COVER PAGE
COVER PAGE - USD ($) $ in Billions | 12 Months Ended | ||
Aug. 31, 2020 | Oct. 14, 2020 | Feb. 29, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Aug. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-4304 | ||
Entity Registrant Name | Commercial Metals Company | ||
Entity Incorporation, State or Country Code | DE | ||
I.R.S. Employer Identification No. | 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.2 | ||
Entity Common Stock, Shares Outstanding | 119,580,359 | ||
Documents Incorporated by Reference | Portions of the following document are incorporated by reference into the listed Part of Form 10-K: Registrant's definitive proxy statement for the 2021 annual meeting of stockholders — Part III | ||
Entity Central Index Key | 0000022444 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --08-31 | ||
Minimum Percentage of Share Ownership Deemed Affiliates | 10.00% |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | ||
Income Statement [Abstract] | ||||
Net sales | $ 5,476,486 | $ 5,829,002 | $ 4,643,723 | |
Costs and expenses: | ||||
Cost of Goods and Services Sold | 4,531,688 | 5,025,514 | 4,021,558 | |
Selling, general and administrative expenses | 504,572 | 463,271 | 401,452 | |
Asset impairments | 7,611 | 384 | 14,372 | |
Interest expense | 61,837 | 71,373 | 40,957 | |
Total costs and expenses | 5,105,708 | 5,560,542 | 4,478,339 | |
Earnings from continuing operations before income taxes | 370,778 | 268,460 | 165,384 | |
Income taxes | 92,476 | 69,681 | 30,147 | |
Earnings from continuing operations | 278,302 | 198,779 | 135,237 | |
Earnings (loss) from discontinued operations before income taxes | 1,907 | (528) | 3,235 | |
Income taxes (benefit) | 706 | 158 | (34) | |
Earnings (loss) from discontinued operations | 1,201 | (686) | 3,269 | |
Net earnings | $ 279,503 | $ 198,093 | $ 138,506 | |
Basic earnings (loss) per share | ||||
Earnings from continuing operations | [1] | $ 2.34 | $ 1.69 | $ 1.16 |
Earnings (loss) from discontinued operations | [1] | 0.01 | (0.01) | 0.03 |
Net earnings | [1] | 2.35 | 1.68 | 1.19 |
Diluted earnings (loss) per share | ||||
Earnings from continuing operations | [1] | 2.31 | 1.67 | 1.14 |
Earnings (loss) from discontinued operations | [1] | 0.01 | (0.01) | 0.03 |
Net earnings | [1] | $ 2.32 | $ 1.66 | $ 1.17 |
[1] | Earnings Per Share ("EPS") is calculated independently for each component and may not sum to Net EPS due to rounding |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Net earnings (loss) | $ 279,503 | $ 198,093 | $ 138,506 |
Foreign currency translation adjustment: | |||
Foreign currency translation adjustment | 33,559 | (29,718) | (13,938) |
Reclassification for translation loss realized upon liquidation of investment in foreign entity | 6 | 857 | 2,079 |
Foreign currency translation adjustment | 33,565 | (28,861) | (11,859) |
Net unrealized gain (loss) on derivatives: | |||
Unrealized holding gain (loss) | (12,136) | (6) | 48 |
Reclassification for gain included in net earnings | (304) | (244) | (279) |
Net unrealized loss on derivatives | (12,440) | (250) | (231) |
Defined benefit obligation: | |||
Net loss | (796) | (2,629) | (138) |
Amortization of net loss | 86 | 0 | 126 |
Amortization of prior services | (53) | (25) | (62) |
Reclassification for settlement losses | 0 | 1,316 | 0 |
Defined benefit obligation | (763) | (1,338) | (74) |
Other comprehensive income (loss) | 20,362 | (30,449) | (12,164) |
Comprehensive income | $ 299,865 | $ 167,644 | $ 126,342 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 542,103 | $ 192,461 |
Accounts receivable (less allowance for doubtful accounts of $9,597 and $8,403) | 880,728 | 1,016,088 |
Inventories | 625,393 | 692,368 |
Prepaid and other current assets | 165,879 | 179,088 |
Total current assets | 2,214,103 | 2,080,005 |
Property, plant and equipment: | ||
Land | 143,567 | 142,825 |
Buildings and improvements | 786,820 | 750,381 |
Equipment | 2,364,923 | 2,234,800 |
Construction in process | 103,776 | 68,579 |
Property, plant and equipment, Gross | 3,399,086 | 3,196,585 |
Less accumulated depreciation and amortization | (1,828,019) | (1,695,614) |
Property, plant and equipment, Net | 1,571,067 | 1,500,971 |
Goodwill | 64,321 | 64,138 |
Other noncurrent assets | 232,237 | 113,657 |
Total assets | 4,081,728 | 3,758,771 |
Current liabilities: | ||
Accounts payable | 266,102 | 288,005 |
Accrued expenses and other payables | 454,977 | 353,786 |
Acquired unfavorable contract backlog | 6,035 | 35,360 |
Current maturities of long-term debt and short-term borrowings | 18,149 | 17,439 |
Total current liabilities | 745,263 | 694,590 |
Deferred income taxes | 130,810 | 79,290 |
Other noncurrent liabilities | 250,706 | 133,620 |
Long-term debt | 1,065,536 | 1,227,214 |
Total liabilities | 2,192,315 | 2,134,714 |
Commitments and contingencies (Note 19) | ||
Stockholders' equity: | ||
Common stock, par value $0.01 per share; authorized 200,000,000 shares; issued 129,060,664 shares; outstanding 119,220,905 and 117,924,938 shares | 1,290 | 1,290 |
Additional paid-in capital | 358,912 | 358,668 |
Accumulated other comprehensive loss | (103,764) | (124,126) |
Retained earnings | 1,807,826 | 1,585,379 |
Less treasury stock, 9,839,759 and 11,135,726 shares at cost | (175,063) | (197,350) |
Stockholders' equity | 1,889,201 | 1,623,861 |
Stockholders' equity attributable to noncontrolling interests | 212 | 196 |
Total equity | 1,889,413 | 1,624,057 |
Total liabilities and stockholders' equity | $ 4,081,728 | $ 3,758,771 |
Common Stock, Shares, Issued | 129,060,664 | 129,060,664 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ (9,597) | $ (8,403) |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 129,060,664 | 129,060,664 |
Common stock, shares outstanding | 119,220,905 | 117,924,938 |
Treasury stock, shares | 9,839,759 | 11,135,726 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | |
Cash flows from (used by) operating activities: | |||
Net earnings | $ 279,503 | $ 198,093 | $ 138,506 |
Adjustments to reconcile net earnings to cash flows from (used by) operating activities: | |||
Depreciation and amortization | 165,758 | 158,671 | 131,659 |
Deferred income taxes and other long-term taxes | 49,580 | 49,523 | 14,377 |
Share-based compensation | 31,850 | 25,106 | 23,929 |
Amortization of acquired unfavorable contract backlog | (29,367) | (74,784) | 0 |
Asset impairments | 7,611 | 384 | 15,053 |
Net gain on sales of a subsidiary, assets and other | (4,213) | (2,281) | (1,322) |
Loss on debt extinguishment | (1,778) | 0 | 0 |
Provision for losses on receivables, net | 578 | 388 | 2,510 |
Write-down of inventory and other | 2,065 | 723 | 1,407 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | 146,375 | 27,204 | (10,802) |
Inventories | 78,903 | 89,664 | (43,198) |
Other operating assets and liabilities | 15,065 | (52,851) | (15,423) |
Accounts payable, accrued expenses and other payables | 45,718 | (15,315) | (20,163) |
Beneficial interest in securitized accounts receivable | 0 | (367,521) | (670,457) |
Net cash flows from (used by) operating activities | 791,204 | 37,004 | (433,924) |
Cash flows from (used by) investing activities: | |||
Capital expenditures | (187,618) | (138,836) | (174,655) |
Acquisitions, net of cash acquired | (18,137) | (700,941) | (6,980) |
Proceeds from the sale of property, plant and equipment | 11,843 | 3,910 | 8,103 |
Proceeds from insurance, sale of discontinued operations and other | 974 | 6,298 | 102,857 |
Advances under accounts receivable programs | 0 | 0 | 226,325 |
Repayments under accounts receivable programs | 0 | 0 | (304,178) |
Beneficial interest in securitized accounts receivable | 0 | 367,521 | 670,457 |
Net cash flows from (used by) investing activities | (192,938) | (462,048) | 521,929 |
Cash flows from (used by) financing activities: | |||
Proceeds from issuance of long-term debt | 62,539 | 180,000 | 350,000 |
Repayments of long-term debt | (246,523) | (127,704) | (19,967) |
Proceeds from accounts receivable programs | 234,482 | 288,896 | 0 |
Repayments under accounts receivable programs | (237,828) | (296,033) | 0 |
Cash dividends | (57,056) | (56,537) | (56,076) |
Stock issued under incentive and purchase plans, net of forfeitures | (3,420) | (1,876) | (9,302) |
Debt issuance costs | 0 | 0 | (5,254) |
Other | 16 | 10 | 31 |
Net cash flows from (used by) financing activities | (247,790) | (13,244) | 259,432 |
Effect of exchange rate changes on cash | 759 | (598) | (703) |
Increase (decrease) in cash and cash equivalents | 351,235 | (438,886) | 346,734 |
Cash, restricted cash and cash equivalents at beginning of year | 193,729 | 632,615 | 285,881 |
Cash, restricted cash and cash equivalents at end of year | 544,964 | 193,729 | 632,615 |
Supplemental information: | |||
Cash paid for income taxes | 44,499 | 7,977 | 7,198 |
Cash paid for interest | 59,711 | 65,190 | 39,972 |
Noncash activities: | |||
Liabilities related to additions of property, plant and equipment | 25,100 | 57,640 | 32,274 |
Cash and cash equivalents | 542,103 | 192,461 | 622,473 |
Restricted cash | $ 2,861 | $ 1,268 | $ 10,142 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 |
Statement of Cash Flows [Abstract] | ||||
Cash and cash equivalents | $ 542,103 | $ 192,461 | $ 622,473 | |
Restricted cash | 2,861 | 1,268 | 10,142 | |
Total cash, cash equivalents and restricted cash | $ 544,964 | $ 193,729 | $ 632,615 | $ 285,881 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Noncontrolling Interests |
Beginning balance at Aug. 31, 2017 | $ 1,400,930 | $ 1,290 | $ 349,258 | $ (81,513) | $ 1,363,806 | $ (232,084) | $ 173 | |
Beginning balance, shares at Aug. 31, 2017 | 129,060,664 | |||||||
Beginning balance, treasury stock, shares at Aug. 31, 2017 | (13,266,928) | |||||||
Ending balance at Sep. 01, 2017 | $ 259 | $ 259 | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201802Member | |||||||
Beginning balance at Aug. 31, 2017 | $ 1,400,930 | $ 1,290 | 349,258 | (81,513) | 1,363,806 | $ (232,084) | 173 | |
Beginning balance, shares at Aug. 31, 2017 | 129,060,664 | |||||||
Beginning balance, treasury stock, shares at Aug. 31, 2017 | (13,266,928) | |||||||
Net earnings | 138,506 | 138,506 | ||||||
Other comprehensive income (loss) | (12,164) | (12,164) | ||||||
Cash dividends | (56,076) | (56,076) | ||||||
Issuance of stock under incentive and purchase plans, net of forfeitures | (9,301) | (28,000) | $ 18,699 | |||||
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | 1,221,822 | |||||||
Stock-based compensation | 16,168 | 16,168 | ||||||
Contribution from noncontrolling interests | 13 | 13 | ||||||
Reclassification of share-based liability awards | 15,248 | 15,248 | ||||||
Ending balance at Aug. 31, 2018 | 1,493,583 | $ 1,290 | 352,674 | (93,677) | 1,446,495 | $ (213,385) | 186 | |
Ending balance, shares at Aug. 31, 2018 | 129,060,664 | |||||||
Ending balance, treasury stock, shares at Aug. 31, 2018 | (12,045,106) | |||||||
Ending balance at Sep. 01, 2018 | $ (2,747) | $ (2,747) | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | |||||||
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) | |||||||
Net earnings | 198,093 | 198,093 | ||||||
Other comprehensive income (loss) | (30,449) | (30,449) | ||||||
Cash dividends | (56,537) | (56,537) | ||||||
Issuance of stock under incentive and purchase plans, net of forfeitures | (1,875) | (17,910) | $ 16,035 | |||||
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | 909,380 | |||||||
Stock-based compensation | 21,052 | 20,977 | 75 | |||||
Contribution from noncontrolling interests | 10 | 10 | ||||||
Reclassification of share-based liability awards | 2,927 | 2,927 | ||||||
Ending balance at Aug. 31, 2019 | $ 1,624,057 | $ 1,290 | 358,668 | (124,126) | 1,585,379 | $ (197,350) | 196 | |
Ending balance, shares at Aug. 31, 2019 | 129,060,664 | 129,060,664 | ||||||
Ending balance, treasury stock, shares at Aug. 31, 2019 | (11,135,726) | (11,135,726) | ||||||
Net earnings | $ 279,503 | 279,503 | ||||||
Other comprehensive income (loss) | 20,362 | 20,362 | ||||||
Cash dividends | (57,056) | (57,056) | ||||||
Issuance of stock under incentive and purchase plans, net of forfeitures | (3,420) | (25,707) | $ 22,287 | |||||
Issuance of stock under incentive and purchase plans, net of forfeitures, shares | 1,295,967 | |||||||
Stock-based compensation | 23,441 | 23,441 | ||||||
Contribution from noncontrolling interests | 16 | 16 | ||||||
Reclassification of share-based liability awards | 2,510 | 2,510 | ||||||
Ending balance at Aug. 31, 2020 | $ 1,889,413 | $ 1,290 | $ 358,912 | $ (103,764) | $ 1,807,826 | $ (175,063) | $ 212 | |
Ending balance, shares at Aug. 31, 2020 | 129,060,664 | 129,060,664 | ||||||
Ending balance, treasury stock, shares at Aug. 31, 2020 | (9,839,759) | (9,839,759) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per share | $ 0.48 | $ 0.48 | $ 0.48 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Aug. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1. NATURE OF OPERATIONS Nature of Operations Commercial Metals Company ("CMC") and its subsidiaries (collectively, the "Company," "we," "our" or "us") manufacture, recycle and fabricate steel and metal products, related materials and services through a network of facilities that includes seven electric arc furnace ("EAF") mini mills, two EAF micro mills, two rerolling mills, steel fabrication and processing plants, construction-related product warehouses and metal recycling facilities in the United States ("U.S.") and Poland. The Company has two reportable segments: North America and Europe. North America The North America segment is a vertically integrated network of recycling facilities, steel mills and fabrication operations located in the U.S. The recycling facilities process ferrous and nonferrous scrap metals (collectively known as "raw materials") for use by manufacturers of new metal products. The steel mills manufacture finished long steel products including reinforcing bar ("rebar"), merchant bar, light structural and other special sections as well as semi-finished billets for rerolling and forging applications (collectively known as "steel products"). The fabrication operations primarily manufacture fabricated rebar and steel fence posts (collectively known as "downstream products"). The strategy in North America is to optimize the Company's vertically integrated value chain to maximize profitability by obtaining the lowest possible input costs and highest possible selling prices. The Company operates the recycling facilities to provide low-cost scrap to the steel mills and the fabrication operations to optimize the steel mill volumes. The North America segment's products are sold primarily to steel mills and foundries, construction, fabrication and other manufacturing industries. Europe |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned and majority owned subsidiaries and certain variable interest entities ("VIEs") for which the Company is the primary beneficiary. Intercompany account balances and transactions have been eliminated. Use of Estimates The preparation of the Company's consolidated financial statements in accordance with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of net sales and expenses during the reporting period. Significant items subject to such estimates and assumptions include revenue recognition, income taxes, carrying value of inventory, acquisitions, goodwill, long-lived assets and contingencies. Actual results could differ significantly from these estimates and assumptions. Cash and Cash Equivalents Cash and cash equivalents include cash on deposit and short-term, highly-liquid investments with original maturities of three months or less at the date of purchase. Revenue Recognition and Allowance for Doubtful Accounts Revenue is recognized when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration received or expected to be received in exchange for those goods or services. The Company's performance obligations arise from (i) sales of raw materials, steel products and downstream products and (ii) services such as steel fabrication and installation by its fabrication operations. The shipment of products to customers is considered a fulfillment activity and amounts billed to customers for shipping and freight are included in net sales, and the related costs are included in cost of goods sold. Net sales are presented net of taxes. R evenue related to raw materials and steel products 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. Revenue related to steel fence posts and other downstream products not described below is recognized equal to billing under an available practical expedient. Each fabrication product contract sold by the North America segment represents a single performance obligation and revenue is recognized over time. For contracts where the Company provides fabricated product and installation services, revenue is recognized over time using an input measure of progress based on contract costs incurred to date compared to total estimated contract costs ("input measure"). This input measure 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 measure of progress based on tons shipped compared to total estimated tons ("output measure"). This output measure 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. 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 timing of revenue recognition may differ 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 subsequent to invoicing. Payment terms and conditions vary by contract type, although the Company generally requires customers to pay 30 days after the Company satisfies the performance obligations. 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 Company maintains an allowance for doubtful accounts to reflect its estimate of the uncollectability of accounts receivable. These reserves are based on historical trends, current market conditions and customers' financial condition. The Company reviews and sets credit limits for each customer. The Europe segment uses credit insurance to ensure payment in accordance with the terms of sale. Generally, collateral is not required. Approximately 13% of total receivables at August 31, 2020 and 2019 were secured by credit insurance. Inventories Inventories are stated at the lower of cost or net realizable value determined by the weighted average cost method. Elements of cost in finished goods inventory in addition to the cost of material include depreciation, amortization, utilities, consumable production supplies, maintenance, production, wages and transportation costs. Additionally, the costs of departments that support production, including materials management and quality control, are allocated to inventory. Property, Plant and Equipment Property, plant and equipment are recorded at cost. Maintenance is expensed as incurred. Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term. Depreciation and amortization is recorded on a straight-line basis over the following estimated useful lives: Buildings 7 to 40 years Land improvements 3 to 25 years Leasehold improvements 3 to 15 years Equipment 3 to 25 years The Company evaluates impairment of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. For each asset or group of assets held for use with indicators of impairment, the Company compares the sum of the expected future cash flows generated by the asset or group of assets with its associated net carrying value. If the net carrying value of the asset or group of assets exceeds expected undiscounted future cash flows, the excess of the net book value over estimated fair value is charged to impairment loss. Properties held for sale are reported at the lower of their carrying amount or their estimated sales price, less estimated costs to sell. Leases The Company's leases are primarily for real property 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 right-of-use ("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. The Company records its ROU assets in other noncurrent assets, its current lease liabilities in accrued expenses and other payables and its noncurrent lease liabilities in other noncurrent liabilities. 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”). 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. Government Assistance Government assistance, including non-monetary grants, herein collectively referred to as grants, are not recognized until there is reasonable assurance that the Company will comply with the conditions of the grant and the Company will receive the grant. Generally, government grants fall into two categories: grants related to assets and grants related to income. Grants related to assets are government grants for the purchase, construction or other acquisition of long-lived assets. The Company accounts for grants related to assets as deferred income with the offset to an asset account, such as fixed assets, on the consolidated balance sheets. Non-monetary grants are recognized at fair value. The Company recognizes the deferred income in profit or loss on a systematic basis over the useful life of the asset, which, consistent with the Company's fixed assets policy, is straight-line. The period over which grants are recognized depends on the terms of the agreement. Grants related to specific expenses already incurred are recognized in profit or loss in the period in which the grant becomes receivable. A grant related to depreciable assets is recognized in profit or loss over the life of the depreciable asset. Grants related to non-depreciable assets may require the fulfillment of certain obligations. In such cases, these grants are recognized in profit or loss over the periods that bear the cost of meeting the obligations. Grants related to income are any grants that are not considered grants related to assets, such as grants to compensate for certain expenses. Grants related to income are recognized as a reduction in the related expense in the period that the recognition criteria are met. See Note 11, New Markets Tax Credit Transactions. Goodwill and Other Intangible Assets Goodwill is tested for impairment at the reporting unit level annually and whenever events or circumstances indicate that the carrying value may not be recoverable. To evaluate goodwill for impairment, the Company utilizes a quantitative test that compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is indicated in the amount that the carrying value exceeds the fair value of the reporting unit, not to exceed the goodwill value for the reporting unit. The Company's reporting units represent an operating segment or one level below an operating segment. The Company estimates the fair value of its reporting units using a weighting of fair values derived from the income and market approaches. Under the income approach, the Company determines the fair value of a reporting unit based on the present value of estimated future cash flows. Cash flow projections are based on management's estimates of revenue growth rates and operating margins, taking into account industry and market conditions. The discount rate is based on a weighted average cost of capital adjusted for the relevant risk associated with the characteristics of the reporting unit. The market approach estimates fair value based on market multiples of revenue and earnings derived from comparable publicly-traded companies with similar operating and investment characteristics as the reporting unit. See Note 8, Goodwill and Other Intangible Assets, for additional information on the Company's annual goodwill impairment analysis. Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Impairment charges are recorded on finite-lived intangible assets when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amounts. Contingencies The Company accrues for claims and litigation, including environmental investigation and remediation costs, when they are both probable and the amount can be reasonably estimated. Environmental costs are based upon estimates regarding the sites for which the Company will be responsible, the scope and cost of work to be performed at each site, the portion of costs that will be shared with other parties and the timing of remediation. Where timing and amounts cannot be reasonably determined, a range is estimated and the lower end of the range is recorded. Stock-Based Compensation The Company recognizes stock-based equity and liability awards at fair value. The fair value of each stock-based equity award is estimated at the grant date using the Black-Scholes or Monte Carlo pricing model. Total compensation cost of the stock-based equity award is amortized over the requisite service period using the accelerated method of amortization for grants with graded vesting or the straight-line method for grants with cliff vesting. Stock-based liability awards are measured at fair value at the end of each reporting period and will fluctuate based on the price of CMC common stock and performance relative to the targets. Income Taxes CMC and its U.S. subsidiaries file a consolidated federal income tax return. Deferred income taxes are provided for temporary differences between financial statement and income tax bases of assets and liabilities. The principal differences are described in Note 14, Income Tax. Benefits from income tax credits are reflected currently in earnings. The Company records income tax positions based on a more likely than not threshold that the tax positions will be sustained on examination by the taxing authorities having full knowledge of all relevant information. The Company classifies interest and any statutory penalties recognized on a tax position as income tax expense. Foreign Currencies The functional currency of the Company's Polish operations is the local currency, the Polish zloty ("PLN"). Translation adjustments are reported as a component of accumulated other comprehensive income or loss. Transaction gains (losses) from transactions denominated in currencies other than the functional currency related to continuing operations were immaterial for 2020, 2019 and 2018. Derivative Financial Instruments The Company recognizes derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Derivatives that are not designated as hedges are adjusted to fair value through net earnings. Changes in the fair value of derivatives that are designated as hedges are recognized depending on the nature of the hedge. In the case of fair value hedges, changes are recognized as an offset against the change in fair value of the hedged balance sheet item. When the derivative is designated as a cash flow hedge and is highly effective, changes are recognized in other comprehensive income. The ineffective portion of a change in fair value for derivatives designated as hedges is recognized in net earnings. When a derivative instrument is sold, terminated, exercised or expires, the gain or loss is recorded in the consolidated statement of earnings for fair value hedges, and the cumulative unrealized gain or loss, which had been recognized in the statement of comprehensive income, is reclassified to the consolidated statement of earnings for cash flow hedges. Additionally, when hedged items are sold or extinguished, or the anticipated transaction being hedged is no longer expected to occur, the Company recognizes the gain or loss on the designated hedged financial instrument. 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. Level 1 represents unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 represents quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable, either directly or indirectly. Level 3 represents valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. 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 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 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. 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 | 12 Months Ended |
