensation expense, including fair value remeasurements, which was mainly included in selling, general and administrative expenses on the Company's condensed consolidated statements of earnings: Three Months Ended May 31, Nine Months Ended May 31, (in thousands) 2020 2019 2020 2019 Stock-based compensation expense $ 6,170 $ 7,342 $ 21,975 $ 17,350 |
STOCKHOLDERS EQUITY AND EARNING
STOCKHOLDERS EQUITY AND EARNINGS PER SHARE | 9 Months Ended |
May 31, 2020 | |
Earnings Per Share [Abstract] | |
Stockholder's equity and earnings per share | NOTE 12. STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE The calculations of basic and diluted earnings per share from continuing operations were as follows: Three Months Ended May 31, Nine Months Ended May 31, (in thousands, except share data) 2020 2019 2020 2019 Earnings from continuing operations $ 64,169 $ 78,551 $ 210,520 $ 112,899 Basic earnings per share: Shares outstanding for basic earnings per share 119,192,962 118,045,362 118,828,870 117,762,945 Basic earnings per share from continuing operations $ 0.54 $ 0.67 $ 1.77 $ 0.96 Diluted earnings per share: Shares outstanding for basic earnings per share 119,192,962 118,045,362 118,828,870 117,762,945 Effect of dilutive securities: Stock-based incentive/purchase plans 1,085,779 1,100,204 1,448,867 1,250,069 Shares outstanding for diluted earnings per share 120,278,741 119,145,566 120,277,737 119,013,014 Diluted earnings per share from continuing operations $ 0.53 $ 0.66 $ 1.75 $ 0.95 Anti-dilutive shares not included above were immaterial for all periods presented. Restricted stock is included in the number of shares of common stock issued and outstanding but omitted from the basic earnings per share calculation until the shares vest. During the first quarter of fiscal 2015, CMC's Board of Directors authorized a share repurchase program under which CMC may repurchase up to $100.0 million of shares of common stock. During the nine months ended May 31, 2020, CMC did not |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
May 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | NOTE 13. COMMITMENTS AND CONTINGENCIES Legal and Environmental Matters In the ordinary course of conducting its business, the Company becomes involved in litigation, administrative proceedings and governmental investigations, including environmental matters. See Note 19, Commitments and Contingencies, to the consolidated financial statements in the 2019 Form 10-K. The Company has received notices from the U.S. Environmental Protection Agency ("EPA") or state agencies with similar responsibility that it is considered a potentially responsible party at several sites, none of which are owned by the Company, and may be obligated under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA") or similar state statutes to conduct remedial investigations, feasibility studies, remediation and/or removal of alleged releases of hazardous substances or to reimburse the EPA for such activities. The Company is involved in litigation or administrative proceedings with regard to several of these sites in which the Company is contesting, or at the appropriate time may contest, its liability at the sites. In addition, the Company has received information requests with regard to other sites which may be under consideration by the EPA as potential CERCLA sites. Some of these environmental matters or other proceedings may result in fines, penalties or judgments being assessed against the Company. At May 31, 2020 and August 31, 2019, the Company had $0.7 million accrued for cleanup and remediation costs in connection with CERCLA sites. The estimation process is based on currently available information which is, in many cases, preliminary and incomplete. Total environmental liabilities, including CERCLA sites, were $3.4 million and $3.6 million at May 31, 2020 and August 31, 2019, respectively, of which $2.7 million and $1.8 million were classified as other long-term liabilities at May 31, 2020 and August 31, 2019, respectively. These amounts have not been discounted to their present values. Due to evolving remediation technology, changing regulations, possible third-party contributions, the inherent shortcomings of the estimation process and other factors, amounts accrued could vary significantly from amounts paid. Historically, the amounts the Company has ultimately paid for such remediation activities have not been material. Management believes that adequate provisions have been made in the Company's condensed consolidated financial statements for the potential impact of these contingencies, and that the outcomes of the suits and proceedings described above, and other miscellaneous litigation and proceedings now pending, will not have a material adverse effect on the business, results of operations or financial condition of the Company. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended |
May 31, 2020 | |
Segment Reporting [Abstract] | |
Business segments | NOTE 14. BUSINESS SEGMENTS The Company structures its business into the following four reporting segments: Americas Recycling, Americas Mills, Americas Fabrication and International Mill. The Company's reporting segments are based primarily on product lines and secondarily on geographic area. See Note 1, Nature of Operations, of the consolidated financial statements included in the 2019 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. Corporate and Other contains earnings or losses on assets and liabilities related to the Company's Benefit Restoration Plan assets and short-term investments, expenses of the Company's corporate headquarters, interest expense related to its long-term debt and intercompany eliminations. The Company uses adjusted EBITDA from continuing operations to compare and evaluate the financial performance of its segments. 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. 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 consolidated financial statements included in the 2019 Form 10-K. The following is a summary of certain financial information from continuing operations by reportable segment: Three Months Ended May 31, 2020 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Continuing Operations Net sales-unaffiliated customers $ 148,021 $ 451,278 $ 567,782 $ 173,465 $ 1,137 $ 1,341,683 Intersegment sales 55,134 289,534 1,466 352 (346,486) — Net sales 203,155 740,812 569,248 173,817 (345,349) 1,341,683 Adjusted EBITDA (1,664) 133,174 31,896 14,270 (30,894) 146,782 Nine Months Ended May 31, 2020 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Continuing Operations Net sales-unaffiliated customers $ 499,707 $ 1,396,837 $ 1,648,540 $ 518,161 $ 4,109 $ 4,067,354 Intersegment sales 173,793 844,908 4,303 1,124 (1,024,128) — Net sales 673,500 2,241,745 1,652,843 519,285 (1,020,019) 4,067,354 Adjusted EBITDA 7,507 413,890 65,437 39,080 (81,606) 444,308 Total assets at May 31, 2020* 216,270 1,609,574 1,052,324 506,192 570,527 3,954,887 _________________ *Total assets listed in Corporate and Other includes assets from discontinued operations. Three Months Ended May 31, 2019 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Continuing Operations Net sales-unaffiliated customers $ 228,786 $ 536,035 $ 629,510 $ 209,022 $ 2,519 $ 1,605,872 Intersegment sales 60,229 330,868 3,537 343 (394,977) — Net sales 289,015 866,903 633,047 209,365 (392,458) 1,605,872 Adjusted EBITDA 12,331 158,114 (23,289) 24,120 (27,305) 143,971 Nine Months Ended May 31, 2019 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Continuing Operations Net sales-unaffiliated customers $ 694,855 $ 1,382,501 $ 1,590,746 $ 610,640 $ 7,255 $ 4,285,997 Intersegment sales 183,244 860,964 10,248 947 (1,055,403) — Net sales 878,099 2,243,465 1,600,994 611,587 (1,048,148) 4,285,997 Adjusted EBITDA 37,889 384,383 (109,863) 77,436 (111,005) 278,840 Total assets at August 31, 2019 * 257,517 1,667,366 1,106,420 464,177 263,291 3,758,771 _________________ *Total assets listed in Corporate and Other includes assets from discontinued operations. The following table presents a reconciliation of earnings from continuing operations to adjusted EBITDA from continuing operations: Three Months Ended May 31, Nine Months Ended May 31, (in thousands) 2020 2019 2020 2019 Earnings from continuing operations $ 64,169 $ 78,551 $ 210,520 $ 112,899 Interest expense 15,409 18,513 47,875 53,671 Income taxes 23,804 29,105 73,981 52,855 Depreciation and amortization 41,765 41,181 124,095 117,602 Asset impairments 5,983 15 6,513 15 Amortization of acquired unfavorable contract backlog (4,348) (23,394) (18,676) (58,202) Adjusted EBITDA from continuing operations $ 146,782 $ 143,971 $ 444,308 $ 278,840 |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 9 Months Ended |
May 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting principles | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") on a basis consistent with that used in the Annual Report on Form 10-K for the year ended August 31, 2019 ("2019 Form 10-K") filed by Commercial Metals Company ("CMC," and together with its consolidated subsidiaries, the "Company") with the Securities and Exchange Commission (the "SEC") and include all normal recurring adjustments necessary to present fairly the condensed consolidated balance sheets and the condensed consolidated statements of earnings, comprehensive income, cash flows and stockholders' equity for the periods indicated. These notes should be read in conjunction with the consolidated financial statements included in the 2019 Form 10-K. The results of operations for the three and nine month periods are not necessarily indicative of the results to be expected for the full fiscal year. |
Recent accounting pronouncements | Recently Adopted Accounting Pronouncements On September 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842), as amended, (“ASU 2016-02”), using the modified retrospective transition approach. ASU 2016-02 requires a lessee to recognize a right-of-use ("ROU") asset and a lease liability on its balance sheet for all leases with terms longer than twelve months. The Company’s financial statements for periods prior to September 1, 2019 were not modified for the application of this ASU. Upon adoption of ASU 2016-02, the Company recorded the following amounts associated with operating leases in its condensed consolidated balance sheet at September 1, 2019: $113.4 million of ROU assets in other noncurrent assets, $30.9 million of lease liabilities in accrued expenses and other payables and $84.9 million of lease liabilities in other noncurrent liabilities. There was no impact to the opening balance of retained earnings as a result of implementing ASU 2016-02. The Company elected the package of three practical expedients available under the ASU. Additionally, the Company implemented appropriate changes to internal processes and controls to support recognition, subsequent measurement and disclosures. The Company's leases are primarily for office space, land and equipment. The Company determines if an arrangement is a lease at inception of a contract if the terms state the Company has the right to direct the use of and obtain substantially all the economic benefits from a specific asset identified in the contract. The ROU assets represent the Company's right to use the underlying assets for the lease term, and the lease liabilities represent the obligation to make lease payments arising from the leases. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments to be made over the lease term. Certain of the Company's lease agreements contain options to extend the lease. The Company evaluates these options on a lease-by-lease basis, and if the Company determines it is reasonably certain to be exercised, the lease term includes the extension. The Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments, and lease expense is recognized on a straight-line basis over the lease term. The incremental borrowing rate is the rate of interest the Company could borrow on a collateralized basis over a similar term with similar payments. The Company does not record leases with an initial term of twelve months or less (“short-term leases”) in its condensed consolidated balance sheets. Certain of the Company's lease agreements include payments for certain variable costs not determinable upon lease commencement, including mileage, utilities, fuel and inflation adjustments. These variable lease payments are recognized in cost of goods sold and selling, general and administrative expenses, but are not included in the ROU asset or lease liability balances. The Company's lease agreements do not contain any material residual value guarantees, restrictions or covenants. Recently Issued Accounting Pronouncements In December 2019, the Financial Accounting Standards Board issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 eliminates certain exceptions to the general principles in Accounting Standards Codification 740 and also clarifies and amends existing guidance to improve consistent application. This standard is effective for annual periods beginning after December 15, 2020, including interim periods therein. The Company currently does not expect ASU 2019-12 to have a material effect on its consolidated financial statements; however, the Company will continue to evaluate the impact of this guidance. |
Fair value measurement | The Company has established a fair value hierarchy which prioritizes the inputs to the valuation techniques used to measure fair value into three levels. These levels are determined based on the lowest level input that is significant to the fair value measurement. Levels within the hierarchy are defined as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets and liabilities; Level 2 - Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable, either directly or indirectly; and |
CHANGES IN BUSINESS (Tables)
CHANGES IN BUSINESS (Tables) | 9 Months Ended |
May 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Pro Forma Information | These results are adjusted, where possible, for transaction and integration-related costs. Three Months Ended May 31, Nine Months Ended May 31, (in thousands) 2019 2018 2019 2018 Pro forma net sales* $ 1,582,478 $ 1,648,962 $ 4,507,485 $ 4,560,929 Pro forma net earnings** 63,018 49,402 88,987 40,311 _________________ *Pro forma net sales for the three and nine months ended May 31, 2018 includes estimated fair value adjustments related to amortization of unfavorable contract backlog. The impact of the amortization of unfavorable contract backlog has been removed from the pro forma net sales for the three and nine months ended May 31, 2019. ** Pro forma net earnings for the three and nine months ended May 31, 2018 reflects the impact of fair value adjustments related to the amortization of unfavorable contract backlog described above. Pro forma net earnings for the nine months ended May 31, 2018 includes estimated fair value adjustments related to inventory step-up, as well as non-recurring acquisition and integration costs of approximately $49.8 million. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