Aug. 31, 2020 | |
Business Combinations [Abstract] | |
CHANGES IN BUSINESS | NOTE 3. CHANGES IN BUSINESS 2019 Acquisition On November 5, 2018 (the "Acquisition Date"), the Company completed the acquisition (the "Acquisition") of 33 rebar fabrication facilities in the U.S., as well as four 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 made within the allowable one-year measurement period, was $701.2 million, and was funded through a combination of domestic cash on-hand and borrowings under the Term Loan (as defined in Note 10, Credit Arrangements). The results of operations of the Acquired Businesses were reflected in the Company’s consolidated financial statements from the Acquisition Date. The Acquired Businesses' net sales and earnings before income taxes included in the Company's consolidated statement of earnings and consolidated statement of comprehensive income in 2019 were $1.4 billion and $132.7 million, respectively. The purchase price paid was allocated between the acquired mills and fabrication facilities' assets acquired and liabilities assumed at fair value and was finalized on November 5, 2019. The table below presents the allocation of the fair value to the Acquired Businesses' assets and liabilities as determined by the Company: (in thousands) Fair Value Cash and cash equivalents $ 6,399 Accounts receivable 296,459 Inventories 202,082 Other current assets 26,290 Property, plant and equipment 421,969 Deferred income taxes 9,155 Accounts payable-trade, accrued expenses and other payables (134,702) Acquired unfavorable contract backlog (110,166) Other long-term liabilities (9,920) Pension and other post retirement employment benefits (6,365) Total assets acquired and liabilities assumed $ 701,201 The Company recorded a $32.1 million charge due to a working capital adjustment related to the Acquisition. This charge was recorded subsequent to the end of the allowable one-year measurement period in selling, general and administrative expenses on the consolidated statements of earnings in 2020. The related liability was recorded in accrued expenses and other payables as of August 31, 2020. Pro Forma Supplemental Information Supplemental information on an unaudited pro forma basis is presented below as if 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. Year Ended August 31, (in thousands) 2019 2018 Pro forma net sales (1) $ 6,033,908 $ 6,303,812 Pro forma net earnings (2) 162,255 105,377 __________________________________ (1) Pro forma net sales for the year ended August 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 year ended August 31, 2019. (2) Pro forma net earnings for the year ended August 31, 2018 reflects the impact of fair value adjustments related to the amortization of unfavorable contract backlog described above and includes estimated fair value adjustments related to inventory step-up, as well as non-recurring acquisition and integration costs of approximately $51.7 million. Other Acquisitions On July 21, 2020, the Company acquired substantially all of the assets of AZZ's Continuous Galvanized Rebar business ("GalvaBar") located in Tulsa, Oklahoma. GalvaBar manufactures galvanized rebar with a zinc alloy coating produced through a proprietary process to provide corrosion protection and post-fabrication formability. This acquisition complements the Company's existing concrete reinforcement capabilities. The operating results of GalvaBar are included in the North America segment. 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 Ecosteel are included in the Europe segment. On October 26, 2017, the Company completed the purchase of substantially all of the assets of MMFX Technologies Corporation ("MMFX"). MMFX markets, sells and licenses the production of proprietary specialty steel products. The operating results of MMFX are included in the North America segment. The acquisitions of GalvaBar, Ecosteel and MMFX were not material individually, or in the aggregate, to the Company's financial position or results of operations; therefore pro-forma operating results and other disclosures for the acquisitions are not presented as the results would not be significantly different than reported results. Facility Closures and Dispositions In October 2019, the Company closed the melting operations at its Rancho Cucamonga facility, which is part of the North America segment. In August 2020, the Company announced plans to sell its Rancho Cucamonga facility. This disposition does not meet the criteria for discontinued operations or held for sale accounting. Due to these announcements, the Company recorded $9.8 million of expense related to severance, pension curtailment and vendor agreement terminations. In 2020, the Company idled six facilities in its North America segment and recorded $6.2 million of expense related to severance and ROU and other long-lived asset impairments. In the third quarter of 2018, the Company sold substantially all of the assets of its structural steel fabrication operations, which were part of the North America segment. The disposition did not meet the criteria for discontinued operations. Proceeds associated with the sale were $20.3 million. As a result of the sale of these assets, the Company recorded impairment charges of $13.7 million. The signed definitive asset sale agreement and subsequent post-closing adjustments (Level 2) were the basis for the determination of fair value of these operations. Discontinued Operations In 2018, the remaining operations related to the Company's steel trading businesses in the U.S. and Asia were substantially wound down and the Company sold certain assets and liabilities of its Australian steel trading business. As a result of the Company's exit of its trading and distribution businesses in Australia, the Company prepared an impairment analysis on the asset disposal groups. Indicators of value from other recent sales of similar businesses within the segment (Level 3) were the basis for the determination of fair value of this component. As a result of this analysis, the Company recorded impairment charges of $2.1 million in 2018 resulting in an overall transaction loss, including selling costs, of $5.3 million. This loss was primarily due to accumulated foreign currency translation losses. The results of these activities are included in discontinued operations in the consolidated statements of earnings. The major classes of line items constituting earnings from discontinued operations in the consolidated statements of earnings for 2018 are presented in the table below. Earnings (loss) from discontinued operations in the consolidated statements of earnings were immaterial in 2020 and 2019. (in thousands) Year Ended August 31, 2018 Net sales $ 304,650 Costs and expenses: Cost of goods sold 276,184 Selling, general and administrative expenses 25,317 Interest expense (86) Earnings before income taxes 3,235 Income taxes benefit (34) Earnings from discontinued operations $ 3,269 There were no material non-cash operating or investing items related to discontinued operations for the periods ended August 31, 2020, 2019 and 2018. The Company recorded $6.7 million of severance expense related to discontinued operations for 2018. These costs related to the Company's closure of marketing and distribution offices that resulted in involuntary employee termination benefits. Severance expense recorded in 2020 and 2019 related to discontinued operations was immaterial. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Aug. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 4. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) ("AOCI") was comprised of the following: (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance at September 1, 2017 $ (80,778) $ 1,587 $ (2,322) $ (81,513) Other comprehensive income (loss) before reclassifications (13,938) 59 (575) (14,454) Amounts reclassified from AOCI 2,079 (365) 849 2,563 Income taxes (benefit) — 75 (348) (273) Net other comprehensive loss (11,859) (231) (74) (12,164) Balance at August 31, 2018 (92,637) 1,356 (2,396) (93,677) Other comprehensive loss before reclassifications (29,718) (7) (3,346) (33,071) Amounts reclassified from AOCI 857 (301) 1,666 2,222 Income taxes — 58 342 400 Net other comprehensive loss (28,861) (250) (1,338) (30,449) Balance at August 31, 2019 (121,498) 1,106 (3,734) (124,126) Other comprehensive income (loss) before reclassifications 33,559 (14,983) (952) 17,624 Amounts reclassified from AOCI 6 (375) — (369) Income taxes — 2,918 189 3,107 Net other comprehensive income (loss) 33,565 (12,440) (763) 20,362 Balance at August 31, 2020 $ (87,933) $ (11,334) $ (4,497) $ (103,764) |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Aug. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | NOTE 5. REVENUE RECOGNITION Revenue from Contracts with Customers Each fabricated product contract sold by the North America segment represents a single performance obligation. Revenue from contracts where the Company provides fabricated product and installation services is recognized over time using an input measure and these contracts represented approximately 12% of net sales in the North America segment in 2020 and 2019. Revenue from contracts where the Company does not provide installation services is recognized over time using an output measure and these contracts represented approximately 11% and 9% of net sales in the North America segment in 2020 and 2019, respectively. The remaining 77% and 79% of net sales in the North America segment were recognized at a point in time concurrent with the transfer of control or as amounts were billed to the customer under an available practical expedient in 2020 and 2019, respectively. The following table provides information about assets and liabilities from contracts with customers. Year Ended August 31, (in thousands) 2020 2019 Contract assets (included in accounts receivable) $ 53,275 $ 103,805 Contract liabilities (included in accrued expenses and other payables) 25,450 37,165 The decrease in contract assets was primarily due to timing of invoicing in 2020 compared to 2019. The entire contract liability as of August 31, 2019 was recognized in 2020. Remaining Performance Obligations As of August 31, 2020, a total of $723.4 million has been allocated to remaining performance obligations in the North America segment, related to those contracts where revenue is recognized using an input or output measure. Of this amount, the Company estimates the remaining performance obligations will be recognized as revenue as follows: 40% in the first twelve months, 48% in the following twelve months, and 12% thereafter. The duration of all other contracts in the North America and Europe segments are typically less than one year. |
ACCOUNTS RECEIVABLE PROGRAMS
ACCOUNTS RECEIVABLE PROGRAMS | 12 Months Ended |
Aug. 31, 2020 | |
Transfers and Servicing [Abstract] | |
ACCOUNTS RECEIVABLE PROGRAMS | NOTE 6. ACCOUNTS RECEIVABLE PROGRAMS As an additional source of liquidity, the Company sells certain trade accounts receivable both in the U.S. and Poland (hereinafter referred to as the "Programs"). Prior to September 1, 2018, the Company accounted for transfers of the trade accounts receivable under the Programs as sales of financial assets, and the trade accounts receivable balances sold were removed from the consolidated balance sheets. On September 1, 2018, the Company amended certain terms of the Programs, disqualifying the sale of such receivables from being accounted for as sales of financial assets. For activity in the Programs occurring prior to the September 1, 2018 amendment, disclosures required under ASC 860-20-50 are provided below. See Note 10, Credit Arrangements for further details regarding the Programs after September 1, 2018. Prior to September 1, 2018, in exchange for trade receivables transferred into the Programs, the Company received either cash (referred to as a cash purchase prior or "CPP") or a deferred purchase price ("DPP"). Upon adoption of ASU 2016-15, the CPP received was reflected as cash provided by operating activities in the Company's consolidated statements of cash flows, and cash received to settle the DPP related to the transfer of receivables was included as part of investing activities in the Company's consolidated statement of cash flows. (in thousands) Total U.S. Poland Deferred purchase price Balance at September 1, 2017 $ 215,123 $ 135,623 $ 79,500 Transfers of trade receivables 2,932,379 2,396,780 535,599 Less: CPP (2,187,377) (1,818,781) (368,596) Non-cash increase to DPP 745,002 577,999 167,003 Cash collections of DPP (670,457) (531,541) (138,916) Net repayments (advances) 77,853 90,000 (12,147) Net collections of DPP (592,604) (441,541) (151,063) Balance at August 31, 2018 $ 367,521 $ 272,081 $ 95,440 At August 31, 2018, the Company transferred $381.1 million of trade accounts receivable to the financial institutions and had no advance payments outstanding under the U.S. Facility and $12.1 million outstanding under the Poland Facility (as defined in Note 10, Credit Arrangements). |
INVENTORIES
INVENTORIES | 12 Months Ended |
Aug. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 7. INVENTORIES 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 August 31, 2020 and 2019, work in process inventories were not material. At August 31, 2020 and 2019, the Company's raw materials inventories were $123.9 million and $143.7 million, respectively. Inventory write-downs were immaterial for 2020, 2019 and 2018. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Aug. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 8. GOODWILL AND OTHER INTANGIBLE ASSETS The following table details the changes in the carrying amount of goodwill by reportable segment: (in thousands) North America Europe Consolidated Goodwill, gross Balance at September 1, 2018 $ 71,941 $ 2,568 $ 74,509 Foreign currency translation — (184) (184) Balance at August 31, 2019 71,941 2,384 74,325 Foreign currency translation — 195 195 Balance at August 31, 2020 71,941 2,579 74,520 Accumulated impairment losses Balance at September 1, 2018 (10,036) (163) (10,199) Foreign currency translation — 12 12 Balance at August 31, 2019 (10,036) (151) (10,187) Foreign currency translation — (12) (12) Balance at August 31, 2020 (10,036) (163) (10,199) Goodwill, net Balance at September 1, 2018 61,905 2,405 64,310 Foreign currency translation — (172) (172) Balance at August 31, 2019 61,905 2,233 64,138 Foreign currency translation — 183 183 Balance at August 31, 2020 $ 61,905 $ 2,416 $ 64,321 As of August 31, 2020 and 2019, the excess of the fair value over the carrying value of each reporting unit was substantial. There were no goodwill impairment charges in 2020, 2019, or 2018. The following intangible assets subject to amortization are included in other noncurrent assets on the Company's consolidated balance sheets: August 31, 2020 August 31, 2019 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Patents $ 7,203 $ 2,647 $ 4,556 $ 6,993 $ 1,709 $ 5,284 Customer base 6,111 4,900 1,211 6,088 4,081 2,007 Perpetual lease rights 4,766 866 3,900 4,146 749 3,397 Non-compete agreements 3,050 422 2,628 2,810 382 2,428 Brand name 838 501 337 628 454 174 Other 101 85 16 101 79 22 Total $ 22,069 $ 9,421 $ 12,648 $ 20,766 $ 7,454 $ 13,312 In connection with the Acquisition, the Company recorded an unfavorable contract backlog liability of $110.2 million. At August 31, 2020 and 2019, the net carrying amount of the liability was $6.0 million and $35.4 million, respectively. Amortization of the unfavorable contract backlog was $29.4 million and $74.8 million for the twelve months ended August 31, 2020 and 2019, respectively, and was recorded as an increase to net sales in the Company's consolidated statements of earnings. Perpetual lease rights at August 31, 2020 have an estimated useful life of 85 years. All other intangible assets with definitive lives are amortized over estimated useful lives ranging from 3 to 15 years. Excluding goodwill, the Company does not have any other significant intangible assets with indefinite lives. Amortization expense for intangible assets was $2.1 million for 2020 and $2.2 million for 2019 and 2018. Estimated amounts of amortization expense for the next five years are as follows. Year Ended August 31, (in thousands) 2021 $ 2,030 2022 1,755 2023 1,296 2024 1,259 2025 922 |
LEASES
LEASES | 12 Months Ended |
Aug. 31, 2020 | |
Leases [Abstract] | |
Operating Leases | NOTE 9. LEASES The following table presents the components of the total leased assets and lease liabilities and their classification in the Company's consolidated balance sheet at August 31, 2020: (in thousands) Classification in Consolidated Balance Sheet August 31, 2020 Assets: Operating assets Other noncurrent assets $ 114,905 Finance assets Property, plant and equipment, net 50,642 Total leased assets $ 165,547 Liabilities: Operating lease liabilities: Current Accrued expenses and other payables $ 27,604 Long-term Other noncurrent liabilities 95,810 Total operating lease liabilities 123,414 Finance lease liabilities: Current Current maturities of long-term debt and short-term borrowings 14,373 Long-term Long-term debt 35,851 Total finance lease liabilities 50,224 Total lease liabilities $ 173,638 The components of lease cost were as follows: (in thousands) Year Ended August 31, 2020 Operating lease expense $ 35,611 Finance lease expense: Amortization of assets 11,445 Interest on lease liabilities 1,792 Total finance lease expense 13,237 Variable and short term-lease expense 17,020 Total lease expense $ 65,868 The weighted average remaining lease term and discount rate for operating and finance leases are presented in the following table: August 31, 2020 Weighted average remaining lease term (years) Operating leases 6.3 Finance leases 3.8 Weighted average discount rate Operating leases 4.283 % Finance leases 4.270 % Cash flow and other information related to leases is included in the following table: (in thousands) Year Ended August 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 36,063 Operating cash outflows from finance leases 1,720 Financing cash outflows from finance leases 12,774 ROU assets obtained in exchange for lease obligations: Operating leases 43,642 Finance leases 26,573 Maturities of lease liabilities at August 31, 2020 are presented in the following table: (in thousands) Operating Leases Finance Leases 2021 $ 32,350 $ 16,227 2022 27,015 14,037 2023 22,035 11,675 2024 16,761 8,968 2025 12,052 3,569 Thereafter 32,312 69 Total lease payments 142,525 54,545 Less: Imputed interest 19,111 4,321 Present value of lease liabilities $ 123,414 $ 50,224 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 9. LEASES The following table presents the components of the total leased assets and lease liabilities and their classification in the Company's consolidated balance sheet at August 31, 2020: (in thousands) Classification in Consolidated Balance Sheet August 31, 2020 Assets: Operating assets Other noncurrent assets $ 114,905 Finance assets Property, plant and equipment, net 50,642 Total leased assets $ 165,547 Liabilities: Operating lease liabilities: Current Accrued expenses and other payables $ 27,604 Long-term Other noncurrent liabilities 95,810 Total operating lease liabilities 123,414 Finance lease liabilities: Current Current maturities of long-term debt and short-term borrowings 14,373 Long-term Long-term debt 35,851 Total finance lease liabilities 50,224 Total lease liabilities $ 173,638 The components of lease cost were as follows: (in thousands) Year Ended August 31, 2020 Operating lease expense $ 35,611 Finance lease expense: Amortization of assets 11,445 Interest on lease liabilities 1,792 Total finance lease expense 13,237 Variable and short term-lease expense 17,020 Total lease expense $ 65,868 The weighted average remaining lease term and discount rate for operating and finance leases are presented in the following table: August 31, 2020 Weighted average remaining lease term (years) Operating leases 6.3 Finance leases 3.8 Weighted average discount rate Operating leases 4.283 % Finance leases 4.270 % Cash flow and other information related to leases is included in the following table: (in thousands) Year Ended August 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 36,063 Operating cash outflows from finance leases 1,720 Financing cash outflows from finance leases 12,774 ROU assets obtained in exchange for lease obligations: Operating leases 43,642 Finance leases 26,573 Maturities of lease liabilities at August 31, 2020 are presented in the following table: (in thousands) Operating Leases Finance Leases 2021 $ 32,350 $ 16,227 2022 27,015 14,037 2023 22,035 11,675 2024 16,761 8,968 2025 12,052 3,569 Thereafter 32,312 69 Total lease payments 142,525 54,545 Less: Imputed interest 19,111 4,321 Present value of lease liabilities $ 123,414 $ 50,224 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 | 12 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [Abstract] | |