May 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following tables reflect the changes in accumulated other comprehensive income (loss) ("AOCI"): Three Months Ended May 31, 2020 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, February 29, 2020 $ (115,642) $ (1,998) $ (3,750) $ (121,390) Other comprehensive loss before reclassifications (8,037) (6,350) (10) (14,397) Amounts reclassified from AOCI 2 (98) — (96) Income taxes — 1,224 2 1,226 Net other comprehensive loss (8,035) (5,224) (8) (13,267) Balance, May 31, 2020 $ (123,677) $ (7,222) $ (3,758) $ (134,657) Nine Months Ended May 31, 2020 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, August 31, 2019 $ (121,498) $ 1,106 $ (3,734) $ (124,126) Other comprehensive loss before reclassifications (2,179) (9,969) (34) (12,182) Amounts reclassified from AOCI — (312) — (312) Income taxes — 1,953 10 1,963 Net other comprehensive loss (2,179) (8,328) (24) (10,531) Balance, May 31, 2020 $ (123,677) $ (7,222) $ (3,758) $ (134,657) Three Months Ended May 31, 2019 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, February 28, 2019 $ (100,943) $ 1,151 $ (1,095) $ (100,887) Other comprehensive loss before reclassifications (5,135) (86) (6) (5,227) Amounts reclassified from AOCI 19 (181) — (162) Income taxes — 51 — 51 Net other comprehensive loss (5,116) (216) (6) (5,338) Balance, May 31, 2019 $ (106,059) $ 935 $ (1,101) $ (106,225) Nine Months Ended May 31, 2019 (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance, August 31, 2018 $ (92,637) $ 1,356 $ (2,396) $ (93,677) Other comprehensive loss before reclassifications (14,278) (190) (25) (14,493) Amounts reclassified from AOCI 856 (330) 1,666 2,192 Income taxes (benefit) — 99 (346) (247) Net other comprehensive income (loss) (13,422) (421) 1,295 (12,548) Balance, May 31, 2019 $ (106,059) $ 935 $ (1,101) $ (106,225) |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
May 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Information avout Assets and Liabilities from Contracts with Customers | The following table provides information about assets and liabilities from contracts with customers. (in thousands) May 31, 2020 August 31, 2019 Contract assets (included in accounts receivable) $ 55,687 $ 103,805 Contract liabilities (included in accrued expenses and other payables) 21,900 37,165 |
Disaggregation of Revenue | The following tables display revenue by reportable segment from external customers, disaggregated by major source. The Company believes disaggregating by these categories depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Three Months Ended May 31, 2020 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Total Steel products $ 204 $ 420,169 $ 494,519 $ 165,626 $ — $ 1,080,518 Ferrous scrap 63,735 8,698 — 61 — 72,494 Nonferrous scrap 83,650 3,091 — 2,438 — 89,179 Construction materials — — 72,637 — — 72,637 Other 432 19,320 626 5,340 1,137 26,855 Total $ 148,021 $ 451,278 $ 567,782 $ 173,465 $ 1,137 $ 1,341,683 Nine Months Ended May 31, 2020 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Total Steel products $ 459 $ 1,298,980 $ 1,436,011 $ 494,853 $ — $ 3,230,303 Ferrous scrap 188,077 26,320 1 432 — 214,830 Nonferrous scrap 309,730 9,981 — 6,680 — 326,391 Construction materials — — 206,225 — — 206,225 Other 1,441 61,556 6,303 16,196 4,109 89,605 Total $ 499,707 $ 1,396,837 $ 1,648,540 $ 518,161 $ 4,109 $ 4,067,354 Three Months Ended May 31, 2019 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Total Steel products $ 238 $ 501,925 $ 554,672 $ 199,431 $ — $ 1,256,266 Ferrous scrap 106,404 8,916 2 525 — 115,847 Nonferrous scrap 121,581 4,080 — 3,212 — 128,873 Construction materials — — 71,228 — — 71,228 Other 563 21,114 3,608 5,854 2,519 33,658 Total $ 228,786 $ 536,035 $ 629,510 $ 209,022 $ 2,519 $ 1,605,872 Nine Months Ended May 31, 2019 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Total Steel products $ 679 $ 1,294,217 $ 1,392,442 $ 584,735 $ — $ 3,272,073 Ferrous scrap 323,311 26,802 2 1,055 — 351,170 Nonferrous scrap 369,660 10,568 — 8,677 — 388,905 Construction materials — — 188,589 — — 188,589 Other 1,205 50,914 9,713 16,173 7,255 85,260 Total $ 694,855 $ 1,382,501 $ 1,590,746 $ 610,640 $ 7,255 $ 4,285,997 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 9 Months Ended |
May 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | Goodwill by reportable segment at May 31, 2020 is detailed in the following table: (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Consolidated Goodwill, gross* $ 9,543 $ 4,970 $ 57,428 $ 2,371 $ 74,312 Accumulated impairment losses* (9,543) — (493) (150) (10,186) Goodwill, net* $ — $ 4,970 $ 56,935 $ 2,221 $ 64,126 _________________ * The change in balance from August 31, 2019 was immaterial. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
May 31, 2020 | |
Leases [Abstract] | |
Schedule of Balance Sheet Components of Leases | The following table presents the components of the total leased assets and lease liabilities and their classification in the Company's condensed consolidated balance sheet at May 31, 2020: (in thousands) Classification in Condensed Consolidated Balance Sheet May 31, 2020 Assets: Operating assets Other noncurrent assets $ 120,931 Finance assets Property, plant and equipment, net 43,477 Total leased assets $ 164,408 Liabilities: Operating lease liabilities: Current Accrued expenses and other payables $ 28,291 Long-term Other noncurrent liabilities 98,903 Total operating lease liabilities 127,194 Finance lease liabilities: Current Current maturities of long-term debt and short-term borrowings 12,668 Long-term Long-term debt 30,837 Total finance lease liabilities 43,505 Total lease liabilities $ 170,699 |
Lease Cost | The components of lease cost were as follows: (in thousands) Three Months Ended May 31, 2020 Nine Months Ended May 31, 2020 Operating lease expense $ 9,129 $ 26,734 Finance lease expense: Amortization of assets 3,343 8,228 Interest on lease liabilities 456 1,322 Total finance lease expense 3,799 9,550 Variable and short term-lease expense 4,233 12,547 Total lease expense $ 17,161 $ 48,831 The weighted-average remaining lease term and discount rate for operating and finance leases are presented in the following table: May 31, 2020 Weighted-average remaining lease term (years) Operating leases 6.4 Finance leases 3.8 Weighted-average discount rate Operating leases 4.178 % Finance leases 4.180 % |
Cash Flow and Other Information Related to Leases | Cash flow and other information related to leases is included in the following table: (in thousands) Nine Months Ended May 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 27,003 Operating cash outflows from finance leases 1,243 Financing cash outflows from finance leases 9,607 ROU assets obtained in exchange for lease obligations: Operating leases 38,363 Finance leases 16,277 |
Maturity of Operating Lease Liabilities | Maturities of lease liabilities at May 31, 2020 are presented in the following table: (in thousands) Operating Leases Finance Leases Year 1 $ 33,064 $ 14,229 Year 2 27,822 12,103 Year 3 22,499 9,728 Year 4 17,549 7,632 Year 5 12,796 3,336 Thereafter 32,975 108 Total lease payments 146,705 47,136 Less: Imputed interest 19,511 3,631 Present value of lease liabilities $ 127,194 $ 43,505 |
Maturity of Finance Lease Liabilities | Maturities of lease liabilities at May 31, 2020 are presented in the following table: (in thousands) Operating Leases Finance Leases Year 1 $ 33,064 $ 14,229 Year 2 27,822 12,103 Year 3 22,499 9,728 Year 4 17,549 7,632 Year 5 12,796 3,336 Thereafter 32,975 108 Total lease payments 146,705 47,136 Less: Imputed interest 19,511 3,631 Present value of lease liabilities $ 127,194 $ 43,505 |