CREDIT ARRANGEMENTS | NOTE 10. CREDIT ARRANGEMENTS Long-term debt was as follows: Weighted Average Year Ended August 31, (in thousands) 2020 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 Poland Term Loan 1.730% 40,713 — Other 5.100% 21,329 23,168 Term Loan 3.148% — 210,125 Short-term borrowings 0.980% — 3,929 Finance leases 50,224 37,699 Total debt 1,092,266 1,254,921 Less debt issuance costs 8,581 10,268 Total amounts outstanding 1,083,685 1,244,653 Less current maturities of long-term debt and short-term borrowings 18,149 17,439 Long-term debt $ 1,065,536 $ 1,227,214 In July 2017, the Company issued $300.0 million of 5.375% Senior Notes due July 2027 (the "2027 Notes"). Interest on these notes is payable semiannually. In May 2018, the Company issued $350.0 million of 5.750% Senior Notes due April 2026 (the "2026 Notes"). Interest on the 2026 Notes is payable semiannually. In May 2013, the Company issued $330.0 million of 4.875% Senior Notes due May 2023 (the "2023 Notes"). Interest on these notes is payable semiannually. The Company has a $350.0 million revolving credit facility (the "Revolver") pursuant to the Fourth Amended and Restated Credit Agreement (as amended, the "Credit Agreement"). The Credit Agreement has a maturity date in June 2022. The maximum availability under the Revolver can be increased to $600.0 million with bank approval. The Company's obligations under the Credit Agreement are collateralized by its North America inventory and certain of its North America receivables. The Credit Agreement's capacity includes a $50.0 million sub-limit for the issuance of stand-by letters of credit. The Company had no amounts drawn under the Revolver at August 31, 2020 or 2019. The availability under the Revolver was reduced by outstanding stand-by letters of credit of $3.0 million at August 31, 2020 and 2019. The Company also had a term loan (the "Term Loan") contemplated under the Credit Agreement. The Term Loan was funded in two tranches: one drawn on July 13, 2017 with an original principal amount of $150.0 million, and one drawn on November 1, 2018 with an original principal amount of $180.0 million. The Company repaid the remaining Term Loan balance in 2020, and recognized $1.8 million of expense related to early extinguishment of this debt, which is included in selling, general and administrative expenses in the Company's consolidated statement of earnings for the year ended August 31, 2020 . Under the Credit Agreement, the Company is required to comply with certain financial and non-financial covenants, including covenants to maintain: (i) an interest coverage ratio (consolidated EBITDA to consolidated interest expense, as each is defined in the Credit Agreement) of not less than 2.50 to 1.00 and (ii) a debt to capitalization ratio (consolidated funded debt to total capitalization, as each is defined in the Credit Agreement) that does not exceed 0.60 to 1.00. Loans under the Credit Agreement bear interest based on the Eurocurrency rate, a base rate, or the LIBOR rate. At August 31, 2020, the Company's interest coverage ratio was 9.36 to 1.00 and the Company's debt to capitalization ratio was 0.37 to 1.00. In August 2020, the Company entered into an agreement through its subsidiary, CMCP, which allowed for a delayed draw Term Loan facility ("Poland Term Loan") in the maximum aggregate principal amount of up to PLN 250.0 million, or $67.9 million at August 31, 2020. The proceeds of the Poland Term Loan will be used to finance the third rolling mill in Poland. At August 31, 2020, PLN 150.0 million, or $40.7 million, was outstanding. CMCP is required to make quarterly interest and principal payments on the Poland Term Loan with interest based on the Warsaw Interbank Offer Rate ("WIBOR") plus a margin. The Poland Term Loan has a maturity date of August 2026. The Company also has credit facilities in Poland, through its subsidiary, CMCP, available to support working capital, short-term cash needs, letters of credit, financial assurance and other trade finance-related matters. At August 31, 2020 and 2019, CMCP's credit facilities totaled PLN 275.0 million, or $74.6 million and $69.0 million, respectively. These facilities expire in March 2022. At August 31, 2020 and 2019, no amounts were outstanding under these facilities. In 2020, CMCP had $22.4 million borrowings and $22.4 million repayments under its credit facilities. CMCP had no borrowings or repayments under its credit facilities in 2019 and 2018. The available balance of these credit facilities was 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 August 31, 2020 and August 31, 2019, respectively. At August 31, 2020, the Company was in compliance with all of the covenants contained in its credit arrangements. The scheduled maturities of the Company's long-term debt, excluding obligations related to finance leases, are included in the table below. See Note 9, Leases, for scheduled maturities of finance leases. Year Ended August 31, (in thousands) 2021 $ 3,776 2022 9,576 2023 339,565 2024 11,706 2025 9,556 Thereafter 667,863 Total long-term debt, excluding finance leases 1,042,042 Less debt issuance costs 8,581 Total long-term debt outstanding, excluding finance leases $ 1,033,461 The Company capitalized $2.5 million, $0.3 million and $7.3 million of interest in the cost of property, plant and equipment during 2020, 2019 and 2018, respectively. Accounts Receivable Facilities CMC has a $200.0 million U.S. trade accounts receivable facility (the "U.S. Facility"), which expires in November 2021. Under the U.S. Facility, CMC contributes, and certain of its subsidiaries transfer without recourse, certain eligible trade accounts receivable to CMC Receivables, Inc. ("CMCRV"), a wholly-owned subsidiary of CMC. CMCRV is structured to be a bankruptcy-remote entity formed for the sole purpose of facilitating transfers of trade accounts receivable generated by the Company. CMCRV transfers the trade accounts receivable in their entirety to two financial institutions. Under the U.S. Facility, with the consent of both CMCRV and the program's administrative agent, the amount advanced by the financial institutions can be increased to a maximum of $300.0 million for all trade accounts receivable. The remaining portion of the purchase price of the trade accounts receivable takes the form of subordinated notes from the respective financial institutions. These notes will be satisfied from the ultimate collection of the trade accounts receivable after payment of certain fees and other costs. The U.S. Facility contains certain cross-default provisions whereby a termination event could occur if the Company defaulted under certain of its credit arrangements. The covenants contained in the receivables purchase agreement are consistent with the Credit Agreement. Advances taken under the U.S. Facility incur interest based on LIBOR plus a margin. The Company had no advance payments outstanding under the U.S. Facility at August 31, 2020 and August 31, 2019. In addition to the U.S. Facility, the Company's subsidiary in Poland transfers trade accounts receivable to financial institutions without recourse (the "Poland Facility"). The Poland Facility has a facility limit of PLN 220.0 million ($59.7 million and $55.2 million as of August 31, 2020 and 2019, respectively) and allows the Company's Polish subsidiaries to obtain an advance of up |
NEW MARKETS TAX CREDIT TRANSACT
NEW MARKETS TAX CREDIT TRANSACTIONS | 12 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
New Markets Tax Credit Transactions | NOTE 11. NEW MARKETS TAX CREDIT TRANSACTIONS During 2016 and 2017, the Company entered into three New Markets Tax Credit (“NMTC”) transactions with U.S. Bancorp Community Development Corporation, a Minnesota corporation ("USBCDC"). The NMTC transactions relate to the construction and equipping of the micro mill in Durant, Oklahoma, as well as a rebar spooler and automated T-post shop located on the same site. The transactions qualified through the New Markets Tax Credit program provided for in the Community Renewal Tax Relief Act of 2000 (the "NMTC Program"), as the micro mill, spooler and T-post shop are located in an eligible zone designated by the Internal Revenue Service ("IRS") and are considered eligible business activities for the NMTC Program. Under the NMTC Program, an investor that makes a capital investment, which, in turn, together with leverage loan sources, is used to make a Qualifying Equity Investment (a "QEI") in an entity that (i) qualifies as a Community Development Entity ("CDE"), (ii) has applied for and been granted an allocation of a portion of the total federal funds available to fund the credits (an "NMTC Allocation") and (iii) uses a minimum specified portion of the QEI to make a Qualified Low Income Community Investment up to the maximum amount of the CDE’s NMTC Allocation will be entitled to claim, over a period of seven years, federal nonrefundable tax credits in an amount equal to 39% of the QEI amount. NMTCs are subject to 100% recapture for a period of seven years as provided in the Internal Revenue Code. In general, the three NMTC transactions were structured similarly. USBCDC made a capital contribution to an investment fund and Commonwealth Acquisition Holdings, Inc., a wholly-owned subsidiary of the Company (“Commonwealth”), made a loan to the investment fund. The investment fund used the proceeds from the capital contribution and the loan to make a QEI into a CDE, which, in turn, makes loans of the QEIs to the operating subsidiaries of the Company with terms similar to the loans by Commonwealth. The following table summarizes the key terms and conditions for each of the three NMTC transactions ($ in millions): Project USBCDC Capital Contribution Commonwealth Loan Commonwealth Loan Rate / Maturity Investment Fund(s) QEI to CDE CDE Loan Micro mill $17.7 $35.3 1.08% / December 24, 2045 USBCDC Investment Fund 156, LLC $51.5 $50.7 Spooler 6.7 14.0 1.39% / July 26, 2042 Twain Investment Fund 249, LLC 20.0 19.4 T-post shop 5.0 10.4 1.16% / March 23, 2047 Twain Investment Fund 219, LLC Twain Investment Fund 222, LLC 15.0 14.7 By its capital contributions to the investment funds (exclusive of Twain Investment Fund 222) (collectively the "Funds"), USBCDC is entitled to substantially all the benefits derived from the NMTCs. These transactions include a put/call provision whereby the Company may be obligated or entitled to repurchase USBCDC’s interest in the Funds at the end of a seven eight The Company has determined that the Funds are VIEs, of which the Company is the primary beneficiary and has consolidated them in accordance with ASC Topic 810, Consolidation. USBCDC’s contributions are included in other noncurrent liabilities in |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Aug. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | NOTE 12. 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 commodity 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. The Company considers the total notional value of its futures and forward contracts as the best measure of the volume of derivative transactions. At August 31, 2020, the notional values of the Company's foreign currency and commodity contract commitments were $138.5 million and $195.8 million, respectively. At August 31, 2019, the notional values of the Company's foreign currency contract commitments and its commodity contract commitments were $94.1 million and $42.6 million, respectively. The following table provides information regarding the Company's commodity contract commitments as of August 31, 2020: Commodity Long/Short Total Aluminum Long 1,675 MT Copper Long 556 MT Copper Short 8,346 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. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Aug. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | NOTE 13. 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. See Note 2, Summary of Significant Accounting Policies, for definitions of the three levels within the hierarchy. 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) August 31, 2020 Quoted Prices in Significant Other Significant Assets: Investment deposit accounts (1) $ 449,824 $ 449,824 $ — $ — Commodity derivative assets (2) 202 202 — — Foreign exchange derivative assets (2) 1,484 — 1,484 — Liabilities: Commodity derivative liabilities (2) 19,000 3,993 15,007 Foreign exchange derivative liabilities (2) 459 — 459 — 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 the New York Mercantile Exchange. Amounts in Level 2 are based on broker quotes in the over-the-counter market. Derivative liabilities classified as Level 3, and the methodology used to determine their fair value, are described below. Further discussion regarding the Company's use of derivative instruments is included in Note 12, Derivatives. The fair value estimate of the Level 3 commodity derivative is based on an internally developed discounted cash flow model primarily utilizing unobservable inputs in which there is little or no market data. The Company forecasts future energy rates using a range of historical prices ("floating rate"). The floating rate is the only significant unobservable input used in the Company's discounted cash flow model. August 31, 2020 Unobservable Inputs Low High Average Floating rate (PLN) 151.66 243.88 200.70 Below is a reconciliation of the beginning and ending balances of the Level 3 commodity derivative recognized in the consolidated statements of comprehensive income. The fluctuation in energy rates over time may cause volatility in the fair value estimate and is the primary reason for the unrealized loss in other comprehensive income ("OCI") in 2020. (in thousands) August 31, 2020 Beginning balance $ — New commodity contract 1,083 Total gains (losses), realized and unrealized Recognized in earnings (1) — Recognized in OCI (2) (16,090) Ending balance $ (15,007) __________________________________ (1) Gains (losses) recognized in earnings are included in cost of goods sold on the consolidated statements of earnings. As the derivative will not begin to settle until 2021, no gains or losses were recorded in earnings in 2020. (2) Gains (losses) recognized in OCI are included in the unrealized holding gain (loss) on the consolidated statements of comprehensive income. Other than adjustments made to the preliminary fair value allocated to the Acquired Businesses' assets and liabilities made in the allowable one-year measurement period from November 5, 2018 to November 4, 2019, there were no other material non-recurring fair value remeasurements in 2020, 2019 and 2018. The carrying values of the Company's short-term items, including documentary letters of credit and notes payable, approximate fair value due to their short-term nature. 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 consolidated balance sheets were as follows: August 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 $ 319,377 $ 300,000 $ 303,810 2026 Notes (1) Level 2 350,000 367,374 350,000 363,444 2023 Notes (1) Level 2 330,000 345,335 330,000 342,098 Poland Term Loan (2) Level 2 40,713 40,713 — — Term Loan (2) Level 2 — — 210,125 210,125 Short-term borrowings (2) Level 2 — — 3,929 3,929 __________________________________ (1) The fair value of the notes was determined based on indicated market values. (2) The Poland Term Loan, Term Loan and short-term borrowings contain variable interest rates and carrying value approximates fair value. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | NOTE 14. INCOME TAX The components of earnings from continuing operations before income taxes were as follows: Year Ended August 31, (in thousands) 2020 2019 2018 United States $ 334,170 $ 194,986 $ 86,731 Foreign 36,608 73,474 78,653 Total $ 370,778 $ 268,460 $ 165,384 The income taxes (benefit) included in the consolidated statements of earnings were as follows: Year Ended August 31, (in thousands) 2020 2019 2018 Current: United States $ 26,901 $ 621 $ 20,210 Foreign 7,588 14,006 18,308 State and local 7,133 2,892 2,263 Current taxes 41,622 17,519 40,781 Deferred: United States 45,771 46,922 (11,501) Foreign (43) 490 (169) State and local 5,832 4,908 1,002 Deferred taxes 51,560 52,320 (10,668) Total income taxes on income 93,182 69,839 30,113 Income taxes (benefit) on discontinued operations 706 158 (34) Income taxes on continuing operations $ 92,476 $ 69,681 $ 30,147 A reconciliation of the federal statutory rate to the Company's effective income tax rate from continuing operations, including material items impacting the effective income tax rate, is as follows: Year Ended August 31, (in thousands) 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 25.7 % Income tax expense at statutory rate $ 77,863 $ 56,377 $ 42,471 State and local taxes 9,895 6,085 2,317 Foreign tax impairment on valuation of subsidiaries (1) 5,084 (29,697) 22,315 Foreign rate differential (2) (1,346) (1,466) (5,973) Research and experimentation benefits (1,085) (580) (4,707) Change in valuation allowance 968 36,167 (20,839) Nontaxable foreign interest (1) 8 (9,799) (17,414) TCJA - Toll charge and related foreign tax credits — 7,410 29,466 TCJA - Remeasurement of deferred tax balances — (586) (25,515) Audit settlement — 120 (3,187) Gain on international restructure (1) — — 18,926 Worthless stock deduction (3) — — (6,084) Other 1,089 5,650 (1,629) Income tax expense on continuing operations $ 92,476 $ 69,681 $ 30,147 Effective income tax rate from continuing operations 24.9 % 26.0 % 18.2 % __________________________________ (1) Fully offset by a valuation allowance. (2) The impact of global income from operations in jurisdictions with lower statutory tax rates than the U.S., including Poland, which has a statutory income tax rate of 19.0%. (3) Permanent tax benefit related to a worthless stock deduction from the reorganization and exit of the Company's steel trading business headquartered in the United Kingdom. Beginning in fiscal 2020, the Company plans to repatriate the current and future earnings from the Europe segment and recorded an immaterial amount of tax expense related to such future distributions. The Company considers all undistributed earnings of its non-U.S. subsidiaries prior to August 31, 2019 to be indefinitely reinvested and has not recorded deferred tax liabilities on such earnings. The income tax effects of significant temporary differences giving rise to deferred tax assets and liabilities were as follows: Year Ended August 31, (in thousands) 2020 2019 Deferred tax assets: Net operating losses and credits $ 283,416 $ 295,241 Deferred compensation and employee benefits 32,293 24,432 Reserves and other accrued expenses 30,371 42,833 ROU operating lease liabilities 29,619 — Other 3,315 19,526 Total deferred tax assets 379,014 382,032 Valuation allowance for deferred tax assets (281,849) (283,560) Deferred tax assets, net 97,165 98,472 Deferred tax liabilities: Property, plant and equipment (185,595) (168,701) ROU operating lease assets (28,201) — Other (2,420) (1,182) Total deferred tax liabilities (216,216) (169,883) Net deferred tax liabilities $ (119,051) $ (71,411) Net operating losses giving rise to deferred tax assets consist of $447.5 million of state net operating losses that expire during the tax years ending from 2021 to 2040 and foreign net operating losses of $816.9 million that expire in varying amounts beginning in 2021 (with certain amounts having indefinite carryforward periods). These assets will be reduced as income tax expense is recognized in future periods. The Company maintains a valuation allowance to reduce certain deferred tax assets to amounts that are more likely than not to be realized. The Company's valuation allowances primarily relate to net operating loss carryforwards in certain state and foreign jurisdictions and certain credit carryforwards for which utilization is uncertain. A reconciliation of the beginning and ending amounts of unrecognized income tax benefits is as follows: Year Ended August 31, (in thousands) 2020 2019 2018 Balance at September 1, $ 8,652 $ 3,121 $ 9,283 Change for tax positions of prior years — 5,531 3,121 Reductions due to settlements with taxing authorities — — (8,028) Reductions due to lapse of statute of limitations — — (1,255) Balance at August 31, (1) $ 8,652 $ 8,652 $ 3,121 __________________________________ (1) The full balance of unrecognized income tax benefits in each year, if recognized, would have impacted the Company’s effective income tax rate at the end of each respective year. At August 31, 2020 and 2019, accrued interest and penalties related to uncertain tax positions was not material. During the twelve months ending August 31, 2021, we anticipate that the statute of limitations pertaining to positions of the Company in prior year income tax returns may lapse. As a result, it is reasonably possible that the amount of unrecognized tax benefits may decrease by $3.1 million. The Company files income tax returns in the U.S. and multiple foreign jurisdictions with varying statutes of limitations. In the normal course of business, the Company and its subsidiaries are subject to examination by various taxing authorities. The Company is currently under examination with certain state revenue authorities for fiscal years 2015 through 2018. The following is a summary of all tax years that are open to examination. U.S. Federal — 2016 and forward U.S. States — 2015 and forward Foreign — 2013 and forward |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Aug. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION PLANS | NOTE 15. STOCK-BASED COMPENSATION PLANS The Company's stock-based compensation plans provide for the issuance of incentive and nonqualified stock options, restricted stock and units and performance-based awards. The Compensation Committee of CMC's Board of Directors (the "Compensation Committee") approves all awards that are granted under the Company's stock-based compensation plans. Stock-based compensation expense for 2020, 2019 and 2018 of $31.9 million, $25.1 million and $23.9 million, respectively, was primarily included in selling, general and administrative expenses on the Company's consolidated statements of earnings. As of August 31, 2020, total unrecognized compensation cost related to unvested stock-based compensation arrangements was $16.7 million, which is expected to be recognized over a weighted average period of three years. The following table summarizes the total awards granted: Restricted Stock Performance 2020 grants 997,454 536,022 2019 grants 889,238 483,984 2018 grants 667,341 367,514 As of August 31, 2020, the Company had 5,669,972 shares of common stock available for future grants. Restricted Stock Units Restricted stock units issued under the Company's stock-based compensation plans may not be sold, transferred, pledged or assigned until service-based restrictions lapse. The restricted stock units granted to U.S. employees generally vest and are converted to shares of the Company's common stock in three equal installments on each of the first three anniversaries of the date of grant. The restricted stock units granted to non-U.S. employees in 2020 and 2019 generally vest and are converted to shares of the Company's common stock in three equal installments on each of the first three anniversaries of the date of grant. Restricted stock units granted to non-U.S. employees in 2018 generally vest and are settled in cash in three equal installments on each of the first three anniversaries of the date of grant. Generally, upon termination of employment, restricted stock units that have not vested are forfeited. Upon death, disability or qualifying retirement, a pro-rata portion of the unvested restricted stock awarded will vest and become payable. The estimated fair value of the stock-settled restricted stock units is based on the closing price of the Company's common stock on the date of grant, discounted for the expected dividend yield through the vesting period. Compensation cost related to the stock-settled restricted stock units is recognized ratably over the service period and is included in equity on the Company's consolidated balance sheets. The liability related to the cash-settled restricted stock units was included in accrued expenses and other payables on the Company's consolidated balance sheets. Mark-to-market adjustments recorded to liability-treated awards in 2020, 2019 and 2018 were immaterial. The fair value of the cash-settled restricted stock units is remeasured each reporting period and is recognized ratably over the service period. Performance Stock Units Performance stock units issued under the Company's stock-based compensation plans may not be sold, transferred, pledged or assigned until service-based restrictions lapse and any performance objectives have been attained as established by the Compensation Committee. Recipients of these awards generally must be actively employed by and providing services to the Company on the last day of the performance period in order to receive an award payout. Upon death, disability or qualifying retirement, a pro-rata portion of the performance stock units will vest and become payable at the end of the performance period. Compensation cost for performance stock units is accrued based on the probable outcome of specified performance conditions, net of estimated forfeitures. The Company accrues compensation cost if it is probable that the performance conditions will be met. The Company reassesses the probability of meeting the specified performance conditions at the end of each reporting period and adjusts compensation cost, as necessary, based on the probability of achieving the performance conditions. If the performance conditions are not met at the end of the performance period, the Company reverses the related compensation cost. Performance targets established by the Compensation Committee for performance stock units awarded in 2020, 2019 and 2018 were weighted 75% based on the Company's cumulative EBITDA targets and positive return on invested capital for the fiscal year in which the awards were granted and the succeeding two fiscal years, as approved by CMC's Board of Directors in the respective year's business plan, and 25% based on a three year relative total stockholder return metric. Performance stock units awarded to U.S. participants will be settled in shares of the Company's common stock. Award payouts range from a threshold of 50% to a maximum of 200% for each portion of the target awards. The performance stock units awarded in 2020 and 2019 associated with the cumulative EBITDA targets have been classified as liability awards since the final EBITDA target will not be set until the third year of the performance period. Consequently, these awards were included in accrued expenses and other payables on the Company's consolidated balance sheets. The fair value of these performance stock units is remeasured each reporting period and is recognized ratably over the service period. The performance stock units associated with the total stockholder return metric were valued at fair value on the date of grant using the Monte Carlo pricing model and were included in equity on the Company's consolidated balance sheets. Performance stock units awarded to non-U.S. participants in 2020 and 2019 will be settled in stock while the performance stock units awarded to non-U.S. participants in 2018 will be settled in cash. The fair value of the performance stock units is remeasured each reporting period and is recognized ratably over the service period. The liability related to these awards was included in accrued expenses and other payables on the Company's consolidated balance sheets. Information for restricted stock units and performance stock units, excluding those expected to settle in cash, is as follows: Number Weighted Average Outstanding as of September 1, 2017 2,453,580 $ 15.65 Granted 1,216,461 20.69 Vested (1,685,898) 18.00 Forfeited (183,425) 15.89 Outstanding as of August 31, 2018 1,800,718 16.82 Granted 1,505,449 17.75 Vested (992,167) 20.09 Forfeited (34,432) 17.90 Outstanding as of August 31, 2019 2,279,568 15.99 Granted 1,529,212 18.32 Vested (1,417,552) 18.80 Forfeited (145,591) 21.35 Outstanding as of August 31, 2020 2,245,637 $ 18.79 The total fair value of shares vested during 2020, 2019 and 2018 was $26.7 million, $19.9 million and $30.3 million, respectively. The Company granted 425,915 and 374,281 equivalent shares of restricted stock units and performance stock units accounted for as liability awards during 2020 and 2019, respectively. As of August 31, 2020, the Company had 773,757 equivalent shares of awards outstanding and expects 735,069 equivalent shares to vest. Stock Purchase Plan Almost all U.S. resident employees may participate in the Company's employee stock purchase plan. Beginning in 2020, each eligible employee may purchase up to 500 shares annually. The Board of Directors established a 15% purchase discount based on market prices on specified dates for 2020, 2019 and 2018. Yearly activity of the stock purchase plan was as follows: 2020 2019 2018 Shares subscribed 347,870 446,950 289,040 Price per share $ 18.80 $ 13.80 $ 17.84 Shares purchased 365,990 226,860 123,930 Price per share $ 13.80 $ 17.84 $ 18.99 Shares available for future issuance 2,338,304 |