Future Maturity of Lease Obligations Prior to Adoption of ASU 2016-02 | Future maturities of lease liabilities at August 31, 2019, prior to adoption of ASU 2016-02, are presented in the following table: Twelve Months Ended August 31, (in thousands) Total 2020 2021 2022 2023 2024 Thereafter Capital lease obligations $ 41,331 13,104 10,004 7,758 5,831 3,904 $ 730 Long-term non-cancelable operating leases $ 124,817 34,511 27,383 22,074 17,433 10,478 $ 12,938 |
CREDIT ARRANGEMENTS (Tables)
CREDIT ARRANGEMENTS (Tables) | 9 Months Ended |
May 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term debt, including the deferred gain from the termination of the interest rate swaps | Long-term debt at May 31, 2020 and August 31, 2019 was as follows: (in thousands) Weighted Average Interest Rate at May 31, 2020 May 31, 2020 August 31, 2019 2027 Notes 5.375% $ 300,000 $ 300,000 2026 Notes 5.750% 350,000 350,000 2023 Notes 4.875% 330,000 330,000 Term Loan 3.113% 110,125 210,125 Poland credit facilities 1.989% 22,350 — Short-term borrowings 1.900% 2,765 3,929 Other 5.100% 21,329 23,168 Finance leases 43,505 37,699 Total debt 1,180,074 1,254,921 Less debt issuance costs 9,003 10,268 Total amounts outstanding 1,171,071 1,244,653 Less current maturities 14,506 13,510 Less short-term borrowings 2,765 3,929 Current maturities of long-term debt and short-term borrowings 17,271 17,439 Long-term debt $ 1,153,800 $ 1,227,214 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
May 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Commodity contract commitments | The following table provides information regarding the Company's commodity contract commitments at May 31, 2020: Commodity Long/Short Total Aluminum Long 2,300 MT Aluminum Short 1,100 MT Copper Long 318 MT Copper Short 4,990 MT Electricity Long 2,000,000 MW(h) _________________ MT = Metric Ton |
Derivatives not designated as hedging instruments | The following table summarizes activity related to the Company's derivative instruments not designated as hedging instruments recognized in the condensed consolidated statements of earnings. All other activity related to the Company's derivative instruments and hedged items was immaterial for the periods presented. Three Months Ended May 31, Nine Months Ended May 31, Derivatives Not Designated as Hedging Instruments (in thousands) Location 2020 2019 2020 2019 Commodity Cost of goods sold $ 1,465 $ 3,408 $ 1,881 $ 143 Foreign exchange SG&A expenses (890) (72) (870) (472) Gain (loss) before income taxes $ 575 $ 3,336 $ 1,011 $ (329) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
May 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial assets and financial liabilities measured at fair value on a recurring basis | The following tables summarize information regarding the Company's financial assets and financial liabilities that were measured at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using (in thousands) May 31, 2020 Quoted Prices in Significant Other Significant Assets: Investment deposit accounts (1) $ 344,307 $ 344,307 $ — $ — Commodity derivative assets (2) 193 193 — — Foreign exchange derivative assets (2) 911 — 911 — Liabilities: Commodity derivative liabilities (2) 10,899 870 — 10,029 Foreign exchange derivative liabilities (2) 893 — 893 — Fair Value Measurements at Reporting Date Using (in thousands) August 31, 2019 Quoted Prices in Significant Other Significant Assets: Investment deposit accounts (1) $ 66,240 $ 66,240 $ — $ — Commodity derivative assets (2) 1,269 1,269 — — Foreign exchange derivative assets (2) 569 — 569 — Liabilities: Commodity derivative liabilities (2) 99 99 — — Foreign exchange derivative liabilities (2) 899 — 899 — _________________ (1) Investment deposit accounts are short-term in nature, and the value is determined by principal plus interest. The investment portfolio mix can change each period based on the Company's assessment of investment options. (2) Derivative assets and liabilities classified as Level 1 are commodity futures contracts valued based on quoted market prices in the London Metal Exchange or New York Mercantile Exchange. Amounts in Level 2 are based on broker quotes in the over-the-counter market. Fair value of Level 3 derivative liabilities is based on unobservable inputs in which there is little or no market data, which requires management’s own assumptions within an internally developed cash flow model. Further discussion regarding the Company's use of derivative instruments is included in Note 9, Derivatives. |
Financial assets and liabilities not required to be measured at fair value | The carrying values and estimated fair values of the Company's financial assets and liabilities that are not required to be measured at fair value on the condensed consolidated balance sheets were as follows: May 31, 2020 August 31, 2019 (in thousands) Fair Value Hierarchy Carrying Value Fair Value Carrying Value Fair Value 2027 Notes (1) Level 2 $ 300,000 $ 300,495 $ 300,000 $ 303,810 2026 Notes (1) Level 2 350,000 358,145 350,000 363,444 2023 Notes (1) Level 2 330,000 334,970 330,000 342,098 Term Loan (2) Level 2 110,125 110,125 210,125 210,125 Poland credit facilities (2) Level 2 22,350 22,350 — — Short-term borrowings (2) Level 2 2,765 2,765 3,929 3,929 _________________ (1) The fair value of the notes was determined based on indicated market values. (2) The Term Loan, Poland credit facilities and short-term borrowings contain variable interest rates and carrying value approximates fair value. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 9 Months Ended |
May 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Based Awards Granted | During the nine months ended May 31, 2020 and 2019, the Company granted the following awards under its stock-based compensation plans: May 31, 2020 May 31, 2019 (in thousands, except per share data) Shares Granted Weighted Average Grant Date Fair Value Shares Granted Weighted Average Grant Date Fair Value Equity method 1,521 $ 18.32 1,505 $ 17.75 Liability method 426 N/A 374 N/A |
Schedule of Stock-based Compensation Expense | The following table summarizes total stock-based compensation expense, including fair value remeasurements, which was mainly included in selling, general and administrative expenses on the Company's condensed consolidated statements of earnings: Three Months Ended May 31, Nine Months Ended May 31, (in thousands) 2020 2019 2020 2019 Stock-based compensation expense $ 6,170 $ 7,342 $ 21,975 $ 17,350 |
STOCKHOLDERS_ EQUITY AND EARNIN
STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE (Tables) | 9 Months Ended |
May 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculations of the basic and diluted earnings per share from continuing operations | The calculations of basic and diluted earnings per share from continuing operations were as follows: Three Months Ended May 31, Nine Months Ended May 31, (in thousands, except share data) 2020 2019 2020 2019 Earnings from continuing operations $ 64,169 $ 78,551 $ 210,520 $ 112,899 Basic earnings per share: Shares outstanding for basic earnings per share 119,192,962 118,045,362 118,828,870 117,762,945 Basic earnings per share from continuing operations $ 0.54 $ 0.67 $ 1.77 $ 0.96 Diluted earnings per share: Shares outstanding for basic earnings per share 119,192,962 118,045,362 118,828,870 117,762,945 Effect of dilutive securities: Stock-based incentive/purchase plans 1,085,779 1,100,204 1,448,867 1,250,069 Shares outstanding for diluted earnings per share 120,278,741 119,145,566 120,277,737 119,013,014 Diluted earnings per share from continuing operations $ 0.53 $ 0.66 $ 1.75 $ 0.95 Anti-dilutive shares not included above were immaterial for all periods presented. Restricted stock is included in the number of shares of common stock issued and outstanding but omitted from the basic earnings per share calculation until the shares vest. |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 9 Months Ended |