EMPLOYEES' RETIREMENT PLANS
EMPLOYEES' RETIREMENT PLANS | 12 Months Ended |
Aug. 31, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEES' RETIREMENT PLANS | NOTE 16. EMPLOYEES' RETIREMENT PLANS Substantially all employees in the U.S. are covered by a defined contribution 401(k) retirement plan. The tax qualified defined contribution plan is maintained, and contributions are made, in accordance with the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). The Company also provides certain eligible executives benefits pursuant to its Benefit Restoration Plan ("BRP") equal to amounts that would have been available under the tax qualified ERISA plan, but were subject to the limitations of ERISA, tax laws and regulations. Company expenses for these plans, a portion of which are discretionary, are recorded in both cost of goods sold and selling, general and administrative expenses, and totaled $37.3 million, $32.9 million and $27.3 million for 2020, 2019 and 2018, respectively. The deferred compensation liability under the BRP was $47.0 million and $45.7 million at August 31, 2020 and 2019, respectively, with $40.6 million and $39.9 million, respectively, included in other long-term liabilities on the Company's consolidated balance sheets. At August 31, 2020 and 2019, $6.4 million and $5.8 million, respectively, of the deferred compensation liability related to the BRP was included in accrued expenses and other payables on the Company's consolidated balance sheets. Though under no obligation to fund the BRP, the Company has segregated assets in a trust with a value of $60.8 million and $56.3 million at August 31, 2020 and 2019, respectively, and such assets were included in other noncurrent assets on the Company's consolidated balance sheets. The net holding gain on these segregated assets was $6.0 million, $3.3 million and $9.3 million for 2020, 2019 and 2018, respectively, and was included in net sales in the Company's consolidated statements of earnings. In 2019, the Company acquired certain assets, including a partially funded defined benefit pension plan, from Gerdau S.A., (the "Plan") as part of the Acquisition. Upon closing of the Acquisition, the excess of projected Plan benefit obligations over the Plan assets was recognized as a liability and previously existing deferred actuarial gains and losses and unrecognized service costs or benefits were eliminated. Pension benefits associated with the Plan are generally based on each participant’s years of service, compensation and age at retirement or termination. The Plan was closed to new participants prior to the Acquisition. In 2020, the Company announced its decision to close the melting operations at its Rancho Cucamonga facility and then subsequently announced its decision to sell this same facility. As a result of these announcements, the Company recorded a pension curtailment of $3.2 million in 2020 . The following tables include a reconciliation of the beginning and ending balances of pension benefit obligation and the fair value of Plan assets and the related amounts recognized in the Company’s consolidated balance sheets as of August 31, 2020 and 2019. (in thousands) 2020 2019 Benefit obligation at beginning of year $ 31,661 $ — Acquisition — 26,336 Service cost 335 354 Interest cost 892 926 Curtailment loss 1,314 — Special termination benefits 1,918 — Actuarial loss 1,280 4,883 Benefits paid (1,270) (838) Benefit obligation at end of year 36,130 31,661 Fair value of Plan assets at beginning of year $ 23,435 $ — Acquisition — 21,023 Actual return on Plan assets 2,248 2,887 Administrative expenses (496) (69) Employer contributions 5,284 432 Benefits paid (1,270) (838) Fair value of Plan assets at end of year 29,201 23,435 Funded status at end of year (net liability recognized in balance sheet as of August 31,) $ (6,929) $ (8,226) Amounts recognized in accumulated other comprehensive income as of August 31, Net actuarial loss $ 3,234 $ 2,823 The pension accumulated benefit obligation represents the actuarial present value of benefits based on employee service and compensation as of the measurement date and does not include an assumption about future compensation levels. The service cost component of net periodic benefit cost is recorded in cost of goods sold. Components of net periodic benefit cost and other supplemental information are detailed below. (in thousands) 2020 2019 Service cost $ 335 $ 354 Expected administrative expenses 450 250 Interest cost 892 926 Expected return on Plan assets (1,334) (1,008) Special termination benefits 1,918 — Settlements, curtailments and other 1,314 — Total net periodic benefit cost 3,575 522 Other changes in Plan assets and benefit obligations recognized in other comprehensive income Net actuarial loss arising during measurement period 3,642 2,823 Amortization of net actuarial gain (3,232) — Total recognized in other comprehensive income 410 2,823 Total recognized in net periodic benefit cost and other comprehensive income $ 3,985 $ 3,345 Weighted average assumptions used to determine benefit obligations as of August 31, 2020 and 2019 are detailed below. 2020 2019 Effective discount rate for benefit obligations 2.8 % 3.2 % Weighted average assumptions used to determine net periodic benefit cost for 2020 and 2019 are detailed below. 2020 (1) 2019 Effective rate for interest on benefit obligations 2.8 % 4.3 % Effective rate for service cost 3.3 % 4.7 % Expected long-term rate of return 6.0 % 6.0 % __________________________________ (1) Certain weighted average assumptions used to determine net periodic benefit cost for 2020 were remeasured at an interim date. This remeasurement resulted in an effective rate for interest on benefit obligations of 2.9% and an effective rate for service cost of 3.5%. The Company determines the discount rate used to measure liabilities as of the August 31 measurement date for the Plan, which is also the date used for the related annual measurement assumptions. The discount rate reflects the current rate at which the associated liabilities could be effectively settled at the end of the year. The Company sets its rate to reflect the yield of a portfolio of high quality corporate bonds that would produce cash flows sufficient in timing and amount to settle projected future benefits. The Company measures service cost and interest cost separately using the full yield curve approach applied to each corresponding obligation. Service costs are determined based on duration-specific spot rates applied to the service cost cash flows. The interest cost calculation is determined by applying duration-specific spot rates to the year-by-year projected benefit payments. The full yield curve approach does not affect the measurement of the total benefit obligations. The Company’s assumption for the expected return on Plan assets was 6% in 2020. Projected returns are based primarily on broad, publicly traded equity and fixed income indices and forward-looking estimates. As of August 31, 2020, the Company’s expected long-term rate of return on Plan assets for 2021 is 5%. The expected return assumption is based on the strategic asset allocation of the Plan and long-term capital market return expectations. The Company does not expect to make any contributions in 2021. Future contributions will depend on market conditions, interest rates and other factors. Plan Assets Plan assets consist primarily of public equity and corporate bonds. The principal investment objectives are to maximize total return without assuming undue risk exposure. Each asset class has broadly diversified characteristics. Asset and benefit obligation forecasting studies are conducted periodically, generally every two to three years, or when significant changes have occurred in market conditions, benefits, participant demographics or funded status. The Plan's weighted average asset targets and actual allocations as a percentage of Plan assets, including the notional exposure of future contracts by asset categories, are detailed below. Pension Assets Target Percent 2020 2019 Fixed income securities 45% — 50% 48.1% 50.1% Equity securities: Domestic 25.0 — 30.0 26.9 26.0 International 10.0 — 15.0 13.1 12.7 Mutual funds 5.0 — 10.0 10.1 9.5 Cash — — 5.0 1.8 1.7 Total 100.0% 100.0% Investment Valuation Investments are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability at the measurement date. Investments in securities traded on a national securities exchange are valued at the last reported sales price on the final business day of the year. Fixed income securities are valued at the yields currently available on comparable securities of issues with similar credit ratings. Purchases and sales of securities are recorded as of the trade date. Realized gains and losses on sales of securities are determined based on average cost. Interest income is recognized on the accrual basis. Dividend income is recognized on the ex-dividend date. Non-interest bearing cash is valued at cost, which approximates fair value. Fair Value Measurements The following table sets forth the Plan assets by asset class as of August 31, 2020 and 2019. All securities are traded on a national securities exchange and therefore are Level 1 assets in the fair value hierarchy. (in thousands) Fair Value at Measurement Date Asset Class August 31, 2020 August 31, 2019 Fixed income securities $ 14,084 $ 11,738 Equity securities: Domestic 7,849 6,090 International 3,816 2,981 Mutual funds 2,937 2,232 Total equity securities 14,602 11,303 Cash 553 411 Total 29,239 23,452 Other (38) (17) Fair value of Plan assets $ 29,201 $ 23,435 Future Pension Benefit Payments The table provides the estimated pension benefit payments that are payable from the Plan to participants in the following years: Year Ended August 31, (in thousands) 2021 $ 2,082 2022 1,856 2023 1,843 2024 1,830 2025 1,790 Next five years 8,701 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Aug. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
CAPITAL STOCK | NOTE 17. CAPITAL STOCK Treasury Stock During the first quarter of 2015, the Board of Directors authorized a share repurchase program under which the Company may repurchase up to $100.0 million of the Company's common stock. The share repurchase program does not require the Company to acquire any dollar amount or number of shares of common stock and may be modified, suspended, extended or terminated at any time without prior notice. During 2020, 2019 and 2018, the Company did not purchase any shares of common stock. The Company had remaining authorization to purchase $27.6 million of common stock at August 31, 2020. Preferred Stock |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Aug. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 18. EARNINGS PER SHARE The calculations of basic and diluted earnings per share from continuing operations were as follows: Year Ended August 31, 2020 2019 2018 Earnings from continuing operations $ 278,302 $ 198,779 $ 135,237 Basic earnings per share: Shares outstanding for basic earnings per share 118,921,854 117,834,558 116,822,583 Basic earnings per share from continuing operations $ 2.34 $ 1.69 $ 1.16 Diluted earnings per share: Shares outstanding for basic earnings per share 118,921,854 117,834,558 116,822,583 Effect of dilutive securities: Stock-based incentive/purchase plans 1,387,767 1,290,070 1,323,265 Shares outstanding for diluted earnings per share 120,309,621 119,124,628 118,145,848 Diluted earnings per share from continuing operations $ 2.31 $ 1.67 $ 1.14 Anti-dilutive shares not included in the table above were immaterial for all periods presented. Shares of the Company's restricted stock are 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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Aug. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 19. 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. 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 Environmental Protection Agency ("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 August 31, 2020 and 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 as of August 31, 2020 and 2019, respectively, of which $2.7 million and $1.8 million were classified as other long-term liabilities as of August 31, 2020 and 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 uncertainties 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. |
ACCRUED EXPENSES AND OTHER PAYA
ACCRUED EXPENSES AND OTHER PAYABLES | 12 Months Ended |
Aug. 31, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER PAYABLES | NOTE 20. ACCRUED EXPENSES AND OTHER PAYABLES Significant accrued expenses and other payables were as follows: Year Ended August 31, (in thousands) 2020 2019 Salaries and incentive compensation $ 164,442 $ 133,705 Taxes other than income taxes 43,362 38,660 Worker's compensation and general liability insurance 39,375 38,485 |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Aug. 31, 2020 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | NOTE 21. BUSINESS SEGMENTS The Company's operating segments engage in business activities from which they may earn revenues and incur expenses and for which discrete financial information is available. Operating results for the operating segments are regularly reviewed by the Company's Chief Operating Decision Maker ("CODM") to make decisions about resources to be allocated to the segments and to assess performance. The Company's CODM is identified as the Chief Executive Officer, the Chief Operating Officer and the Chief Financial Officer. In the fourth quarter of 2020, the Company realigned its segment reporting structure to reflect: (i) its vertically integrated operating model in North America, which is now supported by a National Sales, Inventory and Operations Planning function created in 2020, (ii) changes to its operating model and geographic footprint following the full integration of the Acquired Businesses into its North America operations and (iii) the way the CODM now uses integrated North America data to manage the business, assess performance and allocate resources. The Company structures its business into the following two operating and reportable segments: North America and Europe. The reportable segments have different lines of management responsibility, as each requires different marketing strategies and management expertise. Segment financial information has been retrospectively adjusted to reflect these changes. See Note 1, Nature of Operations, for more information about the reporting segments, including the types of products and services from which each reportable segment derives its net sales. Corporate and Other contains earnings or losses on assets and liabilities related to the Company's BRP and short-term investments, expenses of the Company's corporate headquarters, interest expense related to its long-term debt and intercompany eliminations. Certain corporate administrative expenses are allocated to the segments based upon the nature of the expense. The accounting policies of the segments are the same as those described in Note 2, Summary of Significant Accounting Policies. The CODM uses adjusted EBITDA from continuing operations to evaluate segment performance and allocate resources. Adjusted EBITDA is the sum of the Company's earnings from continuing operations before interest expense, income taxes, depreciation and amortization expense and impairment expense. The following table summarizes certain financial information from continuing operations by reportable segment: (in thousands) North America Europe Corporate and Other Continuing Operations 2020 Net sales $ 4,769,933 $ 699,140 $ 7,413 $ 5,476,486 Adjusted EBITDA 661,176 62,007 (146,575) 576,608 Interest expense (1) 48,413 982 12,442 61,837 Capital expenditures 127,982 48,895 10,741 187,618 Depreciation and amortization 132,492 25,674 7,583 165,749 Asset impairments 7,606 5 — 7,611 Total assets (2) 2,862,805 532,850 686,073 4,081,728 2019 Net sales $ 5,001,116 $ 817,048 $ 10,838 $ 5,829,002 Adjusted EBITDA 456,296 100,102 (132,313) 424,085 Interest expense (1) 46,939 2,493 21,941 71,373 Capital expenditures 89,119 40,337 9,380 138,836 Depreciation and amortization 125,718 25,993 6,941 158,652 Asset impairments 369 15 — 384 Total assets (2) 2,991,996 464,177 302,598 3,758,771 2018 Net sales $ 3,738,493 $ 887,038 $ 18,192 $ 4,643,723 Adjusted EBITDA 323,993 131,720 (103,492) 352,221 Interest expense (1) 23,217 2,699 15,041 40,957 Capital expenditures 144,007 23,552 3,808 171,367 Depreciation and amortization 92,295 27,255 11,958 131,508 Asset impairments 14,345 27 — 14,372 Total assets (2) 2,115,049 485,548 727,707 3,328,304 __________________________________ (1) Includes intercompany interest expense in the segments, which is eliminated within Corporate and Other. (2) 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: Year Ended August 31, (in thousands) 2020 2019 2018 Earnings from continuing operations $ 278,302 $ 198,779 $ 135,237 Interest expense 61,837 71,373 40,957 Income taxes 92,476 69,681 30,147 Depreciation and amortization 165,749 158,652 131,508 Amortization of acquired unfavorable contract backlog (29,367) (74,784) — Asset impairments 7,611 384 14,372 Adjusted EBITDA from continuing operations $ 576,608 $ 424,085 $ 352,221 The following tables present net sales by reportable segment disaggregated by major product and geographic area: Year Ended August 31, 2020 (in thousands) North America Europe Corporate Total Major product: Raw material products $ 718,513 $ 9,692 $ — $ 728,205 Steel products 1,738,556 547,047 — 2,285,603 Downstream products 1,943,126 119,232 — 2,062,358 Other 369,738 21,660 8,922 400,320 Net sales-unaffiliated customers 4,769,933 697,631 8,922 5,476,486 Intersegment net sales, eliminated on consolidation — 1,509 (1,509) — Net sales $ 4,769,933 $ 699,140 $ 7,413 $ 5,476,486 Year Ended August 31, 2019 (in thousands) North America Europe Corporate Total Major product: Raw material products $ 953,858 $ 12,359 $ — $ 966,217 Steel products 1,763,017 646,974 — 2,409,991 Downstream products 1,936,994 133,823 — 2,070,817 Other 347,247 22,567 12,163 381,977 Net sales-unaffiliated customers 5,001,116 815,723 12,163 5,829,002 Intersegment net sales, eliminated on consolidation — 1,325 (1,325) — Net sales $ 5,001,116 $ 817,048 $ 10,838 $ 5,829,002 Year Ended August 31, 2018* (in thousands) North America Europe Corporate Total Major product: Raw material products $ 1,165,998 $ 15,213 $ — $ 1,181,211 Steel products 1,099,286 710,657 — 1,809,943 Downstream products 1,160,373 142,745 — 1,303,118 Other 312,810 17,304 19,337 349,451 Net sales-unaffiliated customers 3,738,467 885,919 19,337 4,643,723 Intersegment net sales, eliminated on consolidation 26 1,119 (1,145) — Net sales $ 3,738,493 $ 887,038 $ 18,192 $ 4,643,723 Year Ended August 31, (in thousands) 2020 2019 2018* Geographic area: United States $ 4,562,351 $ 4,771,164 $ 3,460,018 Poland 549,983 510,610 702,540 China 76,909 74,638 163,622 Germany 65,846 103,762 70,754 Other 221,397 368,828 246,789 Net sales $ 5,476,486 $ 5,829,002 $ 4,643,723 __________________________________ * Prior period amounts have been reported under ASC 605. The following table presents long-lived assets, net of accumulated depreciation and amortization, by geographic area: August 31, (in thousands) 2020 2019 2018 United States $ 1,483,127 $ 1,426,131 $ 1,001,102 Poland 225,166 173,045 171,460 Other 51 42 45 Total long-lived assets $ 1,708,344 $ 1,599,218 $ 1,172,607 |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Aug. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE 22. QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized quarterly financial data for 2020 and 2019 was as follows: Three Months Ended Fiscal 2020 (in thousands, except per share data) Nov. 30 Feb. 29 May 31 Aug. 31 Net sales (1) $ 1,384,708 $ 1,340,963 $ 1,341,683 $ 1,409,132 Gross profit (1) 238,194 217,867 225,330 263,407 Net earnings from continuing operations (2) 82,755 63,596 64,169 67,782 Net earnings (2) 83,348 63,798 64,734 67,623 Basic EPS from continuing operations 0.70 0.53 0.54 0.57 Diluted EPS from continuing operations 0.69 0.53 0.53 0.56 Basic EPS 0.70 0.54 0.54 0.57 Diluted EPS 0.70 0.53 0.54 0.56 Three Months Ended Fiscal 2019 (in thousands, except per share data) Nov. 30 Feb. 28 May 31 Aug. 31 Net sales (1) $ 1,277,342 $ 1,402,783 $ 1,605,872 $ 1,543,005 Gross profit (1) 158,909 150,290 241,630 252,659 Net earnings from continuing operations 19,420 14,928 78,551 85,880 Net earnings 19,742 13,850 78,390 86,111 Basic EPS from continuing operations 0.17 0.13 0.67 0.73 Diluted EPS from continuing operations 0.16 0.13 0.66 0.72 Basic EPS 0.17 0.12 0.66 0.73 Diluted EPS 0.17 0.12 0.66 0.72 __________________________________ |
SCHEDULE II _ VALUATION AND QUA
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Aug. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS Additions Deductions Description (in thousands) Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts (1) Charged to Costs and Expenses Charged to Other Accounts (2) Balance at End of Period Year Ended August 31, 2020 Allowance for doubtful accounts $ 8,403 $ 1,079 $ 2,220 $ — $ (2,105) $ 9,597 Deferred tax valuation allowance 283,560 4,733 (6,444) 281,849 Year Ended August 31, 2019 Allowance for doubtful accounts 4,489 1,820 4,718 (75) (2,549) 8,403 Deferred tax valuation allowance 268,554 22,220 (7,214) 283,560 Year Ended August 31, 2018 Allowance for doubtful accounts 4,146 2,645 (165) (136) (2,001) 4,489 Deferred tax valuation allowance 273,991 31,471 (36,908) 268,554 __________________________________ (1) Recoveries and translation adjustments. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned and majority owned subsidiaries and certain variable interest entities ("VIEs") for which the Company is the primary beneficiary. Intercompany account balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the Company's consolidated financial statements in accordance with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of net sales and expenses during the reporting period. Significant items subject to such estimates and assumptions include revenue recognition, income taxes, carrying value of inventory, acquisitions, goodwill, long-lived assets and contingencies. Actual results could differ significantly from these estimates and assumptions. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Revenue Recognition | Revenue Recognition and Allowance for Doubtful Accounts Revenue is recognized when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration received or expected to be received in exchange for those goods or services. The Company's performance obligations arise from (i) sales of raw materials, steel products and downstream products and (ii) services such as steel fabrication and installation by its fabrication operations. The shipment of products to customers is considered a fulfillment activity and amounts billed to customers for shipping and freight are included in net sales, and the related costs are included in cost of goods sold. Net sales are presented net of taxes. R evenue related to raw materials and steel products 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. Revenue related to steel fence posts and other downstream products not described below is recognized equal to billing under an available practical expedient. Each fabrication product contract sold by the North America segment represents a single performance obligation and revenue is recognized over time. For contracts where the Company provides fabricated product and installation services, revenue is recognized over time using an input measure of progress based on contract costs incurred to date compared to total estimated contract costs ("input measure"). This input measure 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 measure of progress based on tons shipped compared to total estimated tons ("output measure"). This output measure 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. 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 timing of revenue recognition may differ 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 subsequent to invoicing. Payment terms and conditions vary by contract type, although the Company generally requires customers to pay 30 days after the Company satisfies the performance obligations. 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. |