May 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of certain financial information from continuing operations by reportable segment | The following is a summary of certain financial information from continuing operations by reportable segment: Three Months Ended May 31, 2020 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Continuing Operations Net sales-unaffiliated customers $ 148,021 $ 451,278 $ 567,782 $ 173,465 $ 1,137 $ 1,341,683 Intersegment sales 55,134 289,534 1,466 352 (346,486) — Net sales 203,155 740,812 569,248 173,817 (345,349) 1,341,683 Adjusted EBITDA (1,664) 133,174 31,896 14,270 (30,894) 146,782 Nine Months Ended May 31, 2020 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Continuing Operations Net sales-unaffiliated customers $ 499,707 $ 1,396,837 $ 1,648,540 $ 518,161 $ 4,109 $ 4,067,354 Intersegment sales 173,793 844,908 4,303 1,124 (1,024,128) — Net sales 673,500 2,241,745 1,652,843 519,285 (1,020,019) 4,067,354 Adjusted EBITDA 7,507 413,890 65,437 39,080 (81,606) 444,308 Total assets at May 31, 2020* 216,270 1,609,574 1,052,324 506,192 570,527 3,954,887 _________________ *Total assets listed in Corporate and Other includes assets from discontinued operations. Three Months Ended May 31, 2019 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Continuing Operations Net sales-unaffiliated customers $ 228,786 $ 536,035 $ 629,510 $ 209,022 $ 2,519 $ 1,605,872 Intersegment sales 60,229 330,868 3,537 343 (394,977) — Net sales 289,015 866,903 633,047 209,365 (392,458) 1,605,872 Adjusted EBITDA 12,331 158,114 (23,289) 24,120 (27,305) 143,971 Nine Months Ended May 31, 2019 (in thousands) Americas Recycling Americas Mills Americas Fabrication International Mill Corporate and Other Continuing Operations Net sales-unaffiliated customers $ 694,855 $ 1,382,501 $ 1,590,746 $ 610,640 $ 7,255 $ 4,285,997 Intersegment sales 183,244 860,964 10,248 947 (1,055,403) — Net sales 878,099 2,243,465 1,600,994 611,587 (1,048,148) 4,285,997 Adjusted EBITDA 37,889 384,383 (109,863) 77,436 (111,005) 278,840 Total assets at August 31, 2019 * 257,517 1,667,366 1,106,420 464,177 263,291 3,758,771 _________________ |
Reconciliations of earnings from continuing operations to adjusted operating profit | The following table presents a reconciliation of earnings from continuing operations to adjusted EBITDA from continuing operations: Three Months Ended May 31, Nine Months Ended May 31, (in thousands) 2020 2019 2020 2019 Earnings from continuing operations $ 64,169 $ 78,551 $ 210,520 $ 112,899 Interest expense 15,409 18,513 47,875 53,671 Income taxes 23,804 29,105 73,981 52,855 Depreciation and amortization 41,765 41,181 124,095 117,602 Asset impairments 5,983 15 6,513 15 Amortization of acquired unfavorable contract backlog (4,348) (23,394) (18,676) (58,202) Adjusted EBITDA from continuing operations $ 146,782 $ 143,971 $ 444,308 $ 278,840 |
ACCOUNTING POLICIES - Recently
ACCOUNTING POLICIES - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
May 31, 2020 | May 31, 2019 | Sep. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating assets | $ 120,931 | ||
Current | 28,291 | ||
Long-term | 98,903 | ||
Cumulative effect on retained earnings of adoption of ASU 2016-02 | $ (2,747) | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect on retained earnings of adoption of ASU 2016-02 | $ 0 | ||
Other Noncurrent Assets | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating assets | $ 113,400 | ||
Accrued Expenses and Other Payables | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Current | 30,900 | ||
Other Noncurrent Liabilities | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Long-term | $ 84,900 |
CHANGES IN BUSINESS (Details)
CHANGES IN BUSINESS (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
May 31, 2020USD ($) | Oct. 31, 2019USD ($) | May 31, 2019USD ($) | May 31, 2018USD ($) | May 31, 2019USD ($) | May 31, 2018USD ($) | Nov. 05, 2018USD ($)mini_millfabrication_facility | |
Business Combinations [Abstract] | |||||||
Number of rebar fabrication facilities acquired | fabrication_facility | 33 | ||||||
Number of electric arc furnace mini mills | mini_mill | 4 | ||||||
Cash purchase price | $ 701,200 | ||||||
Pro forma net sales | $ 1,582,478 | $ 1,648,962 | $ 4,507,485 | $ 4,560,929 | |||
Pro forma net earnings (loss) | $ 63,018 | $ 49,402 | $ 88,987 | 40,311 | |||
Non-recurring acquisition and integration costs | $ 49,800 | ||||||
Facility closure costs | $ 4,800 | $ 7,200 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI by Components) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ (121,390) | $ (100,887) | $ (124,126) | $ (93,677) |
Other comprehensive income before reclassifications | (14,397) | (5,227) | (12,182) | (14,493) |
Amounts reclassified from AOCI | (96) | (162) | (312) | 2,192 |
Income taxes | 1,226 | 51 | 1,963 | (247) |
Other comprehensive income (loss) | (13,267) | (5,338) | (10,531) | (12,548) |
Ending balance | (134,657) | (106,225) | (134,657) | (106,225) |
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (115,642) | (100,943) | (121,498) | (92,637) |
Other comprehensive income before reclassifications | (8,037) | (5,135) | (2,179) | (14,278) |
Amounts reclassified from AOCI | 2 | 19 | 0 | 856 |
Income taxes | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (8,035) | (5,116) | (2,179) | (13,422) |
Ending balance | (123,677) | (106,059) | (123,677) | (106,059) |
Unrealized Gain (Loss) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (1,998) | 1,151 | 1,106 | 1,356 |
Other comprehensive income before reclassifications | (6,350) | (86) | (9,969) | (190) |
Amounts reclassified from AOCI | (98) | (181) | (312) | (330) |
Income taxes | 1,224 | 51 | 1,953 | 99 |
Other comprehensive income (loss) | (5,224) | (216) | (8,328) | (421) |
Ending balance | (7,222) | 935 | (7,222) | 935 |
Defined Benefit Obligation | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (3,750) | (1,095) | (3,734) | (2,396) |
Other comprehensive income before reclassifications | (10) | (6) | (34) | (25) |
Amounts reclassified from AOCI | 0 | 0 | 0 | 1,666 |
Income taxes | 2 | 0 | 10 | (346) |
Other comprehensive income (loss) | (8) | (6) | (24) | 1,295 |
Ending balance | $ (3,758) | $ (1,101) | $ (3,758) | $ (1,101) |
REVENUE RECOGNITION - Revenue R
REVENUE RECOGNITION - Revenue Recognition Method (Details) - Americas Fabrication | 3 Months Ended | 9 Months Ended |
May 31, 2020 | May 31, 2020 | |
Recognized as Amounts are Billed | ||
Disaggregation of Revenue [Line Items] | ||
Contract as percent of total segment revenue (percent) | 52.00% | 50.00% |
Fabricated Product and Installation Services | Recognized over Time | ||
Disaggregation of Revenue [Line Items] | ||
Contract as percent of total segment revenue (percent) | 23.00% | 25.00% |
Fabricated Product without Installation Services | Recognized over Time | ||
Disaggregation of Revenue [Line Items] | ||
Contract as percent of total segment revenue (percent) | 25.00% |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands | May 31, 2020 | Aug. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets (included in other current assets) | $ 55,687 | $ 103,805 |
Contract liabilities (included in accrued expenses and other payables) | $ 21,900 | $ 37,165 |
REVENUE RECOGNITION - Remaining