Allowance for Doubtful Accounts | The Company maintains an allowance for doubtful accounts to reflect its estimate of the uncollectability of accounts receivable. These reserves are based on historical trends, current market conditions and customers' financial condition. The Company reviews and sets credit limits for each customer. The Europe segment uses credit insurance to ensure payment in accordance with the terms of sale. Generally, collateral is not required. Approximately 13% of total receivables at August 31, 2020 and 2019 were secured by credit insurance. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value determined by the weighted average cost method. Elements of cost in finished goods inventory in addition to the cost of material include depreciation, amortization, utilities, consumable production supplies, maintenance, production, wages and transportation costs. Additionally, the costs of departments that support production, including materials management and quality control, are allocated to inventory. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost. Maintenance is expensed as incurred. Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term. Depreciation and amortization is recorded on a straight-line basis over the following estimated useful lives: Buildings 7 to 40 years Land improvements 3 to 25 years Leasehold improvements 3 to 15 years Equipment 3 to 25 years The Company evaluates impairment of its property, plant and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. For each asset or group of assets held for use with indicators of impairment, the Company compares the sum of the expected future cash flows generated by the asset or group of assets with its associated net |
Leases | Leases The Company's leases are primarily for real property 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 right-of-use ("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. The Company records its ROU assets in other noncurrent assets, its current lease liabilities in accrued expenses and other payables and its noncurrent lease liabilities in other noncurrent liabilities. 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”). 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. |
Government Assistance | Government Assistance Government assistance, including non-monetary grants, herein collectively referred to as grants, are not recognized until there is reasonable assurance that the Company will comply with the conditions of the grant and the Company will receive the grant. Generally, government grants fall into two categories: grants related to assets and grants related to income. Grants related to assets are government grants for the purchase, construction or other acquisition of long-lived assets. The Company accounts for grants related to assets as deferred income with the offset to an asset account, such as fixed assets, on the consolidated balance sheets. Non-monetary grants are recognized at fair value. The Company recognizes the deferred income in profit or loss on a systematic basis over the useful life of the asset, which, consistent with the Company's fixed assets policy, is straight-line. The period over which grants are recognized depends on the terms of the agreement. Grants related to specific expenses already incurred are recognized in profit or loss in the period in which the grant becomes receivable. A grant related to depreciable assets is recognized in profit or loss over the life of the depreciable asset. Grants related to non-depreciable assets may require the fulfillment of certain obligations. In such cases, these grants are recognized in profit or loss over the periods that bear the cost of meeting the obligations. Grants related to income are any grants that are not considered grants related to assets, such as grants to compensate for certain expenses. Grants related to income are recognized as a reduction in the related expense in the period that the recognition criteria are met. See Note 11, New Markets Tax Credit Transactions. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is tested for impairment at the reporting unit level annually and whenever events or circumstances indicate that the carrying value may not be recoverable. To evaluate goodwill for impairment, the Company utilizes a quantitative test that compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is indicated in the amount that the carrying value exceeds the fair value of the reporting unit, not to exceed the goodwill value for the reporting unit. The Company's reporting units represent an operating segment or one level below an operating segment. The Company estimates the fair value of its reporting units using a weighting of fair values derived from the income and market approaches. Under the income approach, the Company determines the fair value of a reporting unit based on the present value of estimated future cash flows. Cash flow projections are based on management's estimates of revenue growth rates and |
Contingencies | Contingencies The Company accrues for claims and litigation, including environmental investigation and remediation costs, when they are both probable and the amount can be reasonably estimated. Environmental costs are based upon estimates regarding the sites for which the Company will be responsible, the scope and cost of work to be performed at each site, the portion of costs that will be shared with other parties and the timing of remediation. Where timing and amounts cannot be reasonably determined, a range is estimated and the lower end of the range is recorded. |
Stock-Based Compensation | Stock-Based Compensation |
Income Taxes | Income Taxes CMC and its U.S. subsidiaries file a consolidated federal income tax return. Deferred income taxes are provided for temporary differences between financial statement and income tax bases of assets and liabilities. The principal differences are described in Note 14, Income Tax. Benefits from income tax credits are reflected currently in earnings. The Company records income tax positions based on a more likely than not threshold that the tax positions will be sustained on examination by the taxing authorities having full knowledge of all relevant information. The Company classifies interest and any statutory penalties recognized on a tax position as income tax expense. |
Foreign Currencies | Foreign Currencies |
Derivative Financial Instruments | Derivative Financial Instruments The Company recognizes derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Derivatives that are not designated as hedges are adjusted to fair value through net earnings. Changes in the fair value of derivatives that are designated as hedges are recognized depending on the nature of the hedge. In the case of fair value hedges, changes are recognized as an offset against the change in fair value of the hedged balance sheet item. When the derivative is designated as a cash flow hedge and is highly effective, changes are recognized in other comprehensive income. The ineffective portion of a change in fair value for derivatives designated as hedges is recognized in net earnings. When a derivative instrument is sold, terminated, exercised or expires, the gain or loss is recorded in the consolidated statement of earnings for fair value hedges, and the cumulative unrealized gain or loss, which had been recognized in the statement of comprehensive income, is reclassified to the consolidated statement of earnings for cash flow hedges. Additionally, when hedged items are sold or extinguished, or the anticipated transaction being hedged is no longer expected to occur, the Company recognizes the gain or loss on the designated hedged financial instrument. |
Fair Value | 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. Level 1 represents unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 represents quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable, either directly or indirectly. Level 3 represents valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
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 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 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. 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Estimated useful lives for depreciation and amortization | Depreciation and amortization is recorded on a straight-line basis over the following estimated useful lives: Buildings 7 to 40 years Land improvements 3 to 25 years Leasehold improvements 3 to 15 years Equipment 3 to 25 years |
CHANGES IN BUSINESS (Tables)
CHANGES IN BUSINESS (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of Fair Value of Assets Acquired and Liabilities Assumed | The table below presents the allocation of the fair value to the Acquired Businesses' assets and liabilities as determined by the Company: (in thousands) Fair Value Cash and cash equivalents $ 6,399 Accounts receivable 296,459 Inventories 202,082 Other current assets 26,290 Property, plant and equipment 421,969 Deferred income taxes 9,155 Accounts payable-trade, accrued expenses and other payables (134,702) Acquired unfavorable contract backlog (110,166) Other long-term liabilities (9,920) Pension and other post retirement employment benefits (6,365) Total assets acquired and liabilities assumed $ 701,201 |
Schedule of Pro Forma Information | Year Ended August 31, (in thousands) 2019 2018 Pro forma net sales (1) $ 6,033,908 $ 6,303,812 Pro forma net earnings (2) 162,255 105,377 __________________________________ (1) Pro forma net sales for the year ended August 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 year ended August 31, 2019. |
Financial information for discontinued operations | The major classes of line items constituting earnings from discontinued operations in the consolidated statements of earnings for 2018 are presented in the table below. Earnings (loss) from discontinued operations in the consolidated statements of earnings were immaterial in 2020 and 2019. (in thousands) Year Ended August 31, 2018 Net sales $ 304,650 Costs and expenses: Cost of goods sold 276,184 Selling, general and administrative expenses 25,317 Interest expense (86) Earnings before income taxes 3,235 Income taxes benefit (34) Earnings from discontinued operations $ 3,269 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | Accumulated other comprehensive income (loss) ("AOCI") was comprised of the following: (in thousands) Foreign Currency Translation Unrealized Gain (Loss) on Derivatives Defined Benefit Obligation Total AOCI Balance at September 1, 2017 $ (80,778) $ 1,587 $ (2,322) $ (81,513) Other comprehensive income (loss) before reclassifications (13,938) 59 (575) (14,454) Amounts reclassified from AOCI 2,079 (365) 849 2,563 Income taxes (benefit) — 75 (348) (273) Net other comprehensive loss (11,859) (231) (74) (12,164) Balance at August 31, 2018 (92,637) 1,356 (2,396) (93,677) Other comprehensive loss before reclassifications (29,718) (7) (3,346) (33,071) Amounts reclassified from AOCI 857 (301) 1,666 2,222 Income taxes — 58 342 400 Net other comprehensive loss (28,861) (250) (1,338) (30,449) Balance at August 31, 2019 (121,498) 1,106 (3,734) (124,126) Other comprehensive income (loss) before reclassifications 33,559 (14,983) (952) 17,624 Amounts reclassified from AOCI 6 (375) — (369) Income taxes — 2,918 189 3,107 Net other comprehensive income (loss) 33,565 (12,440) (763) 20,362 Balance at August 31, 2020 $ (87,933) $ (11,334) $ (4,497) $ (103,764) |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Information about Assets and Liabilities from Contracts with Customers | The following table provides information about assets and liabilities from contracts with customers. Year Ended August 31, (in thousands) 2020 2019 Contract assets (included in accounts receivable) $ 53,275 $ 103,805 Contract liabilities (included in accrued expenses and other payables) 25,450 37,165 |
ACCOUNTS RECEIVABLE PROGRAMS (A
ACCOUNTS RECEIVABLE PROGRAMS (Activity of the Deferred Purchase Price Receivables) (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Activity of the deferred purchase price receivables | (in thousands) Total U.S. Poland Deferred purchase price Balance at September 1, 2017 $ 215,123 $ 135,623 $ 79,500 Transfers of trade receivables 2,932,379 2,396,780 535,599 Less: CPP (2,187,377) (1,818,781) (368,596) Non-cash increase to DPP 745,002 577,999 167,003 Cash collections of DPP (670,457) (531,541) (138,916) Net repayments (advances) 77,853 90,000 (12,147) Net collections of DPP (592,604) (441,541) (151,063) Balance at August 31, 2018 $ 367,521 $ 272,081 $ 95,440 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | The following table details the changes in the carrying amount of goodwill by reportable segment: (in thousands) North America Europe Consolidated Goodwill, gross Balance at September 1, 2018 $ 71,941 $ 2,568 $ 74,509 Foreign currency translation — (184) (184) Balance at August 31, 2019 71,941 2,384 74,325 Foreign currency translation — 195 195 Balance at August 31, 2020 71,941 2,579 74,520 Accumulated impairment losses Balance at September 1, 2018 (10,036) (163) (10,199) Foreign currency translation — 12 12 Balance at August 31, 2019 (10,036) (151) (10,187) Foreign currency translation — (12) (12) Balance at August 31, 2020 (10,036) (163) (10,199) Goodwill, net Balance at September 1, 2018 61,905 2,405 64,310 Foreign currency translation — (172) (172) Balance at August 31, 2019 61,905 2,233 64,138 Foreign currency translation — 183 183 Balance at August 31, 2020 $ 61,905 $ 2,416 $ 64,321 |
Intangible assets subject to amortization | The following intangible assets subject to amortization are included in other noncurrent assets on the Company's consolidated balance sheets: August 31, 2020 August 31, 2019 (in thousands) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Patents $ 7,203 $ 2,647 $ 4,556 $ 6,993 $ 1,709 $ 5,284 Customer base 6,111 4,900 1,211 6,088 4,081 2,007 Perpetual lease rights 4,766 866 3,900 4,146 749 3,397 Non-compete agreements 3,050 422 2,628 2,810 382 2,428 Brand name 838 501 337 628 454 174 Other 101 85 16 101 79 22 Total $ 22,069 $ 9,421 $ 12,648 $ 20,766 $ 7,454 $ 13,312 |
Estimated future amortization expense of intangible assets | Estimated amounts of amortization expense for the next five years are as follows. Year Ended August 31, (in thousands) 2021 $ 2,030 2022 1,755 2023 1,296 2024 1,259 2025 922 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Aug. 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 consolidated balance sheet at August 31, 2020: (in thousands) Classification in Consolidated Balance Sheet August 31, 2020 Assets: Operating assets Other noncurrent assets $ 114,905 Finance assets Property, plant and equipment, net 50,642 Total leased assets $ 165,547 Liabilities: Operating lease liabilities: Current Accrued expenses and other payables $ 27,604 Long-term Other noncurrent liabilities 95,810 Total operating lease liabilities 123,414 Finance lease liabilities: Current Current maturities of long-term debt and short-term borrowings 14,373 Long-term Long-term debt 35,851 Total finance lease liabilities 50,224 Total lease liabilities $ 173,638 |
Lease Cost | The components of lease cost were as follows: (in thousands) Year Ended August 31, 2020 Operating lease expense $ 35,611 Finance lease expense: Amortization of assets 11,445 Interest on lease liabilities 1,792 Total finance lease expense 13,237 Variable and short term-lease expense 17,020 Total lease expense $ 65,868 The weighted average remaining lease term and discount rate for operating and finance leases are presented in the following table: August 31, 2020 Weighted average remaining lease term (years) Operating leases 6.3 Finance leases 3.8 Weighted average discount rate Operating leases 4.283 % Finance leases 4.270 % |
Cash Flow and Other Information Related to Leases | Cash flow and other information related to leases is included in the following table: (in thousands) Year Ended August 31, 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 36,063 Operating cash outflows from finance leases 1,720 Financing cash outflows from finance leases 12,774 ROU assets obtained in exchange for lease obligations: Operating leases 43,642 Finance leases 26,573 |
Maturity of Operating Lease Liabilities | Maturities of lease liabilities at August 31, 2020 are presented in the following table: (in thousands) Operating Leases Finance Leases 2021 $ 32,350 $ 16,227 2022 27,015 14,037 2023 22,035 11,675 2024 16,761 8,968 2025 12,052 3,569 Thereafter 32,312 69 Total lease payments 142,525 54,545 Less: Imputed interest 19,111 4,321 Present value of lease liabilities $ 123,414 $ 50,224 |
Maturity of Finance Lease Liabilities | Maturities of lease liabilities at August 31, 2020 are presented in the following table: (in thousands) Operating Leases Finance Leases 2021 $ 32,350 $ 16,227 2022 27,015 14,037 2023 22,035 11,675 2024 16,761 8,968 2025 12,052 3,569 Thereafter 32,312 69 Total lease payments 142,525 54,545 Less: Imputed interest 19,111 4,321 Present value of lease liabilities $ 123,414 $ 50,224 |
Future minimum lease commitments 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) | 12 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term debt, including the deferred gain from the termination of the interest rate swaps | Long-term debt was as follows: Weighted Average Year Ended August 31, (in thousands) 2020 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 Poland Term Loan 1.730% 40,713 — Other 5.100% 21,329 23,168 Term Loan 3.148% — 210,125 Short-term borrowings 0.980% — 3,929 Finance leases 50,224 37,699 Total debt 1,092,266 1,254,921 Less debt issuance costs 8,581 10,268 Total amounts outstanding 1,083,685 1,244,653 Less current maturities of long-term debt and short-term borrowings 18,149 17,439 Long-term debt $ 1,065,536 $ 1,227,214 In July 2017, the Company issued $300.0 million of 5.375% Senior Notes due July 2027 (the "2027 Notes"). Interest on these notes is payable semiannually. In May 2018, the Company issued $350.0 million of 5.750% Senior Notes due April 2026 (the "2026 Notes"). Interest on the 2026 Notes is payable semiannually. |
Scheduled maturities of the Company's long-term debt | The scheduled maturities of the Company's long-term debt, excluding obligations related to finance leases, are included in the table below. See Note 9, Leases, for scheduled maturities of finance leases. Year Ended August 31, (in thousands) 2021 $ 3,776 2022 9,576 2023 339,565 2024 11,706 2025 9,556 Thereafter 667,863 Total long-term debt, excluding finance leases 1,042,042 Less debt issuance costs 8,581 Total long-term debt outstanding, excluding finance leases $ 1,033,461 |
NEW MARKETS TAX CREDIT TRANSA_2
NEW MARKETS TAX CREDIT TRANSACTIONS New Markets Tax Credit Transactions (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of New Markets Tax Credit Transactions | The following table summarizes the key terms and conditions for each of the three NMTC transactions ($ in millions): Project USBCDC Capital Contribution Commonwealth Loan Commonwealth Loan Rate / Maturity Investment Fund(s) QEI to CDE CDE Loan Micro mill $17.7 $35.3 1.08% / December 24, 2045 USBCDC Investment Fund 156, LLC $51.5 $50.7 Spooler 6.7 14.0 1.39% / July 26, 2042 Twain Investment Fund 249, LLC 20.0 19.4 T-post shop 5.0 10.4 1.16% / March 23, 2047 Twain Investment Fund 219, LLC Twain Investment Fund 222, LLC 15.0 14.7 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Commodity Contract Commitments | The following table provides information regarding the Company's commodity contract commitments as of August 31, 2020: Commodity Long/Short Total Aluminum Long 1,675 MT Copper Long 556 MT Copper Short 8,346 MT Electricity Long 2,000,000 MW(h) __________________________________ MT = Metric Ton MW(h) = Megawatt hour |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Aug. 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) August 31, 2020 Quoted Prices in Significant Other Significant Assets: Investment deposit accounts (1) $ 449,824 $ 449,824 $ — $ — Commodity derivative assets (2) 202 202 — — Foreign exchange derivative assets (2) 1,484 — 1,484 — Liabilities: Commodity derivative liabilities (2) 19,000 3,993 15,007 Foreign exchange derivative liabilities (2) 459 — 459 — 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 the New York Mercantile Exchange. Amounts in Level 2 are based on broker quotes in the over-the-counter market. Derivative liabilities classified as Level 3, and the methodology used to determine their fair value, are described below. Further discussion regarding the Company's use of derivative instruments is included in Note 12, Derivatives. The fair value estimate of the Level 3 commodity derivative is based on an internally developed discounted cash flow model primarily utilizing unobservable inputs in which there is little or no market data. The Company forecasts future energy rates using a range of historical prices ("floating rate"). The floating rate is the only significant unobservable input used in the Company's discounted cash flow model. August 31, 2020 Unobservable Inputs Low High Average Floating rate (PLN) 151.66 243.88 200.70 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | Below is a reconciliation of the beginning and ending balances of the Level 3 commodity derivative recognized in the consolidated statements of comprehensive income. The fluctuation in energy rates over time may cause volatility in the fair value estimate and is the primary reason for the unrealized loss in other comprehensive income ("OCI") in 2020. (in thousands) August 31, 2020 Beginning balance $ — New commodity contract 1,083 Total gains (losses), realized and unrealized Recognized in earnings (1) — Recognized in OCI (2) (16,090) Ending balance $ (15,007) __________________________________ (1) Gains (losses) recognized in earnings are included in cost of goods sold on the consolidated statements of earnings. As the derivative will not begin to settle until 2021, no gains or losses were recorded in earnings in 2020. (2) Gains (losses) recognized in OCI are included in the unrealized holding gain (loss) on the consolidated statements of comprehensive income. |
Financial assets and liabilities that are 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 consolidated balance sheets were as follows: August 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 $ 319,377 $ 300,000 $ 303,810 2026 Notes (1) Level 2 350,000 367,374 350,000 363,444 2023 Notes (1) Level 2 330,000 345,335 330,000 342,098 Poland Term Loan (2) Level 2 40,713 40,713 — — Term Loan (2) Level 2 — — 210,125 210,125 Short-term borrowings (2) Level 2 — — 3,929 3,929 __________________________________ (1) The fair value of the notes was determined based on indicated market values. (2) The Poland Term Loan, Term Loan and short-term borrowings contain variable interest rates and carrying value approximates fair value. |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of earnings from continuing operations before income taxes (benefit) | The components of earnings from continuing operations before income taxes were as follows: Year Ended August 31, (in thousands) 2020 2019 2018 United States $ 334,170 $ 194,986 $ 86,731 Foreign 36,608 73,474 78,653 Total $ 370,778 $ 268,460 $ 165,384 |
Income taxes (benefit) included in the consolidated statements of operations | The income taxes (benefit) included in the consolidated statements of earnings were as follows: Year Ended August 31, (in thousands) 2020 2019 2018 Current: United States $ 26,901 $ 621 $ 20,210 Foreign 7,588 14,006 18,308 State and local 7,133 2,892 2,263 Current taxes 41,622 17,519 40,781 Deferred: United States 45,771 46,922 (11,501) Foreign (43) 490 (169) State and local 5,832 4,908 1,002 Deferred taxes 51,560 52,320 (10,668) Total income taxes on income 93,182 69,839 30,113 Income taxes (benefit) on discontinued operations 706 158 (34) Income taxes on continuing operations $ 92,476 $ 69,681 $ 30,147 |
Reconciliation of the federal statutory rate to effective tax rate from continuing operations | A reconciliation of the federal statutory rate to the Company's effective income tax rate from continuing operations, including material items impacting the effective income tax rate, is as follows: Year Ended August 31, (in thousands) 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 25.7 % Income tax expense at statutory rate $ 77,863 $ 56,377 $ 42,471 State and local taxes 9,895 6,085 2,317 Foreign tax impairment on valuation of subsidiaries (1) 5,084 (29,697) 22,315 Foreign rate differential (2) (1,346) (1,466) (5,973) Research and experimentation benefits (1,085) (580) (4,707) Change in valuation allowance 968 36,167 (20,839) Nontaxable foreign interest (1) 8 (9,799) (17,414) TCJA - Toll charge and related foreign tax credits — 7,410 29,466 TCJA - Remeasurement of deferred tax balances — (586) (25,515) Audit settlement — 120 (3,187) Gain on international restructure (1) — — 18,926 Worthless stock deduction (3) — — (6,084) Other 1,089 5,650 (1,629) Income tax expense on continuing operations $ 92,476 $ 69,681 $ 30,147 Effective income tax rate from continuing operations 24.9 % 26.0 % 18.2 % __________________________________ (1) Fully offset by a valuation allowance. (2) The impact of global income from operations in jurisdictions with lower statutory tax rates than the U.S., including Poland, which has a statutory income tax rate of 19.0%. (3) Permanent tax benefit related to a worthless stock deduction from the reorganization and exit of the Company's steel trading business headquartered in the United Kingdom. |
Tax effects of significant temporary differences giving rise to deferred tax assets and liabilities | The income tax effects of significant temporary differences giving rise to deferred tax assets and liabilities were as follows: Year Ended August 31, (in thousands) 2020 2019 Deferred tax assets: Net operating losses and credits $ 283,416 $ 295,241 Deferred compensation and employee benefits 32,293 24,432 Reserves and other accrued expenses 30,371 42,833 ROU operating lease liabilities 29,619 — Other 3,315 19,526 Total deferred tax assets 379,014 382,032 Valuation allowance for deferred tax assets (281,849) (283,560) Deferred tax assets, net 97,165 98,472 Deferred tax liabilities: Property, plant and equipment (185,595) (168,701) ROU operating lease assets (28,201) — Other (2,420) (1,182) Total deferred tax liabilities (216,216) (169,883) Net deferred tax liabilities $ (119,051) $ (71,411) |
Reconciliation of the beginning and ending amounts of unrecognized tax benefits | A reconciliation of the beginning and ending amounts of unrecognized income tax benefits is as follows: Year Ended August 31, (in thousands) 2020 2019 2018 Balance at September 1, $ 8,652 $ 3,121 $ 9,283 Change for tax positions of prior years — 5,531 3,121 Reductions due to settlements with taxing authorities — — (8,028) Reductions due to lapse of statute of limitations — — (1,255) Balance at August 31, (1) $ 8,652 $ 8,652 $ 3,121 __________________________________ (1) The full balance of unrecognized income tax benefits in each year, if recognized, would have impacted the Company’s effective income tax rate at the end of each respective year. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Total awards granted | The following table summarizes the total awards granted: Restricted Stock Performance 2020 grants 997,454 536,022 2019 grants 889,238 483,984 2018 grants 667,341 367,514 |
Restricted stock units and performance stock units, excluding the cash component | Information for restricted stock units and performance stock units, excluding those expected to settle in cash, is as follows: Number Weighted Average Outstanding as of September 1, 2017 2,453,580 $ 15.65 Granted 1,216,461 20.69 Vested (1,685,898) 18.00 Forfeited (183,425) 15.89 Outstanding as of August 31, 2018 1,800,718 16.82 Granted 1,505,449 17.75 Vested (992,167) 20.09 Forfeited (34,432) 17.90 Outstanding as of August 31, 2019 2,279,568 15.99 Granted 1,529,212 18.32 Vested (1,417,552) 18.80 Forfeited (145,591) 21.35 Outstanding as of August 31, 2020 2,245,637 $ 18.79 |
Yearly activity of the stock purchase plan | early activity of the stock purchase plan was as follows: 2020 2019 2018 Shares subscribed 347,870 446,950 289,040 Price per share $ 18.80 $ 13.80 $ 17.84 Shares purchased 365,990 226,860 123,930 Price per share $ 13.80 $ 17.84 $ 18.99 Shares available for future issuance 2,338,304 |
EMPLOYEES' RETIREMENT PLANS EMP
EMPLOYEES' RETIREMENT PLANS EMPLOYEES' RETIREMENT PLANS (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Retirement Benefits [Abstract] | |
Changes in Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The following tables include a reconciliation of the beginning and ending balances of pension benefit obligation and the fair value of Plan assets and the related amounts recognized in the Company’s consolidated balance sheets as of August 31, 2020 and 2019. (in thousands) 2020 2019 Benefit obligation at beginning of year $ 31,661 $ — Acquisition — 26,336 Service cost 335 354 Interest cost 892 926 Curtailment loss 1,314 — Special termination benefits 1,918 — Actuarial loss 1,280 4,883 Benefits paid (1,270) (838) Benefit obligation at end of year 36,130 31,661 Fair value of Plan assets at beginning of year $ 23,435 $ — Acquisition — 21,023 Actual return on Plan assets 2,248 2,887 Administrative expenses (496) (69) Employer contributions 5,284 432 Benefits paid (1,270) (838) Fair value of Plan assets at end of year 29,201 23,435 Funded status at end of year (net liability recognized in balance sheet as of August 31,) $ (6,929) $ (8,226) Amounts recognized in accumulated other comprehensive income as of August 31, Net actuarial loss $ 3,234 $ 2,823 |
Schedule of Net Periodic Benefit Costs | Components of net periodic benefit cost and other supplemental information are detailed below. (in thousands) 2020 2019 Service cost $ 335 $ 354 Expected administrative expenses 450 250 Interest cost 892 926 Expected return on Plan assets (1,334) (1,008) Special termination benefits 1,918 — Settlements, curtailments and other 1,314 — Total net periodic benefit cost 3,575 522 Other changes in Plan assets and benefit obligations recognized in other comprehensive income Net actuarial loss arising during measurement period 3,642 2,823 Amortization of net actuarial gain (3,232) — Total recognized in other comprehensive income 410 2,823 Total recognized in net periodic benefit cost and other comprehensive income $ 3,985 $ 3,345 |
Schedule of Weighted-average Assumptions Used | Weighted average assumptions used to determine benefit obligations as of August 31, 2020 and 2019 are detailed below. 2020 2019 Effective discount rate for benefit obligations 2.8 % 3.2 % Weighted average assumptions used to determine net periodic benefit cost for 2020 and 2019 are detailed below. 2020 (1) 2019 Effective rate for interest on benefit obligations 2.8 % 4.3 % Effective rate for service cost 3.3 % 4.7 % Expected long-term rate of return 6.0 % 6.0 % __________________________________ |
Schedule of Allocation of Plan Assets | The Plan's weighted average asset targets and actual allocations as a percentage of Plan assets, including the notional exposure of future contracts by asset categories, are detailed below. Pension Assets Target Percent 2020 2019 Fixed income securities 45% — 50% 48.1% 50.1% Equity securities: Domestic 25.0 — 30.0 26.9 26.0 International 10.0 — 15.0 13.1 12.7 Mutual funds 5.0 — 10.0 10.1 9.5 Cash — — 5.0 1.8 1.7 Total 100.0% 100.0% The following table sets forth the Plan assets by asset class as of August 31, 2020 and 2019. All securities are traded on a national securities exchange and therefore are Level 1 assets in the fair value hierarchy. (in thousands) Fair Value at Measurement Date Asset Class August 31, 2020 August 31, 2019 Fixed income securities $ 14,084 $ 11,738 Equity securities: Domestic 7,849 6,090 International 3,816 2,981 Mutual funds 2,937 2,232 Total equity securities 14,602 11,303 Cash 553 411 Total 29,239 23,452 Other (38) (17) Fair value of Plan assets $ 29,201 $ 23,435 |
Schedule of Future Pension Benefit Payments | The table provides the estimated pension benefit payments that are payable from the Plan to participants in the following years: Year Ended August 31, (in thousands) 2021 $ 2,082 2022 1,856 2023 1,843 2024 1,830 2025 1,790 Next five years 8,701 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculations of basic and diluted earnings per share from continuing operations | The calculations of basic and diluted earnings per share from continuing operations were as follows: Year Ended August 31, 2020 2019 2018 Earnings from continuing operations $ 278,302 $ 198,779 $ 135,237 Basic earnings per share: Shares outstanding for basic earnings per share 118,921,854 117,834,558 116,822,583 Basic earnings per share from continuing operations $ 2.34 $ 1.69 $ 1.16 Diluted earnings per share: Shares outstanding for basic earnings per share 118,921,854 117,834,558 116,822,583 Effect of dilutive securities: Stock-based incentive/purchase plans 1,387,767 1,290,070 1,323,265 Shares outstanding for diluted earnings per share 120,309,621 119,124,628 118,145,848 Diluted earnings per share from continuing operations $ 2.31 $ 1.67 $ 1.14 |
ACCRUED EXPENSES AND OTHER PA_2
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Payables and Accruals [Abstract] | |
Significant accrued expenses and other payables | Significant accrued expenses and other payables were as follows: Year Ended August 31, (in thousands) 2020 2019 Salaries and incentive compensation $ 164,442 $ 133,705 Taxes other than income taxes 43,362 38,660 Worker's compensation and general liability insurance 39,375 38,485 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of certain financial information from continuing operations by reportable segment | The following table summarizes certain financial information from continuing operations by reportable segment: (in thousands) North America Europe Corporate and Other Continuing Operations 2020 Net sales $ 4,769,933 $ 699,140 $ 7,413 $ 5,476,486 Adjusted EBITDA 661,176 62,007 (146,575) 576,608 Interest expense (1) 48,413 982 12,442 61,837 Capital expenditures 127,982 48,895 10,741 187,618 Depreciation and amortization 132,492 25,674 7,583 165,749 Asset impairments 7,606 5 — 7,611 Total assets (2) 2,862,805 532,850 686,073 4,081,728 2019 Net sales $ 5,001,116 $ 817,048 $ 10,838 $ 5,829,002 Adjusted EBITDA 456,296 100,102 (132,313) 424,085 Interest expense (1) 46,939 2,493 21,941 71,373 Capital expenditures 89,119 40,337 9,380 138,836 Depreciation and amortization 125,718 25,993 6,941 158,652 Asset impairments 369 15 — 384 Total assets (2) 2,991,996 464,177 302,598 3,758,771 2018 Net sales $ 3,738,493 $ 887,038 $ 18,192 $ 4,643,723 Adjusted EBITDA 323,993 131,720 (103,492) 352,221 Interest expense (1) 23,217 2,699 15,041 40,957 Capital expenditures 144,007 23,552 3,808 171,367 Depreciation and amortization 92,295 27,255 11,958 131,508 Asset impairments 14,345 27 — 14,372 Total assets (2) 2,115,049 485,548 727,707 3,328,304 __________________________________ (1) Includes intercompany interest expense in the segments, which is eliminated within Corporate and Other. (2) Total assets listed in Corporate and Other includes assets from discontinued operations. |
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: Year Ended August 31, (in thousands) 2020 2019 2018 Earnings from continuing operations $ 278,302 $ 198,779 $ 135,237 Interest expense 61,837 71,373 40,957 Income taxes 92,476 69,681 30,147 Depreciation and amortization 165,749 158,652 131,508 Amortization of acquired unfavorable contract backlog (29,367) (74,784) — Asset impairments 7,611 384 14,372 Adjusted EBITDA from continuing operations $ 576,608 $ 424,085 $ 352,221 |
External net sales from continuing operations by geographic area | Year Ended August 31, (in thousands) 2020 2019 2018* Geographic area: United States $ 4,562,351 $ 4,771,164 $ 3,460,018 Poland 549,983 510,610 702,540 China 76,909 74,638 163,622 Germany 65,846 103,762 70,754 Other 221,397 368,828 246,789 Net sales $ 5,476,486 $ 5,829,002 $ 4,643,723 __________________________________ * Prior period amounts have been reported under ASC 605. |
Net sales by major product | The following tables present net sales by reportable segment disaggregated by major product and geographic area: Year Ended August 31, 2020 (in thousands) North America Europe Corporate Total Major product: Raw material products $ 718,513 $ 9,692 $ — $ 728,205 Steel products 1,738,556 547,047 — 2,285,603 Downstream products 1,943,126 119,232 — 2,062,358 Other 369,738 21,660 8,922 400,320 Net sales-unaffiliated customers 4,769,933 697,631 8,922 5,476,486 Intersegment net sales, eliminated on consolidation — 1,509 (1,509) — Net sales $ 4,769,933 $ 699,140 $ 7,413 $ 5,476,486 Year Ended August 31, 2019 (in thousands) North America Europe Corporate Total Major product: Raw material products $ 953,858 $ 12,359 $ — $ 966,217 Steel products 1,763,017 646,974 — 2,409,991 Downstream products 1,936,994 133,823 — 2,070,817 Other 347,247 22,567 12,163 381,977 Net sales-unaffiliated customers 5,001,116 815,723 12,163 5,829,002 Intersegment net sales, eliminated on consolidation — 1,325 (1,325) — Net sales $ 5,001,116 $ 817,048 $ 10,838 $ 5,829,002 Year Ended August 31, 2018* (in thousands) North America Europe Corporate Total Major product: Raw material products $ 1,165,998 $ 15,213 $ — $ 1,181,211 Steel products 1,099,286 710,657 — 1,809,943 Downstream products 1,160,373 142,745 — 1,303,118 Other 312,810 17,304 19,337 349,451 Net sales-unaffiliated customers 3,738,467 885,919 19,337 4,643,723 Intersegment net sales, eliminated on consolidation 26 1,119 (1,145) — Net sales $ 3,738,493 $ 887,038 $ 18,192 $ 4,643,723 |
Long-lived assets by geographic area | The following table presents long-lived assets, net of accumulated depreciation and amortization, by geographic area: August 31, (in thousands) 2020 2019 2018 United States $ 1,483,127 $ 1,426,131 $ 1,001,102 Poland 225,166 173,045 171,460 Other 51 42 45 Total long-lived assets $ 1,708,344 $ 1,599,218 $ 1,172,607 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized quarterly financial data | Summarized quarterly financial data for 2020 and 2019 was as follows: Three Months Ended Fiscal 2020 (in thousands, except per share data) Nov. 30 Feb. 29 May 31 Aug. 31 Net sales (1) $ 1,384,708 $ 1,340,963 $ 1,341,683 $ 1,409,132 Gross profit (1) 238,194 217,867 225,330 263,407 Net earnings from continuing operations (2) 82,755 63,596 64,169 67,782 Net earnings (2) 83,348 63,798 64,734 67,623 Basic EPS from continuing operations 0.70 0.53 0.54 0.57 Diluted EPS from continuing operations 0.69 0.53 0.53 0.56 Basic EPS 0.70 0.54 0.54 0.57 Diluted EPS 0.70 0.53 0.54 0.56 Three Months Ended Fiscal 2019 (in thousands, except per share data) Nov. 30 Feb. 28 May 31 Aug. 31 Net sales (1) $ 1,277,342 $ 1,402,783 $ 1,605,872 $ 1,543,005 Gross profit (1) 158,909 150,290 241,630 252,659 Net earnings from continuing operations 19,420 14,928 78,551 85,880 Net earnings 19,742 13,850 78,390 86,111 Basic EPS from continuing operations 0.17 0.13 0.67 0.73 Diluted EPS from continuing operations 0.16 0.13 0.66 0.72 Basic EPS 0.17 0.12 0.66 0.73 Diluted EPS 0.17 0.12 0.66 0.72 __________________________________ (1) Excludes discontinued operations. (2) Fourth quarter results include a $32.1 million charge for a working capital adjustment related to the Acquisition, which was recorded subsequent to the end of the allowable one-year measurement period. |
NATURE OF OPERATIONS (Narrative
NATURE OF OPERATIONS (Narrative) (Details) | 12 Months Ended | |
Aug. 31, 2020segmentsnumberOfRerollingMillsmicro_millmini_mill | Nov. 05, 2018mini_mill | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of electric arc furnace mini mills | mini_mill | 7 | 4 |
Number of electric arc furnace micro mills | micro_mill | 2 | |
Number of rerolling mills | numberOfRerollingMills | 2 | |
Number of business segments | segments | 2 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | Aug. 31, 2020 | Sep. 01, 2019 | Aug. 31, 2019 |
Operating assets | $ 114,905,000 | ||
Total operating lease liabilities | 123,414,000 | ||
Retained earnings | $ 1,807,826,000 | $ 1,585,379,000 | |
Receivables secured by credit insurance or letters of credit | |||
Percentage of accounts receivable secured by credit insurance or letters of credit | 13.00% | 13.00% | |
Cumulative Effect, Period of Adoption, Adjustment | |||
Retained earnings | $ 0 | ||
Accounting Standards Update 2016-02 | Other Noncurrent Assets | |||
Operating assets | 113,400,000 | ||
Accounting Standards Update 2016-02 | Accrued Expenses and Other Payables | |||
Total operating lease liabilities | 30,900,000 | ||
Accounting Standards Update 2016-02 | Other Long-term Liabilities | |||
Total operating lease liabilities | $ 84,900,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated Useful Lives of Property, Plant and Equipment) (Details) | 12 Months Ended |
Aug. 31, 2020 | |
Buildings | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Buildings | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Land improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Land improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 25 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 25 years |
CHANGES IN BUSINESS (Details)
CHANGES IN BUSINESS (Details) $ in Millions | Nov. 05, 2018USD ($)fabrication_facilitymini_mill | Oct. 31, 2019USD ($) | May 31, 2018USD ($) | Aug. 31, 2020USD ($)locationmini_mill | Aug. 31, 2018USD ($) |
Business Combinations [Abstract] | |||||
Number of rebar fabrication facilities acquired | fabrication_facility | 33 | ||||
Number of electric arc furnace mini mills | mini_mill | 4 | 7 | |||
Cash purchase price | $ 701.2 | ||||
Net sales of acquired business | $ 1,400 | ||||
Net earnings of acquired business | 132.7 | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Facility closure costs | $ 9.8 | $ 6.2 | |||
Number of facilities idled | location | 6 | ||||
Severance costs | $ 6.7 | ||||
Structural Steel Fabrication Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of business | $ 20.3 | ||||
Nonrecurring impairment charge | $ 13.7 | ||||
Australian Steel Trading Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Currency translation gain (loss) | 2.1 | ||||
Pre-tax gain (loss) | $ 5.3 |
CHANGES IN BUSINESS - Assets Ac
CHANGES IN BUSINESS - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Aug. 31, 2020 | Aug. 31, 2018 | Nov. 05, 2019 | Aug. 31, 2019 | Nov. 05, 2018 | |
Business Acquisition [Line Items] | |||||
Acquired unfavorable contract backlog | $ (6,035) | $ (35,360) | $ (110,200) | ||
Settlement of working capital adjustment | $ 32,100 | $ 51,700 | |||
2019 Acquisitions | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 6,399 | ||||
Accounts receivable | 296,459 | ||||
Inventories | 202,082 | ||||
Other current assets | 26,290 | ||||
Property, plant and equipment | 421,969 | ||||
Deferred income taxes | 9,155 | ||||
Accounts payable-trade, accrued expenses and other payables | (134,702) | ||||
Acquired unfavorable contract backlog | (110,166) | ||||
Other long-term liabilities | (9,920) | ||||
Pension and other post retirement employment benefits | (6,365) | ||||
Total assets acquired and liabilities assumed | $ 701,201 |
CHANGES IN BUSINESS - Financial
CHANGES IN BUSINESS - Financial Results and Pro Forma Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Business Combinations [Abstract] | |||
Pro forma net sales | $ 6,033,908 | $ 6,303,812 | |
Pro forma net earnings | $ 162,255 | 105,377 | |
Acquisition related costs | $ 32,100 | $ 51,700 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Earnings (loss) before income taxes | $ 1,907 | $ (528) | $ 3,235 |
International Marketing and Distribution | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 304,650 | ||
Cost of goods sold | 276,184 | ||
Selling, general and administrative expenses | 25,317 | ||
Interest expense | (86) | ||
Earnings (loss) before income taxes | 3,235 | ||
Income taxes benefit | (34) | ||
Earnings from discontinued operations | $ 3,269 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI by Components) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | $ (124,126) | $ (93,677) | $ (81,513) |
Other comprehensive income (loss) before reclassifications | 17,624 | (33,071) | (14,454) |
Amounts reclassified from AOCI | (369) | 2,222 | 2,563 |
Income taxes (benefit) | 3,107 | 400 | (273) |
Other comprehensive income (loss) | 20,362 | (30,449) | (12,164) |
Balance | (103,764) | (124,126) | (93,677) |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | (121,498) | (92,637) | (80,778) |
Other comprehensive income (loss) before reclassifications | 33,559 | (29,718) | (13,938) |
Amounts reclassified from AOCI | 6 | 857 | 2,079 |
Income taxes (benefit) | 0 | 0 | 0 |
Other comprehensive income (loss) | 33,565 | (28,861) | (11,859) |
Balance | (87,933) | (121,498) | (92,637) |
Unrealized Gain (Loss) on Derivatives | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | 1,106 | 1,356 | 1,587 |
Other comprehensive income (loss) before reclassifications | (14,983) | (7) | 59 |
Amounts reclassified from AOCI | (375) | (301) | (365) |
Income taxes (benefit) | 2,918 | 58 | 75 |
Other comprehensive income (loss) | (12,440) | (250) | (231) |
Balance | (11,334) | 1,106 | 1,356 |
Defined Benefit Obligation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance | (3,734) | (2,396) | (2,322) |
Other comprehensive income (loss) before reclassifications | (952) | (3,346) | (575) |
Amounts reclassified from AOCI | 0 | 1,666 | 849 |
Income taxes (benefit) | 189 | 342 | (348) |
Other comprehensive income (loss) | (763) | (1,338) | (74) |
Balance | $ (4,497) | $ (3,734) | $ (2,396) |
REVENUE RECOGNITION - Revenue R
REVENUE RECOGNITION - Revenue Recognition Method (Details) - Americas Fabrication | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Recognized as Amounts are Billed | ||
Disaggregation of Revenue [Line Items] | ||
Contract as percent of total segment revenue (percent) | 77.00% | 79.00% |
Fabricated Product and Installation Services | Recognized over Time | ||
Disaggregation of Revenue [Line Items] | ||
Contract as percent of total segment revenue (percent) | 12.00% | 12.00% |
Fabricated Product without Installation Services | Recognized over Time | ||
Disaggregation of Revenue [Line Items] | ||
Contract as percent of total segment revenue (percent) | 11.00% | 9.00% |
REVENUE RECOGNITION - Contract
REVENUE RECOGNITION - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets (included in accounts receivable) | $ 53,275 | $ 103,805 |
Contract liabilities (included in accrued expenses and other payables) | $ 25,450 | $ 37,165 |
REVENUE RECOGNITION - Remaining
REVENUE RECOGNITION - Remaining Performance Obligations (Details) $ in Millions | Aug. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-09-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 723.4 |
Remaining performance obligation (percent) | 40.00% |
Remaining performance obligation, period of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-09-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (percent) | 48.00% |
Remaining performance obligation, period of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-09-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation (percent) | 12.00% |
Remaining performance obligation, period of satisfaction |
ACCOUNTS RECEIVABLE PROGRAMS (N
ACCOUNTS RECEIVABLE PROGRAMS (Narrative) (Details) $ in Thousands | 12 Months Ended |
Aug. 31, 2018USD ($) | |
Deferred purchase price receivables | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |
Transfers of trade accounts receivable | $ 2,932,379 |
United States | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |
Advance payments outstanding | 0 |
United States | Deferred purchase price receivables | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |
Transfers of trade accounts receivable | 2,396,780 |
Poland | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |
Advance payments outstanding | 12,100 |
Poland | Deferred purchase price receivables | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |
Transfers of trade accounts receivable | 535,599 |
Financial Institutions | Deferred purchase price receivables | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |
Transfers of trade accounts receivable | $ 381,100 |
ACCOUNTS RECEIVABLE PROGRAMS _2
ACCOUNTS RECEIVABLE PROGRAMS (Activity of the Deferred Purchase Price Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for Which Transfer is Accounted as Sale [Roll Forward] | |||
Net repayments (advances) | $ 0 | $ 0 | $ 304,178 |
Deferred purchase price receivables | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for Which Transfer is Accounted as Sale [Roll Forward] | |||
Beginning balance | 367,521 | 215,123 | |
Transfers of trade accounts receivable | 2,932,379 | ||
Less: CPP | (2,187,377) | ||
Non-cash increase to DPP | 745,002 | ||
Cash collections of DPP | (670,457) | ||
Net repayments (advances) | 77,853 | ||
Net collections of DPP | (592,604) | ||
Ending balance | 367,521 | ||
Deferred purchase price receivables | United States | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for Which Transfer is Accounted as Sale [Roll Forward] | |||
Beginning balance | 272,081 | 135,623 | |
Transfers of trade accounts receivable | 2,396,780 | ||
Less: CPP | (1,818,781) | ||
Non-cash increase to DPP | 577,999 | ||
Cash collections of DPP | (531,541) | ||
Net repayments (advances) | 90,000 | ||
Net collections of DPP | (441,541) | ||
Ending balance | 272,081 | ||
Deferred purchase price receivables | Poland | |||
Securitization or Asset-backed Financing Arrangement, Financial Asset for Which Transfer is Accounted as Sale [Roll Forward] | |||
Beginning balance | $ 95,440 | 79,500 | |
Transfers of trade accounts receivable | 535,599 | ||
Less: CPP | (368,596) | ||
Non-cash increase to DPP | 167,003 | ||
Cash collections of DPP | (138,916) | ||
Net repayments (advances) | (12,147) | ||
Net collections of DPP | (151,063) | ||
Ending balance | $ 95,440 |
INVENTORIES (Narrative) (Detail
INVENTORIES (Narrative) (Details) - USD ($) $ in Millions | Aug. 31, 2020 | Aug. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 123.9 | $ 143.7 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Changes in the Carrying Amount of Goodwill) (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Goodwill [Line Items] | |||
Goodwill, beginning | $ 74,325,000 | $ 74,509,000 | |