REVENUE RECOGNITION - Remaining Performance Obligations (Details) $ in Millions | May 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 732.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (percent) | 40.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-06-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (percent) | 48.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-06-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (percent) | 12.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,341,683 | $ 1,605,872 | $ 4,067,354 | $ 4,285,997 |
Steel Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,080,518 | 1,256,266 | 3,230,303 | 3,272,073 |
Ferrous Scrap | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 72,494 | 115,847 | 214,830 | 351,170 |
Nonferrous Scrap | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 89,179 | 128,873 | 326,391 | 388,905 |
Construction Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 72,637 | 71,228 | 206,225 | 188,589 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 26,855 | 33,658 | 89,605 | 85,260 |
Americas Recycling | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 148,021 | 228,786 | 499,707 | 694,855 |
Americas Recycling | Steel Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 204 | 238 | 459 | 679 |
Americas Recycling | Ferrous Scrap | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 63,735 | 106,404 | 188,077 | 323,311 |
Americas Recycling | Nonferrous Scrap | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 83,650 | 121,581 | 309,730 | 369,660 |
Americas Recycling | Construction Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Americas Recycling | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 432 | 563 | 1,441 | 1,205 |
Americas Mills | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 451,278 | 536,035 | 1,396,837 | 1,382,501 |
Americas Mills | Steel Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 420,169 | 501,925 | 1,298,980 | 1,294,217 |
Americas Mills | Ferrous Scrap | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 8,698 | 8,916 | 26,320 | 26,802 |
Americas Mills | Nonferrous Scrap | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3,091 | 4,080 | 9,981 | 10,568 |
Americas Mills | Construction Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Americas Mills | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 19,320 | 21,114 | 61,556 | 50,914 |
Americas Fabrication | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 567,782 | 629,510 | 1,648,540 | 1,590,746 |
Americas Fabrication | Steel Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 494,519 | 554,672 | 1,436,011 | 1,392,442 |
Americas Fabrication | Ferrous Scrap | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 2 | 1 | 2 |
Americas Fabrication | Nonferrous Scrap | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Americas Fabrication | Construction Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 72,637 | 71,228 | 206,225 | 188,589 |
Americas Fabrication | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 626 | 3,608 | 6,303 | 9,713 |
International Mill | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 173,465 | 209,022 | 518,161 | 610,640 |
International Mill | Steel Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 165,626 | 199,431 | 494,853 | 584,735 |
International Mill | Ferrous Scrap | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 61 | 525 | 432 | 1,055 |
International Mill | Nonferrous Scrap | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,438 | 3,212 | 6,680 | 8,677 |
International Mill | Construction Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
International Mill | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 5,340 | 5,854 | 16,196 | 16,173 |
Corporate | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,137 | 2,519 | 4,109 | 7,255 |
Corporate | Steel Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Corporate | Ferrous Scrap | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Corporate | Nonferrous Scrap | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Corporate | Construction Materials | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Corporate | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,137 | $ 2,519 | $ 4,109 | $ 7,255 |
INVENTORIES, NET (Narrative) (D
INVENTORIES, NET (Narrative) (Details) - USD ($) $ in Millions | May 31, 2020 | Aug. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 120.1 | $ 143.7 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | Aug. 31, 2019 | Nov. 05, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Gross carrying amounts of the intangible assets subject to amortization | $ 20,700 | $ 20,700 | $ 20,800 | |||
Net carrying amount of intangible assets subject to amortization | 11,700 | 11,700 | 13,300 | |||
Amortization expense for intangible assets | 500 | $ 600 | 1,600 | $ 1,700 | ||
Acquired unfavorable contract backlog | 16,726 | 16,726 | $ 35,360 | $ 110,200 | ||
Amortization of unfavorable contract backlog | $ 4,400 | $ 23,400 | $ 18,700 | $ 58,200 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES (Changes in the Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands | May 31, 2020 | Aug. 31, 2019 |
Goodwill [Line Items] | ||
Goodwill, gross | $ 74,312 | |
Accumulated impairment losses | (10,186) | |
Goodwill, net | 64,126 | $ 64,138 |
Americas Recycling | ||
Goodwill [Line Items] | ||
Goodwill, gross | 9,543 | |
Accumulated impairment losses | (9,543) | |
Goodwill, net | 0 | |
Americas Mills | ||
Goodwill [Line Items] | ||
Goodwill, gross | 4,970 | |
Accumulated impairment losses | 0 | |
Goodwill, net | 4,970 | |
Americas Fabrication | ||
Goodwill [Line Items] | ||
Goodwill, gross | 57,428 | |
Accumulated impairment losses | (493) | |
Goodwill, net | 56,935 | |
International Mill | ||
Goodwill [Line Items] | ||
Goodwill, gross | 2,371 | |
Accumulated impairment losses | (150) | |
Goodwill, net | $ 2,221 |
LEASES - Balance Sheet Componen
LEASES - Balance Sheet Components (Details) $ in Thousands | May 31, 2020USD ($) |
Assets: | |
Operating assets | $ 120,931 |
Finance assets | 43,477 |
Total leased assets | 164,408 |
Operating lease liabilities: | |
Current | 28,291 |
Long-term | 98,903 |
Total operating lease liabilities | 127,194 |
Finance lease liabilities: | |
Current | 12,668 |
Long-term | 30,837 |
Total finance lease liabilities | 43,505 |
Total lease liabilities | $ 170,699 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
May 31, 2020 | May 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 9,129 | $ 26,734 |
Finance lease expense: | ||
Amortization of assets | 3,343 | 8,228 |
Interest on lease liabilities | 456 | 1,322 |
Total finance lease expense | 3,799 | 9,550 |
Variable and short term-lease expense | 4,233 | 12,547 |
Total lease expense | $ 17,161 | $ 48,831 |
LEASES - Weighted Average Lease
LEASES - Weighted Average Lease Terms and Discount Rates (Details) | May 31, 2020 |
Leases [Abstract] | |
Operating leases, remaining term | 6 years 4 months 24 days |
Finance leases, remaining term | 3 years 9 months 18 days |
Operating leases, weighted average discount rate | 4.178% |
Finance leases, weighted average discount rate | 4.18% |
LEASES - Cash Flow and Other In
LEASES - Cash Flow and Other Information Related to Leases (Details) $ in Thousands | 9 Months Ended |
May 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash outflows from operating leases | $ 27,003 |
Operating cash outflows from finance leases | 1,243 |
Financing cash outflows from finance leases | 9,607 |
ROU assets obtained in exchange for lease obligations: | |
Operating leases | 38,363 |