Foreign currency translation | 195,000 | (184,000) | |
Goodwill, ending | 74,520,000 | 74,325,000 | $ 74,509,000 |
Accumulated impairment loss, beginning | (10,187,000) | (10,199,000) | |
Foreign currency translation | (12,000) | 12,000 | |
Accumulated impairment loss, ending | (10,199,000) | (10,187,000) | (10,199,000) |
Goodwill, net | 64,321,000 | 64,138,000 | 64,310,000 |
Foreign currency translation | 183,000 | (172,000) | |
Goodwill, net | 64,321,000 | 64,138,000 | 64,310,000 |
Goodwill impairment | 0 | 0 | 0 |
North America | |||
Goodwill [Line Items] | |||
Goodwill, beginning | 71,941,000 | 71,941,000 | |
Foreign currency translation | 0 | 0 | |
Goodwill, ending | 71,941,000 | 71,941,000 | 71,941,000 |
Accumulated impairment loss, beginning | (10,036,000) | (10,036,000) | |
Foreign currency translation | 0 | 0 | |
Accumulated impairment loss, ending | (10,036,000) | (10,036,000) | (10,036,000) |
Goodwill, net | 61,905,000 | 61,905,000 | 61,905,000 |
Foreign currency translation | 0 | 0 | |
Goodwill, net | 61,905,000 | 61,905,000 | 61,905,000 |
Europe | |||
Goodwill [Line Items] | |||
Goodwill, beginning | 2,384,000 | 2,568,000 | |
Foreign currency translation | 195,000 | (184,000) | |
Goodwill, ending | 2,579,000 | 2,384,000 | 2,568,000 |
Accumulated impairment loss, beginning | (151,000) | (163,000) | |
Foreign currency translation | (12,000) | 12,000 | |
Accumulated impairment loss, ending | (163,000) | (151,000) | (163,000) |
Goodwill, net | 2,416,000 | 2,233,000 | 2,405,000 |
Foreign currency translation | 183,000 | (172,000) | |
Goodwill, net | $ 2,416,000 | $ 2,233,000 | $ 2,405,000 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Intangible Assets) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 22,069 | $ 20,766 |
Accumulated Amortization | 9,421 | 7,454 |
Net | 12,648 | 13,312 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,203 | 6,993 |
Accumulated Amortization | 2,647 | 1,709 |
Net | 4,556 | 5,284 |
Customer base | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,111 | 6,088 |
Accumulated Amortization | 4,900 | 4,081 |
Net | 1,211 | 2,007 |
Perpetual lease rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,766 | 4,146 |
Accumulated Amortization | 866 | 749 |
Net | 3,900 | 3,397 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,050 | 2,810 |
Accumulated Amortization | 422 | 382 |
Net | 2,628 | 2,428 |
Brand name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 838 | 628 |
Accumulated Amortization | 501 | 454 |
Net | 337 | 174 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 101 | 101 |
Accumulated Amortization | 85 | 79 |
Net | $ 16 | $ 22 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Nov. 05, 2018 | |
Acquired unfavorable contract backlog | $ 6,035 | $ 35,360 | $ 110,200 | |
Amortization of acquired unfavorable contract backlog | 29,367 | 74,784 | $ 0 | |
Amortization expense for intangible assets | $ 2,100 | $ 2,200 | $ 2,200 | |
Perpetual lease rights | ||||
Weighted average remaining useful lives | 85 years | |||
Minimum | ||||
Weighted average remaining useful lives | 3 years | |||
Maximum | ||||
Weighted average remaining useful lives | 15 years |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS (Estimated Future Amortization Expense) (Details) $ in Thousands | Aug. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2021 | $ 2,030 |
2022 | 1,755 |
2023 | 1,296 |
2024 | 1,259 |
2025 | $ 922 |
Leases, Balance Sheet Component
Leases, Balance Sheet Components (Details) $ in Thousands | Aug. 31, 2020USD ($) |
Assets: | |
Operating assets | $ 114,905 |
Finance assets | 50,642 |
Total leased assets | 165,547 |
Operating lease liabilities: | |
Current | 27,604 |
Long-term | 95,810 |
Total operating lease liabilities | $ 123,414 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Finance lease liabilities: | |
Current | $ 14,373 |
Long-term | 35,851 |
Total finance lease liabilities | 50,224 |
Total lease liabilities | $ 173,638 |
Leases, Lease Cost (Details)
Leases, Lease Cost (Details) $ in Thousands | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating Lease, Cost | $ 35,611 |
Finance lease expense: | |
Amortization of assets | 11,445 |
Interest on lease liabilities | 1,792 |
Total finance lease expense | 13,237 |
Variable and short term-lease expense | 17,020 |
Total lease expense | $ 65,868 |
Leases, Weighted-average Lease
Leases, Weighted-average Lease Terms and Discount Rates (Details) | Aug. 31, 2020 | Aug. 31, 2019 |
Leases [Abstract] | ||
Operating leases, remaining term | 6 years 3 months 18 days | |
Finance leases, remaining term | 3 years 9 months 18 days | |
Operating leases, weighted average discount rate | 4.283% | |
Finance leases, weighted average discount rate | 4.27% |
Leases, Cash Flow and Other Inf
Leases, Cash Flow and Other Information Related to Leases (Details) $ in Thousands | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash outflows from operating leases | $ 36,063 |
Operating cash outflows from finance leases | 1,720 |
Financing cash outflows from finance leases | 12,774 |
ROU assets obtained in exchange for lease obligations: | |
Operating leases | 43,642 |
Finance leases | $ 26,573 |
Leases, Maturity of Lease Liabi
Leases, Maturity of Lease Liabilities (Details) $ in Thousands | Aug. 31, 2020USD ($) |
Operating Leases | |
2021 | $ 32,350 |
2022 | 27,015 |
2023 | 22,035 |
2024 | 16,761 |
2025 | 12,052 |
Thereafter | 32,312 |
Total lease payments | 142,525 |
Less: Imputed interest | 19,111 |
Total operating lease liabilities | 123,414 |
Finance Leases | |
2021 | 16,227 |
2022 | 14,037 |
2023 | 11,675 |
2024 | 8,968 |
2025 | 3,569 |
Thereafter | 69 |
Total lease payments | 54,545 |
Less: Imputed interest | 4,321 |
Total finance lease liabilities | $ 50,224 |
Leases, Future Lease Obligation
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) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | May 31, 2020 | Aug. 31, 2019 | Jul. 31, 2017 | May 31, 2013 |
Debt Instrument [Line Items] | |||||
Total long-term debt including current maturities | $ 1,092,266 | $ 1,254,921 | |||
Less debt issuance costs | 8,581 | 10,268 | |||
Total amounts outstanding | 1,083,685 | 1,244,653 | |||
Current maturities of long-term debt and short-term borrowings | 18,149 | 17,439 | |||
Long-term debt | $ 1,065,536 | 1,227,214 | |||
2027 Notes | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 5.375% | 5.375% | |||
Total long-term debt including current maturities | $ 300,000 | 300,000 | |||
2026 Notes | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 5.75% | 5.75% | |||
Total long-term debt including current maturities | $ 350,000 | 350,000 | |||
2023 Notes | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 4.875% | 4.875% | |||
Total long-term debt including current maturities | $ 330,000 | 330,000 | |||
Other | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 5.10% | ||||
Total long-term debt including current maturities | $ 21,329 | 23,168 | |||
Short-term borrowings | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt including current maturities | $ 0 | 3,929 | |||
Short-term borrowings | Poland Program | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 0.98% | ||||
Finance leases | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt including current maturities | $ 50,224 | 37,699 | |||
Revolving credit agreement | Poland Term Loan | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 1.73% | ||||
Total long-term debt including current maturities | $ 40,713 | 0 | |||
Revolving credit agreement | Term Loan | |||||
Debt Instrument [Line Items] | |||||
Weighted average interest rate | 3.148% | ||||
Total long-term debt including current maturities | $ 0 | $ 210,125 |
CREDIT ARRANGEMENTS (Narrative)
CREDIT ARRANGEMENTS (Narrative) (Details) | 12 Months Ended | ||||||||
Aug. 31, 2020USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2020PLN (zł) | May 31, 2020 | Nov. 01, 2018USD ($) | May 31, 2018USD ($) | Jul. 31, 2017USD ($) | May 31, 2013USD ($) | |
Debt Instrument [Line Items] | |||||||||
Loss on debt extinguishment | $ (1,778,000) | $ 0 | $ 0 | ||||||
Total long-term debt including current maturities | 1,092,266,000 | 1,254,921,000 | |||||||
Interest costs capitalized | 2,500,000 | 300,000 | 7,300,000 | ||||||
CMCP | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 74,600,000 | 69,000,000 | zł 275,000,000 | ||||||
Revolving line of credit outstanding amount | 0 | 0 | |||||||
Stand by letters of credit outstanding amount | 800,000 | 1,100,000 | |||||||
Borrowings under uncommitted lines of credit | 22,400,000 | 0 | 0 | ||||||
Repayments of uncommitted credit lines | 22,400,000 | 0 | $ 0 | ||||||
Revolving credit agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 350,000,000 | ||||||||
Revolving credit facility, maximum borrowing capacity | 600,000,000 | ||||||||
Revolving line of credit outstanding amount | $ 0 | 0 | |||||||
Minimum interest coverage ratio | 2.50 | ||||||||
Maximum debt to capitalization ratio | 0.60 | ||||||||
Actual interest coverage ratio | 9.36 | 9.36 | |||||||
Actual debt to capitalization ratio | 0.37 | 0.37 | |||||||
Stand-by letters of credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||||
Stand by letters of credit outstanding amount | 3,000,000 | 3,000,000 | |||||||
Short-term borrowings | |||||||||
Debt Instrument [Line Items] | |||||||||
Total long-term debt including current maturities | $ 0 | 3,929,000 | |||||||
2027 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan, maximum principal amount | $ 300,000,000 | ||||||||
Weighted average interest rate | 5.375% | 5.375% | 5.375% | ||||||
Total long-term debt including current maturities | $ 300,000,000 | 300,000,000 | |||||||
2026 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan, maximum principal amount | $ 350,000,000 | ||||||||
Weighted average interest rate | 5.75% | 5.75% | 5.75% | ||||||
Total long-term debt including current maturities | $ 350,000,000 | 350,000,000 | |||||||
2023 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan, maximum principal amount | $ 330,000,000 | ||||||||
Weighted average interest rate | 4.875% | 4.875% | 4.875% | ||||||
Total long-term debt including current maturities | $ 330,000,000 | 330,000,000 | |||||||
Term Loan | Revolving credit agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan, maximum principal amount | $ 180,000,000 | $ 150,000,000 | |||||||
Weighted average interest rate | 3.148% | 3.148% | |||||||
Loss on debt extinguishment | $ (1,800,000) | ||||||||
Total long-term debt including current maturities | 0 | 210,125,000 | |||||||
Poland Term Loan | CMCP | |||||||||
Debt Instrument [Line Items] | |||||||||
Term loan, maximum principal amount | 67,900,000 | zł 250,000,000 | |||||||
Total long-term debt including current maturities | $ 40,700,000 | zł 150,000,000 | |||||||
Poland Term Loan | Revolving credit agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average interest rate | 1.73% | 1.73% | |||||||
Total long-term debt including current maturities | $ 40,713,000 | 0 | |||||||
U.S. Program | |||||||||
Debt Instrument [Line Items] | |||||||||
Transfer of Accounts Receivable Program, Face Amount | 200,000,000 | ||||||||
Transfers of Accounts Receivable Outstanding | 0 | 0 | |||||||
Poland Program | |||||||||
Debt Instrument [Line Items] | |||||||||
Transfer of Accounts Receivable Program, Face Amount | 59,700,000 | 55,200,000 | zł 220,000,000 | ||||||
Transfers of Accounts Receivable Outstanding | $ 0 | $ 3,900,000 | |||||||
Advance Limit as Percent of Eligible Trade Accounts Receivable Transferred | 90.00% | 90.00% | |||||||
Poland Program | Short-term borrowings | |||||||||
Debt Instrument [Line Items] | |||||||||
Weighted average interest rate | 0.98% | 0.98% | |||||||
U.S. Program with Consent of CMCRV and Program Administrative Agent | |||||||||
Debt Instrument [Line Items] | |||||||||
Transfer of Accounts Receivable Program, Face Amount | $ 300,000,000 |
CREDIT ARRANGEMENTS (Scheduled
CREDIT ARRANGEMENTS (Scheduled Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2021 | $ 3,776 | |
2022 | 9,576 | |
2023 | 339,565 | |
2024 | 11,706 | |
2025 | 9,556 | |
Thereafter | 667,863 | |
Total long-term debt, excluding finance leases | 1,042,042 | |
Less debt issuance costs | 8,581 | $ 10,268 |
Total long-term debt outstanding, excluding finance leases | $ 1,033,461 |
NEW MARKETS TAX CREDIT TRANSA_3
NEW MARKETS TAX CREDIT TRANSACTIONS (Details) $ in Millions | 12 Months Ended | 24 Months Ended |
Aug. 31, 2020USD ($) | Dec. 31, 2017numberOfTaxCreditTransactions | |
Income Tax Contingency [Line Items] | ||
Number of New Markets Tax Credit transactions | numberOfTaxCreditTransactions | 3 | |
Fund 156 | Micro Mill | ||
Income Tax Contingency [Line Items] | ||
USBCDC Capital Contribution | $ 17.7 | |
Commonwealth Loan | $ 35.3 | |
Commonwealth Loan Rate (Percent) | 1.08% | |
QEI to CDE | $ 51.5 | |
Fund 156 | Micro Mill | Qualified Equity Investment Loans | CMC Steel Oklahoma, LLC | ||
Income Tax Contingency [Line Items] | ||
CDE Loan | 50.7 | |
Fund 249 | Spooler Project | ||
Income Tax Contingency [Line Items] | ||
USBCDC Capital Contribution | 6.7 | |
Commonwealth Loan | $ 14 | |
Commonwealth Loan Rate (Percent) | 1.39% | |
QEI to CDE | $ 20 | |
Fund 249 | Spooler Project | Qualified Equity Investment Loans | CMC Steel Oklahoma, LLC | ||
Income Tax Contingency [Line Items] | ||
CDE Loan | $ 19.4 | |
Fund 219 | ||
Income Tax Contingency [Line Items] | ||
Period at end of which Company may be entitled or obligated to repurchase interest in the fund | 8 years | |
Fund 219 and Fund 222 | T-post Shop | ||
Income Tax Contingency [Line Items] | ||
USBCDC Capital Contribution | $ 5 | |
Commonwealth Loan | $ 10.4 | |
Commonwealth Loan Rate (Percent) | 1.16% | |
QEI to CDE | $ 15 | |
Fund 219 and Fund 222 | T-post Shop | Qualified Equity Investment Loans | CMC Steel Oklahoma, LLC | ||
Income Tax Contingency [Line Items] | ||
CDE Loan | $ 14.7 | |
Fund 156 and Fund 249 | ||
Income Tax Contingency [Line Items] | ||
Period at end of which Company may be entitled or obligated to repurchase interest in the fund | 7 years | |
Fund 222 | Qualified Equity Investment Loans | ||
Income Tax Contingency [Line Items] | ||
CDE Loan | $ 2.1 |
DERIVATIVES (Narrative) (Detail
DERIVATIVES (Narrative) (Details) - USD ($) $ in Millions | Aug. 31, 2020 | Aug. 31, 2019 |
Foreign exchange | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 138.5 | $ 94.1 |
Commodity | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 195.8 | $ 42.6 |
DERIVATIVES - Commodity Contrac
DERIVATIVES - Commodity Contract Commitments (Details) | 12 Months Ended |
Aug. 31, 2020MWht | |
Aluminum | Long | |
Derivative [Line Items] | |
Commodity contract commitments | 1,675 |
Copper | Long | |
Derivative [Line Items] | |
Commodity contract commitments | 556 |
Copper | Short | |
Derivative [Line Items] | |
Commodity contract commitments | 8,346 |
Electricity | Long | |
Derivative [Line Items] | |
Energy contract commitments | MWh | 2,000,000 |
DERIVATIVES (Derivatives Not De
DERIVATIVES (Derivatives Not Designated as Hedging Instruments) (Details) - Commodity - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on commodity derivatives accounted for as cash flow hedging instruments | $ (12,100,000) | $ 0 | $ 0 |
Cost of goods sold | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) before taxes for derivatives not designated as hedging instruments | $ (6,000,000) | $ 1,700,000 | $ 7,000,000 |
FAIR VALUE (Financial Assets an
FAIR VALUE (Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) | Aug. 31, 2020 | Aug. 31, 2019 | |
Commodity | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow | Low | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Energy Floating Rate | $ 151.66 | ||
Commodity | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow | High | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Energy Floating Rate | 243.88 | ||
Commodity | Significant Unobservable Inputs (Level 3) | Valuation Technique, Discounted Cash Flow | Average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Energy Floating Rate | 200.70 | ||
Fair value, measurements, recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market investments | [1] | 449,824,000 | $ 66,240,000 |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market investments | [1] | 449,824,000 | 66,240,000 |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market investments | [1] | 0 | 0 |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Money market investments | [1] | 0 | 0 |
Fair value, measurements, recurring | Commodity | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | [2] | 202,000 | 1,269,000 |
Derivative liabilities | [2] | 19,000,000 | 99,000 |
Fair value, measurements, recurring | Commodity | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | [2] | 202,000 | 1,269,000 |
Derivative liabilities | [2] | 3,993,000 | 99,000 |
Fair value, measurements, recurring | Commodity | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | [2] | 0 | 0 |
Derivative liabilities | [2] | 0 | |
Fair value, measurements, recurring | Commodity | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | [2] | 0 | 0 |
Derivative liabilities | [2] | 15,007,000 | 0 |
Fair value, measurements, recurring | Foreign exchange | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | [2] | 1,484,000 | 569,000 |
Derivative liabilities | [2] | 459,000 | 899,000 |
Fair value, measurements, recurring | Foreign exchange | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | [2] | 0 | 0 |
Derivative liabilities | [2] | 0 | 0 |
Fair value, measurements, recurring | Foreign exchange | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | [2] | 1,484,000 | 569,000 |
Derivative liabilities | [2] | 459,000 | 899,000 |
Fair value, measurements, recurring | Foreign exchange | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | [2] | 0 | 0 |
Derivative liabilities | [2] | $ 0 | $ 0 |
[1] | (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] | (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 the New York Mercantile Exchange. Amounts in Level 2 are based on broker quotes in the over-the-counter market. Derivative liabilities classified as Level 3, and the methodology used to determine their fair value, are described below. Further discussion regarding the Company's use of derivative instruments is included in Note 12, Derivatives. The fair value estimate of the Level 3 commodity derivative is based on an internally developed discounted cash flow model primarily utilizing unobservable inputs in which there is little or no market data. The Company forecasts future energy rates using a range of historical prices ("floating rate"). The floating rate is the only significant unobservable input used in the Company's discounted cash flow model. August 31, 2020 Unobservable Inputs Low High Average Floating rate (PLN) 151.66 243.88 200.70 |
FAIR VALUE (Reconciliation of C
FAIR VALUE (Reconciliation of Commodity Derivative Recognized in Other Comprehensive Income) (Details) - Commodity - Significant Unobservable Inputs (Level 3) $ in Thousands | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 0 |
New commodity contract | 1,083 |
Recognized in earnings | 0 |
Recognized in OCI | (16,090) |
Ending balance | $ (15,007) |
FAIR VALUE FAIR VALUE (Financia
FAIR VALUE FAIR VALUE (Financial Assets and Liabilities Not Required to Be Measured at Fair Value) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Financial liabilities | $ 1,092,266 | $ 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 | Significant Other Observable Inputs (Level 2) | Fair Value | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Financial liabilities | [1] | 319,377 | 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 | Significant Other Observable Inputs (Level 2) | Fair Value | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Financial liabilities | [1] | 367,374 | 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 | Significant Other Observable Inputs (Level 2) | Fair Value | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Financial liabilities | [1] | 345,335 | 342,098 |
Short-term borrowings | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Financial liabilities | 0 | 3,929 | |
Short-term borrowings | Significant Other Observable Inputs (Level 2) | Fair Value | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Financial liabilities | 0 | 3,929 | |
2022 Term Loan | Significant Other Observable Inputs (Level 2) | Fair Value | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Financial liabilities | [2] | 0 | 210,125 |
Revolving credit agreement | 2022 Term Loan | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Financial liabilities | 0 | 210,125 | |
Revolving credit agreement | Poland Term Loan | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Financial liabilities | 40,713 | 0 | |
Revolving credit agreement | Poland Term Loan | Significant Other Observable Inputs (Level 2) | Fair Value | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Financial liabilities | $ 40,713 | $ 0 | |
[1] | (1) The fair value of the notes was determined based on indicated market values. | ||
[2] | The Poland Term Loan, Term Loan and short-term borrowings contain variable interest rates and carrying value approximates fair value. |
INCOME TAX (Components of Earni
INCOME TAX (Components of Earnings from Continuing Operations before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 334,170 | $ 194,986 | $ 86,731 |
Foreign | 36,608 | 73,474 | 78,653 |
Earnings from continuing operations before income taxes | $ 370,778 | $ 268,460 | $ 165,384 |
INCOME TAX (Income Taxes Includ
INCOME TAX (Income Taxes Included in the Consolidated Statements of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Current: | |||
United States | $ 26,901 | $ 621 | $ 20,210 |
Foreign | 7,588 | 14,006 | 18,308 |
State and local | 7,133 | 2,892 | 2,263 |
Current taxes | 41,622 | 17,519 | 40,781 |
Deferred: | |||
United States | 45,771 | 46,922 | (11,501) |
Foreign | (43) | 490 | (169) |
State and local | 5,832 | 4,908 | 1,002 |
Deferred taxes | 51,560 | 52,320 | (10,668) |
Total income taxes on income | 93,182 | 69,839 | 30,113 |
Income taxes (benefit) on discontinued operations | 706 | 158 | (34) |
Income taxes on continuing operations | $ 92,476 | $ 69,681 | $ 30,147 |
INCOME TAX (Reconciliation of F
INCOME TAX (Reconciliation of Federal Statutory Rate to Effective Tax Rate from Continuing Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
Federal statutory tax rate (percent) | 21.00% | 21.00% | 25.70% |
Income tax expense at statutory rate | $ 77,863 | $ 56,377 | $ 42,471 |
State and local taxes | 9,895 | 6,085 | 2,317 |
Foreign tax impairment on valuation of subsidiaries | 5,084 | (29,697) | 22,315 |
Foreign rate differential | (1,346) | (1,466) | (5,973) |
Research and experimentation benefits | 1,085 | 580 | 4,707 |
Change in valuation allowance | 968 | 36,167 | (20,839) |
Nontaxable foreign interest | 8 | (9,799) | (17,414) |
TCJA - Toll charge and related foreign tax credits | 0 | 7,410 | 29,466 |
TCJA - Remeasurement of deferred tax balances | 0 | (586) | (25,515) |
Audit settlement | 0 | 120 | (3,187) |
Gain on international restructure | 0 | 0 | 18,926 |
Worthless stock deduction | 0 | 0 | (6,084) |
Other | 1,089 | 5,650 | (1,629) |
Income tax expense on continuing operations | $ 92,476 | $ 69,681 | $ 30,147 |
Effective income tax rate from continuing operations | 24.90% | 26.00% | 18.20% |
Poland | |||
Income Tax Contingency [Line Items] | |||
Federal statutory tax rate (percent) | 19.00% |
INCOME TAX (Deferred Tax Assets
INCOME TAX (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Deferred tax assets: | ||
Net operating losses and credits | $ 283,416 | $ 295,241 |
Deferred compensation and employee benefits | 32,293 | 24,432 |
Reserves and other accrued expenses | 30,371 | 42,833 |
ROU operating lease liabilities | 29,619 | |
Other | 3,315 | 19,526 |
Total deferred tax assets | 379,014 | 382,032 |
Valuation allowance for deferred tax assets | (281,849) | (283,560) |
Deferred tax assets, net | 97,165 | 98,472 |
Deferred tax liabilities: | ||
Property, plant and equipment | (185,595) | (168,701) |
ROU operating lease assets | (28,201) | |
Other | (2,420) | (1,182) |
Net deferred tax liabilities | (216,216) | (169,883) |
Total deferred tax liabilities | $ (119,051) | $ (71,411) |
INCOME TAX (Narrative) (Details
INCOME TAX (Narrative) (Details) $ in Millions | Aug. 31, 2020USD ($) |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 3.1 |
State | |
Net operating losses carry forward | 447.5 |
Foreign | |
Net operating losses carry forward | $ 816.9 |
INCOME TAX (Unrecognized Tax Be
INCOME TAX (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized Tax Benefits, Beginning Balance | $ 8,652 | $ 3,121 | $ 9,283 |
Change for tax positions of prior years | 0 | 5,531 | 3,121 |
Reductions due to settlements with taxing authorities | 0 | 0 | (8,028) |
Reductions due to lapse of statute of limitations | 0 | 0 | (1,255) |
Unrecognized Tax Benefits, Ending Balance | $ 8,652 | $ 8,652 | $ 3,121 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS (Stock-Based Awards Granted) (Details) - shares | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Restricted Stock Awards/Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, number | 997,454 | 889,238 | 667,341 |
Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, number | 536,022 | 483,984 | 367,514 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Aug. 31, 2020USD ($)Intervalshares | Aug. 31, 2019USD ($)Intervalshares | Aug. 31, 2018USD ($)Intervalshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ | $ 31.9 | $ 25.1 | $ 23.9 |
Total unrecognized compensation cost | $ | $ 16.7 | ||
Period of unrecognized compensation to be recognized | 3 years | ||
Shares available for future grants | 5,669,972 | ||
Fair value of shares vested | $ | $ 26.7 | $ 19.9 | $ 30.3 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards and performance stock units, granted, shares | 997,454 | 889,238 | 667,341 |
Restricted stock units | United States | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting frequency | Interval | 3 | ||
Restricted stock units | Non-U.S. | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting frequency | Interval | 3 | 3 | 3 |
Performance Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards and performance stock units, granted, shares | 536,022 | 483,984 | 367,514 |
Performance Awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout percentage | 50.00% | ||
Performance Awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout percentage | 200.00% | ||
Performance Awards | EBITDA | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage that performance targets are weighted | 75.00% | 75.00% | 75.00% |
Performance Awards | Relative total stockholder return | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage that performance targets are weighted | 25.00% | 25.00% | 25.00% |
Liability awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards and performance stock units, granted, shares | 425,915 | 374,281 | |
Equivalent number of awards outstanding | 773,757 | ||
Equivalent number of shares expected to vest | 735,069 | ||
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grants | 2,338,304 | ||
Maximum number of shares per employee | 500 | ||
Purchase discount from market price | 15.00% | 15.00% | 15.00% |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS (Restricted Stock Awards and Performance Stock Units Excluding the Cash Component) (Details) - Restricted stock units and performance stock units excluding the cash component - $ / shares | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding number, beginning balance | 2,279,568 | 1,800,718 | 2,453,580 |
Granted, number | 1,529,212 | 1,505,449 | 1,216,461 |
Vested, number | (1,417,552) | (992,167) | (1,685,898) |
Forfeited, number | (145,591) | (34,432) | (183,425) |
Outstanding number, ending balance | 2,245,637 | 2,279,568 | 1,800,718 |
Outstanding, weighted average grant-date fair value, beginning balance | $ 15.99 | $ 16.82 | $ 15.65 |
Granted, weighted average grant-date fair value | 18.32 | 17.75 | 20.69 |
Vested, weighted average grant-date fair value | 18.80 | 20.09 | 18 |
Forfeited, weighted average grant-date fair value | 21.35 | 17.90 | 15.89 |
Outstanding, weighted average grant-date fair value, ending balance | $ 18.79 | $ 15.99 | $ 16.82 |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS (Yearly Activity of Stock Purchase Plan) (Details) - $ / shares | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future issuance | 5,669,972 | ||
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares subscribed | 347,870 | 446,950 | 289,040 |
Price per share | $ 18.80 | $ 13.80 | $ 17.84 |
Shares purchased | 365,990 | 226,860 | 123,930 |
Price per share | $ 13.80 | $ 17.84 | $ 18.99 |
Shares available for future issuance | 2,338,304 |
EMPLOYEES' RETIREMENT PLANS (Na
EMPLOYEES' RETIREMENT PLANS (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Pension curtailment | $ 3.2 | ||
BRP plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation liability | 47 | $ 45.7 | |
Current value of segregated assets | 60.8 | 56.3 | |
Net holding gain on segregated assets | 6 | 3.3 | $ 9.3 |
Other Long-term Liabilities | BRP plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation liability | 40.6 | 39.9 | |
Accrued Expenses and Other Payables | BRP plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation liability | 6.4 | 5.8 | |
United States | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Compensation expense under defined contribution profit sharing and savings plan and BRP Plan | $ 37.3 | $ 32.9 | $ 27.3 |
EMPLOYEES' RETIREMENT PLANS (Be
EMPLOYEES' RETIREMENT PLANS (Benefit Obligation and Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation at beginning of year | $ 31,661 | $ 0 |
Acquisition | 0 | 26,336 |
Service cost | 335 | 354 |
Interest cost | 892 | 926 |
Curtailment loss | 1,314 | 0 |
Special termination benefits | 1,918 | 0 |
Amortization of net actuarial gain | 1,280 | 4,883 |
Benefits paid | (1,270) | (838) |
Benefit obligation at end of year | 36,130 | 31,661 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of Plan assets at beginning of year | 23,435 | 0 |
Acquisition | 0 | 21,023 |
Actual return on Plan assets | 2,248 | 2,887 |
Administrative expenses | (496) | (69) |
Employer contributions | 5,284 | 432 |
Benefits paid | (1,270) | (838) |
Fair value of Plan assets at end of year | 29,201 | 23,435 |
Funded status at end of year (net liability recognized in balance sheet as of August 31,) | (6,929) | (8,226) |
Net actuarial loss | $ 3,234 | $ 2,823 |
EMPLOYEES' RETIREMENT PLANS (Ne
EMPLOYEES' RETIREMENT PLANS (Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 335 | $ 354 |
Interest cost | 892 | 926 |
Special termination benefits | 1,918 | 0 |
Settlements, curtailments and other | 1,314 | 0 |
Total net periodic benefit cost | 3,575 | 522 |
Net actuarial loss arising during measurement period | 3,642 | 2,823 |
Amortization of net actuarial gain | (3,232) | 0 |
Total recognized in other comprehensive income | 410 | 2,823 |
Total recognized in net periodic benefit cost and other comprehensive income | 3,985 | 3,345 |
Cost of Goods Sold | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 335 | 354 |
Selling, General and Administrative Expenses | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Expected administrative expenses | 450 | 250 |
Interest cost | 892 | 926 |
Expected return on Plan assets | $ (1,334) | $ (1,008) |
EMPLOYEES' RETIREMENT PLANS (We
EMPLOYEES' RETIREMENT PLANS (Weighted-average Assumptions) (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Defined Benefit Plan Obligations | ||
Effective discount rate for benefit obligations | 2.80% | 3.20% |
Net Periodic Benefit Cost | ||
Effective rate for interest on benefit obligations | 2.80% | 4.30% |
Effective rate for service cost | 3.30% | 4.70% |
Expected long-term rate of return | 6.00% | 6.00% |
Effective rate for interest on benefit obligations, remeasured | 2.90% | |
Effective rate for service cost, remeasured | 3.50% | |
Expected long-term rate of return on plan assets for 2020 | 5.00% | |
Expected future employer contributions in fiscal 2021 | $ 0 |
EMPLOYEES' RETIREMENT PLANS (_2
EMPLOYEES' RETIREMENT PLANS (Weighted-average Asset Allocations (Details) | Aug. 31, 2020 | Aug. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, actual allocation (percent) | 100.00% | 100.00% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, actual allocation (percent) | 48.10% | 50.10% |
Fixed income securities | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 45.00% | |
Fixed income securities | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 50.00% | |
Domestic | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, actual allocation (percent) | 26.90% | 26.00% |
Domestic | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 25.00% | |
Domestic | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 30.00% | |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, actual allocation (percent) | 13.10% | 12.70% |
International | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 10.00% | |
International | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 15.00% | |
Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, actual allocation (percent) | 10.10% | 9.50% |
Mutual funds | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 5.00% | |
Mutual funds | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 10.00% | |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, actual allocation (percent) | 1.80% | 1.70% |
Cash | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 0.00% | |
Cash | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension assets, target allocation (percent) | 5.00% |
EMPLOYEES' RETIREMENT PLANS (Fa
EMPLOYEES' RETIREMENT PLANS (Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 29,201 | $ 23,435 | $ 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 29,239 | 23,452 | |
Other | (38) | (17) | |
Fair value of Plan assets | 29,201 | 23,435 | |
Fixed income securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,084 | 11,738 | |
Equity securities: | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,602 | 11,303 | |
Domestic | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,849 | 6,090 | |
International | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,816 | 2,981 | |
Mutual funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,937 | 2,232 | |
Cash | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 553 | $ 411 |
EMPLOYEES' RETIREMENT PLANS (Fu
EMPLOYEES' RETIREMENT PLANS (Future Pension Benefit Payments) (Details) $ in Thousands | Aug. 31, 2020USD ($) |
Retirement Benefits [Abstract] | |
2021 | $ 2,082 |
2022 | 1,856 |
2023 | 1,843 |
2024 | 1,830 |
2025 | 1,790 |
Next five years | $ 8,701 |
CAPITAL STOCK (Narrative) (Deta
CAPITAL STOCK (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Nov. 30, 2015 | |
Stockholders' Equity Note [Abstract] | ||||
Share repurchase program, authorized amount | $ 100,000,000 | |||
Shares repurchased (shares) | 0 | 0 | 0 | |
Share repurchase program, remaining authorized repurchase amount | $ 27,600,000 | |||
Preferred stock, shares authorized (shares) | 2,000,000 | |||
Preferred stock, par value per share (in USD per share) | $ 1 | |||
Preferred stock, shares outstanding (shares) | 0 |
EARNINGS PER SHARE (Calculation
EARNINGS PER SHARE (Calculations of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | ||||
Earnings Per Share [Abstract] | ||||||||||||||
Earnings from continuing operations | $ 67,782 | $ 64,169 | $ 63,596 | $ 82,755 | $ 85,880 | $ 78,551 | $ 14,928 | $ 19,420 | $ 278,302 | $ 198,779 | $ 135,237 | |||
Basic earnings per share: | ||||||||||||||
Shares outstanding for basic earnings per share | 118,921,854 | 117,834,558 | 116,822,583 | |||||||||||
Basic earnings per share from continuing operations attributable to CMC (USD per share) | $ 0.57 | $ 0.54 | $ 0.53 | $ 0.70 | $ 0.73 | $ 0.67 | $ 0.13 | $ 0.17 | $ 2.34 | [1] | $ 1.69 | [1] | $ 1.16 | [1] |
Diluted earnings per share: | ||||||||||||||
Shares outstanding for basic earnings per share | 118,921,854 | 117,834,558 | 116,822,583 | |||||||||||
Effect of dilutive securities: | ||||||||||||||
Stock-based incentive/purchase plans | 1,387,767 | 1,290,070 | 1,323,265 | |||||||||||
Shares outstanding for diluted earnings per share | 120,309,621 | 119,124,628 | 118,145,848 | |||||||||||
Diluted earnings per share from continuing operations attributable to CMC (USD per share) | $ 0.56 | $ 0.53 | $ 0.53 | $ 0.69 | $ 0.72 | $ 0.66 | $ 0.13 | $ 0.16 | $ 2.31 | [1] | $ 1.67 | [1] | $ 1.14 | [1] |
[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 | Aug. 31, 2020 | Aug. 31, 2019 |
Loss Contingencies [Line Items] | ||
Total environmental liabilities | $ 3.4 | $ 3.6 |
Long-term environmental liabilities | 2.7 | 1.8 |
CERCLA sites | ||
Loss Contingencies [Line Items] | ||
Total environmental liabilities | $ 0.7 | $ 0.7 |
ACCRUED EXPENSES AND OTHER PA_3
ACCRUED EXPENSES AND OTHER PAYABLES (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 |
Payables and Accruals [Abstract] | ||
Salaries and incentive compensation | $ 164,442 | $ 133,705 |
Taxes other than income taxes | 43,362 | 38,660 |
Worker's compensation and general liability insurance | $ 39,375 | $ 38,485 |
BUSINESS SEGMENTS (Narrative) (
BUSINESS SEGMENTS (Narrative) (Details) | 12 Months Ended |
Aug. 31, 2020segments | |
Segment Reporting [Abstract] | |
Number of reporting segments | 2 |
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 | 12 Months Ended | |||||||||||||||||
Aug. 31, 2020 | May 31, 2020 | [1] | Feb. 29, 2020 | [1] | Nov. 30, 2019 | [1] | Aug. 31, 2019 | May 31, 2019 | [1] | Feb. 28, 2019 | [1] | Nov. 30, 2018 | [1] | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | $ 1,409,132 | [1] | $ 1,341,683 | $ 1,340,963 | $ 1,384,708 | $ 1,543,005 | $ 1,605,872 | $ 1,402,783 | $ 1,277,342 | $ 5,476,486 | $ 5,829,002 | $ 4,643,723 | |||||||
Adjusted operating profit (loss) | 576,608 | 424,085 | 352,221 | ||||||||||||||||
Interest expense | 61,837 | 71,373 | 40,957 | ||||||||||||||||
Capital expenditures | 187,618 | 138,836 | 174,655 | ||||||||||||||||
Asset impairments | 7,611 | 384 | 14,372 | ||||||||||||||||
Total assets | 4,081,728 | 3,758,771 | 4,081,728 | 3,758,771 | |||||||||||||||
Segments | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 5,476,486 | 5,829,002 | 4,643,723 | ||||||||||||||||
Segments | Continuing Operations | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Adjusted operating profit (loss) | 576,608 | 424,085 | 352,221 | ||||||||||||||||
Interest expense | [2] | 61,837 | 71,373 | 40,957 | |||||||||||||||
Capital expenditures | 187,618 | 138,836 | 171,367 | ||||||||||||||||
Depreciation and amortization | 165,749 | 158,652 | 131,508 | ||||||||||||||||
Asset impairments | 7,611 | 384 | 14,372 | ||||||||||||||||
Total assets | [3] | 4,081,728 | 3,758,771 | 4,081,728 | 3,758,771 | 3,328,304 | |||||||||||||
Segments | North America | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 4,769,933 | 5,001,116 | 3,738,493 | ||||||||||||||||
Adjusted operating profit (loss) | 661,176 | 456,296 | 323,993 | ||||||||||||||||
Interest expense | [2] | 48,413 | 46,939 | 23,217 | |||||||||||||||
Capital expenditures | 127,982 | 89,119 | 144,007 | ||||||||||||||||
Depreciation and amortization | 132,492 | 125,718 | 92,295 | ||||||||||||||||
Asset impairments | 7,606 | 369 | 14,345 | ||||||||||||||||
Total assets | [3] | 2,862,805 | 2,991,996 | 2,862,805 | 2,991,996 | 2,115,049 | |||||||||||||
Segments | Europe | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net sales | 699,140 | 817,048 | 887,038 | ||||||||||||||||
Adjusted operating profit (loss) | 62,007 | 100,102 | 131,720 | ||||||||||||||||
Interest expense | [2] | 982 | 2,493 | 2,699 | |||||||||||||||
Capital expenditures | 48,895 | 40,337 | 23,552 | ||||||||||||||||
Depreciation and amortization | 25,674 | 25,993 | 27,255 | ||||||||||||||||
Asset impairments | 5 | 15 | 27 | ||||||||||||||||
Total assets | [3] | 532,850 | 464,177 | 532,850 | 464,177 | 485,548 | |||||||||||||
Segments | Corporate and Other | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Adjusted operating profit (loss) | (146,575) | (132,313) | (103,492) | ||||||||||||||||
Interest expense | [2] | 12,442 | 21,941 | 15,041 | |||||||||||||||
Capital expenditures | 10,741 | 9,380 | 3,808 | ||||||||||||||||
Depreciation and amortization | 7,583 | 6,941 | 11,958 | ||||||||||||||||
Asset impairments | 0 | 0 | 0 | ||||||||||||||||
Total assets | [3] | $ 686,073 | $ 302,598 | $ 686,073 | $ 302,598 | $ 727,707 | |||||||||||||
[1] | Excludes discontinued operations. (2) Fourth quarter results include a $32.1 million charge for a working capital adjustment related to the Acquisition, which was recorded subsequent to the end of the allowable one-year measurement period. | ||||||||||||||||||
[2] | Includes intercompany interest expense in the segments, which is eliminated within Corporate and Other. | ||||||||||||||||||
[3] | Total assets listed in Corporate and Other includes assets from discontinued operations |
BUSINESS SEGMENTS (Reconciliati
BUSINESS SEGMENTS (Reconciliations of Earnings from Continuing Operations to Adjusted Operating Profit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Segment Reporting [Abstract] | |||||||||||
Earnings from continuing operations | $ 67,782 | $ 64,169 | $ 63,596 | $ 82,755 | $ 85,880 | $ 78,551 | $ 14,928 | $ 19,420 | $ 278,302 | $ 198,779 | $ 135,237 |
Interest expense | (61,837) | (71,373) | (40,957) | ||||||||
Income taxes | (92,476) | (69,681) | (30,147) | ||||||||
Amortization of acquired unfavorable contract backlog | (29,367) | (74,784) | 0 | ||||||||
Impairment of assets | (7,611) | (384) | (14,372) | ||||||||
Adjusted EBITDA from continuing operations | $ 576,608 | $ 424,085 | $ 352,221 |
BUSINESS SEGMENTS (External Net
BUSINESS SEGMENTS (External Net Sales from Continuing Operations by Major Product) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Aug. 31, 2020 | [1] | May 31, 2020 | [1] | Feb. 29, 2020 | [1] | Nov. 30, 2019 | [1] | Aug. 31, 2019 | May 31, 2019 | [1] | Feb. 28, 2019 | [1] | Nov. 30, 2018 | [1] | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | $ 1,409,132 | $ 1,341,683 | $ 1,340,963 | $ 1,384,708 | $ 1,543,005 | $ 1,605,872 | $ 1,402,783 | $ 1,277,342 | $ 5,476,486 | $ 5,829,002 | $ 4,643,723 | |||||||
Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 5,476,486 | 5,829,002 | 4,643,723 | |||||||||||||||
Intersegment | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 0 | 0 | 0 | |||||||||||||||
North America | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 4,769,933 | 5,001,116 | 3,738,493 | |||||||||||||||
Europe | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 699,140 | 817,048 | 887,038 | |||||||||||||||
Europe | Intersegment | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 1,509 | 1,325 | 1,119 | |||||||||||||||
Corporate | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 7,413 | 10,838 | 18,192 | |||||||||||||||
Corporate | Intersegment | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | (1,509) | (1,325) | (1,145) | |||||||||||||||
Americas Recycling | Intersegment | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 0 | 0 | 26 | |||||||||||||||
Unaffiliated Customers | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 5,476,486 | 5,829,002 | 4,643,723 | |||||||||||||||
Unaffiliated Customers | North America | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 4,769,933 | 5,001,116 | 3,738,467 | |||||||||||||||
Unaffiliated Customers | Europe | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 697,631 | 815,723 | 885,919 | |||||||||||||||
Unaffiliated Customers | Corporate | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 8,922 | 12,163 | 19,337 | |||||||||||||||
Raw material products | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 728,205 | 966,217 | 1,181,211 | |||||||||||||||
Raw material products | North America | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 718,513 | 953,858 | 1,165,998 | |||||||||||||||
Raw material products | Europe | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 9,692 | 12,359 | 15,213 | |||||||||||||||
Raw material products | Corporate | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 0 | 0 | 0 | |||||||||||||||
Steel products | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 2,285,603 | 2,409,991 | 1,809,943 | |||||||||||||||
Steel products | North America | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 1,738,556 | 1,763,017 | 1,099,286 | |||||||||||||||
Steel products | Europe | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 547,047 | 646,974 | 710,657 | |||||||||||||||
Steel products | Corporate | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 0 | 0 | 0 | |||||||||||||||
Downstream products | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 2,062,358 | 2,070,817 | 1,303,118 | |||||||||||||||
Downstream products | North America | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 1,943,126 | 1,936,994 | 1,160,373 | |||||||||||||||
Downstream products | Europe | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 119,232 | 133,823 | 142,745 | |||||||||||||||
Downstream products | Corporate | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 0 | 0 | 0 | |||||||||||||||
Other | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 400,320 | 381,977 | 349,451 | |||||||||||||||
Other | North America | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 369,738 | 347,247 | 312,810 | |||||||||||||||
Other | Europe | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | 21,660 | 22,567 | 17,304 | |||||||||||||||
Other | Corporate | Segments | ||||||||||||||||||
Entity-Wide Information, Revenue from External Customer [Line Items] | ||||||||||||||||||
Net sales | $ 8,922 | $ 12,163 | $ 19,337 | |||||||||||||||
[1] | Excludes discontinued operations. (2) Fourth quarter results include a $32.1 million charge for a working capital adjustment related to the Acquisition, which was recorded subsequent to the end of the allowable one-year measurement period. |
BUSINESS SEGMENTS (External N_2
BUSINESS SEGMENTS (External Net Sales from Continuing Operations by Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Aug. 31, 2020 | [1] | May 31, 2020 | [1] | Feb. 29, 2020 | [1] | Nov. 30, 2019 | [1] | Aug. 31, 2019 | May 31, 2019 | [1] | Feb. 28, 2019 | [1] | Nov. 30, 2018 | [1] | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Net sales | $ 1,409,132 | $ 1,341,683 | $ 1,340,963 | $ 1,384,708 | $ 1,543,005 | $ 1,605,872 | $ 1,402,783 | $ 1,277,342 | $ 5,476,486 | $ 5,829,002 | $ 4,643,723 | |||||||
United States | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Net sales | 4,562,351 | 4,771,164 | 3,460,018 | |||||||||||||||
Poland | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Net sales | 549,983 | 510,610 | 702,540 | |||||||||||||||
China | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Net sales | 76,909 | 74,638 | 163,622 | |||||||||||||||
Germany | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Net sales | 65,846 | 103,762 | 70,754 | |||||||||||||||
Other | ||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||||||
Net sales | $ 221,397 | $ 368,828 | $ 246,789 | |||||||||||||||
[1] | Excludes discontinued operations. (2) Fourth quarter results include a $32.1 million charge for a working capital adjustment related to the Acquisition, which was recorded subsequent to the end of the allowable one-year measurement period. |
BUSINESS SEGMENTS (Long-Lived A
BUSINESS SEGMENTS (Long-Lived Assets by Geographic Area) (Details) - USD ($) $ in Thousands | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 1,708,344 | $ 1,599,218 | $ 1,172,607 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 1,483,127 | 1,426,131 | 1,001,102 |
Poland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 225,166 | 173,045 | 171,460 |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 51 | $ 42 | $ 45 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | ||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||
Net sales | $ 1,409,132 | [1] | $ 1,341,683 | [1] | $ 1,340,963 | [1] | $ 1,384,708 | [1] | $ 1,543,005 | $ 1,605,872 | [1] | $ 1,402,783 | [1] | $ 1,277,342 | [1] | $ 5,476,486 | $ 5,829,002 | $ 4,643,723 | ||||
Gross Profit | [1] | 263,407 | 225,330 | 217,867 | 238,194 | 252,659 | 241,630 | 150,290 | 158,909 | |||||||||||||
Net earnings from continuing operations | 67,782 | 64,169 | 63,596 | 82,755 | 85,880 | 78,551 | 14,928 | 19,420 | 278,302 | 198,779 | 135,237 | |||||||||||
Net earnings (loss) | $ 67,623 | $ 64,734 | $ 63,798 | $ 83,348 | $ 86,111 | $ 78,390 | $ 13,850 | $ 19,742 | $ 279,503 | $ 198,093 | $ 138,506 | |||||||||||
Basic EPS from continuing operations | $ 0.57 | $ 0.54 | $ 0.53 | $ 0.70 | $ 0.73 | $ 0.67 | $ 0.13 | $ 0.17 | $ 2.34 | [2] | $ 1.69 | [2] | $ 1.16 | [2] | ||||||||
Diluted EPS from continuing operations | 0.56 | 0.53 | 0.53 | 0.69 | 0.72 | 0.66 | 0.13 | 0.16 | 2.31 | [2] | 1.67 | [2] | 1.14 | [2] | ||||||||
Basic EPS | 0.57 | 0.54 | 0.54 | 0.70 | 0.73 | 0.66 | 0.12 | 0.17 | 2.35 | [2] | 1.68 | [2] | 1.19 | [2] | ||||||||
Diluted EPS | $ 0.56 | $ 0.54 | $ 0.53 | $ 0.70 | $ 0.72 | $ 0.66 | $ 0.12 | $ 0.17 | $ 2.32 | [2] | $ 1.66 | [2] | $ 1.17 | [2] | ||||||||
Acquisition related costs | $ 32,100 | $ 51,700 | ||||||||||||||||||||
[1] | Excludes discontinued operations. (2) Fourth quarter results include a $32.1 million charge for a working capital adjustment related to the Acquisition, which was recorded subsequent to the end of the allowable one-year measurement period. | |||||||||||||||||||||
[2] | Earnings Per Share ("EPS") is calculated independently for each component and may not sum to Net EPS due to rounding |
SCHEDULE II _ VALUATION AND Q_2
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | ||
Allowance for doubtful accounts | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 8,403 | $ 4,489 | $ 4,146 | |
Additions, Charged to Cost and Expense | 1,079 | 1,820 | 2,645 | |
Additions, Charged to Other Accounts | [1] | 2,220 | 4,718 | (165) |
Deductions, Charged to Cost and Expense | 0 | (75) | (136) | |
Deductions, Charged to Other Accounts | [2] | (2,105) | (2,549) | (2,001) |
Balance at End of Period | 9,597 | 8,403 | 4,489 | |
Deferred tax valuation allowance | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 283,560 | 268,554 | 273,991 | |
Additions, Charged to Cost and Expense | 4,733 | 22,220 | 31,471 | |
Additions, Charged to Other Accounts | ||||
Deductions, Charged to Cost and Expense | (6,444) | (7,214) | (36,908) | |
Deductions, Charged to Other Accounts | ||||
Balance at End of Period | $ 281,849 | 283,560 | 268,554 | |
Before Reclassification | Allowance for doubtful accounts | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 4,489 | |||
Balance at End of Period | $ 4,489 | |||
[1] | Recoveries and translation adjustments. | |||
[2] | Uncollectable accounts charged to the allowance. |