Finance leases | $ 16,277 |
LEASES - Maturity of Lease Liab
LEASES - Maturity of Lease Liabilities (Details) $ in Thousands | May 31, 2020USD ($) |
Operating Leases | |
Year 1 | $ 33,064 |
Year 2 | 27,822 |
Year 3 | 22,499 |
Year 5 | 12,796 |
Year 4 | 17,549 |
Thereafter | 32,975 |
Total lease payments | 146,705 |
Less: Imputed interest | 19,511 |
Present value of lease liabilities | 127,194 |
Finance Leases | |
Year 1 | 14,229 |
Year 2 | 12,103 |
Year 3 | 9,728 |
Year 4 | 7,632 |
Year 5 | 3,336 |
Thereafter | 108 |
Total lease payments | 47,136 |
Less: Imputed interest | 3,631 |
Present value of lease liabilities | $ 43,505 |
LEASES - Future Lease Obligatio
LEASES - Future Lease Obligations Prior to Adoption of ASU 2016-02 (Details) $ in Thousands | Aug. 31, 2019USD ($) |
Capital lease obligations | |
Total | $ 41,331 |
2020 | 13,104 |
2021 | 10,004 |
2022 | 7,758 |
2023 | 5,831 |
2024 | 3,904 |
Thereafter | 730 |
Long-term non-cancelable operating leases | |
Total | 124,817 |
2020 | 34,511 |
2021 | 27,383 |
2022 | 22,074 |
2023 | 17,433 |
2024 | 10,478 |
Thereafter | $ 12,938 |
CREDIT ARRANGEMENTS (Long-term
CREDIT ARRANGEMENTS (Long-term Debt, Including the Deferred Gain from the Termination of the Interest Rate Swaps) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | Aug. 31, 2019 | |
Debt Instrument [Line Items] | |||||
Total debt | $ 1,180,074 | $ 1,180,074 | $ 1,254,921 | ||
Less debt issuance costs | 9,003 | 9,003 | 10,268 | ||
Total amounts outstanding | 1,171,071 | 1,171,071 | 1,244,653 | ||
Less current maturities | 14,506 | 14,506 | 13,510 | ||
Less short-term borrowings | 2,765 | 2,765 | 3,929 | ||
Current maturities of long-term debt and short-term borrowings | 17,271 | 17,271 | 17,439 | ||
Long-term debt | 1,153,800 | 1,153,800 | 1,227,214 | ||
Depreciation and amortization | $ 41,765 | $ 41,181 | $ 124,095 | $ 117,602 | |
2027 Notes | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 5.375% | 5.375% | |||
Total debt | $ 300,000 | $ 300,000 | 300,000 | ||
2026 Notes | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 5.75% | 5.75% | |||
Total debt | $ 350,000 | $ 350,000 | 350,000 | ||
2023 Notes | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 4.875% | 4.875% | |||
Total debt | $ 330,000 | $ 330,000 | 330,000 | ||
Term Loan | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 3.113% | 3.113% | |||
Total debt | $ 110,125 | $ 110,125 | 210,125 | ||
Poland credit facilities | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 1.989% | 1.989% | |||
Total debt | $ 22,350 | $ 22,350 | 0 | ||
Short-term borrowings | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate, short term | 1.90% | 1.90% | |||
Total debt | $ 2,765 | $ 2,765 | 3,929 | ||
Other | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate, short term | 5.10% | 5.10% | |||
Total debt | $ 21,329 | $ 21,329 | 23,168 | ||
Finance leases | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 43,505 | $ 43,505 | $ 37,699 |
CREDIT ARRANGEMENTS (Narrative)
CREDIT ARRANGEMENTS (Narrative) (Details) | May 31, 2020PLN (zł) | May 31, 2020USD ($) | Aug. 31, 2019USD ($) |
CMCP | |||
Debt Instrument [Line Items] | |||
Revolving credit facility current borrowing capacity | zł 275,000,000 | $ 68,600,000 | |
Revolving credit facility, amount drawn | 22,400,000 | $ 0 | |
Stand by letters of credit outstanding amount | 800,000 | 1,100,000 | |
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Revolving credit facility current borrowing capacity | 350,000,000 | 350,000,000 | |
Revolving credit facility, amount drawn | 0 | 0 | |
Stand-by letters of credit | |||
Debt Instrument [Line Items] | |||
Stand by letters of credit outstanding amount | 3,000,000 | 3,000,000 | |
U.S. Program | |||
Debt Instrument [Line Items] | |||
Advances outstanding under transfer of receivables programs | 0 | 0 | |
Poland Program | |||
Debt Instrument [Line Items] | |||
Transfer of accounts receivable program limit | zł 220,000,000 | 54,900,000 | |
Advances outstanding under transfer of receivables programs | $ 2,800,000 | $ 3,900,000 |
DERIVATIVES (Narrative) (Detail
DERIVATIVES (Narrative) (Details) - USD ($) $ in Millions | May 31, 2020 | Aug. 31, 2019 |
Foreign exchange | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 80.6 | $ 94.1 |
Commodity | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 45.3 | $ 42.6 |
DERIVATIVES (Commodity Contract
DERIVATIVES (Commodity Contract Commitments) (Details) MWh in Millions | 9 Months Ended |
May 31, 2020MWht | |
Aluminum | Long | |
Derivative [Line Items] | |
Commodity contract commitments | 2,300 |
Aluminum | Short | |
Derivative [Line Items] | |
Commodity contract commitments | 1,100 |
Copper | Long | |
Derivative [Line Items] | |
Commodity contract commitments | 318 |
Copper | Short | |
Derivative [Line Items] | |
Commodity contract commitments | 4,990 |
Electricity | Long | |
Derivative [Line Items] | |
Commodity contract commitment, electricity | MWh | 2 |
DERIVATIVES (Derivatives Not De
DERIVATIVES (Derivatives Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) before income taxes for derivatives not designated as hedges | $ 575 | $ 3,336 | $ 1,011 | $ (329) |
Commodity | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) before income taxes for derivatives not designated as hedges | 1,465 | 3,408 | 1,881 | 143 |
Foreign exchange | SG&A expenses | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) before income taxes for derivatives not designated as hedges | $ (890) | $ (72) | $ (870) | $ (472) |
FAIR VALUE (Narrative) (Details
FAIR VALUE (Narrative) (Details) | 9 Months Ended |
May 31, 2020levels | |
Fair Value Disclosures [Abstract] | |
Number of fair value hierarchy | 3 |
FAIR VALUE (Financial Assets an
FAIR VALUE (Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis) (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | May 31, 2020 | Aug. 31, 2019 |
Money market investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market investments | $ 344,307 | $ 66,240 |
Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 193 | 1,269 |
Derivative liabilities | 10,899 | 99 |
Foreign exchange | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 911 | 569 |
Derivative liabilities | 893 | 899 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market investments | 344,307 | 66,240 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 193 | 1,269 |
Derivative liabilities | 870 | 99 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign exchange | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Money market investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market investments | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Foreign exchange | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 911 | 569 |
Derivative liabilities | 893 | 899 |
Significant Unobservable Inputs (Level 3) | Money market investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commodity | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 10,029 | 0 |
Significant Unobservable Inputs (Level 3) | Foreign exchange | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
FAIR VALUE (Financial Assets _2
FAIR VALUE (Financial Assets and Liabilities Not Required to Be Measured at Fair Value) (Details) - USD ($) $ in Thousands | May 31, 2020 | Aug. 31, 2019 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | $ 1,180,074 | $ 1,254,921 |
2027 Notes | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 300,000 | 300,000 |
2027 Notes | Level 2 | Fair Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 300,495 | 303,810 |
2026 Notes | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 350,000 | 350,000 |
2026 Notes | Level 2 | Fair Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 358,145 | 363,444 |
2023 Notes | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 330,000 | 330,000 |
2023 Notes | Level 2 | Fair Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 334,970 | 342,098 |
Short-term borrowings | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 2,765 | 3,929 |
Short-term borrowings | Level 2 | Fair Value | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 2,765 | 3,929 |
Revolving credit facility | Term Loan | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | 110,125 | 210,125 |
Revolving credit facility | Poland credit facilities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Financial liabilities | $ 22,350 | $ 0 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 6,170 | $ 7,342 | $ 21,975 | $ 17,350 |
Equity method awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 1,521,000 | 1,505,000 | ||
Weighted average grant-date fair value | $ 18.32 | $ 17.75 | ||
Liability method awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted | 426,000 | 374,000 | ||
Equivalent shares outstanding | 781,508 | 781,508 | ||
Equivalent shares expected to vest | 742,433 | 742,433 | ||
Fiscal 2020 | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period in years | 3 years | |||
Fiscal 2020 | Performance Stock Units (PSU) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period in years | 3 years |
STOCKHOLDERS EQUITY AND EARNI_2
STOCKHOLDERS EQUITY AND EARNINGS PER SHARE (Narrative) (Details) - USD ($) | 9 Months Ended | |
May 31, 2020 | Feb. 28, 2015 | |
Earnings Per Share [Abstract] | ||
Stock repurchase program, authorized amount | $ 100,000,000 | |
Stock repurchase program, shares purchased (shares) | 0 | |
Stock repurchase program, remaining authorized repurchase amount | $ 27,600,000 |
STOCKHOLDERS EQUITY AND EARNI_3
STOCKHOLDERS EQUITY AND EARNINGS PER SHARE (Calculations of the Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | ||
Earnings Per Share [Abstract] | |||||
Earnings from continuing operations | $ 64,169 | $ 78,551 | $ 210,520 | $ 112,899 | |
Basic earnings per share: | |||||
Shares outstanding for basic earnings per share (shares) | 119,192,962 | 118,045,362 | 118,828,870 | 117,762,945 | |
Basic earnings per share attributable to CMC: (in USD per share) | [1] | $ 0.54 | $ 0.67 | $ 1.77 | $ 0.96 |
Diluted earnings per share: | |||||
Shares outstanding for basic earnings per share (shares) | 119,192,962 | 118,045,362 | 118,828,870 | 117,762,945 | |
Effect of dilutive securities: | |||||
Stock-based incentive/purchase plans (shares) | 1,085,779 | 1,100,204 | 1,448,867 | 1,250,069 | |
Shares outstanding for diluted earnings per share (shares) | 120,278,741 | 119,145,566 | 120,277,737 | 119,013,014 | |
Diluted earnings per share attributable to CMC: (in USD per share) | [1] | $ 0.53 | $ 0.66 | $ 1.75 | $ 0.95 |
[1] | *Earnings Per Share ("EPS") is calculated independently for each component and may not sum to Net EPS due to rounding |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Millions | May 31, 2020 | Aug. 31, 2019 |
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 3.4 | $ 3.6 |
Accrued environmental loss contingencies, noncurrent | 2.7 | 1.8 |
CERCLA sites | ||
Loss Contingencies [Line Items] | ||
Accrual for environmental loss contingencies | $ 0.7 | $ 0.7 |
BUSINESS SEGMENTS (Narrative) (
BUSINESS SEGMENTS (Narrative) (Details) | 9 Months Ended |
May 31, 2020segments | |
Segment Reporting [Abstract] | |
Number of reporting segments | 4 |
BUSINESS SEGMENTS (Summary of C
BUSINESS SEGMENTS (Summary of Certain Financial Information from Continuing Operations by Reportable Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | Aug. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 1,341,683 | $ 1,605,872 | $ 4,067,354 | $ 4,285,997 | |
Adjusted EBITDA from continuing operations | 146,782 | 143,971 | 444,308 | 278,840 | |
Total assets | 3,954,887 | 3,954,887 | $ 3,758,771 | ||
Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,341,683 | 1,605,872 | 4,067,354 | 4,285,997 | |
Americas Recycling | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 148,021 | 228,786 | 499,707 | 694,855 | |
Americas Mills | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 451,278 | 536,035 | 1,396,837 | 1,382,501 | |
Americas Fabrication | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 567,782 | 629,510 | 1,648,540 | 1,590,746 | |
International Mill | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 173,465 | 209,022 | 518,161 | 610,640 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,137 | 2,519 | 4,109 | 7,255 | |
Intersegment | Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Intersegment | Americas Recycling | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 55,134 | 60,229 | 173,793 | 183,244 | |
Intersegment | Americas Mills | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 289,534 | 330,868 | 844,908 | 860,964 | |
Intersegment | Americas Fabrication | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,466 | 3,537 | 4,303 | 10,248 | |
Intersegment | International Mill | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 352 | 343 | 1,124 | 947 | |
Intersegment | Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (346,486) | (394,977) | (1,024,128) | (1,055,403) | |
Segments | Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,341,683 | 1,605,872 | 4,067,354 | 4,285,997 | |
Adjusted EBITDA from continuing operations | 146,782 | 143,971 | 444,308 | 278,840 | |
Total assets | 3,954,887 | 3,954,887 | 3,758,771 | ||
Segments | Americas Recycling | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 203,155 | 289,015 | 673,500 | 878,099 | |
Adjusted EBITDA from continuing operations | (1,664) | 12,331 | 7,507 | 37,889 | |
Total assets | 216,270 | 216,270 | 257,517 | ||
Segments | Americas Mills | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 740,812 | 866,903 | 2,241,745 | 2,243,465 | |
Adjusted EBITDA from continuing operations | 133,174 | 158,114 | 413,890 | 384,383 | |
Total assets | 1,609,574 | 1,609,574 | 1,667,366 | ||
Segments | Americas Fabrication | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 569,248 | 633,047 | 1,652,843 | 1,600,994 | |
Adjusted EBITDA from continuing operations | 31,896 | (23,289) | 65,437 | (109,863) | |
Total assets | 1,052,324 | 1,052,324 | 1,106,420 | ||
Segments | International Mill | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 173,817 | 209,365 | 519,285 | 611,587 | |
Adjusted EBITDA from continuing operations | 14,270 | 24,120 | 39,080 | 77,436 | |
Total assets | 506,192 | 506,192 | 464,177 | ||
Segments | Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (345,349) | (392,458) | (1,020,019) | (1,048,148) | |
Adjusted EBITDA from continuing operations | (30,894) | $ (27,305) | (81,606) | $ (111,005) | |
Total assets | $ 570,527 | $ 570,527 | $ 263,291 |
BUSINESS SEGMENTS (Reconciliati
BUSINESS SEGMENTS (Reconciliations of Earnings from Continuing Operations to Adjusted Operating Profit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
Segment Reporting [Abstract] | ||||
Earnings from continuing operations | $ 64,169 | $ 78,551 | $ 210,520 | $ 112,899 |
Interest expense | 15,409 | 18,513 | 47,875 | 53,671 |
Income taxes | 23,804 | 29,105 | 73,981 | 52,855 |
Depreciation and amortization | 41,765 | 41,181 | 124,095 | 117,602 |
Amortization of acquired unfavorable contract backlog | (4,348) | (23,394) | (18,676) | (58,202) |
Asset impairments | 5,983 | 15 | 6,513 | 15 |
Adjusted EBITDA from continuing operations | $ 146,782 | $ 143,971 | $ 444,308 | $ 278,840 |